84 REPORT OF THE Xp. 3 



Township of Nipigon intersects the north shore of Nipigon Bay of Lake Superior; 

 thence north along the east boundary of the said township 5 miles and 363^ 

 chains to the north-east angle of the township; thence east astronomically a 

 distance of 5 miles and 30 chains more or less to a point south astronomically 

 from the southeast angle of the Township of Ledger; thence north astronomically 

 7 miles more or less to the south-east angle of the said Township of Ledger; 

 thence east astronomically along the south boundary of the Nipigon Forest 

 Reserve 22 miles to the south-east angle thereof; thence north astronomically 

 along the east boundary of the Nipigon Forest Reserve 8 miles; thence east astron- 

 omically a distance of 28 miles more or less to a point of intersection with the 

 west boundary of the Pic River Pulp and Timber Boundary produced north; 

 thence south 8 miles more or less to the north-west angle of said Pic River Pulp 

 and Timber Limit and continuing south along the west boundary of said timber 

 limit 23 miles more or less to the north shore of Lake Superior; thence westerly 

 and north-westerly following the shore of Lake Superior to the place of beginning, 

 containing an area of 1,240 square miles more or less, excepting from the above 

 described area the right of way and lands of the Canadian Pacific Railway 

 Company and all lands patented, leased or sold therein — sufficient pulpwood 

 to enable the Company to operate its enlarged plant continuously to its full 

 capacity; and if at any time during said period of twenty-one years or any ex- 

 tensions thereof as are hereinafter provided for, it should appear that for any 

 reasons whatever there is not sufficient pulpwood timber on the said territory 

 to supply the Company with sufficient pulpwood to enable it to operate its en- 

 larged plant continuously to its full capacity the Minister will grant to the 

 Company the right to cut pulpwood timber on other ungranted Crown lands to 

 be designated by him, and to be situate as near as possible to the City of Port 

 Arthur, on the same terms and conditions as are herein contained ; 



The whole of the area above described is hereinafter referred to as "the 

 territory," 



1. The said Company shall increase the capacity of its said plant at the City 

 of Port Arthur until same shall consist of a ground-wood pulp mill with a capacity 

 of 70 tons of mechanical pulp per day, a sulphite pulp mill with a capacity of 

 50 tons of bleached pulp per day, and a paper mill with a capacity of 90 tons of 

 newsprint per day, and shall instal in such plant all necessary machinery and 

 equipment for the manufacture of book paper of a quality equal to that now 

 used in the publication of school books in the Province of Ontario. 



2. The construction of the additions and enlargements necessary to increase 

 the capacity of said plant to the extent mentioned in this paragraph shall be 

 commenced forthwith, and shall be completed on or before the 31st day of Decem- 

 ber 1927. At least $50,000 shall be expended before the 1st day of July 1926; 

 an additional sum of $200,000 before the first day of July 1927, and the total 

 amount necessary to complete the said enlarged plant on or before the 31st day 

 of December 1927. 



3. The Company shall also construct at the said City of Port Arthur a 

 soda pulp mill for the production of soda pulp for use in the making of book paper, 

 or some other plant equally efficient for the purpose of making book paper, 

 when and so soon as market conditions in the Province of Ontario will justify 

 such expenditure, of which fact the Minister shall be the sole judge. 



4. The soda pulp mill or other book paper plant referred to in the preceding 

 paragraph hereof, shall have a capacity of 50 tons, shall require an expenditure 

 of at least $1,000,000, and shall when constructed employ in the operation 

 thereof at least 150 men. 



