86 REPORT OF THE No. 3 



13. Whenever in the opinion of the Minister there is spruce, balsam or 

 poplar too large for pulpwood on the areas in which the Company is operating, 

 the same shall be cut into logs and paid for by the Company at such prices as 

 may be determined by the Minister in writing. 



14. All spruce, balsam or poplar cut into logs, under the provision of the 

 provisions of the preceding paragraph hereof shall be manufactured into lumber 

 or other manufactured products to the satisfaction of the Minister in the Prov- 

 ince of Ontario. 



15. All pulpwood cut by the Company under this agreement shall be manu- 

 factured into newsprint or other finished product of pulp approved by the Lieu- 

 tenant-Governor-in-Council and requiring the expenditure of no less labour 

 and money in the manufacture thereof than is required in the manufacture of 

 newsprint at the Company's said plant at Port Arthur or at its other plants 

 in the Province of Ontario. 



16. When and so soon as the Company has erected the soda pulp mill 

 hereinbefore provided for, the Company shall utilize the product of such mill or 

 such part thereof as the Minister may from tine to time designate, in the manu- 

 facture of book paper of a quality equal to that now used in the publication of 

 school books in the Province of Ontario. 



17. It is distinctly understood that the right is hereby reserved to the Crown 

 to deal with the lands above described and the timber standing, growing and 

 being thereon for reforestation and other purposes as the Minister may see fit, 

 and in particular, but not so as in any way to limit or restrict the generality of 

 the foregoing, it is hereby specifically stipulated and agreed as follows: 



(a) All red and white pine on said territory is reserved to the Crown. 



(b) The Crown reserves and excepts from the lands above described the 



right of way of any and all railways or travelled roads, islands, Indian 

 Reserves and all lands under the water of all rivers, lakes and 

 streams ; also all lands heretofore patented, licensed, leased, located 

 or applied for in respect of which such proceedings have been 

 taken or shall hereafter be taken as in the opinion of the Minister 

 of Lands and Forests entitles the applicant or applicants to a 

 lease or patent of such land, together with right to sell, lease, 

 locate or otherwise dispose of any lands within the area allocated 

 for settlement, mining, summer resort or other purposes on such 

 terms and conditions as may be deemed advisable. 



(c) All water powers and privileges on the said territory are reserved to 



the Crown. 



(d) The Company shall not have the right to cut or remove timber of 



any kind from any lands already under timber license or permit 

 from the Crown, without the special permission in writing of the 

 Minister. 



(e) In no event shall cutting be performed within one-half mile in per- 



pendicular width along the shores of Lake Nipigon, without the 

 consent in writing of the Minister. 



18. On or before the first of September in each year, the Company shall apply 

 to and get the permission in writing of the Minister for the area within said 

 territory on which the cutting for the then coming season shall take place, and 

 the Company shall not be entitled to cut any other place or places in said terri- 

 tory other than and except those specially designated in such permission. At 

 the end of the season's operations, and on or before the first day of June in each 



