1921-22 DEPARTMENT OF LANDS AND FORESTS 9 



increase of over 14,000,000 feet B.M. Boom and dimension timber, other than 

 pine, cut totalled 3,581,015 feet B.M. Square timber amounted to 83,066 

 cubic feet, while piling accounted for 48,187 lineal feet and 438,412 feet B.M. 



The cut of pulpwood on Crown lands reached the unprecedented figure of 

 928,185 cords, or over three times the quantity taken out the previous season. 



The same activity in tie production did not continue throughout the year 

 as in the two years immediately preceding, as only 4,001,471 ties were returned; 

 the heavy stocks the railways had carried over from their former contracts 

 and the diminution in railway construction lessened the demand. (See Appendix 

 No. 7, page 34.) 



Lumber Industry. — The general depression existing throughout the 

 country has had a serious efifect upon the lumber market, which has not a very 

 bright outlook for the coming year. Although I understand from certain 

 dealers the situation is somewhat improving, there is a pessimistic tone found 

 particularly amongst the small operators, and this will materially affect their 

 bush business this coming year. A number of the small operators with heavy 

 unsold stocks on hand, hesitate to put organizations in the woods because 

 of the uncertain prospects and but few of the large firms are undertaking to 

 conduct operations to the peak of the past year. While labour during 1920-21 

 was considerably high and cost of production proportionately so, the outlook 

 for next season points to lower wages and a consequent reduction in overhead 

 expenses. Because of cheaper and more efficient labour, larger operators are 

 prepared to take their chances on an improvement in an unstable market. 



Pulpwood. — The upward trend of pulpwood induced by the constant 

 and sustained market during the war, continued throughout 1919, and resulted 

 in unprecedented operations in the bush, there being no less than 928,185 cords,- 

 as above stated, cut from Crown lands during the fiscal year ending the 31st 

 October, 1921, or 621,489 cords in excess of that taken the previous year. 



A decided lull in the pulpwood business, however, set in before the large 

 stock could be marketed, and the industry has been most adversely affected; 

 the outlook at present for an early return to conditions approaching those af 

 a few years ago are not the brightest. 



The general declining market for Ontario pulp in the United States has 

 been accentuated by the European importations, particularly from Germany 

 and Scandinavian countries, the rate of exchange working to the serious dis- 

 advantage of American producers in Ontario. The restrictions thus imposed 

 upon our pulp and paper are for the time keenly felt. The Kapuskasing limit 

 is not being worked this year owing to the market conditions, and while during 

 the season of 1920 the English River Concession was sold, and Nipigon, Naga- 

 gami and Long Lake were disposed of during the past year, there is apparently 

 no prospect of an immediate development. Efforts, I understand, are being 

 made towards bringing about legislation in the United States for a correction 

 in the tariff laws to stablilize exchange and any measure leading to this end 

 would benefit the producers and proportionately enhance the demand. With 

 a gradual consumption of the somewhat abnormal stocks of pulp and paper 

 now held will come, it is hoped, a further call for the raw material and then 

 there will be a resumption of the industry and trade. 



Pulpwood agreements, covering important areas, to the number of four, 

 were entered into, as follows: 



English River, District of Kenora, 3,046 square miles. (See Appendices 

 Nos. 49 and 50.) 



