The Canadian Co-operative Wool Growers, Limited held their 9th Annual Meeting in Lethbridge, Alta., on Apr. 1st, 1927, thus affording sheep ranchers of Southern Alberta an opportunity to attend. It was the largest meeting in the history of the organization. The financial statement showed a net profit for the year of $10,724, and a dividend of 8 per cent. was approved. Reports from directors in the various provinces showed conditions to be pretty generally satisfactory, with an increasing interest in producing better wool, but Manitoba was the only Province reporting any large increase in sheep population. Col. Robert McEwen (Ontario) was re-elected President; C. Jensen (Alberta), 1st Vice-President; and S. A. Logan (Nova Scotia), 2nd Vice-President. G. E. O'Brien was General Manager and Treasurer; W. H. J. Tisdale, Assistant General Manager; and G. O'Neil, Secretary.

Forest
Resources
and Forest
Products
Industries

The extent of Canada's forest resources, while admittedly great, was not definitely known in 1926-27. The latest estimate published by the Forest Service, Department of the Interior, was for 1924 and showed an area covered by existing forests of approximately 1,227,000 square miles, some of which was agricultural land. Less than 40 per cent. of this carried merchantable timber (6 inches in diameter) and only about 20 per cent. carried saw timber (10 inches in diameter). The balance of the forested area carried young stands which had come up after fire or cutting. The estimated stand of saw material was 482,035,500 M.B.F., of which 439,858,000 was softwood and 42,177,500 hardwood, and of pulpwood, cordwood, ties, posts, poles, etc., 1,279,453 M. cords, a grand total of 246,291,841 M. cu. ft. It was explained, however, that the estimates, both for area and quantity were based on data insufficient for accuracy and that they must be accepted as being subject to revision as more complete information became available. About 83,643 square miles of forest lands were set aside in forest reserves or parks or otherwise permanently dedicated to forest production by the Dominion and the Provinces.

A bulletin issued by the Forest Products Branch of the Dominion Bureau of Statistics in May, 1927, furnished valuable information as to the extent of Canada's primary forest production in 1925. It was estimated that total production in that year involved the cutting of 2,839,138,401 cubic feet of standing timber. The total estimated value of the production was $209,276,561, which compared with $213,146,710 in 1924. As in previous years the list was headed by logs and bolts for domestic manufacture, these constituting the raw material of the saw-milling and allied industries. Their value exceeded $71,000,000. Next in importance was pulpwood, with a value exceeding $62,000,000. Firewood with a value of over $39,000,000, ranked third and railway ties with a value of nearly $14,500,000, fourth. The extent to which forests were being depleted annually was also estimated by the Bureau of Statistics and, including consumption for use, and destruction by fire, insects, fungi, windfall and other agencies, total depletion was placed at over five billion cubic feet per annum. The Province of Quebec headed the list for forest production, both for value of material produced

and its equivalent in standing timber. Ontario stood second in point of total production, British Columbia third and New Brunswick fourth..

The report of the National Research Council for 1925-26, which was tabled in the House of Commons on Mar. 4, 1927, called special attention to the forestry problem and outlined the work which had been carried on in New Brunswick in co-operation with the Forestry Branch of the Department of the Interior and the Department of Lands and Mines of New Brunswick. For the third year in succession considerable experimental seeding had been done and in some cases with marked success. As trees normally required from 50 to 100 years to grow to merchantable size, it was obvious, stated the Report, that in the short space of 3 years, "one cannot come to any definite conclusions as to the success of the work." It was important, however, "that re-seeding and other methods of reforestation should be further developed until the best means of providing for the continued prosperity of the industries dependent upon Canada's forests can be definitely determined." In Ontario the Legislature at its 1927 Session passed a measure providing for the appointment of an Advisory Forestry Board of five members to make recommendations to the Government with a view to the conservation and perpetuation of the timber resources of the Province. On June 17, 1927, an Order-inCouncil was passed creating the Board, which was composed of Dr. C. D. Howe, Dean of the Faculty of Forestry, University of Toronto; E. J. Zavitz, Deputy Minister of Forestry for Ontario; J. A. Gillies, Braeside, representing the Canadian Lumbermen's Association; B. E. Avery, Chief Forester, Spanish River Pulp & Paper Co., and H. S. Schanche, Chief Forester, Abitibi Power & Paper Co. At an organization meeting on June 28, Dr. Howe was chosen as Chairman and C. R. Mills, Assistant Forester, Department of Forestry, was appointed Secretary.

The forest fire situation in Canada during 1926 was again a very serious one. According to figures prepared in the Forest Service of the Department of the Interior, there were 5,529 forest fires which burned over a total area of 1,824,015 acres and occasioned a loss of $7,468,343. The area of merchantable timber burned was 574,716 acres. 2,347,614 M.B.F. of timber were destroyed, the estimated stumpage value of which was $4,208,456. 624,801 acres of young growth were burned over, doing damage to the extent of $1,244,266. The balance was made up of 239,334 acres of cut-over area and 477,159 acres of non-forested area. The actual cost of fire-fighting was placed at $866,286. There were marked differences in conditions between the East and the West. In Eastern Canada, both Spring and Autumn were cool and rainy, so that new low records for fire losses were established. A midsummer period of fire hazard occurred in the East generally but it passed without any great damage being done. In Western Canada, on the other hand, danger conditions continued generally throughout the season. The Prairie Provinces experienced the

worst season in recent years and in British Columbia the total loss reached nearly $3,000,000.

By a proclamation issued by the Governor-General, the week of April 24-30, 1927, was set aside as "Canadian Forest Week, this name having superseded the term "Save-the-Forest Week," which had been in use since 1923. The scope of the educational effort was enlarged from fire prevention to the broader field of all phases of forest conservation. Much publicity material was distributed by the Federal Government, many speeches were delivered and particular reference was made to the campaign in the schools.

Meantime, the Canadian Forestry Association, described as the largest and strongest forestry association in the world, had been doing continuous and effective work in maintaining interest in forest conservation. It made a net gain in membership in 1926 of 3,000, bringing its total to 27,900. It increased its revenue by $23,415 to $120,419 and its expenditure by $26,703 to $115,326. It arranged for 1,322 meetings during the year, which were attended by 300,056 persons, chiefly settlers. It launched a new conservation magazine printed in French, La Forest et La Ferme, and secured for it a circulation of 11,000 monthly. It increased the circulation of its English magazine, Forest and Outdoors, substantially. It instructed 289 communities in its prairie tree planting campaign and by means of newspaper publicity, radio broadcasting and many other forms of educational publicity expanded its work. The Annual Meeting of the Association was held in Montreal on Jan. 25, 1927, when J. H. Price, Quebec, was elected President. Robson Black was Secretary and Manager.

Interested in maintaining an unrestricted market for pulpwood, the Canadian Pulpwood Association was again active in 1926-27, in its efforts to prevent an embargo or export tax being placed on the export of this commodity. Its Annual Meeting took place in Montreal on Jan. 29-31, 1927. Of interest was the report of the Manager on the situation in Nova Scotia, where the AttorneyGeneral of the Province had announced a year before that the Government proposed to impose restrictions on the export of pulpwood. Municipal councils were appealed to for a vote on the question. 19 out of 23 voting, pronounced against an embargo or export tax; 2 decided to take no action; 1 deferred consideration; and I, a mining community, voted in favour of the proposal. In view of the overwhelming nature of the expression of opinion, it was felt that there was little likelihood of the Government taking action. Members of the Association reported an ever-increasing demand from Canadian mills for wood at prices which compared favourably with those offered by U.S. buyers. Angus McLean, Bathurst, N.B., was re-elected President, with A. G. Auger, Quebec; James Thompson, Toronto, and Ralph P. Bell, Halifax, VicePresidents.

The Lumber Industry. The year 1926 was not a prosperous one for the lumber industry because of several unfavourable factors, notably overproduction, a decline in the demand both from Overseas and the United States

and the increased competition of western woods in eastern markets. Owing to a surplus of stocks, which many producers and distributors were anxious to move, considerable price-cutting was indulged in with the result that, in many cases, no profit was shown and in others, a very inadequate return. As Rufus E. Dickie, President of the Canadian Lumbermen's Association, summed up the situation at the Annual Meeting of that body on Feb. 2, 1927, "It was a difficult and profitless year and those of us in the industry, particularly the manufacturers, are glad it has gone. There was a good volume of trade, but competition was keen and prices were low, which left little or no profit.' Mr. Dickie attributed the difficulties of the industry to over-production on the one hand and to under-consumption on the other. The lumber substitute man, he claimed, was doing a big business and the lumber manufacturer had to take prompt action to meet the competition. At the same Convention, Dr. Wilson Compton, Secretary and Manager of the National Lumber Manufacturers' Association, Washington, claimed that in 15 years the lumber industry of the United States and Canada had lost markets for its products to the extent of over 10 billion feet because of the inroads of substitute materials. To meet this situation, the National Lumber Manufacturers' Association had drawn up a plan, calling for the expenditure over a period of five years of not less than $5,000,000 for improving and extending the markets and uses for lumber and Dr. Compton invited Canadian lumbermen to co-operate in the movement. Another problem facing lumbermen in Eastern Canada, emphasized at the Convention, was the rapid increase in competition from the Pacific Coast. In 1921, 500,000,000 feet of lumber from British Columbia, Washington and Oregon had been shipped through the Panama Canal to Atlantic seaport markets. In 1925, shipments had amounted to 1,500,000,000 feet and in 1926 they were probably still greater.

The

The extent of Canada's lumber industry was revealed in a detailed report for the year 1925 issued by the Forest Products Branch of the Dominion Bureau of Statistics in May, 1927. The production of sawn lumber in that year amounted to 3,888,920 M. ft., b.m., valued at $99,725,519, as compared with 3,878,942 M. ft., b.m., valued at $104,444,622 in 1924. The average value of all kinds of lumber fell from $26.93 per M. ft., in 1924 to $25.64 in 1925, or by 4.5 per cent. production of shingles increased from 3,129,501 M. in 1924 to 3,156,261 M. in 1925 and their value from $10,406,293 to $11,154,773. There was a decline in prepared pulpwood from 814,180 cords valued at $11,583,293 in 1924 to 706,700 cords valued at $9,160,976 in 1925, while the production of lath increased from 1,165,819 M. valued at $5,975,253 to 1,292,963 M. valued at $6,415,927. The number of mills reporting in 1925 was 2,700 as against 2,761 in 1924 but the average annual output showed an increase from 1,482 M. ft., b.m. to 1,574 M. ft. b.m. There was a decrease from 35,494 to 35,457 in the number of employees and from $34,783,780 to $34,097,006 in payroll. The value of the capital invested in the industry showed an increase from $177,480,064 in 1924 to $204,134,003 in 1925. Raw materials in the form of logs, bolts, and rough cordwood had a value of $78,219,728, as compared with $83,141,692 in 1924, and the value added by manufacture was $56,194,117. British Columbia headed the Provinces in the production of sawn lumber and shingles, New Brunswick in lath production and Quebec in preparation of pulpwood. All four Western Provinces showed increased production and all Eastern Provinces, except Prince Edward Island, reported decreases.

Statistics for 1925 of industries engaged in the manufacture of various wood products in Canada were as follows:

The Canadian Lumbermen's Association, Ottawa, was active in the interests of the industry and in 1926 achieved useful results. Considerable action took place in transportation matters, particularly with reference to the question of rates on lumber from Eastern Canada to points in Central Freight Association

territory in the United States and to the question of the dressing in transit arrangement on lumber at points in Eastern Canada. A White Pine Bureau was established for the purpose of grading white pine produced in Eastern Canada and increasing its use. The spruce manufacturers of Eastern Canada also came together with a view to laying down rules for the grading of their product. A Canadian Hardwood Bureau, organized to further the use of Canadian hardwood in Canada and the United States, came into being in June, 1926, and made considerable progress. The Asssociation's 19th Annual Meeting took place in Montreal on Feb. 2-3, 1927. Its main feature was the attention given to the subject of trade extension and the only resolution of consequence adopted was one thanking the Forest Products Laboratories of Canada for the work done for the benefit of the industry, coupled with which was a statement that the industry would take greater advantage in the future of the facilities for research work afforded by the Laboratories. Among the speakers at the Convention were Hon. W. F. Finlayson, Minister of Lands and Forests for Ontario; V. A. Sinclair, K.C., Chairman of the Workmen's Compensation Commission of Ontario, and George H. Ross, Commissioner of Finance, Toronto. Directors elected were Dan McLachlin, Braeside, Ont.; E. R. Bremner, Ottawa; J. B. White, Montreal; D. Champoux, Quebec; J. H. Price, Quebec; J. W. Brankley, Chatham, N.B., and E. W. Hamber, Vancouver. The directors elected Walter M. Ross, Ottawa, President; J. B. White, Montreal, 1st Vice-President and E. R. Bremner, Ottawa, 2nd Vice-President. R. L. Sargant was Secretary and Manager of Transportation.

The Pulp and Paper Industry. Further substantial progress was made in 1926 by the Canadian pulp and paper industry, particularly in the production of newsprint paper. In the latter connection, the Dominion for the first time definitely took the lead among the nations of the world. The output for 1926 was estimated at 1,881,737 tons, or 24 per cent. more than the 1925 total, and it was greater by 195,000 tons than the United States output. During the year, 17 new machines were placed in operation, 13 in Quebec, one in Ontario, 2 in British Columbia and one in Manitoba. Rated capacity of all machines at the end of the year was 7,350 tons per day, with a prospect that this would be increased by 1,200 tons in 1927. In spite of the great expansion in production, markets in the United States, Great Britain, Australia and other countries were able to absorb the increase and mills operated close to capacity. There was exported in 1926, 1,731,986 tons of newsprint, valued at $114,089,595, which compared with 1,501,655 tons valued at $98,945,337 in 1925. Along with the record output of newsprint was an increased production of pulp, exports of the various kinds increasing from 959,671 tons in 1925 to over 1,000,000 tons in 1926. In the manufacture of artificial silk (rayon) from wood pulp, Canada was progressing rapidly in 1926 and Canadian mills were said to be producing 50 per cent. of the world's requirements of bleached sulphite.

Detailed information about Canada's pulp and paper industry appeared in a report issued in Feb. 1927, by the Forest Products Branch of the Dominion Bureau of Statistics, covering operations for the year, 1925. This showed 114 mills in operation, of which 45 manufactured pulp only, 35 were combined pulp and paper mills and 34 manufactured paper only. The total capital invested in the manufacturing part of the industry was $460,397,772; the total number of employees was 28,031 and the payroll, $38,560,905. The value of pulp-mill products was $100,216,383 and of paper-mill products, $140,680,177.

Paper formed the principal raw material of a considerable number of industries. Thus there were in 1925, 99 firms with capital investment of $14,379,233, engaged in the manufacture of paper boxes and bags of all kinds. These gave employment to 3,932 people, who were paid $3,648,649 in salaries and wages, used materials to the value of $6,472,726 and produced goods valued at over $13,000,000. In addition there were 169 establishments, with capital investment of $29,037,148, who were engaged in making building and roofing paper, stationery and envelopes, wall paper and miscellaneous paper goods. These employed 6,861 people, who received $6,811,893 in salaries and wages and produced goods to the value of $29,521,842.

An important development of 1926-27 was the decision of the industry to establish and maintain a pulp and paper research laboratory at McGill Univer