in REPORT OF THE No. 3 



And whereas the Company now employs in its said plant at Nipigon approxi- 

 mately 100 men, and also affords employment for approximately 300 men in 

 the woods' operations carried on to provide the said plant with a supply of wood; 



And whereas the Company has already expended in the erection and equip- 

 ment of its said plant upwards of $1,250,000; 



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

 will ultimately comprise a ground-wood pulp mill with a capacity of 350 tons 

 of mechanical pulp per day; a sulphite pulp mill with a capacity of 125 tons of 

 sulphite pulp per day, and a paper mill with a capacity of at least 400 tons of 

 newsprint per day; 



And whereas it is estimated that the expenditure involved in enlarging the 

 Company's plant to the extent and in the manner above described, and in under- 

 taking and completing other works necessary or advisable for the efficient 

 operation of the said enlarged plant, will exceed the sum of Ten Million dollars 

 ($10,000,000). 



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

 will employ approximately 500 men and afford employment for approximately 

 3,000 additional men n 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 and timber 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 and timber on the territory described in said tender, the prices follow- 

 ing: Spruce pulpwood, upset price 50c, dues $1.40, additional 8c, total $1.98 per 

 cord; Balsam pulpwood, upset bonus 40c, dues 70c, total $1.10 per cord; Poplar, 

 upset bonus 10c, dues 40c, total 50c, per cord; Jackpine pulpwood, upset bonus 

 10c, dues 40c, total 50c, per cord ; Banksian or Jackpine, upset bonus $3.50, dues 

 $2.50 per M ft. B.M., total $6.00; 



And whereas the prices offered by said Company were the highest received 

 for the territory covered by said tender, and the Company has agreed to pay the 

 prices hereinafter mentioned, which said prices are the highest offered pursuant 

 to such advertisement by any tenderer for pulpwood and timber in the District 

 of Thunder Bay; 



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 

 enlarged in manner aforesaid; 



And whereas the said Company has no assured supply of wood for its present 

 plant or for the proposed enlargements thereof; 



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 hereof as are hereinafter provided for; 



