282 REPORT OF THE No. 3 



it may not have been as thoroughly modern in its form as it might have been, 

 it has always been done with scrupulous care. During the past year the system 

 has been much improved by the introduction of more modern methods. Mr. 

 Grigg's testimony in this connection to the effect that with proper reorganization 

 the Department might become "a handsome money-maker," might, I fear, con- 

 vey the impression that the bookkeeping methods were such as to cause the 

 Province a monetary loss. While this implication might not have been intended, 

 it may be reassuring to some people to know that not a penny of the Province's 

 money has been lost in this way. A careful checking of the system now in use 

 leaves me with but a single suggestion, namely, that the Audit Department 

 should widen its sphere of activity to include an annual audit of the departmental 

 records. 



Exception has been taken to the failure of the Department to promptly 

 collect all accounts immediately when due. I am not in a position to say whether 

 there has or has not been undue leniency on the part of the Department regard- 

 ing overdue accounts, but every business man must appreciate that there are 

 many times when a creditor's best interest is served by reasonable leniency in 

 regard to the collection of secured debts. And I can easily imagine that there 

 have been times during the past few years of severe business depression, when 

 the public interest could have been very badly served by the Department seiz- 

 ing and selling the lumber of the delinquent companies, which, of course, they 

 have a perfect legal right to do. This could only have the effect of making a 

 bad situation very much worse. In extending reasonable leniency in the case 

 of secured overdue accounts, the Department is simply following the best busi- 

 ness practice. 



The Timber Commission has pointed out that the rate of interest charged 

 on overdue accounts, namely, six per cent, simple interest, is unfair to the Prov- 

 ince, and in effect makes the Province to some extent a banker to the lumber- 

 man. This point is well taken. I would suggest that the interest rate be made 

 to conform to current banking usage, both as regards rate and the compound- 

 ing of accumulated interest, plus perhaps an additional one per cent, in the rate. 



(10) Forest Reserves. 



Several large areas of provincial forest lands have been set apart as Forest 

 Reserves. The statute provides that timber may not be cut on those reserves 

 areas except when mature or when killed by fire. I submit that this leaves them 

 on a par with all other forest lands, except that such reserved lands may not be 

 cut over for the purpose of opening up for agricultural settlement. 



It will be the duty of the forest administration to prevent the cutting of 

 timber on non-agricultural lands, except as and when it is silviculturally mature 

 or has accidentally been killed by fire, just as it will be their duty to see that all 

 silviculturally mature timber is sold and cut from time to time as the best 

 interests of the forest and the markets for wood products require. 



Respectfully submitted, 



Yours very truly, 



(Sgd.) JuDSON F. Clark. 



