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Changes in location and structure in the forest industry of North Central British Columbia : 1909-1966 Mullins, Doreen Katherine 1967

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CHANGES IN LOCATION AND STRUCTURE IN THE FOREST INDUSTRY OF NORTH CENTRAL BRITISH COLUMBIA:  1909-1966 by DOREEN KATHERINE MULLINS B.A., University of B r i t i s h Columbia, 196U  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF Master of Arts i n the Department of Geography We accept this thesis as conforming to the required standard  THE UNIVERSITY OF BRITISH COLUMBIA  September, 1967  ii  In presenting  t h i s thesis i n p a r t i a l f u l f i l m e n t of the  require-  ments f o r an advanced degree at the University of B r i t i s h Columbia, I agree that the Library s h a l l make i t f r e e l y available f o r reference  and study.  I further agree that permission f o r  extensive copying of this thesis f o r scholarly purposes may granted by the Head of my Department or by his  be  representatives.  It i s understood that copying or publication of this thesis f o r f i n a n c i a l gain s h a l l not be allowed without my written permission.  Department of Geography The University of B r i t i s h Columbia Vancouver 8, Canada September,  /  1967.  iii  ABSTRACTForests and the f o r e s t industry have been dominant features i n North Central B r i t i s h Columbia since i n i t i a l settlement i n the 1900's.  of the area  Trees have been logged and sawed into lumber to be  sold to the residents of the three p r a i r i e provinces, and more recently, peeled f o r plywood and chipped f o r pulp to be exported abroad.  As a  result of the region's peripheral l o c a t i o n and dependence upon these distant markets, the industry has had to adjust continuously to external pressures.  Changing conditions such as expansion or con-  t r a c t i o n of markets, government decisions to b u i l d railways, changes i n p r o v i n c i a l f o r e s t management p o l i c i e s , and the introduction of a pulp economy to the area, have forced the industry to adapt i t s processes  and products so that the North Central I n t e r i o r could compete  with other f o r e s t product regions.  A gradual r a t i o n a l i z a t i o n of the  industry has occurred i n both the structure and l o c a t i o n of  producing  units within the region. Several periods i n the development of the industry are i d e n t i f i a b l e as a series of external s t i m u l i , and i n t e r n a l responses.  In  i t s i n i t i a l years, i n the early 1900's, the industry consisted of a few sawmills  cutting rough lumber along the upper Fraser River.  i n the years p r i o r to World War  Later,  I I , poor market conditions r e s t r i c t e d  the industry i n s i z e , technological improvement and areal spread. buoyant market conditions of the 1910's and  1 9 5 0 ' s  The  encouraged growth i n  the number of operations and dispersion of cutting operations  into remote  iv  areas.  At t h i s time, shortages of labour, equipment and c a p i t a l combined  with an i n d e f i n i t e f o r e s t management p o l i c y promoted the development of a large number of small, undercapitalized operations.  The growth of  large-scale production units, d i v e r s i f i c a t i o n of production and a r e a l concentration of conversion plants have been the responses of the industry i n the 1960's.  A number of external forces such as changes i n p r o v i n c i a l  forest management p o l i c i e s , changing market demands and r i s i n g labour costs have encouraged these responses. This thesis presents an overview of the development of the f o r e s t industry, rather than concentrating decision.  upon the i n d i v i d u a l l o c a t i v e  P a r t i c u l a r firms are used, however, to i l l u s t r a t e changes i n  structure and l o c a t i o n which are c h a r a c t e r i s t i c of certain periods. Emphasis i s also placed upon the role exogenous forces and t r a d i t i o n a l locative factors have played i n the changes.  Interviews with entrepreneurs  i n the area, and data from trade journals and government publications provide most of the information presented here. The  changes i n size and l o c a t i o n of producing units within the  forest industry of North Central B r i t i s h Columbia from 1909 to 1966 are outlined f i r s t , with p a r t i c u l a r reference to external influences and industry responses.  Comparisons are made of the structure and s p a t i a l  patterns of the industry i n 1925, 1950 and 1 9 6 6 .  An analysis of (a)  the external forces, (b) the i n t e r n a l adjustments of the region and, (c) the resultant pattern of l o c a t i o n , constitutes the major part of the study.  A summary of these forces, predictions of the future pattern  of development and an outline of the general findings of this examination conclude the t h e s i s .  V  TABLE OF CONTENTS CHAPTER I.  PAGE THE FOREST INDUSTRY OF NORTH CENTRAL INTERIOR BRITISH COXJUMXB I A  o  o  a  o  o  o  o  o  c  s  o  O  O  O  O  O  O  O  O  o  o  o  a  o  o  o  o  O  O  O  O  O  O  O  O  O  O  o o o o o o © o o o o o o o  The Study Region  o  o  o  1  ooooooooooooo  Changes Within the Industry MethOClOlOgjr  o  O  0  O  O  ^)  o o  0  ID 3 ta SOUrCeS c o e o o o o o o o o o o o o o o o o o II.  X^  OF NORTH CENTRAL INTERIOR BRITISH COLUMBIA s- 1909-1957  19  Timber Speculation. 1909-19LU « . . . . . ° . o . . o  21  Small-Scale Productions 1915-1939 « . . . . „ . . . .  26  Areal Dispersion of Logging and Sawmillings 19UO-1957  30  15^0  A Comparison of 1925 and  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  3^4-  0  S p a t i a l Models of the Forest Industry? 1925 and 1950 CHANGE IN STRUCTURE AND LOCATION IN THE FOREST INDUSTRY OF NORTH CENTRAL INTERIOR BRITISH COLUMBIA % 1958=1966 Functional Integration and Areal Concentration o f Conversion Units  0  .  0  0  0  0  Structure of the Industry? 1966  0  0  0  0  0  0  0  0  0  0  U3  li8 ii8  0  . o o . o o o o o . o  S p a t i a l Model of the Industry; 1966 ...... .. .. .. AN ANALYSIS OF KEY FACTORS CONTRIBUTING TO THE STRUCTURAL AND LOCATIONAL CHANGES IN THE FOREST INDUSTRY OF NORTH CENTRAL BRITISH COLUMBIA . . . . . „ . . .„ . Small-Scale Productions 1915-1939 0 . 0 . 0 . 0 0 0 0 0  IV.  1I4  CHANGE IN STRUCTURE AND LOCATION IN THE FOREST INDUSTRY  Structure of the Industry?  III.  1  5il ih  79  79  vi TABLE OF CONTENTS (Cont'd,) CHAPTER  PAGE the p r a i r i e market „ „ . „ « o o  80  Factors Encouraging Change i n Location: technological l e v e l , raw material supply „ o o o o . o o o  85  Areal Dispersion of Logging and Sawmilling: 19i|0-l°57  89  Exogenous Forces:  Exogenous Forces: increased demand f o r lumber, labour, equipment and c a p i t a l shortages, lumber prices, f o r e s t management p o l i c i e s . . . . , « < > Factors Encouraging Change i n Location: lumber recovery, changes i n transportation technology, Functional Integration and Areal Concentration of Conversion Plants: 1958-1966 o o o o o o o o o o  89 »  103  o  Exogenous Forces: market demands, labour demands, changes i n p r o v i n c i a l forest management p o l i c i e s  103  Factors Encouraging Change i n Location: lumber recoveryo year-round operation, a c c e s s i b i l i t y to timber supplies, labour s t a b i l i t y , control of the marketing and shipping functions « » „ „ „ , „  117  0  V„  100  SUMMARY AND CONCLUSIONS . . . . . . . . . . . . . . . .  BIBLIOGRAPHY 0  0  0  0  o o o o o o o o o o o o o o o » o o o o  121  126  vii  LIST OF TABLES TABLE lo  PAGE Pulp and Paper M i l l s Proposed In the North Central «  »  o  o  .  o  o  o  .  !?2  .  .  .  .  .  .  .  .  .  73  Effects of Depression and Drought Upon the P r a i r i e Grain Trad©, 1928—1939 « o . © . . * « © © . . o c  83  IntSrlOX* o II, III.  IV.  VI.  «  o  .  »  o  o  Pulp Wood Chip Freight Rates, 1966  Volume of Sawmill Residue Resulting From the Manufacture of  IiXinib©!* V,  o  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  Consumption-Pattern of Forest Products i n the United States, 1950, I 9 6 0 , 1980 and 2000 . . . . . . . . . . .  100  10U  A l l o c a t i o n of Allowable Cut i n the Prince George Forest District:  1961  and  1966  .  .  .  .  .  .  .  .  .  .  .  H I  viii LIST OF FIGURES FIGURE '  PAGE  le  Log Conversion Units i n the North Central I n t e r i o r : 1955  .  .  3  2.  Log Conversion Units i n the North Central I n t e r i o r : 196b, .  .  k  3.  Timber Scaled i n the Prince George Forest D i s t r i c t and the  1919-196U  I n t e r i o r of B r i t i s h Columbia,  . . . . . .  20  ho  Log Conversion Units i n the Prince George Forest D i s t r i c t .  .  27  5.  Number of Active Sawmills i n Northern I n t e r i o r , 1920-196U.  «  31  6.  S i m p l i f i e d Flow of Lumber Manufacturing Process .  .  36  7.  I n d u s t r i a l Structure,  1925 .  8.  I n d u s t r i a l Structure,  1950 . . . . . . < < , . . . < >  38  9.  S p a t i a l Model of the Forest Industry,  1925. . . . . . .  kk  .  .  .  .  .  .  .  .  .  .  .  .  .  .  10.  S p a t i a l Model of the Forest Industry, 1950.  11.  Growing Concentration of Lumber Production i n the Northern Interior:  1925, 19U9, 196b, .  .  .  .  ,  . >;,'-. .  .  .  .  .  ,  h9  Annual Log Flow to Weldwood of Canada Operations i n Quesnel .  llu  Annual Pulpwood Chip Flow to Prince George Pulp and Paper Co. o  o  o  o  o  o  o  o  o  '  o  o  a  ,  .  13.  o  .  .  I n d u s t r i a l Structure,  o  .  .  b,6  . . . . . .  12.  Xitcto  1966 .  .  38  o  o  o  .  o  60 62  70  ix LIST OF FIGURES  FIGURE  PAGE  15o  Annual Pulpwood Chip Flow to Northwood Pulp Co, L t d .  16.  Frequency of Truck and R a i l Hauls of Sawmill Chips by Distance i n Eastern Canada  .  . . . . . .  .  O  o  75  .  0  S p a t i a l Model of the Forest Industry, 1966  18.  Timber Scaled i n the Northern I n t e r i o r and Bushels of  19.  Canadian Wheat Exported, 1921-1938 . . . . . . Average F.O.B. Price f o r B r i t i s h Columbia Spruce Lumber,  20.  0  0  0  0  4  6  0  0  0  0  0  0  .  71  17.  1^1,5  .  . . .  .  0  .  O  O  O  .  .  77  .  .  81  O  Blj  Merchantable Timber i n the Fort George Forest D i s t r i c t as of 1^37  ©  o  o  o  e  o  o  o  o  o  o  1956 . . . . < >  o  o  0  .  o  o  o  e  o  3-7  21.  Forest A l i e n a t i o n ,  22.  Average Value of Interior Spruce Lumber and Basic Hourly Wage i n North Central B r i t i s h Columbia, Forest Alienation, 1961*  22i.  Pulpwood Harvesting Areas Awarded, 1966  .  .  c  o  ° . . o > • 95  1950-1966 . < , „ . .  23.  .  0  o  .  o  .  o  .  .  .  o  107 110  o  o  .  . o . 113  CHAPTER I THE FOREST INDUSTRY OF NORTH CENTRAL INTERIOR BRITISH COLUMBIA S i g n i f i c a n t changes have taken place i n the forest industry of North Central I n t e r i o r B r i t i s h Columbia, p a r t i c u l a r l y since 1955. Logging, once r e s t r i c t e d to lands adjacent t o the railways and the upper Fraser V a l l e y has scattered throughout the region.'  Conversion  plants, f o r several years dispersed over a wide area, have again concentrated.  The Prince George area, at one time the centre of the  lumber production industry, now supports not only sawmills, but also plywood, pulp and paper processing f a c i l i t i e s .  A complex c i r c u l a t i o n  of raw materials has resulted, i n which a wide range of grades and species of logs move t o conversion plants where they can be best utilized. These changes i n the pattern of the industry provide the major themes of t h i s study.  S p e c i f i c a l l y , changes i n the structure and  l o c a t i o n of the industry are described and analysed.  Since the forest  industry dominates the economy of the area, i n many cases the changes i n structure of the industry have affected the area generally.  Thus,  this study w i l l add to the general knowledge not only of the f o r e s t industry but also of North Central B r i t i s h Columbia. A v i s u a l comparison of two maps, Log Conversion Plants i n the North Central I n t e r i o r i n 1955 and I96I4 i l l u s t r a t e s the changes that occurred i n the s i z e , number and l o c a t i o n of l o g conversion units over the l a s t decade. industry.  Each map represents a stage i n the development of the  In the 1950' s the industry was characterized-.by hundreds of  2 small portable operations scattered throughout the timber stands the region.  of  There logs were f e l l e d , dragged a few yards to a crude  saving " o u t f i t " and sawed into rough, green lumber.  The lumber was  loaded onto a truck and transported to a c e n t r a l l y - l o c a t e d planing m i l l where i t was  dressed,^" dried and marketed.  Figure 1 i l l u s t r a t e s  the importance of Prince George and Quesnel as the planing centres of the region.  Sawmills marketing more than one m i l l i o n board feet of  lumber annually i n 1955  are also mapped on Figure 1.  These m i l l s  accounted f o r 85 per cent of the rough lumber produced.  In a d d i t i o n ,  300 portable m i l l s cutting less than a m i l l i o n feet were scattered throughout the timber stands of the region.  These m i l l s have not been  mapped because of t h e i r intermittent production and s h i f t i n g l o c a t i o n s . Only III integrated sawmill/planer units and one plywood m i l l i n the North Central I n t e r i o r at t h i s time.  operated  There were no pulp m i l l s .  By 196I| the i n d u s t r i a l pattern had a l t e r e d .  In p a r t i c u l a r , f i v e  changes had taken place, several of which can be noted on Figure 2. There was:  (1)  growth i n the t o t a l output of wood products  the greatly increased number of producing u n i t s ) ; (2) large-scale operations  (seen i n  expansion of  ( i l l u s t r a t e d by the presence of l a r g e r graduated  c i r c l e s ) ; (3) r e l a t i v e concentration of a l l conversion units i n t o urban centres; (U) the d i v e r s i f i c a t i o n of production (indicated by the  presencd  2 of plywood and pulp and paper p l a n t s ) ; and (5) a separation of logging  1. surfaces,  Dressing i s the planing of lumber to achieve smooth, even  2. The pulp m i l l s shown i n Figure 2 have been proposed and have secured timber allotments. Construction of two of the s i x m i l l s i s complete. The other four m i l l s w i l l be operating before 1970.  Figure 1  3  Figure 2  Log Conversion Plants in the North Central Interior. 1964 50  5 O  10  o  oO  100  300  200  20  Millons of feet, B.M. per annum.  Sawmill or sawmill / planer unit. Q  Planer mill.  <||) Plywood plant. 6S§ Pulp or paper mill Source'  Sawmills and Planing mills by Ranger District.  British  Columbia Department of L a n d s and Forests . V i c t o r i a , B.C, 1 9 6 4 Estimates Central  of various entrepreneurs in the N o r t h  Interior.  and wood conversion.  Only a few small seasonal lumber producers  cutting less than f i v e m i l l i o n feet s t i l l followed the  dispersed  pattern of the 1950 decade, and by 1967, even these sawmills had  dis-  appeared. The major hypothesis of the study states that exogenous forces, p a r t i c u l a r l y changes i n markets f o r f o r e s t products from peripheral locations, determined the s i z e and e f f i c i e n c y of the industry.  These  forces, beyond the control of the l o c a l entrepreneur, include expansion or contraction of markets, government decisions to b u i l d railways m i l i t a r y establishments,  or  changes i n public p o l i c i e s on forest manage-  ment, fluctuations i n lumber prices on the i n t e r n a t i o n a l market and the introduction of a pulp economy.  The r e l a t i v e importance of these  forces vary, and the influence of any p a r t i c u l a r f a c t o r s h i f t s with the time period under i n v e s t i g a t i o n .  Changes i n the structure of the  industry or l o c a t i o n pattern are i n t e r n a l responses of companies within the region to these exogenous forces.  Increased s i z e cf production  and t h e i r c e n t r a l i z a t i o n i n the decade  1955-65; changes  technology and i n the proportion of the log recovered  units  i n transportation  are responses to  a changing economic climate within the North Central I n t e r i o r . Methodology. pose questions  The  changes demonstrated i n the f o r e s t industry  which are most appropriate f o r geographic a n a l y s i s .  This examination of the forest industry f a l l s into the category of t r a d i t i o n a l studies within geography which analyse the problem of i n d u s t r i a l l o c a t i o n i n terms of factors such as proximity to raw sources, a c c e s s i b i l i t y to transportation f a c i l i t i e s , or the  material  availability  6 of a q u a l i f i e d labour force.  3  However, more c l a s s i c a l location theory  i s useful i n developing the study as w e l l .  Three v a r i e t i e s of l i t e r -  ature within the f i e l d of geography a i d i n the development of the methodology of this study:  (a) empirical studies of i n d u s t r i a l l o c a t i o n ,  (b) c l a s s i c a l l o c a t i o n theory, and (c) studies of f o r e s t r y and the forest industry. Most empirical studies evaluate the major factors of l o c a t i o n i n terms of t h e i r r e l a t i v e importance i n explaining the establishment of one or more manufacturing plants within a given region, or change i n pattern of l o c a t i o n .  I t i s assumed the locative decision i s based e i t h e r  on the minimization of production costs or the maximization of p r o f i t . The approach and emphasis, however, varies i n these studies.  Several  attempt to analyse the t o t a l i n d u s t r i a l structure of p a r t i c u l a r regions,  li so that major trends i n t h e i r development might be i s o l a t e d .  Some of  the studies are h i s t o r i c a l i n nature, and l i k e Lonsdale's a r t i c l e on the Siberian industry before 1817, examine aspects of manufacturing a c t i v i t y at a p a r t i c u l a r time period i n the past.  A few i n d u s t r i a l  3. For a complete discussion of various locative factors see R.C. E s t a l l and R. Ogilvie Buchanan, I n d u s t r i a l A c t i v i t y and Economic Geography, London: Hutchinson and Company, 1961, and E. W i l l a r d M i l l e r , A Geography of Manufacturing, Englewood C l i f f s , N.J.: P r e n t i c e - H a l l , Inc., 1962, pp. 1-19. b. The a r t i c l e s by P. Karan, "Changes i n Indian I n d u s t r i a l Location," A.A.A.G., LIV (September, 196b) pp. 336-35U; G.J.R. Linge, "The D i f f u s i o n of Manufacturing i n Auckland, New Zealand," Economic Geography, XXXLX (July; 1963), pp. 23-39 and A. Pred, "The I n t r a Metropolitan Location of American Manufacturing," A.A.A.G., LIV (June, 196b) pp. 165-180, i l l u s t r a t e application of this approach. 5. R.E. Lonsdale, "Siberian Industry Before 1917: "The Example of Tomsk Guberviya," A.A.A.G., LIV (December, 1963) pp. b79-U93.  7 6 geographers such as Stafford  7 and Harris  focus upon the role of a  single variable i n the l o c a t i o n of an i n d u s t r i a l pattern.  Others are  e s s e n t i a l l y evolutionary, where emphasis i s placed upon the dynamic nature of a p a r t i c u l a r industry, with the current i n d u s t r i a l pattern seen as one i n a series of stages. basic questions:  Most evolutionary studies pose  (1) What has been the change i n s i z e , number and  location of i n d u s t r i a l units?  (2)' How has the nature of the pattern  changed ( i . e . , i n terms of concentration or dispersion)?  (3)  the c i r c u l a t i o n patterns a l t e r e d within the region?  What factors  (!|)  How have  have been responsible f o r these changes, and to what degree has the role of the various l o c a t i v e factors changed through time? follows the evolutionary methodology.  This study  Within this general framework  the emphasis here i s upon the explanation of adjustments i n l o c a t i o n i n periods of s t r e s s . This emphasis contrasts with studies such as 8 Boas' on the American automobile industry, set by the studies of Rogers  and Hardwic  but follows the precedent which recognize the  influence both i n t e r n a l and exogenous forces have had on the development of two d i f f e r e n t i n d u s t r i e s . 6. H.A. S t a f f o r d ^ "Factors i n the Location of the Paperboard Container Industry," Economic Geography. XXXVI (July, I960) pp. 260-267. 7. C. H a r r i s , "The Market as a Factor i n the L o c a l i z a t i o n of Industry i n the United States," A.A.A.G. XLIV (December, 195b) pp. 3 l 5 - 3 b 8 . 8. C.W. Boas, "Locational Patterns of American Automobile Assembly Plants, 1895-1958," Economic Geography, XXXVII (July, 1961) pp. 218-230. 9. H.B. Rogers, "The Changing Geography of the Lancashire Cotton Industry," Economic Geography, XXXVIII (October, 1962), pp. 299-3H). 10. W.G. Hardwick, Geography of the Forest Industry of Coastal B r i t i s h Columbia, Canadian Association of Geographers, B r i t i s h Columbia Divi s i o n , Occasional Papers i n Geography, No. 5, 1963.  8 Views drawn from c l a s s i c a l l o c a t i o n theory are of use i n developing t h i s study as w e l l .  The f o r e s t processing industry  (especially i t s extractive phases) i s strongly oriented towards i t s raw material source.  The reasons f o r t h i s orientation are numerous:  the raw materials used (logs) lose considerable weight and bulk during processing, the value per unit of material i s r e l a t i v e l y low, number of raw materials used i n the manufacturing processes  the  can be  reduced e s s e n t i a l l y to one, timber, and the p o s s i b i l i t y of s u b s t i t u t i o n of this one e s s e n t i a l ingredient i s low.  Location theory, stemming  from the studies of A l f r e d Weber,offers t h e o r e t i c a l evidence f o r wood processing plants being located within the general bounds of the area rather than the market area.  Weber's loss of weight  supply  hypothesis  states that i f the raw materials of an industry lose weight i n the process of manufacturing so that the f i n i s h e d product i s s u b s t a n t i a l l y l i g h t e r than i t s raw materials then the industry w i l l be drawn to the  11 s i t e of raw materials. The existence of the f o r e s t industry i n the North Central I n t e r i o r confirms \ifeber's hypothesis  at the national s c a l e .  The  processing u n i t s , the logging "show", plywood m i l l s , sawmills and  various pulp  and paper plants are c l e a r l y located within a supply area (North Central B r i t i s h Columbia) as opposed to the market areas (the Canadian p r a i r i e s , Eastern Canada and the United S t a t e s ) .  Within the region i t s e l f ,  however, the l o c a t i o n of i n d u s t r i a l plants has experienced  several major  11. C.J. F r i e d r i c h , A l f r e d Weber's Theory of Location of Industries, Chicago: University of Chicago Press, 1929.  s h i f t s , as already noted i n the discussion of Figures 1 and 2.  At  this regional scale the degree of orientation toward the raw material source and the rationale supporting the l o c a t i o n patterns ?iave varied over the years and the theory becomes less appropriate.  However,  Leber's concept i s applicable i n the explanation of the s h i f t i n sawmill location since 1 9 5 8 . Various other geographic concepts have been found to be useful i n this study.  The concept of i n i t i a l advantage as used by Pred i s  i m p l i c i t i n the explanation of the r e l a t i v e l y l a t e development of the 12  industry.  The industries of the southern i n t e r i o r and coastal regions  acted as intervening opportunities which delayed e x p l o i t a t i o n of the north. The concepts developed by Hoover concerning the nature of'transportation costs have been applied i n the discussion of the expanding h i n t e r 13  lands of conversion plants.  Comparisons of the cost of d i f f e r e n t  forms of transportation (truck, r a i l and water) are based on his idea that costs vary with distance and form of transport and that the most economic form f o r a given distance can be determined. for  S p a t i a l models  the d i f f e r e n t stages i n the industry's development have been  constructed to i l l u s t r a t e the t h e o r e t i c a l spacing of i n d u s t r i a l units and flows of products.  Losch's principles regarding market area 1U  competition have been applied.  His theory that individual market  12. A. Pred, " I n d u s t r i a l i z a t i o n , I n i t i a l Advantage and American Metropolitan Growth, Geographical Review, LV (February, 1 9 6 5 ) , pp. 1 5 8 - 1 8 5 . 13. E.M. Hoover, The Location of Economic A c t i v i t y , New McGraw-Hill, 1 9 U 8 .  York:  i l l . A . L o s c h , Economies of Location, New Haven: Yale University Press, 19514. See also S. Valvanis, "Losch on Location." American Economic Review, XLIV (September, 1 9 5 5 ) , pp. 6 3 7 - 6 U l i .  10  areas form a continuous hexagonal l a t t i c e when competition between entrepreneurs f o r the sale c f goods exists has been u t i l i z e d .  I t has  been assumed that transportation costs are then minimized, every customer i s served and the market areas are completely s p a c e - f i l l i n g . It i s argued that as competition f o r manufactured  products and raw  materials i n the North Central Interior increased, the t h e o r e t i c a l location pattern of producing units became hexagonal i n nature. Most studies of the forest industry i n the f i e l d of economic geography assume that i n d u s t r i a l units are located within supply areas and focus upon l o c a t i o n s h i f t s within the region.  Several studies,  such as Evelyn Dinsdale's examination of the lumber industry of Northern New York, are concerned with the stages of lumbering and the role  li technological change played i n determining changes i n s p a t i a l patterns. The logging technology common i n the North Central I n t e r i o r during the 1920's was not unlike that employed i n both Eastern United States and New Zealand i n the early y e a r s . H o w e v e r , the changes i n transportat i o n technology from horse and s l e d to lumber truck and thence t o logging truck have been recognized here as factors permitting s p a t i a l changes to take place rather than as determining f a c t o r s .  They are i n  15. Evelyn M. Dinsdale, "Spatial Patterns of Technological Change: The Lumber Industry of Northern New York," Economic Geography, XXXXI (July, 1965), pp. 252-27b. See also K.A. Erickson, "Isochrons of Logging on the P a c i f i c Slope of Oregon, 1890-I9b0," Yearbook of the Association of P a c i f i c Coast Geographers,' XIX, 1957, pp. 19-2ii. 16. Evelyn Stokes, "Kauri and I«ihite Pine: A Comparison of New Zealand and American Lumbering," A.A.A.G., LVT (September, 1966), pp.  Ui0-U50.  11 f a c t dependent v a r i a b l e s , c l o s e l y related to the current economic climate within the region.  In many cases technology employed i n other  regions was not introduced to the North Central I n t e r i o r , or i f i t was, 17 not u n t i l several years l a t e r .  1  Consequently, emphasis i s placed on  exogenous factors influencing the general economic climate of the area rather than on s p e c i f i c technological changes which developed as a r e s u l t of changing conditions. Other studies have examined the role that raw materials have played.  Usually these studies describe the e x i s t i n g timber  resources  during d i f f e r e n t time periods, and i n a general way relate the resources  1p to the e x i s t i n g i n d u s t r i a l pattern.  A few studies, such as Helen  19 Hunter's  i s o l a t e a p a r t i c u l a r phase of the industry and examine the  relevant l o c a t i v e f a c t o r s .  However, few concepts have been developed  i n these studies that have been found to have a p p l i c a t i o n i n this investigation. • Rarely have geographic studies examined the s p a t i a l pattern of each of the phases (extraction, processing and marketing) of the industry and the relationships e x i s t i n g between the phases to achieve a composite view of a p a r t i c u l a r f o r e s t r y region. Walter G. Hardwick, 17. The logging railway which was used extensively i n other lumbering areas and which permitted the rapid l i q u i d a t i o n of resources was never used i n the North Central I n t e r i o r t o any great degree. 18. See Woodrow R. Clevinger, "Locational Change i n the Douglas F i r Industry," Yearbook of the Association of P a c i f i c Coast Geographers, XV, 1953, pp. 23-31, and Robert M. Bone, "A Geographical Appraisal of the Soviet Forest Resource," The Forestry Chronical. XLI (September, 1965),  PP. 3b5-351.  19. Helen Hunter, "Innovation, Competition and Locational Changes i n the Pulp and Paper Industry: 1880-1950, Land Economics, XXXI, (November, 1955), pp. 31U-327.  12 i n one of the few studies of this type, traced the changes that occurred i n the forest industry of coastal B r i t i s h Columbia from i860 20 to I 9 6 0 .  Besides recognizing the influence that exogenous factors  such as government policy and market demands had on the industry, he also examined the component parts of the industry (the raw material and waste product flows, extraction sites and conversion plants), looked at the internal functioning of the industry by tracing corporate linkages, and constructed a number of s p a t i a l models of the industry. In his conclusions, Hardwick was able to weight the relative importance of the various factors influencing location changes, and to predict future patterns to emerge i n other forest industry regions as well as i n Coastal B r i t i s h Columbia. This study follows the precedent set by the t r a d i t i o n a l school of empirical geographic studies, particularly the one by Hardwick as outlined above. An overview of the development of an industry region i s presented rather than the analysis of a particular firm.  In other  words, the study i s concerned with the aggregate rather than the individual locative decision.  Secondly, the industry i s examined from  an actual and specific demand and supply point of view. A primary concern i s how the industry region has reacted to external pressures such as lumber and labour demands. Interviews with entrepreneurs i n the area, supplemented with data from secondary sources such as early 20. Walter G. Hardwick, Geography of the Forest Industry of Coastal B r i t i s h Columbia, Canadian Association of Geographers, B r i t i s h Columbia D i v i s i o n , Occasional Papers i n Geography, No. 5, 1963.  13  trade journals have been used to isolate the major factors contributing to the development of the industry. Emphasis has been placed on the role the t r a d i t i o n a l locative factors played i n the locative and structural changes which characterized the industry.  The development  of a few selected firms have been used to i l l u s t r a t e the trends characteristic of particular time periods.  The thesis i s , clearly, an  empirical case study of an industry, but i s one which can be used to illuminate certain features of c l a s s i c a l location and economic theory. General location principles have been employed to relate the industrial location problem of this industry to others. Four basic periods of development i n the forest industry of the North Central Interior have been i d e n t i f i e d and the series of stimuli and responses which shaped the spatial patterns of the industry i n each period have been isolated. The external forces, internal adjustments of the region, and the resultant locational pattern i n each period are outlined i n the following series of statements.  I t i s proposed f i r s t l y ,  that exogenous forces have been most pervasive i n the evolving geography of the industry: (i)  i n the early years with the construction of a r a i l l i n e across the region.  (ii)  between 1909 and 1939 with the fluctuating market conditions and the intervening opportunity of other timber areas.  (iii)  from 19liO-1958 with the increased demands f o r lumber products, war-time shortages of labour equipment and c a p i t a l , high lumber prices and the lack of a positive management policy f o r the forests.  (iv)  after 1958 with the buoyant market conditions, r i s i n g labour costs coupled with stabilized lumber prices and changes i n provincial management p o l i c i e s .  lU And secondly, i t i s suggested that internal adjustments and adaptations of the industry region important i n developing the patterns were: (i) (ii)  (iii)  minimal technological development between 1909 and 1939 the continuing high percentage of waste per log and changes i n transportation technology from 19^0 to 1958 the s h i f t to f u l l u t i l i z a t i o n of timber brought about by the introduction of pulp mills after 1958.  F i n a l l y , the patterns to develop i n each period were: (i) (ii)  (iii)  (iv)  the establishment of speculative claims i n the 1900's the establishment of a limited number of marginal producers located proximate to the r a i l l i n e between 1909-1939 a growth i n the number of lumbering operations and a movement of timber cutting and sawmilling into more remote areas. a higher per unit investment, the growth of large-scale production units, d i v e r s i f i c a t i o n of production, integration of functions and areal concentration of production after 1958.  The Study Region.  The North Central Interior region of B r i t i s h  Columbia stretches from 'Williams Lake i n the south to the Peace River area i n the north, and from the crest of the Coast Mountains i n the west to the provincial boundary i n the east. Local differences i n the quality and type of timber stand and methods of extraction exist, but the North Central Interior as a forest industry region has a certain cohesiveness.  While the Williams Lake area differs physically from  the Peace River country on one hand, and the Burns Lake area on the other, a l l three are functionally t i e d together by their forest product  15  flows.  The forces influencing the development of the industry and  responses which have been made are common throughout the area.  the  Conse-  quently, a meaningful region can be defined i n terms of the forest industry f o r analysis and projection. Forests and the f o r e s t r y industry have dominated the North Central I n t e r i o r landscape since the e a r l y 1900's.  Logging and  saw-  m i l l i n g provided the mainstay of the region's economy throughout the 1920's and the depression of the 1930's. a f t e r World War  However, i t was not  until  II that the production of the region began to contribute  s i g n i f i c a n t l y to B r i t i s h Columbia's f o r e s t industry.  The Prince George  Forest D i s t r i c t , the administrative unit that encompasses the study area, now  accounts f o r half the i n t e r i o r region's f o r e s t product output. The North Central I n t e r i o r region i s an area which has t r a d i t i o n -  a l l y lacked a domestic market, and has been dependent upon the successful exportation of i t s wood products.  This dependence has made the  area  p a r t i c u l a r l y vulnerable to fluctuations i n economic conditions of other areas.  As i t has already been suggested, stimulation f o r f o r e s t  i n d u s t r i a l development i n the region has come l a r g e l y from the From i t s i n i t i a l beginning i n 1909,  outside.  the f o r e s t industry of the North  Central I n t e r i o r has developed i n response to a number of exogenous forces and not as a r e s u l t of i n t e r n a l stimulation generated by e x i s t i n g conditions within the Data Sources.  region. The h i s t o r i c a l data presented i n this study was  obtained primarily from trade journals of the p r o v i n c i a l f o r e s t industry. Development of the industry from 1909  to 1930  i s described i n reports  21  appearing i n the Western Lumberman.  16 22  The D r i t i s h Columbia Lumberman  proved to be an invaluable source of data f o r the years a f t e r 1930. Most of the h i s t o r i c a l records of i n d i v i d u a l companies have been destroyed, either during successive changes i n ownership or through f i r e . Aggregate data on the growth of the log scale and the number of  23 conversion units was obtained from Forest Service data.  Maps, including  those showing s i z e and l o c a t i o n of conversion units i n 1925, 1955 and 196h, and forest a l i e n a t i o n i n 1956 and 1964, also have been compiled  ,„24 from this data source.  The Royal Commissions of 1945  25 and 1956  were  used extensively f o r background material while the verbatum t r a n s c r i p t of the 1956 Commission and personal interviews held i n the spring of 1966 provided the basic i n t e r p r e t i v e data f o r the study.  Most companies  involved i n the forest industry of the North Central I n t e r i o r were w i l l i n g to supply data f o r this study. particularly helpful.  A number of individuals were  Mr. Conrad Pinette, Manager of Pinette and Therrien  Planer M i l l s Ltd. i n Williams Lake, supplied general information and cost figures f o r the study. Mr. Harold Jacobson, General Manager, Jacobson 21. Western Lumberman. Vancouver, B.C., Business Publications of B.C. (monthly)^ The t i t l e of this journal has varied through the years as follows: V o l . I (January, 1904) to V o l . I I (February, 1905) t i t l e d B r i t i s h Columbia Lumberman; V o l . I I (March, 1905) to V o l . IX (1907) t i t l e d Lumberman and Contractor; V o l . V (1908) t i t l e d Western Canada Lumberman; 1908-1930' t i t l e d Western Lumberman. I t ceased publication July, 1930. 22. B r i t i s h Columbia Lumberman. Vancouver, B.C., B.C. Timber Industries Journal Ltd., January, 1917 - (monthly). 23. Annual Report(s). Forest Service, Department of Lands and Forests, V i c t o r i a , B.C., 1925-1967. 2b,. Gordon McG. Sloan, Royal Commission on the Forest Resources of B r i t i s h Columbia, V i c t o r i a , B.C., C F . B a n f i e l d , Printer to the King, 1945« 25. Gordon McG. Sloan, Royal Commission on The Forest Resources of B r i t i s h Columbia, 1956, V i c t o r i a , B.C., Queen's P r i n t e r , 1957 (2 v o l s . ) .  17 E r o t h e r s F o r e s t P r o d u c t s L t d . of W i l l i a m s Lake o u t l i n e d the development of h i s company i n d e t a i l so t h a t i t c o u l d be used as a case s t u d y .  Mr.  Dennys Moore, Fulpwood Chip Buyer f o r F r i n c e George P u l p & Paper Co. L t d . , was h e l p f u l i n o u t l i n i n g t h e p o s i t i o n of the v a r i o u s p u l p i n the area.  companies  Other i n t e r v i e w s which were p a r t i c u l a r l y v a l u a b l e were  g i v e n by Mr. M. Rustad, Rustad P l a n i n g M i l l s , Mr. G. C a i n e , Merton Lake Lumber, Mr. I . K i l l e y , F e r g u s s o n Lake Lumber,  Mr. W.  Sterling,  Qoiesnel  D i v i s i o n of Weldwood o f Canada, and Mr. R. Jewisson, P r i n c e George P u l p and Paper Co. L t d .  Encouragement  and h e l p f u l c r i t i c i s m were g i v e n b y  Dr. W a l t e r G. Hardwick, D r . J.D. Chapman, Mr. Gary E . M u l l i n s and  Mr.  R.I. Dyer. The f o l l o w i n g c h a p t e r , Chapter I I , examines the changing s i z e and l o c a t i o n of producing u n i t s w i t h i n t h e f o r e s t i n d u s t r y of North C e n t r a l I n t e r i o r B r i t i s h Columbia from 1 9 0 9 t o 1 9 5 7 .  The  general  development of the i n d u s t r y d u r i n g t h i s time i s f i r s t o u t l i n e d , w i t h p a r t i c u l a r r e f e r e n c e t o major i n f l u e n c i n g f a c t o r s and i n d u s t r y r e s p o n s e s . A comparison i s then made of the s t r u c t u r e of the i n d u s t r y i n 1925 and 1950.  Major changes i n type o f i n d u s t r i a l u n i t and l i n k a g e between  are i s o l a t e d .  Two  units  d e s c r i p t i v e models f o r each of t h e s e y e a r s a r e  p r e s e n t e d so t h a t d i f f e r e n c e s i n s p a t i a l p a t t e r n s can be  examined.  The contemporary s t a g e o f development of the f o r e s t i n d u s t r y i s d i s c u s s e d i n Chapter I I I . 195C i s o u t l i n e d .  The g e n e r a l development of the i n d u s t r y s i n c e  Major s t r u c t u r a l changes are d i s c u s s e d i n terms of  f u n c t i o n a l and c o r p o r a t e i n t e g r a t i o n .  Changes  i n type of u n i t and the  raw m a t e r i a l and waste p r o d u c t f l o w s are i l l u s t r a t e d by  examples.  18 A s p a t i a l model of the i n d u s t r y i n 1966  concludes t h i s  chapter.  Chapter IV attempts t o i s o l a t e the f a c t o r s which have caused the s t r u c t u r a l and l o c a t i o n a l changes o u t l i n e d i n the p r e c e d i n g chapters.  two  Each p e r i o d i n the development of t h e i n d u s t r y i s examined  from the p o i n t of view of exogenous f o r c e s and i n t e r n a l adjustments of the  region. The  concluding  chapter,  C h a p t e r V, p r e s e n t s  a summary o f  b a s i c f o r c e s t h a t have been i d e n t i f i e d i n c r e a t i n g the s p a t i a l o f the f o r e s t i n d u s t r y .  P r o b a b l e changes i n the f u t u r e p a t t e r n  development are s u g g e s t e d .  the patterns of  CHAPTER I I CHANGE IN STRUCTURE AND LOCATION IN THE FOREST INDUSTRY OF NORTH CENTRAL BRITISH COLUMBIA:  1909-1957  The f o r e s t industry of the North Central Interior has experienced sporadic growth over the l a s t 50 years.  The annual volume  of timber cut, when graphed, i l l u s t r a t e s that the growth i n production has taken place i n a few bursts (Figure 3), while i n other years i s evidence of s t a b i l i t y and even decline.  there  The periods of concentrated  a c t i v i t y have been the r e s u l t of forces external to the region itself,, Lacking an i n t e r n a l market, the region has been dependent upon the development of markets i n other areas„  The i n i t i a l f l u r r y of lumbering  before World War I, f o r example, was a response to the demands of the railway builders and p r a i r i e settlement.  Later, during the 1920's and  1930's low demand from the p r a i r i e market retarded the growth of the industry©  In 1940 an external lumber demand promoted a period of un-  precedented growth i n the industry©  Most recently, an accessible  pulpwood chip market, foreign c a p i t a l and a s t a b i l i z e d f o r e s t management p o l i c y have stimulated the development of the industry©  With each  of these external s t i m u l i , the f o r e s t industry of the region has been forced to change and adjust i t s i n t e r n a l structure and l o c a t i o n pattern© Four periods have been i d e n t i f i e d :  Timber Speculation 1909»lU|  Small-scale Production i n the upper Fraser V a l l e y , 1915-19391 Areal Dispersion of Logging and Sawmilling, 1940-1957J and Functional Inte=  20  Figure 3  Timber Scaled in the Prince George Forest District and the Interior of British Columbia, 1919-1964.  I  x 10'  /  \  \  -V-  \  OJ  Ll_  —\  /  /  o o  m  1 x 10  Source^ British Columbia Department of Lands, Forest and Water Resources, Forest Service Reports, 1920-1965._  • » '  n  7  '  1919  1  1  1925  1  1931  1937  1  '  '  1  1 9 4 3  1  I  I  1 9 4 9  I  • 1 9 5 5  I  1  • 1961  •  • 1 9 6 4  21 g r a t i o n and A r e a l Concentration of Conversion U n i t s , 1958-1966. These periods o f f e r a meaningful framework f o r both a d i s c u s s i o n of the development of the i n d u s t r y and an a n a l y s i s o f the f a c t o r s which have contributed t o the s t r u c t u r a l and l o c a t i o n a l changes.  This chapter  examines p r i m a r i l y the changing s i z e and l o c a t i o n of producing u n i t s w i t h i n the industry from 1909 t o 1957«- In a d d i t i o n , to i s o l a t e the major changes more c l e a r l y , models of the i n d u s t r y f o r 1925 and 1950 are presented and compared. TIMBER SPECULATION:  1909-1914  Lumbering i n the North C e n t r a l I n t e r i o r was stimulated by three exogenous f a c t o r s :  construction of the Grand Trunk P a c i f i c Railway,  settlement of the p r a i r i e provinces, and speculation i n timber by . American c a p i t a l i s t s .  S i m i l a r forces had been f e l t by the Southern  I n t e r i o r i n the 1880's and 1890's. I t was not u n t i l the b u i l d i n g of the railway a f t e r 1909, however^, that the North Central I n t e r i o r was looked upon as a region f o r timber s p e c u l a t i o n and development. The construction of Fort; George;in a n t i c i p a t i o n of the r a i l route t o the P a c i f i c created the f i r s t ; s i z e a b l e l o c a l demand f o r lumber. As i n the Southern I n t e r i o r a decade e a r l i e r , small portable  sawmills  were e s t a b l i s h e d a t various points ahead of the a c t u a l t r a c k l a y i n g t o supply t i e s and bridging m a t e r i a l , and-to serve the small which sprang up along the route.^  settlements  M i l l s producing f o r export to the  1. Lumberman and Contractor, I I I , (October 1906), p. 55*  22 p r a i r i e s were to be established later,, Speculators gambled that the Grand Trunk P a c i f i c Railway would During the l a t e 1890's and  open up the l u c r a t i v e p r a i r i e market,  1900 s the rate of population growth on the p r a i r i e s had been spectacular,, 8  Thousands of square miles of p r a i r i e s had been converted into farms  9  hundreds of hamlets had been established and several large centres had grown into populous c i t i e s .  With the increase i n population, new rail°  ways had been constructed on the p r a i r i e s and old l i n e s improved to take care of an increased volume of business.  With the enormous demands on  the lumber industry of B r i t i s h Columbia, saw m i l l s i n both the Southern I n t e r i o r and on the Coast had grown and prospered.  Investors hoped  s i m i l a r good fortune would benefit those m i l l s i n the North Central Interior, A t h i r d f a c t o r promoting: the growth of the industry of the I n t e r i o r was the i n f l u x of American c a p i t a l .  The New England and the  Southern forests had been l a r g e l y depleted before the American C i v i l War| between i 8 6 0 and 1 9 0 0 , the forests of Michigan,, Wisconsin and Minnesota had been mined.  By the turn of the century a l l the t r a d i t i o n a l  timber areas processing forest products f o r the manufacturing b e l t of 2 the United States had been exhausted. lumber industry s h i f t e d westward.  As a r e s u l t , the centre of the  Some of the midwestem lumbermen  2, Walter G, Hardwick, Geography of the Forest Industry of Coastal B r i t i s h Columbia (Canadian Association of Geographers, B r i t i s h Columbia D i v i s i o n , Occasional Papers i n Geography, No, 5s 1963) p»5»  invested i n the forest land of Washington and Oregon; others looked farther north to B r i t i s h Columbia,, These untouched stands represented the l a s t great tracts of coniferous timber i n North America,, and American lumbermen rushed to gain control of any stands which might eventually prove profitable,  Between 1890 and 1910 almost every  available area i n the province was cruised.^ The sawmills i n the Southern Interior which had the i n i t i a l advantage of location proximity-to the p r a i r i e s new marketso  s  had readily found  The most accessible and desirable timbered d i s t r i c t s  5  those i n which lumber could be produced at minimal cost, attracted the foreign investors. M i l l s cutting up to 100 000 board feet of lumber 3  daily were located i n centres such as Fernie, Waldo, Kitchener, Nelson h  and Chase,  A vigorous policy of indiscriminate cutting was followed,,  As a consequence, the areas flourished:and then rapidly declined as primary lumber producers<> As the country was logged off , the m i l l s , lacking readily accessible timber., closedo  By the 1920's the area  was producing a fraction of what i t had i n 1910  o  The North Central Interior was not ignored by the American investors.  Timber cruisers worked farther and farther north.  The  speculators i n the expectation; that the boom conditions of the Southern s  3o Timber cruising i s the i n i t i a l surveying carried out to determine the volume and species of timber i n a given area 0  h» Joseph Lawrence, "Markets and Capitals A History of the Lumber Industry of B r i t i s h Columbia (1778=1952)" (unpublished Master's thesis, The University of B r i t i s h Columbia., Vancouver, 1957), p« hZr>  21*  Interior could be repeated i n the north, poured money into the purchase of the forest lands of the area,"* In 1909 the f i r s t m i l l established i n the Prince George region was b u i l t to supply the influx of settlers 6  with building materials  0  In 1911 three more mills were established  by American and Eastern c a p i t a l i s t s , one on the Fraser River and two on the Nechako, Most of the ,operations were r e l a t i v e l y small compared with those which had developed i n the south and were aimed at meeting the requirements of incoming settlers and railroad construction,, Holdings were acquired and sawmills erected east of Prince George, i n anticipation of the railway,, The typical m i l l used a circular saw and cut twenty to t h i r t y thousand feet of lumber daily. .  Oxen or horses . 7  were used i n the logging "outfit , (or l a t e r a donkey engine). 1  1  Usually  the area exploited consisted of one or two quarter sections of timber. A l l the mills located i n r i v e r valleys along the route of the Grand Trunk Pacific Railway,  Logs were f e l l e d into the rivers and floated  downstream to the m i l l s , A few operations were large, l i k e that of Herman J , Rossi from Idaho, one of the prominent capitalists of the American Northwest, He headed a syndicate which secured -control of some large blocks of land i n the Grand Trunk Pacific belt and then acquired an additional  5,  Lumberman and Contractor IV, (June 1907), p, 1*5><>  6«  F  0  E, Runnalls, A History of Prince George (Vancouver^ Wrigley  Company, 191*6) p, s  88,"  7o A donkey ejogine i s a stationary-engine which drives cables and drums f o r yarding of logs i n the "woods» M  seventy-thousand acres i n Central B r i t i s h Columbia, His plans called for the development of the lumbering, mining and agricultural potential of the region. Plans were l a i d for the building of a new town, Fraser City, near present-day Prince George  0  The c i t y was expected to be a  major transportation centre, with railroads joining the Grand Trunk P a c i f i c Railway to the Peace River country i n the north and the Barkerville area i n the south. Large saw and planing mills were to be erected, an extensive logging railroad b u i l t and a large capacity pulp m i l l constructed at a later date.  The collapse of the boom i n  1913 brought an end both to Rossi's scheme and to most of the other 9  proposed lumbering operations. The survival of the i n t e r i o r lumber industry was dependent almost entirely upon the continuation of the prairie demand and the needs of the railway builders.  Both were severely curtailed i n 1913.  Competi-  tion by American lumbermen f o r the prairie market hurt the Interior industry, and then i n 19111, the start of World War I temporarily halted a l l immigration to Canada. The expansion of prairie settlement ceased. 8. Western Lumberman, V I I , (-April 1910), p. l£  0  9. Ho R. MacMilian attributed the collapse of the lumber industry i n 1913 to the slackening i n building operations i n the Pacific states of the United States. The American mills came to regard the prairie provinces as a "dumping ground" f o r a l l surplus products. These products were sold at greatly reduced prices. At the same time B r i t i s h Columbia producers were shut out of the United States markets by t a r i f f s . Thus, the depression h i t the provincial lumber industry a year prior to the start of World War I , Western Lumberman, XII (January 19l5) P« 21, s  26 The effect on the lumber industry of B r i t i s h Columbia was disastrous. The small l o c a l demand was i n s u f f i c i e n t to take up the slack and one by one the m i l l s e i t h e r closed or continued operation on a greatly reduced s c a l e . In 191U the industry of the North Central I n t e r i o r had yet to develop a f i r m market.  Its growth had been based upon considerable  speculation but very l i t t l e development.  Most of the m i l l s remained  small, r e f l e c t i n g the size of the l o c a l demand. The expectations of the investors were shattered.  The favorable market conditions which  had stimulated the development of the Southern I n t e r i o r were not to be repeated i n the north u n t i l the IS^O's.  SMALL-SCALE PRODUCTIONS  1915-1939  The number and size of the sawmills i n the North-Central  Interior  s t e a d i l y increased i n the years a f t e r World War I . Most of the m i l l s located i n the spruce-Douglas f i r b e l t of the upper Fraser V a l l e y , east of Prince George, and the railway.  A l l were i n close proximity to the p r a i r i e market The small portable m i l l s which had located around  Prince George i n 1909 and 1910 disappeared.  The year 1925 has been  chosen to i l l u s t r a t e the pattern c h a r a c t e r i s t i c of this p e r i o d . ^ Figure i* shows the l o c a t i o n a l pattern to be l i n e a r , c l o s e l y following  10. The years between 1925 and 1939 were stable ones i n the lumber industry, as i l l u s t r a t e d by the f a c t that the number of active m i l l s i n the region increased by only 16.  LOG CONVERSION UNITS IN THE PRINCE GEORGE FOREST DISTRICT, 1925 Some  I  3  jfe  £fe  Millions of feet B.M. per annum  . TO C •i. CD  Source. Foreit Monoqament Report, 1925, B.C. Foreet Service-  rs  28  11  the Canadian N a t i o n a l R a i l w a y r o u t e . Between 1910  and 1922  numerous m i l l s  o p e r a t e d i n t e r m i t t e n t l y on  the Canadian N a t i o n a l R a i l w a y l i n e west of P r i n c e George.  A l l had  c l o s e d down w i t h the e x c e p t i o n o f t h e m i l l a t T e r r a c e which c u t  12 359000 f e e t a s h i f t .  M i l l s l o c a t e d along the P a c i f i c Great E a s t e r n  R a i l w a y n o r t h o f W i l l i a m s Lake are not p l o t t e d on F i g u r e h, because o f the incompleteness o f d a t a .  Lumbering  a t t h i s time i n Quesnel  and  W i l l i a m s Lake c o n s i s t e d o f a few p o r t a b l e m i l l s s e r v i n g s m a l l l o c a l  13 markets.  An opening:to the p r a i r i e market was  to w a i t u n t i l t h e  completion o f t h e Q u e s n e l - P r i n c e George P a c i f i c Great E a s t e r n l i n k i n  1952. E a s t o f P r i n c e George the m i l l s which began o p e r a t i n g i n the e a r l y 1920 s dominatedithe i n d u s t r y of the North C e n t r a l !  f o r the next 20-years.  Interior  E a g l e Lake Sawmills a t Giscome and the U n i t e d  G r a i n Growers' m i l l a t Hutton both cut 25 m i l l i o n f e e t o f lumber i n some y e a r s .  S m a l l e r m i l l s i n c l u d e d the Upper F r a s e r Lumber Company  of Dome Creek, the A l e z a Lake m i l l s , the Hansard Lake Lumber Company the Penny Lumber Company and the Gale & T r i c k m i l l a t Hansard By 1925  t h e r e were 18 m i l l s l o c a t e d a l o n g the Canadian  5  Lake,  National  11. F o l l o w i n g World War I the Grand Trunk P a c i f i c Railway was t a k e n o v e r by the F e d e r a l Government and c o n s o l i d a t e d i n t o the Canadian N a t i o n a l Railway. P  12. West Coast Lumberman, XL, (March 1922), p, 21, c i t e d i n Lawrence, op, c i t . , p, 57~ 13. Gordon R, E l l i o t , Quesnel - Commercial Centre of the C a r i b o o G o l d Rush (Quesnels C a r i b o o Observer L t d , , 1956), p, I8I4, ~ ~  Railway l i n e between P r i n c e George and b r o a d v a l l e y of the  the A l b e r t a b o r d e r i n the  upper F r a s e r , a p a t t e r n which continued  until  19140. Sawmills throughout t h i s p e r i o d t i e d to t h e i r raw m a t e r i a l s u p p l y .  continued  I n 1917  t o be  closely  the Northern I n t e r i o r  correspondent f o r the Western Lumberman s t a t e d ? The p o l i c y of t a k i n g the s a w m i l l t o the t i m b e r i s one t h a t i s t h o r o u g h l y e s t a b l i s h e d . Even the l a r g e r Sawmills are l o c a t e d i n f a i r l y c l o s e r e l a t i o n s h i p to the t i m b e r s u p p l y , as a r u l e , and i n c o u n t i y of rough topography where the t r a n s p o r t a t i o n of l o g s i s more d i f f i c u l t , the l a r g e r m i l l i s r e p l a c e d by the s m a l l e r s e t t i n g s , thus r e d u c i n g the volume of waste t h a t has t o be taken over the d i f f i c u l t hauls i n the form of lumber p r o d u c t s . Ik it  The  Giscome m i l l , f o r example, had  immediately a d j a c e n t The  extensive  timber l i m i t s  t o the l a k e on which i t was  situated.  t e c h n o l o g i c a l l e v e l of the i n d u s t r y d i r e c t l y  the p a t t e r n s  which e v o l v e d .  U n t i l 19U0  horses and  sleds  the primary means of l o g t r a n s p o r t .  In a d d i t i o n , the  l a k e s were used f o r both l o g storage  and  operations  moved by s l e d t o the m i l l o r r i v e r . t h e r e f o r e , were found i n c l o s e The  sawmilling  c o n s i s t e d of a few  ill.  transport.  were r e s t r i c t e d t o the d i s t a n c e  '  t h a t the  influenced remained  r i v e r s and Logging  logs could  Logging and m i l l i n g  be  operations,  proximity.  i n d u s t r y throughout the 1920's and  marginal producers.  Western Lumberman, XIV,  An  unstable  1930 s 3  p r a i r i e market,  (September 1917), p.  30,  15o Timber l i m i t s r e f e r t o Crown acreage l e a s e d t o a l i c e n c e e under c o n t r a c t f o r removal o f t i m b e r under s p e c i f i c c o n t r a c t r e g u l a t i o n s .  plus a problem of overcapacity were the causes of t h i s situation,. The lumber operations  i n the upper Fraser V a l l e y were i n part  residuals of the previous  era of American speculation.  The  opening  years of the century had been followed by an over-zealous period of sawmill construction. of pre-World War  The entrepreneurs'  expectation of a r e v i v a l  I boom conditions f a i l e d to m a t e r i a l i z e .  l°UO's the industry was  U n t i l the  characterized by the low output and  inter-  mittent production of large-capacity m i l l s ,  AREAL DISPERSION OF LOGGING AND  1940-1957  SAWMILLING%  The war years and the post-war decade were to the North Central I n t e r i o r what the turn of the century years had been to the Southern Interior,  From an industry cutting 97 m i l l i o n feet of logs i n 1925 l6  i t rose to one cutting 67$ m i l l i o n per annum by 1 9 5 6 ,  In 1939,  Prince George Forest D i s t r i c t reported 43 active sawmills j by the number of producing units registered 687-,  the  1956  (Figure 5 ) ,  A sudden and sustained increase i n demand f o r lumber stimul a t e d t h i s expansion.  With the outbreak of the Second World  War,  B r i t i s h Columbia became a major supplier of B r i t i s h and Canadian war needs.  Construction of a i r bases on the p r a i r i e s became a natural  market f o r i n t e r i o r producers during the early 1940's„ following the war,  In the years  a b u i l d i n g boom i n both Canada and the  United  16. B r i t i s h Columbia Department of Lands and Forests, Annual Report of the Forest Service ( V i c t o r i a , B,C,s Queen's P r i n t e r , 1925  and 1957),  ~  States kept the demand at a high l e v e l .  The r e s u l t i n North Central  B r i t i s h Columbia was dispersion of producing units throughout the region. The developments which had taken place i n the area by 1955 described i n Figure 1.  are  The capacity of the sawmills along the  Canadian National Railway east of Prince George remained r e l a t i v e l y unchanged from 1925.  New  operations were established i n the Peace  River country, the Summit Lake region around Vanderhoof and Fort Fraser i n the west, and i n the Quesnel and Williams Lake areas of Prince George.  south  Construction of transportation l i n k s to the south  and north opened up these v i r g i n timber areas.  The number of large  stationary sawing operations did not expand greatly during t h i s period.  By 1955  only 22 m i l l s were producing over f i v e m i l l i o n board 17  feet of lumber annually.  ' A major change was the growth of the  small portable sawmill employing from three to eight men. minimal c a p i t a l investment, an entrepreneur a one to two m i l l i o n feet per year b a s i s .  With a  could produce lumber on The t y p i c a l operation  consisted of crude sawing equipment, a lumber truck and a small timber s a l e .  V/ith the higher lumber prices and increased demand of  the 19l40's and 1950 s scores of people flocked to the Northern ,  Interior to make t h e i r fortunes i n the lumbering industry.  In 19ll8,  17. B r i t i s h Columbia Department of Lands and Forests, "Sawmills and Planing M i l l s by Ranger D i s t r i c t , " (Victorias Forest Service, 1955), (Mimeographed).  t h i r t y - t h r e e s a w m i l l s w i t h i n a 3 0 - m i l e r a d i u s o f Q u e s n e l were r e p o r t e d ! 18 by 195k  one hundred and e i g h t y were o p e r a t i n g i n t h a t same a r e a . The  o t h e r major change f r o m the 1920's was  the development o f  the p l a n i n g m i l l and the subsequent d i v i s i o n of l a b o u r between s a w m i l l and p l a n e r .  W h i l e the l a r g e r companies i n t e g r a t e d saw and  planing  f a c i l i t i e s , few of the p o r t a b l e m i l l s were l a r g e enough t o w a r r a n t the c a p i t a l e x p e n d i t u r e ,  A number o f s p e c i a l i z e d o p e r a t i o n s  which  p l a n e d o r d r e s s e d the rough lumber produced by p o r t a b l e s a w m i l l 19 operations developed.  Many of t h e s e p l a n i n g m i l l s were-a c o n s i d e r -  a b l e s i z e , h a n d l i n g the p r o d u c t i o n of 30 o r more p o r t a b l e  sawmills.  As t i m b e r c u t t i n g moved i n t o more remote a r e a s , the bush s a w m i l l s f o l l o w e d , d i s p e r s i n g b o t h m i l l i n g and operations. t h i s spread.  small  logging  T e c h n o l o g i c a l changes i n t r a n s p o r t a t i o n methods p e r m i t t e d By 1945  a change f r o m h o r s e and  river transport to  c r a w l e r t r a c t o r s and t r u c k l o g g i n g had s t a r t e d , by 1955  i t was  20 n e a r l y complete.  The  use o f t r u c k s t o t r a n s p o r t rough lumber f r o m  the s a w m i l l s t o t h e p l a n e l i f t e d t h e a r e a l r e s t r i c t i o n of t h e 1 9 2 0 s . 3  18. Gordon R. E l l i o t , Quesnel-Commercial Centre of the G o l d Rush (Quesnels C a r i b o o O b s e r v e r L t d . , 1 9 5 6 ) , p. 185. 19. The p l a n i n g o p e r a t i o n i s the s i z e s so t h a t i t i s smooth on e i t h e r two  s u r f a c i n g of lumber to or f o u r s u r f a c e s .  Cariboo ~ specific  20. W. C. P h i l l i p s , T r a n s c r i p t , ' H e a r i n g s of the R o y a l Commission i n q u i r y i n t o F o r e s t Resources ( V i c t o r i a , . B.C. 1956) p. 72UU. Mr. P h i l l i p s was the D i s t r i c t F o r e s t e r i n P r i n c e George i n 1956.  3U There evolved a pattern of dispersed logging/sawmilling units surrounding c e n t r a l l y - l o c a t e d planing mills„ The North Central I n t e r i o r continued to be primarily a lumber producing region throughout the 19U0's and 1950's.  Western Plywood  Co. Ltd. i n Quesnel was the only veneer and plywood plant i n the area? pulp and paper m i l l s were non-existent.  U t i l i z a t i o n remained  at a low l e v e l ; a l l logs were sawed i n t o lumber regardless of species or s i z e . STRUCTURE OF THE INDUSTRY; A COMPARISON OF 1925  AND  1950  The development and expansion of the f o r e s t industry of the North Central I n t e r i o r up t o 1957  has been discussed generally i n  terms of external influences and l o c a l responses.  A d e t a i l e d ex-  amination of the structure of the industry i n 1925  and 1950  will  help to i s o l a t e the major changes which occurred over the years. The s p a t i a l manifestations of these s t r u c t u r a l changes w i l l be examined l a t e r  0  The structure of the industry refers to the type of unit found within each phase of the manufacturing process and the f u n c t i o n a l relationship existing between a l l u n i t s .  I n d u s t r i a l structure i s  more commonly used to r e f e r to the mix of industries i n a study area. The production of lumber comprises four d i s t i n c t phases; the extractive stage when logs are f e l l e d , bucked, yarded and transported to the  35 21  conversion unitj.  the sawmilling phase i n which logs are converted  into rough lumber; the f i n a l manufacturing stage, where rough lumber i s planed and finished, and l a s t l y , the distribution stage. These are diagramatically portrayed i n Figure 6.  The type of unit found i n  each phase and the linkage existing between the unit varies,  The  logging operation may be large, permanent, and may function on a long term basis or i t may be small, transitory i n nature, and may follow a "cut and run" policy,, Likewise, the sawmill may be moved from time to time as l o c a l forest resources are depleted; or i t may be a large 22  permanent operation equipped with gangsaw, edger, trimmer and re-saw. A high degree of functional integration may exist between the operations; or each unit may be completely separate and self-sustained. Between 1925 and 1950 major structural changes i n terms of units and relationships between units occurred. Examples, diagrams and descriptive models are used to isolate these major changes. Structure of the Industrys 1925.  The Eagle Lake Sawmill at Giseome,  21, Bucking refers to the removal of large limbs from the tree trunk. Yarding i s the movement of the logs by tractor or some other means to an assembly point where they can be either loaded onto trucks or moved directly into a portable sawmill, 22. A gangsaw i s a high speed saw designed to cut logs into several boards of equal thickness. An edger i s a multi-saw piece of stationary equipment that i s used to size rough lumber to varying but precise widths. A trimmer i s used to cut defects from lumber and to trim lumber into specific lengths,* A re-saw i s a piece of equipment with either a circularor band saw that is. used (a) to recover lumber from mismanufactured lumber, (b) to convert a cant (squared log) into lumber, or (c) to a l t e r the thickness and/or width of a piece of lumber,.  Figure 6  36  Simplified Flow of Lumber Manufacturing Process POSSIBLE  LINKAGES  MARKET MARKETING  F i n i s h e d or Rough L u m b e r  PHASE  t r a n s p o r t by rail  LUMBER  BROKER  F i n i s h e d or Rough Lumber transport  by truck  RAILHEAD  PLANER MILL SECONDARY PRODUCTION  Rough Lumber transport by truck  UNIT  SAW MILL Log  t r a n s p o r t by  truck,  r a i l , or horse and s l e d  LOG  ASSEMBLY EXTRACTIVE  L o g s k i d by h o r s e , a r c h truck  PHASE  or t r a c t o r  TIMBER  STAND  1*0 miles east of Prince George, i l l u s t r a t e s the t y p i c a l operation i n  23 the North Central I n t e r i o r during the 1920 s and 1930 s. c  1  I t s structure  i s o u t l i n e d i n Figure 7© The m i l l , operated by a group of American shareholders, was a large permanent operation, whose main product was low grade spruce lumber.  I n the i n i t i a l years of operation the lumber was  shipped as a rough, undressed product.  However, the maintenance o f a  large lumber yard f o r air=drying helped increase the u n i t value o f the lumber.  Marketing and d i s t r i b u t i n g was managed through sales agents  across the p r a i r i e s .  Logging operations were c a r r i e d out seasonally  with up t o lb, crews h i r e d during winter months. Logs were transported from a number of p o i n t s , rather than from a s i n g l e large logging camp. Because of the l e v e l of t r a n s p o r t a t i o n technology during the 1920's, l o g assembly operations and the Canadian National Railway were l o c a t e d i n close proximity. As i n the case of Eagle Lake Sawmills, corporate c o n t r o l of both m i l l i n g and logging operations by a s i n g l e holding company was the r u l e . In general the sawmiller logged h i s own l i m i t s .  I n c o n t r a s t , on the  Coast a considerable p o r t i o n of the logging was c a r r i e d out by independent operators who s o l d logs on an open market. The s i z e of the l o g market and the d i v e r s i t y of the grades and species r e s u l t e d i n the development of both large s c a l e sawmill operators and s p e c i a l i z e d producers.2b 23.  This d i v e r s i o n of labour was not f e a s i b l e i n the North B r i t i s h Columbia Lumberman XXXVIII, (September, 195k)  2b « Hardwick, op c i t . , p. 17©  a  s  p© 18.  Figures 7 and 8  Figure 7  INDUSTRIAL  Market  38  S T R U C T U R E . 1925  Linkages  B.  Market  Finished or rough Lumber transport by rail  Railhead Wholesaler  Railhead Wholesaler  Stationary Sawmill  Planer mill Stationary Sawmill  Log Assembly Timber Stand  Figure 8  L o g Transport  Log Assembly  by river or horse and sled  •  —  Timber Stand  I N D U S T R I A L S T R U C T U R E , 1950  Linkage  Finished or rough lumber transport by rail  Rough lumber transport by lumber truck  I Railhead | stationary Planer  1 Portable Sawmill Log 1 Portable Sawmi transport T by tractor skid or arch truck T i m b e r Stand: L o g Assembly  ~  Central region. Logging and m i l l i n g were highly complementary operations i n the Interior. The logging operation was usually carried on during the winter; the milling i n the summer. Unlike the Coastal situation, extensive waterways f o r the easy transportation of logs were not available.  The two a c t i v i t i e s remained closely t i e d , and the linkage  minimal. The seasonal flow of logs formed the only- connection between operations.  The sawmill and logging operations, i n fact, formed a  functional unit i n which the m i l l u t i l i z e d a l l the logs cut at the 25  adjacent logging "show".  Figure 7 i l l u s t r a t e s this relationship  and also includes the r a i l l i n k with the market. The introduction of a planing unit, as i n Figure 7-B, does not a l t e r the s p a t i a l structure of the industry. The marketing function was handled by company-owned sales outlets. At this stage, no lumber wholesalers or "brokers" were necessary f o r the few "export" m i l l s .  Cross linkages and complexities  of flows did not exist within the region; trading of logs and species between companies had not developed. Each milling/logging unit operated independently of other producers. Structure of the Industry;: 1950.  During the 19h0>s and the early  l950's the areal spread of lumbering a c t i v i t y and the growth of small operators were reflected i n the changing structure of the industry,  2 5 . A logging "show" i s a complete logging unit including men,' equipment, roads, buildings and storage area. There, f e l l i n g , bucking, yarding, sorting and transportation of logs to m i l l takes place. A company may f e l l trees on a number of fronts or "sides", and move a l l logs to a central assembly point.  ho Jacobson Brothers' m i l l i n Williams Lake exemplifies t y p i c a l operational characteristics  of the era.  The company began operation i n 195k as a 26  bush m i l l "skidding logs i n at one end and p u l l i n g slabs out the other." The equipment consisted of c i r c u l a r sawj the number of employees never exceeded l O j and the t o t a l c a p i t a l investment was under  $10,000.  Green  dimension lumber was trucked to planing m i l l s i n Williams Lake f o r finishing. The second stage i n the development of the company was the establishment of a semi-permanent m i l l at Horsefly, 30 miles east of Williams Lake.  Logs moved to the m i l l from 15 miles away.  lumber continued to be the end product.  In 1962,  Rough  the Jacobson Brothers  constructed t h e i r own planer at Williams Lake, supplying i t with rough lumber from the m i l l at Horsefly.  The t h i r d stage, that of complete  c e n t r a l i z a t i o n of operations was not reached u n t i l 1965 planer complex c a p i t a l i z e d at  $700,000  when a sawmill/  was constructed at Williams Lake.  Most of the operations i n the early  1950's  followed t h i s pattern.  They were either small bush m i l l s or l a r g e r capacity semi-permanent establishments-. In 1955  Capital investments  ranged from  $3000 S  to over  $300,000.^  i t was reported that about 17 per cent of the m i l l s f e l l into the  l a t t e r category, while some 600 of the t o t a l 750 active m i l l s were of the \ 2R small portable type. , The m i l l s were generally much smaller than the 26.  Statement by Mr, Harold Jacobson, personal interview, March,  27.  W. C. P h i l l i p s , Transcript, p. 7241.  28.  Ibid., p. 7241.  1966.  upper Fraser m i l l s of the previous period.  The small c a p i t a l  permitted easy entry and e x i t into the industry.  investment  Hence, many operated  f o r only a few months of the year, or i n years of high lumber p r i c e s . Logging and sawmilling operations remained s p a t i a l l y and cqrporately l i n k e d .  The 1925  pattern continued during the 1950's.  of the operations consisted of single logging/milling units.  Most  Only a  few of the l a r g e r semi-permanent m i l l s operated a number of logging "shows", The d i v i s i o n of labour occurred between the sawing of logs and the dressing of rough lumber (Figure 8).  A few planing m i l l s existed  e n t i r e l y upon purchased rough lumber, but many operated a number of small, portable m i l l s to supply t h e i r needs.  Rustad Bros, planing m i l l  i n Prince George, f o r example, had approximately rough lumber i n 1955.  12 sawmills supplying  Four of these, supplying a quarter of the rough  lumber required, were owned by the planer.  The remainder were indepen-  29  dent operators under contract.  In some cases planer operators held  the timber l i m i t s with independent sawmills acting as contractors.  On  the other hand, a number of sawmills existed that were not controlled by the planing sector. highest bidder. lumber was  These operators sold t h e i r rough lumber to the  A highly competitive and unstable open market f o r rough  c h a r a c t e r i s t i c throughout this period. 29.  M. Rustad, Transcript, p. 7U29.  The raw material movement of the that of the 1920's.  1950's was not d i s s i m i l a r to  The majority of operations skidded logs a few  hundred yards d i r e c t l y from the stump t o the m i l l . were sold or traded between companies.  Very few logs  Logging was carried out  during the winter and a l i m i t e d inventory of logs were kept on hand by the sawmills f o r summer c u t t i n g .  As a r e s u l t , the l o g flow  remained b a s i c a l l y l i k e that of the previous period. The change occurred with the establishment of the centralized planing m i l l .  A general pattern of rough lumber movement from out-  l y i n g sawmills into centrally-located planers was established (Figure 8).  I t was during these years that "planer row" in; Prince George  developed.  The 17 planing operations which comprised "planer row " 1  marshalled the bulk of the timber from the surrounding  district,  processing i t and shipping i t to markets i n the United States, the Canadian P r a i r i e s and Eastern Canada.  In 195b,  of the 500, m i l l i o n  feet of lumber produced i n the d i s t r i c t , 375 were dressed by these 30 mills.  In both Williams Lake and Quesnel a s i m i l a r pattern evolved  i n which a few planing m i l l s processed the rough lumber produced i n the area.  The degree of linkage e x i s t i n g between the i n d i v i d u a l  sawmills and planers i s impossible t o trace i n d e t a i l .  Suppliers,  unless corporately a f f i l i a t e d with the planer, changed from month t o month.  Sawmills operating one month could be closed down the next.  30.  B r i t i s h Columbia Lumberman, XXXVIII, (November,  195b)» p.  1*3 The flow of rough lumber, l i k e the l o g supply of the 1920's, tended to be seasonal.  In the spring during "break-up" and i n the  f a l l during "freeze-up" the roads i n the area around Prince George became impassable.  Most of the planer m i l l s carried a large rough  lumber inventory to assure themselves of continual operation. SPATIAL MODELS OF THE FOREST INDUSTRY! 1925 AND 1950 Descriptive models f o r each of the periods have been constructed to summarize the s p a t i a l characteristics of the i n d u s t r i a l structures outlined. and 8.  These diagrams are the s p a t i a l counterparts of Figures 7  Two models have been constructed f o r each period;  one repre-  sents the resulting pattern when a number of variables are held constant; the second i l l u s t r a t e s modifications to t h i s pattern when assumptions are relaxed and transportation systems introduced. Figure 9-A represents an i d e a l m i l l layout on a f l a t , well-drained forested area i n 1925.  A c c e s s i b i l i t y , the q u a l i t y of the timber  and demand f o r lumber are assumed to be uniform over the area.  supply The  l i m i t e d demand does> not require a l l available timber to be exploited. The r e s u l t i s a random d i s t r i b u t i o n of sawing/logging  units.  Areal  r e s t r i c t i o n of log-transportation forces the logging and sawmilling units to locate i n close proximity.  Surrounding each producing unit i s  an area of economic e x p l o i t a t i o n . Because of the l i m i t e d demand and the subsequent l a c k of competition f o r f o r e s t land, the areas of e x p l o i t a t i o n are non-space-filling.  ft  A. Spatial  kk  Figure 9  Model of the Forest Industry,  1925  ^  Logging/Sawmilling Units  *  Log  Flow  Boundary of \  ^"  B.  Introduction of  /Ox  Transportation  Log Supply Area  /  Systems  ^  River  Railway  Logging/Sawmilling Units  <  Log Flow  )  Boundary of Log Supply Area  DKM/1966  In Figure 9B, the three assumptions of equality have been relaxed and a river and railway introduced.  In addition, the river valley i s  considered to contain the denser, more continuous growth of timber. The random spacing of i n d u s t r i a l units characteristic of the previous diagram disappears and the units are shown to be oriented to the river valley and railway. The elongation of the areas of economic exploitation results from the extension of log transportation on r i v e r s . The continued low demand dictates that only the "best" locations are chosen, s p e c i f i c a l l y where the river and r a i l routes coincide.  The  transportation costs for both raw material and finished products are minimized. The theoretical spatial pattern evolved by 1950 i s described by Figure 10-A.  Again the area i s assumed to be f l a t , with a. uniform  distribution of forest stands and equal a c c e s s i b i l i t y .  The demand f o r  lumber has risen and competition for forest land exists throughout the area.  Product demand has resulted i n the need f o r planing f a c i l i t i e s .  The model represents a hexagonal arrangement of portable and semipermanent mills spaced uniformly around a central planing m i l l .  Since  log transport to the sawmills remains restricted, separate log assembly points do not develop.  The movement of rough lumber a- considerable  distance to planing f a c i l i t i e s has been introduced. Suggested flows of logs and rough lumber by the most direct routes are; indicated.  No  l i m i t i n g factors have been introduced and exploitation of the forest proceeds i n a l l directions away from the m i l l s ,  A broken line represents  Figure 10  A.Spatial Model of the  Forest Industry, 1950  o V-fVi o [V4  |  4 !  O  o V 4 o V— i  —  o  i  ° j  i  T7  i  T  j o  B. Introduction of Transportation  i  4 c  Planer  O  ^  Mill  Logging/Sawmilling Unit  w  .  Log Flow  "—  Rough Lumber Flow Boundary of  Log  Supply Area  fr-  Boundary of Area Exploited by Planer Mill  Systems River O  Planer  Mill  #) ^  Logging/Sawmilling Unit  «  Log  Flow  **—  Rough Lumber Flow  ~" ^ Boundary of Log j Supply Area N  X \ y  Theoretical Area Exploited by Planer ) Mill Bounded by this line  1 J 1—1  Actual Area Exploited by Planer Mill  J**  Railway  DKM/1966  the boundary o f t h e a r e a f r o m which rough lumber can be economically  t o the p l a n e r .  shipped  When t h i s p a t t e r n i s c o n t i n u e d ,  i t is  found t h a t s m a l l hexagons r e p r e s e n t i n g the h i n t e r l a n d s o f the p o r t a b l e m i l l s " n e s t " w i t h i n the l a r g e r hexagonal s u p p l y areas  of the p l a n e r s .  In t h e o r y , the e n t i r e f o r e s t e d areas would be e x p l o i t e d and p o r t a b l e m i l l would f a l l w i t h i n the s u p p l y a r e a o f a p l a n i n g  every mill.  F i g u r e 10-B r e p r e s e n t s m o d i f i c a t i o n s t o t h i s scheme when r i v e r and roads a r e i n t r o d u c e d .  rail,  The p l a n e r m i l l becomes c e n t r a l l y  l o c a t e d w i t h r e s p e c t t o rough lumber s u p p l i e r s , b u t on the r a i l The s a w m i l l / l o g g i n g rough lumber. little  line.  u n i t s a r e o r i e n t e d t o roads, f o r the movement of  The r e g u l a r i t y o f the l o g s u p p l y areas  river transportation.  suggests  very  The a c t u a l a r e a e x p l o i t e d b y the p l a n i n g 0  m i l l s i s i r r e g u l a r i n shape as compared t o the t h e o r e t i c a l a r e a . a c c e s s i b i l i t y and timber  s t a n d q u a l i t y determine t h e exact d i s t a n c e the  lumber can be e c o n o m i c a l l y these  two t r i b u t a r y areas  Road  transported. (of sawmill  i n d i c a t e d by the most d i r e c t  Movement of m a t e r i a l s  within  and p l a n i n g m i l l ) has been  route.  The major changes i n the s p a t i a l s t r u c t u r e of the two  periods  as p o r t r a y e d i n these models have been i n the number of o p e r a t i o n s , i n l o c a t i o n o f sawmills  and i n the i n t r o d u c t i o n o f the f i n a l m a n u f a c t u r i n g  s t a g e , the p l a n i n g m i l l .  Changes i n t r a n s p o r t a t i o n t e c h n o l o g y  have been  p e r m i s s i v e - f a c t o r s a l l o w i n g t h e s p a t i a l r e - o r g a n i z a t i o n d e s c r i b e d i n the models.  A growing c o m p l e x i t y  evident i n the 1950 e r a . a f t e r 1957  of l i n k a g e s and interdependence of u n i t s i s  The t h i r d major s t r u c t u r a l change which  i s examined i n the f o l l o w i n g  chapter.  occurred  CHAPTER I I I CHANGE IN STRUCTURE AND LOCATION IN THE FOREST INDUSTRY OF NORTH CENTRAL BRITISH COLUMBIA:  1958-1966  Since 1958, s i g n i f i c a n t changes have occurred i n the s i z e , l o c a t i o n pattern and organization of the f o r e s t industry of North Central I n t e r i o r B r i t i s h Columbia„ been:  Three major developments have  ( l ) the consolidation of the lumber producers i n t o l a r g e -  scale manufacturing units; (2) the introduction of a pulp and paper economy; and (3) the subsequent a r e a l concentration units.  of conversion  Figure 2, Log Conversion Units i n North Central B r i t i s h  Columbia, 196h, i l l u s t r a t e s these developments.  FUNCTIONAL INTEGRATION AND AREAL CONCENTRATION OF CONVERSION UNITS The trend toward consolidation of the lumber industry into a few large-scale units was evident by the l a t e 1950's.- While the annual l o g scale continued to grow at a rapid rate (Figure 3)<> the number of active sawmills i n the d i s t r i c t decreased from a peak of 730 operations i n 1955 to h$0 i n I96I4 (Figure 5 ) .  The consolidation  which has taken place since 1925 i s graphically i l l u s t r a t e d i n Figure  11. In 1925 ninety per cent of the lumber i n the area was cut  by 65 per cent of the m i l l s ; i n 19li9 the same proportion of lumber output was produced by h8 per cent and by 196ii the bulk of the  50 production was controlled by  only 29 per cent of the m i l l s .  growth of large-scale operations  The  at the expense of the small portable  m i l l s has been brought about by (a) stable lumber prices coupled with r i s i n g labour costs and, (b) the o f f i c i a l guarantee of long-term timber supplies. Lumber prices held constant;  wages sky-rocketed.  To hold costs i n l i n e , the entrepreneurs were forced to reduce the r e l a t i v e importance of the labour input.  Increased labour productivity  could only be accomplished through sizable investment i n larger, more automated m i l l s .  Government l e g i s l a t i o n establishing annual timber  quotas and a closed system of bidding provided the guaranteed supply necessary f o r this long-term financing.  timber  By 196k» s i x t y sawmills  were reported cutting over f i v e m i l l i o n feet of lumber annually as compared to 22 m i l l s i n that category i n 1956o^" The small portable m i l l with low output and low wood recovery had become anarchronistic. The introduction of a pulp industry to the region i s a second major change.  World demand f o r pulp and paper products, coupled with  maximization of production i n other forest areas, prompted the development of a pulp economy i n I n t e r i o r B r i t i s h Columbia. need f o r a long-term guarantee of pulp changes i n governmental p o l i c y .  wood  The pulp m i l l s  has been r e f l e c t e d i n  To accommodate a pulp and paper  1. B r i t i s h Columbia Department of Lands and Forests, Annual Report(s) of the Forest Service ( V i c t o r i a , B.C.;; Queen's P r i n t e r ,  1957 and 1965).  8  51 industry, and to achieve the maximum l o g u t i l i z a t i o n possible i n the I n t e r i o r , the government has introduced a t h i r d form of tenure, the  2 Pulpwood Harvesting Area  0  As a r e s u l t , pulp companies can be 3  guaranteed long-term supplies of pulp logs.  S i x companies submitted  construction proposals and have been granted the right to harvest logs i n designated areas i n North Central B r i t i s h Columbia.  Once again  exogenous forces created demands and influenced the i n d u s t r i a l organization i n the North Central Interior,, The c a p i t a l involved i n the pulp expansion comes primarily from American and European sources.  Table I indicates the planned capacity  of the m i l l s , the projected completion date, the estimated c a p i t a l involved, and the f i n a n c i a l backing of each proposed enterprise. Cariboo Pulp and Paper L t d . which i s a f f i l i a t e d with Weldwood of Canada L t d . i n Quesnel i s the only company previously involved i n the forest industry of the region.  Obviously, the established sawmill  operators had l i t t l e direct influence on the introduction of the pulp economy.  A combination of world demand f o r pulp,- the maximization of  production i n other forest areas, and changes i n p r o v i n c i a l management p o l i c i e s have encouraged the establishment of these m i l l s .  2. A second form of tenure, the 21-year Timber Sale Harvesting Licence, has been devised to cover areas where there are no established logging operations. This tenure now covers the F i n l a y Public Sustained Y i e l d Unit i n the Rocky Mountain Trench area. The Pulpwood Harvesting Licence d i f f e r s from the Pulpwood Harvesting Area i n that the licencee has the right to harvest a l l timber down to a 7.1" diameter as opposed to just pulpwood species. 3» At the same time, a l l saw logs of these areas are reserved f o r the established sawmills.  Table Is  Location of Plant  Company-  1.  2.  3.  U.  5.  6.  Pulp and Paper M i l l s Proposed f o r the North Central I n t e r i o r  Prince George Pulp & Paper Co. L t d .  Prince George  Estimated Investment ($ m i l l i o n s )  $8U  Annual Capacity (t ons)  260,000  Completion Date  July,  1966  Intercontinental Pulp Ltd.  Prince George  $65  210,00  1968  Northwood Pulp Ltd.  Prince George  $56  210,000  1966  Bulkley V a l l e y Pulp & Timber Co.  Houston  $75  3^5,000  Cariboo Pulp & Paper L t d .  Quesnel  $60  260,000  Mackenzie  $80  260,000  Alexandra Forest Industries L t d .  Sources  1971  F i n a n c i a l Backing  Joint enterprise of Canadian Forest Products Co. L t d . & Reed Paper of England J o i n t l y financed by Prince George Pulp & Paper Co. L t d . & Feldmuhle A.G. of Germany Financed by Noranda Mines & the Mead Corp. of Dayton, Ohio Bowater Paper Corp. and Bathurst Power & Paper Co. of Montreal Financed by United States Plywood and Price Bros.  1968  B r i t i s h Columbia Forest Products L t d . , Scott Paper Co., the Mead Corp. and Argus Corp.  Bureau of Economics & S t a t i s t i c s , V i c t o r i a , B.C. l i s t i n g compiled Sept. 1, 1965o  vn ro  53 The introduction of a pulp economy has had far-reaching effects on a l l phases of the forest industry.  Three s i g n i f i c a n t changes from  the previous period are evident, of which product d i v e r s i f i c a t i o n i s the most obvious.  The region i s no longer t o t a l l y dependent upon the  export of lumber.  Secondly, the pattern of log u t i l i z a t i o n i s changing.  In the l ° 5 0 ' s , nearly a l l trees cut were sawn i n t o lumber.  Now  small  diameter logs are directed to the manufacture of pulp; l a r g e r logs to sawmills; and peeler grades^ to plywood operations. what was  previously waste i n logging, sawmilling and plywood operations  has become merchantable as pulpwood chips. can be  T h i r d l y , much of  Maximum log u t i l i z a t i o n  achieved. These changes are having important ramifications on both the  structure and spatial'pattern of the industry.  There are s i g n i f i c a n t  movements toward integration of operations and a r e a l concentration of conversion u n i t s .  The pulp m i l l s are extending the scope of t h e i r  operations to both the logging and sawmilling phases of the industry. In the lumbering sector, integration of logging, sawing and planing operations i s common.  P u l l e r u t i l i z a t i o n has greatly reduced the waste  proportion of each l o g and enhanced i t s t r a n s p o r t a b i l i t y .  Consequently,  i t i s economically f e a s i b l e to transport logs a considerable distance to sawmill/planer  complexes, rather than sawing the logs i n i t i a l l y i n  I4. In the I n t e r i o r , peeler grade logs r e f e r to logs with a diameter (inside the bark) over 12 inches.  d i s p e r s e d sawmills planers. the  rail  and  Conversion line.  The  are d i s a p p e a r i n g !  t r a n s p o r t i n g rough lumber t o c e n t r a l i z e d  u n i t s are l o c a t i n g a t v a r i o u s p o i n t s small o u t l y i n g sawmills,  from these  operations, pulp m i l l s  expanding.  have been i n t e g r a t e d o r plywood p l a n t s .  changes are the i n t e g r a t e d c o n v e r s i o n  George, Q u e s n e l , and W i l l i a m s  1950's,  t y p i c a l o f the  the l a r g e - s c a l e , c e n t r a l i z e d p l a n t s are  U n i t s coming i n t o p r o d u c t i o n s i n c e 1956 planing/sawing  along  Lake ( F i g u r e 2 ) .  Emerging  c e n t r e s of P r i n c e The  lumber  conversion  c e n t r e s of F o r t S t . James, Vanderhoof, F r a s e r Lake, Smithers  and  Chetwynd assume secondary importance.  STRUCTURE OF THE  The  most important  changes i n the  i n d u s t r y have taken p l a c e s i n c e  I960.  s t r u c t u r e of' the  c o r p o r a t e , has  changes.  Integration,  d i r e c t l y a f f e c t e d the type  u n i t and the l i n k a g e s e x i s t i n g between the u n i t s . the lumber m a n u f a c t u r i n g s e c t o r and  forest  I n t e g r a t i o n between the  v a r i o u s phases has been a key f a c t o r t o these b o t h f u n c t i o n a l and  1966  INDUSTRYt  of  Examples w i t h i n  the f o r e s t i n d u s t r y as a whole  w i l l be examined t o describe t h e changes t h a t have t a k e n p l a c e . The  F o r t S t . John Lumber Company L t d . o f  Chetwyn^illustrates  the p a t t e r n f o l l o w e d by many o f the s u c c e s s f u l lumbering The  company, formed i n 19U3* has  an o p e r a t i o n p r o d u c i n g  operations.  grown f r o m a s m a l l bush m i l l i n t o  60 m i l l i o n f e e t of lumber a n n u a l l y  and  i n d i r e c t l y employing 330 people.'' During the 1950's a large capacity planing m i l l at Chetwynd provided the nucleus of operations.  Bush  mills scattered throughout the Peace River area supplied the m i l l with rough lumber. Timber holdings were controlled by Fort St. John Lumber Co. Ltd.,  but a large portion of the i n i t i a l sawing was  contracted to independent operators. In 1961+ Canadian Forest Products Ltd. acquired the m i l l and subsequently closed the bush mills and centralized a l l sawing f a c i l i t i e s at the planing m i l l .  Over two m i l l i o n dollars has been spent i n  modernizing and diversifying production units.  High speed automatic  equipment has been i n s t a l l e d throughout. Logs are weight-scaled and 7 stored i n a large dry-pond area;; barking and chipping f a c i l i t i e s have begun to manufacture pulpwood chips; a new "chip-n-saw" machine 8  now handles a l l small l o g s  0  Logging i s carried out on a contract  5. "Fort St. John Lumbers Amazing Growth of a Bush M i l l , " The Truck Logger, XXII, (January 1966), pp. 80-83.6.. Weight scaling i s a new time-saving method used to measure the volume of wood i n any one log. By this method the average scale of each truck-load i s determined by i t s weight. 7. A dry-pond i s the area i n which logs are stored and sortedo In early years most logs had been stored i n lakes, i n a mill-pond Most storage now takes place on dry land i n the area adjacent to the mill. 0  8o The "chip»n-saw" i s a new smallwood machine which w i l l mass-produce, lumber and pulpwood chips simultaneously from logs under lU inches i n diameter.  56 b a s i s w i t h a l l l o g s d e l i v e r e d by t r u c k to the Chetwynd complex. lumber output company  9  i s s o l d through the s a l e s department of the  The  parent  and pulpwood c h i p s are d e l i v e r e d t o t h e a f f i l i a t e d  pulp  10 m i l l i n P r i n c e George. and  P r o d u c t i v i t y per employee has  increased  economic l o g u t i l i z a t i o n has been i n t r o d u c e d s i n c e the  i z a t i o n and i n t e g r a t i o n o f the The  company.  path of development t a k e n by F o r t S t , John Lumber Company  L t d . i s common i n the North C e n t r a l I n t e r i o r . between the e x t r a c t i v e s i t e and r e a l i z e d from the b e g i n n i n g .  conversion  I t i s between the e x t r a c t i v e and  disappeared.  need f o r i n t e g r a t i o n  p l a n t appears to have been  l o g f l o w by p u r c h a s i n g  operations  timber s a l e s .  m a r k e t i n g s t a g e s , however, t h a t  s i g n i f i c a n t changes a r e o c c u r r i n g . and  The  Most s a w m i l l i n g and/or p l a n i n g  ensured themselves,, o f a c o n t i n u e d  sawmills  central-  The  d i v i s i o n of l a b o u r between  p l a n e r s which e x i s t e d i n the p r e v i o u s J o i n t ownership of sawing and  p e r i o d has  already  p l a n i n g f a c i l i t i e s by a  s i n g l e company i s the r u l e , ^  Secondly, s p e c i a l i z a t i o n of production 12 13 i n terms o f e i t h e r l o n g l e n g t h s o r studs i s t a k i n g p l a c e . Both  9. Lumber i s s o l d t h r o u g h Eburne S a w m i l l s , F o r e s t Products L t d . 10. Canadian F o r e s t Products L t d . has P u l p and Paper L t d . i n P r i n c e George.  D i v i s i o n of Canadian  an i n t e r e s t i n P r i n c e George :  11. One m i l l i n Quesnel and two i n P r i n c e George s t i l l p r i m a r i l y by custom p l a n i n g f o r o t h e r lumber companies,  exist  12. Long l e n g t h s r e f e r t o lumber which i s o v e r 20 f e e t i n l e n g t h . A m i l l s p e c i a l i z i n g i n l o n g l e n g t h s u s u a l l y does not handle s h o r t l o g s o f any t y p e . 13. Studs r e f e r to lumber 2 i n c h e s by h i n c h e s and i z e d l e n g t h s , u s u a l l y between 7-1/2 and 8-1/2 f e e t .  cut t o  special-  57 m a n u f a c t u r i n g processes may a l t e r n a t i v e l y , i n two grated.  be found i n the l a r g e o p e r a t i o n s ,  or  s m a l l e r m i l l s which are f u n c t i o n a l l y i n t e ~  Thirdly, logging  i s being  contracted  t o independent  and  a d i v i s i o n o f l a b o u r between s a w m i l l e r s  And  f i n a l l y , c o r p o r a t e l y a f f i l i a t e d s a l e s o u t l e t s are t a k i n g o v e r the  marketing f u n c t i o n performed by t h e  and l o g g e r s  is  operators  evident.  independent w h o l e s a l e r s i n the  1950's. Other major c o r p o r a t e r e s u l t from the e x t e n s i o n plywood s e c t o r s .  The  changes which have a f f e c t e d the  industry.:  o f p u l p companies i n t o the lumber and  companies are s e e k i n g  h o r i z o n t a l l y as w e l l as v e r t i c a l l y .  -  t o i n t e g r a t e operations^ -  B e s i d e s c o n t r o l l i n g logging,?  p u l p manufacture, and marketing phases, the companies w i s h to e n t e r  the  o t h e r wood-manufacturing p r o c e s s e s .  this  trend:  Three f a c t o r s are prompting  (a) the need f o r f u l l e r u t i l i z a t i o n o f each l o g , (b)  the  r e a l i z a t i o n of economies of f r e e l o g exchange among c o r p o r a t e l y l i n k e d m a n u f a c t u r i n g u n i t s , and  ( c ) the need f o r c o n t r o l over t h a t p a r t  of  1U the pulpwood c h i p s u p p l y The  which comes from plywood and  degree of i n t e g r a t i o n and  company p o l i c y .  Differences  o f Canadian F o r e s t  s a w m i l l waste.  the f o r m i t w i l l take v a r i e s w i t h  can be seen i n the i n t e g r a t i o n p r o c e s s e s  Products L t d .  and Northwood Pulp L t d .  Canadian  F o r e s t P r o d u c t s L t d . , the parent company o f I n t e r c o n t i n e n t a l P u l p L t d . and  P r i n c e George P u l p and Paper L t d . (see T a b l e I ) , has  e s t a b l i s h e d i t s timber p o s i t i o n i n the Peace R i v e r and areas.  Statement by Mr.  R.  Jewisson, personal  recently  S t u a r t Lake  F o r t S t . John Lumber Company L t d . i n Chetwynd and  ill.  Co.  Riverbank  i n t e r v i e w , March,  1966.  58 Sawmill L t d . i n Fort St. James have been acquired. Harvesting Area #1 was company was  When Pulpwood  secured by Canadian Forest Products Ltd., the  r e s t r i c t e d from entering the lumber industry i n the  immediate v i c i n i t y of Prince George."'"'' Consequently, the pattern evolving i s one of a r e a l l y dispersed production units c o n t r o l l e d by subsidiary, firms. In order to b u i l d up t h e i r timber p o s i t i o n , Northwood Pulp:.Ltd, i s also acquiring established sawmill operations. L t d . was formed i n 1961 "...to acquire sawmills  Northwood M i l l s  and related timber  16 quota i n the i n t e r i o r of B r i t i s h Columbia."  In that year, Upper  Fraser and S i n c l a i r Spruce Sawmills were purchased. the large Eagle Lake Sawmill at Giscome was  acquired.  In May  of  1966  The m i l l s w i l l  eventually be sold to Northwood Pulp L t d . f o r co-ordination and  17 consolidation.  The company's long-range plan c a l l s f o r the con-  s t r u c t i o n of a large capacity sawmill and plywood plant adjacent the pulp m i l l .  to  Unlike the Canadian Forest Products L t d . i n t e r e s t s ,  Northwood Pulp L t d . w i l l eventually d i r e c t a l l logs to an integrated complex i n Prince. George. 15. As a safeguard f o r the established sawmills i n the area i t was .agreed that Prince George Pulp and Paper L t d . would not enter the sawlog operating business within i t s harvesting area. "Pulpwood Harvesting Area No. 1 Agreement," between the Minister of Lands, Forests and Water Resources and Prince George Pulp & Paper Ltd, (November 22, 1962), p,, 5. r  16. Mr. Adam Zimmerman, Proceedings of Public Hearings "In the Matter of the Proposal Made by Northwood M i l l s L t d . f o r a Pulpwood Harvesting Area to Include the following Sustained Y i e l d Units i n the v i c i n i t y of Prince George, namely (Prince George, B.C., May 28, 196It), p. 17.  I b i d . , p.  13.  12..  59 In of  o t h e r areas s i m i l a r t r e n d s toward t h e complete i n t e g r a t i o n  f o r e s t r y " o p e r a t i o n s are e v i d e n t .  The  p r o j e c t of Alexandra F o r e s t  I n d u s t r i e s L t d , a t Mackenzie i n c l u d e s the immediate c o n s t r u c t i o n o f pulp  s  plywood and lumber m a n u f a c t u r i n g  facilities.  The l a c k o f p r e -  e s t a b l i s h e d s a w m i l l i n g o p e r a t i o n s i n the a r e a committed t h e company t o the c o n s t r u c t i o n of a l l t h r e e phases of the i n d u s t r y . I n t e g r a t i o n does not n e c e s s a r i l y e n t a i l j o i n t ownership, f u n c t i o n a l r e l a t i o n s h i p whereby a g i v e n product of one o p e r a t i o n i s d i r e c t e d t o another can a l s o be gration. of  w i t h the p u l p m i l l s . integration- i s s t i l l  r e f e r r e d t o as  s a w m i l l s who  intecomposed  m a i n t a i n pulpwood c h i p c o n t r a c t s  Co-operative i n t e g r a t i o n r a t h e r than  corporate  p r e s e n t t o a c o n s i d e r a b l e degree.  I n t e g r a t i o n at the c o r p o r a t e l e v e l has brought c i r c u l a t i o n system w i t h i n t h e i n d u s t r y .  F i g u r e 12  about a complex  i l l u s t r a t e s the-  p r o d u c i n g u n i t s and the l i n k a g e e x i s t i n g between them. evidents  independent  I n the North C e n t r a l I n t e r i o r the i n d u s t r y i s s t i l l  a number.-of independent  A  Two  flows  are  the raw m a t e r i a l f l o w from the l o g g i n g o p e r a t i o n s t o the-  c o n v e r s i o n p l a n t s and the waste m a t e r i a l f l o w from plywood and o p e r a t i o n s t o the p u l p m i l l s .  An examination  sawmill  of t h e f a c i l i t i e s f o r  h a n d l i n g the flows and the r o u t e s taken by the t r a n s p o r t a t i o n of m a t e r i a l s follows,.. The Weldwood o p e r a t i o n i n Quesnel w i l l s e r v e as example of the changing  raw m a t e r i a l f l o w .  The waste-product  flow  an will  be i l l u s t r a t e d by the pulpwood c h i p f l o w s t o both Northwood P u l p L t d . and P r i n c e George P u l p and Paper Co, L t d ,  60  Figure 12  INDUSTRIAL  STRUCTURE, 1966  Linkages  I  —r~  MARKETING  Market  I  PHASE  Sales Outlet or Broker Dressed lumber transport by rail  Railhead SECONDARY  Pulpwood chip flow by rail or van  Plywood  Pulp and  PRODUCTION  Mill  Paper Mill  UNIT  Sorted logs transported by fork lift truck  .—I  J  Log flow by truck  Timber Stand  Log  Assembly  EXTRACTIVE PHASE  Raw Material Flow. Ltd.  The Cariboo D i v i s i o n of Weldwood of Canada  located i n Quesnel consists of centralized conversion f a c i l i t i e s  supplied by a number of outlying logging shows.  Weldwood holds quotas  i n seven sustained y i e l d units and one forest management licence, plus cutting privileges i n the S p e c i a l Sales Area. Pulp and Paper Ltd., an a f f i l i a t e d company, was Harvesting Area #5.  Figure 13  In addition, Cariboo awarded Pulpwood  i l l u s t r a t e s the l o g flow which supplies  t h e i r sawmill, planer, stud m i l l and plywood complex. transports logs by r i v e r , r a i l and truck.  The company  T h i r t y - f i v e per cent of  the t o t a l raw material supply comes from the Forest Management Licence and Quesnel Lake Sustained Y i e l d Unit.  These logs are driven 1J5  65 miles down the Quesnel and Fraser Rivers.  and  A few peeler logs '  come by r a i l from the Lac La Hache area to the south, but most of the remaining log supply i s trucked to the conversion units and then directed t o - i t s most economic use. This pattern, whereby logs are brought from a great many sources, over a v a r i e t y of transportation media to a c e n t r a l i z e d operation i s c h a r a c t e r i s t i c of the  l°60s„ 3  It i s evident i n numerous  sawmilling towns on a f u n c t i o n a l l y co-operative b a s i s .  Located i n  Williams Lake are stud m i l l s , a veneer plant, and several dimension sawmills, one of which s p e c i a l i z e s i n long lengths.  The l o g supply  area f o r the mills- surrounds the town, extending a hundred miles i n  18. March,  Statement by Mr. William S t e r l i n g , personal interview 1966.  Figure 13  Annuo I Log Flow to Weld wood of Canada Operations in Quesnel  Cottonwood SY.U.  = Source of Log Flow  Log, Flow, l/4 equals N  1,000,000 Cubic F t t t  fRed Rock [stoner  West lake SY.U.  Woodpecker oHbton  Forest Management License No. 5 M  Sourct "A Counter Proposal For the Establishment of o Pulp Mil in th* Vocinity of Quesnel" Coriboo Pulp and Paper Co. Ltd (mimeographed), December, 1964  Big Volley S.YU.  Strathrtover  Cottonwood SY.U.  some directionso  Considerable log trading between companies occurs  Peeler grade logs are directed to the M e r r i l l Gardner Ltd, veneer plantj large dimension sawlogs to Jacobson Brothers Forest  Products  Ltd,j and small dimension logs to the Pinette & T e r r i e n stud m i l l . In the future, pulpwood logs may be harvested and chipped by the m i l l s f o r the pulp companies,, The raw material flow of the pulp m i l l s forms a s i m i l a r type of pattern,; Pulpwood logs come to the m i l l s by truck and r a i l from a number of logging operations i n the companies' Pulpwood Harvesting Areas,  Again, a c e n t r a l i z e d conversion plant served by a large  supply area'-is c h a r a c t e r i s t i c . Three methods of l o g transport are used i n the North Central Interior:  r a i l , truck and r i v e r .  Because timber stands currently-  being exploited are not located proximate to railway routes most of the logs are transported by truck.  Less than a m i l l i o n f e e t of  20 timber was moved by the P a c i f i c Great Eastern Railway i n 1°6$<, Much of t h i s movement was temporary u n t i l new  conversion f a c i l i t i e s  are completed or u n t i l another form of transportation i s a v a i l a b l e . The r a i l extension north of Prince George to Fort S t , James w i l l carry the f i r s t major r a i l movement of logs i n the area,  March,  ;  Pulpwood  19, Statement by Mr, Harold Jacobson, personal interview, 1966.  20. Statement by a P a c i f i c Great Eastern employee, personal interview, July, 1966.  6U w i l l be transported to Prince George Pulp and Paper L t d , and Intercontinental Pulp Co, L t d . from Harvesting Areas #1 and #1 at a cost 21 of 7/^/100 l b s . 22 Some of the log movement i s by r i v e r d r i v i n g .  Logs are  driven i n the Quesnel and Fraser Rivers south of Prince George; i n the Upper Fraser River west of Prince George; and between Trembleur and Stuart Lakes v i a the Tachie River.  Logs are also towed eastward  across Francois Lake and driven annually down the Stellako River to Fraser Lake,  Where a choice of transportation methods exists a  comparison of costs i s made, 2' In a-, comparative cost study of r i v e r d r i v i n g and truck hauling, ' i t was found that l o g movement by r i v e r i s cheaper.  Because extra  savings andrexpenditures accrue to both methods i r r e s p e c t i v e of the actual transportation of the l o g s , the t o t a l logging operation was examined.  Common l o g costs were f e l l i n g , limbing, yarding and  skidding, bush deckings loading into the lake, s c a l i n g , booming and•••••• towing, slash disposal, road construction (bush roads) and admini21. Statement by a P a c i f i c Great Eastern employee, personal interview, J u l y , 1966. 22. Trees are f e l l and stored i n the woods u n t i l spring when the rivers are at .their highest. The logs are then dumped into the r i v e r and moved by the current downstream. At a designated point, the logs are caught and l i f t e d out of the r i v e r . 23. Gormely Forest Service Ltd., "Logging F e a s i b i l i t y Study of the Fraser Lake-Francois Lake Area f o r the International P a c i f i c Salmon Fisheries Commission," (Vancouver, B.C., March, 1966) 0  r  6$ stration.  These amounted to a basic $16.50 per hundred cubic f e e t (Ccf)  f o r each transportation system.  Additional logging costs f o r r i v e r  driving of $1.70/Ccf r e s u l t from bucking, s c a l i n g , booming and towing. On the other hand, expenses f o r truck loading and unloading and extra c a p i t a l investments amount to $2.90/Ccf f o r transporting logs by truck.  Therefore, a saving of $1.20  i s r e a l i z e d by the r i v e r d r i v i n g  system, i r r e s p e c t i v e of the cost of transportation. made i n the movement of logs by water.  Two  Gains are also  hypothetical examples based  on these cost figures have been derived: A.  Ten-mile l o g movement Saving i n logging costs of r i v e r d r i v i n g system ........  $1.20  Ccf  Transportation cost d i f f e r e n t i a l . . . . . . o . a o . . . ° . . » . . » o . o Cost of truck haul $2.50/Ccf  $1.25  Ccf  Cost of r i v e r drive $1.25/Ccf T o t a l savings of r i v e r d r i v i n g system B.  $2 li5/Ccf 0  F i f t y - m i l e l o g movement Savings i n logging costs of r i v e r d r i v i n g system .<,<><,„,„ Transportation cost difJTsr©ni>icil •oooooe-ooooee-oooooeoooo Cost of truck haul $12.50/Ccf Cost of r i v e r drive 6.25/Ccf  $1.20 Ccf tf>6o2J? Cci*  T o t a l Savings of r i v e r d r i v i n g system ..................  $7.b5/Ccf  The cost of "river driving i s approximately half that of truck hauling.  As the distance the logs are moved increases, transportation  by r i v e r becomes even more a t t r a c t i v e .  Therefore, the hinterland of  the conversion unit can be extended considerably wherever l o g trans-  portation by water i s f e a s i b l e .  On the other hand, with r i v e r  d r i v i n g , large storage areas are needed and the l o g flow to the m i l l becomes much more e r r a t i c . Log storage f a c i l i t i e s i n the North Central I n t e r i o r are located i n lakes, rivers or m i l l yards.  To the north and west of Prince  George and i n the Quesnel and Williams Lake areas, the roads become impassible f o r two months i n the spring during "break-up" and i n the f a l l just before "freeze-up,'.'  For a t h i r d of each year, a large  proportion of the l o g flow to the m i l l s i s interrupted.  Consequently,  a considerable inventory of l o g s .must be kept on hand by the m i l l s . The majority of operators store t h e i r logs i n the area immediately adjacent to the m i l l , the dry pond.  Large areas of l o g storage are  found i n conjunction with sawmills north of Quesnel i n the Two  Mile  F l a t area and i n the P a c i f i c Great Eastern I n d u s t r i a l S i t e i n Prince George,  Both Prince George Pulp and Paper Co. Ltd, and Northwood  Pulp L t d . have storage areas adjacent to t h e i r m i l l s i t e s .  However,  no major l o g storage area comparable to the coastal booming grounds i n the Fraser River exists i n the area.  2lic E.M. Hoover, The Location of Economic A c t i v i t y (New Yorks McGraw-Hill, I9I48). Hoover argues that f o r short distances truck movement i s cheapest, f o r median distances r a i l has an advantage and f o r long distances water transport i s the most economical. Also, transportation rates per mile decrease with increasing distances. See also M. Fulton and L.C. Hoch. "Transportation Factors A f f e c t i n g Locational Decisions," Economic Geography, XXXV, (January 1959) 9  pp. 51-59.  67  S o r t i n g and s c a l i n g the logs pass.  are the i n i t i a l processes through which  Both a c t i v i t i e s are c o s t l y and time consuming.  With  the increased volume of logs being handled by the m i l l s more e f f i c i e n t methods are being introduced.  One of the developments which appears  most promising i s that of b u l k s c a l i n g by weight.  By conventional  methods, the.load was dumped, spread, and each l o g scaled i n d i v i d u a l l y . Weight s c a l i n g involves "the recording of each truckload of timber,. s u b t r a c t i o n from t h i s of the unloaded t r u c k weight and the a p p l i c a t i o n of a formula! i n v o l v i n g weight and scale i n cubic f e e t of a selected; 26  sample o f the timber being scaled,"  This type of s c a l i n g reduces  both the labour and time i n v o l v e d , as w e l l as the area required f o r spreading the l o g s . Pulpwood Chip Flows, Since 1965 a growing number of sawmills have s t a r t e d manufacturing pulpwood c h i p s .  Both Prince George P u l p  and Paper Co. L t d . and Northwood Pulp L t d . began s t o c k p i l i n g chips two years ago.  For the manufacture of pulpwood c h i p s , sawmills must 27  i n s t a l l two a d d i t i o n a l pieces of equipment, a "barker"  and "chipper."  25. .Scaling r e f e r s t o the measurement of the volume and q u a l i t y of wood i n each l o g . 26. "Bulk S c a l i n g Logs by Weight," B r i t i s h Columbia Lumerman, L (February 1966), p. 20. 27o A l l pulpwood chips are manufactured from bark-free waste. Bark cannot be used i n the manufacture of sulphate pulp.  ;  68 The mechanical barker  28  i s a device whereby the l o g i s passed  a rotating head and the bark removed by a shearing a c t i o n .  through  In the  chipping machine, wood i s brought into contact with blades attached t o a disc spinning at high speeds.  Over 30 barking/chipping units have  been i n s t a l l e d i n m i l l s since l°65j most i n m i l l s cutting over 1$ m i l l i o n feet of lumber annually.  For the m i l l s i n s t a l l i n g t h i s equip-  ment, the sale of pulpwood chips i s a new source of income.  With the  current prices, however, many operators consider the manufacture of  29 chips t o be a marginal venture,  ?  The development of a pulpwood chip flow i n the region i s a direct result of the pulp companies seeking a cheap raw material source, Mr, J.E, L i e r s c h of Prince George Pulp and Paper Co, Ltd, stated: The only p o s s i b i l i t y of overcoming the inherent d i s advantages of an i n t e r i o r l o c a t i o n compared to a tide-water l o c a t i o n (reference to pulp m i l l ) i n the overseas markets i s to obtain our wood (pulp logs and pulpwood chips) at a cost per-ton-of-pulp lower than the cost i n Coast operations. Smallwood logging i n the area i s s t i l l i n the experimental stages and the exact cost i s yet unknown. On the other hand, pulpwood chip prices are known and have been set at approximately $10,00 a u n i t .  28, On the Coast hydraulic barkers are used. The hydraulic barker i s a device by which logs are stripped of bark by coming i n contact with, a high-pressure water j e t , 29,  Statement by Mr. M. Rustad, personal interview, March, 1966,  30, J.E, Liersoh, Proceedings of Public Hearings i n "The Matter of the Proposal Made by Canadian Forest Products L t d , f o r a Pulpwood Harvesting Area„.„in the V i c i n i t y of Prince George," (Prince George,  B.C., November 22, 1962), p. 18.  Consequently, the pulp m i l l s are using chipped wood waste f o r part of t h e i r raw material supply. varies from m i l l to m i l l .  The per cent of purchased chips used  Half of the raw material supply of North-  wood Pulp L t d . comes from sawmill waste: none of Intercontinental Pulp Co. Ltd.'s supply comes from this source. •The 1965-66 pulpwood chip flow i n the North Central I n t e r i o r i s i l l u s t r a t e d i n Figures II4 and 15.  Approximately half a m i l l i o n  units of chips moved to the two pulp m i l l s i n Prince George.  It i s  expected that chip production i n the area w i l l increase by at l e a s t 175j000 units within the next few years as more sawmills i n s t a l l  31 chipping and barking f a c i l i t i e s .  On both maps the flows from the  area south of Prince George dominate.  There the s i m i l a r i t y ends,,  Northwood Pulp L t d . receives about 30 per cent of i t s supply from the mills i n the upper Fraser V a l l e y .  In contrast, the largest  single, chip s u p p l i e r of Prince George Pulp and Paper L t d . i s F t . S t . John Lumber Co. L t d . in- Chetwynd. - The two flows shown i n Figures 15 and 16 are by. no means stabilized.  Both pulp companies w i l l lose a number o f t h e i r chip  suppliers when the pulp m i l l s i n Quesnel and Houston begin operation. Pulpwood Harvesting Area #k gives Bulkley V a l l e y Pulp and Timber Co. L t d . access to timber i n the Babine and Francois Lake areas.  The  sawmills i n Smithers, Telkwa, Topley, Burns Lake and Endako who 31o  1966.  Statement by Mr. M. Rustad, personal interview, March  Annual Pulpwood Chip Flow to Prince George Pulp and Paper CO. Ltd. (March, I966) Pulpwood Harvesting Area  I  (awarded to P G . P a n d P Co-Ltd.)  Pulpwood Harvesting Area Pulp Co. Ltd)  Flow  •A  •c<\  Source-  of  Chips -  1/8" equals  7 (awarded to Intercontinental  10,000 B.D.U.'s  Compiled from B.C.Forest Service Mimeographed Lists of Annual Lumber Production of Mills. Conversion Factor of .5 used to estimate Chip Production  20  l _  20  40  —I—  GO  80  100  _1_  120  miles  a l s o draw t h e i r raw materials from t h i s area can be expected t o d i r e c t t h e i r chip production to the Houston m i l l . savings i n f r e i g h t charges would be r e a l i z e d ,  Considerable  A similar re-  o r i e n t a t i o n w i l l take place south of Prince George.  Milling  operations  i n Williams Lake, Quesnel, 100 M i l e House, Lone Bute and Lac Hache w i l l probably market t h e i r pulpwood chips i n Quesnel.  A change from  the P a c i f i c Great Eastern Railway's f l a t rate of $ 2 , 1 0 / u n i t to one based on distance would f a c i l i t a t e t h i s r e - o r i e n t a t i o n . The f u t u r e pattern of pulp wood chip movement can be projected as a s e r i e s of d i r e c t e d flows focussed upon f o u r major centres.  Prince George, by  v i r t u r e of the number o f pulp m i l l s located there, w i l l dominate, Quesnel, Houston and p o s s i b l y Mackenzie w i l l form secondary centres. Almost a l l the pulpwood chips i n the region are transported t o  32 Prince George i n s p e c i a l l y constructed chip cars.  The Canadian  National Railway rates f o r chip movement are based on distance. Fort F r a s e r ,  80  miles west of Prince George,  charged? from Houston,  112  $2,62  From  per u n i t i s  miles f a r t h e r west, the rate i s  $6,56  per  unit (see Table I I ) . I n c o n t r a s t , the P a c i f i c Great Eastern Railway has set a f l a t rate o f $2,10 per u n i t f o r a l l shipments to Prince George, The rate f o r chips moving to the Coast v i a the P a c i f i c Great Eastern has r e c e n t l y r i s e n from 32,  $3«$0  t o $ 1 0 , 0 0 per u n i t .  33  Statement by Mr, D, Moore, personal i n t e r v i e w , March, 1966,  33. Each car c a r r i e s from 28 t o 32 u n i t s of pulpwood c h i p s . One bone-dry unit contains 200 cubic f e e t of chips.  73 TABLE l i s Pulp Wood Chip Freight Rates A.  Via the Pacific Great Eastern Railway: Wood Chips  From  To  C a r l o a d Minimum 2 8 U n i t s p e r Car i n 5600 c u b i c f e e t capacity cars  W i l l i a m s Lake  North V a n c o u v e r  Minimum i n 5600 c u b i c ft» C a p a c i t y Car^ 28 Units per Car  Chetwynd Clinton Davie  Minimum i n 6l;00 c u b i c f t . Capacity Car, 32 U n i t s p e r C a r  Dunkley Exeter Kennedy Quesnel W i l l i a m s Lake  In Cents Per Unit lOoOO  )  2.10  P r i n c e George  .Sources:  P a c i f i c G r e a t E a s t e r n T a r i f f , G.F.0. No. 187-Aj S e c t i o n 2-A Wood C h i p Commodity R a t e s , I s s u e d March 15. 19659 p. 17. s  B.  V i a t h e Canadian N a t i o n a l  Wood Chips  From  C a r l o a d Minimum 11(0,000 l b s . based on 3 2 U n i t s p e r C a r  Sources  Railways;  I n Cents Per U n i t  To  3.06  C r e s c ' n t Spur) Fort Fraser ) F r a s e r Lake ) Houston ) McBride ) P r i n c e George Penny ) Telkwa ) Topley ). Vanderhoof )  2.62  3.06  6.56 3.50  2.18  6.56 5.25  2.18  Commodity, A p p l i c a t i o n and Rates i n Cents P e r 100 l b s . s Wood C h i p s , Canadian N a t i o n a l R a i l w a y , F e b h 1966. 0  s  7h Although the price f o r pulpwood chips i s higher on the Coast ( $ l 8 . 0 0 / u n i t compared with $10.00/unit i n the I n t e r i o r ) , the a d d i t i o n a l f r e i g h t charge prohibits the movement of chips south.  Consequently,  the pulp m i l l s i n the North Central I n t e r i o r are not compelled to compete with Coast pulpwood chip p r i c e s . The chip-van, a motor vehicle with a capacity of 21 units, i s the alternative method of transportation f o r pulpwood chips. Currently, only one m i l l , located 3 5 miles from Prince George,is transporting chips by van.  Studies i n Eastern Canada have shown  that trucks are used more frequently on shorter hauls, while r a i l movement i s more economical f o r l a r g e r distances (Figure 1 6 ) , In the future, i t i s probable that more conversion plants i n the immediate v i c i n i t y of Prince George may use vans f o r moving their, chip i The structure of the f o r e s t industry i n 1 9 6 6 presents contrast to that i n 1 9 5 5 *  production, a vivid  Conversion units have become highly complexj  linkages between the units i n t r i c a t e .  The North Central I n t e r i o r i s  f i n a l l y reaching i t s f u l l p o t e n t i a l as a f o r e s t products manufacturing region, SPATIAL MODEL OF THE FOREST INDUSTRYs: 1 9 6 6  Two models comparable to those of 1 9 2 5 and 1 9 5 0 have been constructed to summarize the s p a t i a l pattern of 1966,  The f i r s t  represents the pattern r e s u l t i n g when a number of variables are held constant! the second, the modified pattern when transportation and topographical elements are introduced.  Figure 16  Frequency of Truck and Rail Hauls of Sawmill Chips by Distance in Eastern Canada. Source- I.B. Flonn, "How Sawmill Chips ore Moved in Eostern Conodo," Forest Products Research Branch, Department of Forestry, 1964  \ /  X  Y  t  //  1 1  50  \  >  \  \\  \  100  150 200 Distance in miles  \  \ y  ^  250  300  s  350  The theoretical s p a t i a l pattern evolved by 1966 i s described by Figure 17-A.  Like the 1950 model, the area i s assumed to be f l a t ,  with a uniform distribution of forest stands and equal a c c e s s i b i l i t y . The demand f o r forest products i s high: exists throughout the area.  competition f o r forest land  Change i n product demand since 1950  resulted i n the addition of a pulp economy to the area.  has  No limiting  factors have been introduced and exploitation of the forest proceeds i n a l l directions from the conversion units.  Placement of the  boundaries of exploitation has been determined by the distance logs and pulpwood chips can be economically transported. The model resulting i s comprised of a hierarchy of three hexagonal systems. At the highest level,-pulp m i l l , sawmill/planing and plywood operations form conversion centres which dominate the area.  Individual conversion units  (either sawmill/planer or plywood units) are spaced uniformly about the conversion complexes and direct flows of pulpwood chips to the centres. At a second l e v e l , the individual conversion units-are the focus of hexagonal areas of log exploitation.  Logs are direct to  these units from evenly spaced log assembly points. Logs, are also directed from assembly points to the conversion centres i n the same manner. At the t h i r d l e v e l , each log assembly point i s surrounded by an area from which logs can be drawn. The hinterlands of log assembly points nest within the supply area of the individual conversion units, which i n turn make up the tributary areas of the integrated conversion centres.  Figure 17  A.  Spatial  Model of the Forest  Industry,  77  1966  Secondary to Mills Log  Log Flow  Assembly  Saw and Planer  Point Mill  Integrated Pulp, Lumber and Plywood Complex Log  Flow  Pulpwood Chip Flow Boundary of Area  Log Supply  Boundary of Area Exploited by Sawmill Boundary of Chip Supply Area of Pulp Mill  Introduction of  Transportation Systems Railway River Log  Assembly Point  Saw and Planer Mill Integrated Pulp, Lumber, and Plywood Complex Log Flow to Assembly Point Secondary to Mills  Log Flow  -  Pulpwood Chip Flow  »  Boundary of Log Supply Area Boundary .of Theoretical Area Exploited by Sawmill Actual Area Exploited by Sawmill DKM/1966  Figure 17-b represents modifications to this scheme when r a i l , r i v e r , and roads are introduced.  The conversion complexes  and individual conversion units become centrally located with respect to both log and chip supplies. The planer/sawmill or plywood operations, however, tend to form nodes rather than being evenly distributed along the r a i l l i n e .  These units are no longer  oriented to roads as they were i n the 1950's.  The hinterlands of  the conversion plants are irregular i n shape, varying with the quality of timber stand and degree of a c c e s s i b i l i t y .  The chip supply  area extends equally i n a l l directions. - Major changes from the 19^0 pattern are increases i n log transportation distances,  relocation of conversion units and the  emergence of integrated conversion centres.  In addition, the com-  plexity of linkages and interdependence of processes has increased significantly.  The factors prompting these changes are isolated and  weighted as to their relative importance i n the following chapter.  CHAPTER IV  AN ANALYSIS OF KEY FACTORS CONTRIBUTING TO THE CHANGES IN STRUCTURE AND LOCATION IN THE FOREST INDUSTRY OF NORTH CENTRAL BRITISH COLUMBIA A number of changes i n the structure and l o c a t i o n i n the f o r e s t industry of the North Central region of B r i t i s h Columbia have been isolated and the s p a t i a l patterns characterizing the three major periods summarized,,  Factors such as growth markets, a v a i l a b i l i t y  of c a p i t a l , government p o l i c i e s and technological changes have contributed t o the changes i n the patterns.  This chapter attempts t o  explain the l o c a t i o n a l changes by weighting-the factors according to t h e i r r e l a t i v e importance.  Exogenous forces influencing the general  economic conditions of the region ( i . e . , encouraging the industry either to grow, decline or s t a b i l i z e ) are considered f i r s t .  The  examination of forces a f f e c t i n g the s e l e c t i o n of i n d u s t r i a l s i t e s , and hence bringing about changes i n l o c a t i o n within the region,follows.  SMALL-SCALE PRODUCTION  1915 - 1939 The major f a c t o r which encouraged the i n i t i a l e x p l o i t a t i o n of timber i n the upper Fraser V a l l e y was development of the p r a i r i e market.  Throughout the 1920 s and 1930's this market continued s  to be  the dominating f a c t o r , structuring both the size and type of i n d u s t r i a l  development.  The technological l e v e l of the industry and the raw  material supply of the region dictated the area i n the North Central I n t e r i o r to be exploited f i r s t . Exogenous Forces;  (a) the P r a i r i e Market.  The establishment  of a few marginal operators can be d i r e c t l y related to the market conditions of the 1920's and 1930's„  The following statement  emphasizes the dependence of the m i l l operators on the p r a i r i e market; Lumber exports to the United States have increased during recent years, but only a certain grade or type or class of I n t e r i o r lumber can be sold to advantage i n the said market. The preponderance of lumber produced i n the Interior i s of a low grade, which must be marketed i n the western provinces.1 Railway construction, o i l f i e l d requirements and public works c o n s t i tuted a portion of this market, but the purchasing power of the grain farmer continued to be the backbone of the p r a i r i e lumber demand, The relationship between the grain crop and the lumber trade i s i l l u s t r a t e d i n Figure 18 by graphs of timber scaled i n the North Central I n t e r i o r and wheat exported from Canada, 1920-1940.  The  spending power of the farmers depends upon successful marketing of the grain crop. i s evident.  Consequently, a one-year l a g i n lumber purchases  The successful grain crops of 1923 and 1928, f o r  example, were not f e l t by the lumbermen u n t i l 192h and 1929,  Between  1920 and 1929 the r i s e and f a l l of wheat exports i s r e f l e c t e d i n the lumber production.  1.  In years of poor sales, several of the North  B r i t i s h Columbia Lumberman, XIV, (February, 1930), p. 13.  )  Figure 18  81  I8cj- Timber Scaled in the Northern Interior and Bushels of Canadian Wheat exported 160  -  Source: British Columbia Department of Lands, Forests and Water Resources, Forest Service Reports. 1921-'41. Grain Trode Yearbook. Stanford, Evans Statistical Service, Winnipeg, Volumes 17 8 31, 1936-'37 a 1951.  -  400  140  J20  300  O)  .a)  A  /\ I \  o  ^100  •s in  c o  I  80  h/ / /  N a  v /  CD c c/>  CD  / \ /  -a .  I  w  cp_  l  CO  (A  \  v  Mi  \  60  H200  V  CO  40  -  100  20  1921  1925  1930  1935  1938  82 Central I n t e r i o r m i l l s were forced into bankruptcy.  2  During the depression years, p r a i r i e agriculture maintained production at the expense of successive price declines.  The  two  graphs i n Figure 18 i l l u s t r a t e continued wheat export and a reduced timber scale between 1930 and 1938, been cut i n h a l f ;  By 1933 the price of wheat had  farm incomes had decreased by an equal amount  (see Table III.) Wheat prices rose again i n 1937$ but drought conditions, grasshoppers and rust combined to reduce the y i e l d per acre to a low of 6.1) bushels.  Consequently, the north central i n t e r i o r lumber  industry, dependent upon the p r a i r i e market, remained at a low l e v e l  throughout the 1930's. The average value f o r spruce lumber from 1910 to 1962 f o r 3  the province i s indicated i n Figure 19 •  The graph shows the  declining price of lumber during the 1920's and 1930's„ point was  reached i n 193^4 at $15.15.  was not reached again u n t i l 19ij2.  The low  The high lumber price of  1920  There was l i t t l e incentive f o r  technical improvement or expansion i n the lumber industry of North Central B r i t i s h  Columbia,,  2. In 1917 Eagle Lake Sawmill went into receiverships i n 1921 Shelley Sawmills declared bankruptcy. Both were substantial m i l l s f o r the time. Western Lumberman, XIV (June, 1917), p. 3 2 ; and Western Lumberman, XVIII ( A p r i l , 1921), p. 5 0 . 3. Lumber prices f o r the North- Central I n t e r i o r f o r these years are not a v a i l a b l e . Since a large part of the spruce lumber produced i n the province comes from t h i s area, the prices f o r spruce lumber have been graphed.  83 Table H i t E f f e c t s of Depression and Drought Upon the P r a i r i e Grain Trade, 1928 to 1939.  „. . , /. Yield/Acre  .. Domestic r e s a l e  Price*  Income Created ,  (? S?  *•*  (bushels)  1928  23.5  12k  440.7  1929  11.5  124  323.6  1930  16.6  64  158.7  1931  11.8  50  92.1  1932  16.0  54  111.2  1933  10.li  68  109.0  1934  11.3  82  136.3  1935  11.3  84  141.7  1936  8.1  122  134.3  1937  6.4  131  130.6  1938  13.5  62  174.0  1939  19.1  76  212.9  M  o  n  s  *Price f o r Manitoba Hard at F t . William. Source?  D. MacGibbon. The Canadian Grain Trade 1931°5l» Toronto%• University of Toronto Press, 1952, p. 6.  )  140  Averag e RO.B. Price for EB.C. 120  _ Spruce Source  IQIR _ IQ 62 \J t_  1 nmKcr  D.B S. Mimeographed  —  Price L i s t , Unp jblished.  100  80 LL  ad  (TO  3 60 ~o Q 40  20  1915  1920  1925  1930  1935  1940  1945  1950  1955  I960  1965 co  85  Factors encouraging change i n locations (a) Technological level.  Limited demand, declining lumber prices and substantial  market fluctuations resulted i n the development of an undercapitalized, marginal type of industry,. Most sawmills lacked the s t a b i l i t y necessary f o r sizable capital investments i n the machinery and equipment common to lumbering industries i n other areas.  Therefore,  the level of technology severely restricted the areal spread of lumbering a c t i v i t y and limited the possible sites which could be selected by the sawmillers. In the early years trees had been f e l l e d by axes and hand saws into the river and floated to the m i l l s .  As the timberline receded  from the river-edge this method became impossible. The construction of temporary roads during the winter and the subsequent movement of logs by horse and sled to the m i l l or river-edge became the common method. The logging railway and steam donkey had been introduced to the southern parts of the province by 1915. Great tracts of timber had suddenly become accessible. By 1917 the southern i n t e r i o r operators were hauling logs 15 miles.^ Only companies with substantial capital backing, however, could afford the construction of such transportation l i n e s .  The sawmill operators i n the North Central Interior  did not have the financial resources necessary to replace horses with tractors or railway systems. In 1930 a l l the mills with the  ho  Western Lumberman, XIV, (February, 1917), p. 21.  exception of one were reported s t i l l b r i n g i n g t h e i r logs from distances " w e l l under two miles".'' Consequently, m i l l i n g and logging operations were r e s t r i c t e d to the area immediately adjacent t o the Canadian National Railway. (b)  Raw M a t e r i a l Supply.  In 1916 the Western Lumberman  defined the motivation behind the establishment of sawmills i n the North C e n t r a l I n t e r i o r s ...plants l o c a t e d before r a i l c o n s t r u c t i o n at points l i k e l y t o become centres of development; others were s t a r t e d up by, ranchers and land companies to supply a l o c a l demand f o r b u i l d i n g m a t e r i a l ; but i n most cases the i m p e l l i n g concerns were i d e a l m i l l s i t e s going t o waste, timber c l o s e at hand and assurance of t r a n s p o r t a t i o n f o r output. ° 00  The i d e a l m i l l s i t e had three pre-requisitess  an e a s i l y - a c c e s s i b l e  timber supply, a r i v e r f o r l o g transport and' storage, and the r a i l l i n e f o r d i s t r i b u t i o n o f t h e finished product n  0i  A l l three were found  i n the upper Fraser V a l l e y . I t was the raw m a t e r i a l supply that determined where the m i l l s l o c a t e d . Figure 20 i l l u s t r a t e s the areas of  merchantable  timber i n the F o r t George Forest D i s t r i c t i n 1937.  Large continuous  0  stands of timber are few;  s m a l l patches of timber broken up by  physiographic features common. The region w i t h the l a r g e s t timbered sections and the densest growth was l o c a t e d i n the upper Fraser 5.  B r i t i s h Columbia Lumberman, XIV, (June, 1930), p.  6.  Western Lumberman, X I I I , ( J u l y , 1916), p. 2lu  3k.  Merchantable George  Timber  Forest  Timber  Over  Timber  Under  Boundary of  \ ^  in  District  Boundary  the as  Fort  of  1937  10 M.B.M. per  10  M . B . M . per Acre  Forest  Enclosing  District  Fraser  )  Headwaters, Bowron River, and  ^  McGregor River  Source  F. D. Mulhollond,  The Forest  p 115  River  Drainage Basins  BrltisH Columbia, 1937, Victoria, B.C.,  Acre  Resources  Dept. of  of  Lands,  V a l l e y around Giscome, Hansard and Penny. map,  The area outlined on the  containing the drainage basins of the Bowron, Fraser River  Headwaters and McGregor Rivers accounted f o r 60 per cent of the  7 t o t a l accessible log scale i n the d i s t r i c t at that time.  To t h i s  region came the sawmillers. The m i l l s located along the Fraser River i n areas with maximum a c c e s s i b i l i t y to timber stands.  Since logging operations  were a r e a l l y r e s t r i c t e d , only a f r i n g e of the timbered area along the r i v e r s and lakes could be considered accessible.  M i l l s which  located near to a supply of timber s u f f i c i e n t to support an operation cutting 60,000 board feet prospered and grew.  Others, which happened  to locate where timber stands were discontinuous i n nature, were forced to abandon and relocate operations.  Thus, the Eagle Lake  Company was moved from the mouth of the Willow River to Giscome to take advantage of the greater timber shed. The small s i z e and number of early sawmilling ventures i n the North Central I n t e r i o r are d i r e c t l y related to the lack of a l o c a l demand and the fluctuating conditions of the p r a i r i e market. The low technological l e v e l of the industry, a f a c t o r r e s u l t i n g from the unstable market conditions, r e s t r i c t e d sawmills to locations proximate to the Canadian National Railway.  Within t h i s  l i m i t e d area of economic exploitation, the l o c a t i o n of prime timber  1937  7. F.D. Mulholland, The Forest Resources of B r i t i s h Columbia, (Victorias King's Printer, 1938), p. like ' 1  stands d i c t a t e d the exact s i t e s chosen by the entrepreneurs. AREAL DISPERSION OF LOGGING AND  MILLING OPERATIONS s l ? l j O - l 5 7 Q  External forces which had a d i r e c t influence on the economic climate of the North-Central I n t e r i o r a f t e r l°ljO weres  (a)  a  g r e a t l y increased demand f o r lumber, (b) war-time shortages of labour, equipment and c a p i t a l , (c) high lumber p r i c e s , and l a c k of a p o s i t i v e f o r e s t management p o l i c y .  (d) the  These f a c t o r s encouraged  the development of a large number of l o g g i n g / m i l l i n g operations with low output and low productivity,,  Changes i n t r a n s p o r t a t i o n technology  and the low wood recovery of m i l l s were the f a c t o r s which encouraged the movement of sawmills from r a i l h e a d l o c a t i o n s i n t o timber c u t t i n g regions. Exogenous Forces % (a) Increased Demand For Lumber. With the outbreak of the Second World War,  Canada assumed the r o l e of the  p r i n c i p a l Commonwealth s u p p l i e r of raw m a t e r i a l s .  While the Coast  shipped large s t r u c t u r a l timbers to B r i t a i n , the lumber industry of I n t e r i o r B r i t i s h Columbia was c a l l e d upon by the Federal Timber Control to supply a major part of Canada"s domestic and war  require-  ments. The demand from Canadian markets consisted p r i m a r i l y of war orders f o r the p r a i r i e provinces.  Construction  of army bases  and a i r - t r a i n i n g centres f o r the Canadian A i r Force and  the  Commonwealth A i r T r a i n i n g Scheme were projects r e q u i r i n g large q u a n t i t i e s of common grade lumber.  Conditions i n B r i t i s h Columbia  90 were described as follows;: . . . i t i s the f i r s t time i n history that every plant manufacturing every species of wood i n every region of the country i s operating at maximum capacity and can s e l l i t s product as soon as i t i s properly dried and ready f o r manufacturing,8 In the North- Central I n t e r i o r , the lumber industry responded by expanding i t s productive capacity and moving outwards from the upper Fraser V a l l e y into other timber areas.  And s t i l l , " i n  Northern B r i t i s h Columbia .„. American orders, Canadian orders and Canadian motor industry orders t o t a l f a r i n excess of the capacity of the mills to load and. ship,..V'^ A building boom i n both Canada and the United States characterized the post war years.  The United States, with a  r a p i d l y growing population and depleted f o r e s t r y resources, was becoming more r e l i a n t upon external sources of lumber«  By 1952  the United States accounted f o r nearly half of the t o t a l value of p r o v i n c i a l forest products exported to f o r e i g n partso  The  demand f o r lumber which was stimulated by the Second World War remained at a high l e v e l throughout the 19h0 s and 1950's l!  o  This increased demand permitted the expansion and development of the industry i n the North- Central I n t e r i o r .  Without i t , the l e v e l  Bo B r i t i s h Columbia Lumberman, XXVI, (August, 19^2), p„ 2 7 .  9e A ' o S o Nichols on, B r i t i s h Columbia Lumberman, XXVI, (September, 19U2), p. 25o Mr. Nicholson was the Canadian Timber Controller during World War IIo  91 of p r o d u c t i o n and type o f i n d u s t r i a l p a t t e r n c h a r a c t e r i s t i c o f the 1920«s would have c o n t i n u e d . a r e a l expansion Valley.  T h i s market i n c r e a s e n e c e s s i t a t e d an  outwards t o timber areas remote from t h e upper F r a s e r  The completion  o f t h e John Hart Highway n o r t h from P r i n c e  George t o the Peace R i v e r a r e a and the P a c i f i c Great E a s t e r n  Railway  south t o Quesnel i n t h e e a r l y 1950 s p r o v i d e d access t o these areas „ ^ 9  The demand, however, d i d not determine the type o f i n d u s t r i a l ment whidh o c c u r r e d .  develop-  A few l a r g e - s c a l e f i r m s c o u l d have dominated t h e  i n d u s t r y , r a t h e r t h a n the m u l t i p l i c i t y o f s m a l l companies which developed  d u r i n g the 1940«s and 1950"s„  I n t h e case o f t h e f o r m e r , a  v e r y d i f f e r e n t s t r u c t u r e and l o c a t i o n p a t t e r n would have The  developed.  i n c r e a s e d demand a c t e d as a p e r m i s s i v e f a c t o r a l l o w i n g t h e expansion  and development o f the i n d u s t r y s -  a combination  o f war-time s h o r t a g e s ,  h i g h b u t u n s t a b l e lumber p r i c e s and l a c k o f government management p o l i c y determined (b)  the type o f i n d u s t r i a l s t r u c t u r e which emerged.  Labour, Equipment and C a p i t a l Shortagess  During  the war  y e a r s , shortages of c a p i t a l , l a b o u r and equipment were common. The a t t r a c t i o n o f s k i l l e d l a b o u r t o t h e s h i p y a r d s and o t h e r war i n d u s t r i e s , and t h e e n l i s t m e n t o f men i n the armed f o r c e s , had a marked e f f e c t on s a w m i l l i n g o p e r a t i o n s throughout  the province.  I n 1942 i t was  10. "Opening the Hart Highway a; y e a r ago has r e s u l t e d i n e s t a b l i s h i n g a number o f s a w m i l l s . About 19 m i l l s have s t a r t e d up i n t h e Crooked R i v e r F o r e s t Resource, up t h e highway n o r t h o f Summit Lake," B r i t i s h Columbia Lumberman, XXXVII, (August^ 1953)s P» 3 0 .  reported i n the B r i t i s h Columbia Lumbermant In Northern B r i t i s h Columbia and Northern A l b e r t a region production i s somewhat below normal as a r e s u l t of labour shortage, mainly caused by the movement of labour t o government contracts i n that v i c i n i t y , „ 0  By 1943 i t was estimated that the p r o v i n c i a l m i l l s and camps were short 4*000 menj that the I n t e r i o r lumber trade was operating a t only 50 per •4.  1  2  cent capacity. Compounding the problem of labour shortage was the d i f f i c u l t y involved i n obtaining logging and m i l l i n g equipment. During 1940 and 1941 the supply of equipment from the United States remained f o r the most part adequate.  As the war needs demanded greater q u a n t i t i e s of  s t e e l and rubber the supply became acute.  By 1943 i t was v i r t u a l l y  impossible t o obtain necessary machinery parts f o r r e p a i r s , ^ P r o d u c t i v i t y remained a t a low level,, while the demand f o r lumber f a r exceeded the c a p a b i l i t i e s of the i n d u s t r y . I n t u r n , the c a p i t a l necessary f o r investment was not r e a d i l y a v a i l a b l e .  The s i z e of  operations entering the lumber export i n d u s t r y remained severely limited. In the immediate years a f t e r the war, equipment and c a p i t a l 11<; Nicholson, op. c i t , , p, .25, 12.  B r i t i s h Columbia Lumberman, XXVII, (May, 1943) V» 23, a  13« G.R. Munro, "The H i s t o r y of B r i t i s h Columbia Lumber Trade 1920-1945", (Unpublished Bachelor's Thesis, The U n i v e r s i t y of B r i t i s h Columbia, Vancouver, 1956), p„ 99°  were r e q u i r e d by a l l phases o f Canadian i n d u s t r y . demand f o r lumber products  Although t h e  remained h i g h , c a p i t a l f o r investment i n  the North C e n t r a l I n t e r i o r remained l i m i t e d .  Since l i t t l e  external  c a p i t a l was a t t r a c t e d t o t h e a r e a , investment remained s m a l l and l o c a l i z e d i n nature.  I t i s probable  t h a t the i n s t a b i l i t y of t i m b e r  s u p p l i e s and the f l u c t u a t i n g lumber p r i c e s c r e a t e d an i n s e c u r e for  l a r g e - s c a l e investment.  d u r i n g t h e war c o n t i n u e d (c)  The s m a l l companies which s p r a n g up  through the 1950 s, 8  Between 1940 and 1950  Lumber P r i c e s ,  i n c r e a s e d s t e a d i l y ( F i g u r e 19),  lumber p r i c e s  F l u c t u a t i o n s i n the p r i c e of spruce  lumber a r e r e f l e c t e d i n t h e number o f a c t i v e sawmills I n years  o f h i g h p r i c e s , t h e number o f o p e r a t i o n s  cantly.  In  1947-48,  however, when p r i c e s dipped^  the i n d u s t r y was r e t a r d e d off  of prices i n  u n t i l 1953,  1951-52  field  o f the r e g i o n .  increased  signifi-  t h e expansion of  (compare F i g u r e s 5 and 19),  The l e v e l l i n g  was not r e f l e c t e d i n the growth of s a w m i l l s  I n g e n e r a l , t h e h i g h l e v e l of lumber p r i c e s throughout  t h i s p e r i o d encouraged t h e growth o f t h e s m a l l p r o d u c e r , (d)  F o r e s t Management P o l i c i e s ,  By t h e 1940 s the government 3  had become aware o f the need f o r c o n s e r v a t i o n p o l i c i e s and f u l l e r u t i l i z a t i o n o f timber  resources.  A c c o r d i n g l y , t h e Royal Commission  o f 1945 was s e t up t o i n q u i r e i n t o the f u t u r e o f t h e f o r e s t i n d u s t r y . The  r e s u l t i n g p o l i c y urged t h e e s t a b l i s h m e n t  management o f the . i n d u s t r y  s  of sustained  yield  t h e aim of which was t o p r o v i d e a  " p e r p e t u a l y i e l d o f wood o f commercially  usable  q u a l i t y from r e g i o n a l  9h LU  areas i n y e a r l y o r p e r i o d i c q u a n t i t i e s o f e q u a l o r i n c r e a s i n g volume*," A number o f F o r e s t Management L i c e n c e s  were i s s u e d through which t h e  major companies were guaranteed s u f f i c i e n t s u p p l i e s o f t i m b e r f o r a long-term p e r i o d . providing f i r e  I n r e t u r n t h e y agreed t o a d m i n i s t e r  c o n t r o l and r e f o r e s t a t i o n .  I n other  the  lands,  areas P u b l i c  r Working C i r c l e s were e s t a b l i s h e d and a d m i n i s t e r e d In these a r e a s ,  by the F o r e s t  Service,  no guarantees o f t i m b e r s u p p l i e s were made and s a l e s  went t o t h e h i g h e s t  bidder.  In the P r i n c e George F o r e s t D i s t r i c t o n l y seven F o r e s t Management L i c e n c e s  were g r a n t e d , one n e a r Quesnel and the remainder i n the  upper F r a s e r V a l l e y ,  The r e s t o f the area was r e s e r v e d f o r e s t a b l i s h -  ment o f p u b l i c s u s t a i n e d a l i e n a t i o n i n the producers o f the and  yield units.  Figure  21 i l l u s t r a t e s t h e f o r e s t  P r i n c e George F o r e s t D i s t r i c t by 1956,  The e s t a b l i s h e d  1920's who were g r a n t e d the l i c e n c e s were able t o expand  p l a n long-term f i n a n c i n g f o r t h e i r o p e r a t i o n s .  Most o f t h e o p e r a t o r s  however, l a c k e d t h i s s e c u r i t y o f f u t u r e t i m b e r s u p p l i e s and t h e i r s a l e s remained s m a l l and i n t e r m i t t e n t .  By 1951ij the N o r t h e r n I n t e r i o r Lumber-  men's A s s o c i a t i o n d e s i r e d a second Commission to l o o k i n t o t h e governmental p o l i c i e s because o f "the  l a c k o f confidence  w i t h i n the  lumber  ill, Gordon McG, S l o a n , The F o r e s t Resources o f B r i t i s h Columbia 1956, ( V i c t o r i a , B.C-s- Queen's P r i n t e r , 1 9 5 7 ) p» U0„ " s  l5o S i n c e 1957 P u b l i c Working C i r c l e s have been known as P u b l i c Sustained Y i e l d U n i t s 0  96  industry i n the present policies and their interpretation,"  16  In the  inquiry of 1956, one of the themes was c r i t i c i s m of the Public Sustained Y i e l d Unit, As Mr, Walter Koemer stated: The conversion plant using logs from a sustained y i e l d unit has not assurance of a continuous supply of raw materials. Therefore, the tendency f o r plants dependent upon such logs must be to l i m i t their investment. Conversion plants with a limited assured supply of wood and a low c a p i t a l investment do not i n general produce a high priced or readily marketable product. They cannot afford research f o r new developments and better wood u t i l i z a t i o n . In addition, neither they nor the logging operations are under any compulsion to operate continuously i n times of poor markets. They can more readily afford to shut down as their depreciation and overhead are low,17 This statement described the state of the lumber industry i n Interior B r i t i s h Columbia, The lack of a stabilized timber supply was not new. In 1943 examples had been cited of companies setting up operations i n timbered areas only to f i n d other sawmills moving i n and rapidly 18  depleting the resources,  A plea f o r a better designed forest  policy with protection f o r the established operator had been made  0  Two years l a t e r i n 1945 Chief Justice Sloan i n the Commission had stated? The Interior Lumber Manufacturers Association has recommended f o r the Interior that " a l l existing operations should be brought under licence and no new operation should be licenced u n t i l the a v a i l a b i l i t y of timber i n the area affected, sufficient to guarantee the maintenance of that operation on a sustained-yield basis i n perpetuity has been determined," 16,. B r i t i s h Columbia Lumberman, XXXVIII, (November^ 1954)  s  17,  Sloan, 1956,  op, c i t , , pp, 137-138,  18,  B r i t i s h Columbia Lumberman, XXVII, (June, 1943)» p, 30,  p, 22,  In my opinion this recommendation should be implemented. I t i s a much better policy to plan and manage any Interior sustained y i e l d unit so that one m i l l may be assured of continuity of supply and permanent operation than to allow the productive capacity of an area to be divided between four or f i v e m i l l s with the result that none of them has a sufficient supply to ensure an economic production, thus leading to the ultimate disappearance of them a l l . Ghost towns i n the Interior bear distressing and silent witness to the past policy of too many mills cutting out areas that could have supported i n perpetuity, on a system of planned management, the potential capacity of probably half of them.*? Such a system of licencing, i f i t had been implemented, would have produced a different i n d u s t r i a l structure. Instead, a method of r e s t r i c t i n g entry into the industry, and of guaranteeing already invested capital was not introduced u n t i l 1961, With the advent of the Sustained Yield Unit i n  19kSs  a  r e s t r i c t i o n i n the allowable cut of forested areas came into effect. Established operations had l i m i t s placed upon them. I f s i x companies were operating on an allowable cut of 2li,000,000 board feet, for example, each on the average could expect to use h 000,000 feet s  annually.  I f , however, three additional mills entered the area, the  cut of each was reduced. During the 19l40»s and 1950's the system of auctioning timber offered no guarantee to the o r i g i n a l s i x sawmill operators that they could obtain additional blocks of contiguous  19. Gordon McG, Sloan, Royal Commission on the Forest Resources of B r i t i s h Columbia, (Victoria, B.C.s C.F. Banfield, Printer to the King, 19U5), PP° H47-1U8.  timber stands.  Timber was acquired by the highest bidder.  And i n  some cases speculative bidding carried the price far above the p r o f i t margin of the established operator. The forest management policies helped to perpetuate the large number of undercapitalized producers.  In the Public Inquiry of 1956  evidence was heard to indicate that capital investments i n the lumber industry of the North Central Interior were given l i t t l e security. Hans Roine of Clearlake Sawmills Ltd, whose investment at this time totalled $110,000 stated that his timber supply was guaranteed for only 18 months i n advance. In addition he made the following comments I f e e l that being an established operator i n an area should carry some certain protection. ,,we have realized f o r some long time that we must come to a greater u t i l i z a t i o n of forest products which we are t o t a l l y unable to do today i f we are only going to know within one or two years as to what period of time we can remain i n operation. ^ 0  Large-scale operations were not encouraged i n their development, nor attracted to the area.  Some of the operators i n the sustained yield  'units set up voluntary associations to control the distribution of the allowable cut.  In the Prince George area four such associations  were set up i n the Crooked River, Westlake, Willow River and Naver 21 Sustained Yield Units,  For the majority of sawmilling companies,  however, continued operation remained guaranteed on a short term 20. Mr, H, Roine, Transcript, Hearings of the Royal Commission Inquiry into Forest Resources, (Victoria, B,C, 1956), p. 76llu 21.  Ibid., p. 7615o  basis only. The increased demand of the war needs of the 1940>s and the b u i l d i n g boom of the l°£0 s necessitated the r a p i d expansion of both 9  lumber production and number of a c t i v e sawmills.  The r e s u l t i n g  s t r u c t u r e was that of a number of marginal and o f t e n producers.  seasonal  I t was an i n d u s t r i a l l y immature region i n which sawmills  operated on an ad hoc b a s i s and few entrepreneurs had a developed business sense.  The minimal b a r r i e r s to entry i n t o the i n d u s t r y  encouraged a large: number- of m i l l s t o operate i n t e r m i t t e n t l y ! namely i n times of high lumber p r i c e s , r e a d i l y accessible timber supplies and dry weather.  When p h y s i c a l or economic conditions became l e s s  than " i d e a l " , a large number of these small marginal operations closed.  The north c e n t r a l i n t e r i o r industry o f the 1940 s can i n 8  many ways be compared t o the c o a s t a l industry of the 1920 s. At s  that time a large number o f small companies were c u t t i n g timber up and down the coast', most-of whom vanished during the depression.of 1929, The dispersed l o c a t i o n pattern which characterized the North C e n t r a l I n t e r i o r at t h i s time p a r t i a l l y r e f l e c t e d the type of market open to the entrepreneur. only, lumber.  The m i l l operators could s e l l one product  Any wood not s u i t a b l e f o r the manufacture of lumber  was l e f t behind or burned.  This s i n g l e product market, combined  with the type of sawing equipment common i n the region, created an industry i n which the lumber recovery was p a r t i c u l a r l y low.  100  As timber c u t t i n g moved away from the e s t a b l i s h e d m i l l i n g areas, i t became uneconomical to transport the logs when perhaps only $0 per cent of each l o g would eventually be cut as lumber.  This  s i t u a t i o n , plus the a p p l i c a t i o n of new forms of transport media, encouraged the r e l o c a t i o n of m i l l s w i t h i n c u t t i n g areas. Factors encouraging change i n locations  (a) Lumber recovery.  In 1956 a study was c a r r i e d out on 12 m i l l s i n the Prince George area to determine the amount of sawmill residue r e s u l t i n g from the methods of manufacturing lumber.  Five of the m i l l s were c u t t i n g more than  20 M. bd„ f t , | seven c u t t i n g l e s s than 20 M. bd„ f t .  The r e s u l t s were  as followss Table IVt  Percentage of Residue  22  Volume of Solid Residue  Volume of Sawdust  M i l l s c u t t i n g more than 20 M, f t , b,m,/ 8 hrs.  20,8  18,7  39,5  M i l l s cutting less than 20 M, f t , b,m,/ 8 hrs,  23,0  17,9  40,9  Total  On the average, about 40 per cent of each green l o g was c l a s s i f i e d as  22, C F , McBride, '"Sawmill Residue i n the Prince George area of B r i t i s h Columbia," Forest Products Laboratories D i v i s i o n , Department of Northern A f f a i r s and National Resources, V-1013.  101  sawmill residue and 60 per cent was converted i n t o lumber. V a r i a t i o n s could be found throughout the area w i t h the large s t a t i o n a r y m i l l s having a higher recovery, and the small portable m i l l s w i t h l e s s e f f i c i e n t equipment producing a t a lower l e v e l o And secondly, the recovery f a c t o r v a r i e s with the diameter of the logo  The lumber recovered from a 6-inch l o g i s only 72 per cent  of that recovered from a 20-inch l o g .  I n some of the stands of  timber t o the west of Prince George and i n the Dry B e l t t o the south the recovery e a s i l y averaged l e s s than $ 0 per cento (b)  Changes i n Transportation Technology„  The s i n g l e f a c t o r  which permitted the movement of the sawmill i n t o the timber-cutting regions was the i n t r o d u c t i o n of t r u c k logging,,  Since equipment and  f u e l s were d i f f i c u l t t o obtain during the war, horses were used e x t e n s i v e l y f o r logging u n t i l about 19iiS>o A change t o crawler t r a c t o r s , arch-trucks and lumber trucks characterized the post-war years„ The under-financing of the i n d u s t r y and the low wood recovery discouraged  the use of logging trucks and loading equipment.  the lumber truck that r e v o l u t i o n i z e d the region.  I t was  The i n i t i a l c a p i t a l  outlay f o r a lumber t r u c k i s considerably l e s s than that f o r a logging truck.  I n a d d i t i o n the movement of rough lumber i s l e s s expensive  than the t r a n s p o r t a t i o n of l o g s . per Mo bd, f t , t o transport logs  The sawmiller pays $ l l 0 0 - $ 1 2 0 0 o  h 0  0  m i l e s , as compared t o $i)«50 - $5»00  102 0*3 p e r M. b d f t . f o r r o u g h cut l u m b e r . To j u s t i f y the b u i l d i n g o f a c e n t r a l i z e d c o n v e r s i o n p l a n t and t h e moving of l o g s liO m i l e s , an 0  J  s  $7.00 p e r  additional  M . bd„ f t .  has t o be g a i n e d .  Today, the h i g h  lumber r e c o v e r y and the advantages o f l a r g e - s c a l e , c e n t r a l i z e d have more t h a n o f f s e t t h e c o s t o f l o g t r a n s p o r t a t i o n . the case i n 1 9 5 0 , The t r a n s p o r t a t i o n s a v i n g s  operations  T h i s was not  r e a l i z e d from the  reduced  volume and weight of rough lumber d i c t a t e d the l o c a t i o n of the s a w m i l l a t the t i m b e r - c u t t i n g  site,  A second change o c c u r r e d i n the movement of l o g s from t h e stump t o the m i l l .  T r a c t o r s k i d d i n g r e p l a c e d the h o r s e f o r t h i s  operation^  2U b u t the s k i d d i n g d i s t a n c e was s t i l l r e s t r i c t e d t o two m i l e s .  In  1955s  10  the i n t r o d u c t i o n of t h e a r c h - t r u c k extended t h i s d i s t a n c e  miles.  The a r c h - t r u c k was d e s i g n e d t o t r a n s p o r t l o g s  in  tree-lengths  f r o m the l a n d i n g t o t h e m i l l by h o i s t i n g the l o a d a t the f r o n t and a l l o w i n g t h e t r e e ends t o drag b e h i n d .  The i n v e s t m e n t n e c e s s a r y  in  an a r c h - t r u c k was c o n s i d e r a b l y l e s s t h a n t h a t needed f o r a t r u c k and trailer.  I n a d d i t i o n , t h e c o s t o f a t w o - m i l e h a u l b y a r c h - t r u c k was  25  $2,00/M,  bd, f t ,  as compared t o  $3,75  f o r t r u c k , t r a i l e r and l o a d e r .  The c o m b i n a t i o n o f a r c h - t r u c k and lumber t r u c k proved t o be the most 23,  Statement by M r , Conrad P i n e t t e , p e r s o n a l i n t e r v i e w ,  Ik,  Statement b y M r , G , C a i n e , p e r s o n a l i n t e r v i e w , M a r c h ,  August,  1966, 1966.  25, R, K e i t h T a r d l y , " T r u c k - M o u n t e d Arches i n B r i t i s h Columbia N o r t h e r n I n t e r i o r , " B r i t i s h Columbia Lumberman, L I V , (November, 1960)  pp, 25-26.  5  103 e c o n o m i c a l , as w e l l as most f l e x i b l e , f o r the s m a l l o p e r a t o r l i m i t e d c a p i t a l a v a i l a b l e f o r investment.  By e x t e n d i n g  a r e a o f t h e m i l l f r o m two t o 10 m i l e s , t h e a r c h - t r u c k the c o n t i n u a t i o n of the resource-oriented  conversion  FUNCTIONAL INTEGRATION AND AREAL OF CONVERSION PLANTS s  with  the supply encouraged  unit  0  CONCENTRATION  1958-1966  C o n s o l i d a t i o n o f t h e lumber i n d u s t r y i n t o f e w e r l a r g e - s c a l e u n i t s , and t h e subsequent a r e a l c o n c e n t r a t i o n o f t h e u n i t s have b e e n two  t r e n d s c h a r a c t e r i z i n g t h e i n d u s t r y s i n c e 1958,  f o r c e s appear t o have been i n f l u e n t i a l ?  Three exogenous  ( a ) market demands, ( b )  l a b o u r demands, and ( c ) changes i n the p r o v i n c i a l f o r e s t management policy.  To cope w i t h c o n d i t i o n s b r o u g h t about b y t h e s e f a c t o r s ,  e n t r e p r e n e u r s have been f o r c e d t o i n c r e a s e c a p i t a l i n v e s t m e n t i n s p e c i a l i z e d equipment, t o d e v e l o p l a r g e r - s i z e d c o n v e r s i o n and t o i n t e g r a t e as many f u n c t i o n s as p o s s i b l e .  plants  In turn, f u l l e r  u t i l i z a t i o n o f wood p r o d u c t s has l e s s e n e d t h e t r a d i t i o n a l t i e t o raw m a t e r i a l s o u r c e s .  Factors encouraging the s h i f t of conversion  p l a n t s t o c e n t r a l i z e d r a i l h e a d l o c a t i o n s ares recovery,  ( a ) h i g h e r wood  (b) year-round o p e r a t i o n , ( c ) a c c e s s i b i l i t y t o timber  s u p p l i e s , ( d ) l a b o u r s t a b i l i t y and ( e ) c o n t r o l o f t h e m a r k e t i n g and shipping functions.  The t h r e e exogenous f a c t o r s and t h e e n t r e p r e n e u r s  responses w i l l b e examined f i r s t . Exogenous f o r c e s s :  ( a ) M a r k e t Demands  0  Growing markets f o r  IOU  wood products o t h e r than lumber as w e l l as demands f o r a s t a n d a r d i z e d h i g h e r grade of lumber product have had a pronounced e f f e c t on the f o r e s t i n d u s t r y ,  S i n c e the U n i t e d S t a t e s i s B r i t i s h Columbia's 26  l a r g e s t customer o f f o r e s t p r o d u c t s ,  the changing t r e n d i n product  q u a l i t y and mix d i c t a t e d by t h i s market i s r e f l e c t e d i n the a d a p t a t i o n of  the p r o v i n c i a l industry.  The f o l l o w i n g f i g u r e s i n d i c a t e t h e  probable t o t a l consumption p a t t e r n o f f o r e s t products i n the U n i t e d 27  States f o r the years  T a b l e Vs  1°50,I 9 6 0 ,  1 9 8 0 and  2,000,  Consumption P a t t e r n s o f F o r e s t Products  Lumber ( b i l l i o n bd,  .ft,)  Plywood and Veneer ( b i l l i o n s , f . 3/8") Pulp ( M i l l i o n s s h o r t tons)  i n the United States  1950  I960  1980  %  %  %  2000  42  37  33  3  8  16  26  17  27  hi  76  * —————=31  The s t u d y i n d i c a t e s t h a t a d e c l i n e i n the r e l a t i v e p l a c e o f lumber v e r s u s plywood has taken p l a c e and a l s o , t h a t s u b s t i t u t e s a r e t a k i n g over some of the f u n c t i o n s of wood, p a r t i c u l a r l y i n the s t r u c t u r a l  26„ 89 p e r cent  E i g h t y - f i v e p e r cent of p r o v i n c i a l lumber e x p o r t s and o f newsprint e x p o r t s a r e marketed i n the U n i t e d S t a t e s ,  27o The B r i t i s h Columbia F o r e s t I n d u s t r i e s 1 9 6 5 - 6 6 (Vancouver?M i t c h e l l Press L t d , , 1 9 6 5 ) * p. F 2 , ~  Yearbook  uses.  105  The fourfold increase i n the volume of pulp required i s emphasized. It i s this growing demand f o r wood products other than lumber that has been f e l t i n the North Central Interior,  Since 1950 three  veneer and/or plywood mills have begun operation, with three more i n the planning stages.  In addition, s i x pulp mills have recently  opened, or are under construction i n the region. Secondly, the lumber producers have been faced with market demands f o r a higher quality product. To compete with other lumber producers,the sawmillers have had to standardize their lumber grading system and invest i n additional equipment. Where previously i t was possible to ship rough, green lumber, i t has now become mandatory to export dressed and dried lumber. Drying i s accomplished either by 28 a i r drying f o r a number of weeks or by k i l n drying  i n a matter of  days. Either method necessitates the investment of capital; the former i n large lumber inventories, and the l a t t e r i n actual equipment. In addition to buyer demands, the transportation savings gained from the reduced weight act as incentives f o r the i n s t a l l a t i o n of drying 29  facilities.  The demand of European markets f o r packaged lumber i s  28o Drying lumber i n a k i l n i s accomplished by means of gas f i r e d burners and high temperatures. The drying time varies with the thickness of the lumber, A rule of thumb used i s a day of drying f o r each quarter inch of lumber, 29, The r a i l rates f o r lumber shipments are based on specified weights. I f the shipper's weight f o r a carload of lumber i s under the specified weight he saves money. I f the carload exceeds the specified weight he pays extra f o r the transportation.  106 a l s o being f e l t by the sawmillers„  The packaging i s accomplished by  strapping and wrapping d r i e d lumber i n water r e s i s t a n t k r a f t paper or polythylene as p r o t e c t i o n against moisture and d i r t .  Again, a d d i t i o n a l  expenditure  i n equipment and labour i s necessary to market lumber i n  t h i s form,  A small under-capitalized sawmill i s unable to meet these  demands. (b)  Labour Demands; Labour demands have forced the higher  c a p i t a l i z a t i o n of the average conversion u n i t e  In 1953  the basic  rate f o r common l a b o r i n the North Central I n t e r i o r was $1,35 1/2 per  30 hour, f o r a Gang M i l l . Sawyer $1,95 1/2 pe r ;  1966,  faburW~- ; r  :  ^JDe^ember 1,  the basic hourly wage of a labourer had r i s e n to $2,26, while the  Gang M i l l Sawyer earned $2.86 and Sawyers on automatic carriages more than $3«00 an hour-^ (see Figure 22)„  Employees also gained b e n e f i t s  of a d d i t i o n a l paid s t a t u t o r y holidays and vacations, n a t i o n a l pension plans and increased workmen's compensation b e n e f i t s . However, during that same thirteen-year period the market p r i c e f o r dressed lumber d i d not increase at the same r a t e .  As Figure 22 i l l u s t r a t e s ,  the value  f o r spruce lumber i n 1953 was $5U.93/M. bd, f t . j i n i960 i t s o l d f o r  32 $50„95s and i n 1965,  the value increased to $59o97<>  Between 1953  30, Master Agreement, Forest Products I n d u s t r i e s , Northern I n t e r i o r Region, B o C , September, 1953, P P o 23=25, 31o Agreement Between the Members of Northern I n t e r i o r Lumberman's A s s o c i a t i o n and I n t e r n a t i o n a l Woodworkers of America, Local l 4 | 2 l i , September 1, 196U to August 31s 1967$ pp.. 32-38. 32, The wages i n d i c a t e d i n Figure 22 r e f e r d i r e c t l y to those paid i n the North Central I n t e r i o r , Higher wage l e v e l s e x i s t e d on the Coast and i n the Southern I n t e r i o r ,  Figure 22  107  Averoqe Value of Interior Spruce Lumber and Basic Hourly Wage in North-central British Columbia, 1950-1966  1950  1955  SOURCES-'  | . Master and  2  the  D.B.S.  I960  Agreements  between  International  Mimeographed  1 9 6 5  Northern Interior  Woodworkers' of  Tables  Lumbermen's Assoc.  America, 1953 - 1 9 6 6 .  (unpublished)  1 0 8  and 1 9 6 5 wages increased by 80 per cent and lumber prices by 10 per cento  The entrepreneurs were caught i n the familiar predicament  of having to increase labour productivity to maintain f a i r returns on their investments, To hold costs i n l i n e , management has reduced the relative importance of the labour input. The introduction of equipment such as automatic debarkers, linebar resaws, shadow-line trimmers and automatic lumber stackers has cut the manpower needed. In the Jacobson operation i n Williams Lake, lumber per s h i f t i n 1950s  2 0  men produced 23 OOO feet of s  i n 1966 that same number of employees 3 3  produced  9 0 , 0 0 0  feet per s h i f t .  The use of automated equipment  in a well-designed plant has permitted a continuous flow through the m i l l .  Consequently, each piece of machinery and hour of labour  achieves i t s f u l l potential.  From log entry to finished lumber,  the economy i n manpower has moved to a l e v e l where there i s l i t t l e 3k  likelihood of further improvement, (c) Provincial Forest Management Policies % Two aspects of the provincial forest policy appear to be influencing the forest industry?  (1) timber supply s t a b i l i z a t i o n and ( 2 ) the introduction  of a close u t i l i z a t i o n policy. 1966,  33»  Although the concept of sustained  Statement by Mr, Harold Jacobson, personal interview, March,  3 4 , Statement by Mr, G, Caine, personal interview, March, 1966 The one area i n the sawmilling process that remains to be automated i s the sorting of lumber,,  0  y i e l d came into effect i n 1 9 h 5 § no guarantee of future timber supplies f o r established operators existed. In 1961, timber supply s t a b i l i zation was introduced.  F i r s t l y , an inventory of the sustained yield  units was taken and allocation of annual allowable cut made to the established operators on the basis of their previous three year's performance. Secondly, bidding practices were changed so that operators who requested the timber sales put up f o r auction were permitted to meet the highest b i d . The completion of the quota allocation and the altering of the bidding system effectively closed the lumber industry i n established areas to new companies. These policies permitted larger capital investments i n individual operations and encouraged the corporate consolidation of the industry. The only avenue open f o r individual expansion now i s the purchase of other quota holders. Table VI i l l u s t r a t e s the changes which occurred i n the number of quota holders i n sustained yield units between 1961 and 1966, Figure 23* Forest Alienation 196lj, locates the units l i s t e d i n Table VIo In nearly every case the number of quota holders has decreased s  substantially.  In the Moberly Public Sustained Y i e l d Unit, the number  decreased from 2li to 2 i n the five-year period. The second management policy influencing the industry i s the promotion of f u l l u t i l i z a t i o n of forest resources,  A close u t i l i z a t i o n  policy which not only provides the basis f o r the substantial pulp m i l l development i n the region, but also influences wood u t i l i z a t i o n throughout the industry,has been developed. The policy i s aimed at  Forest Alienation, 1964. Forest M a n a g e m e n t L i c e n c e s (either a w a r d e d o r r e s e r v e d ) 1.  Eagle  2.  Church Sawmills, Ltd.  5.  Western P l y w o o d , Co.,Ltd.  28 FORT  RIVER  PEACE  ST  JOHN  •  52  Public  28.  Shelley Development,Ltd.  29  Eagle Lake  30.  S i n c l a i r S p r u c e L u m b e r Co., L t d .  31.  Upper Fraser Spruce  34.  Church S a w m i l l s , Ltd.  Sustained  4.  38  Lake Sawmills, Ltd.  -  Babine  44.  Nechako  Valley  50.  Ootsa  11. B l u e b e r r y  51.  lO.Big  51  l5.Burns  Lake  72 18 69 ,  V  STUART LAKE  1J0  I HOUSTON|  OA  40  PRINCE  iSSA  GEORGE, 53  50  \39  Peace  53.  Purden Quesnell Lake  20. Cottonwood  59  Robson  23Crooked  69.  Smiters  28Finlay  72.  Stuart  37. L o n g w o r t h  73.  Stum  38Moberly  74  Takla  4 0 Morice  78.  Westlake  42Narcosli  80.  Williams  43.Naver  8 1  Willow  River  Lake  Lake  River  37  44  ...Other LAKE  Parsnip  52.  55  18. C a r p  23  Mills,Ltd.  Y i e l d Units  13. B o w r o n  74  Sawmills.Ltd.  .13  78  P u b l i c Units -  S.S.A. Special Sale A r e a . ,  V j 59  50  20 55  Source  42 |  R e s o u r c e s , M a p from Forest  LAKE  73  \§0 WILLIAMS  ft  LAKE  B r i t i s h C o l u m b i a , Deportment of L a n d s , Forest and Water  QUESNEL  S e r v i c e Report 1 9 6 4 , e n t i t l e d  1.  " S t a t u e of Sustained - Y i e l d r~"N  Forestry P r o g r a m m e "  i '•> -v.  Ill TABLE V i s  A l l o c a t i o n of Allowable'Cut i n the Prince George Forest Districts: 1961 and 1966 0  ^ Q ^ ^ Sustained Y i e l d Unit  No  M/cu, f t . (as of 1966)  .  3 5 5 1 3 3 10 3 3 8 7 17 . 2U  s  s  ii 283" S  ii,30G  e  3 ooo s  c  3 35Q 3*600 2,000 1,000 5,350 S  9^200  5,Uoo  v  h  7 5 2  lj,000 1,000 1,500 3,810,,  D  11,262".  7,000 3,250  of Licencees  1 9 6 1  3 ooo 3 ooo„.  Big V a l l e y , No<, 1 Big V a l l e y , No„ 2 Blueberry Bowron, No 1 Bowron, No 2 Canoe Carp, No. 1 Carp, No. 2 Carp, No. 3 Cottonwood Crooked River Longworth Moberly Monkman Narcosli Naver, No 1 Naver, No. 2 Naver, No„ 3 Nechako (a new unit) Parsnip Purden Lake Robson Stuart Lake Westlake Willow River  0  "6 .  9  15 7 12 12 10  s  2h  U,ooo  7,5.00  5 ooo 7 ooo  1 9 6 6  6  U  3 1 2  pending'.r  .  6 2 2 2 5 9 2 3  l»  1 6 51 12 5 9 7 9 111  P r i o r i t y systein of a l l o c a t i o n of volume (quota) has not been established pending completion of removal of timber below proposed Mica Creek Dam f l o o d l i n e 0  Annual quota has increased since 196l<, Sources  B r i t i s h Columbia, Department of Lands and Forests, " A l l o c a t i o n of Allowable Cut," V i c t o r i a , B<>CoS Mimeographed l i s t s , 1961 and 1966c :  increasing wood recovery by using small logs and logging residue previously l e f t behind i n the woods, Its success depends upon the establishment of pulp mills and the extension of established logging and sawmilling operators into smallwood u t i l i z a t i o n and chip production.  To achieve these ends, the government has introduced  new forms of tenure, modified stumpage rate schedules, altered freight rates and enforced new standards of utilization,, To encourage the establishment of a pulp m i l l economy, the Provincial Government introduced the pulpwood harvesting area.  The  harvesting areas are confined to public areas which are established as public sustained yield units and administered by the Forest Service, Pulpwood Harvesting Area #3* f o r example, comprises the Bowron, Longworth, Monkman, Purden and Robson Public Sustained Yield Units,  The  licencee of the harvesting area i s entitled only to the wood unsuitable f o r sawmilling. Saw and peeler grade logs are reserved for saw and plywood m i l l s .  The five pulpwood harvesting areas which have been  granted i n the North-Central Interior are shown on Figure 2U,  The  establishment of these harvesting areas has super-imposed a pulp economy upon an existing sawmill economy and yet provided every phase of the industry with i t s raw material needs, A second aspect of the close u t i l i z a t i o n policy i s i t s effect on the sawmilling industry. On January 1, 1966, the f u l l program of the government's policy came into effect.  The new program c a l l s f o r  the calculation of allowable cuts to a 7" diameter as compared to an  Pulpwood Harvesting Areas Awarded, 1966. P.H.A. I  A w a r d e d to P r i n c e G e o r g e P u l p a n d P a p e r C o . , L t d . covers Big Valley, Carp, Crooked River, Nover, Nechako, Parsnip, Stuart Lake, Westlake and Willow River Public Sustained-Yield Units.  FINLAY SUSTAINED  P.H.A. 3  YIELD  A w a r d e d to N o r t h w o o d P u l p C o . , L t d . covers Bowron, Longworth, Monkman, Purden.and Robson  UNIT  Public Sustained-Yield Units. P.H.A.4  A w a r d e d to B u l k l e y V a l l e y P u l p a n d T i m b e r C o . , L t d . covers Babine, Longworth, Monkman.Purden.and Robson Public Sustained-Yield Units.  PH.A. 5  A w a r d e d to C a r i b o o P u l p a n d P a p e r , L t d . covers Narcosli,Cottonwood,part of Stum,and Quesnel Lake Public Sustained-Yield Units and part of an unregulated area.  PHA  7  PH.A.7  A w a r d e d to Intercontinental P u l p , C o . , L t d . , covers Peace and Tokla Public Sustained-Yield Units.  old  standard  o f 11"  diameters«  The  operators  these l o g s w i t h diameters between 7 and l e f t behind.  11 i n c h e s  cut and  sawmiller  of l i t t l e economic value' must now  must now  log  t h a t were p r e v i o u s l y  S c a l i n g p r a c t i c e s have a l s o been changed and  previously considered The  must now  be  trees logged.  handle not o n l y a g r e a t e r volume of l o g s ,  a l s o s m a l l e r diameter l o g s .  but  This requires a c a p i t a l outlay i n  a d d i t i o n a l equipment. The  market demands, l a b o u r demands and  changes i n f o r e s t  management p o l i c i e s have n e c e s s i t a t e d i n c r e a s e d  c a p i t a l investment  i n the f o r e s t i n d u s t r y o f the North C e n t r a l I n t e r i o r , , demands, and the  to a c h i e v e the  g r e a t e s t r e t u r n s p o s s i b l e on  i n d u s t r y has made s e v e r a l responses?  p r o d u c i n g u n i t s , (2) i z a t i o n of The  To meet t h e s e investments,  ( l ) c o n s o l i d a t i o n of  i n t e g r a t i o n w i t h i n the i n d u s t r y and  (3)  the  special-,  functions. market demands f o r a more s t a n d a r d i z e d  and  higher q u a l i t y  lumber product has meant changes p r i m a r i l y i n the p l a n i n g , d r y i n g shipping operations  r a t h e r t h a n i n the i n i t i a l sawing s t a g e s .  i n t r o d u c t i o n of a new  market f o r pulpwood c h i p s has f o r the  time p e r m i t t e d  the l a r g e r o p e r a t i o n s  products.  bush s a w m i l l ,  The  and  The  first  t o s e l l a p o r t i o n o f t h e i r waste  unable t o add  the n e c e s s a r y equipment f o r  the manufacture of h i g h grade lumber p r o d u c t s and  pulpwood c h i p s have  35o RoGo W i l l i s t o n , M i n i s t e r o f Lands, F o r e s t s and Water Resources, "Address t o 56th Western F o r e s t r y and C o n s e r v a t i o n C o n f e r e n c e , December, 1965s" c i t e d i n The T r u c k Logger, X X I I , (January, 1966), p, 31«  gradually had their sawmilling function absorbed by the large-scale integrated sawing/planing plants. The small entrepreneur of the 1950 era has been forced into a non-competitive position. Secondly, r i s i n g labour costs i n a mileu of stable prices have necessitated increased labour productivity for the survival of sawmill operations.  Two basic techniques used to achieve this end have beens  (a) larger-scale of operation, and (b) the use of automated equipment. The size of mills has i n part been dictated by the production rate of the saw machinery. The minimum size of sawmill, f o r example, that can amortize the investment i n a barker and chipper i s one producing 10 to 15 m i l l i o n feet of lumber annually.  The investment i n these  large pieces of heavy machinery dictates a permanent rather than portable m i l l .  Consequently, the sawmill operators have had to r e -  assess their choices f o r the location of lumber production. The capital outlay required f o r pieces of equipment such as planing f a c i l i t i e s , smallwood equipment or chipping and barking machinery can only be j u s t i f i e d as a long-term investment. The s t a b i l i z a t i o n of timber supplies has permitted borrowing and long-term planning within the industry. I f no future guarantee of continued operation had been made, i t i s unlikely that the industry could have  3 6 0 Statements by Mr. C. Pinette, Mr. M. Rustad and Mr. Go Caine indicate that the minimum size of m i l l that can i n s t a l l a barker and chipper i s one producing 10 to 15 m i l l i o n feet of lumber annually. Personal interviews, March, 1966„  116  met the market and labour demands. With long-term planning a p o s s i b i l i t y , the integration of wood conversion from cutting through sawmilling, drying, planing, packaging and sometimes remote warehousing i s a l o g i c a l method of achieving even greater economies.  Savings result from greater management control  over existing capital investment, and from an improved product flow from start to f i n i s h .  These same economies are sought by the pulp  mills by the integration of a l l manufacturing processes. Forest management policy and again economies of production are leading to greater specialization i n the industry. The introduction of smallwood u t i l i z a t i o n i s encouraging the growth of permanent mills which process small diameter logs. These stud or scrag m i l l s , as they are  called, usually mass-produce a single dimension of lumber. The  cutting of either smallwood or large timbers requires equipment which becomes uneconomical i f large volumes of suitable timber are not available.  The new "chip-n-saw" machine, f o r example, handles only 37  a llj-inch diameter of log or less.  Forest management policy has  enforced f u l l u t i l i z a t i o n of resources by a l l conversion plants.  Mills  that are too small to i n s t a l l f a c i l i t i e s f o r the manufacture of waste material are being forced to close. At the same time, u t i l i z a t i o n standards are encouraging the integration of larger units so that the 37.  The B r i t i s h Columbia Forest Industries 1965-66 Yearbook, p. C l l  c  per cent wastage can be lowered i n a l l manufacturing phases. The net structural effect of a l l three factors has been to create a lumber industry i n which a smaller number of operators are producing a greater volume and diversity of lumber products, as well as saleable waste products. Factors encouraging changes i n location,  (a) lumber recovery.  The areal concentration of conversion units summarizes these structural changes. F u l l u t i l i z a t i o n , necessitated by both forest management policies and market demands, has meant that each log transported from the woods contains a decreasing proportion of waste material. This factor has reduced the relative importance of log transportation costs. With the lumber recovery factor at 50=60 per cent during the 193>0 s, i t 8  was economically unfeasible to move logs. I n 1966, eighty per cent or more of the log can be recovered i n saleable products and the additional 38  cost incurred by log transport can be offset.  The introduction of the  heavy duty diesel logging truck i s a second factor permitting the long distance movement of logs. The gas trucks of the early 1950 s had !  prohibited long distance hauling. The combined effect of the higher wood recovery and transportation technology changes has been an increase i n the maximum hauling distance from 15 miles i n 19$k to a 3 8 0 See Chapter 17, p,101 f o r cost differences existing between transportation of lumber as compared to logs.  118 100=*nile distance i n 1966.  39  This increase has permitted the i n t r o -  duction of centralized conversion plants at railhead l o c a t i o n s . (b)  Year-round operations.  To keep the per unit cost of  production as low as possible, the conversion plants of 1966 must operate on a year-round b a s i s .  Locating the m i l l i n an area with  various services such as f i r e protection or r e p a i r services close at hand, lessens the p r o b a b i l i t y of a prolonged closure.  The seasonal  nature of roads i n the North- Central I n t e r i o r i s a second f a c t o r . The flow of lumber from an integrated operation located i n the "bush" i s d i r e c t l y affected by "break-up" i n the spring and "freeze-up" i n the f a l l ,  A centralized m i l l with an inventory of logs i s not  d i r e c t l y affected by the seasonality of trucking s e r v i c e s , (c)  A c c e s s i b i l i t y to timber supplies.  A plant located i n a  centralized p o s i t i o n permits access t o a wide range of forest resources. This i s p a r t i c u l a r l y important f o r specialized operations such as plywood or stud m i l l s which use only a small per cent of any given timber stand.  The m i l l can receive logs from a number of scattered  stands rather than from a single.source.  In addition, the logs can  be sorted and directed to the appropriate manufacturing process. Consequently, the Weldwood plywood plant i n Quesnel draws i t s l o g  39. Estimates given as to the "maximum economic distances logs could be hauled" varied from 60 to 120 miles. The farthest distance logs are being transported known by the author i s 100 miles. More common maximum distances are 75 miles.  119 supply from s i x d i f f e r e n t public sustained y i e l d u n i t s . (d)  Labour S t a b i l i t y and accommodation.  Labour s t a b i l i t y  i s an important f a c t o r favouring urban locations f o r plants. m i l l of the  1950's  The  required neither a large nor s k i l l e d labour f o r c e .  For e f f i c i e n t operation the highly c a p i t a l i z e d sawmill, plywood plant and pulp m i l l of the I960 s need large pools of s k i l l e d labour.  It  11  has become impossible  to engage and r e t a i n s k i l l e d men  i n operations  40 remote from urban centres.  A more stable and dependable labour  force r e s u l t s when employees can l i v e at home with t h e i r f a m i l i e s and enjoy the benefits of an urban l i f e .  In addition to coping with  labour problems, entrepreneurs of outlying m i l l s must provide room and board f a c i l i t i e s f o r t h e i r employees.  The  cost of operating a  cookhouse and bunkhouses has been estimated at $1.00  per M„ bd. f t .  Ill of lumber cut. (e)  An urban l o c a t i o n eliminates these extra c o s t s  Marketing and shipping.  0  F i n a l l y , factors favouring  centralized locations are benefits realized from the marketing and shipping of products.  A railhead l o c a t i o n provides access to a  wider market f o r waste products, namely pulpwood chips, sawdust and 40.  Statement by Mr. H„ Jacobson, personal interview, March  41.  Statement by Mr. C. Pinette, personal interview, March,  1966. 1966.  120 1*2 hog fuelo If a conversion plant is not on the r a i l line or within a few miles of a pulp m i l l , i t is unlikely that chips could be sold profitably.  In addition, the entrepreneur i s able to keep in much  closer contact with wholesalers and is able to f i l l orders more rapidly from a more accessible location.  In view of the competitive  nature of the industry today, this contact is looked upon as a c r i t i c a l factor. The higher recovery of saleable wood products and changes i n transportation technology, together with the need for a year-round operation and a stable labour force offer explanations for the growing areal centralization of conversion plants i n the North Central Interior, Lesser economies realized by the mills from not providing housing f a c i l i t i e s , from gaining access to a wide range of raw materials and from using ancilliary amenities of urban centres (such as electricity, f i r e protection, machinery repair services and tradesmen i n related occupations) have also influenced the entrepreneurs  11  relocate operations.  decision to  It i s suggested that the influence of these  variables w i l l increase i n strength and result in further areal concentration of conversion units  0  ll2. It is probable that some of the pulp mills w i l l be purchasing hog fuel from the sawmills i n the future. Hog fuel is waste material unfit for pulp manufacture. It contains bark as well as wood waste and is used primarily as a fuel, h3o  1966.  Statement by Mr, H, Jacobson, personal interview, March,  CHAPTER V SUMMARY AND CONCLUSIONS  P e r i p h e r a l l y l o c a t e d raw m a t e r i a l s u p p l y  areas respond t o ex-  t e r n a l f o r c e s such as market demands, c a p i t a l s u p p l y and changing economic c o n d i t i o n s . time.  These a r e not u n i f o r m f o r c e s , b u t v a r y  T h e i r t o t a l e f f e c t i s t o change not o n l y t h e r e l a t i o n s h i p o f  the s u p p l y  r e g i o n t o o t h e r p r o d u c i n g and consuming r e g i o n s , b u t t o  i n i t i a t e a gradual w i t h i n the supply As  e v o l u t i o n o f s p a t i a l and c o r p o r a t e r a t i o n a l i z a t i o n region  itself.  g e n e r a l economic c o n d i t i o n s  change, a r e s o u r c e  a d j u s t s u n t i l a new e q u i l i b r i u m i s a t t a i n e d . the  over  industry  I n the f o r e s t i n d u s t r y ,  raw m a t e r i a l s , the b a s i c m a n u f a c t u r i n g p r o c e s s e s and the products  have remained v i r t u a l l y unchanged.  Adjustments i n t h e s t r u c t u r e and  l o c a t i o n o f t h e i n d u s t r y have r e s u l t e d from changing f o r e s t product s u p p l y and demand c o n d i t i o n s , and f r o m changing economic within the region.  conditions  By f o l l o w i n g t h e North C e n t r a l I n t e r i o r through  i t s four b a s i c periods  o f development, i t has been p o s s i b l e t o  i l l u s t r a t e a p a r t i c u l a r s e r i e s of demand changes and adjustments w i t h i n an i n d u s t r y - r e g i o n . B e f o r e 1900, t h e world demand f o r lumber was not s u f f i c i e n t t o stimulate  the development o f a f o r e s t i n d u s t r y i n a remote area  N o r t h C e n t r a l B r i t i s h Columbia.  The timber s u p p l i e s o f the N o r t h  Western S t a t e s , o f c o a s t a l B r i t i s h Columbia and of t h e Southern I n t e r i o r o f the p r o v i n c e  like  were adequate t o meet c u r r e n t  demands.  122 Settlement of the p r a i r i e provinces and the apparent end of a l t e r n a t e supplies of timber changed t h i s s i t u a t i o n and r e s u l t e d i n the establishment of speculative claims on f o r e s t land, together  with  the b u i l d i n g of a few conversion plants i n prime timber areas along the new railway route.  The demand f o r timber products from the  region abruptly halted with the outbreak of World War I , however, and the North Central I n t e r i o r was l e f t r e l a t i v e l y unchanged. The supply and demand conditions d i d not change s i g n i f i c a n t l y during the 1920's and 1930's. The world economy stagnated and major investments of a l l kinds were h a l t e d .  The productive capacity of  the region and abundant resources were u n d e r - u t i l i z e d because of the depressed world demand and alternate supplies i n other timber areas.  I r r e g u l a r plant operation, no speculative c u t t i n g , no  t e c h n o l o g i c a l improvements and r e s t r i c t i o n of the a r e a l spread of operations  constituted the adjustment of the region, t o these  conditions. The second world war and the post war years were characterized by a demand f o r lumber g r e a t l y i n excess of the world productive capacity.  This change i n demand, coupled with i n s u f f i c i e n t i n v e s t -  ment c a p i t a l , labour and equipment f o r the development of large-scale operations, r e s u l t e d i n the rapid expansion of a large number of s m a l l , seasonal producers i n t o a l l accessible parts of the North Central I n t e r i o r . An increasing but d i v e r s i f y i n g demand, the enforcement of  123 s p e c i f i c management p o l i c i e s f o r the u t i l i z a t i o n of f o r e s t resources, and competitive the l 6 0 ' s .  marketing conditions are external forces characterizing  Rising labour costs and the a v a i l a b i l i t y of c a p i t a l f o r  Q  investment have again changed the economic conditions within the region.  The adaptions of the industry have been corporate integration,  the development of large-scale production units, the d i v e r s i f i c a t i o n of production and the areal c e n t r a l i z a t i o n of conversion u n i t s . The evolution of the f o r e s t industry i n North Central I n t e r i o r B r i t i s h Columbia demonstrates several basic p r i n c i p l e s of development and l o c a t i o n .  The trend i n recent years has been f o r industries to be  less s e r i o u s l y affected i n t h e i r l o c a t i o n by the l o c a t i o n of t h e i r raw materials.  The f o r e s t industry-region discussed i n this t h e s i s ,  however, has been t y p i c a l of resource  industries engaged i n the i n i t i a l  extraction and processing of products i n which the raw material procurement costs have remained c r i t i c a l l o c a t i n g f a c t o r s .  That the  f o r e s t industry (and other resource industries i n which the materials lose considerable weight and/or bulk during manufacturing) i s attracted to the s i t e of i t s raw materials was established at the outset of t h i s examination.  Two further generalizations can now be made concerning  the type of development and s p a t i a l pattern which characterize the resource industries located i n raw material supply or resource A d i s t i n c t i o n must f i r s t be made between a resource  industry  located i n a region of balanced economic growth and a resource located i n a resource region.  regions.  industry  In the case of the former the market and  12U  the supply region may be the same area; while i n the case of the l a t t e r the supply and market regions are distinct e n t i t i e s .  It is  evident from this study that the demand factors f o r a resource product which originate within the resource region are not important i n determining the development of that resources. In a l l such cases the demand area i s s i g n i f i c a n t l y larger than the supply area so that national or world aggregate demand looms important. The development of the industry i s , therefore, determined by general economic conditions and the world supply and demand situation f o r the product, and not by regional or l o c a l forces.  This principle has conditioned the develop-  ment of many resource industries, i n particular those connected with the mines, farms and forests.  Thus, in'the North Central Interior  the l o c a l conditions have been influenced by provincial and national developments, which have i n turn resulted from world economic forces. Secondly, a resource region responds to these external forces at a given l e v e l of demand at a given price.  The l e v e l of economic  development within a region i s determined by the capability of resource and factory management to adapt their processes and products so that they can compete at the prevailing price l e v e l .  A l l factors of  technological improvement, corporate adaptations, maximum raw material u t i l i z a t i o n and the development of investment-generating forest management policies i n the 1960's l e d to a situation i n which the North Central Interior could compete. The timing of changes i n price and demand, coupled with the changing economic environment of the  125 region, determine the time at which changes i n industrial location occur. The s p a t i a l pattern i s , therefore, a dependent variable, reflecting the entrepreneur's concept of best coping with changing supply and demand situations. Future adjustments i n both the structure and location of the forest industry i n North Central Interior B r i t i s h Columbia can be expected.  I t i s anticipated that the economic demands presently  influencing the industry w i l l not change i n the immediate future, but that the rationalization of producers and manufacturing processes w i l l continue u n t i l a new equilibrium i s attained. At this point the industry w i l l be highly centralized into a few conversion centres, integrated to a s i g n i f i c a n t l y greater degree, and dominated by a few large corporations.  BIBLIOGRAPHY A.  BOOKS  The B r i t i s h Columbia Forest Industries 1965-66 Yearbook. M i t c h e l l Press Ltd., 1965.  Vancouver?  Conversion Factors f o r P a c i f i c Northwest Forest Products. Washington: I n s t i t u t e of Forest Products, 1957»  Seattle,  E l l i o t , Gordon R. Quesnel, Commercial Centre of the Cariboo Gold Rush. Quesnel, B.C.: Cariboo Observer Ltd., 1956. E s t a l l , R.C, and Buchanan, R.0„ I n d u s t r i a l A c t i v i t y and Economic Geography. London: Hutchinson & Co., 1961. F r i e d r i c h , C.J. A l f r e d Weber's Theory of L o c a t i o n of I n d u s t r i e s . Chicago: U n i v e r s i t y of Chicago Press, 1929. Grain Trade Yearbook. Winnipeg, Manitoba: Stanford Evans S t a t i s t i c a l S e r v i c e , XVII and XXXVI, 1936 and 1951. Guthrie, John A. and Armstrong, George R. Western Forest Industry. Baltimore: The John Hopkins Press, 1961. Haig-Brown, Roderick. The L i v i n g Land. V i c t o r i a , B.C.: Columbia Natural Resources Conference, 1961.  The B r i t i s h  Hardwick, Walter G. Geography of the Forest Industry of Coastal B r i t i s h Columbia. Canadian A s s o c i a t i o n of Geographers, B r i t i s h Columbia D i v i s i o n / Occasional Papers i n Geography, No. 5» 1963. Hoover, E.M. The Location of Economic A c t i v i t y . H i l l , 19ho\ Isard,-Walter. Location and Space Economy. and Sons, Inc., 1956. Losch, Ac  Economies of Location.  New Havens  New York: McGraw-  New York:  John Wiley  Yale U n i v e r s i t y Press, 195h  Lower,:A.R.M. The North American Assault on the Canadian F o r e s t . Toronto: The Macmillan Company of Canada Ltd., 1938. MacGibbon, Duncan A. The Canadian Grain Trade 1931-1951. U n i v e r s i t y of Toronto Press, 1952. M i l l e r , E. W i l l a r d , A Geography of Manufacturing. New Jersey: P r e n t i c e - H a l l , 1962.  Toronto:  Englewood  Cliffs,  Runnals, R.E.  191*6.  A H i s t o r y of Prince George.  B.  Vancouver:  Wrigley Co.,  PUBLICATIONS OF THE GOVERNMENT  B r i t i s h Columbia Department of Lands and F o r e s t s . Annual Report(s) of the Forest Service . V i c t o r i a , B.C.: King's P r i n t e r , 1917-1965. Flann, I.B. "How Sawmill Chips are Moved i n Eastern Canada,'' Forest Products Research Branch, Department of F o r e s t r y , Vancouver, B.C. Contribution No. P - 8 6 , 1961;. McBride, C.F. "Barking and Chipping i n the I n t e r i o r of B r i t i s h Columbia," Forest Products Research Branch, Department of F o r e s t r y , Vancouver, B.C. Contribution No. V-1013. Mulholland, F.D. The Forest Resources of B r i t i s h Columbia, V i c t o r i a , B.C.: King's P r i n t e r , 1937.  1937.  The Pulp and Paper Industry of B r i t i s h Columbia. I n d u s t r i a l Development Department, B r i t i s h Columbia Hydro and Power A u t h o r i t y , Vancouver, B.C., 1966. Sloan, Gordon McG. Royal Commission on the Forest Resources of B r i t i s h Columbia, V i c t o r i a , B.C.:: C.F. B a n f i e l d , P r i n t e r to the King, 19U5. Sloan,-Gordon McG. The Forest Resources of B r i t i s h Columbia, V i c t o r i a , B.C.: Queen's P r i n t e r , 1957 (2 v o l s , ) .  1956. ~  T r a n s c r i p t . Hearings of the Royal Commission I n q u i r y into Forest Resources, V i c t o r i a , B.C., 1957. Whitford, H.N. and C r a i g , R.D. Forest Resources of B r i t i s h Columbia. Ottawa, Ontario: King's P r i n t e r , 1918. C,  PERIODICALS  Bone, Robert M. "A Geographical A p p r a i s a l of the Soviet Forest Resource, The F o r e s t r y C h r o n i c l e, XLI (September, 1965), 3U5-351. Boas, CM.  " L o c a t i o n a l Patterns of American Automobile Assembly P l a n t s , Economic Geography, XXXVII ( J u l y , 1961), 218-230.  1895=1958,"  B r i t i s h Columbia Lumberman, Vancouver, B.C.: Ltd., Volumes XIV, XXVI, XXVII, XXVIII.  Timber Industries Journal  "Bulk Scaling Logs by Weight," B r i t i s h Columbia Lumberman, L, (February, 1 9 6 6 ) , 2 0 - 2 4 .  Clevinger, W.R. "Locational Change i n the Douglas F i r Industry," Yearbook of the Association of P a c i f i c Coast Geographers, XV, 1953,  23-31.  Dinsdale, E.M. " S p a t i a l Patterns of Technological Change: The Lumber Industry of Northern New York," Economic Geography, XXXXI (July, 1 9 6 5 ) , 252-274. Erickson, K.A. "Isochrons of Logging on the P a c i f i c Slope of Oregon, 1890-1940," Yearbook of the Association of P a c i f i c Coast Geographers, XIX, 1 9 5 7 , 19-24. "Fort S t . John Lumbert Amazing Growth of a Bush M i l l , " Logger, XXII (January, 1966), 8 0 - 8 3 .  The Truck  Fulton, M„ and Hock, L. "Transportation Factors A f f e c t i n g Location Decision," Economic Geography, XXXV "(January, 1959)* 51-59. Karan, P. "Changes i n Indian I n d u s t r i a l Location," Annals of the Association of American Geographers, LIV (September, 1964), 336-354. Harris, C. "The Market as a Factor i n the L o c a l i z a t i o n of Industry i n the United States," Annals of the Association of American Geographers, XLIV (December, 1954), 3 1 5 - 3 4 8 . Hunter, Helen. "Innovation, Competition and Locational Changes i n the Pulp and Paper Industry, 1 8 8 0 - 1 9 5 0 , " Land Economics, XXXI (November, 1 9 5 5 ) * 314-327.  Linge, G J.R. Zealand," 0  "The D i f f u s i o n of Manufacturing i n Auckland, New Economic Geography, XXXIX (July, 1963), 2 3 - 3 9 .  Lonsdale, R.E. "Siberian Industry Before 1 9 1 7 J The Example of Tomsk Guberviya," Annals of the Association of American Geographers, LIV (December, 1963), 4 7 9 - 4 9 3 . ~ Lumberman and Contractor, Vancouver, B.C»: Business Publications of B.C., Volumes I I I (June, 1 9 0 6 ) and IV (June, 1 9 0 7 ) . Pred, A, " I n d u s t r i a l i z a t i o n , I n i t i a l Advantage and American Metropolitan Growth," Geographical Review, LV (February, 1 9 6 5 ) * 158-185.  Pred, A. "The Intra-Metropolitan Location of American Manufacturing," Annals of the Association of American Geographers, LIV  (June, 196U), 165-180.  Rogers, H.B. "The Changing Geography of the Lancaster Cotton Industry," Economic Geography, XXXVIII (October, 1962), 299-311*. Stafford, H.A. Industry,"  "Factors i n the Location of the Paperboard Container Economic Geography, XXXVI (July, I960), 260=67.  Stokes, Evelyn. "Kauri and White Pine: A Comparison of New Zealand and American Lumbering," Annals of the Association of American Geographers, LVI (September, 1966), i4llO-li50. Western Lumberman, Vancouver, B.C.: Business Publications of B.C., Volumes VII ( A p r i l , 1910), XII (January, 1915),"XIII (July, 1916), XIV (February, June, September, 1917), XVI (March, 1919) and XVIII ( A p r i l , 1921). W i l l i s t o n , R.G., Minister of Lands, Forests and Water Resources. "Address to the 56th Western Forestry and Conservation Conference, December, 1965," The Truck Logger, XXII (January, 1966). Yardly, R.K. "Truck-Mounted Arches i n B r i t i s h Columbia Northern Interior," B r i t i s h Columbia Lumberman, LIV (November, I960),  25-26.  D.  UNPUBLISHED MATERIALS'  "Agreements Between the Members of the Northern I n t e r i o r Lumbermen's Association and International Woodworkers of America, Local I-I42I4," Prince George, B.C., September 1, 1953? 195h, 1 9 5 6 , 1958,  I 9 6 0 , 1962,  196lt,  1965.  B r i t i s h Columbia Department of Lands and Forests. " A l l o c a t i o n of Allowable Cut i n Public Sustained Y i e l d Units as of November, 1961 and January, 1966," Prince George, B.C. (Mimeographed). B r i t i s h Columbia Department of Lands and Forests. " C i r c u l a r Letter to a l l Timber Sale Licencees; Re: Close U t i l i z a t i o n Policy, 1966," V i c t o r i a , B.C. (.Mimeographed). B r i t i s h Columbia Department of Lands and Forests. "Forest Management Report, Fort George Forest D i s t r i c t , " V i c t o r i a , B.C., 1 9 2 5 . B r i t i s h Columbia Department of Lands and Forests. "Sawmills and Planing M i l l s by Ranger D i s t r i c t , " V i c t o r i a , B.C., 1955 and 1961*. (Mimeographed).  "Commodity, Application and Rates i n Cents per 100 l b s . : Re:: Wood Chips f o r Manufacture and Reshipment v i a Canadian National Railway," T a r i f f Bureau, Canadian National Railways, February, 1966. (Mimeographed). "A Counter Proposal t o the Honourable R.G. W i l l i s t o n , Minister of Lands, Forests and Water Resources, Province of B r i t i s h Columbia f o r the Establishment of a Pulp M i l l i n the V i c i n i t y of Quesnel," Cariboo Pulp and Paper Co. Ltd., December, 196h. Dominion Bureau of S t a t i s t i c s . Price l i s t of Lumber i n B r i t i s h Columbia, 1915-1962. (Mimeographed). Francis, R.J. "An Analysis of B r i t i s h Columbia's Lumber Shipments." Unpublished Master's Thesis, the University of B r i t i s h Columbia, Vancouver, B.C., 1961.' Lawrence, J . "Markets and C a p i t a l : A H i s t o r y of the Lumber Industry of B r i t i s h Columbia, 1778-1952," Unpublished Master's t h e s i s , the University of B r i t i s h Columbia, Vancouver, 1957. "Logging F e a s i b i l i t y Study of the Fraser Lake-Francois Lake Area f o r the International P a c i f i c Salmon Fisheries Commission," Gormely Forest Services L t d . , Vancouver, B.C., 1966. Munro, G.R. "The History of the B r i t i s h Columbia Lumber Trade, 1920-19li5>" Unpublished Bachelor's Thesis, the University of B r i t i s h Columbia, Vancouver, 1957. Paul, N.V. " P a c i f i c Great Eastern Railway Company Wood Chip Commodity Rates," P a c i f i c Great Eastern Railway, Prince George, B.C., March,  1966.  Proceedings of Public Hearings i n "The Matter of the Proposal Made by Canadian Forest Products f o r a Pulpwood Harvesting Area t o Include the Following Public Working Circles or Sustained Y i e l d units i n the V i c i n i t y of Prince George, namely: Parsnip, Crooked River, Carp, Stuart Lake, Mechato, Westlake, Naver, B i g V a l l e y , Willow River," Prince George, B.C., November 22, 1962. Proceedings of Public Hearings "In the Matter of the Proposal Made by Northwood M i l l s L t d . f o r a Pulpwood Harvesting Area to Include the.Following Working Circles ar Sustained Y i e l d Units i n the V i c i n i t y of Prince George, namely Monkman, Purden, Longworth, Bowron, Robson, Canoe," Prince George, B.C., May, 196lu (Mimeographed). Pulpwood Harvesting Area No. 1 Agreement between the Minister of Lands, Forests and Water Resources and Prince George Pulp and Paper Co. Ltd.," V i c t o r i a , B.C., November, 1962. (Mimeographed).  E,  PERSONAL INTERVIEWS  Caine, R.G., President and Manager, Merton Lake Lumber Co George, B.C., March, 1966,  n  Ltd,, Prince  Dressier, H,C,, Manager, A„L, Patchett & Sons L t d . , Quesnel, B C , March, 1966. 0  0  Dybhavn,"R., Manager, Strom Enterprises Ltd., Prince George, B.Cj, March, 1966. Gallagher, R.J„, Manager, Northern Interior Lumbermen's Association, Prince George, B.C„, March, 1966. Hamilton, T., Forest Ranger, Department of Lands and Forests, Williams Lake, March, 1966. Jacobson, H,M,, General Manager, Jacobson Brothers Forest Products L t d , , Williams Lake, B.C., March, 1966, Keefe, R,, Forest Ranger, Department of Lands and Forests. Quesnel, B.C., March, 1966. K i l l y , Ivor., President and Manager, Ferguson Lake Sawmill Ltd,, Prince George, B.C., March, 1966. Moore, D., Chip Buyer and Quality Control, Prince George Pulp and Paper Co, L t d , , Prince George, B.C. March, 1966. Pinette, C , General Manager, Pinette & Therrien Planer M i l l s L t d . , Williams Lake, B.C., March and August, 1966, Rustad, M., President and Manager, Rustad Planing M i l l s L t d , , Prince George, B.C., March, 1966. S t e r l i n g , W„, Manager, Cariboo D i v i s i o n of Weldwood of Canada L t d , , Quesnel, B.C., June, 1966,  

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