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Public timber allocation policy in Newfoundland Munro, J. 1978

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P U B L I C T IMBER ALLOCAT ION b y JOHN A . M . S c . F . , U n i v e r s i t y POL ICY IN NEWFOUNDLAND MUNRO o f T o r o n t o , 1969 A THES I S SUBMITTED I N THE REQUIREMENTS DOCTOR OF P A R T I A L FULF I L LMENT OF FOR THE DEGREE OF PHILOSOPHY i n THE FACULTY OF GRADUATE STUDIES D e p a r t m e n t o f F o r e s t r y We a c c e p t t h i s t h e s i s a s c o n f o r m i n g t o t h e r e q u i r e d s t a n d a r d THE UN IVERS ITY OF B R I T I S H COLUMBIA M a y , 1973 In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the r e q u i r e m e n t s f o r an advanced degree at the U n i v e r s i t y o f B r i t i s h Co lumb ia , I a g ree that the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s tudy . I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y purposes may be g r a n t e d by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s . It i s u n d e r s t o o d that c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l o w e d w i thou t my w r i t t e n p e r m i s s i o n . Department o f Forestry The U n i v e r s i t y o f B r i t i s h Co lumbia 2075 Wesbrook Place Vancouver, Canada V6T 1W5 Date September 21, 1978 ABSTRACT Early public timber allocation policies -were perceived by many i n Newfoundland to be having a continuing influence on forest management policy. A thorough review of these policies and the resulting development of forest industry had never been undertaken. It was decided to carry out such a review by testing three hypotheses on past timber allocation policy. These hypotheses are stated as follows: the pattern of use of the coastal forest resource was estab-lished centuries ago by transient fishermen and early settlers and this has had a profound influence on public timber allocation policy; early government timber allocation policies for the forest resource of the interior of the Island and Labrador were a giveaway; and the early timber allocation policies led to undue'concentration of ownership of the interior timber resource of the Island of Newfoundland. These hypotheses are evaluated by examining the hi s t o r i c a l record to determine the evolution of early timber allocation policies and the subsequent development of the forest resource. The influence of early settlement on timber allocation i s established by a literature review which documents traditional attitudes and uses of the coastal forest resource. An extensive review of timber allocation legislation and a search of government records was under-taken to establish early timber allocation policies and the results that were achieved in terms of forest-based industrial development. Examination of the historic record' allowed a judgement to be made on the extent to which the forest resource of Newfoundland and Labrador has proven to be intramarginal, marginal or submarginal in an economic sense. This provided the basis for the evaluation of the second and third hypotheses. The study concludes that the attitudes of early settlers towards the use of the forest resource have had a profound influence over public timber allocation policy. The existence of the fthree-mile limit*, a band of common-property forest around the coast of the Island, i s identified as a direct result of this influence. The importance and special function of this part of the forest resource should be recognized in an explicit statement of forest policy by the government. It i s also concluded that the early timber allocation policies for the forests of the interior of the Island and Labrador were not a major giveaway of economic rents at the time. I n i t i a l l y the government tried to capture more economic rent through higher charges but, i n order to encourage development, i t was forced to lower i t s fees and extend the term of timber licenses from 21 to 99 years. This was because much of the resource was found to be i i marginal or submarginal for the developments that were i n i t i a l l y undertaken. While considerable concentration of ownership of the forest resource in the interior of the Island of New-foundland did occur, this was the result of a rational reallocation of timber licenses from economically nonviable to economically viable developments. Scattered resources, which had proven to be submarginal for small-scale develop-ment, later proved to be intramarginal when combined into large lim i t areas for major pulp and paper mi l l s . Finally i t i s suggested that the policy since 1949 of encouraging further large-scale forest development be questioned and more emphasis be placed on using available intramarginal and marginal resources to preserve and expand established forest industry. While h i s t o r i c a l l y the forest resources of Labrador and remote parts of the Island have proved to be submarginal, the prospects for these resources to support viable industries should be reviewed periodically to see i f further development attempts should be encouraged; i - i i CONTENTS A b s t r a c t i C o n t e n t s i v L i s t o f T a b l e s v i i i L i s t o f F i g u r e s i x P r e f a c e x A c k n o w l e d g m e n t s x v PART I: INTRODUCTION I. SCOPE OF THE THES I S 2 T i m b e r A l l o c a t i o n P o l i c y i n N e w f o u n d l a n d 2 H y p o t h e s e s C o n c e r n i n g H i s t o r i c T i m b e r A l l o c a t i o n P o l i c y 1+ M e t h o d 7 T h e s i s O u t l i n e 10 I I . BACKGROUND TO NEWFOUNDLAND AND I T S FOREST RESOURCE 12 The L a n d 12 The P e o p l e a n d G o v e r n m e n t 16 The F o r e s t 19 I s l a n d 20 L a b r a d o r 23 C o m p a r i s o n w i t h O t h e r A r e a s 26 F o r e s t I n d u s t r i e s 27 PART I I : H I STOR ICAL DEVELOPMENT I I I . EARLY DEVELOPMENT OF ATT ITUDES TOWARDS USE OF THE COASTAL AND INTER IOR FOREST AREAS 32 I n t r o d u c t i o n 32 T h e F i s h e r y 33 E a r l y S e t t l e m e n t 35 E s t a b l i s h m e n t o f G o v e r n m e n t 38 i v I V . T IMBER ALLOCAT ION Ll D e v e l o p m e n t P o l i c y 42 N a t u r e o f T i m b e r O w n e r s h i p D o c u m e n t s 43 F r e e h o l d G r a n t s 43 T i m b e r L e a s e 47 T i m b e r L i c e n s e s 50 T i m b e r L i c e n s e L e g i s l a t i o n 52 G o v e r n m e n t A d m i n i s t r a t i o n o f t h e T i m b e r L i c e n s e L e g i s l a t i o n 55 A r e a s A l l o c a t e d T h r o u g h T i m b e r L i c e n s e s 59 The T h r e e M i l e L i m i t 70 Summary 71 V . ACQU I S I T ION BY THE PULP AND PAPER INDUSTRY OF TIMBER OWNERSHIP ON THE I SLAND 76 E m e r g e n c e o f t h e P u l p a n d P a p e r I n d u s t r y 76 Summary o f M a j o r D e v e l o p m e n t s i n t h e I n d u s t r y . 81 B l a c k R i v e r 82 B i s h o p s F a l l s 85 C a m p b e l l t o n 87 G l o v e r t o w n 88 C o r n e r B r o o k 89 Bonne B a y 91 R o t i B a y 92 W h i t e B a y 93 The G a n d e r D e a l 93 F i n a l C o n c e n t r a t i o n o f T i m b e r O w n e r s h i p 95 G r a n d F a l l s 96 C o r n e r B r o o k 98 G o v e r n m e n t P o l i c y on t h e G a n d e r D e a l 101 Summary 106 V I . DEVELOPMENTS I N LABRADOR 110 D u r a t i o n o f L i c e n s e s 110 C o n c e n t r a t i o n o f T i m b e r O w n e r s h i p 112 F a i l u r e o f D e v e l o p m e n t t o O c c u r 116 L a b r a d o r B o u n d a r y D i s p u t e 119 W o r l d W a r s I a n d I I 122 L i t i g a t i o n a n d W o r l d D e p r e s s i o n o f t h e 1930's . .. 123 I n c o n s i s t e n t G o v e r n m e n t P o l i c y 124 P o s t C o n f e d e r a t i o n D e v e l o p m e n t s 128 S i e g h e i m L e a s e 128 The N e w f o u n d l a n d a n d L a b r a d o r C o r p o r a t i o n . 1 28 The B r i t i s h N e w f o u n d l a n d C o r p o r a t i o n 129 I n t e r n a t i o n a l F o r e s t P r o d u c t s 129 v N e w f o u n d l a n d P u l p a n d C h e m i c a l Company . . . . 131 B o w a t e r N e w f o u n d l a n d L i m i t e d 131 O t h e r O p e r a t i o n s 132 Summary 133 V I I . VALUE OF CUTTING R IGHTS ON THE I SLAND 134 The M a r k e t f o r T i m b e r L i c e n s e s 134 S a l e s o f T i m b e r L i c e n s e s 139 Some G e n e r a l E s t i m a t e s o f T i m b e r L i m i t V a l u e s 144 R e i d N e w f o u n d l a n d Company 144 C o r n e r B r o o k a n d G r a n d F a l l s M i l l s 145 Summary 148 V I I I . DEVELOPMENT OF FOREST INDUSTRY 150 S a w m i l l s 150 P u l p a n d P a p e r I n d u s t r y 15 8 R e c e n t G o v e r n m e n t A t t e m p t s t o P r o m o t e L a r g e - S c a l e F o r e s t I n d u s t r y I64 N e w s p r i n t M i l l f o r E a s t e r n N e w f o u n d l a n d . I64 L i n e r b o a r d M i l l i n W e s t e r n N e w f o u n d l a n d . 166 PART I I I : EVALUAT ION OF HYPOTHESES I X . INFLUENCE OF TRAD IT ION AND H I STOR ICAL ATT ITUDES ON PUBL IC T IMBER ALLOCAT ION POL ICY 169 X . WERE TIMBER ALLOCAT ION P O L I C I E S A GIVEAWAY? . . 174 E c o n o m i c R e n t a n d T i m b e r R e s o u r c e s 174 A s s e s s m e n t o f T i m b e r A l l o c a t i o n P o l i c y 178 X I . CONCENTRATION OF T IMBER OWNERSHIP 188 PART I V : CONCLUSIONS X I I . CONCLUSIONS AND RECOMMENDATIONS 197 v i SOURCES CONSULTED 208 Published Sources and Theses 208 Newfoundland L e g i s l a t i o n 213 Newfoundland Archives 216 Correspondence of the Department of the Colonial Secretary 216 Correspondence of the Governor's Office 217 Minutes of Council 217 Reid Papers 217 Horwood Papers 217 Unpublished Government Documents and Records 218 Crown Lands Registry 218 Registry of Deeds 218 Correspondence of the Department of Agriculture and Mines 218 Correspondence of the Department of Mines and Resources 219 Reports 219 Miscellaneous 219 APPENDICES Appendix 1 - Review of Newfoundland Timber A l l o c a t i o n L e g i s l a t i o n Appendix 2 - Tabular Summary of Newfoundland Timber License L e g i s l a t i o n i n Crown Lands Acts 1860-1954 Appendix 3 - Freehold Reid Grant Appendix 4 - Timber License Appendix 5 - Chronological L i s t of Timber Licenses Acquired for Corner Brook M i l l Appendix 6 - Recorded Timber License Sales for the Island Appendix 7 - Maps Map 1 - A l l o c a t i o n of Timber Lands, 1914 Map 2 - Licensed Areas i n Labrador, 1923 Map 3 - Major Developments, Pulp and Paper Industry, 1897-1938 Map 4 - Expansion of Limit Areas of Grand F a l l s M i l l Map 5 - Expansion of Limit Areas of Corner Brook M i l l 221 242 246 250 254 259 8-v i i LIST OF TABLES 1. Summary of Alienations, Island and Labrador 1897-1946 52 2. Number of Timber Licenses Issued by Period and Type of License 63 3. Areas Licensed on Island by Kind of License 65 L. Areas Licensed i n Labrador by Kind of License .... 66 5. Summary of Alienations of Forest Land, Island of Newfoundland 7^  6. Major Developments i n the Pulp and Paper Industry, 1897-1937 83 7. Timber Limits Acquired by the Anglo-Newfoundland Development Company f o r the Grand F a l l s M i l l 99 8. Summary of Limit Areas Acquired f o r the Corner Brook M i l l 102 9. Labrador Timber Licenses Cancelled and Expired, 1925-52 112 10. Timber Licenses Acquired by Labrador Development Company 117 11. Average Size of Timber Licenses Issued 118 12. Summary of Timber License Sales, Island 139 13. Lumber Exports 153 14. Exports of Newsprint and Pulp from Newfoundland fo r Selected Years from 1911 to 1970 159 15. Five Year Averages of Newfoundland Softwood Production 160 16. Employment i n the Pulp and Paper Industry i n Newfoundland for Selected Years from 1939 to 1970 162 v i i i L I S T OF F IGURES 1. I s l a n d o f N e w f o u n d l a n d a n d L a b r a d o r 13 2. I s l a n d o f N e w f o u n d l a n d S h o w i n g M a i n F o r e s t e d A r e a s , F o r e s t I n v e n t o r y R e g i o n s a n d E x i s t i n g Wood S u p p l y 21 3. M a j o r M e r c h a n t a b l e F o r e s t A r e a s i n L a b r a d o r 2L L. N e t A r e a s L i c e n s e d - I s l a n d 68 5 . N e t A r e a s L i c e n s e d - L a b r a d o r 69 6. T i m b e r A l l o c a t i o n on t h e I s l a n d , i960 109 7. T i m b e r O p t i o n s H e l d i n L a b r a d o r D u r i n g 1960's ...130 8 . A v e r a g e P r i c e P e r S q u a r e M i l e P a i d i n T i m b e r L i c e n s e S a l e s - I s l a n d 140 9. L u m b e r P r o d u c t i o n - N e w f o u n d l a n d 1910-1973 1 5 1 10. L u m b e r E x p o r t s a n d P r o d u c t i o n o f M i l l s on L i c e n s e d A r e a s , 1890-1930 152 - i x PREFACE During the 1960Ts I was pr i v i l e g e d to work with a small group of dedicated foresters and others, i n forest administration i n the public service of Newfoundland. A Royal Commission on Forestry (Kennedy, 1955) had assessed the forestry problems and opportunities facing the Province, made a number of recommendations and proposed that a f u l l y staffed Newfoundland Forest Service be organized by i960, to administer an expanded f o r e s t r y program. The Government acted on t h i s recommendation and i n i960 appointed a Chief Forester to be i n charge of the Forest Service which was part of the newly created Department of Mines, Agriculture and Resources. Fresh out of the University of New Brunswick i n the spring of 1961 with a Bachelor of Science Degree i n Forestry, I was one of the f i r s t foresters to work for the Newfoundland Forest Service. - The small s t a f f of the service struggled with many problems while i t t r i e d to b u i l d up an eff e c t i v e organization to manage the forest resources of the Province. There were many d i f f i c u l t i e s including the perennials, inadequate funds and shortage of q u a l i f i e d professional and technical s t a f f . There were also some notable accomplish-ments, including the establishment of a forest f i r e control x system and the i n i t i a t i o n of a province-wide forest inventory. These and other a c t i v i t i e s by the Forest Service were undertaken i n general support of the P r o v i n c i a l Government's strenuous e f f o r t s to further expand the forest based ind u s t r i e s . However, although everyone worked hard towards t h i s goal, progress was slow and there were many setbacks. New development proposals were often received and vigorously pursued but they almost i n v a r i a b l y f a i l e d to mature into viable job-creating i n d u s t r i e s . As I gained experience, i t became clear to me that although the forest p o l i c y of the Government had never been c l e a r l y a r t i c u l a t e d , i t was intimately related and subservient to general economic development p o l i c y . I began to suspect that past forest and economic development p o l i c i e s were possibly the root cause of at least some of the seemingly insoluble current d i f f i c u l t i e s . Many of these problems seemed centered around the pattern of timber a l l o c a t i o n . I could not help but speculate on the possi-b i l i t y that h i s t o r y was being repeated and that present problems were i n fact related to e a r l i e r and long-forgotten government attempts to encourage the establishment of forest industry. I r e a l i z e d that i n fact there was l i t t l e document-ation of the or i g i n s and workings of early timber a l l o c a t i o n p o l i c i e s and the process by which ownership of the entire x i i n t e r i o r f o r e s t r e s o u r c e s o f t h e I s l a n d became c o n c e n t r a t e d i n t w o l a r g e p r i v a t e c o m p a n i e s . U n d e r w h a t c i r c u m s t a n c e s w e r e t h e e a r l y a l l o c a t i o n s made? What w e r e t h e o b j e c t i v e s o f G o v e r n m e n t i n m a k i n g t h e s e a l l o c a t i o n s ? Were t h e s e o b j e c t i v e s a c h i e v e d ? I t s eemed t o me t h a t a c l e a r u n d e r s t a n d i n g o f p r e s e n t p r o b l e m s r e l a t i n g t o t i m b e r a l l o c a t i o n c o u l d o n l y b e o b t a i n e d b y a n i n - d e p t h a n a l y s i s o f p a s t p o l i c i e s , p r a c t i c e s a n d e v e n t s . W i t h o u t s u c h a n h i s t o r i c a l a n a l y s i s , f o r e s t m a n a g e r s i n N e w f o u n d l a n d w o u l d n e v e r f u l l y u n d e r s t a n d t h e t r u e n a t u r e o f t h e p r o b l e m s t h e y f a c e d a n d c o u l d ' c o n t i n u a l l y be f r u s t r a t e d i n t h e i r a t t e m p t s t o f u r t h e r d e v e l o p a n d manage t h e f o r e s t r e s o u r c e o f t h e p r o v i n c e . I n r e c e n t y e a r s t h e r e h a s b e e n i n c r e a s i n g i n t e r e s t i n C a n a d a i n n a t u r a l r e s o u r c e p o l i c y , i n c l u d i n g f o r e s t p o l i c y ( B u r t o n , 1972). S i n c e t h e f o r e s t r e s o u r c e i s l a r g e l y owned a n d c o n t r o l l e d b y t h e p r o v i n c e s , t h e y h a v e t a k e n t h e i n i t i -a t i v e i n r e v i e w i n g t h e i r f o r e s t management p o l i c i e s . A g o o d summary o f t h e i n c r e a s i n g i n v o l v e m e n t o f p r o v i n c i a l g o v e r n -m e n t s i n E a s t e r n C a n a d a i n a l l a s p e c t s o f f o r e s t management i s c o n t a i n e d i n t h e p r o c e e d i n g s o f a m e e t i n g o f t h e N a t i o n a l F o r e s t Management G r o u p o f t h e C a n a d i a n P u l p a n d P a p e r A s s o c i a t i o n h e l d a t T h u n d e r B a y i n 1974 ( s e e r e f e r e n c e s b e l o w ) . I n t h e p a p e r s p r e s e n t e d b y p r o v i n c i a l g o v e r n m e n t r e p r e s e n t a t i v e s f r o m N e w f o u n d l a n d , N o v a S c o t i a , New B r u n s w i c k , Quebec a n d O n t a r i o , a common t heme o f i n c r e a s i n g g o v e r n m e n t c o n t r o l o v e r t h e f o r e s t r y o p e r a t i o n s o f t h e x i i p r i v a t e s e c t o r i s o b v i o u s . One s e r i o u s p r o b l e m m e n t i o n e d b y m o s t p r o v i n c i a l r e p r e s e n t a t i v e s wa s t h e h i s t o r i c f o r e s t t e n u r e s y s t e m w h i c h wa s p e r c e i v e d t o be i m p e d i n g f u r t h e r r e s o u r c e d e v e l o p m e n t a n d u t i l i z a t i o n . M o s t r e p r e s e n t a t i v e s i n d i c a t e d t h a t t h e i r g o v e r n m e n t s w e r e d e t e r m i n e d t o e f f e c t c h a n g e s . The N o v a S c o t i a G o v e r n m e n t h a s h a d a l o n g s t a n d i n g p o l i c y o f b u y i n g b a c k p r i v a t e l a n d w i t h t h e o b j e c t i v e o f b r i n g i n g mo re o f t h e f o r e s t r e s o u r c e u n d e r i t s d i r e c t c o n t r o l . The p r o v i n c e h a s a l s o d e v e l o p e d a new f o r m o f t i m b e r l i c e n s e w i t h a m a j o r company i n w h i c h a p o r t i o n o f t h e s t u m p a g e c h a r g e i s r e t a i n e d b y t h e company a n d i n v e s t e d i n s i l v i -c u l t u r a l i m p r o v e m e n t s t o t h e l i c e n s e d a r e a ( A t k i n s , 1974). I n New B r u n s w i c k , one f u n d a m e n t a l o b s t a c l e s t a n d i n g i n t h e way o f f u r t h e r d e v e l o p m e n t o f f o r e s t - b a s e d i n d u s t r i e s w a s , " t h e m a l d i s t r i b u t i o n o f t h e a v a i l a b l e t i m b e r r e s o u r c e s " ( M a r s h a l l e t a l . , 1974). The O n t a r i o d e l e g a t e n o t e d t h a t , " p r e s e n t h o l d i n g s a r e h i s t o r i c r a t h e r t h a n r a t i o n a l " ( D i x o n , 1974). The m o s t s w e e p i n g r e - e v a l u a t i o n o f g o v e r n m e n t f o r e s t p o l i c y h a s o c c u r r e d i n Q u e b e c , w h e r e t h e h i s t o r i c r e s o u r c e p r o t e c t i o n r o l e o f g o v e r n m e n t h a s b e e n c h a n g e d t o w h e r e t h e M i n i s t r y o f L a n d s a n d F o r e s t s now s e e s i t s r o l e a s " a n a c t i v e a g e n t p r o m o t i n g t h e d e v e l o p m e n t o f t h e r e s o u r c e . . . " One r e s u l t o f t h i s i s t h e p l a n t o a b o l i s h e x i s t i n g p r i v a t e t i m b e r l i m i t s a n d r e p l a c e t h e m w i t h v o l u m e a g r e e m e n t s o r c o n t r a c t s ' f o r 10 t o 20 y e a r p e r i o d s ( P o u l i o t , 1974). x i i i I n a r e c e n t s e r i e s o f p a p e r s i n The F o r e s t r y C h r o n i c l e , S m i t h (1977) r e v i e w e d t h e p r o g r e s s made b y t h e Q u e b e c G o v e r n m e n t i n i m p l e m e n t i n g i t s new t i m b e r a l l o c a t i o n p o l i c i e s , N a u t i y a l (1977) o u t l i n e d t h e f o r e s t l a n d t e n u r e s t r u c t u r e i n O n t a r i o a n d C a r r o l l (1977) d e s c r i b e d t h e p r e s e n t t i m b e r d i s p o s a l s y s t e m o f A l b e r t a . The t i m b e r a l l o c a t i o n p o l i c i e s o f B r i t i s h C o l u m b i a h a v e r e c e n t l y r e c e i v e d a n e x h a u s t i v e r e v i e w b y a s p e c i a l R o y a l C o m m i s s i o n ( P e a r s e , 1976). C o n c e r n w i t h t i m b e r a l l o c a t i o n p o l i c y i n N e w f o u n d -l a n d c a n t h u s b e v i e w e d a s p a r t o f a n a t i o n a l t r e n d . T h i s t h e s i s s e e k s t o p r o v i d e a h i s t o r i c a l p e r s p e c t i v e t o t h i s c o n c e r n b y e x a m i n i n g t h e t i m b e r a l l o c a t i o n p o l i c i e s o f e a r l y N e w f o u n d l a n d G o v e r n m e n t s a n d a s s e s s i n g t h e r e s u l t s t h e y a c h i e v e d . x i v ACKNOWLEDGMENTS R e s e a r c h f o r t h i s t h e s i s wa s c a r r i e d o n , w i t h some m a j o r i n t e r r u p t i o n s , i n S t . J o h n ' s f r o m ' t h e f a l l o f 1972 t o t h e end o f 1977, w h i l e I w a s e m p l o y e d a t t h e N e w f o u n d l a n d F o r e s t R e s e a r c h C e n t r e , C a n a d i a n F o r e s t r y S e r v i c e , E n v i r o n -m e n t C a n a d a . F r o m t h e b e g i n n i n g I r e c e i v e d f u l l c o - o p e r a t i o n f r o m t h e D e p a r t m e n t o f F o r e s t r y a n d A g r i c u l t u r e o f t h e P r o v i n c i a l G o v e r n m e n t . I am e s p e c i a l l y i n d e b t e d t o M r . R .D . S h e p p a r d , A s s i s t a n t D e p u t y M i n i s t e r o f F o r e s t r y , d u r i n g t h e e a r l y s t a g e s o f r e s e a r c h , f o r a l l o w i n g me a c c e s s t o h i s t o r i c a l r e c o r d s o f t h e D e p a r t m e n t . M r . J . A . B r e n n a n , p r e s e n t A s s i s t a n t D e p u t y M i n i s t e r o f F o r e s t r y , a n d M r . A . C . McEwen , f o r m e r D i r e c t o r o f P o l i c y a n d P l a n n i n g , a l s o p r o v i d e d v a l u a b l e a s s i s t a n c e . V a r i o u s member s o f t h e s t a f f o f t h e C r own L a n d s D i v i s i o n o f t h e D e p a r t m e n t h e l p e d i n l o c a t i n g o l d r e c o r d s a n d m a p s . I m u s t e s p e c i a l l y a c k n o w l e d g e t h e a s s i s t a n c e o f M r . W.B . T i t f o r d , f o r m e r C h i e f D r a u g h t s m a n w i t h t h e D i v i s i o n , who c a r r i e d o u t a s p e c i a l s e a r c h o f d e p a r t m e n t a l r e c o r d s w h i c h h e h a d c o m p i l e d f o r i n f o r m a t i o n ( p a r t i c u l a r l y map s ) on o l d t i m b e r o w n e r s h i p s . M r . E . L e a r n i n g a n d M r s . E . H a n t o n o f t h e R e c o r d s R e g i s t r y a s s i s t e d me i n l o c a t i n g o l d d o c u m e n t s r e l a t i n g t o f o r e s t l a n d t e n u r e . M r . B . D e l a n e y , D i r e c t o r x v o f F o r e s t I n v e n t o r y , a n d M r . M . R o g e r s o f t h e P h o t o g r a p h i c U n i t o f t h e I n v e n t o r y D i v i s i o n h e l p e d b y a r r a n g i n g t h e p h o t o g r a p h i c r e p r o d u c t i o n o f t h e o n l y a v a i l a b l e c o p i e s o f c e r t a i n o l d t i m b e r l i m i t m a p s . A c o n s i d e r a b l e amount o f r e s e a r c h e f f o r t w a s s p e n t i n d o c u m e n t i n g s a l e s o f t i m b e r l i c e n s e s i n t h e R e g i s t r y o f D e e d s , C o m p a n i e s a n d S e c u r i t i e s o f t h e N e w f o u n d -l a n d D e p a r t m e n t o f J u s t i c e . I n t h i s w o r k I r e c e i v e d t h e c o - o p e r a t i o n o f t h e R e g i s t r a r , M r . G e r a l d T e s s i e r a n d h i s s t a f f . M r . D a v i d D a v i s , C h i e f o f R e s e a r c h a t t h e N e w f o u n d -l a n d A r c h i v e s , D e p a r t m e n t o f T o u r i s m , a n d t h e s t a f f a t t h e A r c h i v e s , p r o v i d e d i n v a l u a b l e a s s i s t a n c e i n l o c a t i n g a n d p h o t o c o p y i n g many o r i g i n a l g o v e r n m e n t d o c u m e n t s r e l a t i n g t o t i m b e r a l l o c a t i o n p o l i c y . S i m i l a r h e l p wa s r e c e i v e d f r o m M i s s Norma J e a n R i c h a r d s o f t h e L e g i s l a t i v e L i b r a r y , N e w -f o u n d l a n d Hou se o f A s s e m b l y a n d f r o m M r s . Mona P e a r c e o f t h e Law L i b r a r y o f t h e D e p a r t m e n t o f J u s t i c e . M o s t i n f o r m a t i o n on t h e e a r l y o p e r a t i o n s o f t h e p u l p a n d p a p e r c o m p a n i e s a t G r a n d F a l l s a n d C o r n e r B r o o k w a s o b t a i n e d f r o m p u b l i s h e d s o u r c e s o r f r o m G o v e r n m e n t r e c o r d s . M r . M . C . V a r d y , W o o d l a n d s M a n a g e r o f B o w a t e r N e w f o u n d l a n d L i m i t e d o f C o r n e r B r o o k , M r . M . S q u i r e s ( C h i e f F o r e s t e r ) a n d M r . J . C u r r a n o f P r i c e ( N f l d . ) P u l p a n d P a p e r L i m i t e d , a l l p r o v i d e d a d d i t i o n a l d o c u m e n t a t i o n a n d h e l p e d w i t h g e n e r a l d i s c u s s i o n s o f p a s t company o p e r a t i o n s . I am a l s o i n d e b t e d t o M r . F r e d F i t z p a t r i c k , f o r m e r Company S o l i c i t o r x v i w i t h B o w a t e r N e w f o u n d l a n d L i m i t e d , f o r d i s c u s s i o n a n d a s s i s t a n c e p r o v i d e d i n t h e e a r l y s t a g e s o f my r e s e a r c h . I wa s f u r t h e r a s s i s t e d b y M r . J . D o n n e l l y a n d M r . D. S t o n e , T e c h n i c i a n s on t h e s t a f f o f t h e N e w f o u n d l a n d F o r e s t R e s e a r c h C e n t r e . M r . D o n n e l l y c o m p i l e d a c o m p l e t e s e t o f N e w f o u n d l a n d F o r e s t r y L e g i s l a t i o n , a n d M r . D o n n e l l y a n d M r . S t o n e n e a t l y d r a f t e d c o r r e c t i o n s t o maps a n d t u r n e d my r o u g h d r a f t c h a r t s i n t o t h e f i g u r e s s p a c e d t h r o u g h o u t t h e t h e s i s . Map s 2, 3? 4- a n d 5 i n A p p e n d i x 7 w e r e d r a f t e d b y M r . D o n n e l l y . M r . Don C r i g h t o f t h e G r a p h i c S e c t i o n , I n f o r m a t i o n S e r v i c e s D i r e c t o r a t e , E n v i r o n m e n t C a n a d a , O t t a w a , s u p e r v i s e d t h e r e p r o d u c t i o n o f Map 1 i n A p p e n d i x 7. M r . D. N i c k e r s o n , f o r m e r l y w i t h t h e N e w f o u n d l a n d F o r e s t R e s e a r c h C e n t r e ( r e t i r e d ) , M r . H . W h a l e n o f t h e P o l i t i c a l S c i e n c e F a c u l t y o f M e m o r i a l U n i v e r s i t y o f S t . J o h n ' s , a n d D r . R. F o r s t e r , C h i e f o f R e s o u r c e U t i l -i z a t i o n w i t h t h e C a n a d i a n F o r e s t r y S e r v i c e i n O t t a w a , a l l r e v i e w e d a n e a r l y d r a f t o f t h e t h e s i s l a t e i n 1975 a n d p r o v i d e d v a l u a b l e c r i t i c i s m s a n d c o m m e n t s . I owe a s p e c i a l d e b t o f g r a t i t u d e t o c e r t a i n member s o f my C a n d i d a t e ' s C o m m i t t e e , n a m e l y t h e C h a i r m a n , D r . D. H a l e y , D r . P . P e a r s e , D r . H . S m i t h a n d D r . J . T h i r g o o d , who p a t i e n t l y r e v i e w e d v a r i o u s d r a f t s s e n t t o t h e m a t i r r e g u l a r i n t e r v a l s a n d made v a l u a b l e s u g g e s t i o n s f o r c h a n g e s a n d i m p r o v e m e n t s . I h a v e t o t h a n k my m o t h e r , A g n e s M u n r o , a n d M r s . N e l l i e Osmond f o r r o u g h t y p i n g e a r l y d r a f t c o p i e s , x v i i a n d M r s . M a r g a r e t J e a n s who t y p e d t h e f i n a l c o p y . I am a l s o g r a t e f u l t o my w i f e , L o r r a i n e , who p a t i e n t l y e n d u r e d c o n s i d e r a b l e i n c o n v e n i e n c e d u r i n g my y e a r s i n g r a d u a t e s c h o o l a n d who q u i e t l y e n c o u r a g e d me t o s e e t h i s p r o j e c t t h r o u g h t o c o m p l e t i o n . F i n a l l y t h i s w o r k wa s made p o s s i b l e b y one p e r s o n , D r . W . J . C a r r o l l , D i r e c t o r o f t h e N e w f o u n d l a n d F o r e s t R e s e a r c h C e n t r e , who p r o v i d e d me w i t h t h e m o s t v i t a l r e s o u r c e o f a l l , t i m e . He e n c o u r a g e d me t o a s s i g n a h i g h p r i o r i t y t o t h e c o m p l e t i o n o f t h i s p r o j e c t a n d r e l e a s e d me f r o m o t h e r d u t i e s w h e n e v e r p o s s i b l e . The a b o v e p e o p l e m u s t r e c e i v e a l a r g e s h a r e o f t h e c r e d i t f o r a n y m e r i t c o n t a i n e d i n t h e f o l l o w i n g p a g e s . I a l o n e am r e s p o n s i b l e f o r a n y e r r o r s o r o m i s s i o n s . x v i i i PART I INTRODUCTION CHAPTER I. J U S T I F I C A T I O N FOR THE STUDY CHAPTER I I . BACKGROUND TO NEWFOUNDLAND AND I T S FOREST RESOURCE 2 CHAPTER I SCOPE OF THE THES I S T i m b e r A l l o c a t i o n P o l i c y i n N e w f o u n d l a n d R e c e n t c o n c e r n o f t h e G o v e r n m e n t o f N e w f o u n d l a n d o v e r management o f t h e f o r e s t r e s o u r c e c a n be v i e w e d a s p a r t o f a w i d e s p r e a d n a t i o n a l t r e n d w h i c h r e f l e c t s i n c r e a s i n g p u b l i c i n t e r e s t i n management o f n a t u r a l r e s o u r c e s . I n 1972 a s p e c i a l F e d e r a l - P r o v i n c i a l T a s k F o r c e on F o r e s t r y was a p p o i n t e d t o c a r r y o u t a d e t a i l e d r e v i e w o f t h e f o r e s t r e s o u r c e a n d make r e c o m m e n d a t i o n s f o r a n i m p r o v e d s y s t e m o f f o r e s t management a n d g r e a t e r wood u t i l i z a t i o n . T h e T a s k F o r c e c o m p l e t e d i t s r e p o r t ( S h e p p a r d a n d C a r r o l l , 1973) a n d , among o t h e r t h i n g s , r e c o m m e n d e d i n c r e a s e d g o v e r n m e n t s u p e r -v i s i o n o f l i m i t a r e a s u n d e r t h e c o n t r o l o f t h e p u l p a n d p a p e r i n d u s t r y . The T a s k F o r c e c a r r i e d o u t i t s w o r k on a v e r y r e s t r i c t e d t i m e s c h e d u l e a n d w a s u n a b l e t o u n d e r t a k e a t h o r o u g h r e v i e w o f p a s t t i m b e r a l l o c a t i o n p o l i c i e s a n d t h e i r e f f e c t on t h e d e v e l o p m e n t o f f o r e s t i n d u s t r y i n N e w f o u n d l a n d . The m a i n o b j e c t i v e o f t h i s t h e s i s i s t o f i l l i n t h i s s u b s t a n t i a l g a p i n t h e f o r e s t r y l i t e r a t u r e o f t h e p r o v i n c e a n d t o p r o v i d e a d d i t i o n a l i n s i g h t s i n t o t h e d e v e l o p m e n t o f f o r e s t p o l i c y a n d i n d u s t r y i n N e w f o u n d l a n d . 3 The p a s t t i m b e r a l l o c a t i o n p o l i c y o f N e w f o u n d l a n d h a s b e e n d e s c r i b e d i n g l o w i n g t e r m s b u t h a s a l s o b e e n s e v e r e l y c r i t i c i z e d . G r e e l e y (1953) s t a t e d t h a t N e w f o u n d l a n d h a d e x p e r i e n c e d a " v i g o r o u s a n d i n d i v i d u a l i s t i c f o r e s t d e v e l o p m e n t " . The t i m b e r l e a s e s a n d l i c e n s e s w e r e l o n g t e r m a n d no t i m b e r r o y a l t y o r s t u m p a g e c h a r g e s w e r e a s s e s s e d b u t " . . . f o r e s t m a n a g e m e n t , a t t h e o p e r a t o r s c o s t , a p p e a r s t o be o u t s t a n d i n g " . He c o n c l u d e d t h a t , " N e w f o u n d l a n d ' s p o l i c y h a d g o n e f a r t o w a r d c r e a t i n g t e n u r e s a s s e c u r e a s p r i v a t e o w n e r s h i p " . The A t l a n t i c D e v e l o p m e n t B o a r d (196&) on t h e o t h e r h a n d , c r i t i c i z e d t h e " s w e e p i n g c o n c e s s i o n s " t h a t h a d b e e n made t o a t t r a c t i n d u s t r y i n t h e e a r l y 1900's. I t s t a t e d t h a t , " t h e l a c k o f c l a u s e s p r o v i d i n g f o r p e r i o d i c r e - e x a m i n -a t i o n o f t h e a g r e e m e n t s was s h o r t - s i g h t e d " , a n d , " h a v i n g a b s o l u t e c o n t r o l o v e r t h e wood s u p p l i e s on t h e i r r e s p e c t i v e l i m i t s , t h e c o m p a n i e s do n o t p r a c t i c e a n y f o r m o f f o r e s t m a n a g e m e n t " . O n e ' s j u d g e m e n t o f t h e m e r i t s o f t h e s y s t e m w i l l o b v i o u s l y v a r y d e p e n d i n g on o n e ' s p o i n t o f v i e w . W h i l e t i m b e r a l l o c a t i o n p o l i c y was o n l y p a r t o f o v e r a l l f o r e s t p o l i c y , i t wa s t h e m o s t i m p o r t a n t a s p e c t o f f o r e s t p o l i c y i n N e w f o u n d l a n d . I n f a c t , one g e t s t h e i m p r e s s i o n t h a t o n c e t h e q u e s t i o n o f o w n e r s h i p o f t i m b e r r e s o u r c e s wa s s e t t l e d i n t h e e a r l y 1900's t h e g o v e r n m e n t t e n d e d t o f o r g e t a b o u t f o r e s t p o l i c y a l t o g e t h e r ' - , u n t i l t h e m i d 1930's. T h i s i s n o t q u i t e t r u e . A s e a r l y a s 1905 ( W i l t o n a n d E v a n s , 1974) "the G o v e r n m e n t wa s i n v o l v e d w i t h k t h e e s t a b l i s h m e n t o f a f i r e s u p p r e s s i o n o r g a n i z a t i o n a n d a C h i e f Woods R a n g e r wa s a p p o i n t e d t o s u p e r v i s e f i r e c o n t r o l o p e r a t i o n s . G o v e r n m e n t i n v o l v e m e n t i n f i r e p r o t e c t i o n w a s l i m i t e d b e c a u s e ( a l t h o u g h n u m b e r s o f s e a s o n a l e m p l o y e e s w e r e u s u a l l y h i r e d ) up t o 1934 t h e r e w a s s t i l l o n l y one f u l l - t i m e e m p l o y e e , t h e C h i e f Woods R a n g e r , r e s p o n s i b l e f o r G o v e r n m e n t f i r e p r o t e c t i o n o p e r a t i o n s ( K e n n e d y , 1955)- The G o v e r n m e n t wa s a l s o c o n c e r n e d f r o m t i m e t o t i m e a b o u t w h e t h e r o r n o t i t s h o u l d a l l o w t h e e x p o r t o f u n p r o c e s s e d wood f r o m t h e c o u n t r y . G e n e r a l l y t h e i n t e n t wa s t o p r o h i b i t s u c h e x p o r t s , b u t i n t i m e s o f e c o n o m i c n e c e s s i t y , t h e r e s t r i c t i o n on t h e e x p o r t o f u n p r o c e s s e d wood t e n d e d t o be l i f t e d , s o t h a t s h o r t - t e r m e m p l o y m e n t c o u l d b e p r o v i d e d i n o u t l y i n g a r e a s . G o v e r n m e n t p o l i c y i n t h e a r e a s o f f i r e p r o t e c t i o n a n d t r a d e i n u n p r o -c e s s e d wood w a s o f s e c o n d a r y i m p o r t a n c e c o m p a r e d t o t i m b e r a l l o c a t i o n p o l i c y b e c a u s e t h i s e f f e c t i v e l y d e t e r m i n e d t h e o w n e r s h i p o f t h e f o r e s t r e s o u r c e s o f t h e I s l a n d f o r p e r i o d s o f u p t o 99 y e a r s a n d l o n g e r , a n d s e r i o u s l y l i m i t e d t h e r e s o u r c e management o p t i o n s o f g o v e r n m e n t s i n l a t e r y e a r s . H y p o t h e s e s C o n c e r n i n g H i s t o r i c T i m b e r A l l o c a t i o n P o l i c y A l t h o u g h n o t v e r y w e l l d o c u m e n t e d i n p r i n t , t h e r e a r e a n u m b e r o f h y p o t h e s e s o r b e l i e f s a b o u t t h e h i s t o r i c t i m b e r a l l o c a t i o n s y s t e m h e l d b y r e s o u r c e m a n a g e r s f a m i l i a r w i t h c o n d i t i o n s i n N e w f o u n d l a n d . T h e s e p r o v i d e a f r a m e o f r e f e r e n c e f o r t h e s t u d y a n d a r e s u m m a r i z e d b e l o w . 5 1) The pattern of use of the coastal forest resource was established centuries ago by transient fishermen and early settlers and this has had a profound influence on public timber allocation policy. The coastal forest was used as a source of fuel and raw materials by v i s i t i n g European fishermen soon after John Cabot discovered the Island in 1497 and reported the surrounding waters to be teeming with codfish. In the centuries that followed hundreds of small fishing settle-ments were established around the coast. The main economic activity of these settlers was fishing but they also made intensive use of the forest resource. Strong traditional rights were established which s t i l l persist today and have been an important (though poorly defined) consideration in public timber allocation policy. 2) Early government timber allocation policies for the forest resource of the interior of the Island and for Labrador were a giveaway. This i s perhaps the most widely held belief con-cerning the timber allocation system in Newfoundland. The Report of the Newfoundland Royal Commission on Forestry of 1955 discussed the dominant position of the two pulp and paper companies located at Grand Falls and Corner Brook and stated: These two pulp and paper companies control the bulk of the Island*s forest resources. The way i n which the hands of the govern-ment of the province have been tied by the terms and conditions of the agreements obtained by these companies i n past years has been a revelation to the Commission (Kennedy, 1955). 6 The inference i s that, in i t s original timber allocations, the Government practically gave away the interior forest resources to the pulp and paper companies in return for the industries they established. The companies got valuable limit areas for practically nothing. The generous terms and conditions under which rights to the forest resource were allocated allowed the pulp and paper companies to capture most of the surplus value or economic rent accruing through i t s development. Direct revenues to the government were minimal and could have been higher. 3) The early timber allocation policies led to undue con-centration of ownership of the interior timber resource on the Island of Newfoundland. The concentration of timber ownership in the interior w i l l be described. By 'undue concentration* i s meant the extent to which the pulp and paper companies acquired and held timber resources i n excess of their needs and thus prevented the establishment of additional forest industries with associated employment and income benefits. After the concentration of timber ownership i n the interior took place, any subsequent large-scale devel-opment of wood-based industry could only have been accomm-odated i f cutting rights to the limit areas of one or both pulp and paper companies had been obtained. This has not proved to be easy. Both companies have been reluctant to part with any substantial portion of their timber resource, claiming a l l of i t i s required to support current and 7 anticipated requirements. Many resource managers and others within government have f e l t that i f a reorganization of timber limits had been achieved, further large-scale forest-based development at sites other than Grand Falls and Gorner Brook would have been feasible. Method The only way i n which these hypotheses could be tested was to examine the record of the past and to evaluate policies that were adopted in terms of the results they pro-duced. A considerable amount of information on the develop-ment of traditional settlers* rights to the coastal forest was available (usually as casual references) in hi s t o r i c a l accounts of the Newfoundland fishery. This information was uncovered i n a review of relevant material at the Centre for Newfoundland Studies at Memorial University at St. John^. Information on timber allocation legislation was, of course, available i n the published statutes of Newfoundland. The published reports on comparatively recent events, such as royal commission studies, were consulted as necessary. There were, however, serious gaps in the published information available. The record of the chain of events that occurred after timber allocation legislation was f i r s t enacted in the late 18*00* s, u n t i l the interior forest lands 8 •were a c q u i r e d b y t h e t w o m a j o r p u l p a n d p a p e r c o m p a n i e s ( i n c o m p a r a t i v e l y r e c e n t t i m e s ) , w a s a v i r t u a l b l a n k . R e c o n s t r u c t i n g t h i s s e q u e n c e o f e v e n t s w a s a m a j o r r e s e a r c h u n d e r t a k i n g . R e m a i n i n g r e c o r d s o f t h e o l d D e p a r t m e n t o f A g r i c u l t u r e a n d M i n e s a n d o t h e r g o v e r n m e n t d e p a r t m e n t s w e r e e x a m i n e d i n d e t a i l t o d e t e r m i n e t h e n u m b e r s a n d k i n d s o f t i m b e r a l l o c a t i o n s t h a t w e r e m a d e , t h e a r e a s t h a t w e r e a l i e n a t e d a n d t h e i n d u s t r i a l d e v e l o p m e n t s w h i c h r e s u l t e d . The t h e s i s p u t s t h i s s e r i e s o f e v e n t s i n t o t h e p u b l i c r e c o r d f o r t h e f i r s t t i m e . Once t h e r e c o r d w a s e s t a b l i s h e d t h e h y p o t h e s e s c o u l d be e v a l u a t e d a g a i n s t t h e h i s t o r i c a l e v i d e n c e a n d t h e e c o n o m i c c o n c e p t s o f i n t r a m a r g i n a l , m a r g i n a l a n d s u b m a r g i n a l r e s o u r c e s . F o r e x a m p l e , d i d t h e t w o p u l p a n d p a p e r c o m p a n i e s w h i c h e m e r g e d a s t h e d o m i n a n t p r i v a t e t i m b e r o w n e r s g a i n c o n t r o l o f a r i c h i n t r a m a r g i n a l r e s o u r c e o r ; w e r e t h e s e l a r g e l y m a r g i n a l f o r e s t l a n d s ? Was t h e c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p w h i c h o c c u r r e d " b a d " o r w a s i t t h e b e s t t h a t c o u l d b e o b t a i n e d u n d e r t h e c i r c u m s t a n c e s ? T h i s k i n d o f a n a l y s i s o f t i m b e r a l l o c a t i o n p o l i c y h a s n e v e r b e e n c a r r i e d o u t f o r N e w f o u n d l a n d a n d t h e a n s w e r s t o t h e s e a n d r e l a t e d q u e s t i o n s p r o v i d e i n t e r e s t i n g e x p l a n a t i o n s o f p a s t g o v e r n m e n t p o l i c i e s a n d s u g g e s t u s e f u l g u i d e l i n e s f o r t h e f u t u r e management o f t h e p r o v i n c i a l f o r e s t r e s o u r c e . 9 C o n v e n t i o n a l E n g l i s h u n i t s o f m e a s u r e a r e u s e d t h r o u g h o u t t h e t h e s i s . Wood v o l u m e s a r e e x p r e s s e d i n c u n i t s (100 c u b i c f e e t o f s o l i d t i m b e r ) e x c e p t f o r o c c a s i o n a l r e f e r e n c e s t o c o r d s i n some q u o t a t i o n s f r o m t h e r e f e r e n c e m a t e r i a l . A c o r d i n N e w f o u n d l a n d i s u s u a l l y a s s u m e d t o c o n t a i n 85 c u b i c f e e t o f s o l i d t i m b e r a n d i s c o n v e r t e d t o c u n i t s on t h e b a s i s o f 1.18 c o r d s p e r c u n i t . L u m b e r p r o -d u c t i o n i s g i v e n i n b o a r d f e e t a n d i n N e w f o u n d l a n d t h i s i s u s u a l l y a m e a s u r e o f a c t u a l m i l l o u t p u t r a t h e r t h a n a s c a l e d e s t i m a t e o f l u m b e r c o n t e n t o f s a w l o g s . I t i s u s u a l l y a s s u m e d t h a t 2 c o r d s o r 1.7 c u n i t s o f s a w l o g s w i l l y i e l d 1000 b o a r d f e e t o f l u m b e r . F o r c o n v e r s i o n f r o m E n g l i s h t o m e t r i c u n i t s , t h e f o l l o w i n g f a c t o r s may be u s e d ( L e e , 1976): 1 i n c h = 2.54 c e n t i m e t r e s 1 m i l e = 1.609 k i l o m e t r e s 1 a c r e = O.405 h e c t a r e s 1 s q u a r e m i l e = 2.590 s q u a r e k i l o m e t r e s 1 c u n i t = 2.832 c u b i c m e t r e s 1 t o n = 0.907 t o n n e s 10 T h e s i s O u t l i n e The t h e s i s i s d i v i d e d i n t o f o u r " " ' m a i n p a r t s . P a r t I, t h e i n t r o d u c t i o n , c o n t a i n s t w o c h a p t e r s . C h a p t e r I i n c l u d e s t h e h y p o t h e s e s a n d j u s t i f i c a t i o n f o r t h e s t u d y a n d C h a p t e r I I p r o v i d e s a g e o g r a p h i c o u t l i n e o f N e w f o u n d l a n d a n d t h e i m p o r t a n c e o f i t s f o r e s t r e s o u r c e . P a r t I I c o n t a i n s s i x c h a p t e r s on h i s t o r i c a l t i m b e r a l l o c a t i o n p o l i c y a n d t h e r e s u l t i n g d e v e l o p m e n t s i n f o r e s t i n d u s t r y a n d t i m b e r o w n e r s h i p . C h a p t e r I I I d e s c r i b e s t h e d e v e l o p m e n t o f e a r l y , d i f f e r i n g a t t i t u d e s t o w a r d s t h e u s e o f t h e c o a s t a l a n d i n t e r i o r f o r e s t a r e a s . C h a p t e r I V o u t l i n e s t h e p r o c e s s b y w h i c h t h e i n t e r i o r f o r e s t a r e a s w e r e a l l o c a t e d d u r i n g t h e l a t e l S O O ' s a n d e a r l y 1 9 0 0 ' s . C h a p t e r V e x p l a i n s t h e e m e r g e n c e o f t h e p u l p a n d p a p e r i n d u s t r y a n d t h e way i n w h i c h t w o c o m p a n i e s g a i n e d c o n t r o l o v e r t h e i n t e r i o r f o r e s t r e s o u r c e on t h e I s l a n d . The v a r i o u s a t t e m p t s a t d e v e l o p m e n t o f t h e f o r e s t r e s o u r c e s i n L a b r a d o r a r e o u t l i n e d i n C h a p t e r V I . C h a p t e r V I I d e a l s w i t h t h e v a l u e o f t i m b e r c u t t i n g r i g h t s on t h e I s l a n d a s i n d i c a t e d b y t i m b e r l i c e n s e s a l e s a n d some g e n e r a l e s t i m a t e s o f t h e v a l u e o f t h e l i m i t a r e a s o f some c o m p a n i e s . C h a p t e r V I I I d e s c r i b e s t h e d e v e l o p -men t o f f o r e s t i n d u s t r y w h i c h f o l l o w e d t h e e s t a b l i s h m e n t o f t h e t i m b e r a l l o c a t i o n s y s t e m . P a r t I I I c o n t a i n s t h r e e c h a p t e r s w h i c h e v a l u a t e t h e h y p o t h e s e s s t a t e d i n C h a p t e r I. C h a p t e r I X a s s e s s e s t h e i n f l u e n c e o f t r a d i t i o n a n d h i s t o r i c a l a t t i t u d e s on p u b l i c 11 t i m b e r a l l o c a t i o n p o l i c y ; C h a p t e r X c o n s i d e r s t h e q u e s t i o n o f w h e t h e r o r n o t t i m b e r a l l o c a t i o n p o l i c i e s f o r i n l a n d f o r e s t a r e a s w e r e a g i v e a w a y o f e c o n o m i c r e n t s ; a n d C h a p t e r X I d e a l s w i t h t h e q u e s t i o n o f c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p on t h e I s l a n d . P a r t I V c o n t a i n s C h a p t e r X I I i n w h i c h t h e m a j o r c o n c l u s i o n s a n d r e c o m m e n d a t i o n s o f t h e t h e s i s a r e s t a t e d . 12 CHAPTER I I BACKGROUND TO NEWFOUNDLAND AND I T S FOREST RESOURCE The f o l l o w i n g g e o g r a p h i c a l o u t l i n e o f N e w f o u n d l a n d , i t s f o r e s t r e s o u r c e a n d f o r e s t - b a s e d i n d u s t r i e s i s i n c l u d e d h e r e t o p r o v i d e a g e n e r a l b a c k g r o u n d t o t h e m a i n p a r t o f t h e t h e s i s . The r e a d e r a l r e a d y f a m i l i a r w i t h t h i s s u b j e c t may w i s h t o p a s s o v e r t h i s c h a p t e r a n d p r o c e e d t o t h e n e x t s e c t i o n . The L a n d The I s l a n d o f N e w f o u n d l a n d i s p a r t o f t h e C a n a d i a n p o r t i o n o f t h e A p p a l a c h i a n P h y s i o g r a p h i c R e g i o n o f N o r t h A m e r i c a (Rowe, 1972). I n t h i s r e g i o n i n C a n a d a p o d z o l i c s o i l s p r e d o m i n a t e b u t i n N e w f o u n d l a n d e x t e n s i v e a r e a s o f r o c k a n d o r g a n i c s o i l s a r e a l s o e n c o u n t e r e d . The I s l a n d i s r o u g h l y t r i a n g u l a r i n s h a p e ( F i g u r e 1). The S o u t h a n d Wes t C o a s t s w h i c h r e s p e c t i v e l y f o r m t h e b a s e a n d one s i d e o f t h e t r i a n g l e a r e a p p r o x i m a t e l y 300 m i l e s l o n g . The N o r t h e a s t C o a s t , w h i c h f o r m s t h e r a g g e d edge o f t h e t h i r d s i d e i s d e e p l y i n d e n t e d w i t h many i s l a n d s a n d i s s omewhat i n e x c e s s o f 300 m i l e s i n o v e r a l l l e n g t h . The L o n g Range M o u n t a i n s e x t e n d a l o n g t h e W e s t C o a s t . The l a n d r i s e s s t e e p l y f r o m t h e s e a o r f r o m a n a r r o w c o a s t a l p l a i n 13 14 to a maximum height of 2,651 feet to form the edge of a lake-studded plateau that slopes to the north east to elevations that do not exceed a few hundred feet (Encyclopedia Britannica, 1974). The i n t e r i o r plateau i s gently undulating. Most of the r i v e r s and vall e y s are oriented i n a northeast - southwest d i r e c t i o n . The submerged coastline i s generally rugged with many bays and i n l e t s . The gross area of the Island i s 43,028 square miles and t h i s includes 4,347 square miles of water surface (Newfoundland, 1974). Newfoundland Labrador l i e s completely within the area of precambrian rock known as the Canadian Shield (Rowe, 1974). The term Labrador as used here applies to the 111,750 square mile eastern section of the Labrador-Ungava Peninsula whose waters drain into the A t l a n t i c Ocean. This area was assigned to Newfoundland i n a 1927 decision of the Privy Council which s e t t l e d a long-standing boundary dispute between Newfoundland and Canada (Wilton, 1964). Like the Island, Labrador can be roughly described as a tr i a n g l e (Figure 1). The base i s the 400-mile southern boundary with Quebec. The sides are formed on the east by the 700 mile long, deeply indented A t l a n t i c coastline and on the west by the Quebec boundary which, along t h i s section, i s mainly the height of land between the r i v e r s draining east to the A t l a n t i c and those draining west and north to Ungava Bay. Cape Chidley, at l a t i t u d e 60°20" north, forms the apex of the Labrador t r i a n g l e . 15 The m a i n m o u n t a i n r a n g e s i n L a b r a d o r a r e t h e T o r n g a t s w h i c h r i s e a b r u p t l y t o 5500 f e e t a l o n g t h e n o r t h e r n c o a s t a n d t h e M e a l y M o u n t a i n s w h i c h r e a c h h e i g h t s o f 4300 f e e t a n d a r e l o c a t e d i m m e d i a t e l y s o u t h o f L a k e M e l v i l l e , w h i c h i s a d e e p i n d e n t a t i o n o f t h e A t l a n t i c c o a s t l i n e . The r e s t o f t h e i n t e r i o r h a s b e e n d e s c r i b e d a s a n u n d u l a t i n g , l a k e - s p o t t e d , p l a t e a u ( E n c y c l o p e d i a B r i t a n n i c a , 1974). T h i s p l a t e a u i s t i l t e d t o w a r d s t h e n o r t h e a s t a n d i s a b o u t 2500 f e e t a b o v e s e a l e v e l i n t h e s o u t h w e s t , 1700 f e e t i n t h e n o r t h w e s t , a n d f r o m j u s t u n d e r 1000 f e e t t o 1200 f e e t i n t h e e a s t . The i n t e r i o r h a s b e e n s c o u r e d b y g l a c i a t i o n . T h e r e a r e l a r g e a r e a s o f .swamp a n d m u s k e g a n d l o w l y i n g a r e a s a r e o f t e n f i l l e d w i t h g l a c i a l t i l l , s a n d s a n d p a t c h e s o f l a k e c l a y ( W i l t o n , 196/+). T h e e f f e c t s o f m i d l a t i t u d e s t o r m s d o m i n a t e t h e c l i m a t e o f b o t h t h e I s l a n d a n d L a b r a d o r ( E n c y c l o p e d i a B r i t a n n i c a , 1974)• Warm a i r d r a w n f r o m t h e s o u t h b y t h e s e s t o r m s c o n t r i b u t e s t o h i g h p r e c i p i t a t i o n on t h e S o u t h C o a s t o f t h e I s l a n d w h i l e e a s t e r l y w i n d s p r e c e d i n g e a c h d i s t u r b -a n c e b l o w a c r o s s t h e c o l d L a b r a d o r c u r r e n t k e e p i n g summers c o o l a n d r e t a r d i n g t h e a r r i v a l o f s p r i n g . F o l l o w i n g t h e p a s s a g e o f e a c h s t o r m , n o r t h w e s t w i n d s b r i n g i n A r c t i c a i r w h i c h a l s o c o n t r i b u t e s t o t h e c o o l c l i m a t e ( E n c y c l o p e d i a B r i t a n n i c a , 1974). Mean t o t a l a n n u a l p r e c i p i t a t i o n r a n g e s f r o m 71 i n c h e s on p a r t s o f t h e S o u t h a n d W e s t C o a s t s o f t h e I s l a n d t o a b o u t 24 i n c h e s i n N o r t h e r n L a b r a d o r ; mean 16 t o t a l a n n u a l s n o w f a l l r a n g e s f r o m 79 t o o v e r 197 i n c h e s i n L a b r a d o r a n d f r o m 79 t o 157 i n c h e s o n t h e I s l a n d ; a n d mean a n n u a l t e m p e r a t u r e s r a n g e m a i n l y f r o m 2.5 d e g r e e s ( C e l s i u s ) t o 5 d e g r e e s on t h e I s l a n d a n d f r o m -5 d e g r e e s t o 0 d e g r e e s o v e r m o s t o f L a b r a d o r ( P e a c h , 1976). The mean a n n u a l l e n g t h o f t h e g r o w i n g s e a s o n v a r i e s f r o m 120 d a y s t o o v e r 160 d a y s f o r t h e I s l a n d a n d i s a b o u t 120 d a y s f o r t h e f o r e s t e d a r e a s o f L a b r a d o r (Rowe, 1972). Good a g r i c u l t u r a l l a n d i s v e r y s c a r c e i n N e w f o u n d l a n d . The r e c e n t f o r e s t i n v e n t o r y f o r t h e I s l a n d c l a s s i f i e d o n l y 15,600 a c r e s a s a g r i c u l t u r a l l a n d ( N e w f o u n d l a n d , 1974). S e t t l e r s i n c o a s t a l a r e a s h a v e t r a d i t i o n a l l y c u l t i v a t e d s m a l l g a r d e n p l o t s f o r v e g e t a b l e p r o d u c t i o n b u t l a r g e s c a l e a g r i c u l t u r a l d e v e l o p m e n t o f i n l a n d a r e a s h a s n e v e r o c c u r r e d i n N e w f o u n d l a n d t o t h e e x t e n t i t h a s i n o t h e r p r o v i n c e s o f C a n a d a . The r u r a l economy o f t h e p r o v i n c e h a s b e e n l a r g e l y b a s e d on f i s h i n g , f o r e s t r y a n d m i n i n g a c t i v i t i e s . The P e o p l e a n d G o v e r n m e n t A s o f O c t o b e r 1975 t h e p o p u l a t i o n o f N e w f o u n d l a n d w a s 553,000 ( N e w f o u n d l a n d , 1976). O f t h i s t o t a l , a b o u t 95 p e r c e n t a r e o f B r i t i s h o r i g i n , n e a r l y 4 p e r c e n t a r e o f F r e n c h a n d C h a n n e l I s l a n d s e x t r a c t i o n a n d 0.3 p e r c e n t a r e n a t i v e I n d i a n a n d E s k i m o p e o p l e s ( E n c y c l o p e d i a B r i t a n n i c a , 1974). I n 1935 i t w a s e s t i m a t e d t h a t t h e r e w e r e a t o t a l o f 1292 s e t t l e m e n t s a n d t h a t 50 p e r c e n t o f t h e p o p u l a t i o n 17 (of about 300,000) was located i n 1192 communities which contained 500 persons or less (Mackay, 1946). In recent years many small settlements have been abandoned and about 57 per cent of the population i s now classed as urban (Newfoundland, 1974)* The major area of population con-centration i s the Avalon Peninsula where approximately 41 per cent of the people reside. Only about 5 per cent of the population l i v e s i n Labrador. The major urban centres are St. John's (the c a p i t a l with 94,300 people), Corner Brook (26,500) and Grand Falls-Windsor (15,180), on the Island and Happy Valley-Goose Bay (6,700) and Labrador City-Wabush (10,000), i n Labrador. Newfoundland became a Canadian province i n 1949. The period from 1832 to 1855 was a time of p a r t i a l s e l f government with an elected Assembly and an appointed L e g i s l a t i v e Council and Governor. From 1855 to 1934 Newfoundland was an independent s e l f governing Dominion of the B r i t i s h Commonwealth with an elected House of Assembly, and an appointed L e g i s l a t i v e Council and Governor (Noel, 1971). This form of administration i s commonly referred to as Responsible Government. During the world depression of the 1930's, with the Government facing default i n interest payments on the national debt, a Royal Commission (known as the Amulree Commission which produced the Amulree Report) recommended the suspension of the constitution and the appointment of a 6 member 18 C o m m i s s i o n (3 f r o m G r e a t B r i t a i n a n d 3 f r o m N e w f o u n d l a n d ) a n d a G o v e r n o r t o a d m i n i s t e r t h e c o u n t r y u n t i l f i n a n c i a l s t a b i l i t y c o u l d b e r e s t o r e d ( A m u l r e e , 1933). T h i s i n t e r -l u d e i s common l y r e f e r r e d t o a s C o m m i s s i o n o f G o v e r n m e n t . The C o m m i s s i o n f u n c t i o n e d u n t i l 1949, when t h e p e o p l e v o t e d b y r e f e r e n d u m t o j o i n C a n a d a . P r i o r t o 1832 t h e r e wa s n o o f f i c i a l c u r r e n c y a n d a l l s o r t s o f B r i t i s h , A m e r i c a n a n d S p a n i s h , M e x i c a n a n d o t h e r c o i n s w e r e i n c i r c u l a t i o n . I n I832 a S t i r l i n g d o l l a r w a s l e g i s l a t e d b u t i t s r a t e o f e x c h a n g e ($4.00) i n r e s p e c t o f t h e B r i t i s h p o u n d w a s n o t e s t a b l i s h e d b y l e g i s l a t i o n u n t i l 1854 ( B e r t e a u , 1937). I n 1894 t h e t w o m a j o r l o c a l b a n k s f a i l e d d u r i n g a f i n a n c i a l c r i s i s a n d C a n a d i a n b a n k s e s t a b l i s h e d b r a n c h e s i n N e w f o u n d l a n d . S i n c e t h e n t h e C a n a d i a n d o l l a r h a s b e e n l e g a l t e n d e r ( M a c k a y , 1946). I n t h e l a t e 1940Ts N e w f o u n d l a n d wa s i n a v e r y u n d e v e l o p e d s t a t e c o m p a r e d t o o t h e r p a r t s o f C a n a d a . A m e n i t i e s s u c h a s m o t o r r o a d s a n d h y d r o - e l e c t r i c p o w e r w e r e l a r g e l y unknown ( N o e l , 1971). S i n c e u n i o n w i t h C a n a d a ( c ommon l y r e f e r r e d t o a s " C o n f e d e r a t i o n " ) t h e r e h a s b e e n a s u b s t a n t i a l i n c r e a s e i n b o t h t h e q u a n t i t y a n d q u a l i t y o f p u b l i c s e r v i c e s a n d a c o n s i d e r a b l e i m p r o v e m e n t i n o v e r a l l l i v i n g s t a n d a r d s . M a s s i v e p u b l i c i n f r a s t r u c t u r e e x p e n d i t u r e s h a v e b e e n made a n d t h e p e r c a p i t a i n c o m e , w h i c h i n 1949 w a s 51 p e r c e n t o f t h e C a n a d i a n a v e r a g e , h a d i n c r e a s e d t o 67 p e r c e n t b y 1974 ( A t l a n t i c P r o v i n c e s 19 E c o n o m i c C o u n c i l , 1976). I n s p i t e o f t h i s p r o g r e s s , t h e p e r c a p i t a i n c o m e was s t i l l t h e s e c o n d l o w e s t i n C a n a d a a n d t h e economy h a s become h e a v i l y d e p e n d e n t u p o n t r a n s f e r p a y m e n t s f r o m O t t a w a . T r a n s f e r p a y m e n t s c u r r e n t l y a c c o u n t f o r a p p r o x i m a t e l y 50 p e r c e n t o f t h e t o t a l r e v e n u e s o f t h e P r o v i n c i a l G o v e r n m e n t ( D o o d y , 1976). U n e m p l o y m e n t , a l w a y s a s e r i o u s p r o b l e m i n N e w f o u n d l a n d , c o n t i n u e s a t a l e v e l a b o u t d o u b l e t h e n a t i o n a l a v e r a g e . A c o n t i n u i n g h i g h p r i o r i t y g o a l o f t h e P r o v i n c i a l G o v e r n m e n t i s , u n d e r -s t a n d a b l y , t h e c r e a t i o n o f new j o b o p p o r t u n i t i e s t h r o u g h d e v e l o p m e n t o f n a t u r a l r e s o u r c e s . T h e _ F o r e s t The f o r e s t s on t h e I s l a n d a n d i n L a b r a d o r f o r m p a r t o f t h e B o r e a l F o r e s t R e g i o n o f C a n a d a (Rowe, 1972). The e x t e n t a n d q u a l i t y o f t h e r e s o u r c e was o u t l i n e d r e c e n t l y i n t h e R e p o r t o f t h e F e d e r a l - P r o v i n c i a l T a s k F o r c e on F o r e s t r y ( S h e p p a r d a n d C a r r o l l , 1973) a n d i n ' F o r e s t I n v e n -t o r y S t a t i s t i c s ' , a r e p o r t s u m m a r i z i n g t h e r e s u l t s o f a g l o b a l i n v e n t o r y o f t h e I s l a n d w h i c h w a s p u b l i s h e d b y t h e N e w f o u n d l a n d F o r e s t S e r v i c e i n 1974• A s e c o n d i n v e n t o r y r e p o r t , ' F o r e s t I n v e n t o r y S t a t i s t i c s , L a b r a d o r ' , wa s r e l e a s e d b y t h e F o r e s t S e r v i c e i n 1975. U n l e s s o t h e r w i s e n o t e d t h e i n f o r m a t i o n f o l l o w i n g on p r o v i n c i a l f o r e s t s wa s e x t r a c t e d f r o m t h e s e r e p o r t s . 20 I s l a n d A p p r o x i m a t e l y 9-5 m i l l i o n a c r e s o f p r o d u c t i v e f o r e s t s ^ a r e d i s t r i b u t e d t h r o u g h o u t 15-4 m i l l i o n a c r e s o f f o r e s t l a n d on t h e I s l a n d ( s e e F i g u r e 2 f o r o u t l i n e o f t o t a l f o r e s t a r e a ) . The m o s t common s p e c i e s a r e b a l s a m f i r , ( A b i e s b a l s a m e a ( L ) M i l l . ) , 2 b l a c k s p r u c e ( P i c e a  m a r i a n a ( M i l l . ) B . S . P . ) , a n d w h i t e b i r c h ( B e t u l a p a p y r i f e r a M a r s h . ) . W h i t e s p r u c e ( P i c e a g l a u c a (Moench ) V o s s ) , t a m a r a c k ( L a r i x l a r i c i n a (Du R o i ) K. K o c h ) , a n d w h i t e p i n e ( P i n u s s t r o b u s L . ) a r e s o f t w o o d s w h i c h o f t e n o c c u r a s m i n o r c o m p o n e n t s i n f o r e s t s t a n d s . H a r d w o o d s o f s e c o n d a r y i m p o r t a n c e i n c l u d e y e l l o w b i r c h ( B e t u l a a l l e g h a n i e n s i s B r i t t o n ( B e t u l a l u t e a M i c h x . f . ) a n d t r e m b l i n g a s p e n ( P o p u l u s t r e m u l o i d e s M i c h x . ) . S o f t w o o d s t a n d s o c c u p y n e a r l y t h r e e q u a r t e r s o f a l l p r o d u c t i v e f o r e s t a r e a , m i x e d wood t y p e s a c c o u n t f o r a b o u t 15 p e r c e n t a n d p u r e h a r d w o o d s t a n d s make u p o n l y a b o u t 6 p e r c e n t . The b a l a n c e i s c l a s s i f i e d a s n o n r e g e n -e r a t i n g c u t o v e r a n d b u r n . The t o t a l g r o s s m e r c h a n t a b l e v o l u m e ^ on t h e I s l a n d i s 99.5 m i l l i o n c u n i t s , 90 p e r c e n t • ' -De f i ned b y t h e N e w f o u n d l a n d ' F o r e s t S e r v i c e a s f o r e s t l a n d c a p a b l e o f p r o d u c i n g a s t a n d o f 5 o r mo re c u n i t s p e r a c r e . R o t a t i o n p e r i o d s r a n g e b e t w e e n 60 & 120 y r s . ^ S c i e n t i f i c names f r o m H o s i e (1969). 3 D e f i n e d b y t h e N e w f o u n d l a n d F o r e s t S e r v i c e a s : v o l u m e o f a t r e e s t a n d o r f o r e s t e x c l u d i n g b a r k , s t u m p , t o p , r o o t s a n d b r a n c h e s b u t i n c l u d i n g c u l l . Dead t r e e s a r e e x c l u d e d . S tump h e i g h t i s 6 i n c h e s a n d t o p d i a m e t e r i s 3 i n c h e s o u t s i d e b a r k . Sea l * of ml Its 0 3 0 Liffi S T G H K E Y : Forested Areas S-Softwood Cover Type T- Softwood-Hardwood Type G ••Hardwood-Softwood Type H-Hardwood Type Heavy lines are forest inventory region boundaries Shaded portions of blocks = softwood volumes. Unshaded portions of blocks=hardwood volumes. Units are millions of cunits (I cunit= approx. 1.18 cords). SOURCE- Extracted from Sheppard and Carroll, 1973. 22 o f w h i c h i s l o c a t e d i n s t a n d s w i t h a m i n i m u m v o l u m e o f 5 c u n i t s p e r a c r e a n d 70 p e r c e n t i s c o n t a i n e d i n s t a n d s w i t h a m i n i m u m v o l u m e o f 10 c u n i t s p e r a c r e . The d i s t r i -b u t i o n o f t h e g r o s s m e r c h a n t a b l e v o l u m e b y i n v e n t o r y r e g i o n i s shown i n F i g u r e 2. S o f t w o o d s p e c i e s a c c o u n t f o r 87 p e r c e n t o f t h e m e r c h a n t a b l e v o l u m e w i t h b l a c k s p r u c e a n d b a l s a m f i r f o r m i n g 49 a n d 34 p e r c e n t r e s p e c t i v e l y . On t h e I s l a n d t h e a v e r a g e n e t g r o w t h r a t e on a l l p r o d u c t i v e f o r e s t l a n d c a p a b l e o f p r o d u c i n g a t l e a s t 8 c u n i t s p e r a c r e a t a r o t a t i o n a g e o f 70 y e a r s , i s 21 c u b i c f e e t p e r a c r e . The T a s k F o r c e c o n c l u d e d t h a t w i t h p r o p e r management ( a d e q u a t e a c c e s s , u t i l i z a t i o n o f a l l s p e c i e s , p r o p e r a g e c l a s s d i s t r i b u t i o n , a d h e r e n c e t o c o r r e c t r o t a t i o n l e n g t h s a n d a d e q u a t e p r o t e c t i o n a g a i n s t f i r e a n d i n s e c t s ) , a n a n n u a l c u t o f 1.65 m i l l i o n c u n i t s (1.43 m i l l i o n s o f t w o o d s a n d 0.22 m i l l i o n h a r d w o o d s ) c o u l d be s u s t a i n e d i n d e f i n i t e l y . C u r r e n t wood r e q u i r e m e n t s f r o m t h e I s l a n d w e r e e s t i m a t e d b y t h e T a s k F o r c e t o be 0.93 m i l l i o n c u n i t s . A b o u t 11 p e r c e n t o f t h e p r o d u c t i v e f o r e s t a r e a i s h e l d i n f e e s i m p l e o w n e r s h i p b y t w o p u l p a n d p a p e r c o m p a n i e s , B o w a t e r ' ; N e w f o u n d l a n d L i m i t e d o f C o r n e r B r o o k a n d P r i c e ( N f l d . ) P u l p a n d P a p e r L i m i t e d o f G r a n d F a l l s . A n a d d i t i o n a l 49 p e r c e n t o f t h e p r o d u c t i v e f o r e s t i s c o n t r o l l e d b y t h e s e t w o c o m p a n i e s u n d e r l o n g - t e r m l e a s e a n d l i c e n s e . A p p r o x i m a t e l y 37 p e r c e n t o f t h e p r o d u c t i v e a r e a i s c l a s s i f i e d a s n o n a l i e n a t e d C r own l a n d , a n d t h e 23 r e m a i n i n g 3 p e r c e n t i s c o n t a i n e d i n f e d e r a l a n d p r o v i n c i a l p a r k r e s e r v e s a n d s m a l l p r i v a t e h o l d i n g s . The l i m i t a r e a s o f t h e p u l p a n d p a p e r c o m p a n i e s c o n t a i n c o n s i d e r a b l e a m o u n t s o f n o n - p r o d u c t i v e l a n d ( b o g , l o w q u a l i t y f o r e s t , b a r r e n a n d w a t e r ) . T h i s a c c o u n t s f o r 55 p e r c e n t o f t h e i r c o m b i n e d l i m i t a r e a s . F o r t y - t w o p e r c e n t o f t h e g r o s s m e r c h a n t a b l e v o l u m e o f 99-498 m i l l i o n c u n i t s i s owned b y B o w a t e r N e w f o u n d l a n d L i m i t e d a n d 22 p e r c e n t i s owned b y P r i c e ( N f l d . ) P u l p a n d P a p e r L i m i t e d . O f t h e r e m a i n d e r , 33 p e r c e n t i s c l a s s i f i e d a s n o n a l i e n a t e d C r o w n a n d 3 p e r c e n t i s c o n t a i n e d m a i n l y w i t h i n f e d e r a l a n d p r o v i n c i a l r e s e r v e d a r e a s . A n i n s i g n i f i c a n t amount i s l o c a t e d on s m a l l p r i v a t e h o l d i n g s . O f t h e t o t a l v o l u m e o f a p p r o x i m a t e l y 64 m i l l i o n c u n i t s o n p u l p a n d p a p e r company h o l d i n g s , 29 m i l l i o n c u n i t s a r e c l a s s e d a s o v e r m a t u r e , 29 m i l l i o n c u n i t s a r e m a t u r e a n d 6 m i l l i o n c u n i t s a r e i m m a t u r e . O f t h e v o l u m e o f 33 m i l l i o n c u n i t s o n n o n a l i e n a t e d C r o w n l a n d , 10 m i l l i o n c u n i t s a r e c l a s s e d a s o v e r m a t u r e , 17 m i l l i o n a r e m a t u r e a n d 6 m i l l i o n a r e c o n t a i n e d i n i m m a t u r e s t a n d s . L a b r a d o r I n L a b r a d o r p r o d u c t i v e f o r e s t a c c o u n t s f o r a p p r o x i m a t e l y 13.7 m i l l i o n a c r e s o r 19 p e r c e n t o f t h e t o t a l a r e a . O n l y a b o u t 6.4 m i l l i o n a c r e s a r e c o n s i d e r e d t o be p r o d u c t i v e a n d a c c e s s i b l e a t t h e p r e s e n t t i m e . The m a j o r f o r e s t a r e a s a r e shown i n F i g u r e 3. T o t a l m e r c h a n t -SOURCE : Extracted from Sheppard and Carroll, 1973. 25 a b l e v o l u m e i s e s t i m a t e d t o be 118 m i l l i o n c u n i t s , b u t t h e T a s k F o r c e e s t i m a t e d t h a t o n l y 33-48 m i l l i o n c u n i t s o f t h i s a r e c u r r e n t l y a c c e s s i b l e . T h i s v o l u m e i s l o c a t e d i n f o u r m a j o r a r e a s a s f o l l o w s : A l e x i s B a y 2.97 m i l l i o n c u n i t s S a n d w i c h B a y 3.56 » " L a k e M e l v i l l e 25-42 " " K a i p o k o k B a y 1.53 " " A b o u t 70 p e r c e n t o f t h e t o t a l v o l u m e i s b l a c k s p r u c e a n d 25 p e r c e n t i s b a l s a m f i r . W h i t e s p r u c e , t a m a r a c k a n d w h i t e b i r c h a c c o u n t f o r t h e b a l a n c e . T h e r e a r e e x t e n s i v e a r e a s o f e v e n - a g e d f o r e s t o f f i r e o r i g i n a s w e l l a s u n e v e n a g e d s t a n d s w h i c h h a v e l a r g e l y e s c a p e d d i s -t u r b a n c e . M o s t t r e e s a r e o f p u l p w o o d s i z e a l t h o u g h some l a r g e r d i a m e t e r s t e m s ( m a i n l y w h i t e s p r u c e ) a r e f o u n d on t h e b e t t e r s i t e s i n r i v e r v a l l e y s . E x c e p t f o r r e l a t i v e l y s m a l l s c a l e s p o r a d i c o p e r a t i o n s t h e r e h a s b e e n l i t t l e h a r v e s t i n g i n L a b r a d o r u n t i l r e c e n t y e a r s . B e t w e e n 1973 a n d 1976 u p t o 150,000 c u n i t s a y e a r w e r e h a r v e s t e d f r o m t h e w e s t e r n e n d o f L a k e M e l v i l l e a n d s h i p p e d t o a new k r a f t l i n e r b o a r d m i l l a t S t e p h e n v i l l e on t h e W e s t C o a s t o f t h e I s l a n d . P r o d u c t i o n s t o p p e d when a d e c i s i o n wa s made t o c l o s e down t h e m i l l . The T a s k F o r c e e s t i m a t e d t h e a l l o w a b l e a n n u a l c u t f r o m t h e f o u r m a j o r a c c e s s i b l e f o r e s t a r e a s o f L a b r a d o r t o be a p p r o x i m a t e l y 435,000 c u n i t s . O w n e r s h i p o f a l l f o r e s t l a n d a n d t i m b e r i n L a b r a d o r o u t s i d e s e t t l e d a r e a s i s now h e l d b y t h e C r o w n . 26 C o m p a r i s o n W i t h O t h e r A r e a s The t o t a l a r e a o f t h e P r o v i n c e o f N e w f o u n d l a n d a c c o u n t s f o r a b o u t 6 . 6 p e r c e n t o f t h e t o t a l l a n d a r e a o f t h e 10 p r o v i n c e s o f C a n a d a a n d c o n t a i n s a b o u t 3 - 7 p e r c e n t o f t h e a r e a o f f o r e s t l a n d ( S t a t i s t i c s C a n a d a , 1975 a n d N e w f o u n d l a n d , 1 9 7 4 ) . W i t h i n t h e A t l a n t i c R e g i o n ( N e w f o u n d -l a n d , N o v a S c o t i a , New B r u n s w i c k a n d P r i n c e E d w a r d I s l a n d ) t h e f o r e s t r e s o u r c e o f t h e p r o v i n c e i s o f g r e a t e r s i g n i f -i c a n c e , a c c o u n t i n g f o r a b o u t 46 p e r c e n t o f t h e t o t a l a r e a o f f o r e s t l a n d . The m e r c h a n t a b l e v o l u m e on t h e I s l a n d a n d i n t h e a r e a s o f L a b r a d o r c o n s i d e r e d o p e r a b l e b y t h e T a s k F o r c e , i s a b o u t 26 p e r c e n t o f t h e t o t a l m e r c h a n t a b l e v o l u m e f o r t h e A t l a n t i c P r o v i n c e s . I n c l u s i o n o f v o l u m e s on c u r r e n t l y i n o p e r a b l e a r e a s o f L a b r a d o r w o u l d i n c r e a s e t h i s p r o p o r t i o n t o 42 p e r c e n t . The f o r e s t s o f N e w f o u n d l a n d a r e g e n e r a l l y c o n -s i d e r e d t o be somewhat l e s s p r o d u c t i v e t h a n t h o s e o f t h e o t h e r A t l a n t i c P r o v i n c e s . A s m e n t i o n e d a b o v e , t h e T a s k F o r c e c a l c u l a t e d a n e t g r o w t h r a t e f o r t h e I s l a n d o f 21 c u b i c f e e t p e r a c r e p e r y e a r a n d f e l t t h a t t h i s c o u l d be i n c r e a s e d t o 31 c u b i c f e e t t h r o u g h i m p r o v e d m a n a g e m e n t . The A t l a n t i c D e v e l o p m e n t B o a r d (1968) e s t i m a t e d a n a n n u a l g r o w t h r a t e o f a p p r o x i m a t e l y 21 c u b i c f e e t f o r N o v a S c o t i a ( t h i s seems l o w ) a n d f e l t t h i s c o u l d b e i n c r e a s e d t o 34 c u b i c f e e t t h r o u g h i m p r o v e d m a n a g e m e n t . The A t l a n t i c D e v e l o p m e n t B o a r d ( I 9 6 8 ) a l s o i n d i c a t e d t h a t a g r o w t h r a t e 27 o f /+2.5 c u b i c f e e t w o u l d be a t t a i n a b l e f o r P r i n c e E d w a r d I s l a n d . T w e e d d a l e (1974) s t a t e d t h a t t h e a v e r a g e a n n u a l n e t g r o w t h r a t e f o r New B r u n s w i c k wa s 36 c u b i c f e e t p e r a c r e , w h i l e t h e g r o s s r a t e ( i n c l u d i n g t r e e s w h i c h d i e ) wa s 55 c u b i c f e e t . F o r e s t g r o w t h i n N e w f o u n d l a n d i s i m p e d e d b y t h e c o o l c l i m a t e w h i c h g i v e s a s h o r t e r g r o w i n g s e a s o n (Rowe, 1972) a n d b y p o o r s o i l c o n d i t i o n s ( A t l a n t i c D e v e l o p m e n t B o a r d , I 9 6 S ) . I n P r i n c e E d w a r d I s l a n d , N o v a S c o t i a a n d New B r u n s w i c k t h e p e r c e n t a g e s o f f o r e s t l a n d w h i c h a r e c l a s s i -f i e d a s p r i v a t e l y owned a r e 94? 72 a n d 53 r e s p e c t i v e l y ( S t a t i s t i c s C a n a d a , 1 9 7 5 ) " On t h e I s l a n d o f N e w f o u n d l a n d o n l y 11 p e r c e n t i s c l a s s i f i e d a s p r i v a t e l y o w n e d , w h i l e i n L a b r a d o r a l l f o r e s t l a n d i s i n p u b l i c o w n e r s h i p . F o r e s t I n d u s t r i e s ^ -P r i o r t o t h e p r e s e n t c e n t u r y , f o r e s t i n d u s t r i e s made o n l y a m i n o r c o n t r i b u t i o n t o t h e v a l u e o f c o m m o d i t y e x p o r t s . T h i s s i t u a t i o n c h a n g e d d r a m a t i c a l l y d u r i n g t h e e a r l y 1 9 0 0 ' s w h e n , l a r g e l y a s a r e s u l t o f t h e e s t a b l i s h m e n t o f t h e p u l p a n d p a p e r i n d u s t r y , f o r e s t p r o d u c t s became i n c r e a s i n g l y i m p o r t a n t . B y t h e e a r l y 1 9 3 0 ' s , t h e y made up 53 p e r c e n t o f t h e v a l u e o f g o o d s e x p o r t e d ( M a c k a y , 1 9 4 6 ) . A f t e r C o n f e d e r a t i o n i n 1 9 4 9 , i n a r a p i d l y e x p a n d i n g e c o n o m y , 4 T J n l e s s o t h e r w i s e n o t e d s t a t i s t i c s i n t h i s s e c t i o n c o m p i l e d b y t h e w r i t e r f r o m d a t a o b t a i n e d f r o m t h e C e n t r a l S t a t i s t i c a l S e r v i c e s o f f i c e o f t h e N e w f o u n d l a n d G o v e r n m e n t . 28 f o r e s t i n d u s t r i e s b e g a n t o l o s e t h e i r d o m i n a n t p o s i t i o n . I n 1950 t h e n e t v a l u e o f f o r e s t r y p r o d u c t i o n w a s 42 p e r c e n t o f t h e n e t v a l u e o f p r o d u c t i o n i n c o m m o d i t y p r o d u c i n g i n d u s t r i e s 5 a n d b y i 9 6 0 f o r e s t r y ' s s h a r e h a d d e c r e a s e d t o 27 p e r c e n t ( R a l p h a n d M u n r o , 1 9 6 6 ) . B y 1973 i t s t o o d a t 13 p e r c e n t . Due m a i n l y t o t h e a d o p t i o n o f m e c h a n i z e d l o g g i n g t e c h n i q u e s t h e r e h a s a l s o b e e n a d e c r e a s e i n t h e n u m b e r o f p e o p l e e m p l o y e d i n f o r e s t r y a c t i v i t i e s . B e t w e e n 1951 a n d I 9 6 I t h e e s t i m a t e d n u m b e r o f l o g g e r s d e c r e a s e d f r o m 9 , 1 4 6 t o 5 , 7 4 6 ( R a l p h a n d M u n r o , 1 9 6 6 ) . B y t h e e a r l y 1 9 7 0 ' s t h e r e w e r e a p p r o x i m a t e l y 2 , 0 0 0 l o g g e r s . I n s p i t e o f t h i s , f o r e s t - b a s e d i n d u s t r i e s a r e s t i l l a n i m p o r t a n t p a r t o f t h e p r o v i n c i a l e c o n o m y , e s p e c i a l l y i n t h o s e r e g i o n s o u t s i d e t h e A v a l o n P e n i n s u l a > w h i c h h a v e f e w e m p l o y m e n t o p p o r t u n i t i e s . The f o r e s t r y s e c t o r ( m a n u f a c t u r i n g a n d l o g g i n g ) p r o v i d e d d i r e c t e m p l o y -ment f o r a p p r o x i m a t e l y 6 , 5 0 0 p e o p l e a n d p a i d o u t $73 m i l l i o n i n w a g e s a n d s a l a r i e s i n 1974 • F o r e s t - b a s e d m a n u -f a c t u r i n g i n d u s t r i e s , w i t h g r o s s v a l u e o f s h i p m e n t s o f $201 m i l l i o n , a c c o u n t e d f o r 28 p e r c e n t o f t h e v a l u e o f a l l m a n u f a c t u r i n g s h i p m e n t s i n 1 9 7 4 . A v e r a g e a n n u a l w a g e s a n d s a l a r i e s p a i d b y f o r e s t i n d u s t r i e s ( $ 1 2 , 4 5 3 ) w e r e c o n s i d e r -a b l y h i g h e r t h a n e a r n i n g s i n n o n - f o r e s t r y m a n u f a c t u r i n g ( $ 7 , 6 0 0 ) . ^ F o r e s t r y ( i n c l u d i n g l o g g i n g ) , f i s h i n g , t r a p p i n g , m i n i n g , e l e c t r i c p o w e r , m a n u f a c t u r i n g a n d c o n s t r u c t i o n . 29 The manufacture of newsprint and linerboard i s by f a r the most important forest-based industry. In 1974 i t accounted f o r 94 per cent of the value of output of a l l forest i n d u s t r i e s . Newsprint m i l l s are operated by Price (Nfld.) Pulp and Paper Limited at Grand F a l l s (capacity 3 5 0 , 0 0 0 tons newsprint per year) and Bowater Newfoundland Limited at Corner Brook (capacity 3 5 4 , 0 0 0 tons of newsprint per year). A p r o v i n c i a l Crown corporation, Labrador Liner-board Limited, owns a k r a f t linerboard m i l l (capacity 3 5 0 , 0 0 0 tons of linerboard per year) at Stephenville. The linerboard m i l l was i n i t i a t e d by a private company, M e l v i l l e Pulp and Paper Limited, which had obtained a government loan guarantee of up to $53 m i l l i o n (Newfoundland, 1968) from the P r o v i n c i a l Government i n the 1960*s. The agreement with the developer was reviewed i n 1972 and the Province took over the project and completed i t i n 1973* This m i l l has had a troubled h i s t o r y and i n 1977 the Government was forced to close i t because of high operating losses. Attempts are being made to s e l l the m i l l to private i n t e r e s t s . The sawmill industry i n Newfoundland supplies only about one-third of the l o c a l demand fo r lumber, which was estimated to be 100 m i l l i o n board feet i n 1 9 7 1 . The Task Force f e l t there were no technical b a r r i e r s to the l o c a l industry supplying 70 to 80 per cent of p r o v i n c i a l requirements (Sheppard and C a r r o l l , 1 9 7 3 . ) There are a 30 a r e a l a r g e n u m b e r o f s m a l l m i l l s w h i c h o p e r a t e f o r s h o r t p e r i o d s d u r i n g t h e y e a r . W h i l e w e l l o v e r 1 , 0 0 0 m i l l s a r e l i c e n s e d a n n u a l l y , u p t o 200 o f t h e s e may n o t o p e r a t e a t a l l a n d 90 p e r c e n t o f l i c e n s e d m i l l s h a v e a n a n n u a l p r o -d u c t i o n o f u n d e r 5 0 , 0 0 0 b o a r d f e e t . The T a s k F o r c e r e commended t h a t a t t e m p t s b e made t o i n c r e a s e l u m b e r p r o -d u c t i o n b y e n c o u r a g i n g t h e e s t a b l i s h m e n t o f a n u m b e r o f l a r g e r (m in imum a n n u a l c a p a c i t y o f 5 m i l l i o n b o a r d f e e t ) s a w m i l l s a t s t r a t e g i c l o c a t i o n s on t h e I s l a n d . O t h e r wood i n d u s t r i e s i n N e w f o u n d l a n d a r e o f r e l a t i v e l y m i n o r i m p o r t a n c e . F o r 1974 S t a t i s t i c s C a n a d a r e p o r t e d o n l y 12 e s t a b l i s h m e n t s i n t h i s c a t e g o r y w h i c h e m p l o y e d a b o u t 250 p e o p l e , p a i d $ 1 . 9 m i l l i o n i n w a g e s a n d s a l a r i e s a n d p r o d u c e d g o o d s w o r t h $ 7 . 7 m i l l i o n . PART I I H I STOR ICAL DEVELOPMENT CHAPTER I I I . CHAPTER I V . CHAPTER V . CHAPTER V I . CHAPTER V I I . CHAPTER V I I I EARLY DEVELOPMENT OF ATT ITUDES TOWARDS USE OF THE COASTAL AND INTER IOR FOREST AREAS T IMBER ALLOCAT ION ACQU I S I T ION BY THE PULP AND PAPER INDUSTRY OF T IMBER OWNERSHIP ON THE I S LAND DEVELOPMENTS IN LABRADOR VALUE OF CUTTING R IGHTS ON THE I S LAND DEVELOPMENT OF FOREST INDUSTRY 32 CHAPTER I I I EARLY DEVELOPMENT OF ATT ITUDES TOWARDS USE OF THE COASTAL AND INTER IOR FOREST AREAS V i k i n g s s e t t l e d b r i e f l y on t h e n o r t h c o a s t o f N e w f o u n d l a n d a r o u n d 1000 A . D . ( I n g s t a d , 1969 ) a n d d i s c o v e r y a n d o c c u p a t i o n b y I n d i a n a n d E s k i m o r a c e s a n t e d a t e s E u r o p e a n c o l o n i z a t i o n a t t e m p t s ( R o g e r s , 1 9 1 1 ) . H o w e v e r , f o r p u r p o s e s o f e v a l u a t i o n o f f o r e s t p o l i c y , t h e h i s t o r y o f N e w f o u n d l a n d c a n be d i v i d e d i n t o t w o m a i n p e r i o d s . The f i r s t , w h i c h i s b y f a r t h e l o n g e s t , e x t e n d s a l m o s t 400 y e a r s f r o m t h e d i s c o v e r y v o y a g e t o t h e E a s t C o a s t o f C a n a d a b y J o h n C a b o t i n 1497 , u n t i l e f f o r t s b e g a n t o d e v e l o p t h e n a t u r a l r e s o u r c e s o f t h e i n t e r i o r o f N e w f o u n d l a n d i n t h e l a t e 1 8 0 0 ' s . The s e c o n d p e r i o d c o v e r s t h e r e l a t i v e l y f e w y e a r s s i n c e i n t e r i o r d e v e l o p m e n t s t a r t e d t o t h e p r e s e n t . M u c h o f t h e e m p h a s i s o f t h i s s t u d y w i l l be on t h e l a t t e r p e r i o d . H o w e v e r , d u r i n g t h e e a r l y h i s t o r i c a l p e r i o d , f o r e s t e x p l o i t a t i o n d i d o c c u r t o a l i m i t e d e x t e n t a n d c u l t u r a l a t t i t u d e s a n d c o m m e r c i a l a n d g o v e r n m e n t p r a c t i c e s d e v e l o p e d w h i c h a r e s t i l l i m p o r t a n t t o d a y . 33 The F i s h e r y The e a r l y h i s t o r y o f N e w f o u n d l a n d c e n t e r s a r o u n d t h e e x p l o i t a t i o n o f one n a t u r a l r e s o u r c e - f i s h . The c a t c h i n g , c u r i n g a n d t r a n s p o r t a t i o n o f f i s h t o m a r k e t was t h e f o c a l p o i n t o f a l l e c o n o m i c a c t i v i t y f o r a l m o s t 400 y e a r s . The f o r e s t r e s o u r c e was e x p l o i t e d , b u t o n l y i n c o a s t a l a r e a s , t o s u p p l y r aw m a t e r i a l s i n s u p p o r t o f t h o s e e n g a g e d i n t h e f i s h e r y . The N e w f o u n d l a n d f i s h r e s o u r c e was t r e a t e d a s a common p r o p e r t y r e s o u r c e b y t h e f i s h e r m e n , - a n d m e r c h a n t s who c a u g h t a n d s o l d t h e h a r v e s t . The i n d u s t r y wa s h i g h l y c o m p e t i t i v e a n d c h a r a c t e r i z e d b y many s m a l l p r o d u c t i o n u n i t s ( s h i p s a n d c r e w s ) , s u b j e c t t o l i m i t e d c o n t r o l , o p e r a t i n g o v e r a w i d e g e o g r a p h i c a r e a ( I n n i s , 1 9 4 0 ) . By t h e end o f t h e s i x t e e n t h c e n t u r y t h e E n g l i s h s h o r e f i s h e r y was e s t a b l i s h e d on t h e A v a l o n P e n i n s u l a a n d a s f a r n o r t h a s Cape B o n a v i s t a ( I n n i s , 1 9 4 0 ) . I t was p r o s e c u t e d f r o m t h e W e s t C o u n t r y p o r t s o f E n g l a n d b y m e r c h a n t s a n d f i s h e r m e n who a r e g e n e r a l l y r e f e r r e d t o b y h i s t o r i a n s a s ' W e s t e r n A d v e n t u r e r s ' . V o y a g e s w e r e made t o t h e N e w f o u n d l a n d f i s h i n g g r o u n d s i n t h e s p r i n g , t h e f l e e t f i s h e d a l l summer, a n d r e t u r n e d t o E n g l a n d i n t h e f a l l . C o n t r o l o f t h e s h o r e l i n e a n d a c c e s s t o t h e t i m b e r a n d w a t e r t h a t l a y b e h i n d i t w e r e c r i t i c a l r e q u i r e m e n t s o f t h o s e e n g a g e d i n t h e s h o r e f i s h e r y . Wood was r e q u i r e d f o r t h e c o n s t r u c t i o n o f s t a g e s a n d f l a k e s f o r d r y i n g f i s h , 34 f o r e r e c t i o n o f s h e l t e r s , f o r f u e l a n d m a k i n g v a r i o u s t o o l s , s m a l l b o a t s a n d i m p l e m e n t s . B a r k wa s u s e d t o c o v e r - d r y i n g f i s h . I t was o n l y n a t u r a l t h a t t h e f o r e s t a d j a c e n t t o t h e s h o r e l i n e w o u l d b e t r e a t e d a s a common p r o p e r t y r e s o u r c e s i m i l a r t o t h e f i s h e r y . B o t h i n N e w f o u n d l a n d a n d i n New E n g l a n d t h e A d v e n t u r e r s . . . . i n s i s t e d u p o n a ' f r e e f i s h e r y ' , f r e e d o m t o t a k e f i s h , c h o o s e t h e i r own h a r b o u r s a n d r o o m s , f r e e l y t a k e a n d c u t w o o d , a n d t o be u n d e r no management b u t t h e i r own a n d t h e ' c u s t o m s ' w h i c h h a d e v o l v e d i n N e w f o u n d l a n d . The c r e w s w e n t i n l a n d t o c u t t i m b e r a n d o b t a i n b a r k ( ' r i n d ' ) t o c o v e r t h e f i s h w h i l s t i t was d r y i n g . C a r r i e d o u t i n h a s t e a n d c o n t r o l l e d b y n o n e t h e r i n d i n g wa s w a s t e f u l a n d r e s u l t e d i n d e s t r u c t i o n o f many f i n e t r e e s . E x t r a v a g a n t u s e o f wood a n d c a r e l e s s l i g h t i n g o f f i r e s wa s a l r e a d y d e n u d i n g t h e ' s h o r e l i n e ' t i m b e r n e a r many h a r b o u r s . . . . ( M a t t h e w s , 1 9 6 8 ) . T h i s f o r m o f c u l t u r a l i m p a c t h a s b e e n i n p r o c e s s on t h e c o a s t a l f o r e s t s o f N e w f o u n d l a n d s i n c e t h e e a r l y 1 5 0 0 ' s . The a r e a s m o s t s e v e r e l y a f f e c t e d h a v e b e e n t h e a r e a s t h a t w e r e o c c u p i e d t h e l o n g e s t a n d w i t h t h e h e a v i e s t c o n c e n t r a t i o n o f p o p u l a t i o n , i . e . t h a t s e c t i o n o f c o a s t f r o m T r e p a s s e y o n t h e S o u t h e r n A v a l o n P e n i n s u l a n o r t h t o B o n a v i s t a . E x c e p t f o r G o v e r n m e n t e f f o r t s a t f i r e c o n t r o l m e a s u r e s s i n c e t h e b e g i n n i n g o f t h e p r e s e n t c e n t u r y , a n d m o r e r e c e n t a t t e m p t s a t c o n t r o l l i n g c u t t i n g i n s e l e c t e d a r e a s , t h e p a t t e r n o f u s e o f c o a s t a l f o r e s t l a n d , e s t a b l i s h e d i n t h e 1 5 0 0 ' s , h a s c o n t i n u e d t o t h e p r e s e n t . Two p r i n c i p l e s w e r e e s t a b l i s h e d a n d h a v e r e m a i n e d e s s e n t i a l l y u n c h a n g e d . 35 T h e s e a r e : 1) T h a t t h e c o a s t a l f o r e s t a r e a s w e r e r e s e r v e d f o r t h e u s e o f t h o s e e n g a g e d i n t h e i n s h o r e f i s h e r y . 2) T h a t t h e c o a s t a l f o r e s t w o u l d be t r e a t e d a s a common p r o p e r t y r e s o u r c e , j u s t a s f i s h i n t h e a d j a c e n t w a t e r s w e r e c o n s i d e r e d t o be a common p r o p e r t y r e s o u r c e . Wood w a s f r e e f o r t h e t a k i n g a n d no e f f e c t i v e c o n t r o l s w o u l d be i m p o s e d on t h o s e u s i n g t h e r e s o u r c e . E a r l y S e t t l e m e n t P e r m a n e n t s e t t l e m e n t i n N e w f o u n d l a n d was n o t s e r i o u s l y c o n s i d e r e d d u r i n g t h e 1 5 0 0 ' s ( C h a d w i c k , 1 9 6 7 ) . E u r o p e a n c o u n t r i e s w e r e m a i n l y c o n c e r n e d w i t h t h e w a t e r s s u r r o u n d i n g t h e i s l a n d a n d w i t h t h e t e m p o r a r y summer u s e o f t h e s h o r e l i n e f o r s t a g i n g a r e a s f o r f i s h i n g o p e r a t i o n s . D u r i n g t h e f i r s t q u a r t e r o f t h e s e v e n t e e n t h c e n t u r y a numbe r o f a t t e m p t s w e r e made b y t h e E n g l i s h t o e s t a b l i s h p e r m a n e n t c o l o n i e s ( R o g e r s , 1 9 1 1 ) . The f i r s t was b y J o h n Guy o f B r i s t o l who s e c u r e d a c h a r t e r f r o m K i n g J ames w h i c h g a v e h i m t i t l e t o a l a r g e s e c t i o n o f c o a s t a l l a n d t e n l e a g u e s (30 m i l e s ) d e e p , f r o m Cape S t . M a r y ' s i n t h e S o u t h o f t h e A v a l o n P e n i n s u l a t o Cape B o n a v i s t a , a n d a d d i t i o n a l a r e a s b e t w e e n L6 d e g r e e s N o r t h l a t i t u d e a n d 52 d e g r e e s N o r t h l a t i t u d e . The C h a r t e r g r a n t e d t h e company t h e f o l l o w i n g ( P r o w s e , 1 8 9 5 ) : a l l t h e l a n d e s o i l e g r o u n d e h a v e n s , p o r t e s r i v e r s m i n e s a s w e l l r o y a l l m i n e s o f g o l d a n d s i l v e r a s o t h e r m i n e r a l l s p e a r l e s a n d p r e c i o u s s t o n e s wood s q u a r r i e s m a r s h e s w a t e r s f i s h i n g h u n t i n g h a w k i n g s f o w l e i n g e c o m m o d i t i e s a n d h e r e d i t a m e n t s w h a t s o e v e r t o g e t h e r w i t h a l l p r e r o g a t i v e s j u r i s d i c t i o n s r o y a l l t i e s , p r i v i l e d g e s f r a n c h i z e s a n d p r e h e m i n t e s 36 t h e r e t o o r t h e r e a b o u t e b o t h b y s e a a n d l a n d b e l o n g i n g o r a p p e r t a i n i n g e a n d w h i c h we b y " o u r l e t t e r s p a t t e n t e c a n n e g r a u n t e a n d i n a s a m p l e m a n n e r a s we o r a n y o f o u r n o b l e p r o g e n i t o r a h a v e g r a n t e d t o a n y a d v e n t u r e r s o r u n d e r t a k e r s o f a n y d i s c o v e r i e p l a n t a c o n o r t r a f f i q u e i n t o a n y f o r r a i g n e p ' t e s a n d i n a s a m p l e m a n n e r a s i f t h e same w e e r e h e e r e i n p ' t i c u l a r l i e m e n t i o n e d . N e v e r t h e l e s s t h a t t h e r e be s a v e d a n d r e s e r v e d u n t o a l l m a n n e r o f p e r s o n s o f w h a t n a t i o n s o e v e r a n d a l s o t o a l l o u r l o v i n g s u b j e c t s w ' c h doe a t t h i s p T n t o r h e r e -a f t e r s h a l l t r a d e o r v o y a d g e t o t h e p a r t e s a f o r e s a i d f o r f i s h i n g a l l l i b e r t i e s p o w e r s e a s e m e n t s a n d a l l o t h e r b e n i f i t t s a s w e l l c o n c e r n i n g t h e i r f i s h i n g a s w e l l a l l o t h e r c i r c u m s t a n c e s a n d i n c i d e n t s t h e r e u n t o i n a s a m p l e m a n n e r a s t h e y h a v e h e r e t o f o r e u s e d a n d e n j o y e d t h e same w i t h o u t a n y i m p e d i m e n t s d i s t u r b a n c e o r o p o s i t i o n a n y t h i n g e i n t h e s e p ' n t s t o t h e c o n t r a r i e n o t w i t h s t a n d i n g e . T h u s w h i l e G u y ' s c h a r t e r g a v e h i m v i r t u a l c o m p l e t e o w n e r s h i p o f t h e l a n d a n d r e l a t e d r e s o u r c e s f o r t h i r t y m i l e s i n l a n d , h e d i d n o t h a v e c o n t r o l o f t h e s h o r e l i n e , s i n c e t r a d i t i o n a l r i g h t s o f f i s h e r m e n w e r e p r o t e c t e d . . T h i s , o f c o u r s e , c a r r i e d w i t h i t t h e r i g h t o f t h e f i s h e r m e n t o u s e f o r e s t r e s o u r c e s c l o s e t o t h e s h o r e l i n e f o r t h e i r f i s h i n g o p e r a t i o n s . G u y ' s c h a r t e r i s i n t e r e s t i n g f r o m t h e p o i n t o f v i e w o f t i m b e r a l l o c a t i o n p o l i c y b e c a u s e i t i s p r o b a b l y t h e f i r s t w r i t t e n e x a m p l e o f t h e s e c o n d b r a n c h o f t h e d i c h o t o m o u s f o r e s t p o l i c y t h a t wa s l a t e r t o d e v e l o p i n N e w f o u n d l a n d . W h i l e t h e t r a d i t i o n a l common p r o p e r t y r i g h t s o f t h e f i s h e r m e n a r e p r o t e c t e d on f o r e s t a r e a s b o r d e r i n g t h e c o a s t , e x t e n s i v e p r i v a t e p r o p e r t y r i g h t s w e r e g r a n t e d t o a r e a s away f r o m t h e c o a s t , w h i c h w e r e n o t r e q u i r e d b y t h e f i s h e r m e n . 37 The reservation of the coastal shoreline and adjacent forests from the charter was, no doubt, because of the influence of the West Country merchants and perhaps also to avoid antagonizing the f i s h i n g f l e e t s of other nations. On the other hand, very few people were interested i n the land and resources of the i n t e r i o r and nobody would be offended by private ownership of extensive inland t r a c t s . The Crown could therefore afford to be generous i n granting r i g h t s to inland areas. Guy and other would-be colonizers of the seven-teenth century were not successful for a variety of reasons. With the f a i l u r e of these early formal colonizing attempts, a series of laws or regulations was passed a f t e r 1634 which tended to favor the seasonal f i s h i n g operations of the West Country merchants and to discourage permanent settlement. These governmental orders and acts were l a r g e l y ignored by the l o c a l inhabitants who chose to stay and were generally not enforceable because of the absence of an e f f e c t i v e government agency i n Newfoundland (Matthews, 1968). S e t t l e r s existed i n scattered locations to escape detection and fished side by.side with the Western Adventurers (McLintock, 19/+1). During t h i s early period there was l i t t l e basic change i n the pattern of use of the forest resource. No doubt as the f i s h i n g population gradually increased i n the l a t e 1700 Ts and early 1800 Ts, the i n t e n s i t y of use of the 38 r e s o u r c e i n c r e a s e d i n c o a s t a l a r e a s . T h e r e c a n be l i t t l e d o u b t t h a t e n l i g h t e n e d f o r e s t p o l i c i e s o r a n y r e s o u r c e management p o l i c i e s h a d no c h a n c e t o d e v e l o p i n s u c h a n e n v i r o n m e n t . The d e v e l o p m e n t o f s u c h p o l i c i e s c o u l d o n l y come a f t e r t h e l e g a l i z a t i o n o f s e t t l e m e n t a n d t h e e s t a b l i s h -ment o f g o v e r n m e n t -wh ich o c c u r r e d i n t h e e a r l y 1800's. ^ s t a b l i s h m e n t o f _ G o v e r n m e n t D u r i n g a n d a f t e r t h e N a p o l e o n i c W a r s s e t t l e r s w e r e a t t r a c t e d i n a b o u t e q u a l n u m b e r s t o N e w f o u n d l a n d f r o m I r e l a n d a n d t h e w e s t o f E n g l a n d . By I836, t h e p o p u l a t i o n was 75?000 ( N e w f o u n d l a n d , 1970). The p r e s e n t p o p u l a t i o n i s l a r g e l y d e s c e n d e d f r o m t h e s e i m m i g r a n t s . S t . J o h n ' s d e v e l o p e d i n t o t h e l a r g e s t t o w n i n t h e I s l a n d . By 1815 i t wa s b e c o m i n g a c e n t r e o f a g i t a t i o n f o r r e f o r m i n g o v e r n m e n t . The s e t t l e r s h a d f e w o f t h e n o r m a l r i g h t s o f B r i t i s h C o l o n i s t s . The a d m i n i s t r a t i o n o f j u s t i c e was h o p e l e s s l y c o r r u p t a n d c h a o t i c ( N o e l , 1971). A p o l i t i c a l r e f o r m movement d e v e l o p e d a n d was e v e n t u a l l y s u c c e s s f u l i n g e t t i n g a b i l l p a s s e d i n t h e B r i t i s h H o u s e o f Commons w h i c h g a v e r e p r e s e n t a t i v e g o v e r n m e n t t o N e w f o u n d -l a n d i n I832. I t g a v e t h e I s l a n d a s y s t e m o f g o v e r n m e n t s i m i l a r t o t h a t w h i c h N o v a S c o t i a h a d e n j o y e d s i n c e 1758 ( N o e l , 1971). The c o n s t i t u t i o n o f I832 p r o v i d e d f o r a G o v e r n o r a n d a L e g i s l a t i v e C o u n c i l t o be a p p o i n t e d b y t h e C rown a n d 39 a n A s s e m b l y o f f i f t e e n r e p r e s e n t a t i v e s t o be e l e c t e d b y t h e p e o p l e . The C o n s t i t u t i o n p r o v e d u n w o r k a b l e a n d i n 1855 a new c o n s t i t u t i o n w a s d e v i s e d u n d e r w h i c h t h e I s l a n d became s e l f - g o v e r n i n g a n d w a s p l a c e d l e g a l l y on a n e q u a l f o o t i n g w i t h o t h e r B r i t i s h C o l o n i e s o f N o r t h A m e r i c a ( N o e l , 1 9 7 1 ) . The new c o n s t i t u t i o n p r o v i d e d f o r a g o v e r n o r t o b e a p p o i n t e d b y t h e C r o w n a n d a l e g i s l a t u r e w h i c h c o n s i s t e d o f a L e g i s l a t i v e C o u n c i l a n d a n A s s e m b l y , w i t h e x e c u t i v e p o w e r r e s i d i n g i n a n E x e c u t i v e C o u n c i l w h i c h wa s r e s p o n s i b l e t o t h e A s s e m b l y . The E x e c u t i v e C o u n c i l c o u l d h o l d o f f i c e o n l y a s l o n g a s i t c o u l d o b t a i n t h e s u p p o r t o f a m a j o r i t y i n t h e A s s e m b l y . The member s o f t h e A s s e m b l y w e r e e l e c t e d u p o n a h o u s e h o l d f r a n c h i s e w h i l e M e m b e r s o f t h e L e g i s l a t i v e C o u n c i l w e r e a p p o i n t e d f o r l i f e ( N o e l , 1 9 7 1 ) . I n t h e L e g i s l a t u r e wa s v e s t e d t h e p o w e r o f m a k i n g l a w s , j u r i s d i c t i o n o v e r t h e p u b l i c d e b t a n d p r o p e r t y , t h e p o w e r o f t a x a t i o n a n d o f r a i s i n g l o a n s u p o n t h e c o l o n y ' s c r e d i t , a n d t h e c o n d u c t o f a l l p u b l i c s e r v i c e s ( N o e l , 1 9 7 1 ) . N o e l (1971) h a s d e s c r i b e d t h e u n i q u e p o l i t i c a l s y s t e m w h i c h d e v e l o p e d i n N e w f o u n d l a n d i n t h e l a t e 1 9 t h c e n t u r y . The p o p u l a t i o n wa s s c a t t e r e d i n h u n d r e d s o f s m a l l i s o l a t e d c o m m u n i t i e s a r o u n d t h e c o a s t . T h e r e w a s no l o c a l g o v e r n m e n t a n d a h i g h l y c e n t r a l i z e d f o r m o f a d m i n i s t r a t i o n e v o l v e d i n w h i c h p o w e r w a s c o n c e n t r a t e d i n t h e H o u s e o f A s s e m b l y a n d t h e C a b i n e t . I n t h i s s i t u a t i o n t h e u n i t o f a d m i n i s t r a t i o n wa s t h e e l e c t o r a l d i s t r i c t a n d t h e i n d i v i d u a l member o f t h e H o u s e o f A s s e m b l y h a d c o n s i d e r a b l e p o w e r , 1+0 since he was one of the few links between the people of the d i s t r i c t and the government o f f i c i a l s and agencies in St. John*s. The p o l i t i c a l system served to maintain the status-quo with respect to traditional rights of fishermen to unrestricted use of the coastal forests. Any r e s t r i c t -ions on these rights would l i k e l y be opposed by the people of the d i s t r i c t who would quickly make their opposition known to their member of the House of Assembly. The member, (likely a lawyer or f i s h merchant himself), would not go against the wishes of the electorate on such matters of widespread interest and concern, because to do so would be p o l i t i c a l suicide. These traditional rights eventually became established i n the legislation of the colony. The dispersed nature of the population and the concentration of p o l i t i c a l and economic power i n the ruling class in St. John's in the 1800»s, had certain implications for timber allocation policy. While the people in rural areas proved to be sensitive to restrictions to their cutting rights to the coastal forest, they did not object to alienations of interior forest areas for industrial purposes. Such develop-ment was generally regarded with favor because of expected employment benefits. 41 CHAPTER IV TIMBER ALLOCATION Newfoundland lagged f a r behind the other B r i t i s h Colonies of Eastern North America i n the development of inland forest resources. Lower (1973) described i n d e t a i l the timber trade that flourished between the colonies (mainly New Brunswick, Quebec and Ontario) and B r i t a i n between 1763 and I867 but noted,, that Newfoundland was not involved. I n i t i a l l y (except f o r the Broad Arrow reg-u l a t i o n which was not enforced) timber on Crown land i n the mainland colonies was free f o r the taking, but by I 826 regulations were introduced which required the c o l l e c t i o n of dues on timber floated down r i v e r s . In 1827 a Surveyor General of Woods and Forests was appointed i n Upper Canada and a system of timber licenses was established which formed the basis of the present l i c e n s i n g system i n Ontario and Quebec. I t i s possible that the f i r s t timber licenses which were issued i n Newfoundland i n the la t e 1800 Ts were patterned a f t e r the licenses that were i n widespread use i n Canada by that time. L2 Development Polic y By the mid-nineteenth century i t was apparent to the Government of Newfoundland that e f f o r t s should be made to d i v e r s i f y the economy and decrease dependence of p r a c t i c a l l y the entire population on the f i s h e r y by promoting the development of natural resources that were believed to e x i s t i n the i n t e r i o r . Between I 8 3 6 and 1869, the population had r i s e n from 75,000 to 147,000 (Newfoundland, 1970). The annual f i s h e r y catch had not increased to the same extent. Per capita returns were decreasing and catch f a i l u r e s i n the 1860 fs caused welfare payments to increase u n t i l at one time a t h i r d of the revenue of government was required for t h i s purpose (Cramm, 1961). The idea of building a railway to make resources of the i n t e r i o r accessible began to be seriously discussed. In 1868 the House of Assembly con-sidered the idea and a resolution was adopted that stated: In the event of a bona f i d e Company being organized... to the s a t i s f a c t i o n of the government of t h i s colony ... the said Company w i l l be e n t i t l e d to receive grants i n fee of the land on which t h i s said l i n e of Railway i s to be b u i l t , and also grants to the extent of f i v e miles on each side of said l i n e , together with the timber and minerals that may be found on or i n the same (Newfoundland, I 8 6 9 ) . The idea of a railway received a further boost when Sanford Flemming published a paper which advocated the construction of a railway across Newfoundland as part of a t r a n s - A t l a n t i c t r a v e l route between England and America (Cramm, 1961). Another factor which aroused public i n t e r e s t 43 i n r a i l w a y c o n s t r u c t i o n was t h e d i s c o v e r y o f m i n e r a l d e p o s i t s . I n ' I 8 6 4 t h e G o v e r n m e n t r e t a i n e d t h e s e r v i c e s o f a g e o l o g i s t , A l e x a n d e r M u r r a y , t o c a r r y o u t m i n e r a l s u r v e y s . M u r r a y ' s r e p o r t s i n d i c a t e d t h e p r e s e n c e o f m i n e r a l s i n v a r i o u s p a r t s o f t h e i n t e r i o r a n d l e d t o a f e e l i n g o f o p t i m i s m t h r o u g h o u t N e w f o u n d l a n d c o n c e r n i n g n a t u r a l r e s o u r c e p o t e n t i a l (Cramm, 1 9 6 1 ) . M u r r a y a l s o r e p o r t e d f a v o r a b l y on t h e f o r e s t r e s o u r c e s a n d on t h e p o t e n t i a l o f v a r i o u s a r e a s f o r a g r i c u l t u r e a n d p e r m a n e n t s e t t l e m e n t ( M u r r a y , 1 8 7 7 ) . The p o l i c y a d o p t e d b y t h e g o v e r n m e n t w a s t o e n c o u r a g e e c o n o m i c d e v e l o p m e n t o f i n t e r i o r f o r e s t r e s o u r c e s b y a l l o c a t i n g p u b l i c l a n d s t o p r i v a t e d e v e l o p e r s . I n p u r s u i n g t h i s p o l i c y t h r e e f o r m s o f c o n v e y a n c e o f p r o p e r t y r i g h t s w e r e u s e d . The t w o m a i n f o r m s o f c o n v e y a n c e w e r e t h e f r e e h o l d g r a n t s i s s u e d t o e n c o u r a g e r a i l w a y c o n s t r u c -t i o n a n d o p e r a t i o n a n d t i m b e r l i c e n s e s i s s u e d u n d e r t h e C rown L a n d s A c t s . I n one i n s t a n c e a p e r p e t u a l l e a s e wa s i s s u e d u n d e r a s p e c i a l A c t t o e n c o u r a g e t h e c o n s t r u c t i o n o f a n e w s p r i n t m i l l a t G r a n d F a l l s i n C e n t r a l N e w f o u n d l a n d . The t h r e e f o r m s o f t i m b e r o w n e r s h i p a r e d i s c u s s e d b r i e f l y i n t h e f o l l o w i n g s e c t i o n . N a t u r e o f T i m b e r O w n e r s h i p D o c u m e n t s F r e e h o l d G r a n t s F r e e h o l d o w n e r s h i p , o r f e e s i m p l e o w n e r s h i p , i s t h e m o s t c o m p l e t e f o r m o f l a n d t e n u r e p o s s i b l e u n d e r B r i t i s h 44 l a w a n d c u s t o m . I t i m p l i e s o w n e r s h i p o f t h e l a n d a s w e l l a s t h e r e s o u r c e s i n , o n , o r o v e r t h e l a n d . The M a x i m i s : " h e who owns t h e s o i l owns e v e r y t h i n g u p t o t h e h e a v e n s a n d down t o h e l l " ( M e g a r r y , 1947). The o w n e r h a s t h e r i g h t t o t r a n s f e r t o a n o t h e r a l l o r p a r t o f h i s i n t e r e s t i n t h e l a n d . The r i g h t s o f f e e s i m p l e l a n d h o l d e r s h a v e b e e n m o d i f i e d i n r e c e n t t i m e s . The w o r d i n g o f l a n d g r a n t s may r e s e r v e o w n e r s h i p o f c e r t a i n m i n e r a l s o r w a t e r r i g h t s t o t h e s t a t e . Z o n i n g r e g u l a t i o n s a n d t a x l a w s c a n s i g n i f i -c a n t l y i n f l u e n c e t h e l a n d u s e d e c i s i o n s o f t h e o w n e r . Howeve r , t h e r i g h t s o f t h e o w n e r c a n s t i l l b e q u i t e s u b -s t a n t i a l . F r e e h o l d g r a n t s t o e x t e n s i v e a r e a s w e r e made b y t h e G o v e r n m e n t i n a i d o f r a i l w a y c o n s t r u c t i o n . The m o s t c o m p l e t e f o r m o f f e e s i m p l e o w n e r s h i p wa s g r a n t e d a s t h e f o l l o w i n g e x t r a c t f r o m one o f t h e d e e d s i l l u s t r a t e s : Now know y e , t h a t i n c o n s i d e r a t i o n o f t h e p r e m i s e s a n d i n p a r t f u l f i l m e n t o f t h e c o v e n a n t s on t h e p a r t o f t h e G o v e r n m e n t o f N e w f o u n d l a n d i n t h e s a i d A g r e e -m e n t s c o n t a i n e d , a n d u n d e r a n d b y v i r t u e o f t h e s a i d A c t s o f t h e L e g i s l a t u r e o f N e w f o u n d l a n d , We do h e r e b y g r a n t , c o n v e y a n d a s s u r e u n t o t h e s a i d R e i d N e w f o u n d -l a n d Company a n d i t s a s s i g n s , a l l a n d s i n g u l a r t h o s e c e r t a i n p a r c e l s o f l a n d a n d p r e m i s e s s e t o u t i n t h e S c h e d u l e h e r e t o a t t a c h e d , . . . t o g e t h e r w i t h a l l a n d s i n g u l a r t h e w o o d s , w a y s , w a t e r c o u r s e s , m i n e s , o r e s , a n d m i n e r a l s o f e v e r y k i n d , i n c l u d i n g p r e c i o u s m e t a l s , a n d a l l e a s e m e n t s , p r o f i t s a n d a p p u r t e n a n c e s w h a t s o -e v e r t o t h e s a i d p a r c e l s o f t r a c t s o f l a n d a n d p r e m i s e s o r a n y o f t h e m b e l o n g i n g o r i n a n y - w i s e a p p e r t a i n i n g , o r w h i c h c a n be t h e r e w i t h u s e d o r e n j o y e d , a n d t a k e n a s p a r t o r p a r c e l t h e r e o f , o r a s b e l o n g i n g t h e r e t o o r t o a n y p a r t t h e r e o f , a n d t h e 45 r e v e r s i o n o r r e v e r s i o n s , t h e r e m a i n d e r a n d r e m a i n d e r s , r e n t s , a s s i g n s , r e v e n u e s a n d p r o f i t s t h e r e o f , a n d e v e r y p a r t t h e r e o f , a n d a l l o f O u r e s t a t e , r i g h t , t i t l e , i n t e r e s t , t r u s t , c l a i m , p r o p e r t y a n d d e m a n d , b o t h i n l a w a n d e q u i t y , o f , i n t o o r o u t o f t h e s a i d l a n d a n d p r e m i s e s a n d e v e r y p a r t t h e r e o f : To h a v e a n d t o h o l d t h e same u n t o a n d t o t h e s a i d R e i d N e w f o u n d l a n d Company a n d i t s a s s i g n s t o t h e i r own u s e f o r e v e r ( A p p e n d i x 3 ) • I n t h e s e g r a n t s , t i m b e r o w n e r s h i p w a s o n l y one o f t h e t o t a l b u n d l e o f r i g h t s t h a t wa s c o n v e y e d t o t h e o w n e r . T h e o w n e r a n d h i s h e i r s a n d a s s i g n s h a d t h e r i g h t t o t r a n s f e r o w n e r s h i p o f p a r t o r a l l o f t h e i r b u n d l e o f r i g h t s t o o t h e r s , a n d t h i s r i g h t wa s e x e r c i s e d i n many c a s e s . The t i m b e r s u p p l y a r e a s o f t w o p r e s e n t d a y p u l p a n d p a p e r m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k c o n t a i n a r e a s o f f r e e h o l d l a n d s w h i c h w e r e o r i g i n a l l y g r a n t e d f o r r a i l w a y c o n s t r u c t i o n . I n d e c i d i n g t o p a y f o r r a i l w a y c o n s t r u c t i o n t h r o u g h g r a n t s o f l a n d t h e N e w f o u n d l a n d G o v e r n m e n t wa s f o l l o w i n g a w e l l e s t a b l i s h e d p r e c e d e n t . E a r l i e r i n t h e c e n t u r y t h i s p r a c t i c e h a d b e e n a d o p t e d b y t h e U n i t e d S t a t e s C o n g r e s s t o e n c o u r a g e t h e d e v e l o p m e n t o f t h e A m e r i c a n W e s t . I n 18j30 t h e C a n a d i a n G o v e r n m e n t s i g n e d a c o n t r a c t w i t h t h e C a n a d i a n P a c i f i c R a i l w a y u n d e r w h i c h 2000 m i l e s o f r a i l w a y w e r e t o b e c o n s t r u c t e d t o t h e P a c i f i c C o a s t ( H e d g e s , 1 9 3 4 ) . U n d e r t h i s c o n t r a c t t h e company wa s t o r e c e i v e a c a s h s u b s i d y o f $25 m i l l i o n p l u s 25 m i l l i o n a c r e s o f l a n d . The l a n d p a y m e n t a m o u n t e d t o 1 2 , 5 0 0 a c r e s p e r m i l e o f l i n e c o n s t r u c t e d w h i c h wa s 2 .5 t i m e s t h e amount g r a n t e d u n d e r t h e f i r s t N e w f o u n d l a n d r a i l w a y c o n t r a c t . 46 I n a l l , t h e R e i d f a m i l y i n t e r e s t s w h i c h c o m p l e t e d c o n s t r u c t i o n o f t h e r a i l w a y a c r o s s N e w f o u n d l a n d i n 1897, a c q u i r e d 151 f e e s i m p l e l o t s w i t h a t o t a l a r e a o f 3 , 9 9 7 s q u a r e m i l e s , a s a r e s u l t o f v a r i o u s r a i l w a y a g r e e m e n t s w i t h t h e N e w f o u n d l a n d G o v e r n m e n t ( K e n n e d y , 1 9 5 5 ) . M o s t o f t h e s e ' R e i d L o t s ' w e r e d e s i g n a t e d b y n u m b e r s f r o m 3 t o 2 4 7 , a n d w e r e c o m m o n l y r e f e r r e d t o b y t h e s e n u m b e r s . The l o t s i n c l u d e d some c h o i c e t i m b e r l a n d s l o c a t e d a d j a c e n t t o t h e r a i l w a y i n C e n t r a l a n d W e s t e r n N e w f o u n d l a n d . T h e y w e r e g r a n t e d b e t w e e n 1896 a n d 1912 a n d r a n g e d i n s i z e f r o m s e v e r a l h u n d r e d a c r e s t o 100 s q u a r e m i l e s ( N e w f o u n d l a n d F o r e s t S e r v i c e , 1 9 6 4 ) . Many o f t h e R e i d L o t s c o n t a i n e d f o r e s t l a n d w i t h i n t h r e e m i l e s o f t h e c o a s t . I n 1 9 0 4 , l e g i s l a t i o n was p a s s e d w h i c h h a d t h e e f f e c t o f m a k i n g t h i s t i m b e r a v a i l a b l e t o f i s h e r m e n f o r d o m e s t i c wood s u p p l i e s (New-f o u n d l a n d , I 9 O 4 ) . C u t t i n g r i g h t s t o a p p r o x i m a t e l y 649 s q u a r e m i l e s w e r e s u r r e n d e r e d b y t h e R e i d N e w f o u n d l a n d Company w h i c h w a s f o r m e d i n 1901 b y R . G . R e i d t o o p e r a t e t h e r a i l w a y a n d h i s o t h e r e n t e r p r i s e s . A s p a r t c o m p e n -s a t i o n f o r t h i s , t h e G o v e r n m e n t a g r e e d t o i s s u e a 99 - y e a r , 324 s q u a r e - m i l e r e n e w a b l e t i m b e r l e a s e f r e e f r o m r e n t a l o r r o y a l t y c h a r g e s . The l e a s e w a s n e v e r i s s u e d a n d t h e G o v e r n m e n t w a s l a t e r r e l i e v e d o f t h i s o b l i g a t i o n u n d e r a 1923 a g r e e m e n t w h i c h s e t t l e d a d i s p u t e b e t w e e n t h e R e i d N e w f o u n d l a n d Company a n d t h e G o v e r n m e n t c o n c e r n i n g t h e o p e r a t i o n o f t h e r a i l w a y ( N e w f o u n d l a n d , 1 9 2 3 ) . 47 The R e i d i n t e r e s t s w e r e r a t h e r u n i q u e i n N e w f o u n d l a n d i n t h a t t h e y w e r e t h e o n l y o n e s t o r e c e i v e s u c h l a r g e s c a l e f e e s i m p l e g r a n t s o f f o r e s t l a n d . M o s t o t h e r a l l o c a t i o n s o f t i m b e r l a n d s b y g o v e r n m e n t w e r e made i n t h e f o r m o f l o n g t e r m l e a s e s a n d l i c e n s e s . The l o c a t i o n o f t h e R e i d l a n d s i s shown on Map 1 , A p p e n d i x 7 . A c o p y o f a R e i d G r a n t i s c o n t a i n e d i n A p p e n d i x 3• The o n l y o t h e r s i g n i f i c a n t f r e e h o l d g r a n t s o f l a n d w e r e made t o The New Y o r k , N e w f o u n d l a n d a n d L o n d o n T e l e g r a p h Company w h i c h was i n c o r p o r a t e d i n 1854 (New-f o u n d l a n d , 1 8 5 4 ) . U n d e r t h e p r o v i s i o n s o f t h e A c t o f i n c o r p o r a t i o n t h e Company was e n t i t l e d t o r e c e i v e f e e s i m p l e l a n d g r a n t s f o r up t o 100 s q u a r e m i l e s o f u n o c c u -p i e d C r o w n L a n d s . B e t w e e n 1857 a n d 1 8 8 9 , 17 a r e a s w e r e g r a n t e d i n v a r i o u s p a r t s o f t h e I s l a n d f o r a t o t a l o f 9 7 . 1 s q u a r e m i l e s ( N e w f o u n d l a n d F o r e s t S e r v i c e , I 9 6 4 ) . T he l o c a t i o n o f t h e s e a r e a s i s shown on Map 1 , A p p e n d i x 7-T i m b e r L e a s e L i k e a f r e e h o l d g r a n t , a l e a s e u s u a l l y g i v e s e x c l u s i v e p o s s e s s i o n o f t h e l a n d . The m a i n d i s t i n c t i o n b e t w e e n l e a s e h o l d a n d f r e e h o l d i s t h a t a l e a s e h o l d i s f o r a l i m i t e d p e r i o d o f t i m e a n d i s s u b j e c t t o w h a t e v e r t e r m s , c o n d i t i o n s a n d c h a r g e s a r e s p e c i f i e d i n t h e l e a s e . A f r e e h o l d o w n e r c a n l e a s e a l l o r p a r t o f h i s i n t e r e s t t o a p i e c e o f l a n d t o a n o t h e r p a r t y . T h u s l e a s e h o l d r i g h t s c a n b e c o n s i d e r a b l y l e s s t h a n f r e e h o l d r i g h t s , d e p e n d i n g 48 on t h e t e r m s o f t h e l e a s e . The l e s s e e n o r m a l l y h a s t h e r i g h t t o a s s i g n ( s u b - l e a s e ) a l l o r some o f t h e r i g h t s g r a n t e d t o h i m b y t h e o r i g i n a l l e s s o r ( M e g a r r y , 1 9 4 7 ) . On J u n e 5 t h , 1905 t h e N e w f o u n d l a n d L e g i s l a t u r e p a s s e d a n A c t w h i c h l e d t o t h e e s t a b l i s h m e n t o f a p u l p a n d p a p e r m i l l a t G r a n d F a l l s i n C e n t r a l N e w f o u n d l a n d ( N e w f o u n d l a n d , 1 9 0 5 ) . A l e a s e was g r a n t e d t o t h e A n g l o -N e w f o u n d l a n d D e v e l o p m e n t Company t o a p p r o x i m a t e l y 2 , 0 0 0 s q u a r e m i l e s o f l a n d i n t h e u p p e r p a r t o f t h e E x p l o i t s R i v e r W a t e r s h e d a r o u n d R e d I n d i a n L a k e a n d V i c t o r i a L a k e . S e c t i o n 1 o f t h e S c h e d u l e t o t h e A c t r e a d s i n p a r t a s f o l l o w s : 1. The G o v e r n m e n t h e r e b y d e m i s e s t o t h e L e s s e e a l l a n d s i n g u l a r t h e l a n d s , a n d l a n d s c o v e r e d b y w a t e r , s i t u a t e i n t h e d i s t r i c t s a d j o i n i n g R e d I n d i a n a n d V i c t o r i a L a k e s i n t h e I s l a n d o f N e w f o u n d l a n d . . . t o g e t h e r w i t h , b y way o f g r a n t , s a l e o r d e m i s e , a n d n o t o f e x c e p t i o n , a l l t i m b e r a n d t r e e s b e i n g on t h e s a i d l a n d s , a n d a l s o a l l m i n e s a n d m i n e r a l s t h e r e i n a n d t h e r e u n d e r ; t o h o l d a l l t h e s a i d p r e m i s e s h e r e i n -b e f o r e e x p r e s s e d t o be h e r e b y g r a n t e d a n d d e m i s e d u n t o t h e L e s s e e f o r t h e t e r m o f n i n e t y - n i n e y e a r s , c o m p u t e d f r o m t h e d a y o f t h e d a t e h e r e o f a t t h e r e n t s a n d r o y a l t i e s h e r e i n a f t e r r e s e r v e d . The l e s s e e was r e q u i r e d t o c a r r y o u t a s u r v e y o f t h e a r e a . An a n n u a l r e n t o f $ 2 . 0 0 p e r s q u a r e m i l e wa s t o be p a i d , b u t swamp a n d b a r r e n l a n d s w e r e e xempt f r o m p a y m e n t . The l e s s e e e n j o y e d w a t e r r i g h t s a n d t h e r i g h t t o dam o r d i v e r t w a t e r c o u r s e s f o r l o g g i n g o p e r a t i o n s w a s a l s o g r a n t e d . P u b l i c r i g h t s o f a c c e s s f o r f i s h i n g a n d h u n t i n g w e r e p r o t e c t e d . A l s o t h e p u b l i c h a d t h e r i g h t t o 49 u s e t h e w a t e r w a y s o f t h e l e a s e d a r e a s f o r f l o a t i n g l o g s t o m i l l s , on p a y m e n t ' o f a f e e t o t h e l e s s e e . The f o r e s t r y t e r m s o f t h e l e a s e c a n be s u m m a r i z e d a s f o l l o w s : 1) . t h e l e s s e e w a s g i v e n t h e r i g h t t o h a r v e s t a l l k i n d s o f t i m b e r on t h e a r e a , 2) a r o y a l t y o f $0 .50 p e r t h o u s a n d b o a r d f e e t wa s p a y a b l e on a n y l u m b e r m a n u f a c t u r e d , 3 ) t h e r e w a s n o r o y a l t y o r s t u m p a g e c h a r g e f o r p u l p w o o d , 4) t h e l e s s e e w a s r e q u i r e d t o u t i l i z e a l l t i m b e r h a r v e s t e d , 5 ) t h e l e s s e e w a s r e s p o n s i b l e f o r f o r e s t p r o t e c t i o n , 6) t h e l e s s e e w a s t o make a n n u a l r e t u r n s t o g o v e r n m e n t on t i m b e r h a r v e s t e d , 7) t h e l e s s e e w a s t o o b t a i n g o v e r n m e n t p e r m i s s i o n b e f o r e e x p o r t i n g u n p r o c e s s e d w o o d . The l e a s e w a s c o n v e n t i o n a l i n t h e s e n s e t h a t i t g a v e t h e l e s s e e r i g h t s t o t h e l a n d a n d t o s p e c i f i e d t i m b e r , w a t e r a n d m i n e r a l r e s o u r c e s . H o w e v e r , t h e l e s s e e d i d n o t h a v e e x c l u s i v e p o s s e s s i o n o f t h e l a n d . The l e s s e e d i d h a v e e x c l u s i v e r i g h t t o o c c u p y t h e l a n d f o r t h e p u r p o s e o f h a r v e s t i n g t i m b e r , e x t r a c t i n g m i n e r a l s a n d s p e c i f i e d w a t e r p o w e r r i g h t s . 50 A l t h o u g h t h e p e r i o d i s 99 y e a r s , t h e s c h e d u l e t o t h e A c t c o n t a i n s a r e n e w a l c l a u s e w h i c h g i v e s v i r t u a l l y p e r p e t u a l t e n u r e t o t h e p r o p e r t y i f t h e l e s s e e c h o o s e s t o e x e r c i s e t h i s r i g h t . A t t h e e x p i r y o f e a c h s u c c e s s i v e 9 9 -y e a r p e r i o d , t h e l e s s e e c a n h a v e t h e l e a s e r e n e w e d u n d e r t h e same t e r m s a n d c o n d i t i o n s . T h u s t h e l e s s e e ' s r i g h t s c a n e x t e n d f o r a n i n f i n i t e p e r i o d o f t i m e . W h i l e t h e l e a s e i s r e n e w a b l e , t h e t e r m s a n d c o n d i t i o n s a r e f i x e d , so t h e r e i s no p r o v i s i o n i n t h e A c t f o r r e n e g o t i a t i o n o f r e n t a l , r o y a l t y , o r s t u m p a g e c h a r g e s . T h i s w a s t h e o n l y l a r g e -s c a l e t i m b e r l e a s e o f t h i s n a t u r e i s s u e d b y t h e N e w f o u n d l a n d G o v e r n m e n t . The l o c a t i o n o f t h i s l e a s e i s shown on Map 1 i n A p p e n d i x 7 . T i m b e r L i c e n s e s T h e r e a r e v a r i o u s k i n d s o f l i c e n s e s d e f i n e d i n l e g a l t e r m s . T i m b e r l i c e n s e s seem t o f i t t h e d e f i n i t i o n o f a " l i c e n s e c o u p l e d w i t h a n i n t e r e s t " w h i c h h a s b e e n d e f i n e d , i n p a r t , a s f o l l o w s : L i c e n s e c o u p l e d w i t h a n i n t e r e s t . A l i c e n s e may be c o u p l e d w i t h some i n t e r e s t i n t h e l a n d o r c h a t t e l s t h e r e o n . T h u s t h e r i g h t t o e n t e r a n o t h e r m a n ' s l a n d t o h u n t a n d t a k e away t h e d e e r k i l l e d , o r t o e n t e r a n d c u t down a t r e e a n d t a k e i t a w a y , i n v o l v e s t w o t h i n g s , n a m e l y , a l i c e n s e t o e n t e r t h e l a n d a n d t h e g r a n t o f a n i n t e r e s t i n t h e d e e r o r t r e e . A t common l a w s u c h a l i c e n s e was b o t h i r r e v o c a b l e a n d a s s i g n a b l e . B u t t h e i n t e r e s t h a d t o b e a l e g a l i n t e r e s t , s u c h a s a l e g a l p r o f i t . . . o r t h e o w n e r s h i p o f t i m b e r l y i n g on t h e l a n d o r t o be c u t f o r t h w i t h . . . ( M e g a r r y , 1 9 4 7 ) . N e w f o u n d l a n d t i m b e r l i c e n s e s a p p e a r t o f i t t h i s d e f i n i t i o n . The b e n e f i t s c o n f e r r e d b y t h e s e l i c e n s e s 51 c o u l d be a s s i g n e d a n d t h e l i c e n s e d i d g i v e e x c l u s i v e p o s s e s s i o n o f t h e t i m b e r ( w i t h r e s e r v a t i o n s f o r p u b l i c u s e ) f o r t h e p u r p o s e s s t a t e d . H o w e v e r , i n a d e c i s i o n on a l e g a l d i s p u t e i n v o l v i n g a t i m b e r l i c e n s e on t h e G a n d e r R i v e r w a t e r s h e d i n 1904, t h e P r i v y C o u n c i l c o n c l u d e d t h a t N e w f o u n d l a n d t i m b e r l i c e n s e s w e r e r e a l l y l e a s e s ( D a v e y , 190J+). T h u s , a l t h o u g h t h e d o c u m e n t s w e r e common l y c a l l e d t i m b e r l i c e n s e s , t h e y w e r e n o t l i c e n s e s i n t h e t r u e l e g a l s e n s e . The t e r m t i m b e r l i c e n s e w i l l b e r e t a i n e d f o r t h e p u r p o s e s o f t h i s s t u d y t o d i s t i n g u i s h t h e s e d o c u m e n t s f r o m t h e p e r p e t u a l l e a s e i s s u e d t o t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company . M o s t a l i e n a t i o n o f p u b l i c t i m b e r r i g h t s t o p r i v a t e o w n e r s i n N e w f o u n d l a n d wa s a c c o m p l i s h e d t h r o u g h l e g a l d o c u m e n t s w h i c h w e r e known a s t i m b e r l i c e n s e s . W i t h f e w e x c e p t i o n s t h e y w e r e i s s u e d f o r v a r y i n g p e r i o d s o f 21 , 50 o r 99 y e a r s , a n d w e r e n o t r e n e w a b l e a t t h e o p t i o n o f t h e l i c e n s e e . The l a n d r e n t a l c h a r g e w a s u s u a l l y $2 .00 p e r s q u a r e m i l e . T h e r e w a s a l s o a r o y a l t y c h a r g e f o r wood h a r v e s t e d a n d p r o c e s s e d i n t o l u m b e r b u t t h e r e wa s n o c h a r g e on wood h a r v e s t e d f o r p r o c e s s i n g i n a p u l p o r p a p e r m i l l . P u b l i c r i g h t s t o c u t t i m b e r f o r d o m e s t i c n e e d s a n d f o r t h e f i s h e r y w e r e p r o t e c t e d . The p u b l i c was a l s o a l l o w e d t o make u s e o f r o a d s a n d t r a v e l o v e r t h e g r o u n d s o f t h e l i c e n s e d a r e a . 52 I n T a b l e I a summary o f t h e t o t a l a r e a a l i e n a t e d on t h e I s l a n d a n d i n L a b r a d o r i s g i v e n . F r o m t h e t a b l e i t c a n be s e e n t h a t 89 p e r c e n t o f t h e a r e a was d i s p o s e d o f t h r o u g h t h e i s s u a n c e o f t i m b e r l i c e n s e s . T A B L E I SUMMARY OF A L I E N A T I O N S , I SLAND AND LABRADOR, 1897-1946 T y p e o f A r e a P e r c e n t o f O w n e r s h i p ( s q u a r e m i l e s ) T o t a l A r e a A l i e n a t e d . F r e e h o l d 4 , 0 9 4 7 L e a s e h o l d 2 , 0 0 0 4 L i c e n s e 4 9 , 4 3 6 89 T o t a l s 5 5 , 5 3 0 100 SOURCE: C o m p i l e d b y w r i t e r f r o m G o v e r n m e n t r e c o r d s a n d K e n n e d y ( 1 9 5 5 ) . T i m b e r L i c e n s e L e g i s l a t i o n The d e v e l o p m e n t o f t i m b e r l i c e n s e l e g i s l a t i o n i n N e w f o u n d l a n d i s o u t l i n e d i n d e t a i l i n A p p e n d i x 1 a n d o n l y a b r i e f summary i s i n c l u d e d h e r e . A p p e n d i x 2 c o n t a i n s a t a b u l a r c h r o n o l o g i c a l summary o f t h e m a i n t e r m s a n d c o n d i t i o n s o f t h e C r o w n L a n d s A c t s . The f i r s t l a r g e - s c a l e l i c e n s e s w e r e a u t h o r i z e d f o r t h e p r o v i s i o n o f wood s u p p l y a r e a s t o s a w m i l l s i n t h e C r own L a n d s A c t o f 1875 ( N e w f o u n d l a n d , 1 8 7 5 ) . A r e a s o f up t o 36 s q u a r e m i l e s c o u l d be l i c e n s e d on a n a n n u a l 53 r e n e w a b l e b a s i s . I n 1881+ t h e i s s u e o f 2 1 - y e a r l i c e n s e s f o r s a w m i l l s wa s a u t h o r i z e d ( N e w f o u n d l a n d , 1 8 8 4 ) . The l i c e n s e e wa s r e q u i r e d t o e r e c t a s a w m i l l o f s p e c i f i e d c a p a c i t y , p a y a n a n n u a l r e n t a l o f $2 .00 p e r s q u a r e m i l e p l u s a b o n u s a n d a r o y a l t y c h a r g e . The f i r s t p r o v i s i o n f o r t h e i s s u e o f l i c e n s e s f o r p u l p m i l l s was made i n t h e C rown L a n d s A c t o f 1890 ( N e w f o u n d l a n d , 1 890 ) . L i c e n s e s o f f r o m 5 t o 150 s q u a r e m i l e s c o u l d be i s s u e d f o r 99 y e a r s on t h e c o n d i t i o n t h a t c e r t a i n c a p i t a l e x p e n d i t u r e s w o u l d be made on p l a n t a n d e q u i p m e n t . R e n t a l c h a r g e s w e r e p a y a b l e on t h e 1 s t , 2 5 t h , 5 0 th a n d 7 5 t h y e a r s . T h e r e wa s no r o y a l t y c h a r g e s p e c i f i e d . T h i s s c h e d u l e o f c h a r g e s was c h a n g e d i n 1899 when a b o n u s o f $5 .00 p e r s q u a r e m i l e was s e t a n d a n a n n u a l r e n t a l c h a r g e o f $3.00 p e r s q u a r e m i l e e s t a b l i s h e d f o r t h e b a l a n c e o f t h e l i c e n s e p e r i o d ( N e w f o u n d l a n d , 1 899 ) . I n 1901 t h e p e r i o d f o r s a w m i l l l i c e n s e s wa s i n c r e a s e d t o 50 y e a r s a n d r o y a l t y c h a r g e s w e r e s e t a t $0.50 p e r 1000 b o a r d f e e t f o r p r o d u c t i o n o f m i l l s on t h e I s l a n d a n d $0.25 p e r 1000 b o a r d f e e t f o r p r o d u c t i o n o f m i l l s i n L a b r a d o r ( N e w f o u n d l a n d , 1 901 ) . The p r a c t i c e o f i s s u i n g s e p a r a t e l i c e n s e s f o r s a w m i l l s a n d p u l p a n d p a p e r m i l l s was cumber some b e c a u s e wood h a r v e s t e d u n d e r a s a w m i l l l i c e n s e c o u l d n o t be u s e d i n a p u l p m i l l a n d v i c e v e r s a . I n 1911 a g e n e r a l p u r p o s e 99 y e a r l i c e n s e wa s i n t r o d u c e d w h i c h c o u l d be u s e d f o r 54 e i t h e r k i n d o f m i l l ( N e w f o u n d l a n d , 1 9 1 1 ) . The a n n u a l l a n d r e n t a l c h a r g e was $ 2 . 0 0 p e r s q u a r e m i l e . The r o y a l t y c h a r g e o f $ 0 . 5 0 p e r 1000 b o a r d f e e t w a s p a y a b l e on t h e p r o d u c t i o n o f s a w m i l l s on t h e I s l a n d ( $ 0 . 2 5 f o r m i l l s i n L a b r a d o r ) b u t t h e r e was s t i l l n o r o y a l t y c h a r g e on wood p r o c e s s e d i n p u l p m i l l s . T h e maximum a r e a t h a t c o u l d be l i c e n s e d f o r s a w m i l l s wa s 10 s q u a r e m i l e s p e r 1000 b o a r d f e e t o f i n s t a l l e d d a i l y c a p a c i t y . The c a p a c i t y r e q u i r e m e n t f o r p u l p m i l l s wa s t o be s e t b y t h e G o v e r n o r i n C o u n c i l . D u r i n g t h e p e r i o d f r o m 1899 t o 1911 t h e r e w a s a g e n e r a l r e l a x a t i o n o f t h e t e r m s a n d c o n d i t i o n s u n d e r w h i c h t i m b e r l i c e n s e s w e r e i s s u e d a n d a d m i n i s t e r e d . The p e r i o d o f l i c e n s e s became l o n g e r , t h e a r e a s w h i c h c o u l d be l i c e n s e d became l a r g e r a n d o t h e r p e r f o r m a n c e r e q u i r e m e n t s c o n c e r n i n g t h e e s t a b l i s h m e n t o f s u r v e y l i n e s a n d e r e c t i o n o f s a w m i l l s o r p u l p m i l l s w e r e r e l a x e d . Some c o n d i t i o n s t h a t w e r e e a r l i e r s p e c i f i e d i n t h e l e g i s l a t i o n w e r e l e f t u p t o t h e G o v e r n o r i n C o u n c i l t o d e t e r m i n e . The C r own L a n d s A c t o f 1911 wa s t h e b a s i c l e g i s -l a t i o n u n d e r w h i c h m o s t o f t h e f o r e s t a r e a s o f t h e I s l a n d a n d L a b r a d o r w e r e a l l o c a t e d . L i c e n s e s w h i c h h a d b e e n i s s u e d e a r l i e r c o u l d be e x c h a n g e d f o r new l i c e n s e s u n d e r t h e t e r m s o f t h e 1911 l e g i s l a t i o n w h i c h w e r e g e n e r a l l y mo re f a v o r a b l e t o t h e l i c e n s e e . T h e r e w e r e m i n o r amendment s t o t h e C r own L a n d s A c t i n 1918 ( N e w f o u n d l a n d , 1918) a n d t h e s e c t i o n o f t h e A c t d e a l i n g w i t h t i m b e r l i c e n s e s wa s r e v i s e d i n 1930 55 ( N e w f o u n d l a n d , 1 9 3 0 ) . H o w e v e r , b y t h i s t i m e p r a c t i c a l l y a l l t h e t i m b e r l i c e n s e s h a d b e e n i s s u e d a n d no l i c e n s e s w e r e i s s u e d u n d e r t h e 1930 l e g i s l a t i o n . G o v e r n m e n t A d m i n i s t r a t i o n o f t h e T i m b e r L i c e n s e L e g i s l a t i o n The e a r l y 1 9 0 0 ' s , when m o s t o f t h e t i m b e r l i c e n s e s w e r e b e i n g i s s u e d , w e r e y e a r s o f p o l i t i c a l f e r m e n t i n N e w -f o u n d l a n d . The L i b e r a l G o v e r n m e n t o f S i r R o b e r t B o n d was r e p l a c e d b y t h e C o n s e r v a t i v e P e o p l e ' s P a r t y o f E d w a r d M o r r i s i n 1909 ( N o e l , 1 9 7 1 ) . N o e l h a s d e s c r i b e d t h e c h a n g e s t h a t w e r e t a k i n g p l a c e . I n some r e s p e c t s t h e c h a n g e f r o m t h e g o v e r n m e n t o f R o b e r t B o n d t o t h a t o f E d w a r d M o r r i s may be v i e w e d a s a r e f l e c t i o n o f c e r t a i n u n d e r l y i n g s o c i o e c o n o m i c d e v e l o p m e n t s , f o r t h e p a r t y o f t h e l a t t e r was p r e -p o n d e r a n t l y a p a r t y o f ' n e w m e n ' o f whom M o r r i s h i m s e l f was t h e a r c h e t y p e . T h e y w e r e d r a w n n o t f r o m t h e r a n k s o f t h e o l d m e r c h a n t T o r y p a r t y , b u t r a t h e r f r o m a new c l a s s o f s e l f - m a d e men : o u t p o r t m e r c h a n t s who h a d p r o f i t e d f r o m t h e r a i l w a y boom o f t h e n i n e t i e s a n d t h e g e n e r a l l y p r o s p e r o u s f i s h e r y a f t e r t h e t u r n o f t h e c e n t u r y ; n e w l y e s t a b l i s h e d l a w y e r s who se p r a c t i c e s owed n o t h i n g t o f a m i l y c o n n e c t i o n w i t h t h e S t . J o h n ' s m e r c h a n t e l i t e ; a n d a new b r e e d o f s m a l l b u s i n e s s m e n , u n u s u a l i n t h a t t h e i r a c t i v i t i e s w e r e n o t d i r e c t l y r e l a t e d t o t h e f i s h e r y . T h e y w e r e c h a r a c t e r i s t i c a l l y t o u g h -m i n d e d , a b l e , a n d mo re t h a n a l i t t l e r u t h l e s s . T h e y w e r e a l s o a m b i t i o u s , a n d , a s a l w a y s i n N e w f o u n d l a n d ( w h e r e b u s i n e s s a l o n e p r o v i d e d n o n e o f t h e o u t l e t s f o r t a l e n t t h a t i t d i d i n t h e U n i t e d S t a t e s o r C a n a d a ) , ' a m b i t i o n ' t u r n e d i n t o ' p o l i t i c a l a m b i t i o n ' . P o l i t i c a l c h a n g e a n d e c o n o m i c d e v e l o p m e n t w e r e i n t i m a t e l y a s s o c i a t e d w i t h d e v e l o p m e n t o f f o r e s t r e s o u r c e s o f t h e i n t e r i o r : 56 By 1905 t h e r a i l w a y , a n d t h e s a w m i l l s t h a t f o l l o w e d i t i n t o t h e w e s t e r n i n t e r i o r , h a d a l r e a d y q u i c k e n e d t h e i n t e r e s t o f t i m b e r s p e c u l a t o r s ; b y O c t o b e r 1 9 0 9 , when n e w s p r i n t p r o d u c t i o n b e g a n a t G r a n d F a l l s , t h e g r e a t e s t s p e c u l a t i v e boom i n t h e I s l a n d ' s h i s t o r y wa s i n f u l l s w i n g . T h i s c o i n c i d e d w i t h t h e a c c e s s i o n t o p o w e r o f S i r E d w a r d M o r r i s a n d h i s p a r t y , w i t h c o n s e q u e n c e s t h a t c a n o n l y be d e s c r i b e d a s s p e c t a c u l a r . N e w f o u n d l a n d g o v e r n m e n t s h a d r a r e l y , i f e v e r , b e e n p a r a g o n s o f f i n a n c i a l p r o b i t y , b u t b y 1909 t h e r e w e r e o p p o r t u n i t i e s f o r c o r r u p t i o n on a s c a l e h i t h e r t o u n d r e a m e d o f . And t h e ' n e w m e n ' w e r e n o t t h e s o r t t o l e t o p p o r t u n i t i e s s l i p ( N o e l , 1 9 7 1 ) . The C r own L a n d s A c t s o f 1901 a n d 1903 c o n t a i n e d t w o m a i n p r o v i s i o n s w h i c h a c t e d a s a d e t e r r e n t t o t h o s e a c q u i r i n g t i m b e r r i g h t s p u r e l y f o r t h e p u r p o s e s o f s p e c u l a t i o n . One o f t h e s e c l a u s e s wa s t h e r e q u i r e m e n t t h a t 3 - f o o t - w i d e b o u n d a r y l i n e s be c u t a r o u n d l i c e n s e d a r e a s w i t h i n one y e a r o f t h e d a t e o f a p p r o v a l o f t h e l i c e n s e . W h i l e t h i s p r o v i s i o n d o e s n o t a p p e a r t o h a v e b e e n t o o s e r i o u s a d e t e r r e n t t o a p p l i c a n t s f o r a c c e s s i b l e p a r t s o f t h e I s l a n d , i t a p p a r e n t l y a c t e d a s a s e r i o u s h i n d r a n c e t o t h e a c t i v i t i e s o f t i m b e r s p e c u l a t o r s i n L a b r a d o r ( N o e l , 1 9 7 1 ) . The o t h e r p r o v i s i o n , w h i c h w a s e v e n mo re b u r d e n s o m e t h a n t h e b o u n d a r y l i n e c l a u s e , was t h e r e q u i r e m e n t f o r t h e l i c e n s e e t o e r e c t a n d o p e r a t e a s a w m i l l o r o t h e r wood p r o c e s s i n g p l a n t w i t h i n a s p e c i f i e d p e r i o d f r o m t h e e f f e c t i v e d a t e o f t h e l i c e n s e . The r e q u i r e m e n t t o e s t a b l i s h p r o p e r s u r v e y l i n e s a r o u n d l i c e n s e d a r e a s wa s d r o p p e d b y t h e M o r r i s a d m i n i s -t r a t i o n i n 1911 . B u t w h i l e t h e G o v e r n m e n t c h a n g e d t h e 57 Crown Lands Act to ease the requirement for licensees to cut proper boundary lines, i t adopted a different approach concerning the requirement for the licensee to erect a processing plant. The Prime Minister, in a letter to the Governor, indicated that the practice of the Department of Agriculture and Mines (". . . a practice sanctioned and approved by past Governments and by Ministers of Agriculture and Mines who have been members of past governments . . .") was simply to ignore the provisions of the Act which required the erection of a sawmill within a specified time period (Morris, 1912). Under the Government licensing system, appli-cations were approved for extensive forest areas which were worthless from the point of view of timber production. For three years, 1909-1911, license applications approved for Labrador totalled approximately 151,000 square miles or 1./+ times the present total area of the territory. However, only a portion of this area was subsequently licensed. Old government maps drawn up during the period show large areas allocated to the Anglo-American Development Company and others well north and west of what i s now known to be the productive forest area of Labrador. Other maps (see Map 2, Appendix 7) show the areas licensed by the Anglo-American Development Company to be greatly reduced in size, presumably after ground surveys revealed the limited timber stands on these areas. 58 Even those interested in short term speculative gains had to pay the cash bonus of $2 per square mile on the whole area applied for and a further $2 per square mile rental; or $4 per square mile within 30 days of the approval of their application. For example, the Anglo-American Development Company paid $55,412 for the bonus and f i r s t year's rent on 13,853 square miles i n Labrador (Morison, 1912). An additional $27,706 was paid on December 10, 1910 for extension time for completion of the required survey. The survey results were not very encouraging: . . . I regret to say that the Northern areas taken by the company and of which the survey has been completed have been found to be devoid of timber and absolutely worthless and that the large amounts paid by the Company for rental and survey have been wholly lost. It i s a regrettable fact that up to date there has not been a single timber property developed in Labrador. Many thousands of miles have been applied for but i n the majority of cases they have reverted to the Crown for nonpayment of rent. Mr. Alfred Dickie, an experienced lumberman of Nova Scotia, i s the only person who Erected and operated a sawmill in Labrador and his experience was so disastrous that he was obliged to abandon the venture after two season*s operations and after having suffered very heavy losses (Morison, 1912). Thus, government administration of the timber license legislation could best be described as expedient. The main objective was to encourage development. When the legislation was perceived to be retarding development the 59 o f f e n d i n g c l a u s e s w e r e c h a n g e d o r i g n o r e d . The p r a c t i c e s a d o p t e d c e r t a i n l y f a c i l i t a t e d t h e w h o l e s a l e a l l o c a t i o n o f t h e i n t e r i o r f o r e s t a r e a s o f b o t h t h e I s l a n d a n d L a b r a d o r . W h i l e s p e c u l a t i o n was e n c o u r a g e d , i t was r i s k y , a n d s u b -s t a n t i a l sums o f money c o u l d be l o s t , e s p e c i a l l y b y t h o s e who t o o k o u t t i m b e r l i c e n s e s i n L a b r a d o r . A r e a s A l l o c a t e d T h r o u g h T i m b e r L i c e n s e s I n o r d e r t o e s t a b l i s h t h e h i s t o r i c a l r e c o r d on t h e s e q u e n c e o f d e v e l o p m e n t e f f o r t s t h a t o c c u r r e d a n d t h e c o n d i t i o n s u n d e r w h i c h t h e f i n a l t i m b e r o w n e r s h i p p a t t e r n e v o l v e d , i t wa s n e c e s s a r y t o d e t e r m i n e t h e m a n n e r i n w h i c h t h e i n i t i a l t i m b e r a l l o c a t i o n s w e r e m a d e . S i n c e t h i s h a d n e v e r b e e n d o n e , a c o n s i d e r a b l e amount o f r e s e a r c h i n t o g o v e r n m e n t r e c o r d s was n e c e s s a r y . T h i s s e c t i o n b r i e f l y o u t l i n e s t h e m e t h o d u s e d a n d t h e r e s u l t s o b t a i n e d . The l i c e n s e d o c u m e n t s t h e m s e l v e s c o n t a i n e d a n u m b e r o f m a i n p a r t s . F i r s t t h e r e was a p r e a m b l e w h i c h c o n t a i n e d t h e G r e e t i n g , t h e name o f t h e a p p l i c a n t a n d t h e l e g i s l a t i v e a u t h o r i t y u n d e r w h i c h t h e l i c e n s e was b e i n g i s s u e d . N e x t came a l e g a l d e s c r i p t i o n o f t h e a r e a , f o l l o w e d b y a l i s t o f t e r m s a n d c o n d i t i o n s w h i c h t h e l i c e n s e e was r e q u i r e d t o p e r f o r m . E a c h l i c e n s e u s u a l l y c o n t a i n e d t w o d a t e s . One was t h e d a t e o f i s s u e , o r t h e d a t e on w h i c h t h e C o l o n i a l S e c r e t a r y s i g n e d t h e p r e p a r e d d o c u m e n t . The s e c o n d was t h e ' e f f e c t i v e d a t e ' o f t h e l i c e n s e , w h i c h was s o m e t i m e s d i f f e r e n t f r o m t h e d a t e o f i s s u e . The e f f e c t i v e d a t e was 60 the date from which the term of the license was calculated. A copy of a license i s contained i n Appendix 4« I t was somewhat d i f f i c u l t to ascertain i n complete d e t a i l a l l that transpired within Government concerning the issuing of timber licenses. F i r s t , some records of early licenses were probably l o s t i n a f i r e that destroyed much of St. John's i n 16*92 ( T i t f o r d , 1975). Also, a number of Government records, including some f i l e s of the Department of Agriculture and Mines are missing. However most of the records of the Crown Lands Registry have been preserved and these include 10 bound volumes containing copies of timber licenses issued since 1887 f o r the Island and Labrador. Some licenses were issued p r i o r to 1887 but copies of these documents could not be found by the w r i t e r . Sometimes maps contained i n license documents show other fee simple grants or license l o t s f o r reference purposes. The maps i n some early licenses show a l l o c a t i o n s f o r which license documents could not be located. The maps indicate that these areas were not extensive and there were probably not a great number of them, because p r i o r to the 1890's the railway had not penetrated the i n t e r i o r of the Island. In compiling the s t a t i s t i c s on timber licenses f o r the tables and charts which follow, reliance was placed on the information contained i n the Register of Timber Licenses i n the Crown Lands Registry. A number of 61 tabulations of information contained i n timber licenses were found, but f o r various reasons (mainly because a complete chronological tabulation of licenses issued was required) these did not meet the requirements of t h i s t h e s i s , k new l i s t i n g was prepared by the wr i t e r which involved the. following steps: 1) A l i s t was made of a l l the licenses contained i n each Volume of Timber Licenses. The information i n each License was summarized under appropriate headings such as: - e f f e c t i v e date of license - volume and f o l i o number of license - date of issue - name and address of licensee - area of license - general location - terms of license including - duration - bonus - r e n t a l - royalty charge - number of l o t s involved - performance requirements concerning erection of sawmill or pulp m i l l - any unusual terms or conditions 62 From the above, chronological summaries of licenses by e f f e c t i v e date of license were prepared f o r the Island and f o r Labrador. For comparative purposes separate summaries of areas licensed by date of issue were also prepared. Although the same trends i n areas licensed over time were apparent as i n (2) i t was decided to use the data summarized by date of issue since t h i s might more accurately r e f l e c t the p o l i c y of government at the time. By reference to (2), maps accompanying i n d i v i d u a l licenses and an Index to Timber Licenses obtained from the Crown Lands Registry, i t was possible to determine which licenses or parts of licenses were for areas which had not been previously licensed (net areas) and which licenses were simply re a l l o c a t i o n s of formerly alienated areas. Tabulations were then prepared showing f o r the Island and Labrador, the number of licenses issued, the amount of new area (net) licensed each year by type of license and the areas relicensed (reissue). 63 This information i s summarized i n Tables II-IV and Figures 4 and 5. The f i r s t recorded license was issued i n 1887 and l i c e n s i n g a c t i v i t y ceased i n 1944. The numbers of timber licenses issued during t h i s period are summarized i n Table I I . As the table shows there were 386 licenses TABLE I I NUMBER OF TIMBER LICENSES ISSUED BY PERIOD AND TYPE OF LICENSE Period Island Labrador Total 21 (yrs.) 50 99 Total 20 21 (yrs 50 99 Total 1887-90 8 8 8 1891-95 3 1 4 4 1896-1900 25 3 28 3 1 4 32 1901-05 3 45 14 62 9 1 10 72 1906-10 77 31 108 13 2 15 122 1911-15 16 85 101 14 39 53 154 1916 -20 21 21 8 8 29 1921-25 26 26 3 3 29 1926-30 22 22 1 1 23 1931-35 2 2 4 4 1935-46 2 2 3 3 5 Totals 39 140 207 386 3 3 36 55 97 483 SOURCE: Compiled by the w r i t e r from records i n the Crown Lands Registry. 6k i s s u e d f o r t h e I s l a n d a n d 97 f o r L a b r a d o r . T h r e e m a i n t y p e s o f l i c e n s e s w e r e i s s u e d : 2 1 - a n d 5 0 - y e a r s a w m i l l l i c e n s e s , a n d 9 9 - y e a r l i c e n s e s w h i c h w e r e i n i t i a l l y o n l y i s s u e d f o r p u l p a n d p a p e r m i l l s b u t w h i c h a f t e r 1911 w e r e i s s u e d a s g e n e r a l p u r p o s e l i c e n s e s f o r b o t h k i n d s o f p r o c e s s i n g p l a n t . An e x c e p t i o n t o t h e n o r m a l l i c e n s e t e r m i s f o u n d i n t h r e e 2 0 - y e a r l i c e n s e s f o r L a b r a d o r w h i c h w e r e i s s u e d u n d e r t h e p r o v i s i o n s o f t h e L a b r a d o r ( S m a l l C o n -c e s s i o n s ) A c t r a t h e r t h a n u n d e r t h e C rown L a n d s A c t (New-f o u n d l a n d , 1 9 3 6 ) . T h e s e w e r e a l l f o r a s i n g l e 6 l - s q u a r e m i l e a r e a w h i c h was o r i g i n a l l y l i c e n s e d i n 1938 t o a n i n d i v i d u a l a n d was r e - l i c e n s e d i n t h e name o f h i s company i n 1 9 3 9 . The s e c o n d W o r l d War i n t e r f e r e d w i t h p l a n s f o r d e v e l o p m e n t a n d t h e a r e a wa s l i c e n s e d t o t h e same i n t e r e s t s a g a i n i n 194-6. The l i c e n s e wa s c a n c e l l e d i n 1950 f o r n o n -p e r f o r m a n c e o f t e r m s a n d c o n d i t i o n s ( K e n n e d y , 1 9 5 5 ) . Many o f t h e l i c e n s e s i s s u e d w e r e f o r a r e a s o r p a r t s o f a r e a s w h i c h h a d b e e n p r e v i o u s l y l i c e n s e d . S o m e t i m e s o r i g i n a l l i c e n s e s w e r e a l l o w e d t o l a p s e . O f t e n , when a l i c e n s e wa s t r a n s f e r r e d , t h e new o w n e r w o u l d a p p l y f o r a new l i c e n s e , i n h i s o r h i s c o m p a n y ' s name, t o t h e same a r e a . The e x t e n t o f r e - i s s u i n g o f l i c e n s e s t o t h e same a r e a i s shown i n T a b l e s I I I a n d I V . T a b l e I I I s u m m a r i z e s a r e a s l i c e n s e d on t h e I s l a n d f o r p e r i o d s b e t w e e n 1887 a n d TABLE I I I AREAS LICENSED ON ISLAND BY KIND OP LICENSE (Areas i n Square M i l e s ) Gross area Re-: Lssue 21 50 99 21 50 99 Net Cumulative P e r i o d - yr. y r . y r . T o t a l y r . y r . y r . T o t a l area net area 1887-90 540 540 540 540 1891-95 348 130 478 478. 1018 1896-1900 1199 173 1372 72 130 202 1170 2188 1901-05 120 4201 1312 5633 320 605 925 4708 6896 1906-10 7679 4442 12,121 1402 3327 4729 7392 14,288 1911-15 1314 15,986 17,300 110 12,392 12,502 4798 19,086 1916-20 3600 3600 3284 3284 316 19 ,402 1921-25 5290 5290 5154 5154 136 19,538 1926-30 4093 4093 3693 3693 400 19,938 1931-35 109 294 403 58 286 344 59 19,997 1936-44 48 48 38 38 10 20,007 T o t a l s 2207 13,303 35,368 50,878 72 1890 28,909 30,871 20,007 20,007 SOURCE: Compiled by the w r i t e r from records i n the Crown Lands R e g i s t r y . TABLE I V ! AREAS LICENSED IN LABRADOR BY KIND OF LICENSE (Areas i n Square M i l e s ) Gross area Re-issue P e r i o d 20 y r . 21 y r . 50 y r . 99 y r . T o t a l 20 y r . 50 99 T o t a l Net issue Cumulative net i s s u e 1897-1900 500 197 697 20 20 677 677 1901-05 698 150 848 237 150 387 461 1,138 1906-10 7,584 6,475 14,059 188 512 700 13,359 14,497 1911-15 6,230 35,368 41,598 135 26,812 26,947 14,651 29,148 1916-20 6,794 6,794 6,634 6,634 160 29,308 1921-25 4,044 4,044 3,984 3,984 60 29,368 1926-30 1,550 1,550 1,550 1,550 -1931-35 - -1936-46 183 183 122 • 122 61 29,429 T o t a l s 183 500 14,512 54,578 69,773 122 560 39,662 40,344 29,429 29,429 SOURCE: Compiled by the w r i t e r from records i n the Crown Lands R e g i s t r y . 67 194-4• A s c a n b e s e e n , l i c e n s e s w e r e i s s u e d f o r a t o t a l g r o s s a r e a o f 5 0 , 8 7 8 s q u a r e m i l e s b u t t h e r e w a s much d u p l i c a t i o n ( r e - i s s u e ) a n d t h e a c t u a l n e t a r e a l i c e n s e d on t h e g r o u n d a m o u n t e d t o o n l y 20,007 s q u a r e m i l e s . S i m i l a r l y ( T a b l e I V ) i n L a b r a d o r l i c e n s e s w e r e i s s u e d f o r a g r o s s a r e a o f 69,773 s q u a r e m i l e s b u t 40,344 s q u a r e m i l e s o f t h i s wa s ' r e - i s s u e ' a n d t h e n e t a r e a l i c e n s e d w a s o n l y 29,429 s q u a r e m i l e s . A somewhat d i f f e r e n t summary o f n e t a r e a s l i c e n s e d f o r . t h e I s l a n d i s c o n t a i n e d i n F i g u r e 4 , w h i c h s h o w s t h e n u m b e r o f s q u a r e m i l e s l i c e n s e d a n n u a l l y , b y t y p e o f l i c e n s e . The t r a n s i t i o n f r o m t h e i n i t i a l u s e o f 2 1 - y e a r l i c e n s e s t o 5 0 - a n d 9 9 - y e a r l i c e n s e s i s r e a d i l y a p p a r e n t f r o m t h i s c h a r t . M o s t o f t h e a r e a o f t h e I s l a n d w a s l i c e n s e d i n a c o m p a r a t i v e l y s h o r t p e r i o d - b e t w e e n 1900 a n d 1915• A f t e r 1915 o n l y a s m a l l amoun t o f p r e v i o u s l y u n a l i e n a t e d a r e a w a s a v a i l a b l e f o r l i c e n s i n g . The t o t a l n e t a r e a l i c e n s e d on t h e I s l a n d b y 1944 w a s 20,007 s q u a r e m i l e s a n d b y 1915, l i c e n s e s h a d b e e n i s s u e d f o r 1 9 , 0 8 6 s q u a r e m i l e s o r 95 p e r c e n t o f t h e n e t a r e a l i c e n s e d . E v e n t s i n L a b r a d o r f o l l o w e d a p a t t e r n s i m i l a r t o t h a t on t h e I s l a n d . A s F i g u r e 5 s h o w s , t h e r e w a s a m o d e s t amoun t o f l i c e n s i n g a c t i v i t y u p t o 1909, w i t h a d r a m a t i c i n c r e a s e i n 1910 when a l m o s t 12,000 s q u a r e m i l e s w e r e l i c e n s e d . I n t h e t h r e e y e a r s 1910-1912 l i c e n s e s w e r e 68 Figure 4.— Net areas licensed — Island 4,000-1 YEARS SOURCE1 Data compiled by the writer from records at the Crown Lands Registry. 69 Figure 5.-Net areas licensed — Labrador 0 1 L U 12,000 I 1,000 "I 10,000 9,000*1 8,000 7,0001 UJ or < 8 soooH U J 5P00 rr < 4,000 3,000 2,000' 1,000-1 i n CO n _ o 0> o CM cn /~7 20-YEAR LICENSES yJIF 21-YEAR LICENSES 50-YEAR LICENSES 99-YEAR LICENSES O ro cn O YEARS SOURCE•• Data compiled by writer from records at the Crown Lands Registry. 70 i s s u e d f o r a n e t a r e a o f 2 5 , 7 5 7 s q u a r e m i l e s o r 88 p e r c e n t o f t h e t o t a l n e t a r e a l i c e n s e d . A s t h e c h a r t s h o w s , a f t e r 1919 p r a c t i c a l l y a l l l i c e n s i n g o f new a r e a s h a d c e a s e d . The T h r e e - M i l e L i m i t D u r i n g t h e p e r i o d o f g r e a t e s t l i c e n s i n g a c t i v i t y , f r o m 1901 t o 1 9 2 0 , a s t r i c t p o l i c y o f n o t i s s u i n g t i m b e r l i c e n s e s on t h e I s l a n d f o r a r e a s w i t h i n t h r e e m i l e s o f t h e c o a s t was f o l l o w e d . T h e r e w a s no s t a t u t o r y r e q u i r e m e n t f o r t h i s b u t e x p e r i e n c e h a d i n d i c a t e d t h a t i t wa s a p r u d e n t p r a c t i c e f o r G o v e r n m e n t t o f o l l o w . A s a l r e a d y m e n t i o n e d , i n 1904 i t w a s f o u n d n e c e s s a r y t o c a n c e l c u t t i n g r i g h t s t o a l l R e i d l a n d s w i t h i n t h r e e m i l e s o f t h e c o a s t b e c a u s e t h e wood wa s r e q u i r e d f o r t h e r u r a l f i s h i n g p o p u l a t i o n . The p o l i c y o f n o t i s s u i n g l i c e n s e s w i t h i n t h r e e m i l e s o f t h e c o a s t was m a i n t a i n e d u n t i l t h e 1 9 2 0 ' s , when a l l t h e i n t e r i o r f o r e s t l a n d s h a d b e e n a l l o c a t e d , a n d p r e s s u r e b e g a n t o b u i l d f o r l i c e n s e s t o be i s s u e d on p a r t s o f t h e t h r e e - m i l e l i m i t w i t h l o w p o p u l a t i o n d e n s i t y . I n 1924 a l i c e n s e f o r 29 s q u a r e m i l e s w a s i s s u e d t o a s e c t i o n o f t h e t h r e e - m i l e l i m i t a t O r a n g e B a y on t h e G r e a t N o r t h e r n P e n i n s u l a . A y e a r l a t e r a 1 6 . 5 s q u a r e - m i l e s e c t i o n o f c o a s t a l f o r e s t l a n d w a s l i c e n s e d a t t h e s o u t h e r n end o f W h i t e B a y . D u r i n g 1927 a n d 1928 l i c e n s e s w e r e i s s u e d f o r 65 s q u a r e m i l e s a t B a y o f I s l a n d s on t h e W e s t C o a s t a n d f o r 182 s q u a r e m i l e s on t h e B a i e V e r t e P e n i n s u l a . T h i s p r a c t i c e w o u l d h a v e c o n t i n u e d b u t f o r t h e s t r o n g p r o t e s t s 71 which were made to the Government at St. John Ts by small sawmill operators and others whose wood supplies were affected (Walsh, 1928). Although the licenses which had been issued were not cancelled, the practice was halted and a clause was included i n the Crown Lands Act of 1930 which expressly prohibited the issue of licenses anywhere i n the Colony within three miles of t i d a l water. The term Tthree mile l i m i t * i s somewhat of a mis-nomer because, as commonly used, i t often refers to pract-i c a l l y a l l nonalienated forest land on the Island of New-foundland, including areas that are considerably more than three miles from the coast. The forest resource contained within the 'three mile limit*' i s thus roughly equivalent to the 3.5 m i l l i o n acres of productive forest and 33 m i l l i o n cunits that are contained on nonalienated crown land on the Island (Chapter 2). Thus the coastal f o r e s t , or three-mile l i m i t , i s an important portion of the p r o v i n c i a l forest resource. The practice of reserving a three-mile coastal s t r i p from l i c e n s i n g was not followed i n Labrador and there appear to have been few, i f any, objections from the l o c a l residents. This i s probably due to the fact that the Labrador coast was sparsely s e t t l e d and communications were poor so that the people may have been unaware of the extent of l i c e n s i n g a c t i v i t y . Also, although a large number of licenses were issued, there was no development and therefore 72 no interference with the cutting operations of small sawmill operators and fishermen. Summary Although, by the early 1900's seemingly adequate l e g i s l a t i o n f o r the disposal of timber had been developed, the system of government administration operated to fru s t r a t e some key provisions of the Crown Lands Act. In addition to a general relaxation i n the l e g i s l a t i o n i t s e l f , the Government simply adopted a po l i c y of nonenforcement of certain performance clauses, p a r t i c u l a r l y those r e l a t i n g to the mandatory construction and operation of processing plants within specified periods. As a consequence, the o r i g i n a l intent of timber disposal l e g i s l a t i o n , to allo c a t e the resource to genuine developers, who would construct processing plants, was negated. Licenses which should have reverted to the Crown f o r nonfulfilment of terms and con-di t i o n s were held by licensees f o r purely speculative purposes. Some of the speculators held high Government o f f i c e (Noel, 1971). The bulk of the timber lands on the Island and i n Labrador were disposed of within a period of a few years. The dispersion of timber ownership i s summarized f o r the Island on Map 1, Appendix 7, which i s a reproduction of a 1914 Crown Lands map showing the location of Telegraph Company lands, the Reid lands, the Anglo-Newfoundland 73 Development Company Lease area and the timber licenses which had been issued up to that time. Map 2, Appendix 7, i s a reproduction of a map of Labrador showing licenses which were i n good standing i n 1923. For the Island the major alienations (26,101 square miles) of forest land that took place are summarized i n Table V. The t o t a l area of the Island including water has recently been estimated at approximately 43 ,029 square miles (Newfoundland, 1974). The alienations therefore account f o r 61 per cent of the area of the Island including water. During t h i s period only timber licenses were issued f o r Labrador. The t o t a l Tnet area* licensed i n Labrador up to 1938 was 29,429 square miles. The product-ive forest area of Labrador i s currently estimated to be 21,380 square miles (Newfoundland, 1975). That the licensed area exceeded the productive forest area by 8,049 square miles i s an i n d i c a t i o n of the amount of guess work that went into the establishment of license boundaries i n Labrador. At the time (with the exception of some w e l l -known accessible areas) no one knew with certainty the location of the good timber stands. Because of the large areas involved ground surveys must have been cursory at best. The r e s u l t was that many licensees obtained and paid annual rentals f o r large areas which contained l i t t l e , i f any, accessible merchantable timber. TABLE V. SUMMARY OF AL I ENAT IONS OF FOREST LAND ISLAND OF NEWFOUNDLAND ( A r e a s i n S q u a r e M i l e s ) T i m e P e r i o d ( Y r s . ) 1857-1889 1 3 9 6 - 1 9 2 1 1905 1887-1944 O w n e r s h i p New Y o r k , N e w f o u n d l a n d a n d L o n d o n T e l e g r a p h C o . R e i d N f l d . C o . L t d . a n d R . G . R e i d A n g l o - N f l d . D e v e l o p m e n t C o . L t d . V a r i o u s L i c e n s e e s Fo rm o f O w n e r s h i p F e e S i m p l e F e e S i m p l e 99 Y e a r R e n e w a b l e L e a s e 99 Y e a r N o n r e n e w a b l e L i c e n s e s A r e a 97 3 , 9 9 7 2 , 0 0 0 2 0 , 0 0 7 T o t a l s 2 6 , 1 0 1 SOURCE: C o m p i l e d b y t h e w r i t e r f r o m r e c o r d s a t t h e C rown L a n d s R e g i s t r y a n d t h e N e w f o u n d l a n d F o r e s t S e r v i c e , a n d K e n n e d y ( 1 9 5 5 ) . 75 During the period of most intense l i c e n s i n g a c t i v i t y (1901-1920) a s t r i c t p o l i c y was followed f o r the Island of not a l i e n a t i n g forest areas within three miles of the coast. Thus the "three-mile l i m i t " was established. The timber on t h i s area was regarded as the common property of the r u r a l f i s h i n g population. The people continued to exercise t h e i r h i s t o r i c r i g h t s to s a t i s f y t h e i r l o c a l wood requirements from the forests adjacent to the coast. During the 1920*s, t h i s p o l i c y began to break down and a number of licenses were issued within the three-mile l i m i t . But public protest brought an end to t h i s practice and statutory provisions were included i n the 1930 Crown Lands Act pr o h i b i t i n g the issue of licenses within three miles of t i d a l waters. 76 CHAPTER V ACQU I S I T ION BY THE PULP AND PAPER INDUSTRY OF T IMBER OWNERSHIP ON THE I S LAND E m e r g e n c e o f t h e P u l p a n d P a p e r I n d u s t r y R a i l w a y c o n s t r u c t i o n a n d a v a i l a b i l i t y o f C r o w n t i m b e r l i c e n s e s s t i m u l a t e d some e x p a n s i o n i n s a w m i l l i n g . N e w f o u n d l a n d s t a r t e d e x p o r t i n g l u m b e r i n 1 8 9 0 a n d b y 1904 a n n u a l s h i p m e n t s h a d r e a c h e d a p e a k o f 22 m i l l i o n b o a r d f e e t . The i n d u s t r y wa s c o n c e n t r a t e d i n t h e c e n t r a l p a r t o f t h e I s l a n d a n d was b a s e d on t h e l i q u i d a t i o n o f m a t u r e w h i t e p i n e . The d r a m a t i c e c o n o m i c d i v e r s i f i c a t i o n p r e d i c t e d b y a d v o c a t e s o f t h e r a i l w a y h a d n o t o c c u r r e d b y t h e end o f t h e c e n t u r y (Cramm, 1 9 6 1 ) . H o w e v e r , some p r o g r e s s h a d b e e n m a d e . B e t w e e n 1 8 8 1 - 8 5 a n d 1 9 0 1 - 0 5 , t h e a v e r a g e v a l u e o f f i s h e x p o r t s r o s e f r o m a b o u t $6.2 m i l l i o n t o $ 8 . 1 m i l l i o n b u t t h e f i s h e r y ' s s h a r e o f t o t a l e x p o r t s d e c r e a s e d f r o m 95 p e r c e n t t o SL p e r c e n t ( M a c K a y , 1 9 4 6 ) . The f o r e s t r y s h a r e o f t o t a l e x p o r t s w e n t f r o m a b o u t 0.2 p e r c e n t t o j u s t o v e r 2 . 1 p e r c e n t . M i n i n g i n c r e a s e d f r o m 3 - 9 p e r c e n t t o 13 p e r c e n t . T h u s t h e r e w a s some d i v e r s i f i c a t i o n b u t t h e f i s h e r y s t i l l c o n t i n u e d t o be b y f a r t h e m a i n f a c t o r i n t h e e c o n o m y . 77 I n t h e m e a n t i m e t h e r e w e r e s i g n s o f t r o u b l e i n t h e s a w m i l l i n d u s t r y . The p i n e s t a n d s w e r e o v e r m a t u r e a n d a h i g h p r o p o r t i o n o f t r e e s c o n t a i n e d d e f e c t . I t w a s a p p a r e n t t h a t t h e i n d u s t r y c o u l d n o t be s u s t a i n e d f o r l o n g on t h e q u a l i t y o f t i m b e r f o u n d i n N e w f o u n d l a n d . O f p a r t i c u l a r c o n c e r n i n 1903 wa s t h e f a c t t h a t t w o l a r g e s a w m i l l s i n C e n t r a l N e w f o u n d l a n d w e r e a b o u t t o c l o s e . T h e s e m i l l s w e r e owned a n d o p e r a t e d b y L e w i s M i l l e r , a S c o t t i s h l u m b e r m a n who h a d b e e n e n c o u r a g e d t o r e l o c a t e h i s o p e r a t i o n s f r o m Sweden t o N e w f o u n d l a n d i n 1900 b y S i r W i l l i a m R e i d , one o f t h e p r i n c i p a l s o f t h e R e i d N e w f o u n d l a n d Company ( K e n n e d y , 1 9 5 5 ) . A f t e r a y e a r o f o p e r a t i n g a t M i l l e r t o w n i t wa s f o u n d t h a t o n l y t h i r t y - f i v e t o f o r t y p e r c e n t o f t h e l o g s h a r v e s t e d c o u l d b e u t i l i z e d f o r l u m b e r a n d M i l l e r d e c i d e d t o q u i t . How t o s a v e t h e i n d u s t r y a t M i l l e r t o w n a n d G l e n w o o d a n d k e e p t h e m i l l s o p e r a t i n g w a s a m a t t e r o f g r a v e c o n c e r n t o S i r W i l l i a m R e i d . He h a d b e e n t o y i n g w i t h t h e i d e a o f f o r m i n g a new company w i t h t h e o b j e c t o f b u y i n g o u t t h e M i l l e r I n t e r e s t s . B y n o w , h e a n d C rowe h a d h a d a n u m b e r o f t a l k s t o g e t h e r a n d t h e e x u b e r a n c e a n d o p t i m i s m o f C r owe w a s i n f e c t i o u s . F u r t h e r m o r e , C r o w e ' s i d e a s c o i n c i d e d w i t h R e i d ' s own t o t h e e f f e c t t h a t i t wa s f o r p a p e r m a k i n g r a t h e r t h a n f o r s a w m i l l s t h a t N e w f o u n d l a n d wood wa s b e s t a d a p t e d ( K e n n e d y , 1 9 5 5 ) . H . J . C rowe w a s a p r o m o t e r who p l a y e d a p r o m i n e n t p a r t i n t h e e s t a b l i s h m e n t o f t h e p u l p a n d p a p e r i n d u s t r y i n N e w f o u n d l a n d ( K e n n e d y , 1 9 5 5 ) . C r owe a n d R e i d a n d o t h e r s f o r m e d a company - N e w f o u n d l a n d T i m b e r E s t a t e s - w h i c h e v e n t u a l l y g a i n e d c o n t r o l o f m o s t o f t h e m a i n s a w m i l l 78 operations i n Central Newfoundland, and the timber l i m i t s that went with them. The idea was to form a consolidated timber l i m i t which would be sold to the pulp and paper industry. These events i n Newfoundland coincided with certain developments i n the newspaper publishing industry i n England. On May 4 , I 8 9 6 A l f r e d Harmsworth and h i s brother, Harold, had started publishing the Daily M a i l which started a new trend i n the s t y l e of newspaper pub-l i s h i n g i n England (Pound and Harmsworth, 1959). The Daily M a i l was only one component of the Harmsworth pub-l i s h i n g empire at the turn of the century and the p r i n -c i p a l s were concerned about ensuring an adequate and r e l i a b l e supply of paper f o r t h e i r publications i n the event of a war i n Europe. I t i s not clear why Newfoundland was chosen by the Harmsworths f o r t h e i r newsprint operations. Mayson Beeton (an employee of the Harmsworths) investigated other areas i n Canada, Sweden and Norway as w e l l as Newfoundland (Beeton, 1903). Kennedy indicated that Crowe was negotiating with the Harmsworths about t h i s time (Kennedy, 1955). In any event, Beeton (probably through Crowe) acquired an option on areas held by Lewis M i l l e r and others i n the Red Indian Lake area and made a proposition to the Newfoundland Government i n 1905 i n which he indicated that the Harmsworths would be interested i n 79 establishing a newsprint m i l l i n Newfoundland under certain conditions including: 1) Fee simple grants f o r the developer of available Crown lands to secure ownership of an entire water-shed. The developer would agree to spend $10,000 on survey work within 3 years of execution of grants; $100,000 within ten years; and $1,000,000 within 20 years. 2) Government to grant water powers and control of lakes and r i v e r s f o r logging and m i l l i n g operations. 3) Construction materials and machinery to be admitted duty free. k) Fee simple grants to Crown land required f o r m i l l s i t e s , wharves, etc. f o r 30<£ per acre and arrange-ments f o r expropriation of private lands i f Crown lands not available (Beeton, 1903). In a Minute of Council dated March 28, 1903 the Government offered the following r e l a t i v e to timber areas: Af t e r c a r e f u l consideration of the above proposals i t was resolved: 1) That the Government w i l l issue to Messrs. Harmsworth, leases of such areas as are at the disposal of the Crown within the said boundaries above described, subject to the conditions of the Crown Lands Act, I Edward VII, Cap. 3, which requires the payment of an annual ground rent of Two Dollars per square mile, and a royalty at the rate of F i f t y cents per thousand feet, board measure, on a l l trees cut down and manufactured into products other than paper. Upon the trees cut down and u t i l i z e d f o r pulp paper, there s h a l l not be exacted any royalty, nor s h a l l a r e n t a l be exacted f o r barren lands within the said l i m i t s . The said lease s h a l l be f o r a period of 99 years and subject to a renewal of the option of Messrs. Harmsworth (Minute of Council, 1903). The section of the Crown Lands Act referred to i n the Minute of Council was not the section dealing with licenses f o r pulp m i l l s , but the section dealing with licenses f o r sawmills. The Crown Lands Act of 1899 so provided f o r an i n i t i a l charge of $5 .00 per square mile, plus $3 .00 per square mile thereafter f o r licenses f o r pulp m i l l s , and carried an area l i m i t a t i o n of 150 square miles. Thus, while the government was apparently not w i l l i n g to issue fee simple grants as requested by Beeton, i t did not i n s i s t on compliance with the Crown Lands Act as i t then applied to licenses f o r pulp m i l l s . This would have resulted i n fees having a present value (at 3 per cent) of $94.65 per square mile compared to fees a c t u a l l y charged which had a present value of $68.67 (see Appendix I ) . On June 15 , 1905 the Legislature passed "An Act to Encourage the Manufacture of Pulp and Paper i n t h i s Colony" which r a t i f i e d the agreement between the Govern-ment and the Anglo-Newfoundland Development Company (the company established by the Harmsworths) and authorized issue of the timber lease (Chapter IV). Construction started on the m i l l s i t e at Grand F a l l s on the Exp l o i t s River i n 1905 and the f i r s t paper was produced i n 1909 (Lawrence, 1 9 3 7 ) . O r i g i n a l capacity of the m i l l at Grand F a l l s was 30,000 tons of newsprint per year and 10 ,000 tons of groundwood pulp. I t was the f i r s t successful newsprint m i l l i n Newfoundland, a country where f a i l u r e rather than success was often the outcome of i n d u s t r i a l undertakings. For the next 70 years the establishment of a newsprint 81 m i l l like the one at Grand Falls would be regarded as the economic salvation for various regions of the country, and successive governments could count i t as a major accomplish-ment i f similar developments occurred while they were in power. The original leased area of 2,000 square miles was not adjacent to the m i l l site at Grand Falls. Practi-cally a l l of i t was located above Red Indian Lake which i s about 50 miles up the river from the m i l l site. In order to get the lease the Harmsworths f i r s t had to buy from Crowe the licenses he held to the area. These were then surrendered and the new lease was issued. In addition to the lease acquired from the Government the Anglo-Newfound-land Development Company also obtained leases to a number of Reid Lots with a total area of 305 square miles in the vi c i n i t y of Red Indian Lake. Nine square miles of freehold land were also acquired from Reid Newfoundland Company in 1 9 0 5 . This area of 2,314 square miles was the basic timber limit of the Grand Falls m i l l in 1905 (see Map 4 , Appendix 7)• Summary of Major Developments in the  Pulp and Paper Industry, 1897-1938 The m i l l at Grand Falls was only one of a series of attempts by developers and the Government to establish pulp or paper mills between 1897 to 1938. Six of these attempts resulted in mills being established and at least $2 f o u r mo re a p p e a r t o h a v e b e e n s e r i o u s a t t e m p t s t o e s t a b l i s h m i l l s , -wh ich f a i l e d f o r v a r i o u s r e a s o n s . O f t e n m a j o r e f f o r t s c o n s i d e r e d h e r e , o n l y t w o w e r e s u c c e s s f u l i n t h a t m i l l s w e r e e s t a b l i s h e d w h i c h g e n e r a t e d s u f f i c i e n t r e v e n u e s t o a l l o w l o n g r u n o p e r a t i o n a s v i a b l e i n d e p e n d e n t u n i t s . B o t h t h e s u c c e s s f u l a n d u n s u c c e s s f u l a t t e m p t s w e r e i m p o r t a n t f r o m t h e p o i n t o f v i e w o f f o r e s t l a n d t e n u r e b e c a u s e , i n o r d e r t o e n s u r e t h e v i a b i l i t y o f a n y p r o p o s e d p u l p o r p a p e r m i l l , t h e d e v e l o p e r h a d t o g a i n c o n t r o l o f s u f f i c i e n t t i m b e r l i c e n s e s r e a s o n a b l y c l o s e t o t h e m i l l s i t e t o e n s u r e a n a d e q u a t e wood s u p p l y . T h u s , g e n e r a l l y s p e a k i n g , e a c h new d e v e l o p m e n t e f f o r t r e s u l t e d i n t h e c o n -c e n t r a t i o n o f t i m b e r l i c e n s e s a n d R e i d l o t s i n t o t h e h a n d s o f f e w e r a n d f e w e r i n d i v i d u a l s o r c o m p a n i e s . The l o c a t i o n s o f t h e t e n l i m i t a r e a s a n d m i l l s i t e s a r e shown on Map 3 i n A p p e n d i x 7 . The G o v e r n m e n t , o f c o u r s e , e n t e r t a i n e d a n u m b e r o f p r o p o s a l s f o r p u l p a n d p a p e r d e v e l o p m e n t s i n a d d i t i o n t o t h o s e l i s t e d h e r e , b u t t h e s e a p p e a r t o b e t h e m o s t i m p o r t a n t f r o m t h e p o i n t o f v i e w o f c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p . Some f a c t s on t h e s e 10 d e v e l o p m e n t e f f o r t s a r e s u m m a r i z e d i n T a b l e V I . A b r i e f d e s c r i p t i o n o f e a c h d e v e l o p m e n t f o l l o w s . B l a c k R i v e r A s m a l l p u l p m i l l w a s e s t a b l i s h e d b y T h e N e w -f o u n d l a n d Wood P u l p Company ( a s u b s i d i a r y o f a l o c a l f i r m , TABLE V I MAJOR DEVELOPMENTS IN THE PULP AND PAPER INDUSTRY, 1897-1937 Company o r Y e a r ( s ) P r o m o t e r M i l l L o c a t i o n M i l l s C o n s t r u c t e d : 1897 1909 1912 1913 1921 1925 N f l d . Wood P u l p C o . A n g l o - N f l d . D e v . C o . B l a c k R i v e r G r a n d F a l l s A . E . R e e d a n d B i s h o p s C o . ( N f l d . ) L t d . F a l l s H o r w o o d L u m b e r C o . T e r r a N o v a S u l p h i t e C o . N f l d . P o w e r a n d P a p e r C o . C a m p b e l l t o n G l o v e r t o w n C o r n e r B r o o k E n d P r o d u c t s G r oundwood P u l p N e w s p r i n t , G r o u n d w o o d P u l p G r o u n d w o o d P u l p G r o u n d w o o d P u l p S u l p h i t e P u l p N e w s p r i n t I n i t i a l C a p a c i t y G r o s s A r e a o f M i l l o r P l a n n e d T i m b e r C a p a c i t y L i m i t s ( Ton s p e r Y e a r ) ( S q . M i . ) 6 , 0 0 0 3 0 , 0 0 0 1 0 , 0 0 0 3 9 , 0 0 0 4 , 5 0 0 1 6 , 0 0 0 1 2 0 , 0 0 0 130 2 , 3 1 4 1 ,975 6 2 . 5 1 ,172 2 , 6 4 1 TABLE V I - C o n t i n u e d Company o r Y e a r ( s ) P r o m o t e r M i l l L o c a t i o n I n i t i a l C a p a c i t y G r o s s A r e a o f M i l l o r P l a n n e d T i m b e r End C a p a c i t y L i m i t s P r o d u c t s ( Ton s p e r Y e a r ) ( S q . M i . ) M i l l s P l a n n e d b u t n o t C o n s t r u c t e d : 1916 1917-27 1923-27 1923-37 S t . L a w r e n c e T i m b e r P u l p a n d S t e a m s h i p C o . H . J . C r o w e H . J . C r o w e G a n d e r V a l l e y P o w e r a n d P a p e r C o . Bonne B a y R o t i B a y S o p s A rm S u l p h i t e P u l p N e w s p r i n t S u l p h i t e P u l p I n d i a n B a y N e w s p r i n t 1 0 , 0 0 0 6 0 , 0 0 0 3 0 , 0 0 0 3 0 0 , 0 0 0 243 3 , 1 2 5 942 3 , 1 5 2 SOURCE: C o m p i l e d b y w r i t e r f r o m r e c o r d s a t t h e C rown L a n d s R e g i s t r y a n d t h e N e w f o u n d l a n d A r c h i v e s . 85 H a r v e y a n d Company ) a t B l a c k R i v e r i n P l a c e n t i a B a y i n 1 8 9 7 - 8 ( K e n n e d y , 1 9 5 5 ) . T h e m i l l h a d a c a p a c i t y o f 20 t o n s p e r d a y a n d o p e r a t e d e x c l u s i v e l y on b l a c k s p r u c e . T h e o r i g i n a l t i m b e r l i c e n s e f o r t h e m i l l w a s i s s u e d i n 1892 f o r 99 y e a r s f o r 130 s q u a r e m i l e s . R e p l a c e m e n t l i c e n s e s f o r t h e same a r e a w e r e i s s u e d i n I 8 9 6 u n d e r somewhat d i f f e r e n t t e r m s a n d c o n d i t i o n s . The m i l l c l o s e d i n 1903 b e c a u s e o f i n a d e q u a t e w a t e r s u p p l y . The m a j o r c o n t r i b u t i o n o f t h i s m i l l t o t h e f u r t h e r d e v e l o p m e n t o f t h e i n d u s t r y i n N e w f o u n d l a n d wa s t h a t i t d e m o n s t r a t e d t h a t h i g h q u a l i t y p u l p c o u l d be p r o d u c e d f r o m N e w f o u n d l a n d f o r e s t s ( K e n n e d y , 1 9 5 5 ) . B i s h o p s F a l l s C o n s t r u c t i o n h a d h a r d l y b e g u n on t h e m i l l a t G r a n d F a l l s when a n o t h e r d e v e l o p m e n t was s t a r t e d a b o u t 10 m i l e s d o w n s t r e a m a t a s e c o n d p o w e r s o u r c e , B i s h o p s F a l l s . I n 1 9 0 7 , t h e A l b e r t E . R e e d a n d Company L i m i t e d ^ o f L o n d o n f o r m e d a N e w f o u n d l a n d s u b s i d i a r y , t h e A l b e r t E . R e e d a n d Company ( N e w f o u n d l a n d ) L i m i t e d , w i t h t h e o b j e c t i v e o f e r e c t i n g a p u l p m i l l a t B i s h o p s F a l l s ( K e n n e d y , 1 9 5 5 ) . A m i l l w i t h a c a p a c i t y o f 130 t o n s a d a y w a s c o m p l e t e d i n 1 9 1 2 , a n d t h e company o p e r a t e d a s a n i n d e p e n d e n t u n i t u n t i l 1928 w h e n i t w a s t a k e n o v e r b y t h e A n g l o - N e w f o u n d l a n d &kt t h e t i m e t h i s company o p e r a t e d e i g h t p a p e r m i l l s i n t h e s o u t h o f E n g l a n d ( A r m u l e e , 1 9 3 3 ) . T h i s company s h o u l d n o t be c o n f u s e d w i t h t h e R e i d i n t e r e s t s w h i c h o b t a i n e d t h e f r e e h o l d R e i d L o t s a s p a r t p a y m e n t f o r o p e r a t i o n o f t h e r a i l w a y . 86 D e v e l o p m e n t Company a t G r a n d F a l l s ( K e n n e d y , 1955)• The m i l l a t B i s h o p s F a l l s , a t l e a s t i n i t i a l l y , was n o t a p r o f i t a b l e o p e r a t i o n , p r o b a b l y b e c a u s e o f h i g h c o n s t r u c t i o n c o s t s a n d l e g a l d i f f i c u l t i e s a s s o c i a t e d w i t h t h e p o w e r dam ( R e e d , 1 9 1 6 ) . The t i m b e r l i m i t s f o r t h e B i s h o p s F a l l s m i l l w e r e o b t a i n e d f r o m two c o m p a n i e s c o n t r o l l e d b y H . J . C r o w e . I n 1907, 1,369 s q u a r e m i l e s w e r e a c q u i r e d f r o m t h e N e w -f o u n d l a n d P i n e a n d P u l p Company a n d 606 s q u a r e m i l e s w e r e a c q u i r e d f r o m C e n t r a l F o r e s t s Company L i m i t e d , f o r a t o t a l l i m i t a r e a o f 1,975 s q u a r e m i l e s , l o c a t e d m a i n l y i n t h e c e n t r a l a n d l o w e r E x p l o i t s V a l l e y c e n t e r e d a r o u n d B i s h o p s F a l l s . I n 1916 t h e company wa s c o n s i d e r i n g t h e a d d i t i o n o f a p a p e r m i l l a t B i s h o p s F a l l s t o t r y t o a c h i e v e a p r o f i t p o s i t i o n t h r o u g h e c o n o m i e s o f s c a l e w i t h a l a r g e r o p e r a t i o n ( R e e d , 1916). H o w e v e r t h i s p l a n was a b a n d o n e d a n d i n s t e a d , 1,282 s q u a r e m i l e s o f t i m b e r l i m i t s w e r e t r a n s f e r r e d t o t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company a t G r a n d F a l l s . The A l b e r t E . R e e d Company r e t a i n e d t h e r e m a i n i n g a r e a t o s u p p l y t h e p u l p m i l l a t B i s h o p s F a l l s u n t i l t h i s t o o w a s a c q u i r e d b y t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company i n 1929-The A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company c l a i m e d t h a t t h e m i l l a t B i s h o p s F a l l s wa s n o t p r o f i t a b l e 87 i n i t s e l f b u t c o u l d be o p e r a t e d a s a n a d j u n c t t o t h e G r a n d F a l l s m i l l ( R o t h e r m e r e , 1924). I t wa s o p e r a t e d a s a s o u r c e o f p u l p s u p p l y f o r t h e G r a n d F a l l s m i l l u n t i l 1952. The 1,369 s q u a r e - m i l e a r e a w h i c h t h e A l b e r t E . R e e d Company a c q u i r e d f r o m t h e N e w f o u n d l a n d . P i n e a n d P u l p Company r e p r e s e n t e d a c o n s o l i d a t i o n o f 12 s e p a r a t e l i c e n s e s w h i c h h a d b e e n p r e v i o u s l y i s s u e d ( R e g i s t r y o f D e e d s , 1919). The 606 s q u a r e - m i l e a r e a h e l d i n t h e name o f C e n t r a l F o r e s t s r e p r e s e n t e d a c o n s o l i d a t i o n o f 7 l i c e n s e s ( T i t f o r d a n d M c G r a t h , 1951). C a m p b e l l t o n D u r i n g 1913-14 a s m a l l p u l p m i l l wa s e r e c t e d a t C a m p b e l l t o n , N o t r e Dame Bay, b y t h e H o r w o o d L u m b e r Company , a N e w f o u n d l a n d c o n c e r n w h i c h a l s o o p e r a t e d s a w m i l l s i n t h e same g e n e r a l a r e a ( H o r w o o d L u m b e r Company , 1927). The m i l l o p e r a t e d f o r a b o u t t w o y e a r s b u t r e p e a t e d f a i l u r e o f t h e p o w e r dam f o r c e d t h e company t o c l o s e t h e o p e r a t i o n i n 1916. The c a p a c i t y o f t h e m i l l wa s 4,500 t o n s p e r y e a r a n d t h e a n n u a l wood r e q u i r e m e n t wa s e s t i m a t e d a t 1.06 c u n i t s p e r t o n o f p u l p o r 4,781 c u n i t s p e r y e a r (Ho rwood P u l p Company , 1911). The company o b t a i n e d a 99 - y e a r t i m b e r l i c e n s e f o r 155 s q u a r e m i l e s i n 1912 i n t h e C a m p b e l l t o n - Dog B a y a r e a f o r t h e o p e r a t i o n o f t h e m i l l s ( R e g i s t r y o f T i m b e r L i c e n s e s , 1912). (A l i c e n s e t o an a d d i t i o n a l 38 s q u a r e m i l e s wa s b e l a t e d l y i s s u e d i n 1 9 4 4 . ) A f t e r t h e p u l p m i l l c l o s e d i n 191°, t h e company c o n t i n u e d t o w o r k i t s l i c e n s e 88 t o s u p p l y i t s s a w m i l l a t Dog B a y u n t i l 1954 when a l l i t s l o g g i n g o p e r a t i o n s i n t h e a r e a w e r e c l o s e d ( K e n n e d y , 1 9 5 5 ) . T h i r t y - t w o s q u a r e m i l e s o f t h e c o m p a n y ' s l i c e n s e d a r e a w e r e a c q u i r e d b y t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t > Company a n d t h e r e m a i n d e r r e v e r t e d t o t h e C r o w n . G l o v e r t o w n I n 1920 c o n s t r u c t i o n w a s s t a r t e d on a s u l p h i t e p u l p m i l l a t G l o v e r t o w n a t t h e m o u t h o f t h e T e r r a N o v a R i v e r i n B o n a v i s t a B a y ( S t o r m , 1 9 2 1 ) . N o r w e g i a n d e v e l o p e r s h a d f o r m e d t h e T e r r a N o v a S u l p h i t e Company t o b u i l d a n d o p e r a t e t h e m i l l w h i c h h a d a p l a n n e d c a p a c i t y o f 1 6 , 0 0 0 t o n s p e r y e a r . The p l a n t w a s o v e r 50 p e r c e n t c o m p l e t e d when t h e v a l u e o f t h e N o r w e g i a n K r o n e r f e l l d r a s t i c a l l y r e l a t i v e t o t h e C a n a d i a n d o l l a r a n d c o m p l e t e l y d i s r u p t e d t h e p l a n n e d f i n a n c i n g o f t h e p r o j e c t ( S t o r m , 1 9 2 1 ) . T he company t r i e d t o g e t t h e N e w f o u n d l a n d G o v e r n m e n t t o g u a r a n t e e t h e i n t e r e s t on a b o n d i s s u e o f one m i l l i o n d o l l a r s t o be r a i s e d i n N o r t h A m e r i c a t o f i n a n c e c o m -p l e t i o n o f t h e p l a n t ( B l a k s t a d , 1 9 2 1 ) , b u t t h i s w a s r e f u s e d ( S q u i r e s , 1922) a n d t h e p r o j e c t h a d t o be a b a n -d o n e d . The a s s e t s o f t h e company, i n c l u d i n g t h e m i l l e q u i p m e n t a n d a b o u t 1 , 172 s q u a r e m i l e s o f t i m b e r l i m i t s , w e r e t a k e n o v e r b y t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company i n 1923 ( R e g i s t r y o f D e e d s , 1 9 2 3 ) . 89 I n a l e t t e r t o t h e g o v e r n m e n t e x p l a i n i n g t h e t a k e o v e r o f t h e s e a s s e t s , R o t h e r m e r e (1924) s t a t e d t h a t t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company d e c i d e d a g a i n s t c o m p l e t i n g t h e p u l p m i l l a t G l o v e r t o w n b e c a u s e t h e m i l l w a s t o o s m a l l t o be p r o f i t a b l e a n d t h e t i m b e r l i m i t s w e r e i n a d e q u a t e t o s u p p l y a l a r g e r m i l l . The company t h e r e f o r e d e c i d e d t o u s e t h e T e r r a N o v a l i m i t s t o s u p p o r t a n e x p a n -s i o n o f t h e G r a n d F a l l s m i l l . The t i m b e r l i m i t s o f t h e T e r r a N o v a S u l p h i t e Company w e r e f o r m e d b y a c q u i s i t i o n o f a n a r e a o f 906 s q u a r e m i l e s i n t h e w a t e r s h e d o f t h e T e r r a N o v a R i v e r f o r m e r l y c o v e r e d b y 9 s e p a r a t e l i c e n s e s . A s i n g l e 99 - y e a r l i c e n s e f o r 906 s q u a r e m i l e s w a s i s s u e d i n 1921 ( R e g i s t r y o f T i m b e r L i c e n s e s , 1921). The b a l a n c e o f t h e l i m i t a r e a was made u p o f l e a s e d c u t t i n g r i g h t s t o a n u m b e r o f R e i d l o t s ( S t o r m , 1921). C o r n e r B r o o k The R e i d s w e r e i n t e r e s t e d i n d e v e l o p i n g t h e i r l a n d h o l d i n g s on t h e W e s t C o a s t . I n 1915 t h e y f o r m e d t h e N e w f o u n d l a n d P r o d u c t s C o r p o r a t i o n L i m i t e d a n d o b t a i n e d f r o m t h e G o v e r n m e n t a l e a s e t o t h e w a t e r p o w e r s o f t h e Humber R i v e r a n d i t s t r i b u t a r i e s ( N e w f o u n d l a n d , 1915). The o r i g i n a l i n t e n t i o n o f t h e company was t o u t i l i z e t h e w a t e r p o w e r t o m a n u f a c t u r e ammon ia p h o s p h a t e f o r f e r t i l i z e r , a m m o n i a , c e m e n t , w o o d p u l p a n d l u m b e r . T h i s p u r p o s e w a s n o t 90 achieved but by 1921 the Reids had succeeded i n i n t e r e s t i n g the S i r W.G. Armstrong Whitworth and Company Limited of England i n a scheme to develop water power and construct a newsprint m i l l on the Humber River (Reid, 1921). By 1923 the name of the company was changed to Newfoundland Power and Paper Company Limited and voting control had been acquired by the Whitworth i n t e r e s t s , with Reids retaining a large share i n any p r o f i t s (Reid, 1923). The project was financed by the issue of two series of debenture stock with a value of £2 m i l l i o n each. The Governments of the United Kingdom and Newfoundland each guaranteed the p r i n c i p a l and int e r e s t on one series of stock (Amulree, 1933). A power plant was erected at Deer Lake and the newsprint m i l l with a capacity of 4-00 tons per day was operating at Corner Brook by 1925 (Reid Papers, 1926). Construction cost f o r the m i l l and power plant was o r i g i n a l l y estimated at $20 m i l l i o n but the actual cost was $4-5 m i l l i o n and the m i l l operations were handicapped by heavy overhead charges, poor market conditions and lack of an e f f e c t i v e marketing organization (Amulree, 1933). In 1928 the property was acquired by the International Paper Company of New York and a new company, the Inter-national Power and Paper Company of Newfoundland, was formed to continue operations. Ownership of the Corner Brook m i l l was retained by the International Paper Company u n t i l 1938, when i t was acquired by the Bowater i n t e r e s t s of England. 91 The new company f o r m e d t o o p e r a t e t h e m i l l w a s t h e B o w a t e r T s N e w f o u n d l a n d P u l p a n d P a p e r M i l l s L i m i t e d ( N e w f o u n d l a n d , 1 9 3 8 ) . T h e B o w a t e r i n t e r e s t s a r e t h e p r e s e n t o p e r a t o r s o f t h e C o r n e r B r o o k m i l l b u t t h e name o f t h e company h a s b e e n s h o r t e n e d t o B o w a t e r N e w f o u n d l a n d L i m i t e d . The i n i t i a l t i m b e r l i m i t a r e a f o r t h e C o r n e r B r o o k m i l l i n 1925 w a s 2 , 6 4 1 s q u a r e m i l e s . T h i s i n c l u d e d . 60 R e i d l o t s w i t h a n a r e a o f 1 , 7 5 0 s q u a r e m i l e s , 10 t i m b e r l i c e n s e s a c q u i r e d f r o m v a r i o u s c o m p a n i e s a n d i n d i v i d u a l s w i t h a n a g g r e g a t e a r e a o f 885 s q u a r e m i l e s a n d 6 s q u a r e m i l e s o f f r e e h o l d l a n d . The C o r n e r B r o o k m i l l w a s t h e l a s t n e w s p r i n t o r p u l p m i l l t o b e b u i l t i n N e w f o u n d l a n d i n t h e p e r i o d u n d e r c o n s i d e r a t i o n . A n u m b e r o f o t h e r s e r i o u s a t t e m p t s w e r e made t o e r e c t m i l l s o n t h e I s l a n d a n d t h e m o r e i m p o r t a n t o f t h e s e a r e o u t l i n e d b e l o w . A s w i l l b e s h o w n , a l l o f t h e s e a t t e m p t s e v e n t u a l l y c o n t r i b u t e d t o t h e g r o w t h o f t h e C o r n e r B r o o k o p e r a t i o n . Bonne B a y I n 1916 t h e G o v e r n m e n t wa s a p p r o a c h e d b y t h e S t . L a w r e n c e T i m b e r , P u l p a n d S t e a m s h i p Company f o r c e r t a i n c o n c e s s i o n s f o r t h e e s t a b l i s h m e n t o f a s a w m i l l a n d a s u l p h i t e p u l p m i l l a t Bonne B a y on t h e W e s t C o a s t ( W h a l l e y , 1 9 1 6 ) . A s a w m i l l w a s e s t a b l i s h e d b u t t h e p u l p m i l l w a s n e v e r b u i l t b e c a u s e o f a d v e r s e e c o n o m i c c o n d i t i o n s i n G r e a t B r i t a i n d u r i n g a n d a f t e r t h e w a r ( W h a l l e y , 1 9 2 1 ) . 92 The l i m i t s a c q u i r e d b y t h e Company a m o u n t e d t o 243 s q u a r e m i l e s . O f t h i s , 190 s q u a r e m i l e s r e p r e s e n t e d a c o n s o l i d a t i o n o f 3 t i m b e r l i c e n s e s a n d 53 s q u a r e m i l e s r e p r e s e n t e d c u t t i n g r i g h t s , a c q u i r e d f r o m t h e R e i d N e w -f o u n d l a n d Company , t o R e i d L o t 207 ( B l a n d f o r d , 1 9 1 6 ) . The a r e a u n d e r t i m b e r l i c e n s e was d i s p o s e d o f i n 1927 t o t h e o p e r a t o r s o f t h e C o r n e r B r o o k m i l l . C u t t i n g r i g h t s t o t h e R e i d L o t 207 w e r e a l s o a c q u i r e d f o r t h e C o r n e r B r o o k m i l l i n 1 9 4 2 . R o t i B a y H . J . C rowe h a d b e e n s u c c e s s f u l l y i n v o l v e d i n p r o m o t i n g b o t h t h e G r a n d F a l l s a n d B i s h o p s F a l l s d e v e l o p -m e n t s . I n 1917 he w a s t r y i n g t o p r o m o t e y e t a n o t h e r p u l p a n d p a p e r m i l l . T h i s p r o j e c t , w i t h a c a p a c i t y o f 200 t o n s p e r d a y , wa s t o be l o c a t e d a t R o t i B a y , i n B a y d ' E s p o i r on t h e S o u t h C o a s t o f t h e I s l a n d ( C r o w e , 1 9 1 7 ) . The p l a n was t o d e v e l o p a v a i l a b l e w a t e r p o w e r i n t h e v i c i n i t y o f R o t i B a y a n d s u p p l y t h e m i l l w i t h p u l p w o o d f r o m a 3 , 1 2 5 s q u a r e m i l e l i m i t C r owe h a d c o n s o l i d a t e d f r o m 10 t i m b e r l i c e n s e s on t h e S o u t h C o a s t . C r o w e ' s e f f o r t s t o p r o m o t e t h i s p r o j e c t r e c e i v e d a s e r i o u s s e t b a c k when a c r u i s e o f t h e a r e a b y t h e I n t e r n a t i o n a l P a p e r Company ( w h i c h was a p p a r e n t l y i n t e r e s t e d i n t h e p r o j e c t ) r e v e a l e d t h a t t h e l i m i t a r e a c o n t a i n e d o n l y 5 5 2 , 5 0 0 c u n i t s o f a v a i l a b l e p u l p w o o d ( G r a u s t e i n , 1 9 2 7 ) . C r owe d i e d i n 1 9 2 8 . P a r t o f 93 t h e t i m b e r l i m i t wa s a c q u i r e d i n t h e same y e a r a s a wood s u p p l y a r e a f o r t h e C o r n e r B r o o k m i l l . W h i t e B a y A t t h e same t i m e t h a t he was t r y i n g t o p r o m o t e t h e d e v e l o p m e n t o f h i s S o u t h C o a s t p r o p e r t i e s , C r o w e w a s a l s o i n v o l v e d i n t h e p r o m o t i o n o f a s u l p h i t e p u l p m i l l a t S o p s A rm i n W h i t e B a y ( C r o w e , 1925). He h a d a c q u i r e d t h r e e t i m b e r l i c e n s e s i n t h e v i c i n i t y o f W h i t e B a y w i t h a n a g g r e g a t e a r e a o f 742 s q u a r e m i l e s a n d a n a d d i t i o n a l 200 s q u a r e - m i l e a r e a i n l a n d f r o m H a l l s B a y i n N o t r e Dame B a y ( C r o w e , 1926). The m i l l w a s n e v e r e s t a b l i s h e d a n d t h e W h i t e B a y l i m i t s w e r e a c q u i r e d f o r t h e C o r n e r B r o o k m i l l i n 1929 a n d 1930. The G a n d e r D e a l W h i l e c o n s t r u c t i o n on t h e C o r n e r B r o o k m i l l was s t i l l i n p r o g r e s s t h e R e i d N e w f o u n d l a n d Company was a l s o t r y i n g t o p r o m o t e a n e w s p r i n t m i l l on t h e G a n d e r R i v e r ( R e i d P a p e r s , 1924). The company f o r m e d f o r t h i s p u r p o s e w a s t h e G a n d e r V a l l e y P o w e r a n d P a p e r Company L i m i t e d . The o r i g i n a l p l a n was t o e r e c t a p a p e r m i l l w i t h a c a p a c i t y o f 200 t o n s p e r d a y a t t h e m o u t h o f t h e G a n d e r R i v e r a n d t o s u p p l y p o w e r t o t h e p l a n t b y t h e e r e c t i o n o f a dam n e a r G l e n w o o d a t t h e o u t l e t o f G a n d e r L a k e . I n 1924 t h e G o v e r n m e n t p a s s e d a n A c t w h i c h , among o t h e r t h i n g s , c o n -f e r r e d w a t e r p o w e r r i g h t s on t h e G a n d e r R i v e r t o t h e 94 Company ( N e w f o u n d l a n d , 1924). T he d e v e l o p m e n t p r o p o s a l w a s c h a n g e d f r o m t i m e t o t i m e a n d b y 1930 t h e Company h a d c h a n g e d t h e p r o p o s e d m i l l s i t e t o I n d i a n B a y on t h e B o n a v i s t a N o r t h P e n i n s u l a a n d t h e p l a n n e d c a p a c i t y o f t h e m i l l h a d i n c r e a s e d t o 1,000 t o n s a d a y ( C o n r o y , 1930). A t t h i s t i m e t h e H e a r s t p u b l i s h i n g o r g a n i z a t i o n i n t h e U n i t e d S t a t e s wa s i n v o l v e d i n t h e f i n a n c i n g a n d h a d t e n t a t i v e l y a g r e e d t o t a k e t h e f u l l o u t p u t o f t h e m i l l . T h i s d e a l wa s n o t s u c c e s s f u l h o w e v e r a n d i n 1937 t h e R e i d s w e r e n e g o t i -a t i n g w i t h t h e B o w a t e r - L l o y d i n t e r e s t s i n E n g l a n d ( M a c K a y , 1946). The e v e n t u a l r e s u l t o f t h e s e n e g o t i a t i o n s w a s n o t t h e e s t a b l i s h m e n t o f a m i l l a t I n d i a n B a y b u t t h e a c q u i -s i t i o n b y t h e B o w a t e r ? i n t e r e s t s o f t h e p a p e r m i l l a t C o r n e r B r o o k i n 1938, i n w h a t became known a s t h e G a n d e r D e a l . O t h e r a s p e c t s o f t h i s d e a l a r e d i s c u s s e d i n l a t e r s e c t i o n s i n t h i s C h a p t e r . The R e i d N e w f o u n d l a n d Company , m a i n l y t h r o u g h i t s s u b s i d i a r y M i n e s a n d F o r e s t s L i m i t e d , h a d p u t t o g e t h e r a n i m p r e s s i v e t i m b e r l i m i t ( b y b u y i n g up t i m b e r l i c e n s e s ) t o s u p p l y t h e p r o p o s e d m i l l , w h i c h i n c l u d e d m o s t o f t h e t i m b e r i n t h e G a n d e r V a l l e y a n d e x t e n s i v e a r e a s on t h e B a i e V e r t e a n d N o r t h e r n P e n i n s u l a s a s w e l l . W i t h t h e f a i l u r e o f t h i s d e a l , t h e s e a r e a s became p a r t o f t h e wood ^ W h i l e t h e o r i g i n a l n e g o t i a t i o n s w e r e w i t h t h e B o w a t e r - L l o y d i n t e r e s t s t h e B o w a t e r i n t e r e s t s a l o n e c o n -c l u d e d t h e f i n a l a g r e e m e n t w i t h t h e G o v e r n m e n t a n d t h e R e i d N e w f o u n d l a n d Company . 95 s u p p l y a r e a f o r t h e C o r n e r B r o o k m i l l . I n c l u d e d w e r e 24 t i m b e r l i c e n s e s w i t h a t o t a l a r e a o f 2 , 7 1 0 s q u a r e m i l e s , p l u s 29 R e i d l o t s w i t h a n a r e a o f 442 s q u a r e m i l e s . The a r e a a s s e m b l e d b y t h e R e i d s c o n s t i t u t e d t h e l a s t m a j o r b l o c k o f t i m b e r i n t h e i n t e r i o r o f t h e I s l a n d t h a t w a s n o t a l r e a d y c o m m i t t e d t o t h e p u l p a n d p a p e r i n d u s t r y . The f a i l u r e b y t h e R e i d s t o p r o m o t e t h e e r e c t i o n o f a p a p e r m i l l t o u t i l i z e t h e s e l i m i t s m e a n t t h a t t h e t w o o p e r a t i n g c o m p a n i e s a t G r a n d F a l l s a n d C o r n e r B r o o k w o u l d c o n t r o l t h e i n t e r i o r f o r e s t r e s o u r c e s o f t h e I s l a n d f o r t h e f o r e s e e a b l e f u t u r e . The p r o g r e s s o f t h e o w n e r s o f t h e s e m i l l s i n c o n s o l i d a t i n g t h e i r l i m i t a r e a s i s o u t l i n e d i n more d e t a i l i n t h e f o l l o w i n g s e c t i o n . F i n a l C o n c e n t r a t i o n o f T i m b e r O w n e r s h i p A s a l r e a d y i n t i m a t e d , w h i l e m o s t d e v e l o p m e n t a t t e m p t s f a i l e d t o e s t a b l i s h v i a b l e p u l p o r n e w s p r i n t m i l l s , t h e m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k w e r e o u t s t a n d i n g e x c e p t i o n s . I n t h e l o n g r u n b o t h t h e s e o p e r a t i o n s p r o s p e r e d a n d e x p a n d e d u n t i l b y t h e e a r l y 1 9 6 0 T s , t h e y c o n t r o l l e d p r a c t i c a l l y a l l t h e t i m b e r l i c e n s e s t h a t h a d b e e n i s s u e d a n d c u t t i n g r i g h t s t o m o s t o f t h e R e i d l o t s i n t h e C e n t r a l a n d W e s t e r n p a r t s o f t h e I s l a n d . The e x p a n s i o n i n t h e l i m i t a r e a s c o n t r o l l e d b y e a c h company i s o u t l i n e d b r i e f l y b e l o w . 96 G r a n d F a l l s The l i m i t a r e a o f t h e A n g l o - N e w f o u n d l a n d D e v e l o p -m e n t Company i n 1905 w a s 2,314 s q u a r e m i l e s . I n 1907 s e v e r a l a d d i t i o n a l f r e e h o l d a n d l e a s e h o l d l o t s w e r e a c q u i r e d s o t h a t when t h e m i l l s t a r t e d o p e r a t i n g i n 1909, i t s l i m i t a r e a h a d i n c r e a s e d s l i g h t l y t o 2,327 s q u a r e m i l e s . I n 1914 t h e f i r s t m a j o r a d d i t i o n t o t h e b a s i c l i m i t a r e a w a s made when a 250 s q u a r e - m i l e t i m b e r l i c e n s e w a s a c q u i r e d f r o m t h e N e w f o u n d l a n d P i n e a n d P u l p Company . A s c a n b e s e e n f r o m Map 4 i n A p p e n d i x 7, i n i t i a l l y t h e company d i d n o t c o n t r o l a n y c u t t i n g r i g h t s i n t h e v i c i n i t y o f i t s G r a n d F a l l s m i l l . A l l t h e t i m b e r l i c e n s e s i n t h i s a r e a h a d b e e n a c q u i r e d b y t h e A l b e r t E . R e e d a n d Company ( N e w f o u n d l a n d ) L i m i t e d f o r i t s p u l p m i l l a t B i s h o p s F a l l s . B u t f r o m t h e b e g i n n i n g t h e H a r m s w o r t h s h a d p l a n s f o r e x p a n d i n g t h e G r a n d F a l l s m i l l a n d i n 1912 t w o new m a c h i n e s w e r e a d d e d w h i c h d o u b l e d t h e a n n u a l c a p a c i t y t o 60,000 t o n s ( L a w r e n c e , 1 9 3 7 ) . F u r t h e r , s i n c e i t s m a i n wood s u p p l y a r e a w a s o v e r 50 m i l e s f r o m t h e m i l l s i t e , i t wa s o b v i o u s l y i n t h e i n t e r e s t o f t h e company t o a c q u i r e a d d i t i o n a l l i m i t s c l o s e r t o t h e m i l l . S e v e r a l y e a r s p r i o r t o 1 9 l 6 t h e company e n t e r e d i n t o a t e n t a t i v e a g r e e m e n t w i t h t h e A l b e r t E . R e e d Company f o r t h e a c q u i -s i t i o n o f some o f t h e l a t t e r c o m p a n y ' s h o l d i n g s i n t h e E x p l o i t s V a l l e y b e t w e e n R e d I n d i a n L a k e a n d G r a n d F a l l s 97 ( R e e d , 1 9 1 6 ) . T h i s a g r e e m e n t w a s f i n a l l y e x e c u t e d i n 1919 a n d t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company i n c r e a s e d i t s l i m i t a r e a b y 1,282 s q u a r e m i l e s o r 50 p e r c e n t ( R e g i s t r y o f D e e d s , 1 9 1 9 ) . I n 1925 t h e c a p a c i t y o f t h e m i l l w a s i n c r e a s e d t o 100,000 t o n s p e r y e a r ( L a w r e n c e , 1 9 3 7 ) . The l i m i t a r e a w a s 4 ,204 s q u a r e m i l e s . I n 1928 , a m a j o r a c q u i s i t i o n t o o k p l a c e when t h e company t o o k o v e r t h e a s s e t s o f t h e A l e x a n d e r B a y P u l p a n d P a p e r Company ( a s u b s i d i a r y o f t h e A n g l o - N e w -f o u n d l a n d D e v e l o p m e n t Company w h i c h h a d p r e v i o u s l y t a k e n o v e r t h e a s s e t s o f T e r r a N o v a S u l p h i t e Company ) a n d i t s 1,187 s q u a r e m i l e s o f l i m i t a r e a s , m a i n l y l o c a t e d i n t h e T e r r a N o v a R i v e r V a l l e y . I n 1929 a s e c o n d m a j o r l i m i t a c q u i s i t i o n o c c u r r e d . w h e n t h e company a c q u i r e d t h e r e m a i n i n g a s s e t s o f t h e A l b e r t E . R e e d a n d Company ( N f l d . ) L t d . w h i c h i n c l u d e d 930 s q u a r e m i l e s o f t i m b e r l i c e n s e s . B y 1929 t h e t o t a l l i m i t a r e a h e l d b y t h e company h a d i n c r e a s e d t o 6,327 s q u a r e m i l e s . The l a s t m a j o r l i m i t a c q u i s i t i o n w a s made i n 1933 when 1,109 s q u a r e m i l e s w e r e a c q u i r e d o n t h e N o r t h e r n P e n i n s u l a a n d 43 s q u a r e m i l e s o f f r e e h o l d l a n d w e r e a c q u i r e d f r o m t h e R e i d N e w f o u n d l a n d Company . T h i s b r o u g h t t h e t o t a l l i m i t a r e a t o 7,479 s q u a r e m i l e s . The l a s t t i m b e r l i c e n s e w a s a c q u i r e d b y t h e company i n 1948 w i t h t h e p u r c h a s e o f 32 s q u a r e m i l e s f r o m t h e H o r w o o d L u m b e r Company . I n 1962 t w o R e i d l o t s , w i t h a t o t a l a r e a o f 65 98 s q u a r e m i l e s , w e r e a d d e d w h i c h b r o u g h t t h e t o t a l l i m i t a r e a c o n t r o l l e d b y t h e company t o 7,577 s q u a r e m i l e s o r t o 3.27 t i m e s t h e s i z e o f t h e o r i g i n a l h o l d i n g s i n 1905. The a c q u i s i t i o n s o f t h e company a r e l i s t e d i n d e t a i l i n T a b l e V I I a n d a r e a l s o shown on Map 4 , A p p e n d i x 7• C o r n e r B r o o k T h e i n i t i a l e x p a n s i o n i n t h e l i m i t a r e a f o r t h e m i l l f r o m t h e 2,641 s q u a r e m i l e s i t h a d a c q u i r e d u p t o 1925 was a c c o m p l i s h e d t h r o u g h t h e p u r c h a s e o f t i m b e r l i c e n s e s . F r o m 1926 t o 1934, 27 l i c e n s e s w e r e a c q u i r e d w h i c h b r o u g h t t h e t o t a l l i m i t a r e a t o 7,724 s q u a r e m i l e s . I n 1939, m a i n l y a s t h e r e s u l t o f t h e G a n d e r D e a l , t h e l i m i t a r e a o f t h e C o r n e r B r o o k m i l l i n c r e a s e d t o 11,192 s q u a r e m i l e s . The a g r e e m e n t b e t w e e n t h e B o w a t e r i n t e r e s t s a n d t h e G o v e r n m e n t w h i c h s a n c t i o n e d t h e G a n d e r D e a l p r o v i d e d f o r a n i n c r e a s e i n s u l p h i t e p u l p p r o d u c t i o n f o r t h e C o r n e r B r o o k m i l l o f 60,000 t o n s p e r y e a r a n d a n i n c r e a s e i n n e w s p r i n t p r o d u c t i o n o f 30 ,000 t o n s p e r y e a r a s a c o n d i t i o n o f t h e a c q u i s i t i o n b y t h e company o f t h e a d d i t i o n a l t i m b e r l i m i t s . U n d e r t h e B o w a t e r ' s N e w f o u n d l a n d A c t , t h e t e r m o f a l l t i m b e r l i c e n s e s h e l d b y t h e company wa s s e t a t 99 y e a r s f r o m 1938, i r r e s p e c t i v e o f t h e e f f e c t i v e d a t e s s t a t e d i n t h e o r i g i n a l l i c e n s e d o c u m e n t s . TABLE V I I T IMBER L I M I T S ACQUIRED BY THE ANGLO-NEWFOUNDLAND DEVELOPMENT COMPANY FOR THE GRAND F A L L S M I L L Y e a r _ 1905 TT 1907 TT TT 1913 1914 TT 1919 1920 1922 1923 TT 1928 F o r m o f O w n ^ s h i p _ A c q u i r e d F r o m J S q ^ _ M i l e s _ ) _ Cumulative JSq^_MilesJ__ T o t a l A r e a ( P e r c e n t ) L e a s e TT F r e e h o l d TT L e a s e F r e e h o l d TT L e a s e L i c e n s e F r e e h o l d L i c e n s e TT F r e e h o l d L i c e n s e L e a s e C r o w n R e i d N f l d . C o . TT TT N f l d . P i n e & P u l p Co, C r o w n N f l d . P i n e & P u l p C o . TT A l b e r t E . R e e d & C o . ( N f l d . ) L t d E. C o l l i s h a w C r o w n TT N f l d . C o l o n i z a t i o n & M i n i n g C o . A l e x a n d e r B a y P u l p & P a p e r C o . TT 2000 2000 2 6 . 3 305 2305 3 0 . 4 7 2312 3 0 . 5 2 2314 3 0 . 5 6 2320 3 0 . 6 4 2324 3 0 . 7 3 2327 3 0 . 7 3 2330 3 0 . 8 250 2580 3 4 . 0 1 2581 3 4 . 1 1282 3863 5 1 . 0 9 3872 5 1 . 1 270 4142 5 4 . 7 50 4192 5 5 . 3 12. 9 0 6 j 4204 5 5 . 5 5110 6 7 . 4 281 2 5391 7 1 . 1 ^-Crown T i m b e r L i c e n s e s . 2 L e a s e s t o 8 R e i d L o t s f r o m R e i d N e w f o u n d l a n d Company a c q u i r e d b y t h e T e r r a N o v a S u l p h i t e Company . TABLE V I I - C o n t i n u e d F o r m o f Y e a r O w n e r s h i p A c q u i r e d F r o m 1929 L e a s e " F r e e h o l d Tt t t 1933 L i c e n s e tT t t " F r e e h o l d 194.8 L i c e n s e 1 § 6 2 F r e e h o l d B i s h o p s F a l l s P u l p & P a p e r C o . t t M o o n e y & V a n d y k e C o . M . J . M o o n e y R e i d N f l d . C o . H o r w o o d L u m b e r C o . R e i d N f l d . C o . & M i n e s & F o r e s t s ( N f l d . ) L t d . A r e a C u m u l a t i v e T o t a l A r e a " ( S q . M i l e s ) (Sq . M i l e s ) ( P e r c e n t ) 930 6321 8 3 . 4 2 6323 8 3 . 4 4 6327 8 3 . 5 29 6356 8 3 . 9 1080 7436 9 8 . 1 43 7479 9 8 . 9 32 7511 9 9 . 1 66 7577 1 0 0 . 0 TOTALS 75773 3^838 s q u a r e m i l e s o f t i m b e r l i c e n s e s . SOURCE: C o m p i l e d b y t h e w r i t e r f r o m r e c o r d s a t t h e C rown L a n d s R e g i s t r y , t h e R e g i s t r y o f T i m b e r L i c e n s e s a n d v a r i o u s G o v e r n m e n t d o c u m e n t s . 101 A numbe r o f r e l a t i v e l y m i n o r a c q u i s i t i o n s "were made a f t e r 1939- I n 1942 a n d 1950 a t o t a l o f 5 R e i d l o t s w e r e a d d e d , a n d i n 1 9 4 8 , 1950 a n d 1953 t h r e e mo re t i m b e r l i c e n s e s w e r e p u r c h a s e d . T h e s e R e i d l o t s a n d l i c e n s e s i n c r e a s e d t h e l i m i t a r e a t o 1 1 , 5 6 6 s q u a r e m i l e s . The g r o w t h o f t h e l i m i t a r e a i s s u m m a r i z e d b y y e a r i n T a b l e V I I I a n d i s g i v e n i n d e t a i l i n A p p e n d i x 5• The g e o g r a p h i c l o c a t i o n o f a c q u i s i t i o n s i s shown on Map 5 i n A p p e n d i x 7 . G o v e r n m e n t P o l i c y on The G a n d e r D e a l R e f e r e n c e h a s a l r e a d y b e e n made t o t h e e f f o r t s o f t h e R e i d N e w f o u n d l a n d Company t o c o n s o l i d a t e a t i m b e r l i m i t c e n t e r e d a r o u n d t h e G a n d e r R i v e r a n d t o b u i l d a n e w s p r i n t m i l l t o u t i l i z e t h i s w o o d . The a t t e m p t t o e s t a b l i s h t h e m i l l w a s u n s u c c e s s f u l a n d t h e l i m i t a r e a w a s a c q u i r e d b y t h e B o w a t e r i n t e r e s t s a n d a d d e d t o t h e wood s u p p l y a r e a f o r t h e C o r n e r B r o o k m i l l . The d e t a i l s o f t h e n e g o t i a t i o n s l e a d i n g up t o t h e B o w a t e r t a k e o v e r o f t h e C o r n e r B r o o k m i l l h a v e b e e n d e s c r i b e d b y Ewbank (1939) a n d i l l u s t r a t e v e r y w e l l t h e d i l e m m a f a c e d b y N e w f o u n d l a n d G o v e r n m e n t s i n d e a l i n g w i t h p r o m o t e r s o f r e s o u r c e d e v e l o p -ment p r o j e c t s . A f t e r t h e R e i d n e g o t i a t i o n s w i t h t h e H e a r s t o r g a n i z a t i o n o f New Y o r k f a i l e d i n t h e m i d 1 9 3 0 ' s , t h e y managed t o i n t e r e s t t h e B o w a t e r - L l o y d i n t e r e s t s o f E n g l a n d i n t h e c o n s t r u c t i o n o f a s u l p h i t e m i l l c a p a b l e o f p r o -TABLE V I I I SUMMARY OF L I M I T AREAS ACQUIRED FOR CORNER BROOK M I L L Y e a r o f F o r m o f No . o f L i c e n s e s A r e a C u m u l a t i v e T o t a l A r e a A c q u i s i t i o n O w n e r s h i p o r F r e e h o l d L o t s ( S q u a r e M i l e s ) ( S q . M i l e s ) ( P e r c e n t ) 1923 R e i d L o t s 60 1 ,750 1,750 15-1 1923 L i c e n s e s 4 281 2 , 0 3 1 1 7 . 6 1924 F r e e h o l d 2 6 2 , 0 3 7 1 7 . 6 1924 L i c e n s e s 2 219 2,256 1 9 . 5 1925 " 4 385 2,641 2 2 . 8 1926 3 104 2 ,745 2 3 . 7 1927 1 190 2 ,935 2 5 . 4 1928 10 2 , 7 0 9 5,644 4 8 . 8 1929 9 1 ,358 7 , 0 0 2 60 .5 1930 3 679 7,681 6 6 . 4 1934 1 43 7 , 7 2 4 6 6 . 8 1939 R e i d L o t s 29 442 8 , 1 6 6 7 0 . 6 1939 L i c e n s e s 28 3 , 0 2 6 11 ,192 9 6 . 8 1942 R e i d L o t s 1 43 11 ,235 9 7 . 1 1948 L i c e n s e s 1 67 1 1 , 3 0 2 9 7 . 7 1950 R e i d L o t s 4 87 1 1 , 3 8 9 9 8 . 5 1950 L i c e n s e s 1 65 11 ,454 9 9 . 0 1953 t t 1 112 11 ,566 1 0 0 . 0 TOTALS 1 1 , 5 6 6 ! 1 1 , 5 6 6 ^ 9 , 2 3 8 s q u a r e m i l e s o f t i m b e r l i c e n s e s . SOURCE: C o m p i l e d b y t h e w r i t e r f r o m r e c o r d s a t t h e C rown L a n d s R e g i s t r y , t h e R e g i s t r y o f T i m b e r L i c e n s e s a n d v a r i o u s G o v e r n m e n t d o c u m e n t s . 103 d u c i n g 70,000 t o n s o f p u l p a y e a r . The m i l l wa s t o be i n o p e r a t i o n b y 194-0. A s p a r t o f t h e p r o p o s e d a g r e e m e n t t h e G o v e r n m e n t w a s t o : b u i l d a 2 0 - m i l e b r a n c h r a i l w a y l i n e t o t h e m i l l s i t e a t a c o s t o f $1.5 m i l l i o n , i s s u e a 99 - y e a r t i m b e r l i c e n s e t o 3,000 s q u a r e m i l e s i n L a b r a d o r ( w i t h a f r e e r o y a l t y p r o v i s i o n on wood h a r v e s t e d up t o 1945)> a n d a l l o w t h e company t o e x p o r t up t o 97 ,750 c u n i t s o f u n m a n u -f a c t u r e d t i m b e r a y e a r . F u r t h e r , t i m b e r l i c e n s e s on t h e I s l a n d w e r e t o be c o n s o l i d a t e d a n d made r e n e w a b l e f o r a s e c o n d 99 - y e a r t e r m . The a g r e e m e n t wa s p r e p a r e d a n d i n i t i a l e d b u t a t t h e l a s t moment t h e company a d v i s e d t h e G o v e r n m e n t t h a t i t w o u l d n o t p r o c e e d . I n t h e m e a n t i m e , t h e B o w a t e r i n t e r e s t s h a d made a r r a n g e m e n t s t o p u r c h a s e t h e C o r n e r B r o o k m i l l a n d i n J u n e o f 1938 p r e s e n t e d t h e G o v e r n m e n t w i t h a c o u n t e r p r o p o s a l f o r t h e a c q u i s i t i o n o f t h e G a n d e r l i m i t s a n d t h e e x p a n s i o n o f t h e C o r n e r B r o o k m i l l . F u r t h e r n e g o t i a t i o n s f o l l o w e d a n d a t e n t a t i v e a g r e e m e n t w a s i n i t i a l e d on S e p t e m b e r 3 0 , 1938 w h i c h f o r m e d t h e b a s i s o f t h e B o w a t e r * s N e w f o u n d l a n d A c t o f 1938. Some o f t h e m a i n p o i n t s o f t h i s a g r e e m e n t h a v e a l r e a d y b e e n d i s c u s s e d . I n e x c h a n g e f o r a n a g r e e m e n t t o e x p a n d t h e m i l l a t C o r n e r B r o o k t h e B o w a t e r i n t e r e s t s w e r e a l l o w e d t o a c q u i r e f r o m R e i d N e w f o u n d l a n d Company t h e l i m i t s c o m p r i s i n g t h e G a n d e r D e a l . The m a i n a d v a n t a g e s o f t h i s a r r a n g e m e n t f o r t h e G o v e r n m e n t wa s t h a t i t was r e l i e v e d f r o m t h e o b l i g a t i o n t o c o n s t r u c t t h e b r a n c h r a i l w a y l i n e . O f s e c o n d a r y 104 i m p o r t a n c e p e r h a p s wa s t h e f a c t t h a t t h e t i m b e r l i c e n s e t o 3,000 s q u a r e m i l e s i n L a b r a d o r w a s n o l o n g e r r e q u i r e d . The m a i n d i s a d v a n t a g e o f t h e B o w a t e r a g r e e m e n t wa s t h a t i t m a r k e d t h e e n d o f t h e h i g h h o p e s o f t h e G o v e r n -men t a n d t h e p e o p l e i n g e n e r a l f o r t h e e s t a b l i s h m e n t o f a m a j o r wood p r o c e s s i n g p l a n t f o r t h e d e p r e s s e d n o r t h e a s t c o a s t o f t h e I s l a n d . I t wa s a v e r y d i f f i c u l t d e c i s i o n f o r t h e G o v e r n m e n t t o m a k e . I n j u s t i f y i n g t h e G o v e r n m e n t ' s p o s i t i o n , Ewbank (1939) s t r e s s e d t h a t t h e o n l y o p t i o n s w e r e t o a c c e p t t h e B o w a t e r p r o p o s a l o r t o f o r e g o a n y e x p a n s i o n i n t h e i n d u s t r y f o r t h e t i m e b e i n g : The a l t e r n a t i v e b e f o r e t h e m w a s n o t one o f o b t a i n i n g b e t t e r t e r m s f r o m B o w a t e r f s N e w f o u n d l a n d P u l p a n d P a p e r M i l l s L i m i t e d , b u t o f a l l o w i n g t h e o p p o r t u n i t y t o s l i p , a n d o f c a l l i n g on t h e p e o p l e o f t h i s c o u n t r y t o t i g h t e n t h e i r b e l t s a n d w a i t u n t i l some o t h e r o p p o r t u n i t y s h o u l d p r e s e n t i t s e l f . . . I w i s h t o s a y h e r e t h a t G o v e r n m e n t h a v e r e c e i v e d n o p r o -p o s a l s w h i c h w o u l d j u s t i f y t h e m i n c o n c l u d i n g t h a t a n y o t h e r i n t e r e s t s b e s i d e s t h e B o w a t e r i n t e r e s t s a r e c o n s i d e r i n g t h e p u r c h a s e o f t h e G a n d e r p r o p e r t i e s i n o r d e r t o p u t u p a n e w s p r i n t o r p u l p m i l l . T h e y h a v e c o n t i n u e d t h e i r n e g o t i a t i o n s w i t h B o w a t e r s t h e r e f o r e on t h e p r e s u m p t i o n t h a t i n s p i t e o f t h e f a c t t h a t t h e R e i d i n t e r e s t s h a v e h a d t h e r e s o u r c e s o f t h e i r p r o p e r t i e s f u l l y e x a m i n e d b y e x p e r t s o f t h e h i g h e s t s t a n d i n g , a n d h a v e t a k e n s t e p s t o b r i n g t h e f a c t s t o n o t i c e i n e v e r y q u a r t e r f r o m w h i c h t h e y h o p e d f o r a r e s p o n s e , t h e r e i s s t i l l n o o t h e r c a n d i d a t e i n t h e f i e l d . F a c e d w i t h t h e p r o s p e c t o f o n l y one s e r i o u s d e v e l o p e r i n t e r e s t e d i n a c q u i r i n g t h e G a n d e r l i m i t s , t h e G o v e r n m e n t h a d t o d e c i d e t o e i t h e r t a k e t h e one o f f e r o r t o d e f e r f u r t h e r d e v e l o p m e n t i n d e f i n i t e l y . To t a k e t h e l a t t e r c o u r s e wa s u n a c c e p t a b l e b e c a u s e e c o n o m i c c o n d i t i o n s 10$ •were d e s p e r a t e a n d w e r e f o r e c a s t t o g e t w o r s e i n t h e i m m e d i a t e f u t u r e . The n e e d o f a d d i t i o n a l e m p l o y m e n t on t h e n o r t h e a s t c o a s t wa s u r g e n t . G o v e r n m e n t w e r e f a c e d w i t h t h e k n o w l e d g e t h a t i n t h e s e a s o n 193 S-9 a t o t a l r e d u c t i o n o f a b o u t 1,000,000 man d a y s i n e m p l o y m e n t i n t h e w o o d s a n d 2\ m i l l i o n d o l l a r s i n w a g e s i n a d d i t i o n t o a r e d u c t i o n o f 250,000 man d a y s i n m i l l w o r k a n d a b o u t l i m i l l i o n d o l l a r s i n w a g e s i s a n t i c i p a t e d ( Ewbank , 1939). The amoun t o f d i r e c t r e v e n u e t o G o v e r n m e n t wa s o f s e c o n d a r y i m p o r t a n c e c o m p a r e d t o t h e n e e d t o p r o v i d e a d d i t i o n a l e m p l o y m e n t a n d t h e r i g h t o f t h e R e i d i n t e r e s t s t o make t h e b e s t d e a l t h e y c o u l d f o r t h e s a l e o f t h e i r l i m i t s . The company w i l l p a y a r o y a l t y o f 300 p e r c o r d o n a l l wood c u t a n d e x p o r t e d f r o m i t s p r o p e r t i e s . . . The f a c t t h a t t h e s e p r o p e r t i e s h a v e b e e n a l i e n a t e d i n t h e p a s t e i t h e r i n f e e s i m p l e o r on l o n g t e r m l i c e n s e s , a n d t h a t t h e R e i d i n t e r e s t s a r e e n t i t l e d t o d e c i d e a t w h a t p r i c e t h e y w i l l t r a n s f e r t h e i r r i g h t s t o t h e p u r c h a s e r s , i n c r e a s e s t h e o v e r h e a d c o s t o f t h e t i m b e r t o t h e company a n d l i m i t s t h e f r e e d o m o f G o v e r n m e n t t o s e t a r o y a l t y on wood e x p o r t e d f o r m a n u f a c t u r e o u t s i d e t h i s c o u n t r y a t f i g u r e s c o m p a r a b l e t o t h o s e o b t a i n i n g i n some C a n a d i a n p r o v i n c e s . I n a n y c a s e , i t i s n o t p a r t o f t h e i r p o l i c y t o p r e s s t h e c l a i m s o f t h e p u b l i c r e v e n u e s . . . T h e i r m a i n o b j e c t i s t o s e c u r e w o r k f o r t h e p e o p l e u n d e r r e a s o n a b l e c o n d i t i o n s a n d a t r a t e s o f w a g e s w h i c h w i l l e n a b l e t h e m t o e a r n a f a i r l i v e l i h o o d . A h i g h r o y a l t y m u s t t e n d t o s u p p r e s s w a g e s ( Ewbank , 1939). Ewbank t h u s summed u p t h e t i m b e r a l l o c a t i o n p o l i c y o f N e w f o u n d l a n d . T h e r e s o u r c e w a s a l l o c a t e d t o t h e p r i v a t e s e c t o r i n t h e h o p e t h a t i n d u s t r i a l d e v e l o p m e n t w o u l d be a c h i e v e d . The m a i n o b j e c t i v e o f G o v e r n m e n t wa s . t o c r e a t e e m p l o y m e n t a n d d i r e c t r e t u r n s t o t h e p u b l i c 106 t r e a s u r y w o u l d b e k e p t a t a l o w l e v e l . P r i v a t e d e v e l o p e r s w o u l d be a l l o w e d t o c a p t u r e a n y e c o n o m i c r e n t s t h a t c o u l d be r e a l i z e d t h r o u g h r e s o u r c e u t i l i z a t i o n . The B o w a t e r i n t e r e s t s a c q u i r e d t h e C o r n e r B r o o k m i l l f o r $5-5 m i l l i o n ( U . S . ) ( Ewbank , 1939). I n a d d i t i o n a p p r o x i m a t e l y $5 m i l l i o n w a s p a i d t o t h e R e i d i n t e r e s t s f o r t h e t i m b e r l i c e n s e s a n d R e i d l o t s i n v o l v e d i n t h e G a n d e r D e a l . The c a p i t a l g a i n s , i f a n y , r e a l i z e d b y t h e R e i d i n t e r e s t s i n t h e s a l e o f t h e t i m b e r p r o p e r t i e s c o u l d n o t b e a c c u r a t e l y e s t i m a t e d b e c a u s e c o m p l e t e f i g u r e s on t h e c o s t o f a c q u i s i t i o n o f t h e p r o p e r t i e s , a n d t h e d e v e l o p m e n t e x p e n s e s i n c u r r e d , c o u l d n o t be a s c e r t a i n e d . Summary When i t became a p p a r e n t t h a t t h e I s l a n d ' s f o r e s t s c o u l d n o t s u p p o r t a l a r g e s c a l e l u m b e r e x p o r t i n d u s t r y , a t t e n t i o n wa s f o c u s e d on t h e p u l p a n d p a p e r i n d u s t r y . The m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k w e r e o n l y t w o o f t e n m a j o r a t t e m p t s t o e s t a b l i s h p u l p o r p a p e r m i l l s on t h e I s l a n d . S i x m i l l s w e r e c o n s t r u c t e d a n d s e r i o u s e f f o r t s w e r e made t o e s t a b l i s h a t l e a s t f o u r m o r e . A s t h e s e v a r i o u s d e v e l o p m e n t a t t e m p t s f a i l e d , m o s t o f t h e t i m b e r l i c e n s e s a n d R e i d l o t s o f a n y v a l u e w e r e a c q u i r e d b y t h e o p e r a t o r s o f t h e t w o s u c c e s s f u l m i l l s . The l a s t m a j o r c o n c e n t r a t i o n i n o w n e r s h i p o c c u r r e d when t h e B o w a t e r i n t e r e s t s t o o k o v e r t h e C o r n e r B r o o k m i l l 107 and acquired the extensive holdings the Reids had acquired for the proposed Gander development. This was the last chance the Government had to halt the concentration process that was occurring. Faced with desperate economic conditions and no other prospective developer, the Govern-ment decided to allow the remaining limit areas to be traded off for the employment benefits that would be provided. On the Island of Newfoundland, approximately 26,101 square miles were alienated in three main forms of ownership: fee simple grants, totalling 4,094 square miles; 2,000 square miles under a special timber lease; and 20,007 square miles in timber licenses. The Reid Newfoundland Company obtained 151 fee simple grants containing 3,997 square miles as part payment for i t s railway operations but under the Transportation of Timber Act of 1904, the company lost cutting rights to 649 square miles within the three-mile l i m i t . This l e f t 3,348 square miles. By the early 1960,s, cutting rights to 94 Reid lots containing 2,324 square miles had been acquired for the Corner Brook m i l l and cutting rights to 26 lots containing 710 square miles had been acquired for the Grand Falls m i l l . Cutting rights to the remaining 314 square miles were retained by the Reid Newfoundland Company u n t i l 1974, when they were re-acquired by the Government as part of an overall agreement in which the company surrendered 108 i t s v a r i o u s i n t e r e s t s ( e x c e p t m i n e r a l r i g h t s ) t o a n a r e a o f 819 s q u a r e m i l e s i n e x c h a n g e f o r a p a y m e n t o f $4?150,000. O f t h e 97 s q u a r e m i l e s o f f e e s i m p l e g r a n t s i s s u e d t o t h e New Y o r k , N e w f o u n d l a n d a n d L o n d o n T e l e g r a p h Company , 12 s q u a r e m i l e s w e r e a c q u i r e d f o r t h e C o r n e r B r o o k m i l l a n d 6 s q u a r e m i l e s f o r t h e G r a n d F a l l s m i l l . The A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company ( l a t e r P r i c e ( N f l d . ) P u l p a n d P a p e r L i m i t e d ) r e t a i n e d o w n e r s h i p o f i t s 2 , 0 0 0 s q u a r e - m i l e l e a s e a r e a f o r t h e G r a n d F a l l s m i l l . B y t h e e a r l y 1960 ' s , t h e r e w e r e o n l y t w o o w n e r s o f t i m b e r l i c e n s e s on t h e I s l a n d . B e t w e e n t h e m t h e o p e r a t o r s o f t h e m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k h a d a c q u i r e d 14,076 s q u a r e m i l e s o r 70 p e r c e n t o f t h e a r e a a l i e n a t e d i n t i m b e r l i c e n s e s . The r e m a i n i n g 5,931 s q u a r e m i l e s h a d r e v e r t e d t o t h e C r o w n . The d i s t r i b u t i o n o f t i m b e r o w n e r s h i p on t h e I s l a n d f o r t h e e a r l y 1960 ' s i s shown i n F i g u r e 6. The a r e a s shown a s b e l o n g i n g t o t h e R e i d N e w f o u n d l a n d Company a r e t h e a r e a s w i t h c u t t i n g r i g h t s r e - a c q u i r e d b y G o v e r n -m e n t i n 1974-109 FIGURE 6 . Timber allocation on the island, I960 110 CHAPTER V I DEVELOPMENTS I N LABRADOR The c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p a n d d e v e l o p -m e n t o f l i c e n s e a r e a s w h i c h o c c u r r e d on t h e I s l a n d d i d n o t o c c u r t o n e a r l y t h e same e x t e n t i n L a b r a d o r . D u r a t i o n o f L i c e n s e s S t a t i s t i c s o n n u m b e r o f l i c e n s e s i s s u e d a n d a r e a s l i c e n s e d i n L a b r a d o r w e r e p r e s e n t e d i n T a b l e s I I a n d I V w h i c h show t h a t a t o t a l o f 97 l i c e n s e s w e r e i s s u e d f o r a g r o s s a r e a o f 6 9 , 7 7 3 s q u a r e m i l e s . H o w e v e r , t h e r e wa s c o n -s i d e r a b l e d u p l i c a t i o n i n t h a t i n many c a s e s l i c e n s e s w e r e r e - i s s u e d f o r i d e n t i c a l a r e a s . The n e t a r e a l i c e n s e d was 2 9 , 4 2 9 s q u a r e m i l e s . A c c u r a t e i n f o r m a t i o n o n t h e l i f e h i s t o r y o f a l l l i c e n s e a r e a s i n L a b r a d o r c o u l d n o t be f o u n d . I n d i c a t i o n s a r e t h a t many l i c e n s e s w e r e h e l d f o r o n l y a s h o r t p e r i o d o f t i m e , a n d t h e r a t e o f c a n c e l l a t i o n s o r s u r r e n d e r m u s t h a v e b e e n f a i r l y h i g h i n t h e p e r i o d 1 9 1 2 - 1 9 2 0 . F r o m T a b l e I V i t c a n b e s e e n t h a t up t o 1 9 2 0 , a n e t a r e a o f 2 9 , 3 0 8 s q u a r e m i l e s h a d b e e n l i c e n s e d . A map , p r e p a r e d i n 1923 b y t h e D e p a r t m e n t o f A g r i c u l t u r e a n d M i n e s , i n d i c a t e s t h a t a t t h a t t i m e t h e r e w e r e 22 l i c e n s e s i n e f f e c t f o r a t o t a l o f 1 2 4 , 7 0 6 s q u a r e m i l e s . The o r i g i n a l map a l s o s howed a n u m b e r I l l o f a r e a s f o r w h i c h l i c e n s e a p p l i c a t i o n s h a d b e e n r e c e i v e d b u t i t a p p e a r s t h a t n o n e o f t h e s e a r e a s w e r e s u b s e q u e n t l y l i c e n s e d . A c o p y o f t h i s map, s h o w i n g t h e l i c e n s e s i n g o o d s t a n d i n g i n 1 9 2 3 , i s p r e s e n t e d a s Map 2 i n A p p e n d i x 7 . The a p p r o x i m a t e d i s p o s i t i o n o f t h e a r e a shown on t h e 1923 map was d e t e r m i n e d . I n 1924 a c o n s e r v a t i v e G o v e r n m e n t u n d e r t h e l e a d e r s h i p o f W.S . M o n r o e , a S t . J o h n ' s m e r c h a n t , wa s e l e c t e d t o t h e H o u s e o f A s s e m b l y ( N o e l , 1 9 7 1 ) . One o f t h e d e c i s i o n s o f t h i s a d m i n i s t r a t i o n wa s t o c a n c e l a n u m b e r o f t i m b e r l i c e n s e s i n L a b r a d o r w h i c h w e r e i n a r r e a r s w i t h r e s p e c t t o p a y m e n t o f r e n t ( M i n u t e o f C o u n c i l , 1 9 2 5 ) . T h i r t e e n l i c e n s e s w e r e c a n c e l l e d i n 1 9 2 5 , a n d 1 3 , 1 3 4 s q u a r e m i l e s r e v e r t e d t o t h e C r o w n . Two a d d i t i o n a l l i c e n s e s w e r e c a n c e l l e d i n t h e 1 9 3 0 * s a n d i n 1949 l i c e n s e s o n a n o t h e r 6 , 0 7 4 s q u a r e m i l e s w e r e c a n c e l l e d f o r n o n - p a y m e n t o f r e n t a l . I n 1 9 5 1 , 100 s q u a r e m i l e s i n 5 0 - y e a r l i c e n s e s e x p i r e d a n d i n t h a t y e a r a l s o l e g i s l a t i o n w a s p a s s e d t o c a n c e l a n u m b e r o f l i c e n s e s on t h e I s l a n d a n d i n L a b r a d o r f o r n o n c o m p l i a n c e o f v a r i o u s c o n d i t i o n s u n d e r w h i c h t h e l i c e n s e s h a d b e e n i s s u e d ( N e w f o u n d l a n d , 1 9 5 1 ) . T h i s l e g i s l a t i o n h a d t h e e f f e c t o f c a n c e l l i n g t h e r e m a i n i n g l i c e n s e s i n L a b r a d o r . The g e o g r a p h i c l o c a t i o n o f a r e a s c a n c e l l e d i s shown on Map 2 a n d a s t a t i s t i c a l summary i s c o n t a i n e d i n T a b l e I X . 112 T A B L E I X LABRADOR TIMBER L I C E N S E S CANCELLED AND EXP IRED 1 9 2 5 - 5 2 Y e a r N o . L i c e n s e s A r e a ( s q . C a n c e l l e d m i . ) E x p i r e d 1925 13 1 3 , 1 3 4 193 5 1 1 512 1939 1 550 1949 6 6 , 0 7 4 1951 3 100 1952 9 4 , 2 0 5 TOTALS 32 2 4 , 4 7 2 2 100 D a t e a s s u m e d . L i c e n s e h e l d b y L o n d o n L a b r a d o r C o r p o r a t i o n . L a s t r e n t p a i d f o r 1 9 2 8 . L i c e n s e r e m a i n e d on t h e b o o k s o f t h e D e p a r t m e n t up t o m i d - 1 9 3 0 T s . The t o t a l a r e a o f 2 4 , 4 7 5 s q u a r e m i l e s c o m p a r e s w i t h 2 4 , 7 0 6 s q u a r e m i l e s on t h e 1923 map . SOURCE: C o m p i l e d b y t h e w r i t e r f r o m i n f o r m a t i o n a t t h e C r o w n L a n d s R e g i s t r y a n d t h e N e w f o u n d l a n d A r c h i v e s . C o n c e n t r a t i o n o f T i m b e r O w n e r s h i p I n L a b r a d o r , t h e r e w e r e o n l y t h r e e o c c u r r e n c e s w h i c h c o u l d b e r e g a r d e d a s c o n c e n t r a t i o n s o f t i m b e r o w n e r -s h i p . The f i r s t o f t h e s e o c c u r r e d s i m p l y t h r o u g h t h e i s s u e o f a l i c e n s e f o r a v e r y l a r g e a r e a i n 1910 t o t h e H a m i l t o n R i v e r P u l p a n d L u m b e r Company . The a r e a s i n v o l v e d w e r e a n u m b e r o f b l o c k s c e n t e r e d a r o u n d t h e w e s t e r n e n d o f L a k e 113 M e l v i l l e ( l i c e n s e a r e a 2 0 , Map 2 , A p p e n d i x 7 ) . I n a l l , t h e l i c e n s e c o n t a i n e d 5 , 9 6 3 s q u a r e m i l e s . I t -was h e l d s o l e l y f o r s p e c u l a t i v e p u r p o s e s . The H a m i l t o n R i v e r P u l p a n d L u m b e r Company w a s b a s e d a t S t . J o h n T s , a n d t h e o f f i c e r s o f t h e Company w e r e p r o m i n e n t member s o f t h e S t . J o h n ' s m e r c h a n t c l a s s . The P r e s i d e n t wa s H.D. R e i d a n d t h e d i r e c t o r s i n c l u d e d W . C . J o b a n d R . B . J o b who w e r e f i s h m e r c h a n t s , a n d S . J . F o o t e who was a l a w y e r who h a d e x t e n s i v e d e a l i n g s i n t i m b e r l i c e n s e t r a n s -a c t i o n s ( R e i d , 1 9 1 2 ) . The Company wa s w e l l c o n n e c t e d p o l i t i c a l l y a n d when a d v i s e d i n w r i t i n g b y t h e M i n i s t e r o f M i n e s a n d A g r i c u l t u r e t h a t a r r e a r s i n r e n t o f $ 2 3 , 8 5 2 h a d t o b e p a i d ( B l a n d f o r d , 1 9 1 5 ) , was a b l e t o a r r a n g e t o d e l a y g o v e r n m e n t a c t i o n t o h a v e t h e l i c e n s e d e c l a r e d f o r f e i t e d ( G r a v e , 1 9 1 5 ) . The a n t i c i p a t e d p r o f i t s f r o m t h e s a l e o f t h e l i c e n s e w e r e s u b s t a n t i a l . I n a l e t t e r t o t h e P r i m e M i n i s t e r , t h e s o l i c i t o r f o r t h e Company o u t l i n e d t h e n e e d f o r g o v e r n -m e n t c o - o p e r a t i o n i n t h e m a t t e r o f w a t e r p o w e r r i g h t s a n d e s t i m a t e d t h e s e l l i n g p r i c e : M I L L S I T E . The p r o p e r t y i s v e r y l a r g e a n d we may h a v e t o s e l l i n t w o p a r t s . A l l we w a n t i s t h a t t h e G o v e r n m e n t w i l l g i v e u s s o m e t h i n g t o show i n v e s t o r s t h a t t h e q u e s t i o n o f a m i l l s i t e c a n b e e a s i l y s e t t l e d e v e n i f we h a v e t o s e l l i n t w o p o r t i o n s . 2 . WATER POWER. T h i s i s t h e m o s t i m p o r t a n t p a r t o f t h e w h o l e m a t t e r . We a s k t h a t we s h a l l b e g i v e n a t l e a s t one t h i r d o f t h e w a t e r p o w e r d e v e l o p e d b y t h e M u s k r a t F a l l s - a m o s t v i t a l t h i n g t o a n y o n e w o r k i n g 114 t h e p r o p e r t i e s . A s y o u k n o w , t h e l a w c a l l s f o r a m i l l c a p a b l e o f c u t t i n g s o much p e r d a y i n p r o p o r t i o n t o t h e n u m b e r o f s q u a r e m i l e s l e a s e d . When I s a y t h a t o u r p r o p e r t y i s h a l f a s l a r g e a g a i n a s H a r m s w o r t h * s y o u w i l l u n d e r s t a n d t h e g r e a t a n d e n o r m o u s amount o f p o w e r r e q u i r e d e v e n t o be w i t h i n t h e l a w , t o s a y n o t h i n g o f w h a t i s r e q u i r e d f o r o t h e r p u r p o s e s . C o m p a r e d t o o t h e r p r o p e r t i e s i n t h e v i c i n i t y o f o u r s , o u r a r e a s a r e f r o m 1 0 0 % t p ( s i c ) 500% l a r g e r a n d r e q u i r e s i n v e s t o r s ( s i c ) m u s t be made a s a t t r a c t i v e a s p o s s i b l e . O u r a r e a s a r e l a r g e a n d we w i l l s e l l f o r a l a r g e amount - o v e r $ 1 , 0 0 0 , 0 0 0 ( W a r r e n , 1 9 1 0 ) . T h r e e d a y s l a t e r t h e C o l o n i a l S e c r e t a r y r e p l i e d i n d i c a t i n g t h a t t h e G o v e r n m e n t w o u l d a g r e e t o t h e r e q u e s t s o f t h e Company a n d t h a t : The G o v e r n m e n t w i l l i s s u e t i m b e r l e a s e s o r p u l p l i c e n s e s t o a n y o n e who p r o p o s e s t o w o r k t h e p r o p e r t i e s ( W a t s o n , 1 9 1 0 ) . The l i c e n s e h e l d b y t h e H a m i l t o n P u l p a n d L u m b e r Company w a s one o f t h o s e c a n c e l l e d i n 1925 f o r n o n p a y m e n t o f r e n t a l s . B e t w e e n 1902 a n d 1 9 1 1 , e l e v e n 5 0 - y e a r s a w m i l l l i c e n s e s w e r e i s s u e d f o r t h e m o s t a c c e s s i b l e t i m b e r i n t h e S a n d w i c h B a y a r e a on t h e L a b r a d o r c o a s t . T h e t o t a l a r e a c o n t a i n e d i n t h e s e l i c e n s e s w a s 1 , 6 0 6 s q u a r e m i l e s . A S t . J o h n ' s f i r m , J o b B r o t h e r s Company L i m i t e d , a c q u i r e d t h e s e a r e a s a n d i n 1912 , a 9 9 - y e a r l i c e n s e w a s i s s u e d t o t h a t Company f o r 1 , 6 4 0 s q u a r e m i l e s , w h i c h was e s s e n t i a l l y t h e same a r e a c o v e r e d b y t h e p r e v i o u s e l e v e n l i c e n s e s . A l s o i n 1 9 1 2 , a n o t h e r 9 9 - y e a r l i c e n s e w a s i s s u e d t o W.C . J o b ( one o f t h e p r i n c i p a l s o f J o b B r o t h e r s Company L i m i t e d ) f o r 368 s q u a r e m i l e s a d j a c e n t t o t h e 1 , 6 4 0 s q u a r e -m i l e b l o c k . Thu s , b y 1912 , l i c e n s e s f o r 2 , 0 0 8 s q u a r e m i l e s 115 i n t h e S a n d w i c h B a y a r e a h a d b e e n i s s u e d t o t h e J o b i n t e r e s t s . E v e n b e f o r e t h e 1912 l i c e n s e s w e r e i s s u e d , J o b B r o t h e r s Company L i m i t e d s o l d i t s i n t e r e s t t o a Q u e b e c company c a l l e d t h e L a b r a d o r P u l p a n d L u m b e r Company L i m i t e d ( S m i t h , 1 9 3 0 ) . T h i s company a l s o a c q u i r e d a l i c e n s e t o 150 s q u a r e m i l e s o n t h e Kenamu R i v e r , s o u t h o f L a k e M e l v i l l e i n 1918, w h i c h i n c r e a s e d i t s t o t a l l i c e n s e d a r e a t o 2,158 s q u a r e m i l e s . The company c l a i m e d i t made a n u m b e r o f a t t e m p t s t o d e v e l o p i t s l i c e n s e s b u t n o o p e r a t i o n s w e r e e s t a b l i s h e d . The l i c e n s e s w e r e m a i n t a i n e d i n g o o d s t a n d i n g b y t h e p a y m e n t o f a n n u a l r e n t a l s a m o u n t i n g t o $4,316 u n t i l t h e y w e r e f i n a l l y c a n c e l l e d i n 1952. The 2 , 0 08 s q u a r e - m i l e a r e a i s shown a s l i c e n s e a r e a n u m b e r 9 on Map 2 . F o r some r e a s o n ( p r o b a b l y b e c a u s e i t o v e r l a p p e d o t h e r l i c e n s e s ) t h e 150 s q u a r e - m i l e a r e a w a s n o t i n c l u d e d i n t h e 1923 m a p . D u r i n g t h e 1 9 3 0 * s , a c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p o c c u r r e d on t h e L a b r a d o r c o a s t i n v o l v i n g t i m b e r l i c e n s e s l o c a t e d i n l a n d b e t w e e n S a n d w i c h B a y a n d S t . L e w i s I n l e ^ t . The L a b r a d o r D e v e l o p m e n t Company w a s c o n t r o l l e d b y M e s s r s . J . O . W i l l i a m s a n d Company o f C a r d i f f , W a l e s a n d w a s m a i n l y i n t e r e s t e d i n p r o d u c i n g p i t p r o p s f o r e x p o r t t o G r e a t B r i t a i n ( K e n n e d y , 1 9 5 5 ) . The company o p e r a t e d f r o m 1934 t o 1942 a n d e x p o r t e d a p p r o x i m a t e l y 110,500 c u n i t s o f p i t p r o p s . Some d e t a i l s o f t h e t i m b e r l i c e n s e a c q u i s i t i o n s 116 o f t h e company a s r e c o r d e d i n t h e R e g i s t r y o f D e e d s i n S t . J o h n ' s a r e p r e s e n t e d i n T a b l e X . The a r e a s a r e shown a s l i c e n s e n u m b e r s 4> 7 , 8 , 1 4 , 15 a n d 44 on Map 2 . A t a n a v e r a g e a n n u a l e x p o r t o f 1 3 , 812 c u n i t s , t h e o p e r a t i o n s o f t h e L a b r a d o r D e v e l o p m e n t Company a t P o r t Hope S i m p s o n w e r e b y f a r t h e l a r g e s t l o g g i n g o p e r a t i o n s i n L a b r a d o r u p t o v e r y r e c e n t t i m e s ( K e n n e d y , 1 9 5 5 ) . The G o v e r n m e n t s u p p o r t e d t h e o p e r a t i o n w i t h a l o a n f o r $ 1 9 4 , 0 0 0 w h i c h wa s s e c u r e d b y a m o r t g a g e on two t i m b e r l i c e n s e s ( s e e T a b l e X ) . The r e a s o n f o r t h e c e s s a t i o n o f o p e r a t i o n s i n 1942 i s n o t c l e a r b u t t h e w a r e f f o r t w o u l d h a v e h a d d i s -r u p t i v e e f f e c t s a n d t h e r e wa s some i n d i c a t i o n t h a t t h e b u s i n e s s w a s n o t managed a s e f f i c i e n t l y a s i t c o u l d h a v e b e e n . The company h a d a c c u m u l a t e d a l a r g e l i m i t a r e a , f a r i n e x c e s s o f w h a t was r e q u i r e d f o r t h e l i m i t e d o p e r a t i o n s t h a t d i d o c c u r . One l i c e n s e , a 2 , 4 3 4 s q u a r e - m i l e a r e a c e n t e r e d a r o u n d t h e w a t e r s h e d o f t h e A l e x i s R i v e r , w o u l d h a v e b e e n mo re t h a n s u f f i c i e n t f o r i n i t i a l o p e r a t i o n s a n d t h e company w o u l d h a v e a v o i d e d c a p i t a l c o s t s o f $ 1 8 2 , 0 0 0 f o r 3 , 6 4 0 s q u a r e m i l e s o f l i c e n s e s i t d i d n o t u s e , p l u s a n n u a l r e c u r r i n g r e n t a l s o f $ 7 , 2 8 0 . W i l l i a m s wa s s u b m i t t i n g p r o p o s a l s t o G o v e r n m e n t i n 1949 f o r r e n e w a l o f t h e o p e r a t i o n b u t t h e G o v e r n m e n t r e f u s e d a n d t h e l i c e n s e s w e r e c a n c e l l e d ( K e n n e d y , 1 9 5 5 ) . F a i l u r e o f D e v e l o p m e n t t o O c c u r The p o l i c y a p p l i e d t o t h e i s s u a n c e o f t i m b e r l i c e n s e s f o r L a b r a d o r was e s s e n t i a l l y t h e same a s t h a t f o r 117 T A B L E X T IMBER L I C E N S E S ACQUIRED BY LABRADOR DEVELOPMENT COMPANY Map L i c e n s e C o n s i d e r a t i o n ( $ ) D a t e A c q u i r e d f r o m _No_. A r e a T o t a l P e r S 3 . S a n d w i c h B a y T i m b e r C o . L t d . 1 14 1 , 6 0 0 4 2 , 4 0 0 2 6 . 5 1934 J a p p L a t c h & C o . 2 8 , 4 4 1 , 160 9 9 , 8 0 0 8 6 . 0 1935 R i o r d o n e t a l . 7 800 3 0 , 0 0 0 3 7 . 5 1937 W i l l i a m s , J . 0 . 3 15 80 1 0 , 0 0 0 1 2 5 . 0 1937 T o b i n e t a l . 4 4 2 , 4 3 4 1 0 0 , 0 0 0 4 1 . 1 T o t a l s 6 , 0 7 4 2 8 2 , 2 0 0 4 6 . 5 •'-The c o n s i d e r a t i o n w a s $ 2 0 , 0 0 0 p l u s u n s p e c i f i e d b a c k r e n t a l s ( R e g i s t r y o f D e e d s V . 1 3 3 - F - 3 9 2 ) . R e c o r d s o f t h e D e p a r t m e n t o f A g r i c u l t u r e a n d M i n e s i n d i c a t e t h a t t h e r e n t h a d b e e n p a i d up t o N o v e m b e r , 1 9 2 8 . The b a c k r e n t t o N o v e m b e r 1935 w o u l d be $ 2 2 , 4 0 0 , m a k i n g t h e e s t i m a t e d t o t a l c o n s i d e r a t i o n $ 4 2 , 4 0 0 . I n M a y , 1935 t h e s e l i c e n s e s w e r e p u t up a s c o l l a t e r a l t o s e c u r e a m o r t g a g e f r o m t h e N e w f o u n d l a n d G o v e r n m e n t f o r $ 1 9 4 , 0 0 0 ( R e g i s t r y o f D e e d s , V . 1 3 2 - F . 3 3 0 ) . • ^ W i l l i a m s a c q u i r e d t h e l i c e n s e i n 1935 f o r $ 5 , 0 0 0 p l u s u n s p e c i f i e d o t h e r c o n s i d e r a t i o n ( R e g i s t r y o f D e e d s , V . 1 3 4 - F . 2 9 2 ) . He t r a n s f e r r e d i t t o t h e Company i n 1937 f o r $ 1 0 , 0 0 0 o r $125 p e r s q u a r e m i l e w h i c h a p p e a r s q u i t e - h i g h c o m p a r e d t o p r i c e s p a i d f o r o t h e r l i c e n s e s . ^ $ 2 5 , 0 0 0 wa s p a i d i n c a s h , s e l l e r s t o o k a m o r t g a g e f o r t h e b a l a n c e ( R e g i s t r y o f D e e d s , V . L 4 O - F . 3 7 9 ) . SOURCES: C o m p i l e d b y t h e w r i t e r f r o m r e c o r d s o f t h e D e p a r t m e n t o f F o r e s t r y a n d A g r i c u l t u r e a n d t h e R e g i s t r y o f D e e d s . 118 t h e I s l a n d . The o n l y e x c e p t i o n a p p e a r s t o b e t h a t t h e r o y a l t y c h a r g e on l u m b e r wa s 250 p e r t h o u s a n d b o a r d f e e t c o m p a r e d w i t h 500 c h a r g e d i n l i c e n s e s i s s u e d f o r t h e I s l a n d . No o t h e r a l l o w a n c e was made f o r t h e f a c t t h a t L a b r a d o r t i m b e r a r e a s w e r e much mo re i n a c c e s s i b l e t h a n t h o s e on t h e I s l a n d a n d t h a t t h e G o v e r n m e n t knew p r a c t i c a l l y n o t h i n g a b o u t t h e q u a n t i t y a n d q u a l i t y o f t i m b e r . R e m o t e n e s s a n d t h e l a c k o f k n o w l e d g e o f t h e t i m b e r seems t o h a v e e n c o u r a g e d s p e c u l a t o r s t o a p p l y f o r l i c e n s e s f o r l a r g e a r e a s . A s t h e f i g u r e s i n T a b l e X I i n d i c a t e , t h e a v e r a g e l i c e n s e i s s u e d f o r L a b r a d o r w a s a b o u t 5.5 t i m e s t h e a v e r a g e l i c e n s e i s s u e d f o r t h e I s l a n d . O n l y 97 l i c e n s e s w e r e i s s u e d f o r L a b r a d o r T A B L E X I AVERAGE S I Z E OF T IMBER L I C E N S E S I SSUED ITEM I SLAND LABRADOR N o . L i c e n s e s I s s u e d 386 97 G r o s s A r e a ( s q . m i . ) 50,878 69,773 A v e r a g e S i z e L i c e n s e ( s q . m i . ) 132 719 SOURCE: D a t a f r o m T a b l e s II,, I I I a n d I V . c o m p a r e d w i t h 385 f o r t h e I s l a n d , b u t t h o s e t h a t d i d s p e c u l a t e i n L a b r a d o r a p p l i e d f o r l a r g e a r e a s , p r e s u m a b l y t o l i m i t c o m p e t i t i o n a n d t o i n c l u d e a s much g o o d t i m b e r l a n d i n t h e l i c e n s e a s p o s s i b l e . 119 I n a d d i t i o n t o t h e u s u a l d i f f i c u l t i e s o f e s t a b l i s h i n g p i o n e e r s a w m i l l s o r p u l p m i l l s i n i s o l a t e d a r e a s w i t h p r a c t i c a l l y no i n f r a s t r u c t u r e a n d w i t h v e r y p o o r t r a n s p o r t a t i o n a n d c o m m u n i c a t i o n f a c i l i t i e s , a n u m b e r o f a d d i t i o n a l f a c t o r s o p e r a t e d t o d e t e r d e v e l o p m e n t e f f o r t s i n L a b r a d o r . T h e s e a r e o u t l i n e d b e l o w . L a b r a d o r B o u n d a r y D i s p u t e M a c K a y ( 1 9 4 6 ) h a s d e s c r i b e d t h e c i r c u m s t a n c e s s u r r o u n d i n g t h i s d i s p u t e . F o r v a r i o u s r e a s o n s t h e a c t u a l b o u n d a r y b e t w e e n Quebec a n d N e w f o u n d l a n d i n L a b r a d o r h a d n o t b e e n a c c u r a t e l y d e f i n e d u p t o t h e l a t e 1 8 0 0 T s . I n 1763 t h e a d m i n i s t r a t i o n o f t h e L a b r a d o r c o a s t w a s made p a r t o f t h e r e s p o n s i b i l i t i e s o f t h e N a v a l G o v e r n o r o f N e w f o u n d l a n d . I n . 1 7 7 4 t h e a r e a w a s t r a n s f e r r e d t o C a n a d a . T h i s a r r a n g e -m e n t p r o v e d t o b e u n s a t i s f a c t o r y a n d j u r i s d i c t i o n o f t h e c o a s t w a s r e a s s i g n e d t o N e w f o u n d l a n d i n 1 8 0 9 . I n 1 8 2 5 , u n d e r t h e p r o v i s i o n o f t h e B r i t i s h N o r t h A m e r i c a ( S e i g n o r i a l R i g h t s ) A c t , a l l o f t h e c o a s t w e s t o f A n s e S a b l o n i n t h e S t r a i g h t o f B e l l e I s l e w a s r e a s s i g n e d t o L o w e r C a n a d a , a n d t h e s e c t i o n t o t h e n o r t h r e m a i n e d u n d e r t h e a d m i n i s t r a t i o n o f N e w f o u n d l a n d . T h i s s e t t l e d t h e i s s u e o f j u r i s d i c t i o n o f t h e c o a s t b u t o w n e r s h i p o f t h e i n t e r i o r r e m a i n e d u n r e s o l v e d a n d t h e r e w a s l i t t l e e f f o r t t o s e t t l e t h e m a t t e r u n t i l i n t e r e s t i n t h e e c o n o m i c p o t e n t i a l o f t h e a r e a d e v e l o p e d a t t h e t u r n o f t h e c e n t u r y . I n 1902 t h e G r a n d R i v e r P u l p a n d L u m b e r Company w a s a t t e m p t i n g t o d e v e l o p some l i c e n s e 120 a r e a s . i t h a d a t t h e w e s t e r n e n d o f L a k e M e l v i l l e . The company f o u n d i t s e l f c a u g h t b e t w e e n c o n f l i c t i n g c l a i m s o f N e w f o u n d l a n d a n d Quebec s i n c e t h e g o v e r n m e n t s o f b o t h c l a i m e d j u r i s d i c t i o n o v e r t h e L a k e M e l v i l l e a r e a . The company d e c i d e d t o d e a l w i t h t h e N e w f o u n d l a n d G o v e r n m e n t a n d l e f t N e w f o u n d l a n d a n d C a n a d a t o s e t t l e t h e d i s p u t e . The G o v e r n m e n t o f Q u e b e c a s k e d t h e D o m i n i o n G o v e r n m e n t t o a r r a n g e f o r t h e s u b m i s s i o n o f t h e b o u n d a r y q u e s t i o n t o t h e J u d i c i a l C o m m i t t e e o f t h e P r i v y C o u n c i l . The N e w f o u n d l a n d G o v e r n m e n t a g r e e d t o t h i s p r o p o s i t i o n i n 1 9 0 7 , b u t b e c a u s e o f i n t e r r u p t i o n s due t o W o r l d War I, a g r e e m e n t on t e r m s o f r e f e r e n c e w a s n o t r e a c h e d u n t i l 1 9 2 0 . I n 1 9 2 6 , t h e d i s p u t e was f i n a l l y s u b m i t t e d t o t h e P r i v y C o u n c i l a n d on M a r c h 1 , 1927 N e w f o u n d l a n d was a w a r d e d j u r i s d i c t i o n o f t h e 1 1 1 , 7 5 0 s q u a r e m i l e s w h i c h p r e s e n t l y c o n s t i t u t e N e w f o u n d l a n d L a b r a d o r . The e f f e c t o f t h e b o u n d a r y d i s p u t e on d e v e l o p m e n t o f l i c e n s e a r e a s w a s s e v e r e . W h i l e j u r i s d i c t i o n o f t h e t e r r i t o r y r e m a i n e d u n c l e a r l i c e n s e h o l d e r s c o u l d n o t e s t a b l i s h c l e a r t i t l e a n d f o u n d i t v e r y d i f f i c u l t t o i n t e r e s t c a p i t a l i n d e v e l o p m e n t p r o j e c t s . T h e p r o b l e m s f a c e d b y t h e H a m i l t o n P u l p a n d L u m b e r Company L i m i t e d s e r v e t o i l l u s t r a t e t h e p r o b l e m : The Company on t w o o c c a s i o n s , w i t h i n t h e p a s t t w e l v e m o n t h s , h a d m o s t a d v a n t a g e o u s l y p l a c e d t h e i r t i m b e r p r o p e r t y i n t h e h a n d s o f E n g l i s h C a p i t a l i s t s , b u t when t h e q u e s t i o n o f t i t l e a r o s e , o w i n g t o t h e c l a i m s e t u p b y t h e Quebec G o v e r n m e n t , p r e s u m a b l y u n d e r t h e A c t p a s s e d b y t h e Quebec L e g i s l a t u r e i n 1&9#, a p p r o p r i a t -121 i n g a l l t h e S o u t h e r n s i d e o f H a m i l t o n I n l e t , u n t i l i t m e e t s w i t h t h e b o u n d a r y o f t h e t e r r i t o r y o f N e w f o u n d l a n d , a n d t h e f a c t t h a t o u r G o v e r n m e n t , u p t o t h e p r e s e n t t i m e , h a s n o t h a d t h e C o l o n y ' s b o u n d a r y d e f i n e d , t h e p a r t i e s whom t h e Company w a s n e g o t i a t i n g w i t h r e f u s e d t o f i n a l i z e t h e p u r c h a s e b e c a u s e o f t h e u n c e r t a i n t y o f t h e C o m p a n y ' s t i t l e . The D i r e c t o r s w i s h t o p o i n t o u t t o t h e G o v e r n m e n t t h a t s i n c e t h e i r a c q u i s i t i o n o f t h i s p r o p e r t y t h e y h a v e p a i d i n t o t h e C r o w n L a n d s D e p a r t m e n t s o m e t h i n g l i k e $50,000 i n r e n t s , a n d f o r p l a n s , l i c e n s e s , s u r v e y s and o t h e r e x p e n s e s , s o m e t h i n g i n t h e n e i g h b o u r h o o d o f $10 ,000 , b e i n g a t o t a l o u t l a y o f $60 ,000 . O w i n g t o t h e u n c e r -t a i n t y s u r r o u n d i n g t h e t i t l e t o t h i s p r o p e r t y g i v e n b y t h e G o v e r n m e n t , t h e D i r e c t o r s f i n d t h e m s e l v e s i n a v e r y d i f f i c u l t p o s i t i o n . P o s s e s s e d o f p r o p e r t y w h i c h , when a c q u i r e d f r o m t h e C r o w n , t h e r e w a s n o r e a s o n t o d o u b t t h e b o n a f i d e s o f t h e t i t l e , b u t now, i n t h e i r n e g o t i a t i o n s f o r t h e d i s p o s a l o f s ame , t h e y f i n d t h e m s e l v e s c o n f r o n t e d w i t h t h e c l a i m o f o w n e r s h i p s e t up b y t h e Quebec G o v e r n m e n t , a n d r e c e n t l y a c c e n t u a t e d b y t h e D o m i n i o n P a r l i a m e n t . T h i s p o s i t i o n w o u l d n o t be s o e m b a r r a s s i n g i f i t w e r e n o t f o r t h e f a c t t h a t t h e C r own r e n t s a r e c o n t i n u a l l y a c c r u i n g , a n d w i t h i n t h e n e x t t w o w e e k s a demand w i l l b e made u p o n t h e Company f o r t h e p a y m e n t o f t h e f u r t h e r sum o f $11,600 r e n t ( R e i d , 1 9 1 2 ) . The company w e n t on t o r e q u e s t t h a t t h e G o v e r n m e n t i n s t r u c t t h e C r o w n L a n d s D e p a r t m e n t n o t t o e n f o r c e t h e c o l l e c t i o n o f t h e y e a r l y r e n t u n t i l t h e b o u n d a r y d i s p u t e w a s s e t t l e d . The C o l o n i a l S e c r e t a r y r e p l i e d , h o w e v e r , t h a t G o v e r n m e n t c o u l d n o t w a i v e c o l l e c t i o n o f t h e r e n t ( C o l o n i a l S e c r e t a r y , 1 9 1 2 ) . T h e b o u n d a r y d i s p u t e f r u s t r a t e d t h e p l a n s o f d e v e l o p e r s a s w e l l a s s p e c u l a t o r s . The L o n d o n a n d L a b r a d o r C o r p o r a t i o n a t t r i b u t e d d i f f i c u l t i e s i n d e v e l o p i n g a 512 s q u a r e - m i l e l i c e n s e i n t h e w e s t e r n e n d o f L a k e M e l v i l l e p a r t l y t o " g r a v e q u e s t i o n s o f t i t l e " ( G r e g g , 1929 ) , a n d T h e L a b r a d o r P u l p a n d L u m b e r Company w h i c h h e l d 2 , 0 0 8 s q u a r e O 122 m i l e s a t S a n d w i c h B a y a n d 150 s q u a r e m i l e s i n t h e L a k e M e l v i l l e a r e a a l s o c i t e d t h e b o u n d a r y d i s p u t e a s a n o b s t a c l e t o i t s d e v e l o p m e n t p l a n s ( S m i t h , 1 9 3 0 ) . One company r e c o u n t e d t h e f o l l o w i n g : I n 1927 B a i n e , J o h n s t o n managed t o i n t e r e s t a c ompany i n "London h e a d e d b y S i r J ames C a l d e r , who was a l e a d i n g L o n d o n f i n a n c i e r , a n d n e g o t i a t i o n s p r o g r e s s e d t o a p o i n t w h e r e a l l t h e n e c e s s a r y m a c h i n e r y t o s t a r t a m i l l w a s a c t u a l l y s h i p p e d t o S t . J o h n ' s , b u t b e c a u s e o f t h e L a b r a d o r B o u n d a r y d i s p u t e t h e m a c h i n e r y l a y a t t h e F u r n e s s , W i t h y & C o . p r e m i s e s f o r a l o n g t i m e , a n d b e c a u s e o f t h e c o m p a n y ' s f e a r s t h a t L a b r a d o r m i g h t h a v e b e e n a w a r d e d t o Q u e b e c , t h e y d r o p p e d t h e s u b j e c t a n d h a d t h e m a c h i n e r y r e t u r n e d t o E n g l a n d ( C o o k , 1 9 5 3 ) . W o r l d W a r s I a n d I I The b u l k o f t h e l i c e n s e s f o r L a b r a d o r w e r e i s s u e d i n t h e y e a r s i m m e d i a t e l y p r e c e d i n g t h e o u t b r e a k o f W o r l d War I. The w a r c a u s e d d i f f i c u l t i e s f o r t h e G r a n d F a l l s m i l l o n t h e I s l a n d ( L a w r e n c e , 1937) a n d w a s o f t e n g i v e n a s a r e a s o n f o r p o s t p o n e m e n t o f p l a n n e d p r o j e c t s . The w a r a f f e c t e d n o t o n l y t h e c a p i t a l m a r k e t s b u t a l s o made i t i m p o s s i b l e f o r some o p e r a t o r s t o g e t s h i p p i n g t o g e t e x p o r t s t o m a r k e t s (Ho rwood P a p e r s , 1 9 2 7 ) . The w a r t h u s made i t p r a c t i c a l l y i m p o s s i b l e f o r h o l d e r s o f l i c e n s e s i s s u e d j u s t • p r i o r t o 1914 t o f u l f i l l t h e i r c o m m i t m e n t s t o e r e c t s a w m i l l s o r p u l p a n d p a p e r m i l l s w i t h i n t h e r e q u i r e d t i m e p e r i o d s . The L o n d o n L a b r a d o r C o r p o r a t i o n , w h i c h a p p e a r e d t o be m a k i n g s i n c e r e e f f o r t s t o d e v e l o p a 512 s q u a r e - m i l e l i c e n s e a r e a i n L a k e M e l v i l l e , a r g u e d t h a t t h e a d v e r s e e f f e c t s o f t h e w a r l i n g e r e d l o n g a f t e r t h e a c t u a l c o n f l i c t wa s o v e r a n d made 123 d e v e l o p m e n t p r o j e c t s i n L a b r a d o r d i f f i c u l t w e l l i n t o t h e 1 9 2 0 ' s ( G r e g g , 1 9 2 9 ) . S h o r t a g e o f s h i p p i n g w a s a l s o a s e r i o u s p r o b l e m d u r i n g W o r l d War I I ( M a c K a y , 1946) a n d t h i s may h a v e b e e n a f a c t o r i n t h e c e s s a t i o n o f o p e r a t i o n s o f t h e L a b r a d o r D e v e l o p m e n t Company a t P o r t Hope S i m p s o n . L i t i g a t i o n a n d t h e W o r l d D e p r e s s i o n o f t h e 1 9 3 0 ' s A f t e r t h e P r i v y C o u n c i l d e c i s i o n o n t h e L a b r a d o r B o u n d a r y t h e G o v e r n m e n t d e c i d e d : . . . i n a s m u c h a s i t m i g h t r e a s o n a b l y b e a r g u e d on t h e p a r t o f t h e l i c e n s e e s t h a t t h e u n c e r t a i n c o n d i t i o n o f t h e t i t l e t o L a b r a d o r r e n d e r e d i t d i f f i c u l t f o r t h e m t o c a r r y o u t t h i s c o n d i t i o n ( t o e r e c t a m i l l ) i n t h e i r L i c e n s e s , t h e G o v e r n m e n t w o u l d r e f r a i n f o r t w o y e a r s f r o m t a k i n g m e a s u r e s f o r t h e c a n c e l l a t i o n o f t h e i r l i c e n s e s on t h e g r o u n d o f n o n p e r f o r m a n c e o f t h i s c o n d i t i o n (Downey , 1 9 2 8 ) . None o f t h e l i c e n s e h o l d e r s w e r e a b l e t o c o m p l y w i t h t h i s c o n d i t i o n a n d G o v e r n m e n t t h e n i n d i c a t e d i t s i n t e n t i o n t o e n f o r c e f o r f e i t u r e f o r n o n c o m p l i a n c e w i t h t h e t e r m s o f t h e l i c e n s e s b y r e f u s i n g t o a c c e p t r e n t p a y m e n t s ( w h i c h w e r e p a y a b l e i n a d v a n c e e a c h y e a r o n N o v e m b e r 3 0 t h ) e x c e p t t h o s e w h i c h w o u l d a l l o w l i c e n s e s t o c o n t i n u e i n e f f e c t u n t i l M a r c h 2 9 t h , 1929 (Downey, 1 9 2 8 ) . L i c e n s e h o l d e r s p r o t e s t e d t h i s a c t i o n a s b e i n g u n r e a s o n a b l e b u t i n 1930 t h e G o v e r n m e n t p r o c e e d e d w i t h a t e s t c a s e i n t h e N e w f o u n d l a n d Sup reme C o u r t f o r f o r f e i t u r e o f a l i c e n s e f o r 1,000 s q u a r e m i l e s o r i g i n a l l y i s s u e d t o G . T . J a r d i n e i n 1915 ( H o r w o o d , K e n t a n d H i g g i n s , 1 9 3 0 ) . The c o u r t d e c l a r e d 124 t h e l i c e n s e p r o p e r l y f o r f e i t e d b u t t h e l i c e n s e e s a p p e a l e d t o t h e P r i v y C o u n c i l a n d t h e d e c i s i o n -was r e v e r s e d i n 1932 ( R u s s e l l e t a l . , 1 9 3 2 ) . The e f f e c t o f t h e G o v e r n m e n t d e c i s i o n t o d e c l a r e t h e l i c e n s e s f o r f e i t e d a s o f M a r c h , 1929 wa s t o r u l e o u t a n y p o s s i b l e d e v e l o p m e n t o f l i c e n s e a r e a s u n t i l 1 9 3 2 , when t h e w o r l d d e p r e s s i o n made p o s s i b i l i t y o f l a r g e - s c a l e d e v e l o p m e n t e x t r e m e l y r e m o t e . I n c o n s i s t e n t G o v e r n m e n t P o l i c y D u r i n g t h e y e a r s o f t h e B o n d A d m i n i s t r a t i o n ( 1 9 0 1 - 08 ) s p e c u l a t i o n t e n d e d t o be d i s c o u r a g e d w i t h o u t d e t r i m e n t t o g e n u i n e d e v e l o p e r s ( t h e G r a n d F a l l s a n d B i s h o p ' s F a l l s m i l l s w e r e b o t h s t a r t e d d u r i n g t h i s p e r i o d ) , b y G o v e r n m e n t i n s i s t e n c e on t h e e x e c u t i o n b y l i c e n s e e s o f t h e p e r f o r m a n c e c l a u s e s u n d e r w h i c h l i c e n s e s w e r e i s s u e d . D u r i n g t h e M o r r i s A d m i n i s t r a t i o n , f r o m 1909 t o 1 9 1 8 , s p e c u l a t i o n w a s e n c o u r a g e d b y r e l a x i n g t h e r e q u i r e m e n t s f o r s u r v e y s t o b e ' c a r r i e d o u t a n d b y i g n o r i n g t h e f a c t t h a t l i c e n s e e s w e r e n o t e r e c t i n g a n d o p e r a t i n g s a w m i l l s o r p u l p m i l l s a s r e q u i r e d . T h i s wa s a n i n f o r m a l p o l i c y w h i c h t e n d e d t o w o r k a g a i n s t t h e e f f o r t s o f d e v e l o p e r s who w e r e t r y i n g t o o p e r a t e w i t h i n t h e r e q u i r e m e n t s o f t h e C rown L a n d s A c t . When t h e L o n d o n L a b r a d o r C o r p o r a t i o n t r i e d t o r a i s e c a p i t a l t o d e v e l o p i t s t i m b e r l i c e n s e i n L a b r a d o r 125 i n 1921, i t f o u n d t h a t i n v e s t o r s w o u l d n o t c o n s i d e r t h e p r o p o s i t i o n u n l e s s t h e C o r p o r a t i o n o b t a i n e d a f o r m a l c o m m i t m e n t f r o m G o v e r n m e n t t h a t t h e f a i l u r e o f t h e l i c e n s e e t o e r e c t a m i l l w i t h i n t h e r e q u i r e d t i m e i n n o way a f f e c t e d t h e t i t l e t o t h e l i c e n s e ( M o r r i s , 1921). M o r r i s ^ i n d i c a t e d t h a t t h e G o v e r n m e n t h a d g i v e n s u c h u n d e r t a k i n g s i n t h e p a s t b u t a p p a r e n t l y t h e S q u i r e s A d m i n i s t r a t i o n (1919-1923), w h i c h w a s t h e n i n p o w e r ( N o e l , 1971), d i d n o t u n d e r t a k e t o do t h i s f o r t h e L o n d o n L a b r a d o r C o r p o r a t i o n . The c o r p o r a t i o n w a s t h u s h i n d e r e d i n d e v e l o p i n g i t s l i c e n s e s b y t h e a m b i g u o u s p o l i c i e s o f t h e N e w f o u n d l a n d G o v e r n m e n t . A c c o r d i n g t o t h e C rown L a n d s A c t i t s l i c e n s e s c o u l d b e c o n s i d e r e d i n v a l i d b u t t h e r e l e v a n t p r o v i s i o n s h a d n o t b e e n e n f o r c e d f o r t h e h u n d r e d s o f l i c e n s e s t h a t h a d p r e v i o u s l y b e e n i s s u e d . N e v e r t h e l e s s p o t e n t i a l i n v e s t o r s i n o t h e r c o u n t r i e s , u n f a m i l i a r w i t h t h e l o c a l s i t u a t i o n , s t i l l r e q u i r e d a s s u r a n c e s f r o m t h e G o v e r n m e n t t h a t t h e l i c e n s e s w e r e v a l i d . The G o v e r n m e n t f a i l e d t o p r o v i d e t h i s a s s u r a n c e , s o i t w a s n o t s u r p r i s i n g t h a t t h e c o r p o r a t i o n d i d n o t p r o c e e d w i t h i t s d e v e l o p m e n t p l a n s . The S q u i r e s A d m i n i s t r a t i o n , w h i c h f o l l o w e d t h e M o r r i s A d m i n i s t r a t i o n , a p p e a r s t o h a v e h a d l i t t l e i n t e r e s t o r t i m e t o d e v o t e t o f o r e s t i n d u s t r i a l d e v e l o p m e n t i n L a b r a d o r . The p r o b l e m o f t h e L o n d o n L a b r a d o r C o r p o r a t i o n ^ L o r d M o r r i s , t h e f o r m e r P r i m e M i n i s t e r , w a s t h e n l i v i n g i n E n g l a n d a n d w a s w r i t i n g t o t h e G o v e r n m e n t on b e h a l f o f t h e C o r p o r a t i o n . 126 was b r o u g h t t o t h e a t t e n t i o n o f t h e P r i m e M i n i s t e r a n u m b e r o f t i m e s , o v e r a p e r i o d o f o v e r 20 m o n t h s ( M o r r i s , 1921 a n d W a r r e n , 1922) i n 1921 a n d 1922, a p p a r e n t l y w i t h o u t a d e c i s i o n b e i n g made on t h e m a t t e r . The i n d i f f e r e n c e o f t h e f i r s t S q u i r e s A d m i n i s t r a -t i o n w a s f o l l o w e d b y a f u r t h e r c h a n g e o f p o l i c y d u r i n g t h e M o n r o e A d m i n i s t r a t i o n ( 1924 -1928 ) . A h a r d e n i n g o f G o v e r n -m e n t a t t i t u d e w a s i n d i c a t e d t o w a r d s l i c e n s e e s who w e r e d e l i n q u e n t i n r e n t p a y m e n t s b y a M i n u t e o f C o u n c i l o f J u n e 2, 1925: C o m m i t t e e h a d u n d e r c o n s i d e r a t i o n l e t t e r u n d e r d a t e 2 8 t h May f r o m t h e M i n i s t e r o f A g r i c u l t u r e a n d M i n e s on t h e s u b j e c t o f a r r e a r s i n r e s p e c t o f t i m b e r l i c e n s e s o n L a b r a d o r , a n d i t w a s o r d e r e d t h a t t h e M i n i s t e r o f A g r i c u l t u r e a n d M i n e s be i n s t r u c t e d t o n o t i f y a l l s u c h l i c e n s e e s o f t h e c a n c e l l a t i o n o f t h e i r l i c e n s e s ( M i n u t e o f C o u n c i l , 1 9 2 5 ) . The M o n r o e A d m i n i s t r a t i o n a l s o made t h e d e c i s i o n , a l r e a d y m e n t i o n e d , t o g i v e h o l d e r s o f l i c e n s e s t o L a b r a d o r t i m b e r t w o y e a r s , f r o m t h e d e c i s i o n o f t h e P r i v y C o u n c i l o f M a r c h 1, 1927, i n w h i c h t o c o m p l y w i t h t h e p e r f o r m a n c e r e q u i r e m e n t o f t h e i r l i c e n s e s c o n c e r n i n g t h e e r e c t i o n o f s a w m i l l s o r p u l p m i l l s . The s e c o n d S q u i r e s A d m i n i s t r a t i o n (1928-1932) c o n t i n u e d t h i s p o l i c y , r e f u s i n g t o a c c e p t f u r t h e r r e n t a n d a d v i s i n g l i c e n s e h o l d e r s t h a t , a s f a r a s t h e G o v e r n m e n t w a s c o n c e r n e d , t h e l i c e n s e s w e r e i n d e f a u l t ( C o l o n i a l S e c r e t a r y , 1 9 2 9 ) . A s a l r e a d y i n d i c a t e d , t h e 1930 d e c i s i o n b y t h e Sup reme C o u r t , w h i c h s u p p o r t e d t h e G o v e r n m e n t ' s c o n t e n t i o n 127 t h a t t h e L a b r a d o r l i c e n s e s w e r e i n d e f a u l t , w a s r e v e r s e d b y t h e P r i v y C o u n c i l d e c i s i o n o f 1932, w h i c h s t a t e d i n p a r t : . . . t h e c o n d i t i o n s e t o u t a s t o t h e e r e c t i o n o f a m i l l o r f a c t o r y h a d b e e n b r o k e n o n c e a n d f o r a l l i n 1 9 2 0 , a n d f o r f e i t u r e o n t h a t a c c o u n t h a d b e e n w a i v e d b y t h e a c c e p t a n c e o f r e n t i n 1 9 2 8 , a n d t h e r e h a d n o t b e e n a n y l a t e r b r e a c h o f a c o n d i t i o n f o r w h i c h t h e r e w a s a r i g h t o f f o r f e i t u r e . . . ( R u s s e l l e t a l . , 1932). I n d i s c u s s i n g t h e c a s e , t h e P r i v y C o u n c i l w a s c r i t i c a l o f t h e G o v e r n m e n t : A l t h o u g h t h e t i m e f o r t h e e r e c t i o n o f t h e s a w m i l l a s r e q u i r e d b y t h e l i c e n s e r a n o u t on M a r c h 1 2 , 1 9 1 8 , a n d t h e t i m e f o r t h e e r e c t i o n o f t h e a l t e r n a t i v e f a c t o r y r a n o u t on M a r c h 1 2 , 1 9 2 0 , t h e r e p r e s e n t a -t i v e s o f t h e C rown made n o c o m p l a i n t . T h e y d i d n o t s e e k t o h a v e f r e s h d a t e s s u b s t i t u t e d b y a g r e e m e n t . N e i t h e r d i d t h e y c l a i m t h a t t h e l i c e n s e wa s a t a n e n d . On t h e c o n t r a r y , t h e y c o n t i n u e d t o a c c e p t w i t h o u t demur p a y m e n t o f t h e a n n u a l r e n t o f 2 0 0 0 d o l l a r s u p t o a n d i n c l u d i n g a p a y m e n t made on May 2 5 , 1 9 2 8 , w h i c h c l e a r e d t h e r e n t u n d e r t h e l i c e n s e up t o N o v e m b e r 30, 1 9 2 8 . T h i s p a y m e n t b r o u g h t t h e t o t a l amoun t r e c e i v e d b y t h e C r o w n i n r e s p e c t o f b o n u s a n d r e n t u n d e r t h e l i c e n s e t o a sum i n t h e n e i g h b o u r h o o d o f 30,000 d o l l a r s ( R u s s e l l e t a l . , 1 9 3 2 ) . D u r i n g t h e p e r i o d 1934-1949, when N e w f o u n d l a n d w a s g o v e r n e d b y a C o m m i s s i o n , n o f u r t h e r move s w e r e made t o d e c l a r e L a b r a d o r l i c e n s e s f o r f e i t e d f o r a n y c o n d i t i o n s o t h e r t h a n n o n p a y m e n t o f r e n t . A s a l r e a d y m e n t i o n e d , i n 1 9 5 1 t h e S m a l l w o o d A d m i n i s t r a t i o n p a s s e d t h e T i m b e r L i c e n s e s ( R e v e r s i o n t o C r o w n ) A c t w h i c h r e s u l t e d i n t h e c a n c e l l a t i o n o f a l l l i c e n s e s s t i l l i n e f f e c t i n 1 9 5 2 . 128 P o s t - C o n f e d e r a t i o n Deve 1 opm en t_s A f t e r C o n f e d e r a t i o n i n 194-9, t h e S m a l l w o o d A d m i n i s t r a t i o n a d o p t e d a p o l i c y o f g r a n t i n g r e l a t i v e l y s h o r t - t e r m o p t i o n s o r a g r e e m e n t s t o l a r g e s e c t i o n s o f L a b r a d o r d u r i n g w h i c h t i m e t h e p r o s p e c t i v e l i c e n s e e h a d t h e e x c l u s i v e r i g h t t o s u r v e y a n d i d e n t i f y d e f i n i t e a r e a s f o r l i c e n s i n g a n d d e v e l o p m e n t . I n m o s t c a s e s t h e l i c e n s e t o be i s s u e d wa s f o r 99 y e a r s . V a r i o u s r e n t a l a n d s t u m p a g e r a t e s w e r e s p e c i f i e d , d e p e n d i n g u p o n t h e k i n d o f t i m b e r t o be c u t a n d i t s u l t i m a t e u s e a n d d e s t i n a t i o n . T h e s e a g r e e -m e n t s a r e s u m m a r i z e d b e l o w . S i e g h e i m L e a s e I n 1951 t h e G o v e r n m e n t a g r e e d t o i s s u e a l e a s e f o r 10 y e a r s t o 1,405 s q u a r e m i l e s a t t h e w e s t e r n end o f L a k e M e l v i l l e t o a D r . A . S i e g h e i m o f G e r m a n y ( N e w f o u n d l a n d , 1 951a ) . The a g r e e m e n t a u t h o r i z e d t h e e x p o r t o f 170,000 c u n i t s p e r y e a r a t a r o y a l t y c h a r g e o f $4.25 p e r c u n i t . No w o r k wa s done a n d t h e a g r e e m e n t wa s c a n c e l l e d i n 1953 ( K e n n e d y , 1 9 5 5 ) . The N e w f o u n d l a n d a n ) I n a g r e e m e n t s i n 1951 a n d 1953 t h e G o v e r n m e n t g r a n t e d t h e c o r p o r a t i o n t h e e x c l u s i v e r i g h t f o r 5 y e a r s t o s u r v e y a n d t o e x p l o r e 10,000 s q u a r e m i l e s i n t h e L a k e M e l v i l l e a r e a a n d 1,500 s q u a r e m i l e s i n W e s t e r n L a b r a d o r ( N e w f o u n d l a n d , 1951b a n d 1 9 5 3 ) . A t t h e e n d o f t h e 5 - y e a r 129 t e r m (195$) t h e C o r p o r a t i o n was s u p p o s e d t o h a v e s e l e c t e d a 5,000 s q u a r e - m i l e a r e a . I t wa s t h e n g i v e n u n t i l 1972 t o f u r t h e r e x p l o r e a n d d e v e l o p t h e r e d u c e d a r e a . On a p p l i -c a t i o n d u r i n g t h e e x p l o r a t i o n p e r i o d , t h e G o v e r n m e n t a g r e e d t o i s s u e a 9 9 - y e a r t i m b e r l i c e n s e a t $2 .00 p e r s q u a r e m i l e r e n t a l . R o y a l t y c h a r g e was t o be $1.77 p e r c u n i t on wood e x p o r t e d w i t h no r o y a l t y p a y a b l e on wood p r o c e s s e d w i t h i n t h e p r o v i n c e . No l i c e n s e wa s i s s u e d . The c o n c e s s i o n a r e a o f t h e company i s shown i n F i g u r e 7 . Ihe_ B r i t i s h _ I i e w f o I n 1953, t h e G o v e r n m e n t g r a n t e d t h e B r i t i s h N e w -f o u n d l a n d C o r p o r a t i o n a 2 0 - y e a r o p t i o n ( s e e F i g u r e 7) on t h e f o r m e r S e i g h e i m a r e a ( N e w f o u n d l a n d , 1 953a ) . D u r i n g t h e o p t i o n p e r i o d t h e C o r p o r a t i o n h a d t h e r i g h t t o o b t a i n a 9 9 -y e a r t i m b e r l i c e n s e a t a y e a r l y r e n t o f $2 .00 p e r s q u a r e m i l e a n d a r o y a l t y c h a r g e o f $ 1 . 1 8 p e r c u n i t o n e x p o r t w o o d . No l i c e n s e wa s i s s u e d . I n t e r n a t i o n a l F o r e s t P r o d u c t s I n 1953, "the G o v e r n m e n t g r a n t e d a 3 - y e a r o p t i o n t o I n t e r n a t i o n a l F o r e s t P r o d u c t s L i m i t e d t o s u r v e y t h e w a t e r -s h e d s o f t h e E a g l e , P a r a d i s e , W h i t e B e a r a n d G i l b e r t R i v e r s on t h e s o u t h L a b r a d o r C o a s t ( N e w f o u n d l a n d , 1953b ) . D u r i n g t h e o p t i o n p e r i o d t h e company h a d t h e r i g h t t o s e l e c t a n y a r e a s i t w a n t e d f r o m w i t h i n t h e o p t i o n a r e a a n d t o o b t a i n a 4 0 - y e a r l e a s e . The s t a t e d i n t e n t i o n o f t h e company wa s 131 t o s e t up a c o m b i n e d l u m b e r a n d p u l p w o o d o p e r a t i o n . R o y a l t y c h a r g e s w e r e s e t a t $ 3 - 5 4 p e r c u n i t f o r e x p o r t p u l p w o o d a n d $ 2 . 3 6 p e r c u n i t f o r wood p r o c e s s e d w i t h i n t h e p r o v i n c e i n e x i s t i n g m i l l s b u t no c h a r g e f o r p u l p w o o d p r o c e s s e d i n a new m i l l . R o y a l t i e s on l u m b e r p r o d u c e d w e r e t o v a r y f r o m $ 1 . 5 0 p e r M f b m t o $ 2 . 5 0 p e r M f b m d e p e n d i n g on m i l l o u t p u t . No l e a s e was i s s u e d . N e w f o u n d l a n d P u l p a n d C h e m i c a l Company I n I 9 6 0 , a s p a r t o f i t s e f f o r t s t o d e v e l o p a t h i r d p u l p a n d p a p e r m i l l on t h e I s l a n d , t h e S m a l l w o o d A d m i n i s t r a t i o n a g r e e d t o g r a n t a 1 2 - y e a r e x p l o r a t i o n l e a s e t o t h e N e w f o u n d l a n d P u l p a n d C h e m i c a l Company i f t h e company a g r e e d t o e s t a b l i s h a m i l l on t h e I s l a n d ( N e w f o u n d l a n d , I 9 6 0 ) . The e x p l o r a t i o n l e a s e c o v e r e d p r a c t i c a l l y a l l t h e t i m b e r on t h e w a t e r s h e d s o f a l l r i v e r s f l o w i n g i n t o t h e A t l a n t i c O c e a n b e t w e e n t h e Quebec b o u n d a r y t o K a i p o k o k B a y ( s e e F i g u r e 7 ) - The l e a s e was t o be f o r 99 y e a r s , r e n e w a b l e on s i m i l a r t e r m s a n d c o n d i t i o n s f o r a f u r t h e r 99 y e a r s . • The e x p l o r a t i o n l e a s e e x p i r e d i n 1 9 7 2 . B o w a t e r N e w f o u n d l a n d L i m i t e d I n 1 9 5 3 , t h i s c o m p a n y , t h r o u g h a l o c a l c o n t r a c t o r , e x p o r t e d 1 , 2 0 0 c u n i t s o f p u l p w o o d f r o m P o r t Hope S i m p s o n ( F i g u r e 1) on t h e e a s t c o a s t o f L a b r a d o r ( K e n n e d y , 1 9 5 5 ) . I n I 9 6 2 t h e G o v e r n m e n t e n t e r e d i n t o a n a g r e e m e n t w i t h B o w a t e r f o r t h e i n i t i a t i o n o f p u l p w o o d l o g g i n g o p e r a t i o n s 132 on t h e A l e x i s R i v e r ( N e w f o u n d l a n d , 1 9 6 2 ) . The w a t e r s h e d o f t h e r i v e r w a s e x e m p t e d f r o m t h e p r o v i s i o n s o f t h e a g r e e m e n t w i t h N e w f o u n d l a n d P u l p a n d C h e m i c a l Company a n d B o w a t e r w a s t o g e t a 9 9 - y e a r l e a s e . R o y a l t y wa s t o b e e i g h t y - n i n e c e n t s a c u n i t on e x p o r t p u l p w o o d a n d f i f t y - n i n e c e n t s f o r w o o d p r o c e s s e d w i t h i n t h e p r o v i n c e . T h e company c o n d u c t e d a l o g g i n g o p e r a t i o n f o r a n u m b e r o f y e a r s b u t wa s f o r c e d t o c l o s e b e c a u s e o f d i f f i c u l t l o g g i n g c o n d i t i o n s a n d h i g h c o s t s . The l i c e n s e wa s n o t i s s u e d . I n 1954 t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company , t h r o u g h a l o c a l c o n t r a c t o r , c u t 1 , 0 5 6 c u n i t s o f p u l p w o o d a t S t . M i c h a e l ' s B a y on t h e L a b r a d o r c o a s t ( K e n n e d y , 1 9 5 5 ) . T h i s wood w a s c u t u n d e r s h o r t - t e r m p e r m i t a n d t h e o p e r a t i o n was n o t c o n t i n u e d . I n I 9 6 9 l a r g e - s c a l e l o g g i n g o p e r a t i o n s w e r e i n i t i a t e d i n t h e G o o s e B a y a r e a t o s u p p l y up t o 5 1 0 , 0 0 0 c u n i t s p e r y e a r t o t h e l i n e r b o a r d m i l l a t S t e p h e n v i l l e . T h i s o u t p u t wa s n e v e r a c h i e v e d b u t up t o 1 5 0 , 0 0 0 c u n i t s w e r e c u t a n n u a l l y u n d e r s h o r t - t e r m p e r m i t u n t i l 1976 when t h e o p e r a t i o n w a s c l o s e d a s p a r t o f t h e p h a s e o u t o f t h e l i n e r b o a r d m i l l . A s u b s t a n t i a l G o v e r n m e n t p r o g r a m o f a c c e s s r o a d c o n s t r u c t i o n wa s u n d e r t a k e n i n t h e G o o s e B a y a r e a t o a s s i s t t h i s o p e r a t i o n . 133 I n a d d i t i o n t o t h e a b o v e , s m a l l - s c a l e s a w m i l l o p e r a t i o n s h a v e b e e n c a r r i e d on i n v a r i o u s s e t t l e m e n t s t o s u p p l y l o c a l l u m b e r r e q u i r e m e n t s . Summary N e i t h e r t h e l o n g - t e r m l i c e n s e s i s s u e d d u r i n g t h e e a r l y p a r t o f t h e c e n t u r y n o r t h e v a r i o u s o p t i o n - l i c e n s e d e a l s t r i e d b y t h e S m a l l w o o d A d m i n i s t r a t i o n w e r e v e r y s u c c e s s f u l a t e n c o u r a g i n g d e v e l o p m e n t i n L a b r a d o r . T h e r e w e r e a v a r i e t y o f r e a s o n s f o r t h e f a i l u r e o f e a r l y l i c e n s e h o l d e r s t o d e v e l o p t h e i r h o l d i n g s . Some o f t h e s e p r o b l e m s w e r e b e y o n d t h e p o w e r o f a n y l o c a l g o v e r n m e n t a d m i n i s t r a t i o n t o c o r r e c t . H o w e v e r , i t d o e s a p p e a r t h a t on o c c a s i o n , p a r t i c u l a r l y i n t h e l a t e 1 9 2 0 ' s , g o v e r n m e n t a c t i o n h i n d e r e d r a t h e r t h a n e n c o u r a g e d d e v e l o p m e n t . The h i s t o r i c a l r e c o r d i n d i c a t e s t h a t t h e r e h a v e b e e n n u m e r o u s o p p o r t u n i t i e s a n d q u i t e a f e w g e n u i n e a t t e m p t s made t o d e v e l o p t h e f o r e s t r e s o u r c e s o f L a b r a d o r . I n m o s t i n s t a n c e s t h e d e v e l o p e r w a s l e f t on h i s own b u t i n s e v e r a l c a s e s g o v e r n m e n t a s s i s t a n c e w a s p r o v i d e d . U n f o r t -u n a t e l y , n o n e o f t h e s e d e v e l o p m e n t a t t e m p t s h a v e b e e n s u c c e s s f u l t o d a t e . 134 CHAPTER V I I VALUE OF CUTTING R IGHTS ON THE I SLAND The p u r p o s e o f t h i s c h a p t e r i s t o r e v i e w t h e e s t i m a t e s o f h i s t o r i c a l v a l u e o f t i m b e r l i c e n s e s i s s u e d f o r t h e I s l a n d . What i n d i c a t i o n s a r e t h e r e o f s u r p l u s v a l u e o r u n a p p r o p r i a t e d e c o n o m i c r e n t i n t h e t i m b e r on t h e s e l i c e n s e d a r e a s i n e x c e s s o f t h e a n n u a l c o n t r a c t u a l r e n t a l a n d r o y a l t y c h a r g e s l e v i e d b y t h e G o v e r n m e n t ? B e c a u s e o f i n f o r m a t i o n a n d d a t a l i m i t a t i o n s , a n a c c u r a t e e s t i m a t e o f t h e s u r p l u s v a l u e c o u l d n o t be m a d e . D e s p i t e t h i s , some i n f o r m a t i o n on t i m b e r l i c e n s e s a l e s w a s u n c o v e r e d w h i c h p r o v i d e s a r o u g h i n d i c a t i o n o f t h e v a l u e o f c u t t i n g r i g h t s . Some i n f o r m a t i o n was a l s o f o u n d on s t u m p a g e r a t e s b e i n g p a i d d u r i n g t h e 1 9 2 0 ' s a n d some p u b l i s h e d e s t i m a t e s o f v a l u e f o r t h e l i m i t a r e a s o f t h e p u l p a n d p a p e r m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k a r e a l s o p r e s e n t e d . 1-he_ J ^ - T ^ e j _ F ^ r _ T i m b e r _ L i c e n s e s . . . i n a c c o r d a n c e w i t h t h e g e n e r a l p r a c t i c e t h r o u g h o u t t h e w h o l e o f N o r t h A m e r i c a , s p e c u l a t i o n i n t i m b e r l a n d s wa s c a r r i e d on w i t h b o t h z e s t a n d e n t h u s i a s m . I n N e w f o u n d l a n d a l s o , n o t o n l y o u r p r o s p e r o u s b u s i n e s s m e n b u t a l s o d o c t o r s , l a w y e r s a n d a n y c i t i z e n who p o s s i b l y c o u l d , g o t i n t o t h e a c t , u n t i l b y 1910 t h e r e was s c a r c e l y a n a c r e o f t i m b e r h e l d b y t h e C r own e x c e p t t h e t h r e e m i l e l i m i t . . . ( K e n n e d y , 1 9 5 5 ) . 135 T h e r e w a s n o s h o r t a g e o f a p p l i c a n t s f o r l i c e n s e s f o r C rown l a n d t i m b e r a r e a s a n d o n c e i s s u e d , t h e s e l i c e n s e s w e r e b o u g h t a n d s o l d a s s p e c u l a t o r s t r i e d t o make c a p i t a l g a i n s a n d a s g e n u i n e d e v e l o p e r s s o u g h t t o c o n s o l i d a t e e c o n o m i c wood s u p p l y a r e a s f o r p r o p o s e d p r o c e s s i n g p l a n t s . K e n n e d y (1955) l i s t e d 26 t i m b e r l i c e n s e t r a n s a c t i o n s ( r e c o r d e d i n t h e R e g i s t r y o f D e e d s ) made b y H . J . C rowe a s p a r t o f h i s e f f o r t s t o g e t m i l l s e s t a b l i s h e d i n v a r i o u s p a r t s o f t h e c o u n t r y , a n d h e may h a v e made many o t h e r l i c e n s e d e a l s , w h i c h w e r e n e v e r r e g i s t e r e d . A l t h o u g h C rowe came t o N e w f o u n d l a n d a l m o s t p e n n i l e s s i n t h e e a r l y 1 9 0 0 * s , w h e n h e d i e d i n 1928 h e r e p o r t e d l y l e f t a n e s t a t e v a l u e d a t a b o u t $ 8 0 0 , 0 0 0 ( K e n n e d y , 1 9 5 5 ) . C r owe was b u t one o f a g r o u p o f a c t i v e t r a d e r s i n t i m b e r l i c e n s e s . F o r e x a m p l e , r e c o r d s a t t h e R e g i s t r y o f D e e d s show t h a t a C r o w n l a n d s u r v e y o r , W.H . T a y l o r , wa s i n v o l v e d i n a t l e a s t 4-6 t r a n s -a c t i o n s i n v o l v i n g t i m b e r l a n d s i n t h e e a r l y 1 9 0 0 ' s . The b u y i n g a n d s e l l i n g o f t i m b e r l i c e n s e s c r e a t e d a m a r k e t p r i c e f o r t i m b e r c u t t i n g r i g h t s . The p r i c e s p a i d f o r t h e s e l i c e n s e s r e f l e c t e d t h e v a l u e o f t i m b e r r i g h t s a t t h e t i m e , o v e r a n d a b o v e t h e a n n u a l r e n t a l s c h a r g e d b y t h e G o v e r n m e n t . T i m b e r l i c e n s e s a l e s a r e , t h e r e f o r e , o f i n t e r e s t b e c a u s e t h e y p r o v i d e a n i n d i c a t i o n a s t o w h a t t h i s ' s u r p l u s ' v a l u e w a s a t v a r i o u s p o i n t s i n t i m e . I n o r d e r t o d o c u m e n t t i m b e r l i c e n s e s a l e s , a n d t o g e t a n e s t i m a t e o f v a l u e p e r u n i t o f a r e a ( s q u a r e m i l e ) i t 136 •was n e c e s s a r y t o o b t a i n t h e f o l l o w i n g i n f o r m a t i o n on a n y one t r a n s a c t i o n : 1 ) Name o f s e l l e r 2 ) Name o f b u y e r 3 ) D a t e 1+) L o c a t i o n o f l i c e n s e 5 ) C r own L a n d s R e g i s t r y V o l u m e a n d F o l i o Number o f L i c e n s e 6) C o n s i d e r a t i o n o r p u r c h a s e p r i c e 7) A r e a o f l i c e n s e . Once t h e a r e a a n d t h e s e l l i n g p r i c e w e r e k n o w n , a n a v e r a g e v a l u e p e r s q u a r e m i l e c o u l d be a s s i g n e d t o a p a r t i c u l a r l i c e n s e d a r e a a t a p a r t i c u l a r t i m e . T h e r e a r e o f c o u r s e s e r i o u s l i m i t a t i o n s t o t h i s f i g u r e a s a n i n d i c a t o r o f v a l u e . The a r e a f i g u r e i s g r o s s a r e a i n d i c a t e d on t h e l i c e n s e d o c u m e n t a n d n o t p r o d u c t i v e o r m e r c h a n t a b l e f o r e s t a r e a . The p r o p o r t i o n o f m e r c h a n t a b l e f o r e s t t o b a r r e n , b o g , w a t e r a n d n o n m e r c h a n t a b l e f o r e s t v a r i e d w i d e l y f r o m p l a c e t o p l a c e a n d ( b e c a u s e o f c u t t i n g a n d f i r e s ) f r o m t i m e t o t i m e . B e c a u s e o f i n a d e q u a t e i n f o r m a t i o n many b u y e r s a n d s e l l e r s o n l y h a d v e r y v a g u e s e c o n d - h a n d i n f o r m a t i o n on t h e q u a n t i t y a n d t h e q u a l i t y o f t h e t i m b e r on a p a r t i c u l a r l i c e n s e . T h e e x c e p t i o n s t o t h i s a p p e a r t o h a v e b e e n t h e l a r g e r c o m p a n i e s w h i c h e m p l o y e d t h e i r own t i m b e r c r u i s e r s t o a s s e s s l i c e n s e s b e f o r e p u r c h a s e s w e r e m a d e . 137 N o t o n l y i s t h e m e r c h a n t a b l e f o r e s t a r e a o f l i c e n s e s d i f f i c u l t t o d e t e r m i n e a t t h i s s t a g e b u t i n f o r m a t i o n on t i m b e r v o l u m e i s a l s o l a c k i n g . L i c e n s e s •were a c q u i r e d so t h a t t h e d e v e l o p e r c o u l d h a v e a c c e s s t o t h e t i m b e r on t h e m . The r e c o r d s a t t h e R e g i s t r y o f D e e d s do n o t n o r m a l l y g i v e a n y i n d i c a t i o n o f t h e v o l u m e o f t i m b e r i n v o l v e d . The v o l u m e a n d q u a l i t y o f t i m b e r v a r i e d w i d e l y among l i c e n s e s b u t o n l y r a r e l y i s i t p o s s i b l e t o i d e n t i f y a n e s t i m a t e d v o l u m e f i g u r e w i t h t h e p r i c e p a i d f o r a l i c e n s e t o g e t a n e s t i m a t e d v a l u e on a u n i t v o l u m e b a s i s . T h i s i s u n f o r t u n a t e b e c a u s e t h e e s t i m a t e d v o l u m e w o u l d l o g i c a l l y h a v e b e e n t h e m o s t i m p o r t a n t d e t e r m i n a n t o f p r i c e p a i d f o r t i m b e r l i c e n s e s i n a n y a r e a . I n s p i t e o f t h e a b o v e l i m i t a t i o n s , p r i c e s p a i d f o r t i m b e r l i c e n s e s do a l l o w a g e n e r a l e s t i m a t e o f t h e a v e r a g e v a l u e o f t h e s e l i c e n s e s a t v a r i o u s t i m e s . F o r t h e m o s t p a r t t h e s e a r e t h e o n l y i n d i c a t i o n s r e m a i n i n g o f h i s t o r i c a l v a l u e s o f t i m b e r i n N e w f o u n d l a n d . A n u m b e r o f s o u r c e s w e r e u s e d i n a t t e m p t i n g t o c o m p i l e i n f o r m a t i o n on t i m b e r l i c e n s e s a l e s . The p r i m a r y s o u r c e w a s t h e R e g i s t r y o f D e e d s o f t h e D e p a r t m e n t o f F o r e s t r y a n d A g r i c u l t u r e o f t h e N e w f o u n d l a n d G o v e r n m e n t a t t h e C o n f e d e r a t i o n B u i l d i n g i n S t . J o h n ' s . Many o f t h e c o n -v e y a n c e s b y w h i c h c u t t i n g r i g h t s w e r e t r a n s f e r r e d w e r e r e g i s t e r e d a n d i f t h e names o f t h e p r i n c i p a l s a r e known a l o n g w i t h t h e g e n e r a l p e r i o d o f t h e s a l e , i t i s p o s s i b l e 138 to examine a copy of the o r i g i n a l document. In t h i s way, i t i s usually possible to obtain the Crown Lands Volume and F o l i o Number of the li c e n s e , the general location of the license and the number of square miles of timber land involved. Unfortunately the consideration or s e l l i n g price of the license i s not always given. In such cases the trans-action cannot be used as an in d i c a t o r of the value of cutting r i g h t s . A second problem encountered i n assessing the consideration to be assigned to the licensed area was that, i n many cases, timber licenses were traded as part of a package deal which included other items such as fee simple grants of land, sawmills and related buildings, dams, wharves and other improvements. In these cases i t was impossible to c l e a r l y i d e n t i f y the value assigned to the timber and the transaction could not be used as an in d i c a t o r of the value of cutting r i g h t s . The ac q u i s i t i o n by the Anglo-Newfoundland Development Company of the l i m i t s of the Terra Nova Sulphite Company, and the Albert E. Reed Company; and the Bowater ac q u i s i t i o n of the Corner Brook m i l l and the Gander l i m i t s ; were deals of t h i s nature. Secondary sources of information on timber license sales were Government records at the Archives, i n the Crown Lands Registry and certain Government f i l e s which were made available to the w r i t e r through the co-operation of the Department of Forestry and Agriculture. These records were mainly useful i n that they often provided names and 139 d a t e s o f s a l e s , w h i c h c o u l d t h e n be s e a r c h e d a t t h e R e g i s t r y o f D e e d s . S a l e s o f T i m b e r L i c e n s e s I n a l l , t h e s e l l i n g p r i c e a n d a r e a w e r e e s t a b l i s h e d f o r 67 l i c e n s e s a l e s on t h e I s l a n d , w h i c h o c c u r r e d b e t w e e n 1903 a n d 1959. A d e t a i l e d l i s t i n g o f t h e s e s a l e s i s c o n -t a i n e d i n A p p e n d i x 6, a n d t h i s i n f o r m a t i o n i s s u m m a r i z e d b e l o w i n T a b l e X I I . I n F i g u r e 8 a v e r a g e v a l u e s p e r s q u a r e m i l e f o r i n d i v i d u a l s a l e s a r e p l o t t e d o v e r t i m e . T A B L E X I I SUMMARY OF T IMBER L I C E N S E S A L E S , I SLAND T i m e N o . T o t a l a r e a T o t a l A v e r a g e p r i c e p e r i o d s a l e s s o l d a m t . p a i d p e r s q . m i . ( $ ) 1901-10 20 3,323 624,117 1 8 8 1911-20 14 2,776 254,651 92 1921-30 22 3,855 2,109,425 547 1931-40 4 1,224 139,500 114 1941-50 4 171 134,000 784 1951-60 3 289 326,000 1,128 SOURCE: C o m p i l e d b y t h e w r i t e r f r o m i n f o r m a t i o n a t t h e R e g i s t r y o f D e e d s . T h i r t y - f o u r (51 p e r c e n t ) o f t h e 67 s a l e s o c c u r r e d b e f o r e 1921 . The a v e r a g e p r i c e pe r . s q u a r e m i l e p a i d b e t w e e n 1901 a n d 1910 w a s $ 1 8 8 . T h i s d r o p p e d t o $92 d u r i n g t h e 140 Figure 8 -Average Price Per Square Mile Paid In Timber License Sales-Island 3,000 2,500 A £ 2,000 £00 A • - Average for decade A -Government acquisition O - For Corner Brook mill B -For Grond Falls mill A - Other sales NOTE: Average price for decade is plotted over mid point of decade regardless of distribution of sales within the 10-year period. A3 1,000 o jar 500 • A A O - A / o N / ~ A A ' A * Z f AA O 8 o cn —r~ O 0> / / /O A A O if) 01 YEARS 141 p e r i o d f r o m 1 9 1 1 - 1 9 2 0 , p o s s i b l y r e f l e c t i n g t h e d i s r u p t i v e e f f e c t s o f W o r l d War I on f o r e s t - b a s e d d e v e l o p m e n t i n N e w f o u n d l a n d . I f t h e s t a t i s t i c s f o r t h e s e t w o p e r i o d s a r e c o m b i n e d , t h e t o t a l a r e a s o l d b e c o m e s 6 , 0 9 9 s q u a r e m i l e s , t h e t o t a l amoun t p a i d b e c o m e s $ 8 7 8 , 7 6 8 a n d t h e a v e r a g e s e l l i n g p r i c e p e r s q u a r e m i l e b e c o m e s $144-F r o m T a b l e I I I i t c a n be c a l c u l a t e d t h a t b e t w e e n 1901 a n d 1920 a n e t a r e a o f 1 7 , 2 1 4 s q u a r e m i l e s wa s l i c e n s e d on t h e I s l a n d . T h i s r e p r e s e n t e d 86 p e r c e n t o f t h e t o t a l n e t a r e a l i c e n s e d . I f t h e a v e r a g e v a l u e ($144) c a l c u l a t e d f o r t h e 34 d o c u m e n t e d t i m b e r l i c e n s e s i s m u l t i p l i e d b y t h e t o t a l a r e a l i c e n s e d , a v e r y r o u g h i n d i -c a t i o n o f t h e m a r k e t v a l u e o f t h e s e l i c e n s e s , o v e r a n d a b o v e t h e r e n t a l s c h a r g e d , c a n be o b t a i n e d . T h i s a m o u n t s t o $ 2 , 4 7 9 m i l l i o n . B y f a r t h e g r e a t e s t d o l l a r v a l u e o f t r a d i n g i n t i m b e r l i c e n s e s o c c u r r e d d u r i n g t h e 1 9 2 0 ' s . T h e r e w e r e a n u m b e r o f m a j o r d e v e l o p m e n t s u n d e r w a y a t t h i s t i m e i n t h e p u l p a n d p a p e r i n d u s t r y a n d t h e s e a p p e a r t o h a v e h a d a p o s i t i v e e f f e c t on p r i c e s p a i d f o r t i m b e r l i c e n s e s . The R e i d N e w f o u n d l a n d Company , t h r o u g h i t s s u b s i d i a r y M i n e s a n d F o r e s t s L i m i t e d , w a s b u y i n g up l i c e n s e s t o c o n s o l i d a t e a t i m b e r l i m i t f o r i t s p r o p o s e d n e w s p r i n t m i l l on t h e G a n d e r R i v e r . I n s i x p u r c h a s e s made b e t w e e n 1924 a n d 1 9 2 8 , $ 6 5 0 , 4 6 4 wa s p a i d f o r a t o t a l o f 982 s q u a r e m i l e s . The a v e r a g e p r i c e p e r s q u a r e m i l e wa s $ 6 2 2 . 142 The C o r n e r B r o o k d e v e l o p m e n t was a l s o u n d e r w a y d u r i n g t h e 1 9 2 0 " s a n d t h i s a p p e a r s t o h a v e h a d a s t r o n g e r i n f l u e n c e on t i m b e r l i c e n s e v a l u e s t h a n t h e p u r c h a s e s b y M i n e s a n d F o r e s t s . O f t h e 22 d o c u m e n t e d s a l e s o f l i c e n s e s , 9 w e r e p u r c h a s e s made f o r t h e C o r n e r B r o o k m i l l ( s e e A p p e n d i x 6 ) . The t o t a l a r e a i n v o l v e d w a s 1 , 2 7 0 s q u a r e m i l e s a t a c o s t o f $ 1 , 1 6 6 , 5 0 8 , o r $ 9 1 9 p e r s q u a r e m i l e . T h e s e p u r c h a s e s i n c l u d e d a 33 s q u a r e - m i l e a r e a a d j a c e n t t o G r a n d L a k e w h i c h c o s t $ 7 5 , 0 0 0 o r $ 2 , 2 7 3 p e r s q u a r e m i l e , a n d a 21 s q u a r e - m i l e a r e a i n W h i t e B a y w h i c h c o s t $ 3 7 , 2 2 4 o r $ 1 , 7 7 3 p e r s q u a r e m i l e . T h e s e w e r e t h e h i g h e s t a v e r a g e p r i c e s d o c u m e n t e d f o r t i m b e r l i c e n s e s i n N e w f o u n d l a n d . The v a r i a t i o n i n p r i c e s p a i d on a s q u a r e - m i l e b a s i s i s c o n s i d e r a b l e a s i n d i c a t e d b y t h e p l o t t e d v a l u e s i n F i g u r e 8 . A n u m b e r o f f a c t o r s w o u l d l o g i c a l l y be e x p e c t e d t o a c c o u n t f o r t h i s v a r i a t i o n i n c l u d i n g : 1 ) t h e v o l u m e o f t i m b e r w h i c h t h e b u y e r a n d s e l l e r e s t i m a t e d f o r t h e a r e a , 2 ) t h e s t r a t e g i c i m p o r t a n c e o f t h e t i m b e r i n a p a r t i c u l a r a r e a t o t h e b u y e r , 3 ) r e l a t i v e b a r g a i n i n g s t r e n g t h o f t h e b u y e r a n d t h e s e l l e r , 4 ) t h e amoun t o f r i s k a n d u n c e r t a i n t y a s s o c i -a t e d w i t h d e v e l o p m e n t o f t h e l i c e n s e , 143 5 ) a n t i c i p a t e d l o g g i n g c o s t s , 6 ) v a l u e o f t h e p r o d u c t t h a t w a s t o be p r o d u c e d . U n f o r t u n a t e l y , t h e l i m i t e d i n f o r m a t i o n a v a i l a b l e d o e s n o t a l l o w a mo re d e t a i l e d e x a m i n a t i o n o f t h e c a u s e s o f t h e v a r i a t i o n i n p r i c e s p a i d . A f t e r 1 930 t h e r e w e r e o n l y 11 d o c u m e n t e d p u r c h a s e s o f t i m b e r l i c e n s e s . F i v e o f t h e s e w e r e made f o r t h e C o r n e r B r o o k m i l l , t h r e e f o r t h e G r a n d F a l l s m i l l a n d t w o r e p r e s e n t p a y m e n t s made b y G o v e r n m e n t t o c o m p e n s a t e l i c e n s e e s f o r t h e l o s s o f a r e a s w h i c h w e r e e x p r o p r i a t e d b y t h e C r o w n . W h i l e t h e a v e r a g e p r i c e p e r s q u a r e m i l e d r o p p e d t o $114 d u r i n g t h e 1 9 3 0 ' s , i t r o s e t o $ 784 d u r i n g t h e 1 9 4 0 ' s a n d $ 1 , 1 2 8 d u r i n g t h e 1 9 5 0 ' s . O v e r a l l , t h e a v e r a g e p r i c e p e r s q u a r e m i l e f o r r e c o r d e d t i m b e r l i c e n s e s a l e s r o s e f r o m $ 1 8 8 f o r t h e d e c a d e 1 9 0 1 - 1 0 t o $ 1 , 1 2 8 f o r t h e d e c a d e 1951 -60 ( T a b l e X I I ) . T h i s i s a n i n d i c a t e d i n c r e a s e i n v a l u e i n c u r r e n t d o l l a r s o f 6 00 p e r c e n t . The a v e r a g e C a n a d i a n w h o l e s a l e p r i c e i n d e x f i g u r e s f o r w o o d , wood p r o d u c t s a n d p a p e r f o r t h e s e t w o d e c a d e s a r e 69 .7 a n d 296.7 r e s p e c t i v e l y ( U r q u h a r t a n d B u c k l e y , 1 9 7 1 ) . T h i s i n d i c a t e s a p r i c e i n c r e a s e f o r t h e s e p r o d u c t s o f 426 p e r c e n t . I t t h e r e f o r e a p p e a r s t h a t t h e r e h a s b e e n a l o n g - t e r m i n c r e a s i n g t r e n d i n r e a l t i m b e r v a l u e s i n N e w f o u n d l a n d . D e f l a t i n g a v e r a g e p r i c e s f o r t h e d e c a d e 1 9 5 1 - 6 0 ( $ 1 , 1 2 8 p e r s q u a r e m i l e ) b y t h e i n c r e a s e i n t h e w h o l e s a l e p r i c e i n d e x (4.26 t i m e s ) g i v e s a p r e s e n t v a l u e o f 144 a p p r o x i m a t e l y $26$ p e r s q u a r e m i l e f o r t h e d e c a d e 1901 -10 . S i n c e t h e a v e r a g e v a l u e o f t i m b e r l i c e n s e s t r a d e d i n t h i s p e r i o d wa s $ 1 8 8 , t h e a p p a r e n t i n c r e a s e i n r e a l v a l u e f r o m 1901-10 t o 1951-60 i s $77 p e r s q u a r e m i l e o r 41 p e r c e n t . Some G e n e r a l E s t i m a t e s o f T i m b e r L i m i t V a l u e s R e i d N e w f o u n d l a n d Company I n a s s e m b l i n g a l i m i t a r e a f o r t h e G a n d e r p r o j e c t i n t h e 1 9 2 0 ' s t h e R e i d N e w f o u n d l a n d Company o p e r a t e d u n d e r a s e t o f f i r m g u i d e l i n e s : I t may be w e l l t o r e c o r d t h e f a c t t h a t o u r t i m b e r l a n d p u r c h a s e s a r e i n v a r i a b l y r e g u l a t e d b y t h e r e s u l t s o f a c t u a l c r u i s e s , a n d t h e p r i c e i s a l m o s t i n v a r i a b l y b a s e d on t h e e s t i m a t e d n u m b e r o f c o r d s o f wood on t h e a r e a , r e g a r d l e s s o f i t s s u r f a c e c o n t e n t . T h i s means we a r e p a y i n g f o r t i m b e r , n o t f o r b a r r e n l a n d o r l a k e s ( R e i d P a p e r s , 1 9 2 6 ) . A s e c o n d memo f o u n d i n t h e R e i d P a p e r s g i v e s a n i n d i c a t i o n o f t h e p r i c e t h e Company e x p e c t e d t o p a y f o r l i m i t s t o be a c q u i r e d f o r t h e G a n d e r p r o j e c t : A t t a c h e d i s t h e f o r m o f O p t i o n we a r e u s i n g i n c o n n e c t i o n w i t h t h e p u r c h a s e o f t h e a b o v e l a n d s , a m o u n t i n g t o a b o u t 9 0 0 , 0 0 0 a c r e s . The c h i e f c o n d i t i o n i s t h a t t h e p r i c e i s f i x e d b y t h e y i e l d o f wood p e r a c r e . The e s t i m a t e d a v e r a g e y i e l d o f 3s c o r d s p e r a c r e w o u l d g i v e a p r i c e o f s e v e n t y c e n t s ( 7 0 0 ) p e r a c r e . . . ( R e i d P a p e r s , 1 9 2 4 ) . The i n d i c a t e d p r i c e p e r c u n i t t h a t t h e Company w a s w i l l i n g t o p a y w a s t h u s $ 0 . 2 4 , a n d t h e i n d i c a t e d p r i c e p e r s q u a r e m i l e wa s $ 4 4 8 . The Company d i d somewhat b e t t e r t h a n t h i s i n some o f t h e p u r c h a s e s i t m a d e . A s c a n be s e e n f r o m 145 A p p e n d i x 6, d u r i n g t h e 1 9 2 0 ! s t h e Company made 5 p u r c h a s e s o f a t o t a l o f 501 s q u a r e m i l e s a t a n a v e r a g e p r i c e o f $322 p e r s q u a r e m i l e . I n 1925 M i n e s a n d F o r e s t s e n t e r e d i n t o a n a g r e e m e n t w i t h A . F o r t i n a n d J . R o u s s e a u t o a c q u i r e t w o t i m b e r l i c e n s e s h e l d b y t h e m on t h e B a i e V e r t e P e n i n s u l a w h i c h c o n t a i n e d a t o t a l o f 4-81 s q u a r e m i l e s ( R e g i s t r y o f D e e d s , 1 9 2 5 ) . The p u r c h a s e p r i c e w a s t o be b a s e d on a p r i c e o f 35 c e n t s p e r c u n i t o f p u l p w o o d a n d t h e amoun t o f wood was t o be d e t e r m i n e d b y a c r u i s e t o be c a r r i e d o u t b y t h e p u r c h a s e r , a n d v e r i f i e d b y a c r u i s e r a p p o i n t e d b y t h e s e l l e r . The a g r e e m e n t wa s s u b j e c t t o c a n c e l l a t i o n i f t h e v o l u m e o f t i m b e r wa s f o u n d t o be l e s s t h a n 523,330 c u n i t s o r 1 .7 c u n i t s p e r a c r e . I n 1928 M i n e s a n d F o r e s t s b o u g h t t h e t w o l i c e n s e s f o r $ 4 8 9 , 0 6 6 ( R e g i s t r y o f D e e d s , 1 9 2 8 ) . The i n d i c a t e d v o l u m e a t $ 0 .35 p e r c u n i t w a s a p p r o x -i m a t e l y 1 , 3 9 7 , 0 0 0 c u n i t s . The v a l u e p a i d p e r s q u a r e m i l e was $ 1 , 017 . C o r n e r B r o o k a n d G r a n d F a l l s M i l l s G e n e r a l s t a t e m e n t s h a v e b e e n made a b o u t t h e c o s t o f a c q u i s i t i o n o f t h e l i m i t a r e a s o f b o t h t h e C o r n e r B r o o k a n d G r a n d F a l l s m i l l s . I n 1967 a R o y a l C o m m i s s i o n i n d i c a t e d t h a t t h e B o w a t e r l i m i t a r e a s h a d b e e n a c q u i r e d f o r a c o n -s i d e r a t i o n o f some $15 m i l l i o n ( P u s h i e , I 9 6 7 ) . The R o y a l C o m m i s s i o n on F o r e s t r y o f 1955 s t a t e d t h a t on t h e b a s i s o f 146 figures supplied to i t by the Company i t calculated that Bowater had paid about $0.71 per cunit f o r i t s standing timber. The Commission estimated the mature timber (80 years and over) on the Company's l i m i t to average 12.24 cunits per acre and t o t a l 22-917 m i l l i o n cunits. This would indicate a value of $ 1 6 . 3 m i l l i o n i n 1955 which i s reason-ably close to the $15 m i l l i o n quoted i n the Pushie Royal Commission report. The l i m i t areas could have had less volume on them when they were acquired than they did i n 1955, and t h i s could account f o r the difference i n the two estimates. A t h i r d estimate (source confidential) of the cost of a c q u i s i t i o n of l i m i t s f o r the Corner Brook m i l l provides some in t e r e s t i n g a d d i t i o n a l information. Apparently, up to 1928, $8 . 2 0 m i l l i o n had been paid f o r timber l i m i t s . When the International Paper Company acquired the m i l l i n 1928, the amount allowed f o r value of timber l i m i t s was only $2 .50 m i l l i o n . The s e l l e r , the Newfoundland Power and Paper Company (controlled by the S i r W.G. Armstrong Whitworth and Company Limited) absorbed a $5-70 m i l l i o n loss on l i m i t values. From 1928 to 1972 an a d d i t i o n a l $7-05 m i l l i o n was paid f o r timber l i m i t acquisitions and as of 1972 there was an unpaid balance of $0.79 m i l l i o n . Thus while $16.07 m i l l i o n was paid (or due to be paid) f o r the l i m i t s of the Corner Brook m i l l t h i s includes a c a p i t a l write-off of $5.70 m i l l i o n i n 1928. This suggests that, at lea s t as f a r 147 a s t h e I n t e r n a t i o n a l P a p e r C o r p o r a t i o n wa s c o n c e r n e d , t h e t i m b e r l i m i t s t h a t h a d b e e n a c q u i r e d f o r t h e C o r n e r B r o o k m i l l up t o 1928 w e r e g r o s s l y o v e r v a l u e d b y t h e p r e v i o u s c ompany , a n d t o o much h a d b e e n p a i d f o r t h e m . The B o w a t e r l i m i t s c o n t a i n e x t e n s i v e a r e a s o f f r e e h o l d l a n d a s w e l l a s t i m b e r l i c e n s e s a n d some o f t h e f r e e h o l d a r e a s may h a v e b e e n a c q u i r e d f o r s t r a t e g i c c o r p o r a t e p u r p o s e s . T h u s a l l o f t h e l i m i t a c q u i s i t i o n c o s t s c o u l d n o t be a t t r i b u t e d t o t i m b e r c u t t i n g r i g h t s s i n c e t h e s e a r e o n l y p a r t o f t h e t o t a l r i g h t s e n j o y e d b y f r e e h o l d o w n e r s . The e x a c t a m o u n t t h a t c o u l d be a t t r i b u t e d t o a c q u i s i t i o n o f t i m b e r c u t t i n g r i g h t s i s n o t c l e a r f r o m t h e i n f o r m a t i o n a v a i l a b l e . The 1955 R o y a l C o m m i s s i o n on F o r e s t r y e s t i m a t e d t h a t t h e a v e r a g e c o s t o f s t a n d i n g t i m b e r a c q u i r e d f o r t h e G r a n d F a l l s m i l l w a s $ 0 . 5 9 p e r c u n i t ( K e n n e d y , 1 9 5 5 ) . The C o m m i s s i o n c a l c u l a t e d t h e m a t u r e t i m b e r on Company l i m i t s t o be I I . 6 4 2 m i l l i o n c u n i t s . The i n d i c a t e d t o t a l c o s t i s t h e r e f o r e $ 6 . 8 7 m i l l i o n . M a r s h a l l (1968) i n d i c a t e d t h a t t h e l i m i t a r e a s w e r e a c q u i r e d f o r $ 4 . 5 m i l l i o n . The d i f f e r e n c e b e t w e e n t h e t w o e s t i m a t e s may be e x p l a i n e d b y t h e f a c t t h a t t h e l i m i t s w e r e a c q u i r e d o v e r a p e r i o d o f t i m e a n d t h e s t a n d i n g v o l u m e s a t t h e d a t e o f a c q u i s i t i o n c o u l d h a v e b e e n q u i t e a b i t l e s s t h a n t h e v o l u m e s i n 1 9 5 5 . A l s o , a s w i t h B o w a t e r , t h e Company l i m i t s c o n s i s t e d o f b o t h f r e e h o l d a n d l i c e n s e d a r e a s a c q u i r e d f o r s t r a t e g i c 148 p u r p o s e s a s w e l l a s t i m b e r s u p p l y . T h e r e i s i n s u f f i c i e n t i n f o r m a t i o n a v a i l a b l e t o i s o l a t e t i m b e r v a l u e s m o r e p r e c i s e l y . Sjammary_ T i m b e r l i c e n s e s i s s u e d b y t h e G o v e r n m e n t w e r e m a r k e t a b l e i t e m s a n d t h e r e w a s a c o n s i d e r a b l e amoun t o f t r a d i n g i n t h e m b y s p e c u l a t o r s a n d d e v e l o p e r s . I n f o r m a t i o n g a t h e r e d on d o c u m e n t e d s a l e s i n d i c a t e s t h a t f o r t h e p e r i o d f r o m 1901 t o 1920 (when t h e b u l k o f t h e l i c e n s e s f o r t h e I s l a n d w e r e i s s u e d ) t h e a v e r a g e m a r k e t v a l u e f o r t i m b e r l i c e n s e s on t h e I s l a n d wa s $144 p e r s q u a r e m i l e . The m a r k e t v a l u e o f t h e l i c e n s e s i s s u e d i n e x c e s s o f t h e r e n t a l a n d r o y a l t y r a t e s w a s r o u g h l y e s t i m a t e d t o t o t a l $2 ,479 m i l l i o n o v e r t h e 2 0 - y e a r p e r i o d . T h e r e wa s a l s o a c o n s i d e r -a b l e amount o f t r a d i n g i n t i m b e r l i c e n s e s i n t h e 1 9 2 0 " s a n d p r i c e s i n c r e a s e d . T h i s wa s p o s s i b l y c a u s e d b y a n u m b e r o f a c q u i s i t i o n s made f o r t h e C o r n e r B r o o k m i l l a n d f o r t h e p r o p o s e d m i l l f o r t h e G a n d e r R i v e r . The d r a s t i c r e v a l u -a t i o n o f t h e l i m i t s o f t h e C o r n e r B r o o k m i l l ( f r o m $8 . 20 m i l l i o n t o $2 .50 m i l l i o n ) a t t h e t i m e o f i t s s a l e i n 1928 s u g g e s t s t h a t p r i c e s f o r t i m b e r r i g h t s may h a v e b e e n o v e r -v a l u e d d u r i n g t h e 1 9 2 0 ? s . T r a d i n g i n t i m b e r l i c e n s e s d e c r e a s e d s h a r p l y d u r i n g t h e 1 9 3 0 ' s a n d a v e r a g e p r i c e s f e l l . D u r i n g t h e 1 9 4 0 ' s a n d 1 9 5 0 ' s t h e r e w e r e o n l y a f e w s a l e s , b u t a v e r a g e p r i c e s w e r e h i g h c o m p a r e d t o p r e v i o u s d e c a d e s . T h e r e h a s b e e n a n a p p a r e n t i n c r e a s e i n r e a l t i m b e r v a l u e s i n N e w f o u n d l a n d f o r t h e p e r i o d 1901-10 t o 1951 -60 . 149 S t umpage r a t e s p a i d b y t h e R e i d i n t e r e s t s f o r wood f o r t h e p l a n n e d m i l l on t h e G a n d e r R i v e r r a n g e d f r o m $ 0 . 2 4 t o $ 0 . 3 5 p e r c u n i t . The 1955 R o y a l C o m m i s s i o n on F o r e s t r y e s t i m a t e d t h a t t h e a v e r a g e c o s t o f s t a n d i n g t i m b e r f o r t h e C o r n e r B r o o k m i l l wa s $ 0 . 7 1 p e r c u n i t a n d $ 0 . 5 9 p e r c u n i t f o r t h e G r a n d F a l l s m i l l . A p p r o x i m a t e l y $16 m i l l i o n w a s p a i d o u t o v e r t i m e f o r t h e l i m i t a r e a f o r t h e C o r n e r B r o o k m i l l a n d e s t i m a t e s o f c o s t f o r t h e l i m i t a r e a f o r t h e G r a n d F a l l s m i l l r a n g e f r o m j u s t u n d e r $ 4 - 5 m i l l i o n t o $ 6 . 8 5 m i l l i o n . T h e s e f i g u r e s a r e d i f f i c u l t t o e v a l u a t e f u r t h e r b e c a u s e t h e y i n c l u d e t h e v a l u e o f f e e s i m p l e h o l d i n g s , w i t h m i n e r a l r i g h t s , w a t e r p o w e r r i g h t s a n d o t h e r i t e m s a s w e l l a s t i m b e r v a l u e s . 150 CHAPTER V I I I DEVELOPMENT OF FOREST INDUSTRY S a w m i l l s C o n s t r u c t i o n o f t h e r a i l w a y i n t h e 1 8 9 0 ' s w a s a c c o m p a n i e d b y a n i n c r e a s e i n b o t h t h e n u m b e r o f s a w m i l l s a n d o u t p u t o f l u m b e r . I n I884 t h e r e w e r e 55 m i l l s w h i c h p r o d u c e d 11 .4 m i l l i o n b o a r d f e e t b u t b y 1900 t h e r e w e r e 195 m i l l s a n d a n n u a l l u m b e r p r o d u c t i o n h a d r i s e n t o 43 -6 m i l l i o n b o a r d f e e t . I n 1910, t h e n u m b e r o f m i l l s h a d i n c r e a s e d t o 347 b u t o u t p u t o f l u m b e r h a d r i s e n o n l y m a r g i n a l l y t o 45 .2 m i l l i o n b o a r d f e e t ( N e w f o u n d l a n d , 1 9 1 4 ) . A l t h o u g h t h e n u m b e r o f m i l l s i n c r e a s e d t o 690 i n 1921 ( N e w f o u n d l a n d , 1923a) a n d t o a b o u t 1400 b y t h e 1 9 5 0 ' s , l u m b e r p r o d u c t i o n d i d n o t i n c r e a s e p r o p o r t i o n a t e l y . A v a i l a b l e s t a t i s t i c s ^ i n d i c a t e t h a t a n n u a l p r o d u c t i o n d r o p p e d s h a r p l y a f t e r 1921 a n d was b e l o w 30 m i l l i o n b o a r d f e e t u n t i l t h e 1 9 4 0 ' s a n d 1 9 5 0 ' s when i n d u s t r y o u t p u t o f o v e r 60 m i l l i o n b o a r d f e e t wa s a c h i e v e d i n some y e a r s ( F i g u r e 9 ) . D u r i n g t h e 1 9 6 0 ' s a n d e a r l y 1 9 7 0 ' s o u t p u t wa s l e s s t h a n 40 m i l l i o n b o a r d f e e t i n m o s t y e a r s . A v a i l a b l e f i g u r e s on l u m b e r e x p o r t s a l s o i l l u s t r a t e t h e t e m p o r a r y boom i n t h e s a w m i l l i n d u s t r y a t t h e t u r n o f t h e p r e s e n t c e n t u r y ( F i g u r e 10 a n d T a b l e X I I I ) . E x p o r t s f o r t h e 9The s t a t i s t i c s f o r t h e 1 9 2 0 ' s a n d e a r l y 1 9 3 0 ' s may t e n d t o u n d e r e s t i m a t e a c t u a l p r o d u c t i o n somewhat b e c a u s e g o v e r n m e n t s u p e r v i s i o n o f t h e i n d u s t r y was r a t h e r l a x a t t h e t i m e . 151 Figure 9.- Lumber Production - Newfoundland, 1910-1973 70-, YEARS 152 Figure 10 -Lumber Exports And Production Of Mills On Licensed Areas, 1890 —1930 YEARS 153 TABLE X I I I LUMBER EXPORTS T o t a l L u m b e r E x p o r t s A v e r a g e A n n u a l P e r i o d _ ?or_Fer±od_J]A_fbm) E x p o r t s (M f b m ) 1891-95 1 4 , 5 4 5 2 , 9 0 9 1 8 9 6 - 1 9 0 0 2 5 , 1 7 2 ' 5 , 0 3 4 1901-05 6 5 , 8 2 0 1 3 , 1 6 4 1 9 0 6 - 1 0 6 1 , 8 5 6 1 2 , 3 7 1 1911-15 1 1 , 3 3 7 2 , 2 6 7 1916-20 1 1 , 5 0 8 2 , 3 0 1 1921-25 5 , 8 7 1 1 ,174 SOURCE: C o m p i l e d b y t h e w r i t e r f r o m N e w f o u n d l a n d C u s t o m s R e t u r n s . y e a r I89O w e r e v e r y l o w (5-5 t h o u s a n d b o a r d f e e t ) b u t i n c r e a s e d d u r i n g t h e d e c a d e s o t h a t b y t h e l a t e l 8 9 0 f s s h i p m e n t s w e r e a v e r a g i n g o v e r 5 m i l l i o n b o a r d f e e t a y e a r . E x p o r t s p e a k e d i n 1 9 0 4 , a t a l m o s t 22 m i l l i o n b o a r d f e e t . - ^ S h i p m e n t s a v e r a g e d 12-13 m i l l i o n b o a r d f e e t f o r t h e p e r i o d 1901-10 b u t a f t e r t h i s f e l l s h a r p l y t o j u s t o v e r 2 m i l l i o n . B y t h e e a r l y 1 9 2 0 f s s h i p m e n t s w e r e down t o a l m o s t 1 m i l l i o n 1 0 K e n n e d y (1955) s t a t e d t h a t a t t h e t u r n o f t h e c e n t u r y a n n u a l l u m b e r e x p o r t s w e r e i n t h e o r d e r o f 4 0 - 5 0 m i l l i o n b o a r d f e e t . D a t a c o m p i l e d b y t h e w r i t e r f r o m N e w f o u n d l a n d C u s t o m s R e t u r n s a n d o t h e r s o u r c e s , i n d i c a t e t h a t a n n u a l e x p o r t s n e v e r r e a c h e d t h a t l e v e l . 154 b o a r d f e e t . A s c a n be s e e n f r o m F i g u r e 10, b y 1925 s h i p m e n t s w e r e a t a v e r y l o w l e v e l , a n d l u m b e r e x p o r t s h a d p r a c t i c a l l y c e a s e d . The i n s t a l l a t i o n o f t h e p a p e r a n d p u l p m i l l s a t G r a n d F a l l s a n d B i s h o p s F a l l s i n 1905 a n d 1907 s i g n a l l e d t h e s t a r t o f t h e p r o c e s s o f e x c l u s i o n o f t h e s a w m i l l i n d u s t r y f r o m t h e t i m b e r l a n d s o f t h e i n t e r i o r o f t h e i s l a n d . A s H . J . C r o w e , R e i d s , a n d o t h e r s b o u g h t up t i m b e r l i c e n s e s f o r p u l p a n d p a p e r d e v e l o p m e n t s , l e s s a n d l e s s a r e a wa s a v a i l a b l e f o r s a w m i l l o p e r a t o r s . F i n a l l y , b y t h e 1 9 2 0 ' s , t h e o n l y a r e a s a v a i l a b l e t o t h e i n d u s t r y w e r e t h e t h r e e - m i l e l i m i t , a n d a f e w i s o l a t e d t i m b e r l i c e n s e s a n d a r e a s o f i n a c c e s s i b l e C rown l a n d i n t h e i n t e r i o r o f t h e I s l a n d a n d i n L a b r a d o r . T u r n e r n o t e d t h e i m p a c t t h a t t h e p u l p a n d p a p e r i n d u s t r y was h a v i n g on t h e s a w m i l l i n d u s t r y : The r e d u c t i o n ( i n e x p o r t s ) h a s b e e n c a u s e d b y t h e c o m p a n i e s who w e r e f o r m e r l y e n g a g e d i n t h e s a w m i l l b u s i n e s s on a l a r g e s c a l e t r a n s f e r r i n g m o s t o f t h e i r l i m i t s t o t h e p r o p r i e t o r s o f t h e p u l p a n d p a p e r c o m p a n i e s , who a r e d e v o t i n g a l l t h e i r e n e r g i e s t o t h e b u i l d i n g up o f t h e i r new i n d u s t r y ( T u r n e r , 1 9 1 4 ) . T u r n e r a l s o p o i n t e d o u t t h a t a l l l u m b e r e x p o r t s came f r o m m i l l s o p e r a t i n g o n t i m b e r l i c e n s e s . I n 1914 t h e G o v e r n m e n t t r i e d t o r e g u l a t e t h e s a w m i l l i n d u s t r y on t h e t h r e e - m i l e l i m i t a n d p a s s e d t h e Saw M i l l s A c t ( N e w f o u n d l a n d , 1 9 1 4 a ) . T h i s A c t , a s amended i n 1915, p r o v i d e d f o r t w o k i n d s o f a n n u a l m i l l o p e r a t i n g 155 p e r m i t s ^ t o be i s s u e d . The f i r s t c l a s s o f p e r m i t "was i s s u e d f r e e t o f i s h e r m e n a n d a l l o w e d t h e m t o saw m a t e r i a l f o r u s e i n t h e f i s h e r y . The s e c o n d c l a s s o f p e r m i t w a s i n t e n d e d t o a l l o w s m a l l c o m m e r c i a l s a w m i l l o p e r a t i o n s on n o n a l i e n a t e d C rown l a n d s . A f e e o f $ 5 . 0 0 w a s a s s e s s e d a n d a r o y a l t y o f $ 1 . 0 0 p e r 1 , 0 0 0 b o a r d f e e t o f l u m b e r p r o c e s s e d t h r o u g h t h e m i l l w a s c h a r g e d . T h i s l e g i s l a t i o n l e g a l i z e d t h e o p e r a t i o n o f c o m m e r c i a l m i l l s on t h e t h r e e - m i l e l i m i t . A s t h e t i m b e r s t a n d s o f t h e i n t e r i o r became c o m m i t t e d t o p u l p a n d p a p e r d e v e l o p m e n t s t h e s a w m i l l i n d u s t r y w a s c o n f i n e d t o t h e c o a s t a l f o r e s t f o r i t s l o g s u p p l y . The b u l k o f t h e l u m b e r p r o d u c e d i n N e w f o u n d l a n d s i n c e t h e n h a s b e e n p r o d u c e d b y m i l l s p r o -c e s s i n g l o g s h a r v e s t e d on n o n a l i e n a t e d C r own l a n d s , t h e t h r e e - m i l e l i m i t . Some p r o d u c t i o n h a s c o n t i n u e d f r o m 1 p r i v a t e f l a n d s . The p u l p a n d p a p e r c o m p a n i e s p r o d u c e a s m a l l q u a n t i t y o f l u m b e r f o r t h e i r own u s e a n d h a v e on o c c a s i o n a l l o w e d p r i v a t e m i l l o p e r a t o r s t o h a r v e s t l i m i t e d q u a n t i t i e s f r o m t h e i r a r e a s . H o w e v e r , a s shown i n F i g u r e 9 , p r o d u c t i o n f r o m p r i v a t e h o l d i n g s h a s b e e n c o n s i s t e n t l y b e l o w p r o d u c t i o n f r o m n o n a l i e n a t e d C r own l a n d s s i n c e 1 9 4 2 . On some p a r t s o f t h e c o a s t a l f o r e s t t h e s a w m i l l i n d u s t r y wa s i n d i r e c t c o m p e t i t i o n w i t h f i s h e r m e n f o r l i m i t e d s u p p l i e s o f w o o d . Whe re p o p u l a t i o n was l i g h t , ! % h e s e w e r e a c t u a l l y c a l l e d s a w m i l l l i c e n s e s b u t t h i s t e r m i s n o t u s e d h e r e t o a v o i d c o n f u s i o n w i t h t i m b e r l i c e n s e s . 156 s m a l l c o m m e r c i a l m i l l s c o u l d o b t a i n a d e q u a t e s u p p l i e s o f l o g s a n d f i s h e r m e n c o u l d g e t f i r e w o o d a n d o t h e r d o m e s t i c wood s u p p l i e s . H o w e v e r i n t h e a b s e n c e o f a n y r e g u l a t i o n , i n a r e a s w h e r e p o p u l a t i o n w a s c o n c e n t r a t e d , s e v e r e o v e r -c u t t i n g r e s u l t e d i n h a r d s h i p f o r t h e l o c a l p o p u l a t i o n . Ewbank d e s c r i b e d t h e s i t u a t i o n t h e C o m m i s s i o n f o u n d on t h e B o n a v i s t a P e n i n s u l a i n t h e 1 9 3 0 ' s : I n t h e B o n a v i s t a P e n i n s u l a , t a k e n a s a w h o l e , t h e r e i s a p o p u l a t i o n o f a b o u t 1 1 , 5 0 0 p e o p l e , a n d a s t a n d o f t i m b e r a m o u n t i n g t o a b o u t 3 0 0 , 0 0 0 c o r d s o f s o f t w o o d . The c o n s u m p t i o n o f wood b y t h e e x i s t i n g s e v e n t y s a w m i l l s a n d b y t h i s p o p u l a t i o n i s m o r e t h a n t w i c e a s g r e a t a s t h e a n n u a l i n c r e a s e . L a s t y e a r we made a d e t a i l e d s u r v e y o f p a r t s o f t h e p e n i n s u l a i n o r d e r t h a t we m i g h t come t o c l o s e r g r i p s w i t h t h e p r o b l e m . We f o u n d t h a t i n t h e a r e a n o r t h o f a l i n e d r a w n f r o m T r i n i t y t o P r i n c e t o n t h e r e a r e a b o u t 230 s q u a r e m i l e s a n d a p o p u l a t i o n o f a b o u t 1 0 , 0 0 0 d e p e n d e d ( s i c ) on a s t a n d o f a b o u t 6 0 , 0 0 0 c o r d s o f w o o d . I f a l i n e i s d r a w n b e t w e e n C a t a l i n a a n d W o l f H e a d t h e r e i s a p o p u l a t i o n n o r t h o f i t a m o u n t i n g t o 7 , 4 0 0 l i v i n g i n an a r e a o f s i x t y s q u a r e m i l e s a l m o s t c o m p l e t e l y d e f o r e s t e d . The n e a r e s t t i m b e r a v a i l a b l e i s a s e r i e s o f s t r i p s o f c u t o v e r f o r e s t l y i n g s o u t h o f t h i s b o u n d a r y . D u r i n g t h e w i n t e r a l a r g e n u m b e r o f f a m i l i e s f r o m t h e d e f o r e s t e d a r e a a b a n d o n t h e i r h o u s e s a n d move i n t o s h a c k s a l o n g t h e r a i l w a y s e v e n t e e n o r e i g h t e e n m i l e s f r o m B o n a v i s t a . I w i l l n o t a t t e m p t t o d e s c r i b e t h e c o n d i t i o n s u n d e r w h i c h t h e y l i v e i n t h e s e w i n t e r s h a c k s , b u t t h e n e c e s s i t y o f m o v i n g t o a p l a c e w h e r e t h e y c a n k e e p warm g i v e s t h e m n o c h o i c e . The VOIUIIE o f t i m b e r i n t h i s s t a n d i s e s t i m a t e d a t 2 2 , 0 0 0 c o r d s . A t t h e p r e s e n t r a t e o f c o n s u m p t i o n i t w i l l b e c o m p l e t e l y c u t o u t i n t h r e e y e a r s ( E w b a n k , 1 9 3 9 ) . The s c a t t e r e d n a t u r e o f t h e p o p u l a t i o n a n d t h e n e e d t o u t i l i z e t i m b e r o n t h e t h r e e - m i l e l i m i t r e s u l t e d i n a l u m b e r i n d u s t r y c o m p r i s e d e x c l u s i v e l y o f a l a r g e n u m b e r 157 o f s m a l l p r o d u c i n g u n i t s . The 1955 R o y a l C o m m i s s i o n b r i e f l y d e s c r i b e d t h e i n d u s t r y a t t h e t i m e o f i t s e n q u i r y : T h e r e a r e no l a r g e s a w m i l l s r e m a i n i n g i n o p e r a t i o n i n N e w f o u n d l a n d t o d a y . . A n a n n u a l c u t e x c e e d i n g 500,000 f t . bm. i s e x c e p t i o n a l . O f t h e 14-00 o d d 1953 s a w m i l l l i c e n s e s i s s u e d b y t h e D e p a r t m e n t o f M i n e s a n d R e s o u r c e s , o v e r t h r e e q u a r t e r s w e r e f o r q u a n t i t i e s u n d e r 50,000 f t . a n d t h e s e m i l l s a c c o u n t e d f o r a l m o s t a t h i r d o f t h e t o t a l c u t . Some 170 m i l l s w e r e e q u i p p e d w i t h p o w e r c a r r i a g e s , t h e b a l a n c e w e r e m a n u a l l y o p e r a t e d . T h e s e l a s t , t h e s o - c a l l e d " p u s h -b e n c h e s " may t u r n o u t a n y t h i n g f r o m a f e w h u n d r e d f e e t u p t o 50,000 f t . o r more p e r y e a r . A c o n s i d e r -a b l e n u m b e r a r e u s e d b y f i s h e r m e n t o p r o d u c e t h e i r own a n d t h e i r n e i g h b o u r s ' r e q u i r e m e n t s a n d a r e o p e r a t e d o n l y s p a s m o d i c a l l y ( K e n n e d y , 1 9 5 5 ) . The C o m m i s s i o n f e l t t h e r e w o u l d a l w a y s be a n e e d f o r a N e w f o u n d l a n d s a w m i l l i n d u s t r y a n d r e c o m m e n d e d a c u t o f 50 m i l l i o n b o a r d f e e t a y e a r f r o m C rown l a n d s . I t r e c o m m e n d e d a r e d u c t i o n i n t h e n u m b e r o f ' p u s h - b e n c h ' m i l l s a n d t h e e s t a b l i s h m e n t o f l a r g e r m i l l s t o p r o d u c e w e l l m a n u -f a c t u r e d l u m b e r . I t f e l t , h o w e v e r , t h a t t h e r e wa s l i t t l e h o p e f o r t h e e s t a b l i s h m e n t o f a s a w m i l l i n d u s t r y i n N e w -f o u n d l a n d c o m p a r a b l e t o t h a t f o u n d on t h e m a i n l a n d b e c a u s e o f t h e s m a l l s i z e o f l o c a l t r e e s a n d b e c a u s e m i l l o p e r a t o r s w o u l d n o t be a b l e t o p a y w a g e s c o m p a r a b l e t o t h o s e p a i d i n t h e p u l p a n d p a p e r i n d u s t r y . The s t r u c t u r e o f t h e l u m b e r i n d u s t r y i n N e w f o u n d -l a n d h a s n o t c h a n g e d a p p r e c i a b l y s i n c e t h e R o y a l C o m m i s s i o n s t u d y o f 1955- The F e d e r a l - P r o v i n c i a l T a s k F o r c e o f 1973 r e c o m m e n d e d t h e e s t a b l i s h m e n t , a t s t r a t e g i c l o c a t i o n s o n t h e I s l a n d , o f l a r g e r m i l l s c a p a b l e o f p r o d u c i n g 5 t o 10 ( 158 m i l l i o n b o a r d f e e t p e r y e a r ( S h e p p a r d a n d C a r r o l l , 1 973 ) . L o g s u p p l i e s w e r e made a v a i l a b l e ( f r o m n o n a l i e n a t e d C r own l a n d s a n d f r o m l i c e n s e d a r e a s o f t h e p u l p a n d p a p e r c o m p a n i e s ) a n d s e v e r a l o f t h e s e m i l l s w e r e e s t a b l i s h e d . H o w e v e r , t h e y h a v e n o t p r o v e n t o be s u c c e s s f u l c o m m e r c i a l o p e r a t i o n s t o d a t e a n d t h e b u l k o f t h e p r o v i n c i a l l u m b e r p r o d u c t i o n c o n t i n u e s t o come f r o m s m a l l m i l l s o p e r a t i n g on n o n a l i e n a t e d C r o w n l a n d s . The p u l p a n d p a p e r i n d u s t r y g r e w s t e a d i l y a f t e r t h e f i r s t l a r g e m i l l wa s e s t a b l i s h e d a t G r a n d F a l l s . • S t a t i s t i c s on i n d u s t r y s h i p m e n t s a r e s u m m a r i z e d i n T a b l e X I V . B e t w e e n 1911 a n d 1970 n e w s p r i n t e x p o r t s g r ew f r o m 27 t h o u s a n d t o n s t o 682 t h o u s a n d t o n s , w h i c h i s e q u i v a l e n t t o a n a n n u a l compound g r o w t h r a t e o f 5.6 p e r c e n t . E x p o r t s o f p u l p d i d n o t k e e p p a c e w i t h n e w s p r i n t a n d o n l y r a n g e d b e t w e e n 0 a n d 53 t h o u s a n d t o n s f o r t h e y e a r s l i s t e d i n T a b l e X I V . V a l u e o f e x p o r t s o f n e w s p r i n t a n d p u l p i n c r e a s e d f r o m $1,564 m i l l i o n i n 1911 t o $93,281 m i l l i o n i n 1970, e q u i v a l e n t t o a n a n n u a l compound g r o w t h r a t e o f 7.2 p e r c e n t . G r o w t h o f t h e i n d u s t r y i s a l s o r e f l e c t e d i n p u l p w o o d p r o d u c t i o n s t a t i s t i c s ( T a b l e X V ) w h i c h i n d i c a t e a n a v e r a g e a n n u a l h a r v e s t o f 111 t h o u s a n d c u n i t s ( w h i c h r e p r e s e n t e d 28 p e r c e n t o f t h e t o t a l s o f t w o o d h a r v e s t ) f o r t h e p e r i o d 1911-15 a n d 663 t h o u s a n d c u n i t s ( r e p r e s e n t i n g 77 p e r c e n t o f t h e s o f t w o o d h a r v e s t ) f o r t h e p e r i o d 1966 -70 . 159 TABLE XIV EXPORTS OF NEWSPRINT AND PULP FROM NEWFOUNDLAND FOR SELECTED YEARS FROM 1911 TO 1970 Newsprint Pulp Total Year Short Tons (xlOOO) Value (xJlOOO) Short Tons __Jxlppp_) Value (xjaooo) Value (xj>1000) 1911 27 1 ,203 42 361 1 ,564 1920 62 4 , 6 4 6 27 346 4 , 8 9 2 1929 250 1 5 , 9 5 8 - - 1 5 , 9 5 8 1940 343 1 8 , 1 2 0 23 1 ,355 19,475 1950 474 4 4 , 6 7 7 33 3 , 2 4 5 4 7 , 9 2 2 I 9 6 0 544 6 3 , 7 7 8 53 5,247 6 9 , 0 2 5 1970 682 93,281 - - 9 3 , 2 8 1 SOURCES: Newfoundland Customs Returns Kennedy, 1955 Newfoundland Forest Service 160 TABLE XV F I V E - Y E A R AVERAGES OF NEWFOUNDLAND SOFTWOOD PRODUCTION ( V a l u e s i n t h o u s a n d s o f c u n i t s ) ^ V E R A G E _ A N N U A L _ PRODUCTION P e r i o d [ P u l p w o o d f o r i R o u n d w o o d j ! l o c a l m i l l s _ ! f o r _ e x j J o r t j j ^ i I ! 2 1911-15 111 1916-201 77 ' 24 i 172 | 37 54 j 364 1921-25j 1 150 38 { 170 j 20 47 | 425 1 1926-30J 1 260 25 j 165 | 31 41 ! 522 1931-35! 1 297 21 ! 161 j 30 37 546 1936 -40 1 1 400 82 | 156 | 50 35 723 1 1941 -45 1 388 43 j 149 | 83 31 694 1946 -50 1 618 64 | 141 I 96 27 ! 946 1951-55 ! 1 1 683 84 j 133 1 | 92 24 ! 1016 1 1 1 , 1956-60j 654 58 1 | 113 1 68 1 25  918 1961 - 65 1 569 85 | 88 1 5 7 23 j 822 1966-701 663 73 | 62 i k8 20 866 170 I S a w l o ^ s J M i s c ^ l T ^ a l s 57 60 400 SOURCE: N e w f o u n d l a n d F o r e s t S e r v i c e R e c o r d s 161 S t a t i s t i c s on e m p l o y m e n t b e n e f i t s g e n e r a t e d b y t h e p r o c e s s i n g a n d h a r v e s t i n g p h a s e s o f t h e p u l p a n d p a p e r i n d u s t r y a r e n o t g e n e r a l l y a v a i l a b l e f o r t h e p e r i o d p r i o r t o 1939- T a b l e X V I c o n t a i n s a summary o f i n f o r m a t i o n t h a t i s a v a i l a b l e f o r t h e p e r i o d 1 939 - 53 . C o m p a r a b l e s t a t i s t i c s f o r t h e y e a r s 1963 a n d 1970 a r e i n c l u d e d t o i l l u s t r a t e g e n e r a l t r e n d s . A s c a n be s e e n f r o m T a b l e X V I , . f o r t h e p e r i o d 1939-41} t h e n u m b e r e m p l o y e d i n p u l p a n d p a p e r m i l l s v a r i e d f r o m a b o u t 7 ,300 t o 9,000 a n d t o t a l a n n u a l w a g e s a n d s a l a r i e s p a i d r a n g e d f r o m a b o u t $6.5 m i l l i o n t o $9 .0 m i l l i o n . F o r t h e p e r i o d 1 9 4 7 - 5 3 ? t o t a l a n n u a l e m p l o y m e n t h a d d e c r e a s e d c o n s i d e r a b l y a n d v a r i e d f r o m a b o u t 2,750 t o 4 , 6 00 . T o t a l a n n u a l w a g e s a n d s a l a r i e s r a n g e d f r o m a b o u t $10.5 m i l l i o n t o $14.6 m i l l i o n . T o t a l e m p l o y m e n t wa s a b o u t 3 ,000 i n 1963 a n d 2 , 8 0 0 i n 1970 b u t t o t a l w a g e s a n d s a l a r i e s h a d i n c r e a s e d t o $26.9 m i l l i o n b y 1970. B y t h e l a t e 1 9 4 0 f s , t h e n u m b e r e m p l o y e d i n s e a s o n a l w o o d s w o r k w a s b e t w e e n 8 ,000 a n d 10,000 a n d t o t a l a n n u a l w a g e s a n d s a l a r i e s w e r e i n t h e o r d e r o f $12 m i l l i o n . Due t o m e c h a n i z a t i o n o f h a r v e s t i n g o p e r a t i o n s t h e n u m b e r e m p l o y e d i n h a r v e s t i n g wa s r e d u c e d t o a b o u t 2,400 b y 1970, b u t a n n u a l w a g e s a n d s a l a r i e s h a d i n c r e a s e d t o a l m o s t $17 m i l l i o n . The o v e r a l l i m p a c t o f t h e p u l p a n d p a p e r i n d u s t r y on e m p l o y m e n t b y 1947 was t o p r o v i d e w o r k f o r 13 ,000 p e o p l e 162 T A B L E XVI: EMPLOYMENT IN THE PULP AND PAPER INDUSTRY IN NEWFOUNDLAND FOR SELECTED YEARS FROM 1939 TO 1970 P r o c e s s i n g P l a n t s H a r v e s t i n g T o t a l s Y e a r N o . E m p l o y e d Wages & S a l a r i e s (x$1000) N o . E m p l o y e d wages & S a l a r i e s (xj>1000) N o . E m p l o y e d Wages & S a l a r i e s (x$1000) 1939 7,299 6,478 1940 8,981 8,964 1941 8,244 9,012 1947 4,577 11,866 9,742 1 2 , 1 8 6 14,319 24,052 1948 4,773 14,156 8,036 12,432 12,809 26,588 1949 3,065 10,490 1950 2,763 10,627 1951 3,279 13,393 195 2 1 3,538 14,420 5,400 16,000 8,938 30,420 1953 3,502 14,621 1963 2,988 18,015 2,653 11,066 5,641 2 9 , 0 8 1 1970 2,823 26,872 2,439 j 16,976 5,262 43,848 SOURCES: M a c K a y , 1946 D o m i n i o n B u r e a u o f S t a t i s t i c s , 1949 K e n n e d y , 1955 N e w f o u n d l a n d , 1970 N e w f o u n d l a n d , 1974a -"-Employment f i g u r e s f o r 1952 a r e i n man y e a r s a n d t e n d t o u n d e r e s t i m a t e t h e t o t a l n u m b e r o f p e o p l e e m p l o y e d , e s p e c i a l l y i n h a r v e s t i n g . 163 a n d t o t a l a n n u a l w a g e s a n d s a l a r i e s o f $24 m i l l i o n . B y 1 9 7 0 , t h e t o t a l n u m b e r e m p l o y e d h a d b e e n s h a r p l y r e d u c e d due t o m o d e r n i z a t i o n o f m i l l s a n d m e c h a n i z a t i o n ' o f h a r v e s t i n g o p e r a t i o n s , b u t t h e t o t a l a n n u a l p a y r o l l f o r t h e i n d u s t r y h a d i n c r e a s e d t o a b o u t $44 m i l l i o n . T h u s , i n c o n t r a s t t o t h e l u m b e r i n d u s t r y , w h i c h e x p e r i e n c e d a b r i e f p e r i o d o f e x p a n s i o n i n t h e e a r l y 1 9 0 0 ' s b u t ( e x c e p t f o r a b r i e f p e r i o d i n t h e l a t e 1 9 4 0 ' s a n d e a r l y 1 9 5 0 ' s ) f a i l e d t o a c h i e v e h i g h e r p r o d u c t i o n l e v e l s t h e r e a f t e r , t h e p u l p a n d p a p e r i n d u s t r y c o n t i n u o u s l y i n c r e a s e d i t s s c a l e o f o p e r a t i o n s a n d p r o v i d e d s u s t a i n e d e m p l o y m e n t a n d i n c o m e b e n e f i t s t o t h e N e w f o u n d l a n d e c o n o m y . T h i s w a s t h e k i n d o f b e n e f i t s o u g h t b y t h e G o v e r n m e n t when t h e t i m b e r a l l o c a t i o n p o l i c i e s w e r e f o r m u l a t e d a t t h e t u r n o f t h e c e n t u r y . A l t h o u g h t h e m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k g r e w o v e r t h e y e a r s , i t i s n o t c l e a r t h a t t h e y e n j o y e d a b n o r m a l p r o f i t s a s a r e s u l t o f t h e a c q u i s i t i o n o f t h e i r e x t e n s i v e i n t e r i o r l i m i t a r e a s . The R o y a l C o m m i s s i o n on F o r e s t r y o f 1955 ( K e n n e d y ) c o m p a r e d t h e c o m p e t i t i v e p o s i t i o n o f t h e t w o N e w f o u n d l a n d m i l l s w i t h s i m i l a r m i l l s i n E a s t e r n C a n a d a a n d , w h i l e i t c o n c l u d e d t h a t t h e l o c a l m i l l s s h o u l d be i n a s a t i s f a c t o r y p o s i t i o n v i s - a - v i s m a i n l a n d m i l l s , i t d i d n o t p o i n t t o a n y l a r g e o v e r a l l a d v a n t a g e i n wood c o s t s , a n d d i d n o t r e commend a n y new s t u m p a g e , r o y a l t y o r t a x c h a r g e s t o i n c r e a s e d i r e c t g o v e r n m e n t r e v e n u e s f r o m company l i m i t s . A s a l r e a d y i n d i c a t e d , t h e A t l a n t i c D e v e l o p m e n t B o a r d ( I96&) 164 a t t r i b u t e d a s l o w r a t e o f g r o w t h i n t h e p u l p a n d p a p e r i n d u s t r y i n N e w f o u n d l a n d d u r i n g t h e p e r i o d 1950-65 t o h i g h wood f i b r e c o s t s a n d R e e d (1974) a l s o i n d i c a t e d t h a t p u l p w o o d c o s t s i n N e w f o u n d l a n d a r e h i g h c o m p a r e d t o m o s t o t h e r p a r t s o f C a n a d a . W h i l e n o t p r o v i d i n g c o n c l u s i v e e v i d e n c e , t h e s e r e p o r t s s u g g e s t t h a t t h e N e w f o u n d l a n d t i m b e r r e s o u r c e i s n o t s i g n i f i c a n t l y m o r e v a l u a b l e t o t h e p u l p a n d p a p e r i n d u s t r y t h a n t h e f o r e s t r e s o u r c e i n m o s t o t h e r C a n a d i a n p r o v i n c e s . R e c e n t G o v e r n m e n t A t t e m p t s t o P r o m o t e L a r g e - S c a l e F o r e s t I n d u s t r y S i n c e t h e l a s t m a j o r c o n s o l i d a t i o n o f t i m b e r o w n e r s h i p t o o k p l a c e i n t h e l a t e 1 9 3 0 ' s , t h e G o v e r n m e n t h a s made s t r e n u o u s e f f o r t s t o b r i n g a b o u t t h e e s t a b l i s h m e n t o f l a r g e - s c a l e f o r e s t i n d u s t r y a t t w o l o c a t i o n s on t h e I s l a n d . N e i t h e r o f t h e s e a t t e m p t s h a s ; b e e n s u c c e s s f u l t o d a t e . N e w s p r i n t M i l l f o r E a s t e r n N e w f o u n d l a n d The R o y a l C o m m i s s i o n on F o r e s t r y o f 1955 c o n s i d -e r e d t h e p r o b l e m o f a n a d d i t i o n a l n e w s p r i n t m i l l f o r t h e I s l a n d . I t c o n c l u d e d t h a t t h e r e wa s s u f f i c i e n t wood t o s u p p l y a t h i r d p u l p a n d p a p e r m i l l w i t h a d a i l y c a p a c i t y o f 450-500 t o n s a n d a n a n n u a l wood r e q u i r e m e n t o f 170,000 c u n i t s ( K e n n e d y , 1955 ) , b u t s u c h a m i l l c o u l d n o t be s u p p l i e d f r o m n o n a l i e n a t e d C r own l a n d s b e c a u s e t h e y w e r e t o o w i d e l y d i s p e r s e d . The g e n e r a l l o c a t i o n o f t h e m i l l w o u l d be i n t h e e a s t e r n p a r t o f t h e I s l a n d b u t a n E a s t C o a s t t i m b e r 165 l i m i t t o s u p p l y t h e m i l l c o u l d o n l y be e s t a b l i s h e d b y t r a d i n g n o n a l i e n a t e d C r own l a n d s i n o t h e r p a r t s o f t h e I s l a n d f o r l i m i t s h e l d i n c e n t r a l a n d e a s t e r n N e w f o u n d l a n d b y o w n e r s o f t h e m i l l s a t G r a n d F a l l s a n d C o r n e r ^ 1 B r o o k . The R o y a l C o m m i s s i o n r e commended t h a t t h e G o v e r n -m e n t n e g o t i a t e w i t h t h e t w o c o m p a n i e s w i t h a v i e w t o g e t t i n g t h e m t o p o o l t h e i r r e s o u r c e s a n d j o i n t l y e s t a b l i s h a m i l l i n e a s t e r n N e w f o u n d l a n d . The c o m p a n i e s , h o w e v e r , w e r e a p p a r e n t l y n o t i n t e r e s t e d i n t h i s p r o p o s a l a n d t h e G o v e r n -m e n t e m b a r k e d on a l o n g s e a r c h t o f i n d a r e p u t a b l e company w i l l i n g t o i n v e s t i n a p u l p o r n e w s p r i n t m i l l . I n 1961 t h e P r e m i e r a n n o u n c e d i n t h e l e g i s l a t u r e t h a t t h e G o v e r n m e n t wa s i n v o l v e d i n i t s e i g h t h a t t e m p t t o i n t e r e s t o u t s i d e c a p i t a l i n t h e p r o j e c t . S e v e n p r e v i o u s a t t e m p t s h a d ' f a i l e d c o m p l e t e l y ' a n d s u c c e s s c o u l d n o t b e g u a r a n t e e d on t h i s o c c a s i o n (The E v e n i n g T e l e g r a m , 1961). The S p e e c h f r o m t h e T h r o n e i n J a n u a r y 1961 a n n o u n c e d : My M i n i s t e r s c o n t i n u e t o g i v e t h e m a t t e r o f a t h i r d m i l l b a s e d on t h e u s e o f o u r n a t u r a l r e s o u r c e s o f p u l p w o o d a n d h y d r o p o w e r t h e i r m o s t e n e r g e t i c a t t e n t i o n . The c r e a t i o n o f t h i s t h i r d m i l l h a s b e e n f o r t h e m , a l m o s t f r o m t h e i r a s s u m p t i o n o f o f f i c e , t h e g r e a t e s t s i n g l e o b j e c t i v e o f G o v e r n -m e n t p o l i c y . . . My M i n i s t e r s h a v e f o r some w e e k s p a s t c o n d u c t e d n e g o t i a t i o n s w i t h e x i s t i n g p a p e r c o m p a n i e s , a n d t h e y a r e g r a t i f i e d t o f i n d t h e s e c o m p a n i e s t a k i n g a p a t r i o t i c s t a n d i n t h e m a t t e r . . . L i t t l e i f a n y t h i n g now s t a n d s i n t h e way o f a t h i r d m i l l e x c e p t t h e n e e d t o make a m p l e s u p p l i e s o f e c o n o m i c p u l p w o o d a v a i l a b l e t o i t ( M a c P h e r s o n , 1961). 166 I n o t h e r w o r d s , i n t h e G o v e r n m e n t ' s v i e w , t h e s e c u r i n g o f a t i m b e r l i m i t f o r t h e m i l l wa s t h e o n l y t h i n g p r e v e n t i n g i t s e s t a b l i s h m e n t . The G o v e r n m e n t c o u l d n o t c o n s o l i d a t e t h i s a r e a b e c a u s e l a r g e s e c t i o n s o f f o r e s t l a n d r e q u i r e d f o r t h e m i l l w e r e h e l d u n d e r l o n g - t e r m l i c e n s e b y t h e e x i s t i n g c o m p a n i e s . To c o n s o l i d a t e t h e r e q u i r e d l i m i t , t h e r e w e r e t w o c o u r s e s o f a c t i o n o p e n t o g o v e r n m e n t . I f the. e x i s t i n g l i m i t h o l d e r s c o - o p e r a t e d , v o l u n t a r y l i m i t e x c h a n g e s c o u l d b e made i n w h i c h C r own l a n d s i n o t h e r p a r t s o f t h e I s l a n d w o u l d be e x c h a n g e d f o r t h e E a s t C o a s t l i m i t s o f t h e c o m p a n i e s . A l t e r n a t i v e l y t h e G o v e r n m e n t c o u l d e n a c t l e g i s l a t i o n w h i c h w o u l d b r e a k t h e e x i s t i n g l i c e n s e a g r e e m e n t s and , i n e f f e c t , f o r c e l i m i t e x c h a n g e s . A l t h o u g h a n A c t wa s p a s s e d w h i c h e n a b l e d t h e G o v e r n m e n t t o a c c o m p l i s h t h i s , t h i s c o u r s e o f a c t i o n was n e v e r a d o p t e d ( N e w f o u n d l a n d , 196la), a n d t h e o b j e c t i v e o f e s t a b l i s h i n g a n e w s p r i n t m i l l on t h e E a s t C o a s t o f t h e I s l a n d was n o t a c h i e v e d . L i n e r b o a r d ^ A s a l r e a d y i n d i c a t e d ( C h a p t e r I I ) , t h e G o v e r n m e n t w a s s u c c e s s f u l i n b r i n g i n g a b o u t t h e e s t a b l i s h m e n t o f a l i n e r b o a r d m i l l a t S t e p h e n v i l l e o n t h e W e s t C o a s t o f t h e I s l a n d i n t h e l a t e 1960 fs. A s o r i g i n a l l y c o n c e i v e d , t h i s m i l l was s u p p o s e d t o o b t a i n i t s e n t i r e wood s u p p l y f r o m t h e L a k e M e l v i l l e a r e a o f L a b r a d o r . H o w e v e r , t h e c r o w n c o r p o r a t i o n e s t a b l i s h e d b y t h e G o v e r n m e n t t o t a k e o v e r a n d o p e r a t e t h e m i l l i n 1972, f o u n d t h e c o s t o f wood f r o m 167 L a b r a d o r t o be p r o h i b i t i v e l y e x p e n s i v e . The F e d e r a l -P r o v i n c i a l T a s k F o r c e on F o r e s t r y s u g g e s t e d t h a t , i n o r d e r t o r e d u c e r a w m a t e r i a l c o s t s , a t l e a s t h a l f o f t h e m i l l ' s wood r e q u i r e m e n t s be o b t a i n e d f r o m t h e I s l a n d i f a t a l l p o s s i b l e ( S h e p p a r d a n d C a r r o l l , 1973)• A f t e r t h e m i l l wa s c o m p l e t e d b y t h e G o v e r n m e n t i n 1973, i t wa s f o u n d t h a t a n n u a l s u b s i d i e s i n e x c e s s o f $25 m i l l i o n p e r y e a r w e r e r e q u i r e d t o c o v e r o p e r a t i n g l o s s e s . The m i l l w a s p l a g u e d b y s t a r t - u p p r o b l e m s , l a b o u r d i f f i -c u l t i e s a n d s o f t m a r k e t s f o r i t s p r o d u c t b u t t h e m o s t s e r i o u s d i f f i c u l t y i d e n t i f i e d i n t h e 1976 P r o v i n c i a l B u d g e t w a s t h e h i g h c o s t o f wood ( D o o d y , 1 976 ) . I n 1977, i t w a s a n n o u n c e d t h a t t h e m i l l w o u l d c l o s e b e c a u s e t h e G o v e r n m e n t c o u l d no l o n g e r a f f o r d t h e s u b s i d i e s n e c e s s a r y t o k e e p i t o p e r a t i n g . The c l o s i n g o f t h e m i l l i s a s e r i o u s b l o w t o t h e economy o f t h e p r o v i n c e s i n c e a b o u t 1,500 j o b s w i l l b e l o s t . The G o v e r n m e n t i s p r e s e n t l y t r y i n g t o a r r a n g e f o r t h e s a l e o f t h e m i l l t o p r i v a t e i n t e r e s t s , s o t h e f i n a l d i s p o s i t i o n o f t h e p l a n t i s s t i l l u n c e r t a i n . PART I I I EVALUATION OF HYPOTHESES CHAPTER I X - INFLUENCE OF TRAD IT ION AND H I STOR ICAL ATT ITUDES ON PUBL IC T IMBER ALLOCAT ION POL ICY CHAPTER X - WERE T IMBER ALLOCAT ION P O L I C I E S A GIVEAWAY? CHAPTER X I - CONCENTRATION OF TIMBER OWNERSHIP 169 CHAPTER I X INFLUENCE OF TRAD IT ION AND H I STOR ICAL ATT ITUDES ON PUBL IC T IMBER ALLOCAT ION POL ICY The f i r s t h y p o t h e s i s , a s s t a t e d i n C h a p t e r I w a s : The p a t t e r n o f u s e o f t h e c o a s t a l f o r e s t r e s o u r c e was e s t a b l i s h e d c e n t u r i e s a g o b y t r a n s i e n t f i s h e r m e n a n d e a r l y s e t t l e r s a n d t h i s h a s h a d a p r o f o u n d i n f l u e n c e on p u b l i c t i m b e r a l l o c a t i o n p o l i c y . The e a r l y h i s t o r y o f N e w f o u n d l a n d i s o f i n t e r e s t b e c a u s e some v e r y i m p o r t a n t f o r e s t p o l i c y p r e c e d e n t s w e r e e s t a b l i s h e d , w h i c h a r e s t i l l i n e v i d e n c e t o d a y . The m o s t s t r i k i n g o f t h e s e i s t h e p o l i c y o f t r e a t i n g t h e c o a s t a l f o r e s t s a s a common p r o p e r t y r e s o u r c e f o r t h e u s e o f t h o s e e n g a g e d i n t h e f i s h e r y . T h i s p r i n c i p l e wa s e s t a b l i s h e d a s a c u s t o m i n t h e e a r l y s i x t e e n t h c e n t u r y when t h e N e w f o u n d -l a n d s h o r e f i s h e r y b e g a n , wa s p r o t e c t e d i n G u y ' s C h a r t e r o f 1 6 1 0 , a n d i n s u b s e q u e n t g o v e r n m e n t l e g i s l a t i o n a n d r e g u l a t i o n s u n t i l 1 824 ( M a c K a y , 1 9 4 6 ) . The C rown L a n d s A c t c o n t a i n s t h e f o l l o w i n g p r o v i s i o n : No p e r s o n s h a l l c u t o r r e m o v e a n y t r e e s f r o m C rown L a n d s , e x c e p t a maximum o f two t h o u s a n d c u b i c f e e t • gf_ t i m b e r c u t f o r h i s own u s e , a s f i r e w o o d , i n t he " f i s h e r y , i n a g r i c u l t u r e , o r i n o c c u p a t i o n s o f a s i m i l a r k i n d , u n l e s s he h a s o b t a i n e d a p e r m i t f r o m t h e M i n i s t e r i s s u e d i n a c c o r d a n c e w i t h t h i s A c t a n d t h e r e g u l a t i o n s ( e m p h a s i s a d d e d ) . T h e r e i s no t i m e l i m i t a t i o n s p e c i f i e d i n t h e A c t s o t h e r e i s no l e g a l l i m i t t o t h e amoun t o f wood t h a t c a n be r e m o v e d b y a f i s h e r m a n f o r h i s own u s e . A s t r i p o f n o n a l i e n a t e d 170 C r o w n f o r e s t a b o u t t h r e e m i l e s d e e p s t i l l e x i s t s a r o u n d m o s t o f t h e c o a s t o f t h e I s l a n d o f N e w f o u n d l a n d , a n d t h e a b o v e l e g i s l a t i o n a p p l i e s e x c e p t t o some a r e a s d e s i g n a t e d a s s p e c i a l " F o r e s t Management A r e a s " . T h i s t h e n , m u s t be one o f t h e o l d e s t f o r e s t p o l i c i e s i n N o r t h A m e r i c a , s i n c e h i s t o r i c a l r e c o r d s i n d i c a t e i t h a s b e e n i n e f f e c t f o r o v e r f o u r h u n d r e d y e a r s . The t h r e e m i l e l i m i t w a s i n i t i a l l y c r e a t e d , n o t b y a s p e c i f i c p i e c e o f l e g i s l a t i o n b u t b y t h e p r a c t i c e o f G o v e r n m e n t i n n o t i s s u i n g t i m b e r l i c e n s e s o r l a r g e f e e s i m p l e g r a n t s t o a r e a s w i t h i n t h r e e m i l e s o f t h e c o a s t . I t w a s n o t u n t i l 193.0, when p r a c t i c a l l y a l l t h e i n l a n d t i m b e r r e s o u r c e s h a d b e e n a l l o c a t e d t o t h e p r i v a t e s e c t o r , t h a t t h e C r o w n L a n d s A c t s p e c i f i c a l l y s t a t e d t h a t l i c e n s e s w e r e n o t t o be i s s u e d w i t h i n t h i s t h r e e m i l e z o n e . P r i o r t o 1 9 3 0 , t h e r i g h t s o f t h e f i s h e r m e n w e r e p r o t e c t e d i n t w o w a y s . F i r s t , l e g a l p r o v i s i o n s w e r e -i n c l u d e d i n t h e v a r i o u s v e r s i o n s o f t h e C r o w n L a n d s A c t a n d i n t h e l i c e n s e s w h i c h g a v e t h e f i s h e r m e n t h e r i g h t t o o b t a i n t h e i r d o m e s t i c w o o d s u p p l i e s f r o m l i c e n s e d a r e a s . A l s o t h i r t y d a y s p u b l i c n o t i c e i n t h e p r e s s n o r m a l l y h a d t o b e g i v e n b e f o r e a l i c e n s e c o u l d b e i s s u e d . T h i s g a v e o b j e c t o r s t i m e t o r e g i s t e r a p r o t e s t b u t p r o v e d i n a d e q u a t e a s a s a f e g u a r d i n t h e 1 9 2 0 * s , when a n u m b e r o f l i c e n s e s w e r e i s s u e d t o p a r t s o f t h e t h r e e m i l e l i m i t . P u b l i c 171 protests resulted in statutory backing being given to the three-mile lim i t i n 1930. The rights of the fishermen and settlers to the coastal forest were common property rights. During the whole of the f i r s t 400 year period there was no effective regulation of public use of the resource. In fact, only since the 1930*s have there been serious attempts by Government to introduce forest management to this area. The problem of introducing forest management to the coastal forest was aggravated to a certain extent by the failure of the sawmill industry that had been i n i t i a l l y established on the licensed areas of the interior. After this, the interior forests were committed almost exclus-ively to pulpwood production and the coastal forest was the only source of log supply that remained for what was l e f t of the sawmill industry. But the coastal forest was treated as a common property resource, so no effective limitations were imposed on the number of mills that could be established and operated i n any one area. In many areas the result was serious overcutting as large numbers of small commercial sawmills competed with settlers for the limited wood supplies. The p o l i t i c a l system described by Noel was s t i l l operating well into the present century and only recently has i t been possible to introduce management controls to 172 parts of Crown lands i n the coastal forest zone. The 1955 Royal Commission on Forestry noted the devastation r e s u l t i n g from uncontrolled cutting within the three-mile l i m i t and recommended the establishment of forest manage-ment areas (Kennedy, 1955). However, such changes could only be made gradually, and with the consent of the r u r a l population and t h e i r elected members i n the House of Assembly. The other early harbinger of future forest p o l i c y was contained i n Guy Ts Charter of 1610 which con-veyed complete property r i g h t s to inland areas beyond the sphere of i n t e r e s t of those engaged i n the f i s h e r y . Consciously or unconsciously the l e g i s l a t o r s who drafted the agreements and laws which led to i n t e r i o r development i n Newfoundland i n the l a t e nineteenth century adopted p r i n c i p l e s s i m i l a r to those contained i n Guy Ts Charter, which granted extensive private property r i g h t s to large areas of inland f o r e s t s . The anti-settlement p o l i c i e s of the B r i t i s h Govern-ment from 1634 to 1824, and the lack of c i v i l government no doubt hindered the growth of i n s t i t u t i o n s and the development of custodial attitudes towards the forest resource to a certain degree. Of considerable importance to the develop-ment of timber a l l o c a t i o n p o l i c y was the c u l t u r a l background and occupation of the s e t t l e r s who immigrated to Newfound-land i n the l a t e eighteenth and early nineteenth centuries, 173 their l i f e style, their dispersion in many small isolated fishing settlements around the coast, and the social and economic structure within which they lived. These were fishermen, not farmers, and their element was the sea, not the land. One would not expect them to be worried about inland forest resources or very concerned about their disposal and management as long as immediate personal requirements for fuel and timber were available from accessible coastal areas. While the general population was very sensitive about i t s rights to the coastal forests, decisions relating to exploitation of inland areas were l e f t to a large extent to potential developers and those who controlled the Government in St. John's. While the pattern of early settlement did have a profound influence on timber allocation policy for the coastal forest, i t s influence was considerably less for inland areas. The policy adopted for the interior of the Island and Labrador was similar to policies adopted in various provinces of Canada in that the resource was allocated to the private sector through the issue of long term leases and licenses. The influence of settlement on allocation policy for inland areas was thus passive in that i t allowed the resource to be transferred to the private sector in a conventional way. 174 CHAPTER X WERE TIMBER ALLOCAT ION P O L I C I E S A GIVEAWAY? The s e c o n d h y p o t h e s i s a s s t a t e d i n C h a p t e r I w a s : E a r l y g o v e r n m e n t t i m b e r a l l o c a t i o n p o l i c i e s f o r t h e f o r e s t r e s o u r c e s o f t h e i n t e r i o r o f t h e I s l a n d a n d f o r L a b r a d o r w e r e a g i v e a w a y . The e v a l u a t i o n o f t h i s h y p o t h e s i s r e q u i r e s a j u d g e m e n t t o be made on t h e v a l u e o f t h e N e w f o u n d l a n d t i m b e r r e s o u r c e a t t h e t i m e i t wa s b e i n g a l l o c a t e d . Was i t a v e r y r i c h r e s o u r c e t h a t c o u l d y i e l d s i g n i f i c a n t e c o n o m i c r e n t , o r wa s i t a somewhat l e s s v a l u a b l e r e s o u r c e c o n t a i n i n g l i t t l e , i f a n y , p o t e n t i a l s u r p l u s e c o n o m i c v a l u e ? The f o l l o w i n g d i s c u s s i o n on e c o n o m i c r e n t a n d t i m b e r r e s o u r c e s p r o v i d e s a t h e o r e t i c a l f r a m e w o r k f o r t h e a s s e s s m e n t o f t h e v a l u e o f t h i s t i m b e r r e s o u r c e . E c o n o m i c _ R e n t a n d T i m b e r R e s o u r c e s D a v i d R i c a r d o ( 1 7 7 2 - 1 8 2 3 ) i s t h e c l a s s i c a l e c o n o m i s t c r e d i t e d w i t h d e f i n i n g t h e c o n c e p t o f e c o n o m i c r e n t ( S o u l e , 1 9 5 2 ) . R i c a r d o was c o n c e r n e d w i t h t h e v a l u e o f a g r i c u l t u r a l l a n d i n E n g l a n d w h i c h was c o n s i d e r e d t o be f i x e d i n s u p p l y . He o b s e r v e d t h a t i n a n e x p a n d i n g e c o n o m y , w i t h p o p u l a t i o n a n d t h e demand f o r f a r m p r o d u c t s i n c r e a s i n g , t h e b e s t l a n d s w e r e d e v e l o p e d f i r s t . A s demand c o n t i n u e d t o g r o w , l e s s p r o d u c t i v e l a n d i n o u t l y i n g a r e a s wa s d e v e l o p e d . The m o s t p r o d u c t i v e l a n d n e a r m a r k e t c e n t r e s 175 became m o r e v a l u a b l e t h a n o t h e r l a n d s . I t y i e l d e d r e v e n u e s i n e x c e s s o f t h e c o s t o f t h e l a b o u r a n d c a p i t a l r e q u i r e d t o b r i n g i t i n t o p r o d u c t i o n . T h i s s u r p l u s w a s t e r m e d e c o n o m i c r e n t . L a n d s t h a t c a n y i e l d e c o n o m i c r e n t s a r e r e f e r r e d t o a s i n t r a m a r g i n a l l a n d s . I f q u a l i t y o f management a n d t e c h n o l o g y a r e a s s u m e d t o be c o n s t a n t , t h e amount o f r e n t t h a t c a n b e e a r n e d b y a n y one s e c t i o n o f l a n d w i l l d e p e n d u p o n t h e g r o w i n g c a p a c i t y o f t h e s o i l , t h e demand f o r t h e p r o d u c t s t h a t a r e p r o d u c e d a n d t h e l o c a t i o n r e l a t i v e t o m a r k e t s . Good q u a l i t y l a n d c l o s e t o m a r k e t s w i l l t e n d t o e a r n h i g h e r r e n t s t h a n l o w q u a l i t y l a n d i n o u t l y i n g a r e a s . A s l a n d q u a l i t y d e c r e a s e s a n d d i s t a n c e f r o m m a r k e t s i n c r e a s e s , a p o i n t i s r e a c h e d w h e r e r e v e n u e s f r o m t h e g o o d s p r o d u c e d w i l l j u s t e q u a l t h e c o s t o f l a b o u r a n d c a p i t a l r e q u i r e d t o d e v e l o p a n d w o r k t h e l a n d a n d no r e n t w i l l b e e a r n e d . S u c h l a n d i s r e f e r r e d t o a s m a r g i n a l l a n d . A s one p r o c e e d s f u r t h e r f r o m m a r k e t s o r t o l o w e r q u a l i t y l a n d , r e v e n u e s f r o m t h e c r o p s p r o d u c e d w i l l n o l o n g e r e q u a l t h e c o s t s o f p r o d u c t i o n . S u c h a r e a s a r e s u b m a r g i n a l l a n d s . A t t e m p t s a r e s o m e t i m e s made t o d e v e l o p l a n d s w h i c h a r e s u b m a r g i n a l f o r a p a r t i c u l a r u s e , b u t ( i n t h e a b s e n c e o f s u b s i d i e s ) t h e s e a t t e m p t s m u s t f a i l b e c a u s e o v e r t h e l o n g r u n c o s t s w i l l e x c e e d r e v e n u e s . 176 L a n d c a n be i n t r a m a r g i n a l f o r mo re t h a n one u s e , a n d l a n d t h a t i s s u b m a r g i n a l f o r some u s e s may be m a r g i n a l o r i n t r a m a r g i n a l f o r o t h e r u s e s . I f t h e o b j e c t i v e o f t h e o w n e r i s r e n t m a x i m i z a t i o n , he w i l l a l l o c a t e h i s l a n d t o t h e u s e w h i c h y i e l d s t h e g r e a t e s t s u r p l u s o f r e v e n u e s o v e r c o s t s . S i z e o f l a n d a r e a s a n d s c a l e o f o p e r a t i o n s c a n a l s o h a v e an i m p o r t a n t i n f l u e n c e on t h e r e n t s t h a t c a n be e a r n e d . S m a l l i n d i v i d u a l p a r c e l s o f l a n d may be s u b m a r g i n a l f o r a p a r t i c u l a r u s e , b u t i f a n u m b e r o f a r e a s c a n be c o m b i n e d u n d e r one o w n e r o r m a n a g e r , m a r g i n a l o r i n t r a -m a r g i n a l o p e r a t i o n s may be p o s s i b l e . I n a n e x p a n d i n g economy t h e demand f o r l a n d a n d l a n d r e s o u r c e s t e n d s t o i n c r e a s e o v e r t i m e . M a r g i n a l a r e a s c a n become i n t r a m a r g i n a l a n d s u b m a r g i n a l a r e a s c a n become m a r g i n a l . S i m i l a r l y , i n a n e c o n o m i c d e p r e s s i o n , demand f o r l a n d r e s o u r c e s may f a l l a n d i n t r a m a r g i n a l a r e a s may become m a r g i n a l a n d m a r g i n a l a r e a s may become s u b m a r g i n a l . T e c h n o l o g i c a l c h a n g e c a n a l s o h a v e a n i n f l u e n c e on l a n d v a l u e s . Some p r o d u c t s may become o b s o l e t e w h i l e new demands may be c r e a t e d f o r l a n d r e s o u r c e s w h i c h may a f f e c t t h e r e n t s t h a t c a n b e e a r n e d . W h i l e t h e e a r l y t h e o r y o f e c o n o m i c r e n t wa s d e v e l o p e d f o r a g r i c u l t u r a l l a n d a n d f a r m p r o d u c t s , i t c a n b e a p p l i e d t o o t h e r r e s o u r c e s a s w e l l . T i m b e r , l i k e a g r i -c u l t u r e c r o p s , i s a l a n d r e s o u r c e a n d t h e r e i s c o n s i d e r a b l e 177 v a r i a t i o n i n t h e q u a l i t y o f f o r e s t l a n d s a n d t h e t i m b e r c r o p s t h e y c a n p r o d u c e . A h i g h q u a l i t y t i m b e r r e s o u r c e w o u l d i m p l y e x t e n s i v e t i m b e r s t a n d s w i t h h i g h r e c o v e r a b l e v o l u m e s p e r a c r e o f m e r c h a n t a b l e t i m b e r l o c a t e d c l o s e t o g o o d u t i l -i z a t i o n s i t e s . T h i s w o u l d f a v o r t h e h a r v e s t i n g o f wood a t l o w c o s t f o r p r o c e s s i n g i n t o l u m b e r , p u l p , p a p e r o r some o t h e r m a r k e t a b l e wood p r o d u c t . S u c h a r e s o u r c e w o u l d l i k e l y be i n t r a m a r g i n a l a n d c a p a b l e o f y i e l d i n g e c o n o m i c r e n t s w h i c h c o u l d be c o l l e c t e d b y t h e o w n e r t h r o u g h a p p r o p r i a t e b o n u s , s t u m p a g e , r o y a l t y o r r e n t a l c h a r g e s , o r t h r o u g h t a x a t i o n . A l o w q u a l i t y t i m b e r r e s o u r c e w o u l d i m p l y h i g h c o s t o f wood d e l i v e r e d t o t h e u t i l i z a t i o n s i t e f o r r e a s o n s s u c h a s l o w m e r c h a n t a b l e v o l u m e p e r a c r e o r p o o r l o c a t i o n . S u c h a r e s o u r c e c o u l d be m a r g i n a l o r s u b m a r g i n a l f o r t h e h a r v e s t i n g o f wood f o r f o r e s t i n d u s t r i e s . M a r g i n a l t i m b e r r e s o u r c e s may be d e v e l o p e d b u t t h e y w i l l n o t y i e l d e c o n o m i c r e n t s t o p a y s i g n i f i c a n t s t u m p a g e , r o y a l t y , l a n d r e n t o r t a x a t i o n c h a r g e s . S u b m a r g i n a l t i m b e r r e s o u r c e s w i l l n o t s u s t a i n d e v e l o p m e n t a t t e m p t s i n t h e l o n g r u n . The c o n s i d e r a t i o n o f w h e t h e r t h e e a r l y t i m b e r a l l o c a t i o n p o l i c i e s o f t h e N e w f o u n d l a n d G o v e r n m e n t w e r e a g i v e a w a y o r n o t r e q u i r e s a n e v a l u a t i o n o f t h e r e s o u r c e a s b e i n g i n t r a m a r g i n a l , m a r g i n a l o r s u b m a r g i n a l a t t h e t i m e i t wa s a l l o c a t e d . F u r t h e r , i f t h e r e s o u r c e ( o r a p a r t o f i t ) was p e r c e i v e d t o be i n t r a m a r g i n a l o r m a r g i n a l , i t w o u l d be 17$ r e l e v a n t t o i d e n t i f y t h e p r o d u c t s t h a t c o u l d h a v e b e e n p r o d u c e d , t h e a p p r o p r i a t e s i z e o f u t i l i z a t i o n p l a n t , a n d s i z e o f t i m b e r l i m i t r e q u i r e d t o s u p p l y t h e p l a n t ( s ) . F i n a l l y i t . i s n e c e s s a r y t o a s s e s s t h e e x t e n t t o w h i c h t h e G o v e r n m e n t wa s a w a r e t h a t p a r t s o f t h e r e s o u r c e w e r e i n t r a -m a r g i n a l , a n d w h a t a c t i o n c o u l d h a v e b e e n t a k e n t o c o l l e c t t h e r e n t s t h a t w e r e a v a i l a b l e . I f t h e g o v e r n m e n t wa s a w a r e t h a t t h e r e s o u r c e was i n t r a m a r g i n a l a n d t o o k no a c t i o n t o c o l l e c t t h e r e n t s t h a t w e r e a v a i l a b l e , t h e n t h e t i m b e r a l l o c a t i o n p o l i c i e s c o u l d be d e s c r i b e d a s a g i v e a w a y u n l e s s r e n t s w e r e b e i n g c o n -s c i o u s l y s a c r i f i c e d t o m e e t some o t h e r o b j e c t i v e . H o w e v e r , i f t h e g o v e r n m e n t h a d g o o d r e a s o n t o b e l i e v e t h a t t h e r e s o u r c e was m a r g i n a l o r s u b m a r g i n a l , t h e n e f f o r t s t o c o l l e c t r e n t s w o u l d n o t h a v e b e e n j u s t i f i e d a n d w o u l d h a v e o n l y h i n d e r e d t h e d e v e l o p m e n t o f a n y m a r g i n a l r e s o u r c e s t h a t e x i s t e d . A s s e s s m e n t o f T i m b e r A l l o c a t i o n P o l i c y The h y p o t h e s i s i m p l i e s t h a t t h e i n t e r i o r f o r e s t r e s o u r c e w a s i n t r a m a r g i n a l a t t h e t i m e i t w a s b e i n g a l l o c a t e d . The h a r v e s t i n g o f t h e t i m b e r w o u l d p r o d u c e r e v e n u e s w e l l a b o v e t h e c o s t s o f o b t a i n i n g a n d h o l d i n g t h e l i c e n s e s , c o s t s o f l o g g i n g a n d p r o v i d i n g a n o r m a l r e t u r n on i n v e s t m e n t f o r t h e o p e r a t o r . T h i s s u r p l u s v a l u e o r e c o n o m i c r e n t c o u l d h a v e b e e n a p p r o p r i a t e d b y t h e g o v e r n m e n t t h r o u g h t h e i m p o s i t i o n o f 179 h i g h e r r e n t a l f e e s , h i g h e r b o n u s , s t u m p a g e , o r r o y a l t y c h a r g e s , o r t h r o u g h a t a x o f some k i n d . The g o v e r n m e n t n e g l e c t e d t o do t h i s a n d t h e p r i v a t e t i m b e r o w n e r s w e r e a l l o w e d t o c a p t u r e t h e s u r p l u s v a l u e f o r t h e m s e l v e s . The h i s t o r i c a l r e c o r d i n d i c a t e s t h a t t h e r e s o u r c e w a s n o t i n t r a m a r g i n a l a t t h e t i m e i t w a s a l l o c a t e d , b u t l a t e r p a r t s o f i t d i d become i n t r a m a r g i n a l . A s shown i n C h a p t e r I V , t h e i n i t i a l c h a r g e s a n d t e r m s a n d c o n d i t i o n s c o n t a i n e d i n t h e e a r l y t i m b e r a l l o c a t i o n l e g i s l a t i o n w e r e f a i r l y s t r i n g e n t . I n t h e c a s e o f l i c e n s e s f o r p u l p m i l l s , t h e C r own L a n d s A c t o f 1 899 s e t a maximum l i c e n s e a r e a o f 150 s q u a r e m i l e s , a $ 5 . 0 0 p e r s q u a r e m i l e b o n u s , a n d a n a n n u a l r e n t a l o f $ 3 . 0 0 p e r s q u a r e m i l e . I n a d d i t i o n , t h e l i c e n s e e w a s r e q u i r e d t o s p e n d a m in imum o f $ 2 0 , 0 0 0 on b u i l d i n g s a n d e q u i p m e n t w i t h i n f i v e y e a r s a n d p a y f o r t h e l i c e n s e s u r v e y . D e v e l o p m e n t u p t o t h e e a r l y 1 9 0 0 ' s w a s s l o w , o n l y one s m a l l p u l p m i l l a n d some s a w m i l l s w e r e e r e c t e d . I n t h e s p e c i a l l e g i s l a t i o n f o r t h e G r a n d F a l l s d e v e l o p m e n t , some o f t h e s e t e r m s a n d c o n d i t i o n s w e r e c o n -s i d e r a b l y c h a n g e d . The l e a s e g r a n t e d w a s f o r a n a r e a o f 2 , 0 0 0 s q u a r e m i l e s c o m p a r e d t o a maximum o f 150 s q u a r e m i l e s i n t h e C r o w n L a n d s A c t . The l e a s e w a s f o r b o t h m i n e r a l s a n d t i m b e r a n d w a s f o r 9 9 y e a r s , r e n e w a b l e u n d e r t h e o r i g i n a l t e r m s a n d c o n d i t i o n s a t t h e o p t i o n o f t h e l e s s e e . The a n n u a l r e n t w a s s e t a t $ 2 . 0 0 p e r s q u a r e m i l e f o r f o r e s t e d a r e a s a n d t h e r e w a s no b o n u s c h a r g e . A r o y a l t y c h a r g e f o r w o o d p r o c e s s e d i n t o l u m b e r w a s s t i p u l a t e d . 180 T h i s l e g i s l a t i o n i n d i c a t e s a c o n s i d e r a b l e r e t r e a t b y t h e g o v e r n m e n t f r o m t h e t e r m s a n d c o n d i t i o n s e s t a b l i s h e d i n t h e C r o w n L a n d s A c t o f 1899• The i n d i c a t i o n s a r e , t h a t i n o r d e r t o a c h i e v e a d e s i r a b l e r a t e o f d e v e l o p m e n t o f i n l a n d f o r e s t a r e a s , t h e G o v e r n m e n t was f o r c e d t o r e l a x i t s t i m b e r a l l o c a t i o n p o l i c i e s . I f t h e s e f o r e s t a r e a s d i d i n f a c t c o n t a i n c o n s i d e r a b l e s u r p l u s v a l u e o r e c o n o m i c r e n t f o r t h e k i n d o f p r o c e s s i n g p l a n t s e n v i s a g e d b y t h e G o v e r n m e n t , t h e n a s a t i s f a c t o r y r a t e o f d e v e l o p m e n t s h o u l d h a v e b e e n a c h i e v e d u n d e r t h e mo re s t r i n g e n t t e r m s a n d c o n d i t i o n s o f t h e 1899 C rown L a n d s A c t . The f a i l u r e o f t h e l u m b e r e x p o r t i n d u s t r y , w h i c h was i n i t i a l l y b a s e d on wood s u p p l i e s f r o m i n l a n d f o r e s t a r e a s , i n d i c a t e s t h a t t h e r e was l i t t l e e c o n o m i c r e n t t o be e a r n e d t h r o u g h s a w m i l l o p e r a t i o n s a t t h e t i m e t h e t i m b e r a l l o c a t i o n p o l i c i e s w e r e b e i n g d e v e l o p e d . The m i l l s e s t a b l i s h e d b y M i l l e r i n c e n t r a l N e w f o u n d l a n d o n l y o p e r a t e d f o r a f e w y e a r s b e f o r e h e d e c i d e d t o q u i t b e c a u s e o f t h e l o w q u a l i t y o f s a w l o g s u p p l i e s . L u m b e r e x p o r t s d e c l i n e d s h a r p l y a f t e r 1911 a s t h e v a r i o u s s a w m i l l s b a s e d on i n l a n d t i m b e r l i c e n s e s c e a s e d o p e r a t i n g . I n d i c a t i o n s a r e t h a t t h e l u m b e r e x p o r t i n d u s t r y c o l l a p s e d f o r a c o m b i n a t i o n o f r e a s o n s . F i r s t , much o f t h e t i m b e r r e s o u r c e o f t h e i n t e r i o r , w h i c h w a s o r i g i n a l l y t h o u g h t t o be i n t r a m a r g i n a l f o r s a w m i l l s , p r o v e d t o be m a r g i n a l o r s u b m a r g i n a l . S e c o n d , a v a i l a b l e s u p p l i e s o f i n t r a m a r g i n a l s a w m i l l t i m b e r w e r e e x h a u s t e d 1 8 1 f a i r l y q u i c k l y d u r i n g t h e l a t e 1 8 0 0 ' s a n d e a r l y 1 9 0 0 ' s . T h i r d , d u r i n g t h e e a r l y 1 9 0 0 ' s , d e v e l o p e r s p e r c e i v e d t h a t t h e i n t e r i o r f o r e s t r e s o u r c e , t h a t w a s p r o v i n g t o be l a r g e l y m a r g i n a l o r s u b m a r g i n a l f o r s a w m i l l o p e r a t i o n s , w o u l d be i n t r a m a r g i n a l f o r p u l p o r p a p e r m i l l s . T i m b e r l i c e n s e s t h a t h a d o r i g i n a l l y b e e n t a k e n o u t f o r s a w m i l l i n g o p e r a t i o n s w e r e s o l d t o t h e d e v e l o p e r s o f p u l p a n d p a p e r m i l l s a n d c o m m i t t e d t o t h i s u s e . The l u m b e r i n d u s t r y t h u s l o s t i t s s o u r c e o f l o g s u p p l y i n t h e i n t e r i o r o f t h e I s l a n d . T h e r e w e r e 97 l i c e n s e s i s s u e d f o r L a b r a d o r b u t n o n e o f t h e s e w e r e s u c c e s s f u l l y d e v e l o p e d a n d b y 1952 t h e y h a d a l l e x p i r e d o r b e e n c a n c e l l e d . A l t h o u g h t h e r e w e r e s e v e r a l u n u s u a l i m p e d i m e n t s t o d e v e l o p m e n t i n L a b r a d o r , i t i s d i f f i c u l t t o e s c a p e t h e c o n c l u s i o n t h a t , e v e n i f t h e s e b a r r i e r s h a d n o t e x i s t e d , t h e e s t a b l i s h m e n t o f s u c c e s s f u l l a r g e - s c a l e f o r e s t i n d u s t r y t h e r e was h i g h l y u n l i k e l y . A f t e r 194-9? "the g o v e r n m e n t made t h e b e s t f o r e s t a r e a s a v a i l a b l e t o a n u m b e r o f p o t e n t i a l d e v e l o p e r s b u t e v e n s i m p l e e x p o r t p u l p w o o d o p e r a t i o n s h a v e n o t p r o v e n t o be v i a b l e a s y e t . The r e c e n t e x p e r i e n c e o f d e v e l o p m e n t a t t e m p t s i n L a b r a d o r i n d i c a t e t h a t t h e t i m b e r r e s o u r c e t h e r e i s s u b -m a r g i n a l , o r a t b e s t m a r g i n a l , f o r l a r g e - s c a l e f o r e s t - b a s e d d e v e l o p m e n t . The h i s t o r y o f t h e p u l p a n d p a p e r i n d u s t r y on t h e I s l a n d a l s o s u g g e s t s t h a t i n - o n l y a f e w c a s e s wa s t h e r e a n y e c o n o m i c r e n t t o be e a r n e d i n t h e d e v e l o p m e n t o f t i m b e r 182 l a n d s f o r t h i s p u r p o s e . O f t e n m a j o r d e v e l o p m e n t a t t e m p t s d o c u m e n t e d , o n l y t w o c o u l d be c o n s i d e r e d s u c c e s s f u l l o n g -t e r m o p e r a t i o n s . The m i l l s a t B l a c k R i v e r a n d C a m p b e l l t o n f a i l e d f o r t e c h n i c a l r e a s o n s b e f o r e t h e l o n g - t e r m v i a b i l i t y o f t h e t i m b e r l i m i t s c o u l d b e e s t a b l i s h e d . The m i l l a t B i s h o p s F a l l s r a n f o r 40 y e a r s , b u t i n i t i a l l y i t was n o t p r o f i t a b l e a n d c o u l d o n l y be c o n t i n u e d a s a s u p p o r t i n g o p e r a t i o n t o t h e G r a n d F a l l s m i l l . The m i l l a t G l o v e r t o w n n e v e r o p e r a t e d a n d t h e A n g l o - N e w f o u n d l a n d D e v e l o p m e n t Company c l a i m e d i t c o u l d n o t h a v e b e e n p r o f i t a b l e . O f t h e o t h e r d e v e l o p m e n t a t t e m p t s , t h e l i m i t s f o r t h e p r o p o s e d m i l l a t R o t i B a y , a l t h o u g h l a r g e i n a r e a ( 3 , 1 2 5 s q u a r e m i l e s ) , w e r e f o u n d t o c o n t a i n i n a d e q u a t e wood s u p p l i e s a n d w e r e d e f i n i t e l y s u b m a r g i n a l . The l i m i t s f o r t h e p r o p o s e d Bonne B a y a n d S o p p s A rm d e v e l o p m e n t s w e r e r e l a t i v e l y s m a l l (243 a n d 942 s q u a r e m i l e s r e s p e c t i v e l y ) and, i n r e t r o s p e c t , i t i s d i f f i c u l t t o s e e how s u c c e s s f u l m i l l s c o u l d h a v e b e e n e s t a b l i s h e d i n t h e s e a r e a s . The G a n d e r p r o p o s a l o f t h e R e i d s came c l o s e t o b e i n g d e v e l o p e d b u t e v e n t h o u g h t h e t i m b e r l i m i t s c o n t a i n e d 3 , 1 5 2 s q u a r e m i l e s o f r e l a t i v e l y g o o d q u a l i t y f o r e s t i n C e n t r a l a n d W e s t e r n N e w f o u n d l a n d , t h e s cheme w a s n o t e c o n o m i c a l l y v i a b l e . The t w o d e v e l o p m e n t a t t e m p t s i n t h e p u l p a n d p a p e r i n d u s t r y t h a t h a v e p r o v e n t o b e m a r g i n a l o r i n t r a m a r g i n a l o v e r t i m e a r e t h e m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k . T h e i r s u c c e s s , i n t h e a b s e n c e o f g o v e r n m e n t s u b s i d i e s a n d 183 i n c o n t r a s t t o t h e f a i l u r e o f o t h e r m i l l s , i n d i c a t e s t h a t v i a b l e o p e r a t i o n s i n t h e p u l p a n d p a p e r i n d u s t r y w e r e f e a s i b l e a t o n l y t w o l o c a t i o n s a n d o n l y f o r l a r g e - s c a l e m i l l s . The o w n e r s o f t h e G r a n d F a l l s m i l l p a i d $ 4 . 5 m i l l i o n f o r a c q u i s i t i o n o f l i m i t a r e a s b e t w e e n 1905 a n d I 9 6 2 . S i m i l a r l y t h e o w n e r s o f t h e C o r n e r B r o o k m i l l p a i d a t o t a l o f $ 1 6 . 0 2 m i l l i o n b e t w e e n 1923 a n d 1953• T h i s i n d i c a t e s t h a t t h e i n t e r i o r t i m b e r r e s o u r c e was d e f i n i t e l y i n t r a m a r g i n a l f o r t h e o p e r a t i o n o f t h e s e t w o m i l l s . U n f o r t u n a t e l y n e i t h e r f i g u r e c a n be t a k e n a s a n e s t i m a t e o f t i m b e r v a l u e s a l o n e , b e c a u s e o t h e r a s s e t s a n d p r o p e r t y v a l u e s w e r e o f t e n i n c l u d e d i n a p u r c h a s e a n d u s u a l l y t i m b e r v a l u e s w e r e n o t r e c o r d e d s e p a r a t e l y . H o w e v e r t h e m a i n r e a s o n f o r m o s t o f t h e l i m i t a c q u i s i t i o n s f o r t h e s e m i l l s wa s t o o b t a i n a d d i t i o n a l t i m b e r s u p p l i e s . I t i s t h e r e f o r e r e a s o n a b l e t o a t t r i b u t e m o s t o f t h e c o s t o f l i m i t a c q u i s i t i o n t o t i m b e r v a l u e s . H i s t o r i c a l r e c o r d s o f t i m b e r l i c e n s e s a l e s i n d i c a t e some s u r p l u s m a r k e t v a l u e i n e x c e s s o f g o v e r n m e n t c h a r g e s . A s shown i n C h a p t e r V I I , b e t w e e n 1901 a n d 1920 (when m o s t o f t h e l i c e n s e s w e r e i s s u e d ) t h e e s t i m a t e d m a r k e t v a l u e o f t h e l i c e n s e d a r e a s a l l o c a t e d was $144 p e r s q u a r e m i l e , o r $ 2 , 4 7 9 m i l l i o n . T h i s s u r p l u s v a l u e i s p r o b a b l y a t t r i b u t a b l e a s much t o s p e c u l a t i o n a s t o t h e e x i s t e n c e o f r e a l s u r p l u s e c o n o m i c r e n t i n many o f t h e t i m b e r l i c e n s e s t h a t w e r e b e i n g t r a d e d . I n d i c a t i o n s a r e t h a t e v e n some o f t h e l a r g e r ( a n d p r e s u m a b l y mo re s o p h i s t i c a t e d ) c o m p a n i e s p a i d m o r e f o r t i m b e r 184 l i m i t s t h a n t h e y w e r e r e a l l y w o r t h , p r o b a b l y i n a n t i c i p a t i o n o f i n c r e a s i n g v a l u e s . Up t o 1 9 2 8 , $ 8 . 2 0 m i l l i o n h a d b e e n p a i d f o r t i m b e r l i m i t s f o r t h e C o r n e r B r o o k m i l l , b u t t h e s e w e r e r e v a l u e d a t $ 2 . 5 0 m i l l i o n w h e n t h e m i l l w a s a c q u i r e d i n t h a t y e a r b y t h e I n t e r n a t i o n a l P a p e r Company . The R e i d i n t e r e s t s p a i d c o n s i d e r a b l e sums f o r t h e t i m b e r t h e y a c q u i r e d i n t h e 1 9 2 0 * s f o r t h e p r o p o s e d G a n d e r d e v e l o p m e n t w h i c h f a i l e d t o m a t e r i a l i z e . A n u m b e r o f d e v e l o p e r s l o s t t h e s u b s t a n t i a l i n v e s t m e n t s t h e y made t o a c q u i r e a n d h o l d t i m b e r l i c e n s e s i n L a b r a d o r . The $ 2 , 4 7 9 m i l l i o n e s t i m a t e i s a n i n d i c a t i o n o f t h e a d d i t i o n a l v a l u e t h a t c o u l d h a v e b e e n r e c o v e r e d f r o m t h e l i c e n s e e s i f t h e o b j e c t i v e s o f g o v e r n m e n t w e r e s o l e l y r e v e n u e m a x i m i z a t i o n a n d i f i t h a d b e e n w i l l i n g t o p r o c e e d m o r e s l o w l y a n d a l l o c a t e t i m b e r r e s o u r c e s t o t h e h i g h e s t b i d d e r s o v e r a l o n g e r p e r i o d o f t i m e . B u t t h e m a i n c o n c e r n o f g o v e r n m e n t wa s r a p i d d e v e l o p m e n t o f t h e r e s o u r c e a n d t h e o u t s t a n d i n g f e a t u r e o f f o r e s t r e s o u r c e i n v e s t m e n t s i n N e w -f o u n d l a n d d u r i n g t h e e a r l y p a r t o f t h e p r e s e n t c e n t u r y wa s t h e h i g h d e g r e e o f r i s k i n v o l v e d . A n y l a r g e - s c a l e d e v e l o p -men t h a d t o be b a s e d on e x p o r t m a r k e t s w h i c h c o u l d n o t be i n f l u e n c e d b y l o c a l e v e n t s o r c o n d i t i o n s . B e s i d e s t h e s e m a r k e t u n c e r t a i n t i e s , i n v e s t m e n t s i n N e w f o u n d l a n d i n v o l v e d s u b s t a n t i a l a d d i t i o n a l r i s k s . P u b l i c f a c i l i t i e s a n d s e r v i c e s w e r e a t a v e r y l o w l e v e l a n d f o r e s t management a n d p r o t e c t i o n w e r e l a r g e l y t h e r e s p o n s i b i l i t y o f t h e t i m b e r o w n e r . I n m o s t 185 c a s e s , k n o w l e d g e o f t h e q u a n t i t y a n d q u a l i t y o f t h e t i m b e r wa s i n a d e q u a t e , a n d d i f f i c u l t a n d e x p e n s i v e t o o b t a i n . I t i s n o t s u r p r i s i n g t h a t t h e f a i l u r e r a t e wa s h i g h a n d t h a t p o t e n t i a l d e v e l o p e r s t r i e d t o o b t a i n t h e b e s t p o s s i b l e t e r m s a n d c o n d i t i o n s i n t h e i r t i m b e r l i c e n s e s . The g o v e r n m e n t , a n x i o u s t o i n c r e a s e j o b o p p o r t u n i t i e s t h r o u g h t h e e s t a b l i s h -men t o f r e s o u r c e - b a s e d i n d u s t r i e s , wa s n e c e s s a r i l y f l e x i b l e when i t came t o a g r e e i n g t o l e s s s t r i n g e n t t e r m s a n d c o n d i t i o n s f o r t h e a l l o c a t i o n o f t i m b e r . I t w a s t h e e l e m e n t o f r i s k t h e n , w h i c h made I t n e c e s s a r y t o k e e p g o v e r n m e n t r e s o u r c e c h a r g e s a t a l o w l e v e l . S i n c e d e v e l o p m e n t wa s c l e a r l y p e r c e i v e d t o be t h e r e s p o n s i -b i l i t y o f t h e p r i v a t e s e c t o r , s i g n i f i c a n t i n c e n t i v e s h a d t o be p r o v i d e d t o e n c o u r a g e i n v e s t m e n t . The $2.4-79 m i l l i o n i s a n i n d i c a t i o n o f t h e c o s t ( i n f o r e g o n e d i r e c t r e v e n u e s ) t o t h e g o v e r n m e n t o f e n c o u r a g i n g e a r l y d e v e l o p m e n t . T h i s a m o u n t s t o a n a v e r a g e r e v e n u e l o s s o f a b o u t $124,000 p e r y e a r f o r t h e p e r i o d 1901-1920, w h i c h a l t h o u g h s i g n i f i c a n t , w o u l d p e r h a p s h a v e b e e n c o n s i d e r e d a n a c c e p t a b l e c o s t i f i t c o u l d h a v e b e e n c a l c u l a t e d a t t h e t i m e . P r i c e s f o r t i m b e r l a n d s i n c r e a s e d i n t h e 1 9 2 0 ' s , d e c r e a s e d i n t h e 1 9 3 0 ' s a n d r o s e a g a i n i n t h e 1 9 4 0 ' s a n d 1 9 5 0 ' s . T h i s r e f l e c t s t h e c h a n g i n g e x p e c t a t i o n s o f b u y e r s a n d s e l l e r s w i t h r e s p e c t t o t h e c a p i t a l i z e d v a l u e o f r e n t s t h a t c o u l d be r e c e i v e d b y o w n e r s o f t h e r e s o u r c e . E x p e c t -a t i o n s w e r e f a i r l y h i g h i n t h e 1 9 2 0 ? s b e c a u s e a n u m b e r o f 186 l a r g e - s c a l e p r o j e c t s w e r e i n t h e p l a n n i n g a n d c o n s t r u c t i o n s t a g e s . The d r o p i n v a l u e d u r i n g t h e 1 9 3 0 " s r e f l e c t s t h e i n f l u e n c e o f t h e d e p r e s s i o n w h i l e t h e h i g h e r p r i c e s p a i d t h e r e a f t e r i n d i c a t e i n c r e a s i n g e s t i m a t e s o f v a l u e f o r t i m b e r l a n d s . I t i s r e a s o n a b l e t o e x p e c t t h a t s a l e s o f t i m b e r l i c e n s e s w o u l d i n c r e a s e i n v a l u e o v e r t i m e . A s m o r e k n o w l e d g e a b o u t t h e r e s o u r c e was a c c u m u l a t e d , l o w v a l u e a r e a s w o u l d be i d e n t i f i e d a n d s a l e s w o u l d t e n d t o be c o n -c e n t r a t e d i n t h e h i g h e r v a l u e a r e a s . E v e n t h o u g h t w o m i l l s p r o v e d t o be s u c c e s s f u l a n d i n d i c a t i o n s a r e t h a t e c o n o m i c r e n t s w e r e e a r n e d on t h e t i m b e r r e s o u r c e i n t h e l o n g r u n , i t i s d i f f i c u l t t o s e e how t h e G o v e r n m e n t c o u l d h a v e a n t i c i p a t e d t h i s a t t h e t i m e t i m b e r a l l o c a t i o n p o l i c i e s w e r e f o r m u l a t e d . T h e r e was l i t t l e k n o w l e d g e o f t h e r e s o u r c e a n d t h e G o v e r n m e n t h a d v e r y l i m i t e d c a p a b i l i t y t o a c q u i r e s u c h i n f o r m a t i o n . The r e s o u r c e p r o v e d t o be s u b m a r g i n a l f o r t h e s m a l l p u l p m i l l s a n d s a w m i l l s t h a t w e r e o r i g i n a l l y e n v i s a g e d b y t h e l e g i s l a t o r s . W i t h e v i d e n c e o f f a i l i n g f o r e s t i n d u s t r i e s a l l a r o u n d a n d h i g h u n e m p l o y -men t , t h e G o v e r n m e n t w a s i n no p o s i t i o n t o h o l d o u t f o r h i g h e r r e n t s a n d r o y a l t i e s f r o m p o t e n t i a l d e v e l o p e r s . I t a l s o h a d no way o f a n t i c i p a t i n g t h e k i n d o f l a r g e - s c a l e m i l l s t h a t e v e n t u a l l y became e s t a b l i s h e d a t G r a n d F a l l s a n d C o r n e r B r o o k a n d t h e a m o u n t s t h e i r o w n e r s w o u l d b e w i l l i n g t o p a y f o r t i m b e r s u p p l i e s . A n y a t t e m p t s b y G o v e r n m e n t t o r e c o v e r some o f t h i s s u r p l u s t i m b e r v a l u e w o u l d p r o b a b l y h a v e h a d t h e 187 e f f e c t o f s t i f l i n g t h e d e v e l o p m e n t t h a t wa s o c c u r r i n g a t t h e two v i a b l e p u l p a n d p a p e r m i l l s i t e s on t h e I s l a n d . isg CHAPTER X I CONCENTRATION OF T IMBER OWNERSHIP The t h i r d h y p o t h e s i s , a s s t a t e d i n C h a p t e r I w a s : The e a r l y t i m b e r a l l o c a t i o n p o l i c i e s l e d t o undue c o n c e n t r a t i o n o f o w n e r s h i p o f t h e i n t e r i o r t i m b e r r e s o u r c e on t h e I s l a n d o f N e w f o u n d l a n d . I n i t i a l l y t h e t i m b e r a l l o c a t i o n s y s t e m e n c o u r a g e d a s u b s t a n t i a l n u m b e r o f d e v e l o p m e n t a t t e m p t s b y m a k i n g i t r e l a t i v e l y e a s y f o r i n d i v i d u a l s o r c o m p a n i e s t o a c q u i r e c u t t i n g r i g h t s t o C r o w n t i m b e r . The t i m b e r o w n e r s h i p p a t t e r n o f 1 914 i n d i c a t e s t h a t t h e r e was v e r y l i t t l e c o n c e n t r a t i o n o f o w n e r s h i p a t t h a t p o i n t i n t i m e . Map 1 i n A p p e n d i x 7 s hows t h a t t h e t i m b e r w a s i n i t i a l l y owned b y a l a r g e n u m b e r o f i n d i v i d u a l s a n d c o m p a n i e s . A l l o f t h e s e o w n e r s h a d t h e o p p o r t u n i t y t o d e v e l o p t h e i r l i c e n s e s . Many o f t h e s a w m i l l s t h a t w e r e e s t a b l i s h e d f a i l e d a s d i d m o s t o f t h e a t t e m p t s t o e s t a b l i s h p u l p m i l l s . The c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p o n l y o c c u r r e d a s i t became a p p a r e n t t h a t t h e r e s o u r c e w a s m a r g i n a l o r s u b m a r g i n a l f o r many o f t h e s e p r o p o s e d d e v e l o p -m e n t s b u t i n t r a m a r g i n a l f o r l a r g e r m i l l s l i k e t h e one e s -t a b l i s h e d a t G r a n d F a l l s . T h i s f a c t wa s r e c o g n i z e d b y b o t h t h e G o v e r n m e n t a n d t h e l i c e n s e h o l d e r s , a n d s e t t h e s t a g e f o r t h e c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p t h a t wa s t o o c c u r a r o u n d t h e m i l l s i t e s a t G r a n d F a l l s a n d C o r n e r B r o o k . 189 The t i m b e r a l l o c a t i o n p o l i c i e s o f t h e g o v e r n m e n t d i d make i t e a s y f o r t h e p r o m o t e r s o f p r o m i s i n g d e v e l o p -m e n t s t o a c q u i r e t h e l i c e n s e s o f o t h e r s a n d f a c i l i t a t e d t h e c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p t h a t d i d o c c u r on t h e I s l a n d . The m a r k e t f o r t i m b e r l i c e n s e s w a s e f f e c t i v e i n a l l o c a t i n g t i m b e r f r o m n o n v i a b l e t o v i a b l e d e v e l o p m e n t a l t e r n a t i v e s . The l i m i t a r e a s o f t h e G r a n d F a l l s a n d C o r n e r B r o o k m i l l s w e r e f a i r l y m o d e s t when t h e s e p l a n t s w e r e f i r s t e s t a b l i s h e d (2 ,314 a n d 2,031 s q u a r e m i l e s r e s p e c t -i v e l y ) . M o s t o f t h e a d d i t i o n a l a r e a s o f b o t h c o m p a n i e s w e r e a c q u i r e d b y p u r c h a s i n g t h e t i m b e r l i c e n s e s o f o t h e r s w h o , f o r v a r i o u s r e a s o n s , h a d n o t d e v e l o p e d t h e i r l i c e n s e s . A s t h e s e o t h e r a t t e m p t s f a i l e d , t h e l i c e n s e s w e r e p u r c h a s e d f o r t h e m i l l s a t C o r n e r B r o o k a n d G r a n d F a l l s . I n t h e a b s e n c e o f i n f o r m a t i o n on t h e v o l u m e s o f t i m b e r on l i c e n s e d a r e a s ( a t t h e t i m e t h e y w e r e p u r c h a s e d ) i t i s d i f f i c u l t t o s a y , w i t h p r e c i s i o n , t o w h a t e x t e n t t h e G r a n d F a l l s a n d C o r n e r B r o o k m i l l s a c q u i r e d t i m b e r i n e x c e s s o f t h e i r n e e d s . A s t h e i r l i m i t s became l a r g e r , b o t h m i l l s i n c r e a s e d p l a n t c a p a c i t y . The c a p a c i t y o f t h e G r a n d F a l l s m i l l i n c r e a s e d f r o m 40 ,000 t o n s p e r y e a r i n 1909 t o 350,000 t o n s i n 1972. S i m i l a r l y t h e C o r n e r B r o o k m i l l i n c r e a s e d i n s i z e f r o m 120,000 t o n s p e r y e a r i n 1925 t o 354,000 t o n s i n 1972. W h i l e i t i s q u i t e p o s s i b l e t h a t b o t h m i l l s may h a v e h e l d t i m b e r v o l u m e s i n e x c e s s o f t h e i r 1 9 0 n e e d s a t v a r i o u s t i m e s i n t h e p a s t , i t i s n o t c l e a r t h a t t h e r e w e r e o t h e r a l t e r n a t i v e e c o n o m i c a l l y v i a b l e l a r g e -s c a l e d e v e l o p m e n t o p p o r t u n i t i e s f o r t h i s s u r p l u s t i m b e r d u r i n g t h e f i r s t h a l f o f t h e p r e s e n t c e n t u r y . A n y v o l u m e s u r p l u s t o company n e e d s w o u l d h a v e b e e n l o c a t e d i n t h e mo re i n a c c e s s i b l e p a r t s o f t h e i r l i m i t a r e a s , s i n c e n e i t h e r company w o u l d l i k e l y be w i l l i n g t o p a r t w i t h wood s u p p l i e s c l o s e t o t h e i r m i l l s . The h i s t o r y o f d e v e l o p m e n t a t t e m p t s a t t h e s e o t h e r l o c a t i o n s h a s n o t b e e n g o o d . T h u s , w h i l e t h e r e may h a v e b e e n some s u r p l u s t i m b e r i n a p h y s i c a l s e n s e , i t i s d o u b t f u l t h a t t h e r e w e r e l a r g e s u r p l u s s u p p l i e s o f t i m b e r t h a t c o u l d h a v e b e e n e c o n o m i c a l l y u t i l i z e d b y a l a r g e - s c a l e i n d u s t r i a l p l a n t . Some s u r p l u s wood s u p p l i e s m i g h t p o s s i b l y h a v e b e e n p r o v i d e d t o t h e l o c a l s a w m i l l i n d u s t r y t o r e d u c e c u t t i n g p r e s s u r e on p a r t s o f t h e t h r e e - m i l e l i m i t . T h e r e i s no i n d i c a t i o n t h a t t h e g o v e r n m e n t r e q u e s t e d t h i s a n d i n a n y c a s e , t h e c o m p a n i e s w o u l d h a v e b e e n r e l u c t a n t t o o p e n up t h e i r l i m i t a r e a s t o t h e k i n d o f u n c o n t r o l l e d c u t t i n g t h a t wa s p r a c t i c e d on t h e c o a s t a l f o r e s t . I f company l i m i t s w e r e made a c c e s s i b l e t o s m a l l s a w m i l l o p e r a t o r s i n one a r e a , t h e r e w o u l d i m m e d i a t e l y h a v e b e e n r e q u e s t s f o r c u t t i n g r i g h t s b y m i l l o p e r a t o r s i n o t h e r a r e a s a n d t h e c o m p a n i e s c o u l d h a v e l o s t c o n t r o l o f t h e h a r v e s t i n g on s u b s t a n t i a l p o r t i o n s o f t h e i r l i m i t s . The l i n e s e p a r a t i n g t h e t h r e e m i l e l i m i t f r o m c o m p a n y - h e l d a r e a s t h u s became a k i n d o f b o r d e r t h a t t h e c o m p a n i e s d e f e n d e d a g a i n s t 1 9 1 e n c r o a c h m e n t s f r o m t h e r u r a l p o p u l a t i o n on t h e c o a s t . The g o v e r n m e n t , u n t i l r e c e n t y e a r s w i t h o u t a c c u r a t e i n v e n t o r y i n f o r m a t i o n on t h e f o r e s t s on e i t h e r s i d e o f t h e b o r d e r , a n d a n x i o u s n o t t o d i s t u r b t h e company o p e r -a t i o n s a n d t h e j o b s t h e y p r o v i d e d , d i d n o t p r e s s f o r a n y c h a n g e i n t h e s t a t u s q u o . The d e v e l o p m e n t o f i n l a n d f o r e s t a r e a s r e s u l t e d i n s u b s t a n t i a l g r o w t h i n t h e f o r e s t r y s e c t o r . The h i s t o r -i c a l r e c o r d i n d i c a t e s t h a t t h e t i m b e r a l l o c a t i o n s y s t e m f a c i l i t a t e d t h i s g r o w t h r a t h e r t h a n r e t a r d i n g i t . B e n e f i t s t o t h e p e o p l e i n t h e f o r m o f j o b s a n d i n c o m e h a v e b e e n s u b -s t a n t i a l s i n c e t h e e a r l y 1 9 0 0 ' s . I t i s p o s s i b l e t o i m a g i n e o t h e r d e v e l o p m e n t s i n t h e i n t e r i o r t h a t m i g h t h a v e r e s u l t e d i n a d d i t i o n a l j o b s a n d i n c o m e h a d a d d i t i o n a l t i m b e r r e s o u r c e s b e e n a v a i l a b l e . The h i s t o r i c a l r e c o r d i n d i c a t e s t h a t t h e s e r e s o u r c e s w e r e n o t a v a i l a b l e i n s u f f i c i e n t q u a n t i t y a n d q u a l i t y , a n d t h e l i m i t i n g f a c t o r t o f u r t h e r l a r g e - s c a l e d e v e l o p m e n t h a s b e e n t h e m a r g i n a l a n d s u b -m a r g i n a l q u a l i t y o f a v a i l a b l e t i m b e r s u p p l i e s r a t h e r t h a n t h e t i m b e r a l l o c a t i o n s y s t e m . A s i n d i c a t e d , s i n c e c o n f e d e r a t i o n w i t h C a n a d a i n 194-9, t h e N e w f o u n d l a n d G o v e r n m e n t h a s made s t r e n u o u s e f f o r t s t o b r i n g a b o u t t h e e s t a b l i s h m e n t o f a d d i t i o n a l l a r g e - s c a l e f o r e s t - b a s e d i n d u s t r i e s . D u r i n g t h e 1 9 5 0 ' s a n d 1 9 6 0 ' s t h e e m p h a s i s wa s on t h e e s t a b l i s h m e n t o f a n e w s p r i n t m i l l on t h e e a s t c o a s t o f t h e I s l a n d . T h i s 192 m i l l was never b u i l t so i t i s d i f f i c u l t to know f o r certain (without access to a considerable amount of c o n f i d e n t i a l information) i f i t could have been economically v i a b l e , although the h i s t o r i c a l record of other development attempts casts some doubt on the matter. I f , f o r the purposes of evaluation of p o l i c y , we assume that i t was a p o t e n t i a l l y v i a b l e m i l l , then i t can be said that the timber ownership pattern was a major impediment to i t s establishment. The Government, issuing 99-year licenses i n the early 1900 *s with no e f f e c t i v e provision f o r change i n t h e i r terms and conditions, created obstacles to l a t e r i n i t i a t i v e s i n forest resource development. However, these terms and conditions were set to encourage a desired rate of development and represented a r e t r e a t from e a r l i e r positions taken by the Government. I f the possible future concentration of timber ownership and impediments to action had been foreseen, greater e f f o r t might have been made to develop a more f l e x i b l e timber license document. A l t e r n a t i v e l y , consider-ing the p r i o r i t i e s of the time, these p o s s i b i l i t i e s , i f they were considered at a l l , were probably dismissed as an acceptable cost of encouraging development i n the short run. I f the east coast m i l l was not a p o t e n t i a l l y viable plant, then the f a c t that part of i t s proposed wood supply was t i e d up i n long-term timber licenses held by others, i s not a serious c r i t i c i s m of the early timber a l l o c a t i o n p o l i c i e s . These p o l i c i e s would s t i l l have to 193 b e j u d g e d a s h a v i n g a l l o c a t e d t h e r e s o u r c e t o t h e m o s t p r o m i s i n g d e v e l o p m e n t s , w h i c h w e r e t h e m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k . D u r i n g t h e 1 9 7 0 ' s t h e l i n e r b o a r d m i l l wa s e s t a b -l i s h e d a t S t e p h e n v i l l e . T h i s p l a n t wa s s u p p o s e d t o u t i l i z e wood f r o m L a b r a d o r b u t t h i s s u p p l y p r o v e d t o be v e r y e x p e n s i v e so a t t e m p t s w e r e made t o s e c u r e p a r t o f t h e r e q u i r e m e n t s f r o m t h e I s l a n d . Some wood was o b t a i n e d f r o m b o t h a l i e n a t e d a n d n o n a l i e n a t e d c r o w n l a n d s b u t t h e company w a s s t i l l p a r t i a l l y d e p e n d e n t on wood f r o m L a b r a d o r a n d was n o t a b l e t o a c h i e v e a n a v e r a g e wood c o s t l o w e n o u g h t o make t h e m i l l v i a b l e a s a l i n e r b o a r d p r o d u c e r . B e s e t b y s e v e r e m a r k e t i n g p r o b l e m s a n d o t h e r d i f f i c u l t i e s a s w e l l , t h e m i l l w a s c l o s e d i n 1 9 7 7 . The q u e s t i o n o f i n t e r e s t h e r e i s t h e e x t e n t t o w h i c h t h e e a r l y t i m b e r a l l o c a t i o n p o l i c i e s a n d t h e r e s u l t i n g t i m b e r o w n e r s h i p p a t t e r n w e r e r e s p o n s i b l e f o r t h e wood s u p p l y p r o b l e m s o f t h e S t e p h e n v i l l e l i n e r b o a r d m i l l . A s h a s b e e n s h o w n , t h e C o r n e r B r o o k m i l l was e s t a b l i s h e d l o n g b e f o r e t h e S t e p h e n v i l l e m i l l a n d w a s b a s e d on t h e wood r e s o u r c e s o f t h e w e s t c o a s t , i n c l u d i n g t h e a r e a s a r o u n d S t e p h e n v i l l e t h a t w e r e b e y o n d t h e t h r e e - m i l e l i m i t . T h e s e a r e a s c o n t i n u e t o f o r m a n i m p o r t a n t p a r t o f t h e e c o n o m i c wood s u p p l y f o r t h e C o r n e r B r o o k m i l l . The S t e p h e n v i l l e m i l l i s l o c a t e d o n l y s i x t y m i l e s f r o m C o r n e r B r o o k ( F i g u r e 1 ) . A s i d e f r o m some l i m i t e d a r e a s o f n o n a l i e n a t e d 194 C r o w n l a n d s , t h e o n l y o t h e r wood s u p p l y f o r t h e S t e p h e n v i l l e m i l l on t h e w e s t c o a s t i s l o c a t e d on l i m i t s h e l d b y B o w a t e r f o r t h e C o r n e r B r o o k m i l l . T h u s t h e m o s t e c o n o m i c wood s u p p l y a r e a s on t h e I s l a n d f o r b o t h m i l l s o v e r l a p a n d i t i s d i f f i c u l t t o s e e how an e x t e n s i v e l i m i t c a n be e s t a b l i s h e d n e a r t h e S t e p h e n v i l l e m i l l w i t h o u t h a v i n g s e r i o u s e f f e c t s on t h e e c o n o m i c wood s u p p l y f o r t h e C o r n e r B r o o k m i l l . T h i s p r o b l e m i s p r e s e n t l y u n d e r i n t e n s i v e s t u d y a n d r e v i e w b y g o v e r n m e n t a n d a s o l u t i o n may u l t i m a t e l y be f o u n d . The i m p o r t a n t p o i n t t o n o t e h e r e i s t h a t t h e e a r l y t i m b e r a l l o c a t i o n p o l i c i e s s h o u l d n o t be h e l d r e s p o n s i b l e f o r t h e p r e s e n t - d a y wood s u p p l y p r o b l e m s o f t h e S t e p h e n v i l l e m i l l . T h e s e a r e mo re a r e f l e c t i o n on t h e i n a d e q u a t e p l a n n i n g w h i c h r e s u l t e d i n a m i l l b e i n g c o n s t r u c t e d w i t h o u t a n e c o n o m i c wood s u p p l y b e i n g c l e a r l y e s t a b l i s h e d . I n summary , i t c a n be s a i d t h a t t h e e a r l y t i m b e r a l l o c a t i o n p o l i c i e s d i d l e a d t o a c o n c e n t r a t i o n o f t i m b e r o w n e r s h i p on t h e I s l a n d i n t o t w o f i r m s . T h e r e was a l s o n o t h i n g i n t h e t i m b e r a l l o c a t i o n s y s t e m t o p r e v e n t t h e s e f i r m s f r o m a c q u i r i n g t i m b e r r e s o u r c e s i n e x c e s s o f t h e i r n e e d s a n d t h i s may h a v e h a p p e n e d t o a d e g r e e . O w n e r s h i p o f t h e i n t e r i o r f o r e s t r e s o u r c e b y t h e p u l p a n d p a p e r c o m p a n i e s h a s a c t e d a s a b a r r i e r t o t h e r e - e n t r y o f t h e l u m b e r i n d u s t r y t o i n l a n d t i m b e r a r e a s . B u t i t i s d i f f i c u l t t o s a y w i t h a n y d e g r e e o f c e r t a i n t y t h a t s i g n i f i c a n t p o r t i o n s o f t h e i n t e r i o r r e s o u r c e w o u l d h a v e p r o v e n t o be i n t r a m a r g i n a l f o r t h i s 195 i n d u s t r y h a d t h e y b e e n made a v a i l a b l e . R e c e n t a t t e m p t s b y t h e l u m b e r i n d u s t r y t o e s t a b l i s h on t h e s e i n t e r i o r a r e a s •w i th t h e c o - o p e r a t i o n o f t h e p u l p a n d p a p e r c o m p a n i e s a n d t h e G o v e r n m e n t , h a v e n o t p r o v e n t o b e v e r y s u c c e s s f u l t o d a t e ( C h a p t e r V I I I ) . C o n c e n t r a t i o n o f t i m b e r o w n e r s h i p i n t h e t w o p u l p a n d p a p e r c o m p a n i e s h a s a l s o a c t e d a s a b a r r i e r t o f u r t h e r l a r g e - s c a l e f o r e s t d e v e l o p m e n t a t t e m p t s on t h e I s l a n d . B u t i t i s b y no means c l e a r t h a t t h e r e w e r e s u f f i c i e n t r e s o u r c e s i n e x c e s s o f t h e n e e d s o f t h e G r a n d F a l l s a n d C o r n e r B r o o k m i l l s t o s u p p l y t h e s e o t h e r d e v e l o p m e n t s . The h i s t o r i c r e c o r d s u g g e s t s t h a t t h e m a i n i m p e d i m e n t t o t h e e s t a b l i s h m e n t o f a d d i t i o n a l s u c c e s s f u l l a r g e - s c a l e f o r e s t - b a s e d i n d u s t r y on t h e I s l a n d h a s n o t b e e n t h e p r e s e n t t i m b e r o w n e r s h i p p a t t e r n r e s u l t i n g f r o m t h e e a r l y t i m b e r a l l o c a t i o n s y s t e m b u t t h e l a c k o f s u f f i c i e n t q u a n t i t i e s o f a d d i t i o n a l m a r g i n a l a n d i n t r a m a r g i n a l t i m b e r t o s u p p o r t e c o n o m i c a l l y v i a b l e p l a n t s . PART I V CONCLUSIONS CHAPTER X I I . CONCLUSIONS AND RECOMMENDATIONS 197 CHAPTER X I I CONCLUSIONS AND RECOMMENDATIONS A v a i l a b l e e v i d e n c e s u p p o r t s t h e f i r s t h y p o t h e s i s , m a i n l y w i t h r e s p e c t t o t h e d e v e l o p m e n t o f t i m b e r a l l o c a t i o n p o l i c y f o r t h e c o a s t a l f o r e s t . The i m p o r t a n c e a n d s p e c i a l f u n c t i o n o f t h e c o a s t a l f o r e s t w a s i m p l i c i t l y r e c o g n i z e d b y t h e G o v e r n m e n t when t h e t i m b e r a l l o c a t i o n s y s t e m w a s d e v e l o p e d d u r i n g t h e l a t e 1 8 0 0 f s a n d e a r l y 1 9 0 0 * s . I n e f f e c t , t h e t i m b e r r e s o u r c e b o r d e r i n g t h e c o a s t wa s r e t a i n e d i n p u b l i c , common p r o p e r t y o w n e r s h i p , w h i l e t h e t i m b e r r e s o u r c e o f t h e i n t e r i o r w a s a l l o c a t e d t o t h e p r i v a t e s e c t o r f o r i n d u s t r i a l d e v e l o p m e n t . The i n f l u e n c e o f e a r l y s e t t l e -men t on t h e d e v e l o p m e n t o f i n t e r i o r a r e a s wa s m a i n l y p a s s i v e , i n t h a t i t a l l o w e d d e v e l o p m e n t t o p r o c e e d , a s i t h a d i n some o t h e r p a r t s o f N o r t h A m e r i c a . The c o a s t a l f o r e s t o r t h r e e - m i l e l i m i t a c c o u n t s f o r a b o u t o n e - t h i r d o f t h e t i m b e r on t h e I s l a n d . I t s u n i q u e , h i s t o r i c r o l e i s s t i l l i m p o r t a n t t o d a y a n d i t s h o u l d be f o r m a l l y s a n c t i o n e d i n a n e x p l i c i t s t a t e m e n t o f f o r e s t p o l i c y . T h e p r i m a r y p o l i c y f o r t h e c o a s t a l f o r e s t s h o u l d b e t o manage i t f o r t h e c o n t i n u e d p r o d u c t i o n o f wood p r o d u c t s a n d o t h e r a m e n i t i e s f o r t h e l o c a l r e s i d e n t s . Damage t o t h e r e s o u r c e t h r o u g h common p r o p e r t y u s e c a n b e c o n t r o l l e d b y t h e g o v e r n -men t t h r o u g h t h e i s s u e o f c u t t i n g p e r m i t s a n d r e g u l a t i o n o f 19$ access. This kind of control has been successfully t r i e d i n a number of areas. Parts of the coastal forest which can be shown to be surplus to the needs of l o c a l residents could be allocated to i n d u s t r i a l use. This p o l i c y would make surplus timber supplies i n the coastal forest available f o r possible expansion i n the pulp and paper industry, or f o r the estab-lishment of new wood-using i n d u s t r i e s . The second hypothesis i s not supported by the record. The early timber a l l o c a t i o n p o l i c i e s f o r the forest resources of the i n t e r i o r were not a giveaway of economic rents at the time the resource was being allocated. I n i t i a l l y the Govern-ment t r i e d to capture more economic rent through higher bonus and land rent charges but i n order to encourage development i t was forced to reduce these modest fees to even lower l e v e l s and extend the term of i t s timber licenses from 21 to 99 years. The terms and conditions of the timber licenses were a r e f l e c t i o n of the marginal and submarginal nature of much of the resource at the time i t was being allocated. The key developments f o r the i n t e r i o r i n the early 1900Ts were the establishment of the m i l l s at Grand F a l l s and Bishops F a l l s which were to be supplied from some of the best timber stands on the Island. Since the indications are that the Government got the best terms and conditions i t could f o r access to the resource f o r the best development opportunities 199 then a v a i l a b l e , i t s timber a l l o c a t i o n p o l i c i e s could not properly be described as a giveaway. The value of cutting r i g h t s as indicated by the available information on license sales and the amounts l a t e r paid f o r timber l i m i t acquisitions by the owners of the m i l l s at Grand F a l l s and Corner Brook, >do indicate that parts of the i n t e r i o r forest resource became intramarginal a f t e r the o r i g i n a l a l l o c a t i o n s were made by Government. However, the relevant issue i n assessing the p o l i c i e s as a giveaway, i s whether or not s i g n i f i c a n t l y more rent could have been appropriated by Government at the time the resource was being allocated. Indications are that the Government appropriated as much rent as i t could have at the time. The t h i r d hypothesis i s supported to a l i m i t e d extent. U n t i l recently the concentration of timber ownership on the Island did act as a b a r r i e r to the re-entry of the lumber industry onto i n t e r i o r forest areas. Some addi t i o n a l employment and income may have been l o s t as a re s u l t but i t i s not clear that substantial portions of the i n t e r i o r forest resource would have proven to be intramarginal f o r t h i s industry. The concentration of timber ownership also acted as a b a r r i e r to entry f o r a d d i t i o n a l large-scale f o r e s t -based industry on the Island but i t i s doubtful that s u f f i c i e n t intramarginal resources, i n excess of the require-ments of the two established pulp and paper m i l l s , existed to support these i n d u s t r i e s . 200 Substantial sums of money -were paid by the owners of the Grand F a l l s and Corner Brook m i l l s f o r the timber resources they acquired. A l l of t h e i r major timber l i m i t purchases were made from companies or i n d i v i d u a l s who had f a i l e d to develop plants at other s i t e s . The timber resource which was submarginal f o r these smaller scale developments proved to be intramarginal f o r these two m i l l s . The con-centration of timber ownership was therefore the res u l t of a r a t i o n a l r e a l l o c a t i o n of timber resources from economi-c a l l y nonviable to economically viable developments. For the inland forest areas, there was a consider-able difference between the timber a l l o c a t i o n procedures as outlined i n the Crown Lands Act and the actual practice of the Government i n the issue of timber licenses. Provisions of the Act requiring licensees to erect processing plants of given capacities within s p e c i f i e d time periods were not enforced and many licenses which should have been cancelled f o r nonperformance according to the l e g i s l a t i o n were allowed to remain the property of the licensee. Speculation i n licenses was encouraged. Also, there was some suggestion of c o n f l i c t of i n t e r e s t among some members of the Government, who were also a c t i v e l y involved i n promoting forest-based development. Because of the s o c i a l structure of Newfoundland at the time (Chapter 3) t h i s kind of a c t i v i t y was not strongly censured by the public. 201 H o w e v e r , i t i s n o t c l e a r t h a t t h i s s i t u a t i o n l e d t o a n y l o n g - t e r m a d v e r s e e f f e c t s o n t h e e s t a b l i s h m e n t o f f o r e s t i n d u s t r y . T h e p r o c e d u r e s o f t h e Grown L a n d s A c t , c e r t a i n l y made i t m o r e d i f f i c u l t f o r d e v e l o p e r s t o a c q u i r e a c c e s s t o t i m b e r r e s o u r c e s , t h a n t h e p r o c e d u r e s a d o p t e d b y t h e G o v e r n m e n t . S i n c e t h e m a i n o b j e c t i v e o f G o v e r n m e n t w a s e c o n o m i c e x p a n s i o n , i t c o u l d b e a r g u e d t h a t t h e e a s i e r i t w a s f o r d e v e l o p e r s t o g a i n a c c e s s t o t i m b e r s u p p l i e s , t h e f a s t e r s u c h e x p a n s i o n c o u l d o c c u r . T h u s , w h i l e t h e a d m i n -i s t r a t i v e p r o c e d u r e s a d o p t e d b y t h e G o v e r n m e n t may n o t h a v e b e e n i n s t r i c t a c c o r d w i t h t h e l e g i s l a t i o n , t h e y w e r e p r o b a b l y mo re e f f i c i e n t i n a l l o c a t i n g t h e r e s o u r c e t o t h e p r i v a t e s e c t o r s o t h a t d e v e l o p m e n t c o u l d t a k e p l a c e . I t w a s u n f o r t u n a t e t h a t t h e l e g i s l a t i o n w a s n o t a d j u s t e d t o m o r e c l o s e l y m a t c h c o n d i t i o n s i n t h e r e a l w o r l d a n d t o make i t m o r e c o m p a t i b l e w i t h t h e o v e r a l l o b j e c t i v e o f r a p i d d e v e l o p m e n t . T h i s made f i n a n c i n g d i f f i c u l t f o r some p r o j e c t s b e c a u s e i t b r o u g h t t h e l e g a l i t y o f t h e t i m b e r l i c e n s e s i n t o q u e s t i o n , o n c e t h e p e r i o d f o r e r e c t i o n o f p l a n t s h a d p a s s e d a n d t h e y h a d n o t b e e n b u i l t . T h i s p o i n t s o u t t h e n e e d t o h a v e l e g i s l a t i o n w h i c h i s p r a c t i c a l a n d e n f o r c e a b l e a n d w h i c h i s n o t s o r i g i d t h a t i t r e t a r d s t h e d e v e l o p m e n t p r o c e s s . The e x p e r i e n c e i n N e w f o u n d l a n d i n d i c a t e s t h a t , w h i l e t i m b e r a l l o c a t i o n p o l i c i e s c a n a l l o w d e v e l o p m e n t t o o c c u r , t h e y w i l l n o t n e c e s s a r i l y e n s u r e t h a t i t d o e s o c c u r . 202 The a l l o c a t i o n p r o c e d u r e s u s e d w e r e g e n e r a l l y a p p r o p r i a t e t o t h e c o n d i t i o n s o f t h e t i m e b u t many o f t h e a r e a s a l l o c a t e d , p a r t i c u l a r l y i n L a b r a d o r , w e r e n o t d e v e l o p e d . T h e a l l o c a t i o n s y s t e m p l a y e d a p e r m i s s i v e r o l e i n m a k i n g t h e r e s o u r c e a v a i l a b l e , b u t t h e d e t e r m i n i n g f a c t o r s f o r d e v e l o p m e n t w e r e t h e i n t r a m a r g i n a l , m a r g i n a l o r s u b m a r g i n a l n a t u r e o f t h e r e s o u r c e i t s e l f . T h r e e k i n d s o f d o c u m e n t w e r e u s e d t o a l l o c a t e t h e i n t e r i o r f o r e s t r e s o u r c e : f r e e h o l d g r a n t s , a r e n e w a b l e t i m b e r l e a s e , a n d n o n r e n e w a b l e t i m b e r l i c e n s e s . T h e e f f e c t o f a l l t h r e e w a s t o t r a n s f e r o w n e r s h i p o f t h e r e s o u r c e t o t h e p r i v a t e s e c t o r f o r i n d e f i n i t e o r v e r y l o n g p e r i o d s o f t i m e . B e c a u s e t h e t i m b e r l e a s e t h a t w a s i s s u e d f o r t h e G r a n d F a l l s m i l l c o n t a i n e d a c l a u s e t h a t made i t r e n e w a b l e i n p e r p e t u i t y , i t a p p r o a c h e d a f r e e h o l d g r a n t i n t h e k i n d o f t i m b e r r i g h t s i t c o n v e y e d t o t h e l e s s e e . I t i s i n t e r e s t i n g t o n o t e t h a t b o t h t h e G r a n d F a l l s a n d C o r n e r B r o o k m i l l s s t a r t e d w i t h a " c o r e * l i m i t a r e a o f e i t h e r f r e e h o l d g r a n t s o r a r e n e w a b l e t i m b e r l e a s e a n d t h e n e x p a n d e d t h e i r c o n t r o l o v e r t h e r e s o u r c e b y a c q u i r i n g n o n -r e n e w a b l e l i c e n s e s . The h i s t o r i c a l r e c o r d i n d i c a t e s t h a t t h e s e c u r i n g o f t h e 2000 s q u a r e - m i l e r e n e w a b l e l e a s e w a s a n i m p o r t a n t c o n s i d e r a t i o n i n t h e d e c i s i o n t o i n v e s t i n t h e G r a n d F a l l s m i l l . T he i m p o r t a n c e o f t h e a v a i l a b i l i t y o f 1 , 7 5 0 s q u a r e m i l e s o f f r e e h o l d g r a n t s t o t h e e s t a b l i s h m e n t o f t h e C o r n e r B r o o k m i l l i s n o t c l e a r f r o m t h e i n f o r m a t i o n 203 s t u d i e d b u t i t c o u l d o n l y h a v e h a d a p o s i t i v e i n f l u e n c e on t h e d e c i s i o n t o go a h e a d w i t h t h e p r o j e c t . T h e d i f f e r e n c e s b e t w e e n f r e e h o l d g r a n t s a n d t h e r e n e w a b l e l e a s e w e r e n o t s i g n i f i c a n t w i t h r e s p e c t t o t h e i r e f f e c t s o n d e v e l o p m e n t . T i m b e r l i c e n s e s w e r e s i g n i f i c a n t l y d i f f e r e n t i n t h a t t h e y w e r e n o t r e n e w a b l e a n d w e r e due t o e x p i r e i n due c o u r s e . W h i l e 21- a n d 5 0 - year t e r m s w e r e a d e q u a t e f o r s a w m i l l s , 9 9 - yea r l i c e n s e s a p p e a r t o h a v e b e e n r e q u i r e d f o r p u l p m i l l s . T h e wood s u p p l y a r e a s o f t h e p u l p m i l l s t h a t w e r e c o n s t r u c t e d a t B l a c k R i v e r , B i s h o p s F a l l s , C a m p b e l l t o n a n d G l o v e r t o w n w e r e a l l c o m p r i s e d o f 9 9 - yea r l i c e n s e s . W h i l e t h e o w n e r s o f t h e m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k u s e d f r e e h o l d g r a n t s o r t h e r e n e w a b l e l e a s e f o r t h e i r i n i t i a l a r e a s , t h e y w e r e q u i t e w i l l i n g t o u t i l i z e 9 9 - yea r n o n r e n e w a b l e l i c e n s e s f o r t h e b a l a n c e o f t h e i r l i m i t s . T h e c o m b i n a t i o n o f t i m b e r r i g h t s h e l d b y t h e o w n e r s o f t h e G r a n d F a l l s a n d C o r n e r B r o o k m i l l s d o e s p r o v i d e t h e G o v e r n m e n t w i t h some f l e x i b i l i t y i n t h e f u t u r e . T h e l i c e n s e s h e l d b y t h e G r a n d F a l l s m i l l w i l l a l l e x p i r e b e t w e e n 2002 a n d 2027 w h i l e a l l l i c e n s e s f o r t h e C o r n e r B r o o k m i l l e x p i r e i n 2037. A s t i m e p a s s e s , t h e t e r m r e m a i n i n g on t h e s e l i c e n s e s b e c o m e s s h o r t e r a n d t h e p o s i t i o n o f t h e G o v e r n m e n t r e l a t i v e t o t h e c o m p a n i e s b e c o m e s s t r o n g e r , i f i t w i s h e s t o e f f e c t c h a n g e s i n t e n u r e a r r a n g e m e n t s . A m a j o r d i s a d v a n t a g e o f t h e r e n e w a b l e t i m b e r l e a s e a n d t i m b e r l i c e n s e s f r o m t h e p o i n t o f v i e w o f p r o t e c t i o n o f 204 the public i n t e r e s t i s that the terms and conditions are fi x e d i n d e f i n i t e l y or f o r very long periods of time. The Government can perhaps u n i l a t e r a l l y change these terms and conditions but only with d i f f i c u l t y and by breaking e a r l i e r commitments made to developers and investors. Accompanying p u b l i c i t y can have a negative impact on investor confidence i n the a b i l i t y of the Government to keep i t s word. This problem can be avoided i n future, by making more f l e x i b l e tenure arrangements that provide f o r charges to fluctuate with changing economic conditions and allow f o r r e -negotiation of agreements i n unusual circumstances which a f f e c t the public i n t e r e s t . By f i x i n g the charges f o r the timber lease and licenses that were issued, the Government deprived i t s e l f of some future revenues. As indicated i n Chapter V I I I , the average wholesale price index f o r wood, wood products and paper increased 4.26 times from the period 1901-10 to 1951-60. I f the land rent charge had been linked to t h i s index (on the assumption that timber values would at least maintain t h e i r p o sition r e l a t i v e to end product values i n the future), the Government would have been c o l l e c t i n g $8.52 per square mile i n the 1950*s instead of $2.00 per square mile. Since the area under lease and license i s approximately 16,000 square miles, the Government was lo s i n g over $104,000 per year i n timber rentals i n the 1950"s. This s i t u a t i o n can be avoided i n the future by providing 205 f o r c h a r g e s t o b e a d j u s t e d p e r i o d i c a l l y , t o r e f l e c t c h a n g e s i n t h e v a l u e o f t h e r e s o u r c e . The p o l i c y o f t h e N e w f o u n d l a n d G o v e r n m e n t s i n c e 1949 o f e n c o u r a g i n g a d d i t i o n a l l a r g e - s c a l e p u l p a n d p a p e r d e v e l o p m e n t s b a s e d on t h e f o r e s t r e s o u r c e s o f t h e I s l a n d a n d L a b r a d o r h a s t o be q u e s t i o n e d . T h e t i m b e r r e s o u r c e o f L a b r a d o r h a s r e p e a t e d l y p r o v e n t o b e s u b m a r g i n a l f o r t h e v a r i o u s d e v e l o p m e n t a t t e m p t s made t h e r e . The m a r g i n a l a n d i n t r a m a r g i n a l f o r e s t s i n t h e i n t e r i o r o f t h e I s l a n d h a v e b e e n a l l o c a t e d t o t h e m i l l s a t G r a n d F a l l s a n d C o r n e r B r o o k s i n c e t h e l a t e 1 9 3 0 * s . A l l a t t e m p t s a t p u l p a n d p a p e r d e -v e l o p m e n t a t o t h e r s i t e s h a v e f a i l e d . T h i s s u g g e s t s t h a t t h e r e may be f e w , i f a n y , d e v e l o p m e n t s i t e s l e f t w i t h l o n g -t e r m i n t r a m a r g i n a l w o o d s u p p l i e s t o s u p p o r t f u r t h e r l a r g e -s c a l e p u l p a n d p a p e r d e v e l o p m e n t s . I t i s r e c o m m e n d e d t h a t t h e p o l i c y o f f u r t h e r l a r g e - s c a l e f o r e s t i n d u s t r i a l d e v e l o p m e n t on t h e I s l a n d be m o d i f i e d i n f a v o r o f a m o r e m o d e s t p o l i c y o f u s i n g e x i s t i n g t i m b e r r e s o u r c e s t o p r e s e r v e a n d e x p a n d e s t a b l i s h e d f o r e s t i n d u s t r y . T h i s w o u l d a l l o w f o r t h e m a i n t e n a n c e a n d e x p a n s i o n o f e x i s t i n g m i l l s a n d p e r h a p s f o r some e x p a n s i o n i n t h e s a w m i l l a n d o t h e r w o o d s p r o d u c t s i n d u s t r i e s , p r o v i d e d i n t r a -m a r g i n a l t i m b e r s u p p l i e s c a n b e i d e n t i f i e d . W h i l e h i s t o r i c a l l y t h e t i m b e r r e s o u r c e s o f L a b r a d o r a n d r e m o t e p a r t s o f t h e I s l a n d h a v e p r o v e n t o b e s u b m a r g i n a l f o r d e v e l o p m e n t , t h i s may c h a n g e i n t h e f u t u r e . 206 New markets f o r forest products, technological change and improved public transportation and communications f a c i l -i t i e s , may make these resources marginal or intramarginal. The prospects f o r these resources to support viable industries should be reviewed p e r i o d i c a l l y to see i f further development attempts should be encouraged. In deciding on future timber a l l o c a t i o n p o l i c y f o r nonalienated Crown forests and f o r timber licenses which w i l l expire a f t e r the year 2 0 0 0 , the Government w i l l s t i l l be confronted with the problem of set t i n g appropriate terms and conditions f o r timber cutting r i g h t s . However, the knowledge of the resource i s now much better than i t was 7 0 years ago and more sophisticated techniques of economic analysis are now available to assess the i n t r a -marginal, marginal or submarginal nature of the resource and to evaluate i n d e t a i l the options open to the p o l i c y makers. These aids should be used to the f u l l e s t extent i n the future development of timber a l l o c a t i o n p o l i c y i n Newfoundland. SOURCES CONSULTED 208 SOURCES CONSULTED P u b l i s h e d S o u r c e s a n d T h e s e s A m u l r e e , L o r d ; M a g r a t h , C h a r l e s A l e x a n d e r ; a n d S t a v e r t , S i r W i l l i a m E w e n . 1 9 3 3 . N e w f ^ y ^ & L a n d R o y a l . C o m m i s s i o n R e p o r t . L o n d o n : H i s M a j e s t y ' s S t a t i o n e r y O f f i c e . A t k i n s , E . S . 1974- " N o v a S c o t i a ' s F o r e s t Management P o l i c i e s . " I n R e c e n t F o r e s t P o l i c y D e v e l o p m e n t s i n _ N e w f o u n d l a n d , N o v a S c o t i a , New B r u n s w i c k , Quebec a n d O n t a r i o . M o n t r e a l : W o o d l a n d s S e c t i o n , C a n a d i a n P u l p a n d P a p e r A s s o c i a t i o n . A t l a n t i c D e v e l o p m e n t B o a r d . 1 9 6 8 . F o r e s t r y i n t h e A t l a n t i c P r o v i n c e s . O t t a w a : Queen s P r i n t e r . A t l a n t i c P r o v i n c e s E c o n o m i c C o u n c i l . 1976 . " A t l a n t i c P r o v i n c e s P e r s o n a l I n come M o v e s U p . " N e w s l e t t e r , V o l u m e 2 0 , Number 1: 1 - 3 . B e r t e a u , F . C . 1937- " T h e C u r r e n c y o f N e w f o u n d l a n d . " I n The Book o f N e w f o u n d l a n d . V o l . 1, p p . 1 2 4 - 1 2 5 . E d i t e d b y J . R . S m a l l w o o d . S t . J o h n ' s : N e w f o u n d l a n d Book P u b l i s h e r s , L t d . B u r t o n , Thomas L . 1 9 7 2 . N a t u r a l R e s o u r c e P o l i c y i n C a n a d a . T o r o n t o : M c C l e l l a n d a n d S t e w a r t L i m i t e d , C a r r o l l , M i c h a e l . 1977- "Some A s p e c t s o f t h e E c o n o m i c N a t u r e o f C o n t r a c t s a s t h e y R e l a t e t o F o r e s t L a n d T e n u r e i n A l b e r t a . " The F o r e s t r y C h r o n i c l e , V o l u m e 5 3 , Number 1: 8 - 1 4 . C h a d w i c k , S t . J o h n . 1967• N e w f o u n d l a n d . C a m b r i d g e : C a m b r i d g e U n i v e r s i t y P r e s s . Cramm, F . 1 9 6 1 . " T h e C o n s t r u c t i o n o f t h e N e w f o u n d l a n d R a i l w a y , 1 8 7 5 - 1 8 9 8 . " M . A . d i s s e r t a t i o n , M e m o r i a l U n i v e r s i t y o f N e w f o u n d l a n d . D a v e y , L o r d . 1 9 0 4 . P h i l l i p s , R e s p . ; G l e n w o o d L u m b e r C o . , A p p . I n N e w f o u n d l a n d Law R e p o r t s , 1 9 0 4 - 1 1 • S t . J o h n ' s : J . W . W i t h e r s . 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G o v e r n m e n t - B r i t i s h N e w f o u n d l a n d L i m i t e d - N .M. R o t h s c h i l d a n d S o n s ( C o n f i r m a t i o n o f A g r e e m e n t ) A c t . N o . 63 . N e w f o u n d l a n d , 1953b. I n t e r n a t i o n a l F o r e s t P r o d u c t s L i m i t e d ( C o n f i r m a t i o n o f A g r e e m e n t ) A c t . N o . 36 . N e w f o u n d l a n d , 1954. C r o w n L a n d s (Amendment ) A c t . N o . 57. N e w f o u n d l a n d , i 9 6 0 . The G o v e r n m e n t - N e w f o u n d l a n d P u l p a n d C h e m i c a l C o . L i m i t e d ( A u t h o r i z a t i o n o f A g r e e m e n t ) A c t . N o . 7 2 . N e w f o u n d l a n d , 1 9 6 l a . F o r e s t s ( E x c h a n g e a n d A c q u i s i t i o n ) A c t . N o . 48 . N e w f o u n d l a n d , 1962. The A l e x i s W a t e r s h e d ( T i m b e r O p e r a t i o n s ) A c t . N o . 4 1 . N e w f o u n d l a n d , 1968. M e l v i l l e P u l p a n d P a p e r L i m i t e d ( A u t h o r i z a t i o n o f A g r e e m e n t ) (Amendment ) A c t . N o . 44 . 216 N e w f o u n d l a n d A r c h i v e s C o r r e s p o n d e n c e o f t h e D e p a r t m e n t o f t h e C o l o n i a l S e c r e t a r y : B e e t o n t o B o n d . M a r c h 24, 1903. C S 5 - 2 3 -B l a k s t a d t o S q u i r e s . 1 9 2 1 . C S 5 - 3 5 7 -B l a n d f o r d t o B e n n e t t . N o v e m b e r 4 , 1 9 1 6 . CS5 -315A. C o l o n i a l S e c r e t a r y t o R e i d . A u g u s t $, 1 9 1 2 . C S 5 - 5 0 , C o l o n i a l S e c r e t a r y t o R o b i n s o n . J u n e 12, 1929. C S 5 - 4 $ -C o n r o y t o S q u i r e s . F e b r u a r y 12, 1930. C S 5 - 5 3 $ . C rowe t o W a l s h . N o v e m b e r 20, 1926. C S 5 - 1 9 6 C . C rowe t o M o n r o e . J u n e 1, 1925- C S 5 - 1 9 6 A . C rowe t o H a l f y a r d . N o v e m b e r 1 9 1 7 - CS5 -196A. Downey t o L o n d o n a n d L a b r a d o r C o r p . D e c . 29, 1 9 2 $ . C S 5 - 4 $ . G r a n s t e i n t o C r o w e . D e c e m b e r 2$, 1927- C S 5 - 1 9 6 A . G r e g g t o Downey . F e b r u a r y 13 , 1929. CS5-4$. M o r r i s t o S q u i r e s . 1 9 2 1 . C S 5 - 4 $ -R e e d t o M o r r i s . 1 9 1 6 . C S 5 - 1 9 6 A . R e i d t o S q u i r e s . D e c e m b e r 21 , 1 9 2 1 . C S 5 - 2 5 4 C R e i d t o W a t s o n . May 14, 1 9 1 2 . C S 5 - 5 0 . R o t h e r m e r e t o H a l f y a r d . M a r c h 10, 1924. C S 5 - 3 6 3 . S m i t h t o B a r n e s . 1930. C S 5 - 2 7 3 -S q u i r e s t o H o u s e a n d A r n o l d . 1 9 2 2 . C S 5 - 3 5 7 . S t o r m t o S q u i r e s . 1 9 2 1 . C S 5 - 3 5 7 . W a r r e n t o M o r r i s . A p r i l 2, 1910. CS5-50. W a r r e n t o S q u i r e s . D e c e m b e r 1 1 , 1922. C S 5 - 4 $ . W a t s o n t o W a r r e n . A p r i l 5, 1910. C S 5 - 5 0 . 217 W h a l l y t o C o l o n i a l S e c r e t a r y . O c t o b e r 1 9 1 6 . C S 5 - 3 1 5 A . W h a l l y t o C o l o n i a l S e c r e t a r y . S e p t e m b e r 1921. C S 5 - 3 1 5 A . C o r r e s p o n d e n c e o f t h e G o v e r n o r ' s O f f i c e : M o r i s o n t o M o r r i s . A p r i l 1 0 , 1 9 1 2 . GN 1 - 1 - 7 . M o r r i s t o W i l l i a m s . A p r i l 23, 1 9 1 2 . GN 1 - 1 - 7 . M i n u t e s o f C o u n c i l : M i n u t e o f C o u n c i l . M a r c h 2 8 , 1903. C S 5 - 2 3 -M i n u t e o f C o u n c i l . J u n e 2 , 1 9 2 5 . GN 9 -1. R e i d P a p e r s : B l a n d f o r d t o H a m i l t o n P u l p a n d L u m b e r C o . M a r c h 1 8 t h , 1 9 1 5 . G r a v e t o H a y w a r d . M a r c h 25, 1915-R e p o r t o f t h e D i r e c t o r s t o t h e S h a r e h o l d e r s . 1 9 2 3 -F i l e 2 1 . R e p o r t on G a n d e r R i v e r D e v e l o p m e n t . 1924. F i l e 2 7 . R e p o r t o f t h e D i r e c t o r s t o t h e S h a r e h o l d e r s . 1 9 2 6 . F i l e 2 1 . H o r w o o d P a p e r s : T u r n e r , G . E . 1914• E x t r a c t s o f a S t a t e m e n t P r e p a r e d f o r t h e I m p e r i a l F o r e s t r y C o n f e r e n c e o f 1 9 1 5 • P r o s p e c t u s o f t h e P r o p o s e d H o r w o o d P u l p Company . 1911. , R e p o r t o f t h e A n n u a l M e e t i n g o f t h e H o r w o o d L u m b e r Company . 1927. 218 U n p u b l i s h e d G o v e r n m e n t D o c u m e n t s a n d R e c o r d s C r o w n L a n d s R e g i s t r y -R e g i s t r y o f T i m b e r L i c e n s e s . V o l u m e s : 2, 3, 4, 5, 6, 7, 39. S p e c i a l G r a n t s . V o l u m e s : 1, 2, 3« Map S t o r a g e Box N o . 397. V a r i o u s maps ( m o s t l y u n d a t e d ) s h o w i n g a r e a s l i c e n s e d a n d a p p r o v e d f o r l i c e n s e s i n L a b r a d o r . C h i e f S u r v e y o r ' s O f f i c e . V a r i o u s l i s t s s h o w i n g t h e o w n e r s h i p o f R e i d L o t s a n d t i m b e r l i c e n s e s on t h e I s l a n d a n d i n L a b r a d o r f o r 1932. R e g i s t r y o f D e e d s A . E . R e e d t o A . N . D . C o . L t d . 1919- V o l . 66; F o l i o 504. T e r r a N o v a S u l p h i t e C o . L t d . t o A l e x a n d e r B a y P u l p a n d P a p e r C o . L t d . 1923- V o l . 82; F o l i o 467. A . F o r t i n a n d J. R o u s s e a u t o M i n e s a n d F o r e s t s ( N f l d . ) L t d . 1925. V o l . 91; F o l i o 97. A . F o r t i n a n d S . B u t l e r ( A d m i n i s t r a t o r o f t h e E s t a t e o f J. R o u s s e a u ) t o M i n e s a n d F o r e s t s ( N f l d . ) L t d . 1928. V o l . 105; F o l i o 597-L a b r a d o r D e v e l o p m e n t C o . t o N e w f o u n d l a n d G o v e r n m e n t . 1935. V o l . 132; F o l i o 330. S a n d w i c h B a y T i m b e r C o . L t d . t o L a b r a d o r D e v e l o p m e n t C o . 1935. V o l . 133; F o l i o 397. D i c k i e t o W.O. . - W i l l i a m s . 1935- V o l . 134; F o l i o 292. T o b i n t o L a b r a d o r D e v e l o p m e n t C o . 1935. V o l . 140; F o l i o 379-C o r r e s p o n d e n c e o f D e p a r t m e n t o f A g r i c u l t u r e a n d M i n e s W a l s h t o B e n n e t t . F e b r u a r y 2 8 , 1 9 2 8 . 219 C o r r e s p o n d e n c e o f t h e D e p a r t m e n t o f M i n e s a n d R e s o u r c e s Cook t o Rowe . N o v e m b e r 5 , 1 9 5 3 . F i l e 3 7 - 4 8 . R e p o r t s T i t f o r d , W. a n d M c G r a t h , K. 1 9 5 1 . " I n d e x t o T i m b e r L i c e n s e s I s s u e d D u r i n g t h e P e r i o d 1 8 8 7 - 1 9 4 4 " . N e w f o u n d l a n d F o r e s t S e r v i c e . 1 9 6 4 . Summary S t a t e m e n t s o f T i m b e r O w n e r s h i p on t h e I s l a n d o f N e w f o u n d l a n d . M i s c e l l a n e o u s T i t f o r d , W. 1975- I n t e r v i e w w i t h w r i t e r . 0 APPEND IX 1 REVIEW OF NEWFOUNDLAND TIMBER ALLOCAT ION L E G I S L A T I O N 221 REVIEW OF NEWFOUNDLAND TIMBER ALLOCAT ION E a r l y T i m b e r D i s p o s a l L e g i s l a t i o n U n d e r R e p r e s e n t a t i v e G o v e r n m e n t ( 1 8 3 2 - 1 8 5 5 ) , l e g i s l a t i o n wa s f o r m u l a t e d c o n c e r n i n g t h e d i s p o s a l o f C rown l a n d s . I n 1 8 4 4 , a n A c t wa s p a s s e d a l l o w i n g s a l e o f f e e s i m p l e g r a n t s o f l a n d b y p u b l i c a u c t i o n w i t h a m i n imum u p s e t p r i c e o f t e n s h i l l i n g s p e r a c r e ( N e w f o u n d l a n d , 1 8 4 4 ) . The l o t s o f f e r e d f o r s a l e c o u l d n o t e x c e e d 100 a c r e s a n d f i v e p e r c e n t o f t h e l o t s h a d t o be c u l t i v a t e d w i t h i n f i v e y e a r s . The A c t was amended i n 1845 a n d among o t h e r t h i n g s , t h e c u l t i v a t i o n c l a u s e was r e p e a l e d ( N e w f o u n d l a n d , 1 8 4 5 ) . The A c t o f 1844 a p p e a r e d t o be a i m e d a t e n c o u r a g i n g o w n e r s h i p o f l a n d f o r a g r i c u l t u r a l a n d g e n e r a l s e t t l e m e n t p u r p o s e s , a n d t o e n a b l e i n d i v i d u a l s w i t h u n d i s -t u r b e d o c c u p a n c y c l a i m s t o g e t l e g a l t i t l e t o t h e i r l a n d . I t wa s n o t d e s i g n e d t o e n c o u r a g e r e s o u r c e d e v e l o p m e n t on a l a r g e s c a l e . U n d e r R e s p o n s i b l e G o v e r n m e n t i n i 8 6 0 , a n A c t wa s p a s s e d w h i c h a l l o w e d f o r a f r e e ' L i c e n s e o f O c c u p a t i o n ' t o a maximum o f 50 a c r e s t o be g r a n t e d f o r a p e r i o d o f 5 y e a r s t o s e t t l e r s , o r f o r a maximum o f 200 a c r e s t o be g r a n t e d t o s a w m i l l o p e r a t o r s ( N e w f o u n d l a n d , i 8 6 0 ) . G r a n t s i n f e e c o u l d be i s s u e d f o r a n o m i n a l c h a r g e on s u c c e s s f u l p e r f o r m a n c e o f t h e c o n d i t i o n s o f t h e l i c e n s e . The A c t a l s o made p r o v i s i o n 222 f o r t h e r e n t i n g o f C r own l a n d s a t p u b l i c a u c t i o n f o r t h e h i g h e s t a n n u a l r e n t t h a t c o u l d be o b t a i n e d . The f i r s t c o n s o l i d a t i o n o f s t a t u t e s f o r N e w f o u n d -l a n d was p r e p a r e d i n 1872 a n d t h i s c o n s o l i d a t i o n p r o v i d e s a g o o d i n s i g h t t o f o r e s t r y l e g i s l a t i o n a s i t e x i s t e d a t t h a t t i m e ( N e w f o u n d l a n d , 1 8 7 2 ) . Up t o t h i s p o i n t , f o r e s t r y l e g i s l a t i o n m a i n l y d e a l t w i t h p r o c e d u r e s f o r t h e d i s p o s a l o f f o r e s t l a n d s , a n d was p a r t o f t h e g e n e r a l l e g i s l a t i o n r e l a t i n g t o C rown l a n d s a n d n a t u r a l r e s o u r c e s . The a r e a s i n v o l v e d w e r e s m a l l , u p t o 200 a c r e s f o r s a w m i l l s , a n d t h e l e g i s l a t i o n a p p e a r e d t o be a i m e d a t e n c o u r a g i n g s e t t l e m e n t a n d t h e s m a l l - s c a l e d e v e l o p m e n t o f r e s o u r c e s . The l e g i s -l a t i o n g e n e r a l l y l i n k s o w n e r s h i p o f t h e t i m b e r l a n d w i t h o w n e r s h i p o f t h e p r o c e s s i n g p l a n t , e . g . , a s a w m i l l . O w n e r s h i p o f t h e l a n d i s c o n v e y e d t o t h e o w n e r o f t h e m i l l , p r e s u m a b l y t o a s s u r e h i m o f a s u p p l y o f r a w m a t e r i a l . The f i r s t p i e c e o f p u r e l y f o r e s t r y l e g i s l a t i o n was p a s s e d i n 1875 a s a n amendment t o C h a p t e r s 45 a n d 46 o f t h e 1872 C o n s o l i d a t i o n ( N e w f o u n d l a n d , 1 8 7 5 ) . I t wa s d e s i g n e d " t o make p r o v i s i o n r e s p e c t i n g t h e s a l e a n d management o f T i m b e r on C rown L a n d s " . The A c t a u t h o r i z e d t h e G o v e r n o r i n C o u n c i l t o g r a n t l i c e n s e s t o c u t t i m b e r on u n g r a n t e d C rown l a n d s , a f t e r p r o p e r s u r v e y s h a d b e e n made , " s u b j e c t t o s u c h c o n d i t i o n s , r e g u l a t i o n s a n d r e s t r i c t i o n s , a s may f r o m t i m e t o t i m e , be e s t a b l i s h e d b y t h e G o v e r n o r i n C o u n c i l . . . " 223 The maximum a r e a t o be l i c e n s e d was " s i x m i l e s l o n g b y s i x m i l e s w i d e " f o r a p e r i o d o f one y e a r . R e n e w a l c o u l d be p r o v i d e d b y o r d e r s i n C o u n c i l o r b y s p e c i a l p r o -v i s i o n s o f t h e l i c e n s e . The l i c e n s e c o n v e y e d : The r i g h t t o t a k e a n d k e e p e x c l u s i v e p o s s e s s i o n o f t h e L a n d s so d e s c r i b e d , s u b j e c t t o s u c h r e g u l a t i o n s a n d r e s t r i c t i o n s a s may be e s t a b l i s h e d ; a n d s u c h L i c e n s e s h a l l v e s t i n t h e h o l d e r s t h e r e o f a l l r i g h t s o f p r o p e r t y w h a t s o e v e r i n a l l t r e e s , t i m b e r a n d l u m b e r , c u t w i t h i n t h e l i m i t s o f t h e L i c e n s e d u r i n g t h e t e r m t h e r e o f , w h e t h e r s u c h t r e e s , t i m b e r , o r l u m b e r a r e c u t b y t h e a u t h o r i t y o f t h e h o l d e r o f s u c h L i c e n s e o r b y a n y o t h e r p e r s o n , w i t h o r w i t h o u t h i s c o n s e n t . . . P r o v i d e d t h a t n o t h i n g i n t h i s A c t c o n t a i n e d , s h a l l a f f e c t t h e r i g h t o f c u t t i n g wood f o r t h e p u r p o s e s o f f u e l a n d t h e f i s h e r y . The l i c e n s e e was r e q u i r e d t o make s w o r n r e t u r n s t o t h e S u r v e y o r G e n e r a l , i t e m i z i n g t h e q u a n t i t y o f t i m b e r c u t . L i c e n s e s w e r e t o be s o l d a t p u b l i c a u c t i o n , a n d p r o v i s i o n was made f o r c o l l e c t i o n o f r e n t s a n d t i m b e r d u e s w h i c h w e r e t o be s e t b y r e g u l a t i o n . P r o v i s i o n was made f o r t h e g r a n t i n g o f t e m p o r a r y l i c e n s e s t o " a n y P e r s o n who s h a l l , p r e v i o u s l y t o t h e p a s s i n g o f t h i s A c t , h a v e e r e c t e d a s a w m i l l , o r may now be e n g a g e d i n s u c h e r e c t i o n s , a n d who i s now e n g a g e d i n l u m b e r i n g o p e r a t i o n s , " u n d e r c o n d i t i o n s t o be s e t b y t h e G o v e r n o r i n C o u n c i l . S u c h t e m p o r a r y l i c e n s e s w e r e n o t t o c o n f e r - .~ . g r e a t e r p r i v i l e g e s t h a n w e r e g r a n t e d i n o t h e r l i c e n s e s i s s u e d u n d e r t h e A c t . The amendment o f 1875 l e f t a g r e a t d e a l t o t h e d i s c r e t i o n o f t h e G o v e r n o r i n C o u n c i l i n s e t t i n g t h e r e n t s 224 a n d d u e s t o be c o l l e c t e d u n d e r t h e t i m b e r l i c e n s e s . I t wa s a l s o c o m p l e t e l y c o n c e r n e d w i t h t i m b e r d i s p o s a l a s p e c t s a n d c o n t a i n e d no p r o v i s i o n s o f a c o n s e r v a t i o n o r f o r e s t i m p r o v e -men t n a t u r e . I t p r o b a b l y d i d s i g n i f y a n i n c r e a s e i n i n t e r e s t i n t he . e x p l o i t a t i o n o f i n t e r i o r f o r e s t r e s o u r c e s s i n c e a u t h o r i t y wa s p r o v i d e d f o r t h e l i c e n s i n g o f s u b -s t a n t i a l a r e a s o f up t o 36 s q u a r e m i l e s . L i c e n s e s f o r S a w m i l l s I n I 8 8 4 , a n A c t wa s p a s s e d w h i c h c o n t a i n e d i m p o r -t a n t f o r e s t r y p r o v i s i o n s ( N e w f o u n d l a n d , 1 8 8 4 ) . The A c t a u t h o r i z e d t h e G o v e r n o r i n C o u n c i l t o " r e s e r v e a n d s e t a p a r t " a n y t r a c t o f l a n d a s " t i m b e r l a n d s " , s u b j e c t t o n e c e s s a r y r e s e r v a t i o n s f o r f i s h e r y p u r p o s e s . The r i g h t t o c u t t i m b e r w o u l d be s o l d a t " a b o n u s p e r s q u a r e m i l e " t o be s e t a c c o r d i n g t o t h e v a l u e o f t h e l i m i t . T w e n t y - o n e y e a r t i m b e r l i c e n s e s c o u l d be g r a n t e d b y t h e G o v e r n o r i n C o u n c i l a f t e r one m o n t h ' s n o t i c e i n t h e R o y a l G a z e t t e , on c e r t a i n c o n d i t i o n s . The p r o v i s i o n f o r s a l e b y a u c t i o n was d r o p p e d a n d no maximum a r e a was s p e c i f i e d . Among o t h e r t h i n g s t h e l i c e n s e e was r e q u i r e d t o : 1 ) e r e c t a s a w m i l l o r o t h e r wood p r o c e s s i n g p l a n t w i t h a c a p a c i t y o f 1 , 0 0 0 b o a r d f e e t p e r 24 h o u r s f o r e v e r y t w o a n d a h a l f s q u a r e m i l e s o f l i c e n s e a r e a , a n d s t a r t t o w o r k t h e l i m i t i n t h e m a n n e r a n d t o t h e e x t e n t p r o v i d e d 225 i n t h e l i c e n s e w i t h i n t w o y e a r s f r o m t h e d a t e o f i s s u e , 2) t a k e f r o m e v e r y t r e e c u t down a l l t h e t i m b e r f i t f o r u s e a n d m a n u f a c t u r e i t i n t o sawn l u m b e r o r s u c h o t h e r s a l e a b l e p r o d u c t s a s p r o v i d e d f o r i n t h e l i c e n s e o r l e a s e o r b y a n y r e g u l a t i o n s made u n d e r t h e A c t , 3 ) p r e v e n t a l l u n n e c e s s a r y d e s t r u c t i o n o f g r o w i n g t i m b e r on t h e p a r t o f h i s men a n d t o e x e r c i s e s t r i c t a n d c o n s t a n t s u p e r v i s i o n t o p r e v e n t t h e o r i g i n a n d s p r e a d o f f i r e s , 4 ) make s w o r n r e t u r n s t o g o v e r n m e n t on l u m b e r a n d o t h e r p r o d u c t s m a n u f a c t u r e d a n d s o l d , 5 ) p a y a g r o u n d r e n t o f two d o l l a r s p e r s q u a r e m i l e i n a d d i t i o n t o t h e b o n u s a n d " s u c h r o y a l t y a s may be d e t e r m i n e d b y t h e G o v e r n o r i n C o u n c i l , n o t e x c e e d i n g f i v e p e r c e n t on t h e v a l u e o f t h e t i m b e r c u t " . The p r o p e r t y r i g h t s t h a t w e r e b e i n g c o n v e y e d t o t h e h o l d e r o f a l i c e n s e o r l e a s e i s s u e d u n d e r t h e A c t w e r e d e s c r i b e d a s f o l l o w s : The l e a s e s h a l l d e s c r i b e t h e l a n d s u p o n w h i c h t h e t i m b e r may be c u t , a n d s h a l l v e s t i n t h e l e s s e e d u r i n g i t s c o n t i n u a n c e t h e r i g h t t o t a k e a n d k e e p e x c l u s i v e p o s s e s s i o n o f t h e l a n d s so d e s c r i b e d , s u b j e c t t o t h e c o n d i t i o n s h e r e i n p r o v i d e d o r r e f e r r e d t o , a n d s u c h l e a s e s h a l l v e s t i n t h e h o l d e r t h e r e o f a l l r i g h t o f p r o p e r t y w h a t s o e v e r i n a l l t r e e s a n d t i m b e r c u t w i t h i n t h e l i m i t s o f t h e l e a s e d u r i n g 226 t h e c o n t i n u a n c e t h e r e o f , w h e t h e r s u c h t r e e s be c u t b y t h e a u t h o r i t y o f t h e h o l d e r o f s u c h l e a s e o r b y a n y o t h e r p e r s o n , w i t h o r w i t h o u t h i s c o n s e n t . The l i c e n s e e c o u l d s e i z e a n y t i m b e r c u t w i t h o u t h i s a u t h o r i t y a n d c o u l d b r i n g l e g a l a c t i o n a g a i n s t t h o s e r e s p o n s i b l e . M i n e r a l r i g h t s w e r e n o t i n c l u d e d i n t h e l i c e n s e o r l e a s e , w h i c h was s u b j e c t t o f o r f e i t u r e f o r i n f r a c t i o n o f a n y one o f t h e c o n d i t i o n s t o w h i c h i t was s u b j e c t . The l i c e n s e e was a l s o r e q u i r e d t o k e e p b o o k s on h i s o p e r a t i o n s f o r i n s p e c t i o n b y t h e S u r v e y o r G e n e r a l , a n d p e n a l t i e s w e r e p r o v i d e d f o r n o n p a y m e n t o f d u e s . The c u t t i n g o f t i m b e r on u n g r a n t e d C r own l a n d s w i t h o u t a l i c e n s e was p r o h i b i t e d a n d p e n a l t i e s p r o v i d e d f o r o f f e n d e r s . I t was s t i p u l a t e d t h a t h o l d e r s o f t i m b e r l i c e n s e s o r l e a s e s c o u l d n o t i n t e r f e r e w i t h p u b l i c u s e o f s t r e a m s , l a k e s a n d p o r t a g e s f o r t r a n s p o r t o f t i m b e r p r o d u c t s a n d f o r t r a v e l l i n g t h r o u g h t h e i n t e r i o r . The A c t i s s i g n i f i c a n t i n t h a t i t i s o b v i o u s l y a i m e d a t e n c o u r a g i n g f a i r l y l a r g e s a w m i l l o p e r a t i o n s i n t h e i n t e r i o r f o r e s t e d a r e a s . Two c l a u s e s o f a c o n s e r v a t i o n o r p r o t e c t i o n n a t u r e w e r e i n c l u d e d , c o n c e r n i n g f u l l u t i l -i z a t i o n , a n d f o r e s t p r o t e c t i o n ( s e e 2 a n d 3 a b o v e ) . T h e s e r a t h e r v a g u e c l a u s e s ( o r v a r i a t i o n s o f t h e m ) a r e t o be f o u n d i n m o s t N e w f o u n d l a n d l e g i s l a t i o n r e l a t i n g t o t i m b e r l i c e n s e s o r l e a s e s , a n d i n many o f t h e l i c e n s e d o c u m e n t s t h e m s e l v e s . T h r e e k i n d s o f f e e s w e r e t o be c h a r g e d : a n 227 a n n u a l r e n t a l o f t w o d o l l a r s a s q u a r e m i l e , a r o y a l t y t o be s e t b y G o v e r n o r i n C o u n c i l b u t n o t t o e x c e e d 5 p e r c e n t o f t h e v a l u e o f t h e t i m b e r c u t , a n d a b o n u s p e r s q u a r e m i l e t o v a r y a c c o r d i n g t o t h e v a l u e o f t h e l i m i t . I t i s n o t c l e a r f r o m t h e A c t , b u t p r e s u m a b l y t h e G o v e r n o r i n C o u n c i l was t o s e t t h e b o n u s a s w e l l a s t h e r o y a l t y c h a r g e . C o n s i d e r i n g t h e s t a g e o f d e v e l o p m e n t o f N e w f o u n d -l a n d a t t h i s t i m e , t h i s A c t s h o u l d be c o n s i d e r e d a s f a i r l y w e l l i n t e n t i o n e d a n d p r o g r e s s i v e l e g i s l a t i o n . The maximum l e a s e p e r i o d w a s s e t a t 21 y e a r s w h i c h i s c o n s i d e r a b l y l e s s t h a n t h e p e r i o d g r a n t e d i n l a t e r l e a s e s a n d l i c e n s e s . The l e g i s l a t i o n c l e a r l y t i e s t h e i s s u a n c e o f t h e l i c e n s e w i t h t h e e s t a b l i s h m e n t o f a s a w m i l l o r o t h e r wood p r o c e s s i n g p l a n t w i t h i n a l i m i t e d p e r i o d o f t i m e . The i n t e n t i o n o f g o v e r n m e n t i s o b v i o u s : t o make t h e i s s u a n c e o f a t i m b e r l e a s e o r l i c e n s e c o n d i t i o n a l u p o n t h e e s t a b l i s h m e n t o f a p r o c e s s i n g p l a n t w h i c h w i l l u t i l i z e t h e t i m b e r r e s o u r c e . A l l o c a t i o n o f t h e t i m b e r r e s o u r c e i s t o be made o n l y t o t h o s e who w i l l e s t a b l i s h f o r e s t - b a s e d i n d u s t r i e s . I n t h e A c t no d i s t i n c t i o n i s made b e t w e e n t h e t e r m s ' l e a s e ' a n d ' l i c e n s e ' . S e c t i o n 53 make s p r o v i s i o n f o r t i m b e r l i c e n s e s t o be i s s u e d , b u t t h e n g o e s on t o d e s c r i b e t h e r e s p o n s i b i l i t i e s o f t h e ' l e s s e e ' . The t w o t e r m s a r e u s e d i n t e r c h a n g e a b l y e v e n t h o u g h t h e y do h a v e somewhat d i f f e r e n t l e g a l m e a n i n g s . 228 A n o t h e r i m p o r t a n t a s p e c t o f t h e A c t was t h e d e g r e e t o w h i c h t h e G o v e r n o r i n C o u n c i l wa s i n v o l v e d . The l i c e n s e was t o be i s s u e d b y t h e G o v e r n o r i n C o u n c i l a n d r e t u r n s h a d t o be made t o t h a t b o d y . The G o v e r n o r i n C o u n c i l was a l s o r e s p o n s i b l e f o r d e t e r m i n i n g t h e r o y a l t y r a t e . The S u r v e y o r G e n e r a l was a l s o i n v o l v e d i n i n s p e c t i o n o f r e c o r d b o o k s t o be k e p t b y t h e l i c e n s e e a n d a l s o i n s e i z u r e o f t i m b e r f o r n o n p a y m e n t o f d u e s . H o w e v e r t h e G o v e r n o r i n C o u n c i l made t h e f i n a l d e c i s i o n on f o r f e i t u r e o f t h e l i c e n s e . The G o v e r n o r i n C o u n c i l w a s , o f c o u r s e , t h e C a b i n e t w h i c h was a h i g h l y p o l i t i c a l b o d y . W i t h s o much i n v o l v e m e n t b y t h e G o v e r n o r i n C o u n c i l i n t h e i s s u i n g a n d r e g u l a t i o n o f t i m b e r l i c e n s e s , a v e r y s t r o n g l i n k a g e was e s t a b l i s h e d b e t w e e n t i m b e r a l l o c a t i o n p o l i c y a n d p o l i t i c s . C h a n g e s i n t h e c o m p o s i t i o n o f t h e C a b i n e t c o u l d h a v e h a d a v e r y d i r e c t i n f l u e n c e on a d m i n i s t r a t i o n a n d e n f o r c e m e n t o f t h e A c t . T h u s , w h i l e t h e A c t i t s e l f m i g h t h a v e b e e n g o o d l e g i s l a t i o n , t h e m e c h a n i s m f o r a d m i n i s t e r i n g a n d e n f o r c e m e n t wa s n o t a s s t a b l e a s i t c o u l d h a v e b e e n i f some o f t h e r e s p o n s i b i l i t i e s o f t h e G o v e r n o r i n C o u n c i l h a d b e e n d e l e g a t e d t o a b o d y l e s s s u s c e p t i b l e t o p o l i t i c a l i n t e r f e r e n c e . I n I 8 8 5 a n amendment t o t h e 1884 A c t was p a s s e d a n d t h e a r e a a l l o t m e n t p e r 1 , 0 0 0 f b m o f m i l l c a p a c i t y w a s i n c r e a s e d f r o m 2 .5 s q u a r e m i l e s t o f i v e s q u a r e m i l e s ; a n d t h e r o y a l t y c h a r g e w a s f i x e d a t 50 c e n t s p e r 1 , 0 0 0 b o a r d f e e t o f t i m b e r h a r v e s t e d ( N e w f o u n d l a n d , I 8 8 5 ) . 229 L i c e n s e s f o r P u l p a n d P a p e r M i l l s I n 1 8 9 0 t h e C rown L a n d s A c t o f wa s amended t o p r o v i d e f o r t h e i s s u a n c e o f t i m b e r l i c e n s e s f o r p u l p o r p u l p a n d p a p e r m a n u f a c t u r i n g p l a n t s ( N e w f o u n d l a n d , 1 8 9 0 ) . The G o v e r n o r i n C o u n c i l was a u t h o r i z e d t o g r a n t l i c e n s e s f o r b l o c k s o f b e t w e e n 6 a n d 1 50 s q u a r e m i l e s f o r up t o 99 y e a r s , s u b j e c t t o t h e f o l l o w i n g p r i n c i p a l c o n d i t i o n s : 1 ) P a y m e n t o f $30 p e r s q u a r e m i l e t o t h e S u r v e y o r G e n e r a l b e f o r e i s s u e o f t h e l i c e n s e ; a n d a d d i t i o n a l p a y m e n t s o f $30 p e r s q u a r e m i l e a t t h e e n d o f 25 y e a r s , 50 y e a r s , a n d 75 y e a r s , f r o m d a t e o f i s s u e . 2) The l i c e n s e e was r e q u i r e d t o s p e n d a t l e a s t $3,000 p e r s q u a r e m i l e w i t h i n 5 y e a r s o f d a t e o f i s s u e on m a c h i n e r y a n d b u i l d i n g s t o be u s e d i n t h e m a n u f a c t u r e o f ' p a p e r p u l p ' w i t h i n o r n e a r t h e l i c e n s e d a r e a . 3) The l i c e n s e e was r e q u i r e d t o f u l l y u t i l i z e t r e e s c u t down a n d t o p r o c e s s t h e m i n h i s m a n u f a c t u r i n g p l a n t . /+) The l i c e n s e e was r e q u i r e d t o p r e v e n t u n n e c e s s a r y d e s t r u c t i o n t o g r o w i n g t i m b e r a n d t o " e x e r c i s e s t r i c t a n d c o n s t a n t s u p e r v i s i o n t o p r e v e n t t h e o r i g i n a n d s p r e a d o f f i r e s . . . " He w a s a l s o r e q u i r e d t o " p r e s e r v e t h e g r o w t h o f y o u n g t i m b e r t r e e s a n d w h e r e n e c e s s a r y , plant young trees so as to promote and secure the growth of a continuous e x i s t i n g f o r e s t " . 5) The license was subject to f o r f e i t u r e f o r i n f r a c t i o n of any one of the conditions under which i t was issued. 6 ) Employment i n connection with development of the license, except s k i l l e d labour, was to be awarded to residents of Newfoundland. The timber r i g h t s conveyed to the licensee were sim i l a r to those contained i n licenses f o r sawmills and the usual provisions safeguarding public cutting r i g h t s f o r the f i s h e r y were included. The Act provided f o r timber to be harvested f o r public works from the licensed area without compensation and the licensee could not prevent clearing and c u l t i v a t i o n of the land f o r a g r i c u l t u r a l purposes. While the licensee was e n t i t l e d to "take and keep exclusive possession of the lands so described f o r the purposes fo r which the license i s granted", and was given " a l l r i g h t of property whatsoever i n a l l trees and timber cut" these r i g h t s were r e s t r i c t e d by the public access and f i s h e r y clauses. This would not be a serious problem i n the i n t e r i o r , which was l a r g e l y inaccessible to the public, but would tend to diminish the value of any timber license issued near a s e t t l e d part of the coast. According to the Act, the public was free to use the licensee's logging roads 231 a n d h a r v e s t t h e t i m b e r t h e s e r o a d s made a c c e s s i b l e , a s l o n g a s i t was r e q u i r e d f o r t h e " b o n a f i d e p u r p o s e s o f t h e f i s h e r y " . Wood c o u l d a l s o be h a r v e s t e d f r e e o f c h a r g e f o r p u b l i c w o r k s p r o v i d e d t h e p e r m i s s i o n o f t h e S u r v e y o r G e n e r a l wa s f i r s t o b t a i n e d . P r o p e r t y r i g h t s w e r e t o t h e " t r e e s a n d t i m b e r " a n d n o t t o t h e f o r e s t l a n d . The A c t o f 1 8 9 0 was amended i n t h e n e x t y e a r ( N e w f o u n d l a n d , 1 8 9 1 ) . The p a y m e n t o f $30 p e r s q u a r e m i l e wa s r e d u c e d t o $ 2 0 a n d t h e e x p e n d i t u r e r e q u i r e m e n t o f $ 3 , 0 0 0 p e r s q u a r e m i l e was r e d u c e d t o $ 1 , 0 0 0 . F u r t h e r t h e r e q u i r e -m e n t f o r t h e l i c e n s e e t o " p l a n t y o u n g t r e e s so a s t o p r o m o t e a n d s e c u r e t h e g r o w t h o f a c o n t i n u o u s e x i s t i n g f o r e s t " , wa s d e l e t e d . One i n t e r e s t i n g a s p e c t o f t h e A c t o f 1 $ 9 0 a n d t h e amendment o f 1 8 9 1 , i s t h a t no p r o v i s i o n was made f o r a r o y a l t y c h a r g e on t i m b e r h a r v e s t e d . The l a n d r e n t a l c h a r g e s w e r e t h e o n l y r e v e n u e s G o v e r n m e n t wa s t o r e c e i v e f r o m t h e s e l i c e n s e s . H o l d e r s o f s a w m i l l l i c e n s e s on t h e o t h e r h a n d h a d t o p a y a n i n i t i a l b o n u s p e r s q u a r e m i l e , a n a n n u a l l a n d r e n t o f $ 2 . 0 0 p e r s q u a r e m i l e , p l u s a r o y a l t y c h a r g e o f $0 c e n t s p e r 1 , 0 0 0 b o a r d f e e t h a r v e s t e d . The G o v e r n m e n t a p p a r e n t l y f e l t t h e i n i t i a l p a y m e n t o f $ 20 p e r s q u a r e m i l e ( i n 1$91) p l u s t h e r e q u i r e m e n t f o r e x p e n d i t u r e s t o be made on c a p i t a l m i l l f a c i l i t i e s , ( $ 1 , 0 0 0 p e r s q u a r e m i l e i n 1 8 9 1 ) w e r e s u f f i c i e n t demands t o make on t h o s e w i s h i n g t o e s t a b l i s h p u l p m i l l s . I n a n y e v e n t , a p r e c e d e n t w a s 232 e s t a b l i s h e d w h i c h was l a t e r f o l l o w e d r e l i g i o u s l y b y N e w f o u n d l a n d G o v e r n m e n t s i n d i s p o s i n g o f t i m b e r r e s o u r c e s . W h i l e r o y a l t y wa s c h a r g e d f o r wood h a r v e s t e d b y s a w m i l l o p e r a t o r s , p u l p a n d p a p e r m i l l o p e r a t o r s w o u l d be e xempt f r o m paymen t o f r o y a l t y on wood h a r v e s t e d f o r u s e i n t h e i r m i l l s . L e g i s l a t i o n d e a l i n g w i t h t i m b e r l i c e n s e s f o r p u l p a n d p a p e r m i l l s w a s s u b s t a n t i a l l y m o d i f i e d i n 1 899 ( N e w f o u n d l a n d , 1 8 9 9 ) . The a r e a t h a t c o u l d be l i c e n s e d r e m a i n e d s e t a t f r o m 5 t o 1 50 s q u a r e m i l e s . H o w e v e r t h e c h a r g e s f o r t h e l i c e n s e w e r e c h a n g e d t o a n i n i t i a l p a y m e n t o f $ 5 . 0 0 p e r s q u a r e m i l e p l u s $ 3 . 0 0 p e r y e a r f o r t h e b a l a n c e o f t h e l i c e n s e p e r i o d . The m in imum t o t a l p a y m e n t f o r c a p i t a l f a c i l i t i e s was c h a n g e d t o $ 2 0 , 0 0 0 t o be s p e n t i n t h e i n i t i a l f i v e y e a r p e r i o d . The amendment p r o v i d e d f o r l i c e n s e s a l r e a d y i s s u e d u n d e r t h e o l d l e g i s l a t i o n t o be e x c h a n g e d f o r new l i c e n s e s t o be i s s u e d u n d e r t h e 1899 A c t . W h i l e t h e l e g i s l a t i o n o f 1899 m i g h t a p p e a r t o h a v e r e d u c e