272 REPORT OF THE No. 3 



4. The Grantees shall further extend the said pulp and paper mills and 

 increase the capacity thereof as from time to time they may be required by 

 the Minister so to do, having regard to the quantity of pulpwood available for 

 the said mills. 



5. The Grantees shall provide and operate a sawmill or sawmills in the 

 Baid Town of Kenora of such capacity as the Minister from time to time may 

 require, and shall operate the said sawmill or sawmills during the whole period 

 of this agreement so that the output of said sawmill or sawmills, in each year 

 thereof, shall be such reasonable quantities as from time to time may be re- 

 quired by said Minister. 



6. The said Grantees shall employ and keep employed in connection with 

 the operation of said pulp and paper and sawmills, at least 1,000 persons for 

 at least 10 months in each and every year during the period of this agreement. 



7. The said sawmills shall be in operation during the year 1921. 



8. The Grantees shall further extend the said pulp and paper mills and 

 increase the capacity thereof beyond that hereinbefore provided for, as they 

 may from time to time be required by the Minister so to do, having regard to 

 the quantities of pulpwood and other timber that will be available for the said 

 mills. 



9. In consideration of a cash bonus of $50,100 and of said expenditure, 

 and of the contracts and agreements entered into on the part of the Grantees, 

 the Crown will and doth for the dues hereinafter set forth and provided, and 

 subject to the terms, conditions and regulations as to the locality and manner 

 of cutting, measuring, removing and driving same as may from time to time 

 be imposed by the Minister, and subject also as is hereinafter set forth and 

 contained, grant to the Grantees the right to cut and remove all the merchant- 

 able timber or wood in or upon the areA hereinafter described, to be used only 

 in and for the purpose of supplying the said mill or mills to be erected, for a 

 period of twenty-one years from the date hereof, from unoccupied, unsold and 

 unlocated lands of the Crown as follows: 



Commencing at the intersection of the northerly limit of the 

 Canadian National (Transcontinental) Railway right-of-way with 

 the inter-provincial boundary between the provinces of Ontario and 

 Manitoba; thence north along said inter-provincial boundary to the 

 southerly shore of the English River; thence in a general course north- 

 easterly, following the southerly shore in all its windings of said Eng- 

 lish River, lake expansions and Lac Seul to the intersection with the 

 west limit of Indian Reserve No. 28; thence south-east and south, 

 following the westerly and southerly boundaries of said Indian Reserve 

 to the south-westerly angle thereof near Lost Lake; thence continuing 

 south astronomically to the northerly limit of the aforesaid right-of- 

 way; thence westerly, following the said limit right-of-way to the 

 point of commencement, containing by admeasurement three thousand 

 and forty-six square miles (3,046 sq. miles) more or less. 



Saving and excepting from the above-described area all Indian 

 Reserves, all townsites and all those parts of the Townships of Rice, 

 Malachi, Redditt, Smellie, Redvers, -Wabigoon, Buller, Wauchope, 

 Ladysmith, and Rowell, lying north of said right-of-way, and all 

 islands in lakes or rivers within the described area; also the rights 

 of timber licensees as to timber sold on timber berths, A.T.W. 2, 3, 



