268 REPORT OF THE No. 3 



the other land necessary for flowage purposes, together with all water power 

 privileges and all rights, easements and appurtenances which the Minister 

 of Lands and Forests may deem expedient for the utilization of the waters of 

 White Dog Rapids for power purposes. For this purpose the Company shall 

 submit plans and descriptions of survey of the necessary land required to be used 

 in developing the said water power privilege and the construction of the 

 necessary works thereon, such plans to be subject to the approval of the Minister 

 of Lands and Forests, who, upon such approval, shall prepare a form of lease 

 of the same in which the lands and lands under water to be covered by the 

 lease will be specifically delimited. Upon the execution of said lease the Crown 

 will grant to the Company the right to flood any Crown lands which the said 

 Minister of Lands and Forests may deem expedient, and to such an extent 

 and in such manner and subject to such conditions and stipulations as the 

 Minister may deem expedient; all plans and specifications of works for the 

 storage and regulation of said waters to be subject to the approval of the said 

 Minister. The lease of the said water power will be the standard form of 

 Government lease of water power, but in addition the said lease and right so 

 granted shall be subject to the rights of all private owners of property who are 

 liable to be affected by the development of the water power at the said Rapids 

 or the storage of water in connection therewith, and to such rentals, reservations, 

 provisoes, conditions and stipulations (including the regulation of the Norman 

 dam at the outlet of the Lake of the Woods) as the Minister of Lands and 

 Forests may deem to be in the public interests. 



3. Neither said lease nor said right to flood Crown lands shall in any 

 way be taken or construed as a demise or grant to the Company of any lands, 

 or lands under water, rights or privileges not within the limits, power or legis- 

 lative authority of the Province of Ontario, it being understood and agreed 

 that the lands and lands covered by water to be therein demised or granted, 

 and all rights or privileges to be thereby conferred, are limited to such as are 

 owned or controlled by the Crown as hereinbefore defined. 



4. It is hereby expressly provided and agreed that the Agreement for a 

 lease to be given the Company as aforesaid is for the purpose of enabling the 

 Company to carry out the terms of their said agreement with the Town of 

 Kenora (Schedule "A") and their agreement with the Crown (Schedule "B") 

 and is conditional upon the due performance of said agreements (save as other- 

 wise herein provided) and upon the failure or neglect of the Company to carry 

 out any of the terms of said agreements, or either of them, as herein provided, 

 or of this agreement, the Minister of Lands and Forests for the Province of 

 of Ontario, for the time being shall, in addition to all other powers contained 

 in said lease, have the power to cancel the said lease and the agreement therefor 

 herein contained. 



5. In consideration whereof the Company agree that they will forthwith 

 after the execution of this Agreement proceed with the erection in the Town 

 of Kenora of the mills mentioned in paragraphs 1, 2 and 3 of said Agreement 

 set out in Schedule "B" hereto, and in accordance with the provisions of the 

 last-mentioned agreement will erect and complete the said mills mentioned 

 in said paragraphs and will in all other respects carry out their obligations under 

 the terms of the said Agreement as now revived, varied and amended, including 

 the manufacture in the said mills of the wood from the area described in the 

 said agreement (Schedule "B"), and specifically undertake that they will 

 construct and place in operation one unit of the said pulp mill of 50 tons daily 

 capacity, not later than the 1st day of October, 1921, and will continue con- 



