90 REPORT OF THE No. 3 



And whereas the Company now employs in its said plant at Kapuskasing, 

 approximately 225 men and also affords employment for approximately 1,000 

 men in the woods operations carried on to provide the said plant with a supply 

 of wood. 



And whereas the Company has expended in the erection and equipment of 

 its said plant and in the development of water power and otherwise upwards of 

 Five Million, Five hundred Thousand dollars ($5,500,000.00). 



And whereas the Company is desirous of enlarging its plant so that the 

 same will ultimately comprise a ground woodpulp mill with a capacity of 325 

 tons of mechanical pulp per day, sulphite pulp mill with a capacity of 115 tons 

 of sulphite pulp per day, and a paper mill of a capacity of 550 tons per day. 



And whereas the expenditure involved in enlarging the Company's plant to 

 the extent and in the manner above described, and in developing water powers, 

 building tramways, and in undertaking and completing other works necessary 

 or advisable for the efficient operation of the said enlarged plant, will exceed the 

 sum of Twelve Million dollars ($12,000,000). 



And whereas the plant and works of the Company enlarged as aforesaid 

 will employ approximately 700 men, and will afford employment for approxi- 

 mately 3,500 men in woods operations. 



And whereas by advertisement duly published the Honourable the Minister 

 of Lands and Forests for the Province of Ontario called for tenders to be received 

 by him for the right to cut pulpwood on the areas therein mentioned, including 

 the lands hereinafter described, subject to certain terms and conditions of sale. 



And whereas in pursuance of such advertisement the Company did deliver 

 its tender to the said Minister in and by which tender it offered to pay for such 

 pulpwood the prices hereinafter set forth. 



And whereas with its tender aforesaid the Company did deposit with the 

 Minister its marked cheque payable to the Honourable the Treasurer of the 

 Province of Ontario for the sum of Fifty Thousand dollars ($50,000). 



And whereas it will be of great advantage to the Province of Ontario and 

 aid materially in the advancement, development and settlement of the district 

 in which the Company's plant is located to have the plant of the Company en- 

 larged in manner aforesaid. 



And whereas the Company is willing to undertake and agree to conduct and 

 build a logging railway for the purpose of transporting its logs from a point at 

 or near Smoky Falls in the Township of Harmon, to a point at or near the said 

 Town of Kapuskasing, in such manner as the Minister may require and develop 

 the power of Smoky Falls and build a transmission line or lines from Smoky 

 Falls to its plant at Kapuskasing. 



And whereas the Company is willing, whenever required by the Minister 

 so to do, to erect a saw mill at or near the station of Fauquier on the Canadian 

 National Railway for the purpose of manufacturing lumber from wood other tha.n 

 pulpwood. 



And whereas in view of the matters above recited, the Minister has deemed 

 it wise and in the public interest to grant to the said Company, the right to cut 

 pulpwood as herein provided and has caused this agreement to be prepared so 

 as to secure the erection by the Company of the said enlarged plant and at the 

 same time to assure to the Company a supply of pulpwood sufficient to operate 

 its enlarged plant to its full capacity for a period of twenty-one years, from the 

 date hereof or any extension or extensions hereon as are hereinafter provided for. 



Now this agreement witnesseth that the Minister, with the approval of 

 the Lieutenant-Goveinor-in-Council, and subject to all the terms and conditions 



