m REPORT OF THE No. 3 



5. The Grantee shall, from and after the 31st day of December, 1928, 

 constantly employ at least 50 men in or about the operation of said plant to be 

 constructed as aforesaid, and he shall, either directly in the woods' operations 

 to be carried on by him on the said limits, or indirectly by the purchaseof wood 

 from settlers or others in the Province of Ontario, afford employment for not 

 less than six months in each year for an average of 125 men. 



6. The deposit of Twenty- Five Thousand Dollars ($25,000) made by the 

 Grantee with his tender shall remain on deposit until the 12,000 ton plant here- 

 inbefore provided for has been completed and put in operation. After said 

 plant is completed and is in regular operation, the said Twenty-Five Thousand 

 Dollars may be applied on account of moneys payable to the Crown by the 

 Grantee hereunder, for dues or charges accruing from the timber cut or for 

 ground rents payable to the Crown, or otherwise. The Grantee when and as 

 required shall also furnish a bond of an approved Guarantee Company iii form 

 and in amount satisfactory to the Minister to secure the due performance of all 

 his obligations hereunder. 



7. All timber other than poplar, and the right to sell or otherwise dispose 

 of the same as the Minister may see fit, is hereby specifically reserved to the 

 Crown, but it is distinctly understood and agreed that the Grantee shall cut 

 and remove from the territory from time to time designated by the Minister, 

 as hereinafter provided, wherever required by the Minister so to do, all other 

 merchantable timber of every character and kind whatsoever upon said area 

 that may be necessary to make a clean cut operation according to approved 

 lumbering methods, such cutting to be done in such manner as the Minister may 

 from time to time direct and to his satisfaction. 



8. The Grantee shall pay such prices for timber other than poplar cut under 

 the provisions of the preceding paragraph hereof, as may from time to time be 

 fixed by the Minister, and all timber other than poplar so cut, shall be manu- 

 factured into lumber, ties or other manufactured products to the satisfaction 

 of the Minister in the Province of Ontario. 



9. All poplar timber cut by the Grantee under this agreement shall be 

 manufactured into soda pulp, but as the consumption of paper in Canada is 

 limited, a portion of this soda pulp will be exported, but it is agreed that the 

 pulp manufactured of wood taken off these areas will be manufactured into 

 paper in Canada, in such grades as Fine Book and Coating Papers, and any soda 

 pulp that is exported will be manufactured from wood purchased from other 

 sources. 



10. 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 lands, 

 together with the right to sell, lease, locate or otherwise dispose of any 



