92 REPORT OF THE Xo. 3 



payable by the Company hereunder. The Company shall also furnish a bond 

 satisfactory to the Minister in the sum of Two hundred thousand dollars to secure 

 the performance of its obligations hereunder. 



6. The woods and timber covered by this agreement are spruce, balsam, 

 banksian or jackpine, poplar and whitewood trees. 



7. The right to sell banksian or jackpine and to authorize the purchaser 

 to cut and remove the same, is hereby reserved to the Crown, but the Minister 

 may from time to time if he deems wise, permit the Company to cut and remove 

 banksian or jackpine logs and the Minister may at any time require the Company 

 to cut banksian or jackpine on areas covered by its operations. 



8. All banksian or jackpine cut into logs under the provisions of paragraph 

 7 hereof shall be manufactured into lumber, ties or other manufactured products 

 to the satisfaction of the Minister in the Province of Ontario. 



9. The Company shall not hew any timber into ties without having first 

 obtained the consent in writing of the Minister, and if such consent be given, the 

 price to be paid by the Company for ties so hewn shall be fixed by the Minister 

 in and by the writing containing such consent. 



10. 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. 



11. All spruce, balsam, or poplar cut into logs, under the provisions of the 

 preceding paragraph hereof shall be manufactured into lumber or other manu- 

 factured products to the satisfaction of the Minister in the Province of Ontario. 



1 2. All pulpwood cut by the Company under this agreement shall be 

 manufactured into newsprint or other finished product of pulp approved by the 

 Lieutenant-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 Kapuskasing. 



13. 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 deem 

 fit, and in particular, but not so as in any way to limit 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 lands, together with the right to sell, 

 lease, locate or otherwise dispose of any lands, within the area 

 already located 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. 



