1927 DEPARTMENT OF LANDS AND FORESTS 13 



The pulpwood industry, with its pulp and newsprint production, has done 

 much towards improving international trade balances and giving a stability to 

 Ontario commercial development. From now on the demand for pulpwood for 

 home consumption must necessarily grow. The extension to present plants and 

 the proposal for additional ones are vitalizing factors in maintaining the market 

 for the settler and the small pulpwood limit holder, while the clear-cut policy 

 of the Government, as indicated in new agreements to regularly allocate the 

 areas and designate the size and type of timber to be cut, is conducive to 

 permanency. 



Substantial additions are being made to the Fort Frances paper mills which 

 mean doubling the output to 250 tons of paper daily. 



Important progress is being made at the head of the lakes around Port 

 Arthur, Nipigon and Fort William, where the four outstanding firms. Provincial 

 Paper Mills, Nipigon Corporation, Thunder Bay Company, and Fort William 

 Paper Company, are making extensive additions which on completion will 

 make this section probably the most important paper producing centre in the 

 world. 



Under the agreements made, increases in capital investment at this point 

 alone will total over $22,000,000; in employees over 1,300 in the mills *alone 

 and over 7,000 in the bush. 



Then on the Transcontinental, the Spruce Falls Company have just com- 

 pleted a logging railway and transmission right-of-way for sixty miles from the 

 railway north to Smoky Falls, where they propose to develop hydro-electric 

 power to run the paper mill at Kapuskasing, the capacity of which is being 

 increased from 115 to 550 tons of newsprint per diem. 



The effect of such a huge development in this new section may be gauged 

 when it is realized that this firm, when their extensions are completed and the 

 mill in full operation, will employ no less than 700 men in and about the mill 

 and 3,500 in the bush. 



During the past year the Howard Smith Paper Mills at Cornwall made 

 large additions to their mill for increased production in the highest grade of 

 note and writing paper and a variety of other products. This mill is one of 

 the very few mills in Ontario consuming poplar pulpwood and the pioneer 

 settler and the owner of poplar lots are finding a new outlet for this type of 

 wood, the market for which has been most restricted. 



The Province is fully assured of the continued expansion of the great pulp 

 and paper industry as the Government, in all its new agreements, has insisted 

 on home production to the limit, every cord of our wood going into paper. 



Hand in hand with the constantly growing paper industry goes the harness- 

 ing and developing of some of the important water powers of the newer parts 

 of the Province, all of which powers remain the property of the Crown, leases 

 covering their use amply protecting the public against monopolistic rates for 

 municipal and individual purposes; railway tonnage is increased, the labour 

 market improved, and a continued commercial prosperity guaranteed. 



Mill Licivnses 



Number of Mill Licenses issued October 31st, 1925, to October 31st, 1926 

 — 777. Of this number 499 paid no license fees, as the (lail\- capacity of the 

 mills was less thrji 10,000 feet R.M. Of the remaining 278, 168 were for saw 

 mills, 39 pulp and paper mills, 10 lath mills, 24 shingle mills, 2 veneer mills, 

 23 stave, heading and hoop mills, 3 tic mills, and 9 rossing mills. 



