VI 



EEPORT OF THE Xo. 3 



The townships of Kendiy and Haggart, situated on the Transcontinental 

 Uailway thirty miles west of Cochrane, containing about 98,000 acres, were sold 

 at the price of $1 per acre cash to a company, subject to certain terms as to de- 

 velopment and settlement. A copy of the agreement with this company will be 

 found in appendix 'Ro. 34, page 82>, and will speak for itself. 



The Department, being of opinion that centres of industry affording markets 

 for natural products and creating employment for labour, are important aids in 

 the opening up and settlement of the new country, recommended to the Govern- 

 ment that these two townships should be sold to a company composed of energetic 

 and wealtliy men, but subject to conditions which, while conserving the interests ' 

 of the public, would become an industrial centre. The development already made 

 is large and important, and fully justifies the expectations formed as to the good 

 results which would be obtained by selling these townships. Over $60,000 has 

 been expended in the erection of buildings, opening up of roads, etc. Hotels have 

 been erected, and a large sawmill is in operation — the latter affording a supply of 

 merchantable lumber purchasable iby settlers at reasonable prices — the absence of 

 which convenience was one of the greatest drawbacks to the settlement of that 

 country; for, without lumber to erect buildings, progress is very glow, and people are 

 not able to provide homes for their families. 



Not only is there now a supply of lumber, but the company is purchasing pulp 

 wood and other kinds of timber from the settlers which enables them to stay on 

 their lands during the winter season instead of being obliged to seek employment 

 away from home. 



In further pursuance of the policy of encouraging industries in this immense 

 region, a pulp concession was laid out and tenders were called for. The successful 

 tenderers were Ogilvie and Anson, now the Abitibi Pulp and Paper Company, 

 Ijimited, and they are actively engaged in developing their water power, erecting 

 mills, clearing land, etc. When this industry is in complete running order 

 considerably over half a million dollars will have been spent, and at least 250 

 hands kept employed for ten months in the year. This will cause a large expendi- 

 ture for wages; will create markets for the natural products, and will enable the 

 settlers to dispose of tbeir spruce timber removed in clearing their land, at prices 

 which will afford them some profit for taking out their pulpwood. The lands 

 covered by this pulp concession are not withdrawn from sale or settle- 

 ment, so that there is no monopoly or tying up of land. This development is on 

 the Abitibi Eiver, at Iroquois Falls, and a branch of the Temiskaming & Nortliern 

 Ontario Eailway is being built from Iroquois Falls to the mills. The expectation 

 is that these two large industries will be powerful incentives to settlers 

 to take up land in that country, and the creation of other industries further west 

 along the Transcontinental will encourage people to come in until there is a con- 

 tinuous settlement all along the line. 



These developments, "of course, are in the great clay belt, which continues to 

 attract more attention than any other part of the Province, warranting the belief 

 that in the immediate future we shall see a great expansion in that region. It 

 is expected that by next fall the Algoraa Central Railway will be running as far 

 north as Hearst on the Transcontinental. Another railway from Bruce Mines is 

 also assured, which will strike the Transcontinental midway between Cochrane and 

 Hearst. The Canadian N^orthern, lying midway between the Transcontinental and 

 the Canadian Pacific Eailway, will be running within a short period. When the 



