1920-21 DEPARTME^^T OF LANDS AND FORESTS. 11 



A list of the timber berths sold during the year with the names of the success- 

 ful purchasers and the prices paid is being prepared for the next year's report. 



The Kapuskasing Pulp Limit on the Kapuskasing River, in the Districts of 

 Timiskaming and Algoma, comprising 1,740 square miles, was offered for sale in 

 September, 1917, and was purchased by Messrs. S. A. Mundy and E. Stewart. 

 The price or flat rate to be paid was 75c. per cord for all classes of pulpwood, and 

 •$15.00 per thousand feet board measure for red and white pine. In pursuance of 

 the sale an agreement was entered into between the Crown and the purchasers 

 under date of 9th of February, 1918, for the effectual carrying out of the conditions 

 of sale. The purchasers, on the 2nd of March, 1918, transferred their interests to 

 Spruce Falls Pulp and Paper, Limited, who for divers reasons were granted exten- 

 sions of time during 1919, in respect of their obligations as to the erection of 

 pulp mill, etc. Operations not having been proceeded with, negotiations in 1920 

 resulted in an extending agreement dated April 23rd, 1920, followed by a sub- 

 stitutional agreement of the 11th of June, 1920, and by an Order-in-Council of 

 the loth of June, 1920, which increased the dues payable from 75c. per cord to 

 •$L15 per cord upon spruce pulpwood and to 95c. per cord upon balsam and other 

 classes of pulpwood. 



On the 6th of July, 1920, Spruce Falls Pulp and Paper Company assigned 

 their rights to Spruce Falls Company, Limited. Then by agreement, dated the 

 4th of August, 1920, the Crown conveyed 446 acres, including the hitherto Kapus- 

 kasing Colony farm, to the Company at a price of $100.00 an acre for the cleared 

 land and -$2.00 an acre for the unstumped portion, while a portion of O'Brien 

 Township, approximating forty square miles, was added to the pulp limit, but the 

 rate for the spruce pulpwood on the additional area was fixed at $1.60 per cord 

 and on the other classes of pulpwood at $1.30 per cord, the Crown having the right 

 nevertheless over the whole limit to increase the rates in proportion to any general 

 increase in the rates of dues payable throughout the Province, which may hereafter 

 be made by amendment to the Crown Timber Regulations. 



The Spruce Falls Company have, in accordance with the agreement, under- 

 taken operations on a large scale and construction is in full swing. By the 1st of 

 July, 1922, a i-awmill of a minimum capacity of 70,000 feet daily, in two shifts, is 

 to he in operation and by the 1st of January, 1922, a pulp mill with a daily output 

 of not less than 100 tons of pulp. 



From the progress made at the writing of this report it is fully expected that 

 these mills shall be completed and in running operation by the middle of next 

 summer. 



The Company are required to erect a paper mill on or before the 1st of January, 

 1928, with a minimum capacity of fifty tons of paper per day. 



The chain of agreements with the necessary Orders-in-Council and other data 

 shall be printed in pamphlet form under another cover. 



Cullers' Examination, 



Two examinations were held during the year, one at Callander and one at 

 Kenora. Twelve candidates succeeded in passing the examination and were d\ily 

 granted certificates authorizing them to act as Cullers. For names of Cullers who 

 passed at these examinations see page 36, Appendix 1(». For complete list of 

 Culler^ see Minister's Report for 1917. 1918 and 1919. 



