14 REPORT OF THE No. 3 



Timber Sales 



Exclusive of the pulp concessions proper, covered by special agreements in 

 pursuance of advertised conditions and public competition, there were forty-four 

 areas sold during the fiscal year; fifteen of these each contained one square 

 mile or less, while the other twenty-nine aggregated 373 square miles. In this 

 acreage practically every district was represented and every type of producer, 

 from the white pine operator and tie maker to the lath man and pulp and paper 

 manufacturer. White pine ranged in price from $6 to $16 per thousand feet 

 B.M., jack pine from $2.50 to $18, the latter price being no doubt an inflated 

 one. The jack pine bids were very substantial and gave evidence of the desire 

 of tie operators to fill railway contracts. Pulpwood stumpage varied from 

 simple dues of $1.40 a cord in the case of spruce to $3.95; balsam from $1 to 

 $2.95; and other classes of pulpwood, poplar and jack pine from 40c. to 65c. 

 (See Appendix No. 29.) 



The Hawk Lake Company acquired some sixty square miles in the Cochrane 

 District on the Temiskaming & Northern Ontario Railway extension, where a 

 sawmill is now in operation and the company will invest heavily in rossing 

 plants and drum barkers. This industry will play an important part in pro- 

 viding freight for this new portion of the Provincial Railway. 



The Beaver Wood & Fibre Company, with an enlarged paper outfit at 

 Thorold, Ontario, secured the townships of Ottaway and Duff in Cochrane 

 District on the Transcontinental Railway and will ship their wood over the 

 Temiskaming & Northern Ontario Railway and other lines to their Thorold 

 plant. New sawmills and drum barking installations in the vicinity of these 

 townships are expected to result within the next year. 



Special pulpwood agreements were consummated between the Government 

 and successful tenderers in outstanding instances. The poplar on an area of 

 350 square miles, partly in Sudbury, Timiskaming and Cochrane, was disposed 

 of to C. Howard Smith for supplies to the Cornwall Paper Mill, where very 

 important extensions have been made and plans are in progress for a more 

 extended development involving varied products. (See Appendix No. 29.) 



The Spruce Falls Company augmented their previous holdings by securing 

 new areas in the watersheds of the Kapuskasing, Ground Hog and Mattagami 

 Rivers and have already taken advanced steps towards a huge expansion to 

 meet their obligations. A huge water power development at Smoky Falls, a 

 sixty-mile logging railway from the Falls to Kapuskasing and an ultimate daily 

 output of 500 tons of paper have been assumed and in part already completed. 



The Nipigon Corporation, Limited, with plant at Nipigon, the Thunder 

 Bay Company and Provincial Paper Mills, with plants at Port Arthur, and the 

 Fort William Paper Company, Limited, with plant at Fort William, acquired 

 separate and distinct cordage areas in the Nipigon watershed and have to date 

 proceeded along lines of extending their industries in accordance with the 

 stipulations laid down by the Crown. 



As announced in last year's report, which presaged the agreements, the 

 expansion of the paper output will redound not only to the industrial and com- 

 mercial progress of the regions immediately affected, but to the general pros- 

 perity of the whole Province and the Dominion itself, because of the buoyancy 

 it gives to international trade and the stability to the Canadian dollar. (See 

 Appendices Nos. 30 to 35.) 



