84 REPORT OF THE No. 3 



pulpwood to operate the said pulp and paper plant to its full capacity during 

 the said period of twenty-one years, or any extension or extensions thereof as 

 hereinafter provided. The Company shall also have the right to cut and remove 

 in and upon such parts of the territory as may from time to time be designated 

 by the Minister, sufficient tie material as may be required, having regard to the 

 tie material on the Allanwater Limits, to secure the due performance of the 

 Allanwater agreement. 



2. The Company shall with all convenient despatch proceed to- construct 

 a pulp and paper plant in or near the town of Fort William, or at such other 

 place, approved by the Minister, as the Company may select, which said mill 

 or mills shall be of the capacity of at least 200 tons of newsprint paper per day 

 and shall have the same fully equipped for operation, as soon as power is avail- 

 able under the contract for power with the Hydro Electric Power Commission 

 of Ontario in 1929 or 1930, and on and after the commencement of operation 

 the Company shall, during the currency of this agreement, continue to operate 

 said mill or mills continuously so that the daily output thereof shall not be 

 less than 200 tons of paper. The Company shall expend in construction and 

 equipment of the plant the sum of at least $5,000,000.00. 



3. The Company shall upon and after the first day of January, 1930, the 

 said power being then available, constantly employ at least two hundred (200) 

 hands in or about the operation of the said pulp and paper plant and shall 

 directly or indirectly afford employment in its woods' operations for not less 

 than six months in each year for an average of 1,250 men during the whole of 

 the remainder of said period of twenty-one years. 



Provided however, that if the Company through accident, lack of or interrup- 

 tion to power or any other cause not attributable to any default on its part, 

 which shall pclude strikes or other labour troubles, shall at any time or times 

 be unable to give continuous employment to the number of men provided for 

 in this paragraph, the Minister may by order in writing under his hand relieve 

 the Company from time to time at any time from its liability so to do. No such 

 order shall in any way invalidate this paragraph or relieve the Company from 

 liability thereunder, other than and to the extent specifically set forth in such 

 written order. 



4. The Company shall within thirty days from the date hereof deposit 

 with the Minister the sum of $25,000.00 which shall remain on deposit until 

 the pulp and paper plant hereinbefore provided for has been completed and 

 put in operation. After said plant has been completed and is in regular operation 

 the said $25,000.00 may be applied on account of bonus payable by the Company 

 under this agreement. The Company shall also furnish a bond of an approved 

 Guarantee Company satisfactory to the Minister in the sum of $100,000.00 to 

 secure the performance of its obligations hereunder, the said sum of $100,000.00 

 to be reduced to $50,000.00 if and when to the satisfaction of the Minister one- 

 half of the expenditures as requited under the agreement has been made. 



5. The wood and timber covered by this agreement are spruce, balsam, 

 banksian or jackpine, poplar, tamarac and whitewood trees. 



6. Whenever, in the opinion of the Minister, there is spruce, balsam or 

 poplar too large for pulpwood on the areas of the territory in which the Company 

 may be 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 but in no case 

 to exceed the prevailing rates for such timber generally in the district where 

 the factors entering into the determination of stumpage values are vsimilar. 



