sity in Montreal. The Canadian Pulp and Paper Association were prime movers in this project and raised $350,000 to carry out the undertaking. The Canadian Pulp and Paper Research Corporation was incorporated by the Quebec Legislature and on June 9, 1927, contracts were awarded for the erection of the laboratory.

The year 1926 witnessed the inception of several new undertakings notably the Canadian Celanese Limited's large industry at Drummondville for the manufacture of artificial silk and the Canadian Cellulose Company's pulp mill at Cornwall. Both were started in June and were well on towards completion by the end of the year. Another project of importance commenced in 1926 was the erection of the Ste. Anne Power & Paper Company's mill at Beaupré, Quebec. The International Paper Co. had meanwhile been extending its interests in Canada and in January, 1927, announced the personnel of the directorate of its Canadian subsidiary, the Canadian International Paper Co., this being composed of Hon. R. B. Bennett, K.C., Calgary; Hon. Raoul Dandurand, Montreal; Victor M. Drury, Montreal; Gordon C. Edwards, M.P., Ottawa; J. H. Fortier, Quebec; Hon. Sir Lomer Gouin, Montreal; A. R. Graustein, New York; Neil C. Head, New York; John R. Macomber, Boston; G. H. Montgomery, K.C., Montreal; J. M. McCarthy, Quebec; J. W. McConnell, Montreal; H. C. Phipps, New York; Hon. Donat Raymond, Montreal; T. A. Russell, Toronto; F. N. Southam, Montreal; Hon. Smeaton White, Montreal; Brig.-General J. B. White, Montreal; A. H. Wiggin, New York and E. R. Wood, Toronto. The Company's new Gatineau mill on the Ottawa River commenced operations on Apr. 7, 1927.

Other interesting developments were the purchase in April, 1926, by the Wayagamack Pulp and Paper Co., from Senator Menier of France of the Island of Anticosti in the St. Lawrence River; the absorption in Nov., 1926, of the Canada Paper Co., by the St. Maurice Valley Corporation; the production in Feb., 1927, of the first newsprint paper at the new mills of the Manitoba Pulp and Paper Co., and the transfer of the control from the United States to Canada of the Provincial Paper Mills, Limited, the largest manufacturers in Canada of book paper.

The Canadian Pulp & Paper Association had its headquarters at Montreal, with Edward Beck, Secretary and Manager. It held its 14th Annual Meeting in Montreal on Jan. 28, 1927, when reports presented showed the organization to be in a flourishing condition. Resolutions were adopted approving the establishment of a Joint International Committee representing the American and Canadian Associations for the purpose of considering and dealing with matters of mutual concern, and extending to the American Association felicitations upon its golden jubilee. A resolution introduced by Angus McLean, Bathurst, N.B., commending the Dominion Parliament for appointing the Duncan Commission for examination of the economic conditions of the Maritime Provinces and expressing the hope that legislation would be enacted without delay, implementing in full the Commission's recommendations, was debated at some length and finally amended to read that this Association express its sympathy with the Maritime Provinces in their struggle for economic improvement and that a sub-committee be appointed to examine the report of the Duncan Commission and to report back to the Association." L. R. Wilson of the Abitibi Power & Paper Co., was re-elected President, this being the first occasion that any president had been so honoured. At the annual luncheon, Sir Henry Thornton, President of the Canadian National Railways, was the principal speaker, while at the annual dinner speeches were delivered by Hon. Charles Stewart, Minister of the Interior; Dr. Hugh P. Baker, secretary of the American Pulp and Paper Association; Edward H. Butler, owner of the Buffalo News, and George H. Montgomery, K.C.

Mining and
Metallurgical
Industries

Canada's mineral industry showed continued progress in 1926 and, according to the preliminary Report of the Dominion Bureau of Statistics, its production reached a new record value of $241,245,898, which was an advance of 6.4 per cent. over the total of $226,583,333 reported in 1925. Notable increases appeared in the figures for copper, gold, precious metals, silver, lead and zinc among the metals and for coal, feldspar, gypsum, graphite, natural gas, petroleum, pyrites, quartz and salt among the non-metals. Structural materials showed a gain of 5.5 per cent.

in 1926-27

in the aggregate and such items as sand and gravel advanced upwards of 40 per cent. during the year. According to Provinces, Ontario led with a production valued at $85,364,921, followed by British Columbia with $66,185,780; Nova Scotia with $28,792,898; Alberta with $26,962,843, and Quebec, $25,570,760.

The investment in Canadian mines in 1926 amounted to approximately $632,075,000, of which $290,534,965 was in metal mines and metallurgical works treating Canadian ores; $253,023,646 in non-metallic mines and $88,516,534 in properties and plants producing structural materials and clay products. Ontario mines accounted for 41 per cent. of the total invested in the industry. In the operating mines, quarries and smelters in Canada, upwards of 65,000 persons were employed but this did not represent the total extent of employment in the mining industry, since no records were available of the numbers engaged in prospecting and general development work on properties that had not reached the producing stage, nor did it make allowance for persons engaged in subsidiary industries. Salaries and wages paid to the 65,000 persons recorded totalled approximately $85,000,000.

Canada's gold production in 1926 amounted to 1,754,228 fine ounces valued at $36,263,110, which compared with 1,735,735 fine ounces valued at $35,880,826 in 1925. Ontario contributed 1,497,215 ounces, as against 1,461,039 in 1925, its principal producers being the Hollinger mine with 713,000 ounces; the Dome, 190,000; the McIntyre, 185,000; the Lake Shore, 134,000; the Wright-Hargreaves, 104,000, and the Teck-Hughes, 77,000. Prospecting and development work was done in Western and Northern Ontario and throughout the new goldcopper area in Quebec, with such good effect that many claims were staked and not a few sold to development companies. Canada was the third gold producer in the world in 1925, according to Major J. Macintosh Bell, President of the Huronian Belt Company, Limited, who addressed the Canadian Club of Montreal on Apr. 20, 1927, on "The Mining Developments in Northern Ontario and Quebec." Its production was only exceeded by that of South Africa and the United States, the former yielding $198,399,790 and the latter $47,956,991, as compared with Canada's $35,880,826. Canada's premier gold mining company, Hollinger Consolidated, issued its 16th Annual Report on Feb. 25, 1927. This showed that the mine had recovered a net value of $14,789,636, as compared with $15,786,405 in 1925. The mill treated an average of 5,295 tons daily and costs were reduced below the $4 mark. Dividends paid aggregated $5,805,600. Extensive preparations were being made for larger production.

Copper statistics showed gains in every Province producing this metal, but more particularly in British Columbia. Production from Canadian ores amounted to 132,345,153 pounds, valued at $17,386,867. In 1925, production was computed on a slightly different basis and totalled 111,450,518 pounds, valued at $15,649,882. British Columbia's output aggregated 88,358,227 pounds. Most of the remainder came from Ontario, with a small amount from Quebec. However, large deposits were being opened up in the new Rouyn District in that Province and considerable work was being done on the copper ores of the Flin Flon Mine in Northern Manitoba. The outstanding development in the Rouyn District was that of Noranda Mines Limited, which reported ore reserves, based on copper at 13 cents a pound, of $25,100,000 at Dec. 31, 1926. Development work in 1926 was retarded by lack of power, but progress was being made with the erection of a large smelter.

Lead production reached a new tonnage record in 1926, amounting to 284,120,946 pounds valued at $19,262,242, as against 253,590,578 pounds valued at $23,127,460 in 1925. The great bulk of the production came from the Trail Smelter of the Consolidated Mining and Smelting Co. and this production was sold largely in Europe and the Orient. The Consolidated Company, one of the greatest of Canada's mining and metallurgical industries, had assets at Dec. 31, 1926, of $43,921,983. Mines, mineral claims and investments in other companies were valued at $9,697,826, and mining, smelting, concentrating and refining plants, less depreciation, at $11,395,459. The Company earned net profits of $13,915,262 in 1926. The volume of sales was very satisfactory and the year closed with practically no metal unsold, notwithstanding the marked

increase in production. Canadian sales showed healthy growth. Substantial increases were reported in the Orient and Europe purchased large quantities.

Exports of nickel in matte and speiss reached greater tonnages in 1926 than in 1925, but refinery production fell below the total for 1925, so that the aggregate was less. Production amounted to 65,714,294 pounds valued at $14,374,163, as against 73,857,114 pounds valued at $15,946,672 in 1925. Mining and smelting of nickel-copper ores was carried on by the International Nickel Co. of Canada and the Mond Nickel Co. The former in 1926 launched an extensive development programme to meet the growing demand for nickel as a result of research work looking to the further utilization of this metal.

Silver production in 1926 amounted to 22,435,531 ounces valued at $13,934,035, compared with 20,228,988 ounces valued at $13,971,150 in 1925. Canada's silver production was obtained principally from the silver-cobalt mines of Northern Ontario, the silver-lead-zinc and copper-gold mines of British Columbia and the silver-lead ores of the Yukon. Production of zinc was 161,897,466 pounds as against 109,268,511 pounds in 1925. This was valued, on the basis of London quotations, at $11,966,601. Refined zinc was produced at Trail from the silver-lead-zinc ores of the West Kootenay and the Sullivan mine at Kimberley, while some zinc concentrates were exported from Quebec to Belgium.

Canada's deposits of asbestos continued to supply by far the greater part of the world's demand for this product and in 1926, 4,483,361 tons of asbestos rock were mined in the Province of Quebec and 4,002,626 tons were handled by the mills. Production of asbestos reached a total of 279,389 tons, valued at $10,095,487. The bulk of the production came from the properties of the Asbestos Corporation Limited, a merger of the principal asbestos companies, which came into being on Feb. 1, 1926. Much important work was done in 1926 in placing the properties on a sound and efficient basis and results for the eleven months ended Dec. 31 were reported at the annual meeting on Apr. 27, 1927, as most satisfactory.

Coal production in 1926 advanced to 16,457,484 tons, an increase of 3,322,516 tons, and the value increased from $49,261,951 to $59,797,181. Nova Scotia mines had an output of 6,747,955 tons, which was only exceeded by that of 1916 when 6,912,140 tons were produced. Alberta mines produced 6,499,531 tons and British Columbia 2,602,548 tons. Smaller quantities came from New Brunswick and Saskatchewan. Exports of coal amounted to 1,028,300 tons, as compared with 785,910 tons in 1925. Imports were 18,056,139 tons, as against 16,832,435 tons in 1925 and the quantity of coal made available for use was 33,485,323 tons, an increase of over 4,000,000 tons. The coke output in 1926 was 1,909,578 tons, comparing with 1,471,116 tons in 1925. There was in 1926 a growing national appreciation of the value of Canada's own coal resources, and steps were being taken particularly in Alberta, to bring about a larger consumption of domestic fuel in parts of the Dominion which had been dependent on U. S. supplies. The cost of transportation was a deterrent and efforts were being made to secure a rate which would enable Alberta operators to meet the competition of U. S. exporters in the Ontario market.

In Alberta a Canadian Coal Publicity Committee was organized with W. W. McBain, Chairman, and at Toronto on May 28, preliminary steps were taken to form a National Coal Committee by representatives of the Alberta and Ontario Governments and various trade bodies.

Crude petroleum production in 1926 amounted to 364,603 barrels valued at $1,313,730, as compared with 332,001 barrels valued at $1,250,705 in 1925. Alberta, where interesting new developments were taking place, had a record production of 217,088 barrels, mainly from the Royalite No. 4 wet-gas well. Ontario's production of 136,971 barrels fell somewhat under the 1925 level. New Brunswick, the only other producing province, reported 10,544 barrels, or nearly double the 1925 total. The quest for oil in Canada was prosecuted vigorously in 1926, particularly in Alberta, where the spectacular results obtained from Royalite No. 4 well in the Turner Valley had proved a great incentive to explora

*NOTE: See Chapter on Transportation and Communication, for an account of the ap. plication for reduced rates to the Board of Railway Commissioners.

tion. Popular interest in the search broadened greatly, and at least two important petroleum organizations entered the field, the Marland Oil Co., which formed an affiliation with the Hudson's Bay Co. and began exploratory work principally in the northern part of Alberta, and the Cities Service Company which, under the presidency of E. L. Doherty, had been for some years an important factor in the oil and gas industry of the United States, and in 1926 became interested in areas in Southern Alberta. In his report for 1926, C. C. Ross, Supervisory Engineer of the Northwest Territories and Yukon Branch, Department of the Interior, stated that in the Turner Valley, 16 wells had been started during the year, and a total of 42,779 feet of drilling accomplished in them. The only completed wells were Vulcan No. 1, which was producing 140 barrels of naptha per day, and Illinois-Alberta No. 1, with 120 barrels per day. Favourable results were also being secured at McLeod No. 2. Outside of the Turner Valley prospecting wells were being drilled at Rice Creek, Highwood, Bragg Creek, Moose Mountain, Jumping Pound, Bow River, Wainwright and Ribstone, with fairly encouraging results.

An incident of 1926-27 which received considerable publicity was a reported find of oil near Grandview, Manitoba. The well had been "spudded in" by Hon. John Bracken, Premier of Manitoba, on Nov. 19, 1926, in the presence of a large gathering and a banquet had been held to mark the occasion. On Dec. 22 The Manitoba Free Press stated that it had received word from W. T. Ross, the promoter who was sinking the well, that a flow of from 35 to 40 barrels a day had been secured at less than 1,000 feet. Action was subsequently taken by the Federal authorities to investigate the alleged find and this inquiry was spread over several months. Eventually a final report was made by C. C. Ross, Chief Inspector of the Department of the Interior, which was published in The Free Press on June 22, 1927. It concluded: "After carefully weighing all the information furnished, documentary evidence secured, and the facts obtained by opening up the well, there is no alternative to arrive at but that the operations at the well were deliberately planned to deceive and defraud, and I am firmly convinced that the officials of the Irro Gas and Oil Co., Limited, and Grandview Oils Limited were deceived." Notwithstanding this situation, both companies decided to continue exploratory work, and work on a second well was commenced while the investigation was still in progress.

What was regarded as an important find was made early in June, 1927, when oil was struck at 3,090 feet in No. 1 Well of the Devenish Petroleum Corporation, 7 miles south of Skiff, Alta. On June 17 a banquet was tendered by the Lethbridge Board of Trade to O. G. Devenish, the discoverer, at which Prof. J. A. Allan, of the University of Alberta, made the statement that the discovery had been the most important in Alberta to date. The well was making about 250 barrels of 22 degree baume crude on a swab test. Mr. Devenish himself declared that he believed it to be the beginning of a gigantic field.

Other events of 1926-27 affecting mining and kindred industries were: the decision of the Dominion Government to enter on the peat distribution business at the Alfred bogs in Ontario in an experimental way for one year; the first shipment of a carload of lithium ores from Lac du Bonnet, Man., on Feb. 9, 1927, for export to Germany; a conference at Ottawa on Mar. 1st, 1927, between representatives of the Canadian and U. S. governments with a view to effecting cooperation in the investigation of problems affecting the mineral industry in both countries; the decision of the Supreme Court of Canada on Apr. 20, 1927, that precious metals in Hudson's Bay Co. lands were owned by the Crown and the announcement on June 16 that leave to appeal to the Privy Council from the decision of the Supreme Court had been granted.

The Dominion Fuel Board, composed of Dr. Charles Camsell, Deputy Minister of Mines (Chairman); John McLeish, Director, Mines Branch, Department of Mines (Vice-Chairman); Dr. W. H. Collins, Director, Geological Survey, Department of Mines; F. C. C. Lynch, Director, Natural Resources Intelligence Service, Department of the Interior; J. T. Johnston, Director, Dominion Water Power and Reclamation Service, Department of the Interior; B. F. Haanel, Chief Engineer, Division of Fuels and Fuel Testing, Mines Branch, Department of Mines; D. Roy Cameron, Assistant Director, Forestry Branch, Department

of the Interior, and C. P. Hotchkiss, Department of Mines (Executive Secretary), continued in 1926 its studies of the fuel situation in Canada. Among its activities were an investigation of and report on the coking qualities of Maritime Province coals; the carrying out of heating tests to determine the relative values of Canadian and British coals and various kinds of coke; the preparation of a series of popular pamphlets on house construction and insulation; an investigation into the use of wood as an auxiliary fuel in Ontario; the publication of cards of instruction showing the correct way of using coke in household furnaces; the making of another survey of the extent to which United States anthracite was being replaced by other fuels; a study of the extent to which assistance could be granted to the coking industry, including a revision of the Dominion Fuel Act ; the submission of a brief to the Railway Board on the subject of freight rates on coal and a study of the tariff question as it affected fuel. The Board was also called upon by the House of Commons Committee investigating the coal resources of Canada to advise and prepare data on the subject.

The national organization of those interested in the mining industry of Canada was the Canadian Institute of Mining and Metallurgy, Montreal. Lewis Stockett, General Superintendent, Coal Mines Branch, Department of Natural Resources, C. P. R., Calgary, was President in 1926-27, and G. C. Mackenzie, Secretary-Treasurer. For the first time in 6 years an increase in membership was recorded in 1926 and at Jan. 1st, 1927, the total was 1,498, as compared with 1,419 at Jan. 1st, 1926. The routine work of the Institute proceeded regularly throughout the year, special attention being devoted to preparations for the second Empire Congress of Mining and Metallurgical Institutions assembling in Montreal on Aug. 22, 1927. The 28th Annual General Meeting was held in Montreal, Mar. 3-6, 1926, with a registration of 265. A number of excellent papers were presented which were provocative of considerable discussion. The 34th Annual Meeting of the Mining Society of Nova Scotia took place at Baddeck, C.B., on June 22-23, 1926. The 7th Annual Western Meeting of the Institute was held jointly with the Northwest Sections of the American Institute of Mining and Metallurgical Engineers, with sessions at Spokane, Wash., Oct. 13-14, 1926 ; at Cranbrook, B. C., Oct. 15, followed by visits to the Sullivan mine and concentrator at Kimberley on Oct. 16. The 7th Annual Meeting of the B. C. Division of the Institute was held in Vancouver on Feb. 19, 1926.

Canada's
Fisheries;

Their Progress
in 1926

There was an increased production of fish in Canada in 1926 and this was reflected in the total value of the fish marketed. The catch of salmon, the most valuable of all the fish caught and marketed, amounted to 2,180,470 cwt., as compared with 1,933,260 cwt. in 1925. Cod, which ranked second in value, showed an increase from 2,309,000 cwt. to 2,733,864 cwt. There was a slight decrease in lobsters from 340,838 to 339,195 cwts., and in halibut from 340,007 to 339,918 cwts., but herring was up from 2,413,973 to 2,423,457 cwts., whitefish from 186,648 to 190,644 cwts., and haddock from 344,386 to 496,811 cwts. The catch of pickerel increased from 86,877 to 126,086 cwts., and there was a remarkable jump in the catch of pilchards from 318,973 to 969,958 cwts. The recently established industry in British Columbia for the production of pilchard oil and meal gave this fish eighth place in the list of commercial fishes of Canada in 1926. There were variations in the production of the other kinds of fish contributing to the total but in most instances increases were recorded.

In point of value the salmon fishery had a production worth $19,614,239, which represented an increase of nearly $4,000,000 over 1925. The cod fishery was valued at $6,995,283, as compared with $6,232,821 in 1925. Despite the smaller catch in each case, the value of the lobsters caught and marketed showed an increase from $5,552,977 to $5,883,672, and the halibut from $4,185,391 to $4,935,472. Herring, with a value of $3,238,919; whitefish, with a value of $2,167,865; haddock, with a value of $1,754,846; pickerel with a value of $1,385,886, and pilchard, with a value of $1,256,721, were all substantially higher than in 1925. The total value of production of all kinds of fish was $56,360,633.