10 REPORT OF THE No. 3 



Tie production was much lower than for the two years immediately pre- 

 ceding, only 1,755,419 having been taken, as against 4,001,471 for 1922 and 

 over 6,000,000 for 1920. The decreased figures are due to lack of new railway 

 construction, uncertainty in connection with tie contracts and the requirement 

 in new sales that ties shall be sawn and not hewn, the latter for the most part 

 being taken out, measured on a B.M. basis and included in the log returns. 

 (See Appendix No. 7, pages 34.) 



The more or less pessimistic lumber outlook that prevailed in the latter 

 part of 1921 and continued for a considerable part of 1922 has given way to an 

 optimistic one, which I consider will be amply reflected in the returns of the 

 coming year, the indications pointing in the direction of a much heavier logging 

 operation this coming winter. 



Pulpwood: The quantity of pulpwood cut subject to Crown dues totalled 

 some 289,113 cords, scarcely one-third of that covered in 1921, but this reduction 

 in cordage was not unexpected. In addition to this quantity 415.304 cords 

 were cut free of Crown Dues, this having been taken from patented lands or 

 those held by settlers with proper improvements. The peak market price of 

 pulpwood during the war and continuing some time thereafter gave an impetus 

 to large contracts extending over several seasons and abnormal cuts by indivi- 

 duals in the expectation that the market price would stand. A lowering of the 

 price with a large unsold stock on hand from 1920 and 1921 lessened activities 

 in pulpwood regions. 



There has been an improved tone in the pulp and paper industry and the 

 tendency is towards a steadier and upward market. 



By the end of the present year, or in the early weeks of the year 1923, 

 two new mills are expected to be in operation, one at Kenora, resulting from the 

 English River sale in 1920 and the other at Kapuskasing as a result of the arrange- 

 ment consummated with the Spruce Falls Company in 1920. 



The Provincial Paper Mills, Limited, by virtue of an agreement entered 

 into with the Government in pursuance of the sale of the Nipigon Timber 

 Limit in 1920, are operating their mill at Port Arthur. 



For ready reference and future use in comparisons I am furnishing in this 

 report, as promised in my last year's summary, a tabulated statement of all the 

 timber sales made throughout the year, giving such details as to area, price, 

 purchaser and other features that may be useful. (See Appendix No. 51.) 

 A compilation of timber sales or transactions is being prepared to cover a 

 reasonable period of the past, which shall serve as a permanent record of the 

 Department. 



Lands under License: The area covered by License at the end of the fiscal 

 year, 31st October, 1922, was 17,2893/^ square miles, subject to a ground rent 

 of $5.00 per square mile. This was less by 2,500 square miles than the year 

 1921. 



Summary of Timber Revenue. 



Bonus $1,446,351 31 



Timber Dues 2,315,668 17 



Ground Rent 103,179 09 



Transfer Fees 6,295 00 



Fire Protection 309,938 40 



$4,181,431 97 



