216 REPORT OF THE No. 3 



fair competition. When the colonial timber trade was 'protected,' the 

 species of timber which Canada and New Brunswick only could supply in 

 abundance was cheap, and in proportion to its price was considered of little 

 value, but when left to fair competition, it has risen in the estimation of 

 the consumer to an extent equivalent to the loss sustained upon that species 

 of timber which had really been enhanced in value by the dilierential duty." 



The report refers to the statistics presented in the memorial of the 

 County of Carleton as evidencing the serious and permanent character of 

 the depression in the export of red pine, which are as follows : — 



Export. 



1844 4,699,149 



1845 5,182,320 



1846 5,206,040 



1847 4,466,520 



1848 4,365,440 



1849 4,070,600 



1850 3,586,844 



1851 3,482,400 8 



White versus Red. 



The report went on to point out that the then existing rates of duty 

 levied upon red and white pine, apparently established in 1829, has been 

 maintained through all the mutations of the trade since that period with- 

 out modification. Though no statistics were available to show the relative 

 value of red' pine at that period, yet at a much more recent date the average 

 market value was at least double the value of white pine and therefore justly 

 subject to the higher duty. It still bore a higher value in Quebec market 

 than white pine, but it also cost more to bring it to market, considering 

 which it was doubtful whether red pine bore even as high a value as white 

 when growing in its natural state. It was of much smaller average size and 

 consequently required a greater amount of labor to produce in a marketable 

 state an equal quantity of cubic feet. The red pine producing country lay 

 at a greater average distance from the market, increasing the cost of trans- 

 portation, and the average level of the red pine country was higher than 

 where the white pine was principally produced, consequently there were 

 greater obstacles and more expenses incurred for slides, dams and other 

 improvements to enable it to be floated. The heavier charges to which the 

 production of red pine was subject, were therefore regarded as fully equiv- 

 alent to any difference in the market price in its favor and reducing its value 

 as a standing timber to a par with the white pine. 



The Commissioner estimated the loss to the revenue for the current sea- 

 son by the proposed reduction at £4,166 13s., but stated that the amount 

 would be more than made up by the stricter enforcement of the law, and 

 the prevention of frauds by which timber had escaped the payment of duties 

 under the false pretence of being from private lands. The report concluded 

 with the recommendation that in consideration of existing circumstances of 

 the trade the prayer of the petitioners be granted and the duty on red pine 

 be reduced to one half-penny per cubic foot. An Order in Council to this 

 effect was accordingly issued on the 14th of September following. 



15a L. M. 



