164 COMMISSION OF CONSERVATION 



pose of manufacturing commercial alcohol for motive power. From 

 the potato we can also get meal, dextrine, glucose, pure albumen 

 and valuable cattle feed. When we consider the enormous yields of 

 potatoes which can be obtained under intensive culture in nearly all 

 the provinces, we have an indication of the important connection 

 between agriculture and what may prove to be one of the largest 

 of the new industries of the country. The matter has only been 

 incidentally referred to here, because of the opportunities which this 

 and other forms of industrial expansion will provide for develop- 

 ing new towns and generally decentralizing manufacturing industries. 

 The matter of the manufacture of alcohol from farm produce as a 

 means of helping agriculture and checking the excessive growth of 

 cities has been referred to in a memorandum prepared by the As- 

 sistant to Chairman of the Commission of Conservation. It was shown 

 in that memorandum that, as a result of the German policy, the con- 

 sumption of industrial alcohol rose from 18,976,500 gallons in 1895 

 to over 39,000,000 gallons in 1906. It is claimed that this laid the 

 foundation for the chemical and industrial supremacy of Germany 

 in many lines of manufacture and gave a great impetus to agriculture. 

 With regard to other new forms of industry in the western pro- 

 vinces, Dr. Andrews points out the need for textile fibres for binder 

 twine, sacking and linen paper. Attention has been drawn by Messrs. 

 Arthur Little & Co., on behalf of the Canadian Pacific Railway 

 Company, to the value of flax for making paper and fuel. 



THE PROMOTION OF INDUSTRIAL DECENTRALIZATION 



The tendency of manufacturers to erect factories and mills in 

 rural territory is not, however, confined to those who want to be close 

 to their raw material and in touch with water-powers. As stated 

 in Chapter II of this report, the decentralization of manufacturing 

 industries is taking place on a large scale around existing cities. This 

 movement requires to be stimulated and organized. Perhaps the 

 largest development of this kind which is taking place in the United 

 States and Canada is in connection with the great steel mills of the 

 United States Steel Corporation. When this large company contem- 

 plates the erection of new mills they usually acquire a site in rural 

 territory, within easy reach of some large centre. They not only 

 purchase land to build their mills but sufficient to erect a town for 

 the accommodation of their workers, as well as for the population 

 likely to be attracted to supply the social needs of the new town. 

 New towns have been created in this way by the Steel Corpora- 

 tion at Gary, Ind., and in the suburbs of Duluth, Minn. 



