82 REPORT OF THE No. 3 



timber rights to maintain or warrant a pulp and paper plant for its manufacture; 

 and the construction of the necessary pulp and paper plant for that purpose is 

 impracticable without cutting rights upon additional territory located in con- 

 venient working proximity to the present timber rights. 



And whereas the grantee under the Allanwater agreement has represented 

 that there is not sufficient tie-material on the Allanwater limits to secure the 

 operation of the tie-preserving plant as contemplated by the Allanwater agree- 

 ment. 



And whereas the Allanwater agreement provides that in that event, or 

 other events which, in the opinion of the Minister, have happened, the Govern- 

 ment shall provide the grantee with a fair and reasonable opportunity to acquire 

 additional area and adjacent, if available, to the Allanwater limits to the extent 

 required to provide timber for the operation of the tie-preserving plant in the 

 said agreement mentioned. 



And whereas in September, 1925, a tender was put in on behalf of the grantee 

 under the Allanwater agreement for the timber on a portion of the territory 

 hereinafter mentioned adjacent to the Allanwater limits at a price which would 

 be the same as the price named in the highest tender received by the Department 

 of Lands and Forests for the said timber at a public sale to close that month, 

 which price the Company has agreed to pay for the timber on the territory 

 hereinafter described. 



And whereas the territory hereinafter described is in two blocks adjacent 

 respectively to the Allanwater limits and to the limits under license to the 

 Montreal Trust Company. 



And whereas the Company desires to construct a pulp and paper plant at 

 the city of Fort William, or such other place as it may select, and approved by 

 the Minister, which will ultimately comprise the several plants, involving the 

 expenditure by the Company, and providing the employment, as hereinafter 

 respectively agreed, such pulp and paper plant to be continuously operated for 

 a period of twenty-one years and the extension, or extensions thereof, as herein- 

 after provided which will utilize, and provide for the manufacture of, the pulp- 

 wood on the existing timber rights. 



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

 materially in the advancement and development of the districts in which the 

 said sawmill plants and the existing timber rights are respectively located to 

 secure the construction and continuous operation as hereinafter provided of the 

 proposed pulp and paper plant. 



And whereas in view of the matters above recited the Government has 

 deemed it wise and in the public interest to grant to the said Company the 

 right to cut and remove the timber thereon, as hereinafter provided, and has 

 caused this agreement to be prepared so as to secure the construction by the 

 Company of the said pulp and paper plants and at the same time to assure 

 to the Company a supply of pulpwood sufficient to operate the said plants to 

 their full capacity for a period of twenty-one years from the date hereof, 

 or of any extensions or extension thereof as are hereinafter provided for and also 

 to assure to the Company a supply of tie material sufficient to operate the 

 preserving plant as provided by the Allanwater agreement. 



Now therefore this indenture witnesseth that in consideration of the 

 promises and of the mutual covenants and agreements hereinafter contained it 

 is hereby agreed between the parties hereto, as follows: 



