12 REPORT OF THE No. 3 



A number of prime areas suitable for summer purposes were subdivided, 

 valued and listed for sale, and these areas will be catalogued in a new publication 

 to be issued the coming summer. 



The water power industry of Ontario, the result of the extended vision 

 and engineering skill of her own public men, has reached tremendous proportions, 

 the Hydro-Electric System, based on the principle of public ownership and 

 power at cost, being world-wide in its reputation. These natural power 

 resources are under the jurisdiction of this Department and the policy is to 

 regard them as the inalienable right of the people. Consequently no powers 

 are sold, the Crown merely leasing them under terms and conditions compatible 

 with the situations obtaining and the necessity of developing our natural wealth. 

 In addition to the programme followed by the Hydro Commission during the 

 past year, covering the enlargement of Nipigon plant to 72,000 horsepower and 

 negotiations for Gatineau power, developments were commenced by the Spruce 

 Falls Company at Smoky Falls on the Mattagami River some sixty miles north 

 from Kapuskasing on the Transcontinental, where approximately 70,000 horse- 

 power will be provided. The Backus-Brooks interests have been proceeding 

 to a development of some 37,000 horsepower on the Seine River in the Rainy 

 River District, which will augment the supply of the Fort Frances Paper Mill, 

 the capacity of which has been increased to 250 tons daily. 



Renewed interest has been shown in the power on the Michipicoten River 

 in the Algoma District, where, due to an expected impetus in the mining district, 

 demands for hydro-electric energy are growing. 



With the completion of the new installations now under construction, 

 Ontario will continue to hold its high status as the power-producing province 

 of Canada. 



Logging Industry 



The somewhat continued uncertain demand for and the keen outside com- 

 petition in pine and spruce lumber was reflected in the cut for the last logging 

 season. While building operations in varied localities showed healthy activity, 

 lower grade material and imported western and southern products appreciably 

 displaced Ontario's high grade red and white pine and spruce. 



Ontario operators in this class of timber, to protect themselves against 

 the unstable market and the possibility of holding over large stocks that mean 

 added carrying charges and uncontrollable overhead, naturally limited their 

 bush output. Thus the pine cut (including jack pine) for the season just closed 

 was less by 70,000,000 feet than for the preceding year, while the other classes 

 of sawlogs were subject to a decrease of approximately 17,000,000 feet. 



There was also a noticeable decrease in the production of railway ties from 

 Crown areas, only some 1,800,000 against 2,700,000 for the season of 1924-25. 



The general restrictions of such operations were seriously reflected in the 

 timber revenue and at the present moment a survey of the conditions does not 

 warrant the assurance of any sudden improvement. The consequence is that 

 some hesitation is shown by certain large producers in entering upon very exten- 

 sive operations. Others have decided for various reasons to refrain from putting 

 gangs in the bush and to wait for less speculative periods. (See Appendix 

 No. 8.) 



PuLPWooD Operations 



While timber operators found it necessary to restrict their cut the pulp- 

 wood dealers and a number of limit holders increased their cordage over the 

 previous year by 50 per cent , this increase assisting very materially in counter- 

 acting the adverse effect of reduced operations in other lines. 



