10 REPORT OF THE No. 3 



The assured expansion of the paper industry at Kapuskasing on the Trans- 

 continental also involves the necessity of a large and expensive development of 

 power at Smoky Falls. 



The recent gold discovery in the Red Lake District of Patricia may likewise, 

 if its actual development, as contemplated, results and permanency of the camp 

 is established, lead to additional water powers in that region being sought and 

 used. 



Considerable care is being exercised with regard to these potential powers 

 and the policy of the Government is to so dispose of them that they shall always 

 remain the inalienable property of the Crown and be subject only to lease under 

 such equitable stipulations as will assure a consistent annual revenue to the 

 Province and business stability to the industries depending thereon. 



Logging and Lumbering 



Although indications in the early fall of 1924 pointed towards a considerable 

 diminution in the output of pine logs for lumber and other products, the actual 

 operations for 1925, receiving an unexpected impetus as the season advanced, 

 resulted in the production of approximately the same quantities as the previous 

 year, some 337 million feet, of which 265 million feet comprised red and white 

 pine, against 276 million for the previous year and slightly over 72 million feet 

 of jack pine as against 61 million feet for the year 1924. The tie operations, 

 though less extensive than for the season immediately preceding, nevertheless 

 included an output of almost 2^ million pieces or less by about 300 thousand, 

 the contracts with the railways having been somewhat curtailed. 



Log timber, other than pine, was operated to the extent of 78 million feet, 

 or 17 million feet beyond that taken out during 1924. 



The pulpwood returns from Crown lands was less than last year by 250,000 

 cords, there being only 433,146 cords cut, an evidence, no doubt, of larger pur- 

 chases by the pulp companies from settlers and holders of privately owned lands. 



Lumber companies express the feeling that, while the past few years have 

 not been promising from a market point of view, signs are beginning to show a 

 tendency in the direction of an upward movement. Eastern pine and spruce 

 lumber producers have serious competition to meet from Western and Southern 

 producers and yet are animated with the lumberman's firm spirit that the 

 future may be better and brighter than predicted in some quarters. A real 

 campaign of publicity is on foot to buy products manufactured from raw material 

 taken from the home forests rather than to favour foreign products of less 

 durability. 



Added interest is being shown in the hardwood line, judging from the 

 enquiries made and the expressed desire of certain manufacturers to provide 

 themselves with supplies. Certain small hardwood areas were disposed of at 

 reasonably good stumpage prices ranging from $4 per thousand feet B.M. to 

 $7.50 per thousand feet B.M., in addition to dues of $2.50 per thousand feet. 

 This hardwood, in pursuance of the special Hardwood Act passed two years 

 ago, will be all manufactured within the Province of Ontario. 



Investigations are being pursued with a view to determining on the advisa- 

 bility of encouraging the establishment of a large hardwood manufacturing 

 plant on the north shore in Algoma District, though actual delimitation of areas 

 and laying down conditions will be worked out in due time. 



