288 REPORT OF THE No. 3 



the said supply of pulpwood and pine timber for the purpose of the mill or mills 

 to be established, maintained, conducted and carried on at a point or points 

 at or near the said area at some place or places approved of by the Minister, 

 NOW, THEREFORE, THIS INDENTURE WITNESSETH that in 

 consideration of the premises, it is agreed by and between the Grantee and the 

 Crown as follows: 



1. On or before the twelfth day of October, 1921, the Grantee shall have 

 commenced construction work on a pulp mill in or near said area at some place 

 approved by the Lieutenant-Governor-in-Council and will thoroughly equip 

 the same so that the expenditure in connection with the erection, equipment 

 and machinery of said pulp mill will be at least one million dollars ($1,000,000), 

 and shall expend in connection with the erection, equipment and machinery 

 of said pulp mill as follows: On or before the fourth day of July, 1922, the 

 sum of two hundred thousand dollars ($200,000); between the fourth day of 

 July, 1922, and the fourth day of July, 1923, the latter day inclusive, the sum 

 of three hundred and fifty thousand dollars ($350,000), and between the fourth 

 day of July, 1923, and the fourth day of July, 1924, the sum of four hundred 

 and fifty thousand dollars ($450,000), on or before which last-mentioned date 

 the Grantee shall have said mill equipped and in operation. 



2. Upon and after the completion of said mill, said Grantee, during 

 the currency of this agreement, shall continue to operate the said pulp mill so 

 that the daily output thereof shall, in each and every day during the currency 

 of this agreement, be not less than one hundred and fifty (150) tons of pulp, 

 and shall employ or keep employed in connection with said operation of said 

 mill at least three hundred (300) persons on an average for at least ten (10) 

 months in each and every year during the period of this agreement, and the 

 employment of said three hundred (300) persons as aforesaid shall form part 

 of the consideration for the price of the pulpwood and pine timber. 



Commencing with the month of January, 1925, the Grantee shall, in the 

 month of January of each and every year during the currency of this agreement, 

 deliver to the Minister upon such form as the Minister may direct, a statement, 

 verified by the oath of the secretary of the Grantee, showing the persons who, 

 during the calendar year ending with the thirty-first day of December then 

 next preceding, were employed by the Grantee in operating the said mill, to- 

 gether with such other details in connection therewith as the Minister may 

 require. 



3. The Grantee shall with all convenient despatch proceed to construct 

 a paper mill or mills in or near the said area at such place as the Minister may 

 direct, which said paper mill or mills shall be of the capacity of at least one 

 hundred (100) tons of paper per day and shall have the same in operation on 

 or before the fourth day of July, 1925, and on and after the completion of said 

 paper mill or mills, the said Grantee during the currency of this agreement shall 

 continue to operate said mill or mills continuously so that the daily output 

 thereof shall not be less than 75 tons of paper. The Grantee hereby agrees 

 to reserve from time to time, such quantities of newsprint paper as he may be 

 required to do by the Minister for purchase by publishers within the Dominion 

 of Canada. 



4. The cutting of the said pulpwood arid timber may begin as soon as 

 but not before the said sum of two hundred thousand dollars ($200,000) shall 

 have been expended on the erection, equipment and machinery of said mills, 

 buildings and structures. 



