106 REPORT OF THE No. 3 



on other ungranted Crown Lands to be designated by him, and to 1 e situate as 

 near as possible to the City of Port Arthur, on the same terms and conditions 

 as are herein contained : 



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

 same shall consist of a ground-wood pulp mill having a daily capacity of three 

 hundred and fifty (350) tons of mechanical pulp; a sulphite pulp mill having a 

 daily capacity of one hundred and twenty-five (125) tons of unbleached sulphite 

 pulp, and a paper mill having a daily capacity of four hundred (400) tons of 

 newsprint. The construction of the additions and enlargements necessary 

 to increase the capacity of the said plant to the extent mentioned in this para- 

 graph, shall be commenced not later than the first day of May 1926, and the 

 first unit consisting of enlargements and extensions to the Company's present 

 plant so that the same will consist of a ground-wood pulp mill having a daily 

 capacity of 120 tons of mechanical pulp; and a paper mill having a daily capacity 

 of one hundred (100) tons of newsprint, shall be completed on or before the first 

 day of December, 1926. The construction of a second unit consisting of such 

 further extensions and additions to the company's plant as shall make the same 

 consist of a ground-wood pulp mill having a daily capacity of two hundred 

 (200) tons of mechanical pulp; a sulphite mill having a daily capacity of seventy 

 (70) tons of sulphite pulp, and a paper mill having a daily capacity of two hund- 

 red (200) tons of newsprint, shall be commenced on or before the first day of 

 October 1927, and shall be completed on or before the first day of December 

 1929; and the construction of a third unit consisting of such further extensions 

 and additions to the Company's plant as shall make the same consist of a ground- 

 wood pulp mill having a daily capacity of three hundred and fifty (350) tons of 

 mechanical pulp, a sulphite mill having a daily capacity of one hundred and 

 twenty-five (125) tons of sulphite pulp, and a paper mill having a daily capacity 

 of four hundred (400) tons of newsprint shall be commenced on or before the 

 31st day of December 1929, and shall be completed on or before the 31st day of 

 December 1931. 



2. Expenditure shall be made by the Company in the construction of such 

 extensions and additions as follows: One Hundred and Twenty- Five Thousand 

 dollars ($125,000) on or before the 1st day of July 1926, and the proper addi- 

 tional amount necessary to complete said first unit, and not less than One 

 Million, Five Hundred Thousand dollars ($1,500,000) on or before the 31st 

 day of December 1926, the full amount necessary to complete said second unit, 

 and not less than Two Million dollars ($2,000,000) additional, on on or before 

 the 31st day of December, 1929, and the full amount required to construct the 

 third unit and to complete in all respects, extensions and enlargements to the 

 said plant to the full extent mentioned herein not later than the 31st day of 

 December 1931. 



3. The plans for the additions and enlargements to the Company's said 

 plant hereinbefore mentioned shall be submitted to and approved of by the 

 Minister, and such additions and enlargements shall be completed within the 

 time above mentioned to the satisfaction of the Minister. 



4. The said Company shall expend in additions, enlargements and better- 

 ments to its said existing plant and in works necessary and advisable for the efficient 

 operation thereof the sum of Ten Million dollars ($10,000,000) or such other 

 sum as shall be sufficient to construct and complete in all respects a modern and 

 well-equipped pulp mill and paper plant of the character hereinbefore provided 

 for, and shall furnish proof to the satisfaction of the Minister of such expenditure. 



