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Tous les autres exemplaires originaux sont film6s en commenqant par la premiere page qui co:nporte une empreinte d'impression ou d'illustration et en terminant par la dernldre page qui comporte une telle empreinte. Un des symboles suivants apparaTtra sur la dernidre image de cheque microfiche, selon le cas: le syr^boie —►signifie "A SUIVRE", 9e symbole V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dtre filmds d dos taux de r6duction diffirents. Lorsque le document est trop grand pour dtre reproduit en un seul clich6, il eat fiimd d partir de i'angie sup6rieur gauche, de gauche d Jroite, et de haut en bas, en prenant le nombre d'images n6cessaire. Les diagrammes suivants iMustrent la m^^thode. 1 2 3 1 2 3 4 5 6 I With complimenis of- I nj Shall We Pliafee an Export Duty on Saw Logs and Pulpwood ? '^ '*«»*•■ raiv,^j-*,,l;,„ „.^^, ^M^Ml CTis: .^ -/ Mn^ m The EDITH and LORNE PIERCE COLLECTION of CANADI ANA ^eens University at Kingston V "BMBi^suiAa o s. Shall Preventive Measures be Adopted taq^t-ns^ ^&4»¥0^U the Undue Depletion of Canadian Forests? - 1 I J r" I O (V Deseronto, May 31st, 1897. Dear Sir, — The pine lumber trade of Canada, to a man, recog- nize the unfairness of any import duty beinir imposed by the Wash- ington jj^overnment upon Canadian sawed forest products entering the United States. 1st Because Canadians have accorded Americans' equal rights and privileges with themselves in the ownership and working of Crown timber licenses, and these Americans are aware of the great loss to Canada from manufacturing Ontario logs, etc., in the United States instead of Canar'a. 2nd. Because American labor, appliances and supplies are largely used in the Canadian woods and in transit, and the cost of taking out, delivering and sawing at Michigan mills, according to Mr. Carroll D. Wright's recent report to the U. S. Senate, is .some $1.62 per M. ft. less than the average cost to Canadian mill men The stumpage in Canada averages quite as high as in the United States. The mills of East Michigan, through their proximity to populous centres and extensive .sail blocks, find markets for small cuttings of lumber and mill waste, that give them from 40 to 60 cents per M. ft. of lumber more than is obtained by the average ofCanadian mills. The cost of transportation from the mills to the white pine mar- kets of the United States is also in favor of the mills of Ea.st Michigan, as compared to those of the Georgian Bay district. ' In Western Ontario alone there are many Americans who have acquired quite 4,300 square miles of Georgian Bay and North Shore timber limits, and yet notwithstanding they are well aware of the facts stated, fully n'r.e-tenths of them are advocates of a heavy duty on Canadian sav/ed lumber entering the markets of the United States. This duty, if imposed to the extent of $2.00 as proposed, added to the other advantages named, would then aggregate quite $4.00 per M. ft. B. M. in favor ofCanadian pine sawed in Michigan. The American holders of Canadian timber limits are aware that the sawmills of East Michigan must close down if deprived of logs from Canada, and that the whole stock of standing white pine trees in the United States even at the rate of the la.st season's cutting, according to recognized authorities, will last only from five to seven years. The American holders of standing white pine and other lumber- men in the United States, as plainly expressed by those of their num- ber who gave testimony before the Ways and Means Committee, ad- I of "vgt ma,;;i?a:cLd'?^ Vi;hta??;t t^*^ "/"'y' -" » >-'"- into Western Ontario and so H fn ^ .°*^ Canadian pine is shipped ci.an mills. Sawed luXr a mw 7.^'"' °," "^'^ '^' ^"^P"^ of ffnt should be free in bothToimtrL "^^^^•■•^'. ""der normal conditions the ^i^^ ^eavy expenditures in ways and streams, that the /reat n t..r;, a '"^P''^^''-'ments of high- made available to capital and Tabor foh^'"'''^""'' of Canada may bo ture mto products ready fo consmnotYon Th^°r^''-''°" ^'^ '"^""^a^'- comphshed, Canadians are confronted with tt r"^', P-'^^^'^^JIy ac- oneofour greatest -taoln^ "nironced with the fact that white pine States and probably three forths^7^ '" ^^e UnTed Unhke wool, wheat or barlev °^i"^"^^^^ '^ P'"^ h^s been cut. neveryet been practicaiV e^u ~d rs^?"^\?f^'^' pine. which has by the back door, as it were to sum.Ivin^?^H ''''''' out of the country of East Michigan, and Canadlm rr&Vxdudo//'r'"^''^ '''l^ '^'"^ 7he ^o""^ ' r '"^^- '''''' Arnerican t'Sv ^'^^ '''"" ^"^ ^^are in ^eate^:^ iJ^^;:;:^^^^ very .g.at. ..r logs and timber to the Unfted Sta es for T %" "''"'■ ^"^ '^'^'''' the become irreparable "" ^°' manufacture, the- loss would ment^l&rrre'?>'„^e^^^^^^ the Washington govern- ernment. on logs and pulpwood the^^ "-M k'^'I^ P^,^"^^' ^> '^^"- k^ov- its ever being removed! OnX othe? 1 and ?f h"' ''"'" '''^^'''hood of the Americans can now be averted no ''"""^'.'^ fhc proposed duty by pose it will ever be successfully made fof ""'' ""^'"P^ ^° '-^^^'^ i"^" men/^?^el;^r^,^?';:^;X ;^e^-; Mr. ^--" ^- Wright's state- needs of the salt manufacturers^r^^^^^^ '^" 'r ^^""tries, the f^ates, the increasing requrrmentsorth.?^^''" ^']^ °^ ^^^" treeless United States, the many industn-os?ln • ^ ^T- ^""^ P"'P '-^'"^ of the ing advocacy of a free?trade alfnrH .1? J"^^ '^'^'^^ P'"^ ^"^ the grow- ing untaxed.^ we can ow r'eS thecal""' f ''"''""^'^ ^^ '''' ^°"tinu- The issue is an important onTaffectin^ "' ^''^P^'"' application. 1. Canadian manufacturers of lumber' 2. rrovincial revenues ' * lumber, who erects milk r^l.-'il""'':.!'"^ .™*^ '""bei and of sawed choicest and best -•'Hout-pro;^;-}^^^^^^^^ , therefrom. 2. The manufacturer who, to prolong his timber supply, estab- lishes mdustries dealing with coarse timber and sawmill waste, provid- ing for close and fine manipulation of forest products, a method of working which prolongs the supply, with a much greater yield f)f tim- ber per acre, increased employment of labor, and with minimum risk from forest fires. The square and board timber manufacturers take out the choicest of the trees with much waste of sides, top and butt. Their investment in plant and outfit is comparati\-ely small ; their output is marketed in Great Britain and is only affected by an American duty on Canadian lumber in proportion to the influence that duty exerts upon the timber or lumber output for the British markets. Will not the proposed $2.03 duty if imposed .stimulate such out" put, and very soon over-supply that market ? On timber limits worked chiefly for the Briti.sh markets, whether taking the form of timber or sawed lumber, ihere are necessarily left on the {Tround many parts of trees felled and a large number of coarse trees standing, which in a little time are generally destroyed by fire Such operators for the Briti.sh markets, or for the Amencan markets when protected by a $2.00 duty, who have made no provision for utiliz- ing the waste and coarse products, have no recourse but to carr>' on their operations in this wasceful manner, subjecting the Crown lands to increa.scd danger from fires or oompQllii ' u; Limn to close down. On the other hand, timber limits worked by lumbermen who believe it practicable to profitably utilize the poorer grades of timber along with the good, have established industries calculated to convert rough, coanse and waste forest products into commodities ready for the consumer, affordi.ng e.uployment to more skilled labor, a finer cla.ss of machinery, etc. It is pretty generally acknowledged that agriculture can only con- tinue profitable by manufacturing the raw products of the soil into food and other forms ready for consumption, .Our forests reauirc the same manipulation by manufacturers to secure the best .esulis. Every regard must be paid to economical methods of working to guard against forest fires, to con.serve and preserve the timber supply and warrant the investments in industrial works necessary to such a policy. To this end such lumbermen have labored, devoting time, capital and energies without .stint, and the object is worthy the effort.' Bear in mind that such lumbermen are largely working in coarse waste timber, the choice pine being in. limited quantities. It would indeed be a serious matter if the utilization of coarse and waste timber be disregarded and the manufacture thereof be lo.st to Canada. It would help to keep us producers of a raw material which Americans insuflficiently possess, and thus contribute to their industrial development instead of our own. It is hardly necessary to legislate for the strong and well of mankind, or for the comparatively limited quan- tities of choice pine, other than to restrain against waste : protective • cgislat.on IS needed for the poor and the u-e-ik- nf I, the commo,, and the coarse trees t o f r/. ^ "'^'^"'"'"^'t;' 'is it is for •nuch and which even at this late late can hi ''''"^ ^"' >'^^^ ^^^'^ made to co.itribute ^^rcatly to evory indust id .^.'r'''''"' measures, be ,, The construction of our <^rcat hi "ho^n , P''"k'rcss.vc interest, all classes have contribute •^n SS r^^' T'^ «Hil~to which youn^. ,nen for the in.portan't itSs ' miM ?^ ''"["'"^^ ''' ^' ""'" our cou.itry ; in fact, cvcrythin-r Jc ^s Vmo i ,''^''' ^'^'''" "^'^"Py '" plish. have been predicated i on tZ'.f '\t'^^''^'^^ ^'^^'^ ^o"Rht to accom- we possess, and to whXen h du'tri d^'^^^^^ ^'^^^^-^^ would .trreativ contribute '"'^'"■^^'^'''' enterprises based on our forests soon^?:^. E ;:^,:|;- ^^'- -tur^ ^^^fP^V^u^ de.and wil, duty; true' but hardly before ]^^^^^^^^^ ^^^ Proposed $2.00 worknK>n discharged. "^peraTo "'" ." d^ ZJ h'' "*'^''^'^' °'" '-^''-^• lane s of that .section pass into the hnnri r t ]^ '•emainui- timber M.chi^^ran mills, while' VVes e ( ntaro t "" Americans to supply ..^.dustnes that are. and ^l^^ufd^ ^J^!]- --[-^j;^^ ^n..!:i:^^::t -i^^oiln^.! t'r i^;lr^;?n'^^' ^" - ^-^^^^ American tenants of Canadim fnrnlf ^ " "-"'^7'' interest, and the for free lumber as tire^co W. t p^^^^^^^^^^^ '--'-' "ot aided w.thout an effort to influence them ^nTrfi r ^""^l'^ '''^''y ^'^^" timber '" their markets as faV-orabk^rSne u as thov ^'^ I'''''' '^"-^^'^'^^-^ Is Canada not at least en S; . ^ ^''"''''•' ^" »^' ? operation a,.ainst what o t A^e^il ^^'^T^ '^"^^:;^^^^ '^^ ^''^-> <^o- and Means Clommittee declared o be ^h.-K^""'""'" ^'^'^""^^ ^he Ways out of Canadian lumber from the^r m -^ ^^ ^'''' "^""^"'>'. the shutting Canada believe .should be condi ion-.M ~J' •'^"'■•'"" ^^'^'^^'^ '"^.ly in Canadian industries nc) cUb ' ' I • ^'^ ';^t'^"i'"k^ Canadian lo-s for i" Ontario any n.o;e imbe^lnn ul b^ ''^^'T'f ""^ ^"-'''^>' -^^^"^"1' k^urate and n.amtain the mdustr al inte c-s^^^ T"^"^ '" encourage, inau" There are but few w Ho nl ''^°"' °^^'" P^-^P'^^ the L'niteci States, bj i} c , n not''h^"K^ ■''^ ", '"'■^^"- ^"•^^'^-^.^-' with C:anaclian ma,u,facturer.s tl rowir . CanacH^n" ^""''"^^'^ bankmpf... ment. was< ing our fores sW.m,...'! ^^'"'■'^^"^'" out of r^mpioyl closing the door as i^we^e to pScal ^ ''. '"""'"^^'"' '•^'^'^•""-' ^^^d ofour seats of learningTnd to sk' '1 l.U^'^T''T ■''[ ^'^^^ ^^'"aduates bought. ^ ""'"cd labor, it will indeed be dearly the t:^, ^'^^Z^ ^" '''' ^r «^^--^^-" 'ogs to lessen the stumpage Svel^es^of t£ ZT^^K^'^r ^^'^ ^ ^''^e would no doubt quite repay the province or' ^h '^' '^'''''''^' ^'^ timber ir 't resulted in the re-transfer of i^illsf^nmF ^^l^.^e'Tiporary lo.ss, and would benefit the vvage-eLerr f^^^^^^ capitalists -it wnnlH i.^Jtr 'h^ . ^/I^'f ''' railways, merchants ;, ,,} are founded upon^oVesfsunnl^Lli'vJouH'"- "^ ^''^^■'* '"^"•^^'•'^^^ ^"hat jpply conduce to the utilization of 1 5 coarse, and at present, unmerchantable timber and miirwaste and thus' enlarge and prolong employment, use of capital and Crown revenues" and ensure beneficial climatic effects. The government may feel that the lumbermen should be a uiut regardmg the application of an export duty. Lumbermen of the Georgian Bay district have b/ resolutions unammously declared an export duty should be applier' to the extent of the American duty, Ottawa lumbermen have pronounced strongly against the $2 00 duty and retaliator)' clause proposed in the Dingley Bill, and the lum- ber trade arc of one mind as to its unfairness and the justice of an ex- port duty to neutralize the discrimination threatened, but I respect- fully question the wisdom of pressing the lumbermen for any further expression, for the business depression of the past two years would naturally lead many of them to decide, against their .sen.se of fairness and ultimate profit, m favcr of cutting from their forests only such tim- ber as the markets under such unfortunate conditions would profitably receive. ^ This, as before explained, would mean a woeful waste and sacri- fice of timber, capital, future industrial development and provincial income. Thus Canadian lumbermen who . utilize all forest products, the coars. . through who.se system of operations a petuation of our timber supply, ate m, others in the trade, but not more so than thv. The government may consi.stently question a..y objections to an export duty, which may be made by banks having Michigan clients or by Canadian lumbermen who, without regard to the common or coarse fmber, cut out the finest and best, or who are profited bv lo? cxportations. ^ s All licentiates are tenants of the Crown, that they may obtain the cream of the timber, they should not be privileged to cut indiscrimin- ately over virgin forests, destroying materially the value of the re- maining lower grades which greatly predominate, and thereby invite destruction by fire of what, under reasonable manufacturing facilities IS worth far more to the country th.m has been returned for the be.st taken. The government, not the lumbermen, are the trustees of the public domairiK'. Some large operators who oppose an export duty would, I believe advocate it, were reasonable but rigid regulations applied to protect the public domain ; such a policy would advantage every interest by leading to prolonged operations and impart a stable value to timber upon which industrial enterprises would be established. Manufacturing plants founded on the Torests, sister industries to VT'ood-Vvorking estabiishmcnts, which our timber districts are capable of sustaining to a very large extent, with the home markets thereby created, would be worth infinitely more to banks, railways farmers hiished indu.stries to ••■cponderating, and hope for the per- / threatened than interests. timber or sawing into I-^ 'nTh ''^.'"^^'"g '"to ii|uare or boLrri 'vhich l"mbir';n^;rCw''h J^f ^,-<-- 'h-^ '""cased dangers fr„„ fi„. has been cut, and more serilu stiN e'^"' .'''^»'™y<-'d more limber than , No system of operations cnfiMK '•"'■'oyed the young trees and future timber -P^r.hln t t':/';hTcSrcr''^'-V "->--' There'ir'e;to„7d;:teSs1n"'lr '" ^"'^^^^^'^^"^..o.. .. |port^!l:^X"t--^etb^^^^ They l-rnow that spruce nurn k in „ "'^*'' "'^ pulpwood in Can ri^ retain and sooner Sr later co'^i^rdt?™T"'^ ''"'?"'"'' »''d tha they .an Unadian territory by Canac^rm',^i:i^^dtir°h;'' H.^ Sta^es'^from ^ lumb^ T""^ °l Q"«'«<^ and the Kaste n P "'"'""' "'°^l<'ne... en3t of ,^''°" i^^ '"P^ and butts of 'n^ f™""<:'^» yields excellent GreS^itai:: •"'"'■ '"."-S^ quantitie o p'uTp '°f'' f "'^"/^ from the "rcat t5ritain is entering our marl,„t r "^ ^ ,^" b*^ Profitab v made Sweden and Norway being on the wLr ""^ P^'^' ">« suppVfrom fully consider the situation and pro^de for ?h"\ ^"'''^^"'en should care and prosperity which the conversion of . "'dustrial devoloi.ment fac.ur« can alone accomphsh °' °"'' ''''* "'^''-''-^k by 'manu cu,tuVe".^a?e";:f ■;;;--i:f ■';,,- anding -o-,d only to those of a^ri exert and which very largely I'^en, tSe resS;'"%'"*?,"™='= °"^ f°"?»s •.L ' "f Canadian lumber mark^f „ "''.results of soil culture s*n'™, K*'°°'^'""'^a" '-'"Port dutVrlT' ;]"?"• "'""'^' ^"'litions soon become glutted and unprofifble '*"* '"'"''' P^°ducts, would ■^t tile same tinir* f-hr. a p"^£^;.°r:^™ir„s^^^^^^^^^^^^^ nearly what it^osts ^orw^^E ^VVem'?^ ''r'"^^" -'1!'. worth An export log duty should in J^r-™ ''°'" 'he North Shirr rate per thousand fee as th! A • '^""^^^- not only be at the ^';„o C-"b-'^. >'!•.»' an aJfdittnatatr'';^"!.™??- on^Can^diin^'^sS ^b.,,ea u, sawing each 'housand' fe'et'of 'luS t"f tLf^a .f - bank ac- and the the for- 3r board panying ts which rom fire er than CCS. present lore so. (jnitcd g pine. inir cx- >assive. cc tim- idcr an anada. -y •-■»" yj s from * en. :e!lent in the made. from care- )ment nanu- agri- )rests :ions, 'ould /crn- 'f an nits, isely orth amc ived that tOf the log not computed In the mca.^uremcnf for luinbrtr, and this extra export duty should be at an equivalent rate to whai the Americans impost on corresponding ,L,'oods from Canada entering their markets, hven With such an export rate the Can?.dian minufacturers would be handicapped, at least. $r.62 per thousand as per Mr. Carroll D. Wright's report before referred to. Should the exportation of logs to the United states thereby be stopped, which I doubt, it would de[)rivc the mills of East Michigan of some 2CO to 300 million feet of lumber per year, for there is n<) place other than Onta.io from which to drav^^ their supply, and the lessening of that supply by that quantity would fo that extent lessen competi- tion and inure to the advantage of the Canadian output. Ft would be far better that th" American mills should .stand closed, their workmen remain idle and the traffic of their railways be lessened' than that corresponding interests of Canada should so suffer becau.s'e of their unfair discrimination. If our government impose an export duty upori ' ^s and pulp- wood, and it should certainly not exempt pulpwood, and 'if tne retalia- tory rlau.se of the Dingley Bill be applied, the United States market would for a time be practically closed to the bulk of Canadian lumber ; but Canadian made pulp would be in rapidly growing demand because the far distant pulp timber of the P-cific or Southern Stater, would not be available, and while some Canadian logs would continue to go across to Michigan for manufacture, even under a $2.00 export duty, the value of Canadian timber becoming even more apparent would soon influence to a more profitable manipulation in Canada by manufactures than ever before. Canada's relations to the United States are and have been eminent- ly reasonable and fair, and we arc not properly chargeable with un- neighborly acts. We cannot coerce them— we could easily irritate and antagonize thom, and the majority of their people certainly bear no iil-will to Canada, but great prudence is needed in even the initiatory steps to an export duty. I believe that an early and firm declaration by our government regarding an export duty, couched in moderate terms, and in the light of forestry truths being broMght out at Washington, will turn a number of senators to free lumber. It will bring to our aid and make valuable allies of the owners of sawmiis and salt-blocks of Eastern Michigan and the American licens"-s of Canadian cimber limits : the champions of advanced forestry prm- ciples woulr: deprecate the encouragement to the more rapid depletion of their forests which the prohibition of Canadian lumber would cause. The paper and pulp mills of the northern frontier, of v/hich, in New York .state alone there are, I am informed, I2j in operation, manufneturing 1,400 tons of paper per day and employing I5,cxx) workmen; The prominent men securing interests in Canadian spruce lands; » The great newsp- pcrs that use so largely paper made from pulp; The users of pine lumber in New York, New England and the treeless states of both east and west; The transportation interests that derive income from Canadian lumber carriage, making cjuite 100,000 carloads yearly; The advocates of a freer exchange and those who recognize sawed forest products and pulp as rav/ material : All these interests and inore would co-operate in the effort for free lumber and pulp In view of existing circumstances it is therefore urged that an an- nouncement be made to parliament by the Prime Minister that the government possess the power, by order-in-council, to apply an export duty on logs, pulpwood and other forest products going out of Canada and that it be done without debate. It is suggested that this announcement be coupled with the state- ment that the government could not consistently apply an export duty on logs taken out the past winter and now in process of delivery to the United States, but that on next winter's output with so ample a notice no injustice would thereby be done. This would have the effect of leading many people in the United States to favorably compare their proposed inconsiderate legislation with the conciliatory moderation of the Canadian Government. It would prevent the application of their retaliatory clause at least until 1898, the v,.:rliest time our export duty would come into effect, and would, I believe, in the meantime, with the present Senate at Washington, lead t*^ lumber and pulp being made and continued free of duty. The freedom of Canals from Lake Erie to Montrc l1 is a step which ap{)ears to me our government may now take. It would indicate the desire of Canadians for the continued free exchange of forest and other natural products of the two countries. It would benefit the great grain producing states of the west who.sc products pass through the river and lake ports of New York and the New England States, and the railways and canals of these Eastern States would in consequence enjoy greatly increased traffic. These states would thereby become valuable allies of Canada in every effort for honorable and equitable exchange. The advantage to Canada of the traffic that would be drawn from American channels to that route would, of itself, be very profitable. New York is expending many millions in the rapid enlargement of the Erie Canal which, once completed, will add to the difficulty of drawing traffic to the St. Lawrence route. If New York can afford -he expenditure and g've free canals, Canada can ill afford to do otherwise. It would add immensely to the number of lake and river boats, elevators and transfers that would be profitably engaged. It would cheapen ocean tonnage on the great staples of Canada by the greater number of ocean ships to and from Canadian ports. It would, in the eastern provinces, enlarge the output of coal for use of the additional steamers, etc., engaged in the traffic of the route, it would not only work no injury but confer a benefit upon our railways. It would settle the vexed transit in bond question and afford great help to the friendly settlement of every issue. It would make us many friends in the United States, and help to put us in position, as a people, to enjoy the improvement in business that is generally believed will be realized once the tariff question at Washington is disposed of. The serious conseq uences threatening the lumber busines^l under the proposed Dingley Bill, and my desire that the Industrial interests of Canada may be encouraged and developed along safe and progressive lines, is my reason for urging the adoption of measures calculated to make unnecessary any application of an export duty. Prevention is better than cure bincc writing the above, I have read Mr, Charlton's speech in Parliament in reference to an export duty on logs and pulp wood, and ob.serve that he admits the injury to Canada from the manufacture of Canadian logs and pulp wood in the United States, and that he is only deterred from favoring the immediate irfiposition of such a duty because it might provoke retaliatory action by the Government of the United States. On the contrary, I have believed that were our own Government to proceed on the lines which I have suggested, it would lessen, if not quite eliminate, the proposed duty from the Dingley Bill, would tend to their substitution of a conciliatory for a retaliatory policy, or influence to the early attainment by subsequent negotiations of free lumber for free logs. In the meantime, or until 1898, the earliest period that our log export duty under such a considerate course could by Order-in- Council come into effect, such Canadian sawed lumber as would be sent to the American market would be subject to the rate of duty that the Washington Government may impose, and that without the re- taliatory addition, I believe the application of an export duty between the two countries .should be the la.st resort, -and that such preventive measures as tho.sc proposed, would soon lead to the removal of any necessity therefor — I mean the necessity as viewed by probably a majority of our people, but there are many who, with excellent reason, go further, and believe we have no more pine or spruce standing in Canada than is required for those forest industries and others that go hand in hand therewith, and the jiroducts of which for export are in growing demand. His comparison of the value of exports of logs from Canada to the United States, with that of the imports of logs therefrom is, to my mind, reasonable proof that in both white pine and spruce the United States arc looking more and more to Canada for their supply 10 Mr. Charlton places the value of the exports of logs from Canada to the United States, from 1890 to 1896, at $10,059,000, and the imports of logs during the same period at $6,361,000, making a total excess of log exports in that period from Canada of $3,698,000 ; but in point of fact, his import figures include values of logs which are only nominally impcted, and deducting these it will be found that the imports of logs for Canadian consumption, taking his figures as correct, was but $2,248,000, making the actual excess of log exports for that period about $7,800,000. I reduce Mr. Charlton's log imports by those to New Brunswick that are taken out in Northern Maine — floated by the St. John River to Fredericton and St. John, where they are sawed and the lumber shipped back to the United States or to Great Britain. The owners of the timber tracts in Northern Maine have had no other outlet, and I understand railways arc now contemplated, or under construction, from Bangor and other centres, which will soon transfer the manu- facture to points within their own borders. The United States authorities treat these logs and their products as home production. To add the imports and exports previous to 1890 lessens the difference — for I have no doubt the records will pretty clearly show that the white pine and spruce pulp manufacturers of the Norlhern United States commenced to look to Canada for their raw aiaterial, only some seven or eight years ago, which but confirms the belief that they will continue to want our timber in growing quantities. They have quickly prohibited other raw products of Canada the moment they could do without them, and they would as readily do so with saw- logs and spruce were they not necessary co them. It is quite within their province to do so, and it is equally our right to stipulate, that if they shut out the sawed lumber and pulp of Canada, both raw materials to them, that they invite an export duty on logs and pulpwood ecjuivalent to the extent of their import duty on the same products, the reasonableness of which none can deny. The discrimination against Canadian sawed lumber and pulp by the contemplated import duties under the Dingley Bill, appears un- warranted and unfair from every standpoint. Canadian lumbermen pretty well know the value of their forests, for the highest prices paid at: the sale of timber limits referred to by Mr. Charlton were by Canadian operators, to whom is due every hon- orable effort to remove the discrimination under the Dingley Bill which threatens their investments by forcing them to manufacture in the States or cut their limits less closely than, without the threatened discrimination, would be done. Ontario gained in revenue from the timber sale referred to, but lost indirectly in the diminution of industrial establishments, which would have been of more permanent benefit. These desirable results a stable forest policy of the character outlined would quickly bring about. I am quite convinced the proposed $2.00 duty on Canadian lumber without a corresponding export duty on logs means the closing of the i most complete milling' establishments of the Georgian Bay district, and the throwing of the timber lands of Ontario at every sale into the hands of Michigan manufacturers. In this connection I may state that I am empowered by the Georgian Bay Lumber Company to state that, if the duty is imposed, they will be compelled to remove their mills to Michigan, as otherwise they will not be able to compete with American manufacturers In reference to the small annual increase in the value of Canadian lumber sent to the United States, this is largely attributed to the transportation of logs to the Michigan mills, and the depressed condi- tion of the American markets during the last four years. It will be remembered also that our exports of sawed lumber to England have steadily increased. Had these logs been left standing the lumbermen 3f Canada would have realized larger values for the lumber which they exported, for the logs towed across the lakes have assisted to lower prices in Michigan. As to an export duty on pulpwood, which is advocated by many, It IS evident that the great pulp mills of the Eastern States are yearly becoming more dependent on the supply of wood from Canada. The cost of transportation would.of itself prevent the.se grea^ mills from procuring their .supplies from* the Southern States* and Oregon. Then it must be remembered that already owners of paper mills in Great Britain, finding that the supply from Norway and Sweden js being lessened, are anticipating this fact by arranging to secure their pulp from Canada. The manufacture of wood pulp in Canada should be encouraged as by .so doing it will become one of the greatest industries in the country. Were it understood that an export duty would be placed on pulpwood, the pulp manufacturers of the Northern States would most certainly exert a great influence against the wood clauses of the Dingley Bill. The sale of pulpwood by farmers has no doubt been more or less beneficial, as Mr. Charlton states, but they would be vastly more bene- fitted by the industrial settlements and home markets which every puli) and .saw mill creates. The effort to be put forth to-day is not to en- courage ^'.\c sending of the raw material out of the country in log or wood form, but to restrain and conserve our greatly reduced supply in the manner outlined. Without this policy it is quite practicable to deplete our forests so rapidly that the present favorable opportunity to inaugurate the method should be improved or the need thereof will have forever pas.scd. Facts are not wanting to prove that :juch a course would greatly augment Canadian indu.stries. If the Provincial Governments fear the shrinkage of Crown dues for timber cut by so protecting the forest industries of Canada will they not be amply justified in making a bond issue to make good any diminution that may exist ? Not a dollar of the people's money need be taken. All would be quickly forthcoming from Britain for so profitable a purpose and the I ■ rrs-vr^. --'TV-TV -^■?v?vmiim 12 yearly growth of the timber would fully pay the interest, to say nothing about the increasing value of the timber. As I have already endeavored to point out, I cannot agree with Mr. Charlton's statement that the export of logs from the north shore of I^kc Huron and the Georgian liay has been beneficial. Mills have been closed down, and capital lost by such a course. The tug boats, chains and ivorkmcn employed in the transportation of the logs from Canada are all American. The logs have been manufactured into lumber at $1.62 per M. less than in Canada. I am not aware of one single industry left to mark the track along which so much fine timber has been conveyed to the United States. The correct system would be, to offer no Crown lands for sale until there is either in Canada or for export a profitable market for the coarse and waste woods which sooner or later will be required by our own people. The British markets are open to vast quantities of wood goods. Canadians will not be slow to undertake the manufacture and supply, and there arc plenty of energetic Americans who will promptly join in the v/ork should our people undertake to preserve our forests for industries on Canadian .soil. It is not profitable to Canada— in fact, it is unfair to tho.se who come after us, to permit, much less to encourage, the taking out of the better grades of timber, except in accordance with correct forestry principles, until thei-c is evidence of a sufficient demand for the common and wa.ste to utilize it as the better is taken out. While I differ very greatly from Mr. Charlton'.s estimate of the cjuantity of Ontario'.s standing pine, I would, indeed, be pleased to find hnn correct, and it might be advisable to consider the appointment of a commission to bring out the facts as to the quantity, the character of our exports and imports of logs and timber, as well as of sawed and manufactured lumber. Statistics of this character bearing upon a sub ject which is of more than national interest would be invaluable for determining the future policy of the Government concerning many industries which arc calculated to add to the wealth and importance of Canada. I am cjuite well aware that the Crown lands are under the control of the provinces, and I appreciate all efforts they are making to protect against foreirt fires, wa.ste, etc., but the application of more advanced forestry principles can now. during this period of depression in the trade, be best inaugurated by the Dominion government in the present i.ssue. In fact without this co-operation of the Domim'on government the efforts of the provinces to give effect to measures having to do with the development of industries founded on .soil, forest or stream becomes m.o.st difficult. I quite recognize the benefii., that the lumber business of C.an.ada has contributed to the country's progress, and I also foresee the diffi- culties of applying rigid rules favoring the conversion of our forest products by manufacture into commodities to obtain maximum results, ^3 ril^f"l "^"'^^ convinced that it is very greatly in the interests of wZufdT;"^r^''°P'''^,^P°^'^^ ^"^ enter ^upon .': Tppl eft on without delay. If provincial income from stumpage should thereby out .nd? """^ ^/ "''"7^ '"^^^ ^^^•">' thousand feet of lumber taken slfll^^ I I '^^""^^^^"'•fd in Canada means the employmeiTof more skilled labor, the erection of more durable and diversifieTlumber and wood-working establishments which, while emSoA'hirmorcaDitaf 1 gtTewis'e'Sn the "^^^"t ^^^^^^'^"^ base7o^n"gur7o?ests,Ta The exDor o^.^. fr^^ generation be practically exhausted. 1 ne export of logs from Canada to the United States f In 1890 amounted to .$ 68, 3^^ " 1892 " '< 722,845 '■ 1893 .< « 1,112,687 " 1804 " « 1,508,116 " 1895 .« « 2,749,370 " 1896 " " 2,227,819 The exports of pulpwood from Canada to the United States • In 1890 amounted to