10 REPORT OF THE No. 3 



Dominion Governments a Commission was appointed and empowered to get 

 surrenders and execute Treaties, which has been done on the basis of a com- 

 pensation of $500,000, of which $100,000 is yet to be paid. 



Bush Operations. 



Logging: Evidences of an improved tone in the lumber market, following 

 the somewhat pessimistic outlook in 1921 and part of 1922, and of an assurance 

 that dealers contemplate a continued demand for building material are reflected 

 in the bush operations during the past season. 



The output of pine, the basic log timber from Crown Lands for sawlogs, 

 boom and dimension timber, approximated 325,000,000 feet B.M., or over 

 75,000,000 feet B.M. more than the previous year, while sawlog timber, other 

 than pine, was cut to the extent of 50,000,000 feet B.M., possibly 13 per cent, 

 less than the preceding season. A considerable increase is recorded in the cut 

 for piling purposes. 



Pulpwood to the extent of over 400,000 cords was cut from Crown Lands 

 during the last fiscal year as against less than 300,000 cords for 1922. In addition 

 over 200,000 cords were cut free of dues, this coming from settlers' lands. 



Pulpwood Industry. 



New mills opened at Kenora, where the Backus Company have an installed 

 daily capacity of eighty tons, and at Kapuskasing, where the Spruce Falls Com- 

 pany are producing seventy-five tons pulp daily. At Kenora a paper mill is 

 being built to be operated in connection with the pulp mill, while at Kapuskasing 

 the Company is contemplating the erection of a paper mill. 



Operations are under way at Fort William towards the erection of pulp 

 and paper mills by the Great Lakes Company, while extensions have been 

 made on the plant at Nepigon formerly held by the Nepigon Fibre Company 

 but now controlled by Guaranty Investment Corporation, Limited, who will 

 reopen the mill on a sixty-ton daily capacity basis. 



The completion of the new mills at Fort William and Nepigon and the 

 determined efforts of the Fort William Pulp and Paper Company, the Thunder 

 Bay Company and Provincial Paper Mills at Port Arthur, to continue operations 

 to their limit, assure a permanency to the pulpwood industry at the head of the 

 Great Lakes and makes certain a ready market in the near future for the full 

 development of the great hydro power at Cameron Falls on the Nepigon River. 



A new and important pulpwood industry is being projected by the Con- 

 tinental Wood Products, Limited, at Elsas, on the Canadian National Railway, 

 some two hundred miles west of Sudbury, where the Company are obliged to 

 erect a kraft-mill, which will consume, not only spruce and balsam but much 

 of the poplar, tamarac, jackpine, etc., hitherto unmarketable. A large sawmill 

 is now in operation and the pulp plant will probably be completed by the end 

 of the year 1924, as the site has been selected and plans put under way for the 

 starting of construction in the spring of 1924. 



The establishing of this industry is in pursuance of an agreement made 

 between the Crown and the Company on the 10th July, 1923, as the result of 

 the purchase by the Company under public competition of an area of 1,049 

 square miles, situated in the watershed of the Trout and Chapleau Rivers in 

 the Districts of Sudbury and Algoma. A 75 ton kraft pulp mill employing an 

 average of 100 persons for 10 months of each year, and costing at least one and 



