10 REPORT OF THE No. 3 



Water Powers 



An important water-power development in Northern Ontario at Island 

 Falls on the Abitibi River, by the Hollinger Gold Mines Limited, tp augment the 

 power now used for mining purposes, is nearing completion, t^is undertaking 

 being in operation throughout the year, engaging at least one thousand men and 

 involving an expenditure of about five million dollars. The capacity of this 

 plant is around 20,000 horse-power. 



Important investjigations were pursued on the Lower Mattfigami by the 

 Spruce Fails Company, whose plans contemplate the development of powers 

 at Smoky Falls for the running of their present pulp mill and future paper mill 

 at Kapuskasing. The power requirements at tjie head of the lakes necessitated 

 the installation of the fin^ unit at Cameron Falls, but even witji this additional 

 supply the needs of the immediate future will scarcely be met. The pulp indus- 

 tries existing in this zone, whejn running to their full contemplated capacities, 

 will call for a heavy consumption and may accentuate the difficulties experienced 

 by the Department during the past season in regulating the control of different 

 watersheds to satisfy the requirements of the varied logging, driving and power 

 interests. Improvements on the Wahnapitae River, Dryden township, by the 

 Wahnapitae Power Company have also been made during the past season to 

 increase tiieir power supply. 



Conservation dams in certain parts of the Province-, including the Sheb- 

 andowan watersheds, have been built during the year, the Governme^it retaining 

 control over same. The Norman dam a«d Lake of the Woods control have 

 formed a question of extended discussion between the Province and Dominion 

 and Manitoba, but a settlement under which Ontario's rights will be duly re- 

 spected is practically accomplished. 



Watpr powers are not alienated by the Crown but are merely leased under 

 terms and conditions that provide a fair return to the Province in actual revenue 

 and abig return in industrial and commercial prosperity. 



Timber Sales 



A marked change in the general system and practice of offering timber for 

 sale was made. Heretofore, bidders were given the situation of the area involved 

 and requested to make bids without regard to what the Crown considered a fair 

 stumpage value. Each individual party was expected to cruise and estimate the 

 kinds and quantities of timber thereon. Where competition was limited, the 

 liability to offer a price merely beyond simple dues wa? present, and while the 

 Crown could decline to accept any tender, the general practice was to deal fairly 

 with the highest bidder and accept his tender if within a reasonable measure of 

 what the Crown privately held to be fair. It was decided in fairness both to 

 prospective purchasers and the Crown, that the Crown's estimate of the 

 various classes of timber should be given and a minimum upset price fixed. 

 Consequently all Conditions of Sales duly advertised now contain not only an 

 estimafe of the material, but a fair upset price beyond which tenderers are asked 

 to bid. Bidders are thus saved considerable time and expense in cruising, since 

 there is no necessity of making such a close examination when in possession of 

 types and estimated quantities, while the Crown is assured of a fair and reason- 

 able price. The results already attained in applying the new method have 

 proved the wisdom of the course adopted. 



Timber sales were largely excluded, in pursuance of the announced policy 

 of the Government, to areas or limits contiguous to or required by existing 



