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PUBLIC INQUIRIES ACT (BRITISH COLUMBIA) REPORT OF THE COMMISSIONER The Honourable Gordon McG. Sloan,… British Columbia. Legislative Assembly 1946

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 PUBLIC INQUIRIES ACT
(BRITISH COLUMBIA)
REPORT OF THE COMMISSIONER
The   Honourable   Gordon   McG.  Sloan,   Chief Justice  of   British  Columbia
relating to
The Forest Resources
of British Columbia
1945
VICTORIA, B.C.:
Printed by Charles P. Banfield, Printer to the King's Most Excellent Majesty.
1945.  To His Honour the Lieutenant-Governor of British Columbia:
Sir,—Pursuant to the powers contained in the " Public Inquiries
Act," chapter 131 of the " Revised Statutes of British Columbia, 1936,"
and in accordance with your Order in Council dated the 31st day of
December, A.D. 1943, a Commission issued under the Great Seal of the
Province, appointing me a sole Commissioner to inquire into and report
upon the certain matters therein set out.
The inquiry has been completed and I respectfully submit this report.
I have the honour to be,
Sir,
Your obedient servant,
GORDON McG.  SLOAN,
Commissioner.
December, 1945.  TABLE OF CONTENTS.
Page.
Scope of Commission       7
Introduction      8
Economic Value of the Forest Industries     10
Forests of British Columbia     15
Forest Distribution     19
Land Classification     20
Forest Resources    29
Depletion     32
Depletion by Cut     32
Depletion by Fire     33
Depletion by Insects '.     33
Total Average Annual Depletion     33
Allowable Cut on Coast     34
Depletion in Interior     41
Utilization    43
Logging Waste    43
The Ladysmith Experiment    47
New Grades for Salvaged Material     48
Market for Logging Waste    49
Sawmill-waste     50
Wood Preservatives     52
Conversion Plants     53
Sawmills     53
Portable Mills     59
Pulp and Paper Plants     65
Hemlock :     60
Land Ownership     77
Provincial Forest Reserves     84
Forms of Tenure     86
Historical     86
Crown Grants     89
Timber Leases     91
Pulp Leases     93
Timber Licences     93
Pulp-wood Licences..   -     96
Special Forms of Licences     96
Timber Sales     97
Pulp-wood Timber Sales     97
Summary     98
Log Exports     98
Forest Finance  104
Administration  119
Summary of Present Position  125
Future Objectives  127
Means to accomplish Objectives :  128
Fire-protection *  129
Financing Fire-protection  132
Slash-burning  135
Snag-falling  137
Closures  138
Expenditures suggested  139
Regulation of Logging Methods  140
Planting of Denuded Areas  142
New Systems of Tenure  143
Taxation of New Tenures  145 TABLE OF CONTENTS.
Means to accomplish Objectives—Continued. Page.
Working-circles  146
Future Forest Administration  149
By Commission  149
Commission Finance  151
Commission Personnel  151
Forest Service and the Commission  153
Appeals from Commission  154
Education  155
Research  157
Forest-cover and Water Run-off  159
Irrigation  160
Salmon-streams  160
Problems of the Interior  162
Reserving Contiguous Areas  162
Ten-per-cent. Deposit  163
Box-shooks  163
Range Encroachment and Overgrazing  164
Decadent Stands  165
Scaling System .  166
Interior Administration  168
Miscellaneous Subjects  168
Market Extension  168
Salmon-streams  169
Hardwood Planting  171
Log-scale  172
E. & N. Railway Company  173
Parks Administration  185
Conclusion  188
Appendix  189 FOREST INQUIRY
REPORT OF THE COMMISSIONER
The purpose and scope of the inquiry is set forth in the terms of the
Commission, as follows:—
Whereas it is desirable in the public interest to cause an inquiry to be
made into all phases and aspects of the forest resources in the Province and
the legislation relating thereto and the policy followed in its administration:
And whereas, under section 3 of the " Public Inquiries Act," being chapter 131 of the " Revised Statutes of British Columbia, 1936," it is provided
that whenever the Lieutenant-Governor in Council thinks it expedient to
cause inquiry to be made into and concerning any matter connected with the
good government of the Province or the conduct of any part of the public
business thereof, the Lieutenant-Governor in Council may, by commission
intituled in the matter of the said Act and issued under the Great Seal,
appoint a sole Commissioner to inquire into such matter:
And whereas His Honour the Lieutenant-Governor, by and with the
advice of his Executive Council, hath deemed it expedient to appoint a sole
Commissioner to inquire into the following matters, namely:—
The forest resources of the Province and all matters generally relating
to or connected with the forest resources of the Province, including, but not
limiting this reference to, the following subjects:—
(1.)  The extent, nature, and value of the forest resources;
(2.)  The conservation, management, and protection of these resources;
(3.)  The establishment of forest yield on a continuous production basis
in perpetuity;
(4.)  Forestation and research;
(5.)  Forestry education and instruction;
(6.)  The utilization of the forest crop and its relationship to employment and social conditions;
(7.)  The use and management of forest and wild lands for parks, recreation, grazing, and wild life in relation to forest administration;
(8.)  The relationship of the forest to soil conservation;
(9.) The maintenance of an adequate forest-cover with a view to the
regulation of moisture run-off and the maintenance of the levels of
lakes and streams;
(10.)  Forest finance and revenues to the Crown from forest resources;
(11.)  Acquisition of rights to forest lands and timber and the tenure of
such rights, including existing rights and tenures, and the extent
to which adequate and proper exercise of the rights thereunder is
now made;
(12.) Legislation and the amendment thereof;
(13.) The relevant facts in relation to any matter that in the opinion of
the Commissioner it is necessary to inquire into in order to carry
out effectually the duties imposed upon him herein.
Now know ye therefore, that reposing every trust and confidence in
your loyalty, integrity, and ability, We do by these presents, under and by
virtue of the powers contained in the said " Public Inquiries Act" and in
accordance with an Order of the Lieutenant-Governor in Council, dated the Q 8 BRITISH COLUMBIA.
31st day of December, A.d. 1943, appoint you, the Honourable Mr. Justice
Gordon McG. Sloan, Puisne Justice of the Court of Appeal for British
Columbia/1' a sole Commissioner to inquire into the matters aforesaid.
And we direct you the said Commissioner to report in writing the facts
found by you to Our Lieutenant-Governor of Our said Province immediately
or as soon as conveniently may be after you shall have concluded such inquiry.
The Commission sat for one hundred and eleven days and sessions
were held at Vancouver, Victoria, Prince George, Kamloops, Vernon,
Kelowna, Penticton, Nelson, and Cranbrook. The sworn testimony of
293 witnesses (for a list thereof see Appendix) was recorded in approximately 10,700 pages of transcript, while the submissions of counsel and
others covered an additional 1,200 pages.    There was received in evidence
562 exhibits.
INTRODUCTION.
Confronted with this great mass of material, I am reminded of the
quandary in which the late Robert Benchley, the American humourist,
found himself when attempting to solve the problem of how to teach a
bird to roll over.    The initial difficulty was how to begin.
As this inquiry is one relating to forestry in all its aspects, the logical
beginning would seem to be to consider: What is a forest? To the uninitiated, the simple answer would be that a forest is an aggregation of trees;
but that is somewhat of an understatement. The true definition of a
forest, akin to the definition of beauty, depends to a large degree upon the
eye of the beholder.
To the early pioneer, the farmer, and the rancher it was an undesirable encumbrance to be removed so that the soil upon which it grew
might be put to agricultural pasturage and grazing uses. The years have
brought a close integration of agriculture and forestry to the benefit of
both. To the lumberman the forest is so much wood to be harvested for
manufacture into lumber; to the pulp and paper maker it is a cellulose
factory; to the fruit and vegetable growers in the Interior of the Province
it is the source of their box-shooks and a vast sponge which holds and
controls the water run-off so vitally essential to the irrigation schemes
upon which the orchards and farms depend for their continued existence.
Without irrigation the Okanagan Valley would be a semi-arid desert and
irrigation depends upon a forested watershed. To this must be linked
the maintenance of water-levels in the hundreds of small streams up which
the salmon make their way to the spawning-beds. The hydro-electric
engineer also sees a forest in terms of watershed protection and the prevention of wind and water erosion. The forest is, in truth, the " Mother
of Waters." To the trapper the forest is the home of the fur-bearing
animals upon which his livelihood depends; and to the hunter, fisherman,
and tourist the forest offers sport and recreation. The tired and troubled
mind seeks rest and solace in its quietude and from the tranquil beauty
of its shadowed lakes finds peace and strength. The forest engineer
thinks of a forest in terms of silviculture, management and forest conservation, protection, and regeneration.    The forest as a source of lumber
(1)  Note by King's Printer—Since appointed The Chief Justice of British Columbia. FOREST INQUIRY. Q 9
for our homes and of wood fuel for cooking and warmth needs no elaboration. The economist, balancing all the multiple uses of the forest and
the public benefits flowing therefrom, realizes that it is the broad base
upon the continuance of which depends the prosperity and high standard
of living of this Province.
One has only to stop to think for a moment to understand how dependent we are upon the use of wood and wood products in our daily existence.
I remember that some one in the United States Forest Service, without
exhausting the list, but probably his patience, noted over 4,500 commercial
and industrial uses for wood, ranging from the heaviest structural timbers
to sheer rayon. (Incidentally, 1,000 board-feet of wood can be converted
into 14,000 pairs of rayon stockings.) Truly we are surrounded by, and
dependent upon, its manifold forms from birth to death; from the wooden
cradle to the wooden coffin. The paper upon which these words are
printed was once a tree. If the reader will tear the corner from this
page and hold it to the light he will see, on the torn edge, fine hair-like
filaments. These are the cellulose fibres extracted from the wood of that
tree.
How can one then encompass within the framework of a definition the
real meaning of a forest? This much is true: the forests of this Province
exercise an incalculable influence, directly or indirectly, upon almost every
branch of our Provincial economy, and on our way of life.
Then, too, a forest is not merely a haphazard aggregation of trees.
It is a living, organic, biological group of plant life in which the individual
trees are constantly assisting each other or competing against each other.
That inter-relationship is so finely balanced that to cut a single tree in a
virgin forest sets in motion a train of events affecting the group. As
Professor Baker(1) expresses it:—
" Conditions of light are at once changed, the sun gets down to the forest
floor and heats up the soil and litter and the lower layers of air, night radiation to the sky is freer and frosts become more damaging, the rainfall reaches
the ground with less interception, evaporation from the surface soil increases,
wind sweeps in a little more freely, soil texture may not be directly or immediately affected, but, as will appear, it—as well as the soil nutrients—may
soon be indirectly affected. Changes in these factors may easily affect forest
shrubs and herbs, the food plants of many birds and animals of the forest,
insects find a new development of foods and of breeding conditions, and so do
fungi. If slash is left on the ground, the intensity of fire, if one occurs, is
changed. In a word, the cutting of a single tree initiates a series of changes
that can logically be followed into every factor of the environment, directly
and indirectly affecting all the life processes of the forest."
Thus it appears that a forest is a complex, highly integrated group of
living trees, and like all living things, they progress through a life cycle
from youth to maturity and to old age and death. Like all living things
they too reproduce their kind, and our basic, fundamental, and vital forest
problem, in this Province, is to see to it that our forests are perpetuated
for  the   use,   profit,   and   pleasure of  our  future  generations.    If  we
(1)   The Theory and Practice of Silviculture   (1934). Q 10                                               BRITISH COLUMBIA.
fail in this objective then the economic future of British Columbia will,
indeed, present a very dark and dismal picture.    Fortunately it is not too
late to plan now for the future, but the sands are running out and the
time is now upon us when the present policy of unmanaged liquidation of
our forest wealth must give way to the imperative concept of a planned
forest policy designed to maintain our forests upon the principle of sustained yield production.    Our forest land must be regarded as the source
of renewable forest Crops and not as a mine to be exploited and abandoned.
THE ECONOMIC VALUE OF THE FOREST
INDUSTRIES.
It is, I think, an impossible task to assess to any precise sum of dollars
and cents, or in terms of exact percentage, the contribution from our
forests to our total Provincial wealth.
The following table, showing the comparison between net value of
primary and secondary forest production and total production in the
Province, 1930-39, is reproduced hereunder, but there are many indirect
values arising solely from logging and lumbering and secondary industries
not included therein, such as power, manufacture and sale of logging
equipment, transportation, camp supplies, and such like:—
ESTIMATED  NET VALUE  OF PRIMARY AND  SECONDARY FOREST  PRODUCTION  IN
BRITISH  COLUMBIAd)   AND   COMPARISON  WITH  TOTAL  NET  VALUE  OF  ALL
PRODUCTION FOR THE YEARS 1930-39, INCLUSIVE.
Year.
Estimated Net Value
of Primary and
Secondary Forest
Production in British
Columbia.
Estimated Net Value
of Total Production
in British
Columbia. (2)
Per Cent, of
Forest Products
of Total Production in British
Columbia.
1930           	
$70,006,320
43,319,941
42,203,545
32,720,585
46,232,451
45,872,885
60,014,008
70,999,778
66,294,724
69,607,738
$277,213,682
199,205,149
151,873,646
159,066,141
171,932,118
179,079,123
216,363,724
254,903,021
246,404,547
256,781,477(4)
25.25
21.75
27.79
20.57
26.89
25.62
27.74
27.85
26.90
27.11
1931             	
1932                --
1933                	
1934     	
1935  _  	
1936    	
1937    	
1938         	
1939 (3)	
(1) Includes Yukon and Northwest Terr
(2) Canada, Dominion Bureau of Statistic
(3) 1939 Statistics subject to revision.
(4) Canada, Dominion Bureau of Statisti
given  in  1942  Year Book).
The generally accepted pc
aspects to total Provincial pro
before me does not contain an;
which that figure rests, except t<
the ratio which the annual pr
production of the four major
tories.
s; Canada Year Bool
es, Survey of Produe
rrcentage of f
duction is 40
t amplified ext
) the extent of
oduction of th
natural resou
s, 1933-42.
ion in Canada, 1940   (
orest productio
per cent., but 1
Sanation of the
indicating that
e forest bears
rces of the P
revision of figure
n in all its
;he evidence
basis upon
.hat is about
to the total
rovince, i.e., FOREST INQUIRY. Q 11
forests, mines, agriculture, and fisheries.    In 1944 these production figures were as follows:—
Forest production (gross value)  $146,611,000
Mineral production  (gross value) .       54,500,000
Agricultural production (gross value)       97,737,000
Fisheries production (gross value)      34,900,000
Such a comparison, however, ignores relevant factors and is not an
accurate expression of the true relationship of the wealth produced by
the forest industry to the total wealth production of the Province. To
hazard an opinion, I would estimate that, in general terms, the wealth
produced by processes of extraction and conversion of logs into final
manufactured form accounts for at least one-third of the total production
of the wealth .of this Province.
This same general result may be reached by another avenue of
approach. As a rough estimate it may be said that the full-time work
of eight men for one year is required to produce one million feet of finished
dried lumber. Each of these workers has, on the average, 1.3 dependents.
Therefore, 18 people are directly supported by the production of the one
million feet of lumber. To take care of the various wants of this group
of 18, another 12 are employed as doctors, lawyers, storekeepers, school
teachers, telephone operators, bus-drivers, and so on. This service group
also has dependents totalling about 28. The " wooden dollar " has therefore found its way from that million feet of lumber into from forty to
forty-five pockets. When we add to this list persons engaged in transporting, remanufacturing, and retailing this unit of production the monetary value thereof is more widely spread and will directly benefit at least
one-third of our population.
Turning to the industry itself, we find the gross value of the 1934-44
production (including loading and freight within the Province and the
value contributed by the wood-using industries) to be as follows:—
1934  -,  $45,461,000
1935      56,941,000
1936 „_-    72,010,000
1937    80,872,000
1938<D      67,120,000
1939      88,221,000
1940   102,804,000
1941   119,920,000
1942   124,720,000
1943   118,434,000
1944   146,611,000
I propose to select the year 1942 as basic, as it is for that year
relevant statistical information has been compiled for the use of the Commission. In that year, with a gross production of nearly $125,000,000,
the primary industries amounted to over 1,600 logging operations supplying logs to 638 primary manufacturing plants. These 638 conversion
units were 551 sawmills, 4 large ply-wood plants, 76 shingle-mills, and
7 pulp and paper mills.
(1)  Production in 1938 was curtailed due to extreme fire-hazard. Q 12 BRITISH COLUMBIA.
The secondary wood-using industries in 1942 totalled 198 establishments producing a wide range of manufactured articles for the domestic
and export markets.
The capital invested to produce this wealth amounted to, in 1942,
$154,112,211. This sum is approximately 45 per cent, of the total amount
of capital invested in manufacturing enterprises in the Province in that
year ($340,609,179) and did not include the investment in timber in private ownership which amounts to, in round figures, 100 billion board-feet.
A rough calculation would give this timber a value of between $200,000,000
to $250,000,000. Thus the forest industries had, and have, an over-all
investment amounting to at least $350,000,000.
Direct employment in the forest industries in 1942 averaged 31,686
persons for the twelve-month period and direct wages and salaries paid
during that time amounted to $958,677,053. Indirect employment in necessary and resultant auxiliary services dependent upon those industries
would increase that sum to an unknown but substantial amount. The
average hourly wages paid in 1942 by the forest industries appear on the
following graph:— FOREST INQUIRY.
Q 13
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BRITISH COLUMBIA.
Production costs in 1942, excluding taxes, but including value of
stumpage cut, wages and salaries, fuel, material and supplies, depreciation,
amortization, interest and carrying charges, towing and scaling, is estimated, by industry, at more than $114,000,000. Of that sum, local producers of agricultural products received a substantial share and of the
supplies and equipment purchased by the industry much of it was supplied
by local dealers.
The domestic market can, of course, absorb only a relatively small
percentage of the tremendous volume of logs, lumber, and pulp and paper
products produced in this Province. The balance is exported to other
Canadian Provinces and to Empire and foreign markets. In 1939 wood
and wood products found a market in sixty individual countries, and in that
year 39 per cent, of all tonnage moving through the Port of Vancouver was
products of our forests.
Exports of wood, wood products, and pulp and paper to other Canadian Provinces and to foreign markets for the years 1939 to 1942,
inclusive, were as follows:—
Exports.
1939.
1940.
1941.
1942.
$10,465,738
57,951,088
$11,950,731
70,026,598
$16,572,658
79,970,695
$21,806,382
73,105,466
Totals  	
$68,416,826
$81,977,329
$96,543,353
$94,911,848
Average annual export to Canadian Provinces  $15,198,877
Average annual export to foreign markets    70,263,461
Percentage of average production exported— Percent.
Canadian Provinces  17
Foreign markets   83
Of the total export from Canada of wood and wood products and pulp
and paper products, British Columbia's production thereof, in a normal
year (1939), is the following relative percentages:—
Per Cent.
Wood and wood products (exclusive of pulp and paper) —
Canadian export   100.00
Originating in British Columbia     60.97
Pulp and paper—
Canadian export   100.00
Originating in British Columbia       7.63
The annual value of exported wood, wood products, and pulp and
paper totalled in 1939 about 53 per cent, of the value of all British Columbia exports. The foregoing facts establish that beyond any question the
forest industries of the Province play a tremendous and important part,
not only in the Provincial, but in the national economy. In the over-all
picture it is no exaggeration to say that, next to agricultural crops, forest
crops have contributed more to the general public welfare than any other
national natural resource. Agriculture and forestry both deal with renewable crops, utilizing the fertility of the soil for the production of raw
material.    True, the time factor of forest crop rotations must, in the FOREST INQUIRY. Q 15
nature of things, differ widely from the annual rotation of the wheat-crop,
but if our forest heritage is to be preserved instead of destroyed we must
think of forest production in terms of renewable crops, not only for the
growing of wood, but for the perpetuation of all those manifold benefits
which the forest has bestowed upon mankind.
The future existence of our forest industries depends upon the intelligent management of our forest land to ensure its continued productivity.
No industry that continues to deplete the source of its own raw material
can hope to survive without providing for the future replenishment of that
material.
The vital necessity of continued forest-cover to the public welfare
and the importance of the forest industries to our economic structure
demands that, in the National and Provincial interest, our forests be
perpetuated.
THE FORESTS OF BRITISH COLUMBIA.
In relation to our forests three important questions may be asked:
What is our present position? What is our future objective? How are
we to attain that objective? The answer to these questions necessarily
involves the consideration of many factors and an exhaustive discussion
of all or any would require the compilation of a report of many volumes.
Incidentally, the evidence relative to these three questions and related
topics covers twenty-seven typewritten volumes of transcript. It will,
I think, suffice for the present purpose if I endeavour to highlight the main
peaks, although I realize in so doing there is the ever-present danger of
over-simplification of many important issues.
There is implicit in the first question a primary inquiry relative to the
present inventory of our forest resources, but before embarking upon those
troubled waters it is required that some general facts concerning the
topography of the Province be recorded. This is so because in an area as
large as British Columbia (366,255 square miles) many environmental
circumstances affecting the forest-cover are encountered.
The mainland of the Province has as its chief topographic features
a series of more or less parallel mountain ranges and valleys extending,
generally speaking, in a north-westerly direction. The eastern boundary
is the Rocky Mountain system. Westward lies a great glacial trough
extending for 800 miles, known as the Rocky Mountain Trench. Westward of this again are the Selkirk, Monashee, Cariboo, and Stikine Ranges.
West of these mountain ranges is a central plateau which is, however, not
all table-land, but eroded and dissected. Elevations range on the plateau
from 3,500 to 5,000 feet above sea-level and in the valleys from 1,000 to
2,000 feet. Travelling to the west we come upon the Cascades and Coast
Ranges which, averaging 6,000 to 7,000 feet, divide the Interior from the
Coastal belt. The Coast Mountains in this Province are considered by
orographologists a continuation of the Cascades northward from the lower
4 Q 16 BRITISH COLUMBIA.
Fraser Valley. There is little, if any, Coastal plain lying to the west of
the Coast Range.
In the Pacific Ocean, off the Coast, lie the two main islands, Vancouver
and the Queen Charlotte group. The mountains on these islands are the
northward extension of the Coast Range of Oregon and Washington.
Fronting as it does on the Pacific Ocean, the geographical location of
the Province with eleven degrees of latitude between its north and south
boundaries, and with the consequential climatic attributes characteristic to
its location, coupled with those distinctive topographical features I have
described, results in the creation of alternate wet and dry belts. The prevailing winds, moisture laden, sweeping inland from the sea, precipitate
the greater part of this as they reach the Coastal belt and then, travelling
inland and deriving moisture from the evaporation of the inland land
masses, precipitate this moisture as they reach the eastern mountain
systems.(1)
West of the Coast Mountains the rainfall ranges from 40 inches in
the south to 140 inches in the north. This moisture, coupled with a mild
even temperature resulting from the effects of the Japan Current, creates
an environment that is productive of the most important forests in the
Province.
East of the Coast Mountains the southern precipitation ranges from
10 to 15 inches, while 25 to 30 inches is recorded in the northern areas of
the Interior. This relatively light precipitation in the areas east of the
Coast Range, in combination with extremes of temperature, produces
much lighter forest-cover, varying from semi-arid types in the valleys to
more dense but low-grade forests on the higher elevations. The heavier
precipitation again encountered on the western slopes of the eastern mountains (from 40 to 60 inches) creates more favourable growing conditions
and forests resembling those of the Coast result therefrom, but because of
greater temperature variations growth is retarded.
The Coast Range is, in reality, the boundary-line separating two distinct and separate forest areas generally described as the " Coast" and
" Interior." The accompanying diagram indicates that broad division.
While these two great areas present some problems in common, many questions peculiar to each have arisen and must be dealt with separately.
Even the common problems—for example, the perpetuation of the milling
industry—call for distinctive treatment due to the completely dissimilar
climatic and other relevant conditions creating and affecting these problems.
NORTHERN FORESTS.
The great northern forests extending across Canada continue into
•the northern portion of the Interior Plateau, drained principally by the
Peace and Liard Rivers.    Approximately 67 million acres lie in unorganized territory and outside the boundaries of any forest district.    Approxi-
(1) "Forests and Water in Light of Scientific Investigation," 1927. Zon estimates that only 7 per
cent, of all water evaporated from oceans enters into precipitation over land and that 78 per cent, of all
precipitation that falls over the peripheral land area is furnished by the area itself. Geographic Branch  o. c.
17 FOREST INQUIRY. Q 19
mately 11 million acres, or about 16 per cent, thereof, is productive forest
land. This productive land area is restricted to narrow valley-bottoms
and the tree species—spruce, hemlock, and lodgepole pine—grow in narrow
fringes along rivers, streams, and watercourses. Because of the remoteness of the area and high logging costs, the products of these forests must
find an outlet in limited local consumer markets until perhaps the future
develops wood uses that would render it economically practicable to harvest
and transport this crop to more distant conversion units. The evidence
before me touching upon this northern area is of a very sketchy character
and does not support any conclusions of value. Future possibilities for
the supply of raw material from this area for pulp and paper manufacture
is probably indicated.
FOREST DISTRIBUTION.
The forest-cover of the Coast area, reflecting the effect of its growing
environment, is composed of four main species—Douglas fir, western hemlock, western red cedar, and silver or balsam fir. A small addition is made
up of yellow cypress, white pine, and spruce.
On the southern mainland coast and on the southern and eastern areas
of Vancouver Island, Douglas fir is the predominating species up to elevations of about 2,000 feet. If there were a mountain near Vancouver with
a gently ascending slope, the climber would find as he progressed upwards
that beyond the 2,000-foot line a gradual change in the forest species was
encountered. He would notice the Douglas fir was thinning out and the
stand was now made up of cedar, hemlock, and balsam, in that order of
importance. Still climbing, he would find himself in a forest of hemlock,
cedar, spruce, and balsam. Higher up his forest would now be hemlock,
balsam, spruce, and cedar. Soon the cedar is left below and the hemlock,
spruce, and balsam remain in that order. Should he persist in his climb,
he would get into scrub and non-commercial mountain species.
Now, let us conceive of our gradually ascending slope, not as a mountain near Vancouver, but as the Coastal plane of the Province, stretched
out from south to north. Let us assume our climber is travelling north
up the latitudes instead of up the mountain. He would come upon the
same general classification of forest-cover in the same order of species as
he encountered on our imaginary Vancouver mountain. Like other generalizations, this concept is subject to exceptions but, in the main, it gives
a fair enough picture of the Coastal forest in order of predominant and
subdominant species, both in relation to elevation and south to north
distribution.
In the Interior, in addition to most of the Coastal species (the main
exceptions being Sitka spruce and yellow cedar or cypress) the forests contain Englemann spruce, western yellow pine, western larch, and white
spruce as the main commercial cover. In the southern dry site areas are
found fir, yellow pine, spruce, lodgepole pine, and larch. Travelling north
the yellow pine disappears and spruce, lodgepole pine, and balsam are the Q 20
BRITISH COLUMBIA.
dominant types.    Farther north the fir leaves the picture and lodgepole
pine and spruce are predominant.
In the Interior " wet belt" (a relative term) we find pure cedar stands
in the wetter valley areas with cedar-hemlock forests above on the higher
slopes. Above this hemlock, cedar, and spruce cover appears, in association
with some fir, white pine, and balsam. Spruce and lodgepole pine are predominant in the higher altitudes ranging up to 6,000 feet.
LAND CLASSIFICATION.
If it be assumed from the foregoing that the forest-cover is distributed
over the greater part of the land areas of the Province, that assumption
must be corrected or the true position is likely to be misunderstood.
British Columbia's great geographical expanse is in most part made
up of barren land and land incapable of supporting other than scrub forest
of little or no commercial value. Its land area is 234,403,000 acres. Of
this acreage, 41,159,000 thereof is in the Coast district and 193,244,000 in
the Interior. When the Coast and Interior acreages are broken down into
their component parts we find the following land classifications:—
Classification.
Coast.
Per
Cent.
Interior.
Per
Cent.
Total.
Per
Cent.
7,880,000
1,253,000
918,000
495,000
12,515,000
16,902,000
1,196,000
19.2
3.0
2.2
1.2
30.4
41.1
2.9
14,776,000
31,062,000
19,134,000
4,207,000
69,766,000
48,844,000
5,455,000
7.6
16.1
10.0
2.1
36.1
25.3
2.8
22,656,000
32,315,000
20,052,000
4,702,000
82,281,000
65,746,000
6,651,000
9 7
Immature forests  __   	
13.8
8 6
2 0
35 1
Barren  	
28.0
2 8
Totals	
41,159,000
193,244,000
234,403,000
Putting these figures together again in a little different form we get
the following results:— Acres        PerCent
Land capable of producing commercial timber      75,023,000        32
Land incapable of producing commercial timber    (alpine,    barren,    scrub,    swamp,
water, etc.)   154,678,000        66
Agricultural land        4,702,000 2 -
FOREST INQUIRY.                                                  Q 21
This information appears in the following graphic form:—
20
LAND CLASSIFICATION, BRITISH COLUMBIA COASTAL REGION.
a
T
<
_l
IL
a
V)
Ul
10-
BARREN
tt
a
<
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(mostly Alpine)
SCRUB   FOREST
s      Ul   0
m
z
o
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-i
5-
(non commercial)
MATURE
TIMBER
H    5 I
S
ti-1
30-4-
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01   |   _J
3-0   2 9j2iH
1                                               20                                              4o                                             -_Q                                             do                                            IOO
Per Cent   of Tota.l
___
I
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u.
a
in
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100-
90
SO
70
LAND CLASSIFICATION OF
INTERIOR PORTION OF BRITISH COLUMBIA.
60
SO
40
SCRUB
FOREST
o
«
z
a
r_i
-i
s
30
20 ■
10
(non-commercial)
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IMMATURE
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I6-1
NOT
REFORESTING
10-0
S 5
MATURE
TIMBER
7-6
1 E
2-8|ilj
(
•l                                                  20                                                 AO                                                60                                                 80
Per   Cent   of  Total
IOO
It is of interest to note that of the amount of acreage classed as agri
cultural land 23.6 per cent, thereof is cultivated and the remaining 76.4 per
cent, is open grass land.
It is apparent from the foregoing that this Province, because of its
topography, soil conditions, and climate, is a geographic unit in which the
growing of perpetual forest crops is a prime essential if we are to utilize
the fertility of the soil for the purpose for which it is suited.    About one-
third of our land surface and 98 per cent, of all our productive land is in
absolute forest-sites. Q 22
BRITISH COLUMBIA.
The land areas which are of relevant concern are, of course, the productive ones totalling approximately 75,023,000 acres, because those areas
are the sites which support our forests, present and potential. An examination of the foregoing tables discloses that they are divided between the
Coast and Interior as follows:—
Coast   10,051,000 acres, or 13.4 per cent.
Interior  __.  64,972,000 acres, or 86.6 per cent.
These figures are the result of adding together land areas producing
or capable of producing timber. By that same process the following table
may be created:—
Classification.
Coast.
Per
Cent.
Interior.
Per
Cent.
Total.
Per
Cent.
Mature forests ■	
7,880,000
1,253,000
918.000
78.4
12.5
9.1
14,776,000
31,062,000
19,134,000
22.7
47.8
29.5
22,656,000
32,315,000
20,052,000
30.2
43.1
Logged,   logged   and   burned,   and
26.7
Totals  _    	
10,051,000
64,972,000
75,023,000
That simple table points to the heart of our present forest problem.
Two facts emerge with striking force. The first: that of the total productive sites on the Coast 7,880,000 acres or 78.4 per cent, thereof are covered
by mature forests; the second: that 20,000,000 acres of productive forest
land in the Province are not reforested.
The following graphs illustrate the first fact:—
Z
<
-J   4
_J
S
Classification    of    Productive   Forest Land
Coastal   Region.
MATURE    TIMBER
IMMATURE
TIMBER
40 50 60
PER    CENT    OF    TOTAL FOREST INQUIRY.
Q 23
IOT
^Distributtott o£ &-cj<z,-Clashes
ttv?
^British, <2olumbta Coastfbrest
0-7 years
8-24    „
25-80
700,000 acres
800,000     „
350,000
81 years and over_. 7,50 0,000     »
(A
0-6
it
O
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o
m
z
o
J
-14
60 80 IOO
YEARS    OF   AGE Q 24
BRITISH COLUMBIA.
A forest with ideal distribution of age classes should appear in this
form:—
looyri
THE"NORMAL" FOREST
zoyra
IOO    33    36    3T     96    95   __»*
Rll    Rqe  classes   present   on ecjual areas of ec^uoUy   producViye
land    tbrouqhout   rotation   assumed here   tc be   looyrs
The normal distribution of age-classes exists when the forest is composed of a complete series of blocks of trees of equal productivity varying
in age by equal intervals from the youngest age-class to the oldest or to
the rotation age-class. A forest has a normal growing stock when the
increment is the best that can be obtained for the species, site, and rotation,
coupled with a normal distribution of age-classes. The normal forest is,
in the sense described, an ideal objective of forest management. In the
European countries, where forest management has been practised for centuries, the ideal is still the objective and 75 to 80 per cent, of normality is
considered a satisfactory attainment.
On the Coast we have far less growing stock than we should reasonably have in relation both to increment and distribution of age-classes.
The vast extent of our productive Coast acreage now occupied by mature
and overmature timber illustrates the unbalance of our forest resource.
These virgin forests are static and making no net growth and must be
replaced by growing trees if we are to progress to within any reasonable
distance of the ideal or normal forest-cover.
The removal of this surplus of mature growing stock must, however,
be regulated by an adjustment of the annual or periodic cut so that the
exhaustion of this timber will coincide with the growth of new forests to
merchantable size and age. If we fail to ration the present reserve of old
growth until the new growth can take its place we will inevitably reach the
point where the old forests have disappeared and the new forests are not
ready for harvesting. Our forest industry would, in those circumstances,
cease to exist with calamitous results to our whole Provincial economy.
Such a hiatus must be avoided at all costs.
When, however, this process of conversion is completed continuous
production from our forests on a true sustained-yield basis can be assured FOREST INQUIRY.
Q 25
by a proper system of regulated forest management. Until that stage is
reached the problem is not how to assure sustained yield but sustained
production.
The Interior forests present a more balanced division between mature
and overmature stands, as will have been noted from figures in the above
tables and which may be reproduced graphically as follows:—
CLASSIFICATION OF PRODUCTIVE FOREST LAND—INTERIOR REGION.
IMMATURE     TIMBER
NOT  REFORESTED
(Logged, Logged and Burned,
Burned)
~Zo So
PER    CENT    OF   TOTAL
29 -4-5
So	
-Jo~
MATURE TIMBER
-5o~
Z2-74
 35—
The necessity for growing new forests brings me to the second of
those factors implicit in the last table. I refer to the extent of our productive land not reforesting, amounting to approximately 20 million acres.
That, however, is not the whole story. There is in addition the depressing
fact that each year this acreage is increasing.
The logging industry has in the past and is now cutting virgin timber
and maintains production by moving to new areas as old areas are cut out.
The present logging methods in general use are destructive of young
growth and, in addition, do not leave seed sources sufficient to assure satisfactory regeneration. While no precise information is available, the cut-
over land, on the Coast, may be conservatively estimated to approximate
65,000 acres a year. It is probably more. Of this acreage approximately
50 per cent, will satisfactorily restock naturally in varying degrees over a
period of years. The Forest Department has, since 1940, planted between
10,000 to 15,000 acres a year. I would therefore estimate, from the evidence, that at least 20,000 acres a year are, on the Coast, being added to
our present total of approximately 20,000,000 denuded acres. Q 26 BRITISH COLUMBIA.
Logging alone has not brought about this denudation but it results
from logging or a combination of logging and fires, or fires alone. For
instance, in the ten-year period 1934-43, 343,600 acres on the Coast and
2,926,500 acres in the Interior were burned over, destroying mature and
immature forest areas.
Another feature must be remembered in relation to the denudation of
our forest land: in this Province, unlike Ontario and Quebec, agricultural
and industrial development does not follow the logger's axe. Logged-over
lands are for most part unsuitable for the growing of crops because of poor
soil conditions, high clearing costs, distances from markets, and so on.
Thus if we do not grow timber on denuded land areas we grow nothing
thereon except the so-called weed trees.
It will be appreciated from the foregoing in preparing for that not
distant day when our mature forests will be completely cut out, our forest
programme must insist upon three requisites: (a) The presently denuded
productive land areas not restocking must be replanted; (&) the areas
logged in future must be left in such a condition that their continuous productivity is assured; and (c) the young growth must be protected from
fire. I will refer in more detail to these three " musts " later, but wish
to emphasize at this point the importance of protecting our growing stock
from fire. Unless, and until, this is done all other activities designed to
grow and conserve our forest resources will be frustrated.
From the consideration of land and age classifications I turn to record
the volume of our merchantable timber divided into accessible and inaccessible categories. It is from that volume of timber our present production must be maintained until our new forests have reached merchantable
size and age.
It might be advisable to define in what relevant sense the terms
" merchantable " and " accessible " are employed.
There are four main gradations of forest growth and development.
In the first stage the seedlings have appeared. At this period of forest
infancy there is no volume measurable in terms of usable products. The
second stage is reached when the seedlings have established themselves as
a very young forest but the trees are as yet too small to be made into usable
lumber or measured as pulp-wood. The next gradation finds the forest
an advanced (so-called) second-growth forest composed of trees sufficient
in size to contain measurable amounts of usable material. If normal
growth continues, the forest reaches the rotation age or continues on to
the maturity of an old-growth forest. Forests in the third and fourth
stages of gradation contain trees of a size and quality which, under normal conditions, can be profitably marketed. These are the merchantable
trees.
" Accessibility " is a term definitive of area. An accessible area is
one from which the forest crop may be harvested at a profit. An inaccessible area is one in which the cost of extraction does not leave a margin
of profit. The term is a variable one and its components are computed in
terms of (inter alia) location, i.e., distance from markets, terrain, logging JV
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27 FOREST INQUIRY. Q 29
methods, degree of utilization, site quality, and the market price for logs
and for the end product. Thus, an area may be inaccessible to-day and
accessible to-morrow, depending upon the relation of the cost of production
to the realizable price of its crop. The same factors also operate to render
inaccessible areas now classed as accessible. Areas of accessibility expand
or contract in direct relation to logging economics. Location and difficulties of terrain are merely elements to be considered as affecting production costs.
Logging operators, by the skilled and ingenious development and use
of the great power resources now at their disposal, have conquered almost
every technical and physical obstacle in their logging ventures. Powerful
trucks climb to elevations of over 4,000 feet on well-built roads to tap
resources not long ago seemingly out of reach; and logging-railroads wind
along and up steep side-hills.(1) The uncontrollable element is the end price
which for our exportable products is extremely difficult to foretell. Russia,
the Scandinavian, Baltic,, and other timber exporting countries will
undoubtedly be competitors for our present and potential markets, especially when our production is drawn from our second-growth forests.
This competition will, I believe, result in more intensive utilization of our
forest crop and less waste in our milling operations due to a closer integration of manufacturing processes—a subject to which I shall return
later.
Because of the unexcelled quality of the lumber produced from our
old-growth virgin forests, the technological advances in logging in the past
which will undoubtedly be projected into the future, improved and increased
transportation facilities, and a higher degree of forest utilization and other
relevant considerations, it seems to me that about 90 per cent, of our Coast
forest areas will be accessible when needed. This figure is, in my opinion,
a sufficiently close approximation upon which to base future policy.
The most recent estimate of the forest resources of this Province is
to be found in the publication, " Forest Resources of British Columbia."
This excellent compilation is the result of many years' effort by the Forestry Branch to bring together relevant forestry facts and figures. Its
author, F. D. Mulholland, welded together the statistical and other data
into a valuable contribution. It was published in 1937. The following
table is made up of figures extracted from that publication and indicates
the estimated inventory as of 1936. It will be noted it was estimated that
the Coast forests contained a total of approximately 155 billion feet board-
measure, the Interior forests a total of approximately 100 billion feet
board-measure, and the two areas combined contain about 255 billion feet
board-measure. Attention is also directed to the fact that Douglas fir
comprises 24 per cent, of the total Coast stand and 19.4 per cent, of the
total Provincial stand, while the same figures for western hemlock are
29.7 per cent, and 22.3 per cent, respectively.
(1)   See  accompanying   photograph  and profile   (page  27)   of side-hill logging-railroad on  Vancouver
Island. Q 30
BRITISH COLUMBIA.
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0J FOREST INQUIRY. Q 31
Mr. Mulholland, when giving evidence, frankly conceded the 1987
figures to be a very conservative estimate and would add 10 per cent, to
the Coast estimates. This additional volume would take care of the cut of
the intervening years and depletion from fire, insects, and other causes
would be balanced by the normal increment during that period. In the
Interior, increment exceeds depletion. Thus the 1937 estimates were, in
his opinion, equally valid to-day for both Coast and Interior areas.
A number of highly qualified and experienced witnesses were of the
opinion that the present volume of Coast timber amounted to from 180 to
200 billion feet. Mr. Mulholland, while not accepting this increase, did
not seriously challenge its accuracy.
I have given this question much serious consideration. After weighing the conflicting view-points as best I can, I have reached the conclusion
that because of the many factors involved, which include (inter alia)
future recovery from scrub areas, closer utilization in the woods, including
the salvage of lower grades, the greater production of hemlock, variation
between past and present cruise standards, and anticipated increase in
recovery of small logs, and the actual recovery of logs in various areas
having proven to be greater than the 1937 estimate indicated, it would be
safe to assume as a basis for future policy the amount of merchantable
timber at the present time on the Coast amounts to, in round figures,
200 billion feet board-measure. Assuming 90 per cent, of this timber
will become accessible in the future, it is my opinion, therefore, that on
the Coast 180 billion feet board-measure will be available when needed
for use.
The estimate of accessible timber was, in the 1937 inventory, declared
to be a temporary classification and subject to change. Mr. Mulholland's
present view, as stated in his argument (p. 617), is as follows:—
" I submit the weight of expert evidence is that all of Vancouver Island
and probably all of the Coast will become accessible when it is required."
My estimate of 90 per cent, accessibility, based on my understanding of the
evidence, seems, therefore, not unreasonably high.
I feel further fortified in the conclusions I have reached in relation to
present volume on the Coast and future accessibility by an analysis of
the 1937 estimated volume of accessible Douglas fir, which species has
accounted for 50 per cent, of the total Coast cut over the past ten years.
This estimate is as follows:— Minions of Feet
(Board-measure).
Coast accessible  16,613
Total cut of Douglas fir on Coast, 1937-44  11,215
Leaving      5,398
I assume this cut to have been taken from areas classified as accessible
in 1937.
If this estimate is right, two conclusions are inescapable: that in the
eight years since Mr. Mulholland's report our accessible stands of Douglas
fir have suffered about 65 per cent, depletion and less than five years will
see the complete disappearance of mature virgin stands of that species on Q 32
BRITISH COLUMBIA.
the Coast. No one has suggested to me that such a situation exists, and
I feel certain that if that were the present relative position of the Douglas
fir stands I would have been so apprised. The answer seems to be that
either the estimate of volume on areas considered as accessible was too low
or the areas of accessibility were too narrowly defined, or both factors were
estimated too conservatively.
DEPLETION.
Having ascertained, within a reasonable degree of accuracy, what we
have in our forests, a knowledge of the rate at which that resource is being
depleted is of considerable consequence in reaching a proper understanding
of our present position. It is also an essential fact in the determination
of future policy and as a guide to the extent to which regulation may be
necessary to ration our old-growth stands until our new forests are grown.
The four main causes of forest depletion are logging, destruction by
fire, losses due to insect pests and fungi diseases, and wind-throws. I propose to examine each of these destructive agencies, with the exception of
wind damage, which is of relatively little consequence and practically
unavoidable in areas of virgin forests.
DEPLETION BY CUT.
The cut of the Coast and Interior for the thirty-year period, 1915 to
1944, is as follows:—
Year.
Coast.
Ten-year Average Coast
Cut.
Interior.
Ten-year Average Interior
Cut.
Total.
Ten-year Average Total
Cut.
1915
830,169,000
1,012,051,000
1,335,746,000
1,430,705,430
1,410,621,328
1,596,164,595
1,407,254,685
1,555,284,634
2,099,872,396
2,066,709,394
2,160,569,607
2,442,789,454
2,411,430,686
2,723,941,046
2,823,189,049
2,243,968,742
1,660,190,013
1,441,848,076
1,711,113,629
1,983,065,380
2,369,399,269
2,705,418,851
2,872,196,877
2,416,782,086
3,041,646,641
3,323,776,432
3,266,379,242
2,711,140,593
2,525,231,294
2,519,167,455
187,469,000
268,212,000
311,529,000
330,478,976
347,708,667
450,304,364
382,762,680
343,873,639
421,862,885
482,990,787
450,696,920
475,329,748
442,271,776
482,964,420
522,955,238
419,783,596
288,214,260
169,610,385
187,467,435
231,726,489
279,889,126
315,354,443
369,718,763
362,251,912
313,248,925
369,378,324
413,378,272
461,499,586
553,535,490
577,165,629
1,017,638,000
1,280,263,000
1,647,275,000
1,761,184,406
1,758,329,995
2,046,468,959
1,790,017,365
1,899,158,273
2,521,735,281
2,549,700,181
2,611,266,527
2,918,119,202
2,853,702,462
3,206,905,466
3,346,144,287
2,663,752,338
1,948,404,273
1,61J,458,461
1,898,581,064
2,214,791,869
2,649,288,395
3,020,773,194
3,241,915,640
2,779,033,998
3,354,895,566
3,693,154,756
3,679,757,514
3,172,640,179
3,078,766,784
3,096,333,084
1916	
1917	
1918	
1919	
1920 _
1921	
1922	
1923	
1924
1925
1926
1927	
1928
1929
1930
1931
1932
1933
1934
1935
1936	
1937
1938
1939
1940-	
1941
1942
1943
1944..	
1,474,457,846
1,607,497,706
1,750,571,752
1,858,140,220
1,987,463,782
2,128,720,556
2,193,500,971
2,218,794,504
2,207,450,848
2,168,574,971
2,160,210,570
2,181,093,536
2,207,356,476
2,253,433,095
2,222,717,199
2,244,562,958
2,352,543,727
2,513,162,650
2,640,091,902
2,721,503,668
2,775,113,864
352,719,199
379,041,991
399,753,766
412,828,044
428,076,588
445,601,245
442,549,168
433,094,326
415,668,001
392,228,456
367,102,026
350,021,247
334,023,716
326,768,415
314,697,164
293,726,533
288,686,006
301,202,407
330,391,327
336,998,133
401,542,047
1,827,177,046
1,986,539,899
2,150,325,519
2,270,968,265
2,415,540,371
2,574,321,800
2,636,050,138
2,651,888,829
2,623,118,848
2,560,803,426
2,527,312,595
2,531,114,782
2,541,380,181
2,580,201,499
2,537,414,352
2,538,289,480
2,641,229,721
2,814,365,045
2,970,483,217
3,088,501,789
3,176,655,911 FOREST INQUIRY.
Q 33
To summarize this table for the last ten-year period, 1935-44:
Board-feet. Board-feet.
Total cut on Coast  27,751,138,640 	
Average Coast annual cut             2,775,113,864
Total cut in Interior     4,015,420,470
Average Interior annual cut____   	
401,542,047
Total ten-year cut, Coast and
Interior   31,766,559,110
Average annual total cut   	
.-            3,176,655,911
Per cent, of average Coast cut to average total cut, 87.4.
Per cent, of average Interior cut to average total cut, 12.6.
The Coast cut, averaging 87.4 per cent, of the total cut, is harvested
from an area containing 69 per cent, of our presently accessible stands or
61 per cent, of our total stands, and in terms of productive forest land
acreage upon which we must depend for our future crops the Coast cut of
87 per cent, is taken from 1*4 per cent, of such productive land area. The
Interior cut, representing 12.6 per cent, of our total cut, is taken from an
area containing 38 per cent, of our total stand or 30 per cent, of our present
accessible timber.
DEPLETION BY FIRE.
Board-feet.
For the ten-year period, 1934-43, the annual average net loss of standing timber by fire on the
Coast amounted to     16,353,600
In the Interior for the same period the annual average net loss amounted to  282,412,300
Making a total average annual net loss of 298,765,900
Per cent, of Coast loss, 5.5.
Per cent, of Interior loss, 94.5.
DEPLETION BY INSECTS.
Board-feet.
Average annual Coast loss due to insects   (token
estimate)        1,000,000
Average annual Interior loss  400,000,000
Total average annual loss  401,000,000
Loss from disease averages over 414,000,000 board-feet per annum,
but is balanced by increment, except in the overmature stands, wherein
that condition is taken into consideration in cruisers' estimates.
TOTAL AVERAGE ANNUAL DEPLETION.
Adding the foregoing figures results in the following totals:—
Cut.
Fire.
Insects.
Total.
Board-feet.
2,775,113,864
401,542,047
Board-feet.
16,353,600
282,412,300
Board-feet.
'   1,000,000
400,000,000
Board-feet.
2,792,467,464
Interior  	
1,083,954,347
Totals _. .  	
3,176,655,911
298,765,900
401,000,000
3,876,421,811 Q 34
BRITISH COLUMBIA.
ALLOWABLE CUT.
Having ascertained the volume of mature timber and the rate of its
depletion, the next question that arises for consideration is the length of
time it takes to grow a merchantable forest. This information is important in determining the allowable cut of the old Coast forest during the
growing period of the new forest. In other words, if our industries are
to survive how long must the old growth be made to last ?
A forest becomes of merchantable size at an age when the growing
stock will produce the greatest annual return in volume expressed in percentage of the growing stock. The weight of the evidence before me indicates that timber produced on an average Coast site in sixty years will be
of merchantable size for the then available markets and manufacturing
processes for which that size tree will then be utilized.
Assuming a close recovery in logging, successful regeneration and
reforestation, and protection of our young stands from fire, it is my opinion
that the following round figures indicate the extent of the allowable annual
cut on the Coast over that growing period of sixty years:—
Board-feet.
Standing accessible mature timber  180 billion.
Divided by 60  3 billion.
Deduct annual fire and insect net losses (approximately)   17 million.
Leaving  2,983 million.
Add increment on growing stock, 1,253,000 acres
at 350-400 feet per acre per year  500 million.
Total allowable annual cut  3,483 million.
This estimate of an allowable annual or periodic Coast cut of about
3^2 billion feet a year for sixty years is, however, subject to a further
qualification, and I do not consider it a safe guide for any greater period
than for the next ten years.
An analysis of the Coast cut by species supplies the qualification:—
Species.
Total Cut,
1937-44.
Average
Yearly Cut,
1937-44.
Per Cent, of
Total Coast
Cut.
Per Cent, of
each Species
to Total Coast
Volume of
all Species.
Douglas fir	
Western hemlock...
Western red cedar__
Spruce _
Silver fir (balsam).
White pine 	
Others   :_.
11,214,723,207
4,639,616,898
4,440,492,129
1,059,546,179
932,046,513
171,021,597
12,866,000
1,401,840,400
578,702,112
555,061,516
132,443,272
116,505,814
21,377,699
1,608,250
49.93
20.61
19.77
4.72
4.15
0.76
0.06
24.0
29.7
26.2
6.4
11.3
0.4
2.0
It will be remembered the forest inventory of 1937 estimated our total
Coast stands to contain 155 billion feet and that Mr. Mulholland stated the
1944 stands approximate the same total and that it would all be accessible
when required.    In my opinion the weight of evidence shows the stands, FOREST INQUIRY.
Q 35
accessible when required, total about 180 billion feet.    I have, therefore,
added 16 per cent, to his present estimate.
With these figures in mind I now turn to consider how long the present
mature stands of the various species on the Coast will last on the basis of
the 1937-44 average cut and, as a matter of interest, have contrasted the
probable duration of the main species on the basis of Mr. Mulholland's
present estimate and my view of the evidence.
Species.
Mulholland's
Estimate
(Millions of
Feet Board-
measure) .
Supply in Years
(Estimate -r-
Average Cut).
My Estimate.
Supply in Years
(Estimate -f-
Average Cut).
Douglas fir 	
37,115
46,135
40,553
9,949
17,580
651
27
79
73
75
150
30
43,053
53,517
47,041
11,541
20,393
755
31
92
85
87
176
White pine   _ 	
35
The reason for my qualifying statement is now evident. When all the
mature stock is considered so much raw material it only requires the application of a simple formula to compute the allowable cut over any chosen
rotation age. When, however, that stock is divided into species and the
volume of each is examined the computation becomes complex. The fact
that Douglas fir, supplying the material for 49.93 per cent, of our average
annual cut on the Coast comprises only 24 per cent, of our total Coast
stand and will be cut out in about thirty years and long before the new fir
forests can supply that proportion of the cut, means the logger must turn,
in an increasing degree, to other available and marketable species. This
will result in a greater annual depletion of the hemlock, cedar, spruce, and
balsam fir stands. In other words, when the mature Douglas fir is cut out
the billion and a half feet of that species now being cut annually on the
Coast must be spread over the remaining species to maintain present overall supply. The cut of Douglas fir from the 350,000 acres of growing
stock presently twenty-five to eighty years old, will not relieve the situation thirty years from now to an appreciable degree. Thirty years hence
the 800,000 acres of young growth, now eight to twenty-four years old, will
not be producing timber of merchantable size. It may be that the Coast
operators will direct their attention to the Interior stands of mature Douglas fir to make up the inevitable deficiency of supply to the export market.
To say whether such a move would be economically practicable or not would
be pure conjecture on my part and thus I do not hazard an opinion thereon.
The secular trend of the cut of fir, hemlock, cedar, and spruce, and
the total amount cut of all species, are shown on the following charts:— Q 36
BRITISH COLUMBIA.
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F.B.M., FOR YEARS 1915 TO 1942.
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The trend line of the Douglas fir cut cannot continue its present projection and as the mature stands are progressively cut out this line will
develop a gradual, descending curve.
My conclusions are based upon opinions which are in part conjectural
due to the lack of precise data upon many important aspects of our forest
problems. It is therefore a manifest necessity that there be an examination of our entire forestry situation at a period not later than ten years
hence. By that time exact information concerning our forest resources
not now available ought to be known and forest policy should then be
reviewed in the light of the known facts and be guided by the interim
developments that have taken place in methods of utilization, marketing,
and other relevant factors affecting our forest economy. As a basis for
present forest regulation it is my firm opinion that the annual cut on the
Coast should not be permitted to exceed 35 billion feet during the next
ensuing ten-year period. If the exigencies of the future so demand Crown
timber may have to be withheld from the market to effectuate this purpose.
The average annual Coast cut, it will be recalled, is 2% billion feet and in
the peak year of 1940 did not reach 31/2 billion feet. My estimate, therefore, should take care of the heavy post-war demand for lumber over the
next five years it is expected to continue. I do not recommend the average
annual cut be not permitted to exceed 3V& billion feet if the exigencies of
the post-war market demand a greater production. I do, however, stress
the importance of not permitting a greater depletion by cut in excess of
35 billion feet over the next ten-year period.
If I am in error in accepting the evidence of the witnesses who
expressed the view that the rotation age of sixty years on the average
Coast site will produce timber of merchantable size for future markets the
trend of developments during that ten-year period will so demonstrate and
adjustments in policy can be made then before any irremediable harm is
done to our forest resource.
The present need is to initiate a broad programme designed to lead
ultimately to a plan of forest management whereby continuous production
may be assured from all our forest land in place of the present system
whereby production is the result of cutting out successive forest areas
without ensuring the continuous productivity of these areas. The future
need will be to adjust that programme to meet the ineluctable developments the years ahead will bring.
DEPLETION  IN THE INTERIOR.
The Interior forests are in a much better balance than those of the
Coast in relation to the proportionate acreages in mature and immature
stands, although the 19 million acres of areas not reforesting calls for
serious consideration and future action.
It will be recalled that the Interior stands were estimated, in 1937, to
be approximately 100 billion feet of merchantable timber. It was also
estimated by Mr. Mulholland that the increment from growing stock added Q 42
BRITISH COLUMBIA.
to that sum 1,580 million feet a year. The average annual depletion is a
little over a billion feet a year. There must, therefore, be added to the
inventory approximately 1/2 billion feet a year since 1937 or about 4 billion
feet. If the added increment is restricted to those areas considered accessible in 1937, the added increment is a little over 200 million feet a year
or 1,600 million in the last eight years. I do not feel justified, upon the
evidence, in stating to what extent the areas considered inaccessible in
1937 may be considered now, or in the future, as accessible. Some, but
not all, of the reasons which I have previously outlined as increasing the
areas of accessibility on the Coast can be validly applied to the Interior.
Certainly some areas in the Interior thought inaccessible in 1937 will be
logged in the future, but to what particular extent I do not feel qualified
to say. But even when the 1937 estimate of accessible merchantable timber areas are accepted without change, the over-all inventory is increasing
yearly as the increment exceeds the total over-all depletion. That increment will be greatly increased when fire and insect losses are brought
within reasonable control. For the past years those losses have equalled
or exceeded the annual cut. Planting of selected acreages in those areas
now not reforesting will also add to our Interior resource not only in
volume but in quality.
An examination of the cut by species reveals the following figures:—
Species.
Total Cut,
1937-44.
Average
Yearly Cut,
1937-44.
Per Cent, of
Total
Interior Cut.
Douglas fir	
Western hemlock_
Western red cedar-
Spruce _
Silver fir (balsam) _
Lodgepole pine	
Larch  	
White pine	
Yellow pine	
F.B.M.
796,582,825
81,068,230
389,391,842
896,583,906
15,258,965
125,200,304
322,015,887
97,008,435
320,186,768
F.B.M.
99,572,853
10,133,528
48,673,980
112,072,988
1,907,370
15,650,038
40,251,986
12,126,054
40,023,346
26.2
2.7
12.8
29.4
0.5
4.1
10.6
3.2
10.5
Species.
Mulholland's
Estimate, Millions
of Feet B.M.
(Accessible).
Supply in Years
(Estimate —•
Average Cut).
Douglas fir	
Western hemlocks-
Western red cedar-
Spruce 	
Silver fir (balsam).
Lodgepole pine	
Larch	
White pine__
Yellow pine__
7,261
2,288
4,106
11,426
2,260
2,633
1,864
580
1,212
72
225
84
101
1,184
167
46
47
30
Accepting Mr. Mulholland's estimates of Interior volume and accessibility, which are admittedly conservative, the situation at large, that is to
say, the relation of depletion to increment, is an assurance that except for FOREST INQUIRY. Q 43
larch, white pine, and yellow pine our Interior timber-supply presents a
much better picture on the whole than does the Coast resource.
The Interior, however, presents its own problems and while there is
in general an abundance of timber, transportation difficulties confine mills
to areas within a narrow radius, with the result that once these areas are
cut out the mills cease operations and communities dependent upon them
become ghost towns—a situation inimical to the public interest. The
shortage of yellow pine is causing the Interior orchardists grave concern.
I shall deal with these questions and others relating solely to the Interior
at a later stage of this report.
UTILIZATION.
It is a truism that the prevention of waste, both in the woods and in
the mills, reduces the drain on our forest supply. It is, therefore, incumbent on me to consider the present extent of the wastage incident to the
processes of extracting and converting our timber into lumber and other
marketable products in order to ascertain if and how that wastage may be
lessened with corresponding reduction in forest depletion over the critical
period of transition to sustained-yield production.
LOGGING-WASTE.
The term " logging-waste " is sometimes used as descriptive of logging
debris. By " logging-waste " I mean the portion of the tree that has
merchantable value but which is not utilized and is left in the woods.
According to the evidence adduced before me, the principal forms of
logging-waste are as follows:—
(a) Sound logs, suitable for sawlogs, that have been left in the woods
because either one or both ends have been broken (the bucking of 2 to 4 feet
from the shattered end would convert them into good sawlogs) ; (b) short
sections of sawlogs resulting from tree breakage during falling; (c) trees
too small to make sawlogs that have been knocked down during logging; and
(d) sawlogs that have been overlooked by the yarding crew. Q 44
BRITISH COLUMBIA.
From a study by J. H. Jenkins and F. W. Guernsey, in 1932, of eight
representative logging operations using the high-lead system, I have compiled the following tables:—
Average per Acre Volume of
Merchantable Timber before
Logging (Cu. Ft.).
Average per Acre Volume of
Material left on Ground after
Logging (Cu. Ft.).
Per Cent, of Original Stands
left on Ground after
Logging.
14,458
2,714
19.5
Classification of material per acre left on ground after logging:—
Material.
Average
Volume
(Cu. Ft.).
Per Cent, of
Waste.
Per Cent, of
Original
Stand.
Sawlogs, bucked at both ends	
Sound logs—broken ends	
Logs with rot  	
Logs—shattered	
Logs—short, broken	
Tops	
Broken chunks (under 12 inches)_
Small trees	
Large limbs (over 4 inches)	
Sound windfall, snag  _	
Totals  	
278
957
51
181
319
106
365
327
9
121
10.2
35.3
1.9
6.7
11.8
3.9
13.4
12.0
0.3
4.5
2.0
6.7
0.4
1.3
2.3
0.8
2.6
2.3
0.1
0.9
2,714
100.0
19.5
Material per acre left on ground after logging, classified as to possible
uses:
Material suitable for.
Cubic Feet.
Per Cent, of
Material left
on Ground.
Per Cent, of
Original
Stands.
Sawlogs, Grade A..
Piling _■_	
Poles	
Ties	
Pulp-wood	
Cordwood	
Shingle-bolts	
Totals..
1,009
324
48
15
294
988
36
2,714
37.2
12.0
1.8
0.5
10.8
36.4
1.3
100.0
6.9
2.2
0.3
0.1
2.0
7.8
0.2
19.5  be
s
H
M
e
46 FOREST INQUIRY. Q 47
THE LADYSMITH EXPERIMENT.
This experimental project was conducted by the Comox Logging and
Railway Company, the Powell River Company, Limited, and the Provincial
Forest Service, and was intended to ascertain whether sound wood left in
the forest after logging could be economically salvaged and used for the
manufacture of pulp.
The original logging produced approximately 6,405 cubic feet per acre
and logs down to a top diameter of from 9 to 10 inches were recovered,
indicating close utilization under present logging methods. Sixty-six per
cent, of this volume was Douglas fir, 27 per cent, hemlock, the remainder
of the stand being composed of pine and cedar.
Salvage operations were conducted on an area of 260 acres and total
recovery amounted to 400,980 cubic feet. About 50 per cent, of this total
was made up of small understory hemlock too small for saw timber. Some
of these trees were still standing while others were wind-thrown or pulled
down during the first logging operation. Over 30 per cent, came from
long tops. Other material consisted of broken chunks and a few sawlogs
left on the ground. Scattered blocks of scrubby timber were also cut and
used. Small standing fir and cedar were left for future seed-supply and
only a small part of the cedar on the ground was recovered because not
suitable for newsprint (although useful for other purposes). The salvaged material ranged in length from 10 to 90 feet and averaged 34 feet.
Small end diameters averaged 6.1 inches. Because of loss through breakage in loading and sap-wood decay of some of the wood, the actual scale
of sound wood delivered to the Powell River Company amounted to 370,760
cubic feet, yielding in tonnage of pulp an amount equal to the pulp yield
from 2 million F.B.M. of normal pulp-logs.
As mentioned above, the log-recovery from the original logging operation, on the acreage in question, amounted to approximately 6,405 cubic
feet per acre. The salvaged wood amounted to 1,550 cubic feet per acre.
Thus the salvage was 19 per cent, of the total of the utilized stand and 24
per cent, of sawlog volume.
The parallel between the percentages of recovery in this experimental
operation and the percentage figures of recovery resulting from the study
of Messrs. Jenkins and Guernsey is worthy of note.
Nelson C. Brown, Professor of Forest Utilization at Syracuse University, has estimated(1) the proportion of total wood volume wasted at 23
per cent. He considers the leaving of unnecessarily high stumps an important loss factor and summarizes the percentage estimate as follows:—
Per Cent.
Stumps          3.0
Tops, limbs, and branches  12.5
Defective and decayed trunks and boles shattered in falling    5.5
Miscellaneous:   Improper log lengths   (i.e., cutting even
lengths), transportation loss, decay in storage, etc.__    2.0
Total  23.0
(1)   "General Forestry,"  1935, p.  165. Q 48 BRITISH COLUMBIA.
I think I may safely assume that, generally speaking, about 20 per
cent, of the total wood volume of our logged areas is left in the woods as
waste. Our total annual log production of 3 billion feet is based on logs
scaled. That means that 750 million feet of material are left in the woods
each year. On the conservative basis of 300 feet per acre per year increment we are thus wasting each year a volume of wood equal to the yearly
growth on 2,500,000 acres of productive forest lands. This practice is an
uneconomical misuse of the forest resource and, in addition, this mass of
material creates a dangerous fire-hazard.
There are, no doubt, many uses that can be found for logging-waste.
Wood suitable for pulping purposes can be used for that process; but other
avenues are open, as the Jenkins study so reported (see supra).
The knowledge that uses may be found for logging-waste does not in
itself supply the answer to the problem of its utilization. This question,
like all others affecting forest conservation, has an economic aspect. If
the operator can salvage this material at a profit he will do so. If he can
not it stays in the woods. When lumber prices are high, the degree of
utilization is correspondingly increased. When market prices decline, low-
grade lumber is difficult to sell and only the logs that can be converted into
high-grade lumber are taken out of the woods. Thus the end price of the
product and its marketability determines the extent to which logging-waste
will be utilized in the future.
The Ladysmith Experiment disclosed the fact that costs of handling
the salvaged material at Powell River were about the same as those
incurred for handling normal pulp-logs while wood losses in the preparation of this material for pulping were lower. The installation of hydraulic
barkers will materially reduce wood losses now incurred in barking normal
pulp-logs with consequent alteration of the relative costs. Based on the
experimental methods used, logging costs of this material came " very
close to the valuation of the salvage as pulp-wood supply."(1) Experience
will undoubtedly evolve cheaper methods of recovery and lowered costs of
loading and transportation may be anticipated.
It is in the public interest that logging-waste be salvaged and utilized,
therefore the Government should encourage its recovery by measures
designed to effectuate that purpose. These measures should have as a primary objective the lowering of recovery costs. This objective may be
attained by the creation of a new grade for salvaged material without
reservation of royalty and by adjustment of over-all stumpage prices to
render it possible to pre-log or re-log areas selected as suitable for this purpose. Other formulae will occur to experienced loggers and in co-operation
with the forest administration they will, I feel sure, find a way to meet the
exigencies of this situation.
The possible adoption of the cubic-foot scale system for measuring
salvage material will be dealt with under another heading.
Up to this point I have been directing attention to the extraction of
logging-waste to ascertain whether or not continuous supply of this mate-
(1)   Report on Ladysmith Experiment. FOREST INQUIRY. Q 49
rial might be maintained. It is my view that not only should this desired
objective be reached but that it can be reached.
There is, however, little to be gained by securing a continuity of supply unless there is also an assured continuity of demand for that supply.
It might be thought that the logical consumers of salvage would be
the companies producing pulp and those sawmills designed to process the
small diameter logs which are recoverable. To a degree that is so, but in
so far as our pulp-mills are concerned it must be borne in mind that their
product is sold on an exacting and competitive market in which quality of
product controls the demand and selling price. Salvaged waste is inferior
in quality when compared with normal pulp-logs and very little of this
material can be used in the sulphite process. It is doubtful if over 20 per
cent, waste can be used in the ground-wood process without a degrade of
quality, although research may remove some of the inhibiting factors. It
must be assumed that the logging operations conducted by the pulp companies on their own limits will produce 20 per cent, utilizable waste. The
conclusion is, therefore, that little, if any, demand for the great quantity
of waste from general logging operations will come from the pulp companies unless and until further research, leading to improvements in processing techniques, points the way to a greater utilization of this material.
Sawmills in the Province are equipped for, and geared to, the use of
heavy logs. Eight or more of these are, however, now using Swedish
gang-saws designed to cut smaller material, eight others have extra head-
saws for small logs, and other millers have in contemplation similar installations. It is only a question of time until the present standard type of
sawmill becomes obsolete and, when the cut is taken from the new forests,
sawmills must be converted to process the logs then being produced. Those
mill-owners who foresee the trend are gradually adapting their plants to
that end. I think it a reasonable conclusion that once a continuous supply
of logging-waste, suitable for milling, is coming out of the woods the millers will be able and willing to manufacture it, provided the finished product
can be marketed at a profit.
During periods of short supply with concomitant high prices markets
exist for lower grade lumber and other products cut from small logs.
During normal market conditions—if any period may be termed " normal "
in the logging industry which is subject to wide fluctuations in price and
production—markets for this class of material will be much narrower.
This would indicate the need for further research into potential uses and
markets to ensure a profitable outlet for the end product of salvage.
This opens up a new vista wherein even now may be seen the tremendous potential value of logging-waste as the raw material for the production of the many chemical derivatives of wood scientific advancement has
made possible. This Province has so much to gain by the development of
new wood-uses that extensive research, financed by the Government, would
be amply repaid.
In the years ahead, scientists of those future days, looking back at this
era, will characterize our methods of extraction and conversion of the raw Q 50 BRITISH COLUMBIA.
stuff of our forests as crude and wasteful. In the meantime, and in relation to the utilization of logging-waste by our pulp-mills and sawmills, it
seems to me that the president of the Powell River Company expressed the
correct view when he said:
". . . if the price is attractive enough to make the use of this material an
economic possibility, the log-using industries will find a use for it despite its
deficiencies in quality and its higher cost of processing."
I have made mention of some of the means that should be adopted by
the Crown to make the price attractive, thus encouraging a continuity of
supply and demand.
There is another aspect of this question of logging-waste to which
reference may be made. I see no reason why steps should not be taken,
wherever possible, by the forest administration and industry to lessen the
present wastage in the woods. Stumps can and should be cut lower. Skilful and careful felling would minimize breaking and shattering of tree-
trunks. To log old-growth trees down to 6-inch tops would be impractical
because of knots and so on, but understory trees in mixed stands could be
taken down to 6-inch tops and probably others to like diameters. To suggest that most of this material could be salvaged on a relogging " show " is
not the answer because, due to topography, distance from markets, and
other factors affecting costs, relogging for salvage would, in general, be a
practicable procedure only on about 60 per cent, of our logged areas.
Logging by the high-lead system results in the destruction of thrifty
young growth. Much of this is probably unavoidable and even if the scattered young understory trees were left standing they become, in most part,
wind-thrown when deprived of the protection of the old-growth trees or
burned in slash fires. There is, however, one practice that cannot be permitted to continue on any form of tenure—Crown-granted or otherwise:
I refer to the reprehensible destruction of dense, thrifty second-growth
stands by logging operations carried on for the sole purpose of recovering
a few scattered old-growth trees in those young stands. This wanton
waste and ruthless destruction of our future forests demands that, in the
public interest, such a practice be stopped.
SAWMILL-WASTE.
The fact that about 20 per cent, of the wood volume per acre is now
being wasted during logging operations leads me to consider what happens
to the 80 per cent, that eventually arrives at the sawmill.
Thirty years ago it was a common sight to see smoke billowing from
the large burners that seemed an integral part of sawmill construction.
In recent years, as utilization of sawmill-waste has increased, smoke from
the sawmill burners has, in most mills, been reduced to a minimum. This
is especially so in relation to mills near populated centres offering a market
for sawdust, shavings, and wood-waste as fuel for both domestic and commercial use. Then too, less waste is evident since more sawmills have been
cutting to European standards. More precision in sawing is required to
produce lumber to meet the demand of that market. FOREST INQUIRY. Q 51
A study of fourteen large Coast mills by J. H. Jenkins in 1928 revealed
that the amount of wood converted into lumber and other material, resulting from the manufacturing processes then in use, and expressed in
percentage of the cubic volume of Douglas fir and hemlock logs, was as
follOWS :  Douglas Fir. Hemlock.
Slabwood edgings and trim     12.9 14.9
Sawdust      16.1 18.3
Total     29.0 33.2
Green lumber      71.0 66.8
100.0 100.0
Of the slabwood edgings and trim, the following percentages were
Utilized :  Douglas Fir. Hemlock.
Lath      3,7 0.5 Lath.
Firewood      6.8 3.8 Pulp-wood.
Totals  10.5 4.3
These figures would seem to indicate that 1.35 per cent, of the fir and
0.64 per cent, of the hemlock slabwood edgings and trim were used to produce lath, pulp-wood, and firewood. The recovery from this material (misnamed mill-waste) is to-day much greater, but to what extent I am unable,
on the evidence, to say. Its principal uses are for firewood, mouldings,
broom and other handles, lath, shingle-bands, box-ends, small toys, hog-
fuel, pulp-wood, and pulp chips.
To sum up the foregoing, it appears from the evidence before me, that
about 70 per cent, of the volume of the logs that arrived at the mill was
converted into green lumber. This was a loss in volume of approximately
30 per cent., which, added to the 20 per cent, loss in logging, meant that
about 50 per cent, of the volume of the tree finally emerged from the mill
as lumber. Logging-waste remains to-day at much the same figure as then
and while mill-waste, as I have said, has been greatly reduced from the
Jenkins estimate, upon which the foregoing figures are based, complete
utilization has yet to be attained.
Some fields offer attractive possibilities for exploration right at home;
for example, at least five mills are selling hemlock " mill-waste " to American pulp-mills and if these concerns find it practical to buy, bark, and chip
it here, and pay transportation costs thereon to Port Angeles, I see no
reason why our own companies can not find it an economically feasible
source of supply. Several pulp companies have, in fact, with commendable
foresight, been carrying on experiments in the use of hemlock mill-waste.
The results are encouraging and in view of the trend towards a greater
hemlock cut a co-operative effort to this end between sawmill operators and
pulp producers would be desirable. Some sawmills, for instance, having
a heavy hemlock recovery would find it economically practicable to install
hydraulic barkers. This process would improve the quality of the hemlock
chips and, incidentally, would enable the mill to improve both grade and Q 52 BRITISH COLUMBIA.
quantity of its manufactured lumber and effect important economies in
milling costs.
From my own observations, made during trips of inspection to Coast
and Interior mills, I am satisfied that mill operators, in general, are using
every reasonable endeavour to find a marketable use for mill-waste. It is
to their advantage to do so, because any monetary return from the commercial use of this wastage lowers the unit cost of production. Future
outlets will result from further research in the use of this material—e.g.,
in the study of lignin plastics, wood hydrolysis and distillation. I believe,
too, the future will force a closer integration between sawmills and secondary industries designed for, or capable of, utilizing mill-waste. This
development is foreshadowed by the decision of a large sawmill near
Alberni to install a pulp-mill as a subordinate processing unit.
I am also satisfied, from the evidence, that most millers are alive to
the compelling necessities of the situation and are anxious to reduce wastage in manufacture. My impression is, from hearing the expressed views
of many of them, that they are adopting now, and are willing to adopt in
the future, all reasonable methods of proven efficiency to effectuate that
purpose.
The links in the chain of wood-use begin with the tree in the forest
and in time will end in its complete transmutation to various vendible
forms and substances and when that day comes—as it will—the wood-using
industries will be as efficient as the meat-processing industries in their
degree of utilization of the raw material that they process.
Before leaving this subject I would like to add a word concerning the
use of wood preservatives as a factor in wood utilization in its relation to
forest depletion.
Hemlock and lodgepole pine are suitable for railway-ties. Untreated
ties from these species have a life limited to six and seven years respectively, but when treated with preservatives have a service use extending
to twenty-one and thirty-one years respectively. I do not know what percentage of ties are made from Douglas fir, but when 3,000 of these are
required for each mile of railroad the use for this purpose of treated hemlock and lodgepole pine would assist in lessening, to some degree at least,
the present drain on our Douglas fir stands.
The United States Forest Service has estimated that about 10 per cent,
of the total cut is used to replace wood rendered unfit by the activities
of wood-destroying fungi. Wood treated by preservatives prevents this
fungi development and doubles or trebles the useful life of wood products
exposed to fungi attack—i.e., ties, fence-posts, poles, mine-timbers, and
such like.
The evidence discloses that in mines, where timber rot is a factor,
the practice is to use timber sizes larger than load conditions warrant in
order to offset the expected rot. Our production of large-size timbers will
decline as our mature forests are depleted. The use of smaller sizes will
be an economic necessity, but preservatives against rot can, and will, render FOREST INQUIRY.
Q 53
this class of material just as effective for its purpose as large untreated
timbers.
For these and other reasons I suggest that wood treated with preservatives be used in place of untreated wood wherever practicable in order
to lessen forest depletion.
CONVERSION PLANTS.
Conversion plants in this Province fall into two broad classifications:
those converting logs into lumber, shingles, and allied lumber products; and
those using logs as the raw material for the manufacture of pulp and paper
products.
SAWMILLS.
I have tabulated the significant statistical material in the following
form:—
Year.
No. of
Active
Sawmills.
Daily
Capacity,
M.B.M.
No. of
Inactive
Sawmills.
Daily
Capacity,
M.B.M.
Total
Production of
Sawn
Lumber,
Millions
of F.B.M.
Average
Log
Prices,
all
Species.
Average
Log
Prices,
all Species
purchased
by Log-
buying
Mills. (1)
Average
Lumber
Sales
Prices
F.O.B.
1929      	
354
301
334
293
295
349
384
410
434
481
461
542
557
551
11,896
11,020
10,167
7,641
8,715
9,152
9,822
11,401
11,042
12,159
11,698
12,691
13,820
13,197
95
141
158
139
134
129
96
122
131
126
147
141
129   -
149
2,200
3,204
4,109
4,621
3,632
2,999
1,962
1,699
1,685
1,406
1,907
1,432
1,083
1,206
2,460
1,928
1,342
934
1,133
1,464
1,610
2,023
2,072
2,044
2,276
2,324
2,407
2,303
$14.67
12.88
10.46
9.10
9.53
10.12
10.74
12.36
14.62
13.12
13.46
15.12
16.04
17.80
$12.14
10.80
8.94
7.79
8.05
9.52
9.01
11.60
12.89
12.20
11.65
13.67
15.27
15.75
$21.44
1930    -___	
17.66
1931      	
13.90
1932
12.01
1933      _   	
12.82
1934
14.85
1935          __   	
14.81
1936	
1937          _   	
17.40
20.79
1938 	
1939 	
1940
17.36
18.67
22.03
1941
25.71
1942      	
29.16
(1)   The  difference  between  log   prices  on   open  market  and  general   average  log  price  is  due  to the
higher percentage of hemlock and smaller percentage of peeler logs purchased by the log-buying mills.
From the foregoing table I select the following years for purposes of
comparison:—
Year.
No. of
Active
Sawmills.
Daily
Capacity,
M.B.M.
Total Lumber
Production,
Millions of
F.B.M.
Average
Selling Price
of Lumber.
1929                                          	
354
293
557
11,896
7,641
13,820
2,460
934
2,407
$21.44
1932                                       	
12.01
1941
25.71
The conclusion from this comparison must be that good demand for
lumber with concomitant higher price-levels has been the prime factor
which has governed the fluctuation in the number of operating sawmills.
The accompanying graph is based upon the above tables:— Q 54
BRITISH COLUMBIA.
TOTAL LUMBER PRODUCTION FOR BRITISH COLUMBIA AND AVERAGE
LUMBER  SALES  PRICES  F.O.B.  SAWMILL,  1929  TO  1942.
1919      1930     1931     1932     1933     1934     1935     1936      1937     1938    1939    IS-tO    19*1       19+Z
30M
29.00
28.00
2/00
26.00
25.00
24.00
23.00
5 22.00
-*.   ■
0   11.00
3000
2900
2800
2700
j
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£1000
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A
Probably the basic reason for the relationship may be found in the
fact that higher lumber prices stimulate log production; thus, in periods
of short supply, areas of accessibility expand. This results in a flow of
logs to the open log market, and, in turn, to the log-buying mills.
I very much doubt, however, that this trend will continue in the future.
It seems to me, from the evidence, that those areas that have supplied the FOREST INQUIRY.
Q 55
open log market in the past are drying up or are no longer available for
that purpose. Thus, high lumber prices cannot, in the future, attract logs
to the open market from depleted areas, or from areas controlled by sawmills requiring the production from their own areas for their own survival.
Unless the log-buying mills can get logs to process they cannot operate,
for there is no profit in sawing air. I do not think it safe to assume that
a high price for lumber will, in itself, assure them continuance as operating
units. The material needs of efficient log-buying mills contributing to the
social and economic stability of our communities must be considered in any
future forest programme.
It is worthy of note that in 1929, 354 mills with a daily capacity of
11,896 M.B.M. produced 2,356 millions of F.B.M., while in 1941, 557 mills
(an addition of 223 mills) had only an added daily capacity of 1,924 F.B.M.
and actually produced less lumber than the 364 mills operating in 1929.
The 1929 log production of the five major species—i.e., Douglas fir, hemlock, cedar, spruce, and pine—was 3,077,316,706 board-feet. In 1941 this
cut had increased to 3,437,320,637 board-feet. Thus, while sawlog production increased, saw-lumber production decreased. The explanation of
this paradoxical state of affairs is, I think, in some part at least the retrogressive trend in the grade of the logs being produced and manufactured.
The logging industry, no longer capable of western expansion, is creeping up the Coast northward. Logging activity now centres about 150
miles north of Vancouver. This means that the best stands in the valleys
and on the lower slopes are disappearing and operators are taking their
cut from higher altitudes, both topographically and geographically. It
follows that allied to and paralleling the depletion of the mature stands,
and as the timber-line recedes to mountain-slopes and higher latitudes,
log grades are slowly but inevitably declining in terms of relative percentage.
This change is manifest in the following figures of selected years of
the Coast cut of royalty-bearing timber—i.e., fir, cedar, spruce, and pine:—
Species.
1924.
1928.
1933.
1938.
1942.
Fir-
No 1                                                           	
Per Cent.
13
74
13
23
56
21
8
66
26
4
68
28
Per Cent.
9
69
22
17
55
28
12
61
27
6
74
20
Per Cent.
6
67
27
4
44
52
2
56
42
3
71
26
Per Cent.
4
63
33
9
51
40
3
50
47
1
60
39
Per Cent.
5
No. 2                —__	
64
No. 3                               	
31
Cedar—
No. 1                    -   	
13
No. 2                     _	
50
No. 3                                                  .   	
37
Spruce—
No. 1
4
No. 2                                                               -
52
No. 3              __—    	
44
Pine—
No. 1 	
No. 2                     _          —   	
3
57
No. 3                 	
40 Q 56
BRITISH COLUMBIA.
Combined averaged grades for these same four species:-
Grades.
1924.
1928.
1933.
1938.
1942.
No. 1 	
Per Cent.
17
66
17
Per Cent.
12
64
24
Per Cent.
8
62
30
Per Cent.
6
59
35
Per Cent.
8
No. 2    	
No. 3    _
58
34
Since 1924, then, the percentage of production of No. 1 logs of the
four species has decreased from 17 to 8 per cent, or more than 50 per cent.,
while No. 3 grade logs have increased in percentage from 17 to 34 per cent.
or 50 per cent. Hemlock logs are not included in this tabulation because
not subject to grading regulations, nor do these percentages take into consideration timber cut from royalty-free areas; for example, the Esquimalt
and Nanaimo Railway lands.
The change of grades throughout the years 1924-42 is shown in detail
in the following graph:— TREND OF LOG GRADES BY PERCENTAGES  (ROYALTY-BEARING TIMBER ONLY), FIR,
CEDAR,  SPRUCE,  AND  PINE,  1924-42.
8nr
1924
I9E5
1926
1927
1928
1929
1930
1931
1932
1933
193+
1935
1936
1937
I93S
1939
1940
1941
1942
n
TO
R5
""*»—
fin
ffii
so
4f>
4(1
*
55
in
Pi
?(1
h
in
<,
0
No. 1
No. 2
No. 3
57  FOREST INQUIRY. Q 59
This secular decline in the production of high-grade logs will lead to
changes in sawmill construction and operation. Large progressive mills
even now are developing smaller production units and the future will witness an increased installation of Scandinavian gang-saws designed to cut
small round logs in place of or in addition to the present gang-saws cutting
squared cants.
The yearly number of mills closed down has averaged 130 over the
ten-year period 1933-42. Generally speaking, these mills may be termed
marginal producers of small daily capacity. It is impossible to find a common factor for this mortality rate which is due to many causes, including
business failures through lack of adequate capital reserves, fire occurrences, exhaustion of cheap accessible stumpage, and inability to acquire
an additional and continuous supply of logs on the open log market.
In addition to sawmills producing sawn lumber others produce shingles and ply-wood. In 1942 four large ply-wood plants were in operation
as producing units integrated with their parent sawmills.
The number of operating shingle-mills has averaged eighty-one over
the ten-year period 1933-42, turning out a high-grade, edge-grained red
cedar shingle, with an estimated average daily capacity of 618 M. shingles.
Plant investments amount to about $4,000,000, while mill employees number
between 1,500 to 1,800 on an annual pay-roll of approximately $2,600,000.
Approximately 300'million board-feet of cedar logs are utilized for shingle-
manufacture—i.e., from 50 to 60 per cent, of cedar log production—and
as about 80 per cent, of the shingles produced are sold on the United States
market the prices of shingles and of cedar logs suffer a wide fluctuation
due to the quota system which restricts Canadian imports to 30 per cent,
of United States consumption of domestic and imported red cedar shingles.
This percentage is based upon the average consumption of the three preceding years. Imports exceeding the quota are subject to a duty of 25
cents a square. The result is that when the allowable quota is filled,
shingle-mills are forced to curtail production or close down. Future trade
agreements between Canada and the United States may, it is hoped, result
in the freer exchange of commodities between these two countries. This,
if achieved, will do much to stabilize our shingle industry and the price of
cedar. Cedar grows, in most instances, in mixed stands and is logged
with the other species of the stand. In consequence a steady market for
this species is necessary to ensure its proper utilization.
PORTABLE MILLS.
The high price of lumber has led to an increase in the use of portable
mills—especially for tie production. Many of these have a carriage of
less than 16 feet and do not utilize the side lumber that may be recovered
from the slab. A well-designed and properly operated portable outfit does
not have a higher percentage of unavoidable waste than the standard type
of mill, but unfortunately more than a few of them, due to poor equipment
and careless operation, are not within that category. It seems to me, that
portable tie-mills should be required to conform to a standard to be set by Q 60
BRITISH COLUMBIA.
the Forest Administration before being permitted to operate. " Free
enterprise " is sometimes a handy excuse for a laissez-faire policy but should
not be permitted to override the public interest in seeing to it that our
forests are not wasted by itinerant and irresponsible despoilers of good
wood.
LUMBER PRODUCTION BY SPECIES.
Year.
Total
Production.
Fir.
Hemlock.
Cedar.
Spruce.
Others.
1929	
1930 	
1931	
M.B.M.
2,460,500
1,928,598
1,342,164
934,373
1,133,344
1,464,632
1,610,347
2,023,708
2,072,675
2,044,876
2,276,033
2,324,408
2,407,800
2,303,552
Per Cent.
65.1
65.0
69.7
68.7
72.2
70.5
69.2
70.2
67.8
68.4
70.0
72.7
63.3
66.5
Per Cent.
10.8
12.1
9.7
13.0
11.3
13.9
14.3
14.7
15.0
14.8
13.7
9.7
9.4
13.2
Per Cent.
6.6
6.7
5.2
5.8
3.8
4.2
6.1
5.3
,6.3
6.8
7.3
7.5
8.5
7.8
Per Cent.
11.8
10.5
9.2
7.4
7.5
6.5
5.8
5.4
6.5
5.4
4.9
6.4
14.6
8.6
Per Cent.
5.7
5.7
6.2
1932        	
5.1
1933	
1934 ___      _   __ ____
5.2
4.9
1935 _.. _   _   	
4.6
1936 	
4.4
1937    	
1938- 	
4.4
4.6
1939_ ____ 	
4.1
1940 __     '
3.7
1941 _ _____   	
1942...     _
4.2
3.9
It will be remembered that for the last eight years the cut of Douglas
fir has averaged about 50 per cent, of the total Coast cut and 26 per cent,
of the total Interior cut.
We now see that of the total Provincial lumber production Douglas
fir contributes over 60 per cent, of the raw material for that production.
Bearing in mind also that the supply of mature Douglas fir on the Coast
is good only for about thirty years, it therefore follows that sawmills must
be prepared to manufacture other species if production of sawn lumber is
to be maintained at or near present levels. As I pointed out earlier, before
very long—as time is measured in matters relating to forestry—loggers
will have to turn their attention in an ever-increasing degree to the extraction of species other than mature Douglas fir. The inevitable corollary is
that millers will have to process and find and maintain markets for these
other species in their manufactured form until such time as " second-
growth " fir can be grown to merchantable size. It seems that hemlock
will have to fill the hiatus that now appears to me certain to occur between
the exhaustion of the mature Douglas fir forests and the maturity of the
young fir growth. The ugly duckling will grow into a swan. And there is
no reason why this should not be so.
HEMLOCK.
Western hemlock (Tsuga heterophylla) has suffered in the past in
foreign markets from the unsatisfactory characteristics of Eastern hemlock (Tsuga canadensis) with which it is likely to be confused by indiscrim-
inative buyers. Eastern hemlock has relatively poor strength qualities,
is brashy and splinters.    Western hemlock is much superior in quality to FOREST INQUIRY. Q 61
its Eastern relative. Then, too, Western hemlock has not been as highly
regarded in foreign markets in the past as its splendid qualities entitle it
to because of poorly seasoned shipments to those markets. Happily, many
misconceptions concerning the products of this tree species have been
removed by educational programmes carried on by trade extension organizations and by the diligent and persistent efforts of the millers of hemlock
to produce a high-quality lumber.
The need for the maintenance of foreign markets for this product is
manifest and efforts designed to that end should be continued and, in fact,
augmented.
Western hemlock is a tolerant tree and is usually found in mixed stands
in association with Douglas fir or cedar. It grows from sea-level to altitudes of about 4,000 feet, and where it is the dominant species in the stand
has a high yield ranging from 20,000 to 50,000 board-feet per acre. Trees
in dense stands grow tall and straight and usually clear of branches for
50 to 75 feet with only a slight taper. Its fine, even-grained wood is due
to its uniform rate of growth. The average mature tree reaches a height
of from 125 to 175 feet, and from 2 to 5 feet in diameter, although trees of
much greater size are occasionally discovered.
In proportion to its weight it is one of the strongest and stiffest of the
softwood species and can compete successfully with Douglas fir in many
fields of use. For some purposes it is, indeed, when properly seasoned,
superior to Douglas fir, especially for interior finishes because free from
resin, and for edge-grained flooring because of the uniform hardness of
the spring and summer wood accretion, thus ensuring slow and even wearing without ridges or splinters. Oddly enough, it grows harder with age.
Western hemlock as material for wooden containers has no superior.
When properly dried it is odourless, tasteless, light in weight, takes nails
without splitting, and is free from pitch, gum, or colouring matter.
Aesthetically it may be termed a beautiful wood, taking a soft and satiny
finish or one of shining polish and lustre. When impregnated with specially
prepared solutions of urea-formaldehyde resins it is converted into a hard
wood of many varied uses.
Green hemlock has a high moisture content. Douglas fir on the Coast
averages 37 per cent, while hemlock averages 66 per cent, moisture content.
This has led to the belief that hemlock is subject to excessive shrinkage
when dried. The fact is, however, that the shrinkage from a green to a 12-
per-cent. moisture content*1' results in a reduction in percentage of volume
in fir of 12.3 per cent., while the hemlock shrinkage is only 12.9 per cent.
Green hemlock weighs 44 lb. per cubic foot as against 39 lb. per cubic foot
for fir. This added weight of water in green hemlock restricts its rail
distribution because freight rates for lumber shipped by rail are based on
weight. This is not a factor in cargo shipments as water carriage rates
are based on volume of lumber and not weight.
After drying to a moisture content of 12 per cent, the situation is
reversed.    Fir, air-dried as stated, weighs 37 lb. per cubic foot as against
(1)  12 per cent, represents a low moisture content for lumber air-dried during the summer. Q 62 BRITISH COLUMBIA.
30 lb. for hemlock.    Well-seasoned hemlock is, therefore, under no handicap for shipment to rail export markets.
Green hemlock, due to its high moisture content and absence of resins
and protecting oils, is susceptible to attack from wood-destroying fungi and
spores producing sap stain and mould. H. W. Eades, of the Forest Products Laboratories, states:—(1)
" It is possible to prevent fungal growth on lumber in various practical
ways: It may be done by poisoning their food supply (the wood itself)
through application of antiseptics, by sterilization through the application
of heat, as in kiln-drying, or by simply reducing the moisture content of the
wood. This last is, of course, a primary method of prevention, and one that
entails a minimum of cost.
" The upper limit of moisture content favourable to the growth of wood-
inhabiting organisms is very high; the lower limit is at about fibre-saturation point; that is, when the wood has a moisture content, on an average, of
about 25 per cent. Reduction to a uniform moisture content of about 20 to
25 per cent., therefore, would inhibit sap-stain, mould, surface growth of
wood-destroying fungi, and development of any actual rot, during transit,
and would even give the wood a good chance to remain contamination-free if
stored at destination under unsanitary conditions. Even at moisture contents of between 25 and 30 per cent., growth of fungi would be slow.
" The moisture-content reduction must be carried out before shipment.
. . . From experiments carried out by the Forest Products Laboratory,
Vancouver, it has been found that the change in moisture content of air-
seasoned and kiln-dried lumber, properly stowed and protected during transit,
while en route from British Columbia to the United Kingdom, Australia,
South Africa, West Indies, or Eastern Canada, is generally negligible and
without effect on the condition of the lumber."
It seems to me an inescapable conclusion if we are to secure and maintain export markets for hemlock—as we must—it is essential that it be
shipped properly seasoned and not in a green state. The total kiln capacity on the Coast is entirely inadequate to perform this function.
Dry-kilns cost a considerable sum of money and their installation is
frequently beyond the financial ability of the smaller sawmill operator.
Then, too, air-drying lumber stock for long periods freezes capital needed
for continued production. The answer seems to lie in providing custom
kilns, built and operated by the Crown, unless the anticipated increase in
hemlock production would make such an enterprise financially attractive
to private interests. Short-term Government loans could be made available to finance mills air drying hemlock in areas wherein it would not be
feasible to erect custom kilns.
Paralleling any endeavour designed to encourage the export of hemlock in a properly seasoned state should be an equal effort having as its
objective the discontinuance of green hemlock export shipments. An educational campaign leading to the general acceptance of seasoning specifications for export shipments might prove effective. On the other hand,
if ways and means are found whereby the small sawmill operators may
kiln-dry their hemlock lumber at a cost within their capacity to pay for
(1)   " Sap Stain, Mould and Decay in relation to Export Shipments of British Columbia Soft Woods '
(1940), pp. 7 and 8. FOREST INQUIRY. Q 63
such service the economic necessities now impelling green shipments will
no longer exist.
In this digression into a discussion of hemlock it might be of interest
to reproduce some relevant statistics. I estimated from the evidence that
on the Coast about 44 billion feet of hemlock will be accessible when
required. This means that the Coast stands contain approximately 25 per
cent, of this species. We are now cutting about 500 million feet a year,
which is equivalent to 20 per cent, of our total Coast cut. In the Interior
(and accepting Mr. Mulholland's estimate of accessibility and volume)
there is accessible about 2V4 billion feet, which is a little over 2 per cent,
of the total Interior stands of all species. The cut averages a little over
10 million feet, representing about 3 per cent, of the total Interior cut.
For the ten-year period terminating December 31st, 1943, an average
of 56 per cent, of the hemlock production was processed by the sawmills
producing about 13 per cent, of the total sum of saw lumber.
The following tabulation presents in detail the 1939 (selected as a
normal year) market for green and dried hemlock sawn lumber and box-
shooks. It will be noted that 85 per cent, and 15 per cent, of shipments
to export markets were, respectively, of green and dried lumber. Attention is also directed to the better prices received for properly seasoned
lumber in comparison with green or unseasoned lumber. I am unable to
say what changes, if any, there have been in recent years in these relative
percentages:— Q 64
BRITISH COLUMBIA.
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^^ FOREST INQUIRY. Q 65
The pulp companies are heavy consumers of hemlock using, over a
ten-year average, about 38 per cent, of the total hemlock production.
Western hemlock is generally conceded to be one of the best of the
pulp-wood species. It yields, by the sulphite process, the best chemical
and rayon grade of bleached pulp, superior to all the Eastern American
and European pulp. As a major ingredient in the kraft process it yields
a pulp equal to the best grades in the world markets and when used as
the raw material for ground-wood pulps can be manufactured into newsprint papers of the finest quality.
We are very fortunate in having as a secondary source of available
raw material a reasonably adequate supply of this admirable species now
adaptable to so many diversified uses.
It seems to me, from a consideration of the evidence, the time has now
come when hemlock logs should be graded with concomitant adjustment of
royalty rates. The present rate of 60 cents per M. appears incommensurate with present and future hemlock production.
I would suggest in the revision of royalty rates on hemlock logs that
the position of the pulp companies be kept in mind. Royalties should not
be fixed at a rate which would prohibit the use of graded hemlock logs for
conversion into pulp. The pulp and paper industry in this Province occupies an important part in our industrial life and, unlike Swedish and other
European mills, produces a high quality product requiring a like high
quality of raw material. While, as I have pointed out, the pulp companies
should be able to utilize some proportion of our wood and sawmill waste
any policy which would compel that industry to use inferior material to
too great a degree would result in the production of an inferior product
with the eventual loss of profitable markets and consequent detriment to
a large section of our people.
That brings me back to a consideration of the subject under discussion:   conversion plants—and in particular the pulp companies.
PULP COMPANIES.
There are six pulp and paper companies in British Columbia with
a combined capital investment in plant and equipment (in 1942) of
$58,237,083. I am unable to say what the exact value of their timber holdings is, but as a rough estimate I would consider that $20,000,000 might
not be too wide of the mark.
Few of the public, I think, realize the importance of the pulp industry
to the social and economic life of this Province. Too little is also known of
the huge, highly organized and complex units that the ordinary travellers
glimpse from the decks of our coastal steamers.
Pulp companies need an abundance of water in their various processes
and for power production. Consequently, the larger plants are situated
in places supplying this requirement and in areas remote from our urban
centres.    Settled communities with all the amenities of city life now sur- Q 66
BRITISH COLUMBIA.
round many of these plants housing the men and their families who, in
some capacity or other, keep the wheels turning and the pulp flowing.
These communities have a combined population of over 10,000. Employees numbered 3,574 in 1942, which means that the ratio of capital investment per employee was $16,295 as compared with $2,895 for the sawmill
industry. Average hourly wages paid amounted to 75 cents—the highest
rate paid in the secondary forest industries. Wages and salaries paid in
1942 amounted to $8,824,524 and millions of dollars were spent in the purchase of raw material and supplies of all kinds.
Stability of employment is, of course, of manifest importance in fostering the establishment of permanent and prosperous communities. Year
by year employment in the pulp and paper industry is free from marked
seasonal changes. The following chart illustrates the comparative employment variations in the three leading secondary forest industries:—
AVERAGE SEASONAL VARIATIONS  IN EMPLOYMENT FOR THREE LEADING
SECONDARY FOREST INDUSTRIES IN BRITISH COLUMBIA.
(Based on six-year period, 1935-40.)
SAWMILL EMPLOYMENT
SHINGLE  MILL  EMPLOYMENT
PULP fr PAPER MILL EMPLOYMENT
J
/
\
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fc      107.5
l
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117.5
115.0
112.5
110.0
107.5
105.0
102.5
100.0
97.5
95.0
92.5
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87.5
85.0
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JFMAMJJASONDJ
jfmamjjasond;
MONTH
JFMAMJJASONDJ
It is axiomatic that any process that converts raw material into manufactured form requires labour services in direct ratio to the degree of
manufacture. In other words, the higher the degree of manufacture the
greater number of men need be employed to produce the end product. For
each 1,000 feet of logs consumed the pulp and paper companies provide
employment equivalent to 3.3 man-days, as against 1.67 man-days for all W--;**...
_______•________>-*_.'         .. , AMtlSB"* hBS     *... •        -	
i*3**Mr.E;
•   - *' -' 1
I
A typical British Columbia pulp and paper mill.
67  FOREST INQUIRY.
Q 69
other forest industries. The following chart illustrates the degree of
manufacture of various forest products and the man-days of labour
required for each degree:— Q 70 BRITISH COLUMBIA.
Each successive degree of manufacture of raw material increases the
gross value of that material. A log containing 1,000 F.B.M. taken into
a pulp plant emerges in manufactured form worth $58.50 more than its
original value as a log. The composite figure for all other log-using industries indicates an addition of $15 in value to each 1,000 feet of log consumption. With logs purchased at $14.82 per M. by the pulp companies and at
$15.50 per M. by all other log-using industries the following graph represents comparative additional values added by manufacture in 1942:— FOREST INQUIRY.
Q 71
PERCENTAGES OF COST OF LOGS, AND VALUE ADDED BY MANUFACTURE
IN  THE PULP AND PAPER INDUSTRY AND OTHER LOG-USING
INDUSTRIES OF BRITISH COLUMBIA, 1942.
□
Percentage of Value Representing Addition of Value by Manufacture.
Percentage of Value Representing Cost of Logs Consumed.
79.8%<
20.2%,<
A
49.2%
50.8%
PULP AND PAPER
INDUSTRY
OTHER LOG-USING
INDUSTRIES Q 72 BRITISH COLUMBIA.
As I mentioned in an earlier part of this report I thought the future
would see the sawmill industry moving to install manufacturing units for
the processing of sawmill-waste. In particular it will be recalled that
one large sawmill was building a pulp-mill as an adjunctive unit. Several
pulp-mills have built and are operating sawmills as subordinate units for
the purpose of manufacturing high-grade logs into specialty lumber. The
principle is one of integration in both instances.
The pulp companies operating sawmills sort the logs which may yield
high-grade lumber and allocate these to those mills. Those selected logs
represent from 20 to 25 per cent, of the total logs received and yield about
50 per cent, high-grade lumber. The volume of wood rejected by the
sawmills goes to the pulp-mills for processing. This method of close and
selective utilization results in the maximum economic use of the raw
material and minimizes waste.
Pulp is made from cellulose fibres. These fibres formerly were
extracted from linen and cotton rags, but in the development of pulp and
paper production wood has become the basic raw material from which the
cellulose now is recovered.
The average values of the chemical constituents of soft-woods are:—
Per Cent.
Cellulose   60
Lignin   30
Pentosans      8
Resins, etc.      2
The object of all pulping processes is to separate from the wood the
cellulose fibres in varying degrees of purity, depending upon the desired
end product or use for which the pulp is designed.
There are two distinct methods in use by which wood becomes pulp:
mechanical and chemical. Ordinary mechanical pulp is referred to as
ground-wood pulp, taking this name from the manner in which it is brought
into existence—i.e., the wet grinding of wood blocks by large revolving
grindstones. The yield of pulp by this process is approximately 97 per
cent, of the original wood volume. This class of pulp is used in the manufacture of building and roofing material and for non-permanent papers
such as newsprint.
The term " newsprint " is not confined to paper used only in the printing of newspapers. This class of paper is also used for telephone directories, catalogues, railway guides, wrapping-paper, and so on, and is of a
relatively inferior grade due to the shortness and weakness of the fibres.
It also deteriorates and turns yellow when exposed to sunlight and air
because of the reaction thereto of the lignin content of the pulp.
Chemical pulp is the general description of the product derived from
chemical reactions which dissolve most of the lignins and pentosans from
the wood, leaving cellulose as an undissolved residuum. Chemical pulps are
classified according to the process used—i.e., sulphite pulp, sulphate or
kraft pulp, and soda pulp.    The soda process is not used in this Province. FOREST INQUIRY. Q 73
In the sulphite process the pulp is obtained by digesting wood chips in
an acid bisulphite liquor at high temperature and pressure. As the wood
constitutents, except cellulose, are dissolved in the cooking process the pulp
yield is equal to about 45 per cent, of the prepared wood. This type of
pulp has a wide variety of uses and when specially prepared and bleached
is the raw material for industries manufacturing rayon, cellophane, photographic films, explosives, plastics, and related substances.
The sulphate or kraft process is basically the same as that of the sulphite process except that sodium sulphate is used as the dissolvent, and as
this process is more rapid than the others its effect is less harsh upon the
cellulose fibres, resulting in pulps of high strength suitable for strong
wrapping and bag papers and such like. The term " kraft " in fact, comes
from a Swedish word meaning " strength." The yield of sulphate pulp
is 47 per cent, of the prepared wood volume.
From the foregoing sketchy description of the various methods of
producing pulp it would appear that pulp-mills are not utilizing about 55
per cent, of the prepared wood volume. In one sense that is true, but it
must be remembered the 45-per-cent. recovery of pulp returns a much
greater value than would be received from the wood volume if converted
into lumber or other form of forest product. Then, too, in the sulphate
process the organic material dissolved from the wood is recovered from
the liquor and burned as fuel.
Sulphite mills, after long research, have discovered methods whereby
it is anticipated the material in suspension in the sulphite liquor will also
be recovered and completely utilized. This liquor contains, in addition to
material for fuel, sugar from the pentosan or carbohydrate percentage of
the wood volume and this substance can be extracted for the manufacture
of ethyl alcohol and yeast.
As I had occasion to comment before, I believe the future will see
wood regarded as the basic material from which chemists will extract
values probably surpassing the returns from either lumber or pulp and
paper manufacture. The pulp companies, because of the nature of their
product and with their highly skilled technical personnel, are in a preeminent position to take full advantage of new discoveries in wood
chemistry.
Western hemlock is suitable for all pulping purposes. Balsam and
spruce are also suitable species except for dissolving pulps. Douglas fir,
cedar, and jack-pine are usable in the sulphate process. Jack-pine, or lodgepole pine, is not indigenous to the Coast but the supply of this species in
the Interior is virtually inexhaustible and one pulp company draws upon
this supply for 20 per cent, of its wood requirements.
A greater use of this species, if economically practicable to transport
from the Interior, would remove considerable pressure on our Coast forest
for future supply of raw material for sulphate or kraft pulp. At present
lodgepole pine is costing $14.80 per cord f.o.b. the mill. Included in this
total are royalty (at 40 cents a cord), freight on the P.G.E. Railway
to Squamish (at 8V2 cents per 100 lb.), and unloading costs, amounting in Q 74
BRITISH COLUMBIA.
all to $8 a cord. Some adjustment of these charges—especially freight
rates—should encourage greater utilization of the Interior lodgepole
stands, thus not only lessening the drain on Coast sulphate pulp species,
but offering employment to farmers and settlers in the Interior during
slack seasons of the year.
The relative percentages of the various species consumed by the four
largest pulp companies follows:—
Mill.
Hemlock.
Spruce.
Balsam.
Douglas
Fir.
Cedar.
Lodgepole
Pine.
Sorg's _   	
B.C. Pulp & Paper 	
Per Cent.
40
83
57
27
Per Cent.
1
1
27
53
Per Cent.
7
16
16
3
Per Cent.
20
8
Per Cent.
12
9
Per Cent.
20
Pacific Mills 	
....
The timber resources of the industry are set out hereunder:—
M.F.B.M.
Pulp leases   2,980,900
Pulp licences   2,588,400
Pulp timber sales  1,401,000
Crown grant       640,200
Per Cent.
33.1
28.8
15.6
7.0
Total  9,004,500
The approximate rentals, royalties, and Crown stumpage fees paid on
these lands during 1943 were:—
Rentals.
Royalties
(all Classes).
Stumpage.
Total Dues
paid.
$11,595.15
16,672.00
7,720.46
7,624.46
20,998.37
183.32
2,082.00
$112,496.21
$11,861.32
Pulp licences   	
Pulp timber sale ... 	
Crown grants  	
Timber licences    	
Timber leases  ; — —	
Timber sales ___ _ 	
$191,233.29
These timber lands are largely pulp tracts, the average stand containing about 34 per cent, hemlock, 26 per cent, cedar, 21 per cent, spruce, 10
per cent, balsam, and 9 per cent. Douglas fir. The over-all average density
of these stands is estimated to average 17,000 F.B.M. The pulp companies
cut from their own limits on an average about 52 per cent, of their total
wood requirements and purchase the remainder on the open log market,
thus competing with sawmills dependent upon this source of supply. The
trend toward greater production of hemlock lumber will aggravate this
condition in the future. The industry absorbs, on the average, 10.5 per
cent, of the total Provincial cut and 11.7 per cent, of the total Coast cut.
Wood-pulp and paper products are consumed by Canadian and export
markets. The disposition for 1943 appears in the following table and
the high percentage of the product which finds its way to the export market is of value in the creation of foreign exchange credits.    This export FOREST INQUIRY. Q 75
trade totalled, in 1943, $23,623,498 while Canadian sales amounted to
$6,734,507. The sum of these figures is $30,358,005. The gross value of
production of the forest-using industries in 1943 was $118,434,000; therefore the pulp companies in processing 11 per cent.(1) of the total log cut
produced about 25 per cent, of the gross value of our forest industries
production for that year.
(1)   The evidence does not disclose the exact percentage of log consumption by the pulp industry in
1943.    I have, therefore, used the average figures for 1922-40 as a basis for comparison.. Q 76
BRITISH COLUMBIA.
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P                                                  Ph FOREST INQUIRY. Q Ti
The total value of pulp and pulp products in 1939 (a normal year)
amounted to $18,697,888, while the total value of the forest industries production for that year amounted to $88,221,000. The percentage is approximately the same—i.e., roughly 22 per cent.—and in that year this value
resulted from the processing, by the pulp companies, of 7.6 per cent, of
the total Provincial cut.
The foregoing brief summary of the evidence clearly establishes that
the pulp and paper companies play an important part in the economic
structure of this Province, and not only make a substantial contribution
to the stability of our labour market but convert the raw material of our
forests into products of greater value than any other forest-using industry.
In other words, the ratio of wealth production to forest depletion is higher
for this industry than any other.
The technological advance of this industry is highly commendable and
the answers to whatever problems remain unsolved are being assiduously
sought. But other questions, beyond the power of industry itself to resolve,
limit its expansion and, indeed, threaten its future existence. I refer, in
this regard, to the effect of the American tariff restrictions upon the importation into that country of the more highly manufactured forms of pulp
products and to what is more germane to the scope of this inquiry, and
of much more general and public consequence, the fact that the timber
resources owned or controlled by the pulp companies are far from adequate
to ensure a perpetual supply of the wood requirements of the industry.
Their present policy of attempting to conserve what they now have by
buying pulp species on the open log market is, at best, a temporary palliative and while alleviating the situation to some degree does not offer
a sound solution. The pulp companies' basic requirement is a continuity
of supply from areas logged on a sustained-yield basis. This objective
can be achieved by a programme of planned forest management wherein
the needs of this industry will find proper recognition.
The disadvantageous effect of the American tariff is a subject concerning which I can offer no suggestions of value, except to mention that
our export of pulp-logs to American pulp companies might, perhaps, open
a field for discussion and reasonable compromise.
The subject of log exports demands some understanding of the various
forest tenures of the Province. This seems to me, then, just as good a
place as any to turn to the subject of land ownership and tenures.
LAND OWNERSHIP AND TENURES.
Ownership of productive forest land and the volume of timber thereon
may be divided into two broad classifications: Crown ownership and
Others.
Crown ownership, used in this sense, includes not only unalienated
Crown land and timber, but also Crown timber over which cutting rights
have been granted under various forms of temporary tenures. Q 78
BRITISH COLUMBIA.
" Others " means land and timber in private ownership, such as Crown
grants, Indian reserves, Esquimalt and Nanaimo Railway belt, municipally
owned watersheds, small farm wood-lots, and other small holdings.
Bearing in mind the relevant sense in which those terms are used,
the following tabulation, based upon the 1937 estimates (relatively the
same to-day) shows the percentage distribution between Crown ownership
and Others:—
Crown
Ownership.
Others.
Total.
Per cent, of ownership of total Provincial acreage of produc-
93
80
92
90
85
93
89
86
95
7
20
8
10
15
7
11
14
5
100
Per cent, of ownership of Provincial forest land on Coast
and in Interior (acres)—
100
100
Per cent, of ownership of total Provincial acreage of mature
stands (22 million acres)   	
Per cent, of ownership of mature stands on  Coast and in
Interior (acres)—
Coast (7 million acres)    _ ___        	
100
100
Interior (14 million acres)      	
100
Per cent, of ownership of total Provincial volume of merchantable timber (255 billion feet)         	
100
Per cent, of ownership of volume of merchantable timber on
Coast and in Interior—
Coast (155 billion feet)    ____           _
100
Interior (100 billion feet)  	
100
From these figures it will be seen that the Crown owns, in the broad
sense, 93 per cent, of the total Provincial area of productive forest land,
90 per cent, of the total Provincial acreage of mature timber stands, and,
subject to cutting rights, 89 per cent, of the total volume of merchantable
timber. On the Coast the Crown owns 80 per cent, of the productive
forest land, 85 per cent, of the acreage of mature stands, and, subject to
cutting rights, 86 per cent, of the Coast volume of merchantable timber.
In the Interior the Crown owns 92 per cent, of the productive forest
land, 93 per cent, of the acreage of mature stands, and, subject to cutting
rights, 95 per cent, of the Interior volume of merchantable timber.
The present relation of Crown ownership to private ownership is the
result of the long-continued and wise governmental policy of restricting
the absolute alienation of Crown timber lands.
While the Crown retains title to land areas growing merchantable
timber, the right to cut the timber thereon has been granted, under various
forms of tenure, to licensees under timber licences, to lessees under timber
leases, and to timber purchasers under timber sale, contracts, and others.
These various cutting rights may be described (for want of a better term)
as " temporary alienations."
The following table, based upon the 1937 estimates (but also relatively
the same to-day)  indicates, in terms of percentage, the extent of these FOREST INQUIRY.
Q 79
temporary alienations—i.e., the grant of cutting rights over Crown timber
on Crown lands:—
Crown
(unalienated).
Temporary
Alienations.
Other
Owners.
Total.
Per cent,  of total  Provincial  acreage  of
75
53
87
57
39
86
15
32
6
32
47
9
10
15
7
11
14
5
100
Per   cent,   of   mature   timber   stands   on
Coast and in Interior (acres) —
100
100
Per  cent,   of  total  Provincial  volume   of
merchantable timber    ___.
Per cent, of volume of merchantable timber on Coast and in Interior—
100
100
Interior    	
100
We now see that, while the Crown owns 90 per cent, of the total of
22 million acres of mature forest land in the Province, cutting rights,
under various forms of tenure, have been granted over 15 per cent, thereof.
On the Coast, cutting rights have been granted on areas totalling 32
per cent, of the Coast acreage of merchantable timber, representing 47 per
cent, of the volume of merchantable timber, thus leaving unalienated, in
Crown ownership, 53 per cent, of the Coast acreage and 39 per cent, of
the timber volume.
In the Interior, 87 per cent, of the acreage of mature timber of that
area and 86 per cent, of the volume of mature timber remains in the Crown.
Cutting rights, or temporary alienations, under the various forms of
tenures have been granted over 3,888,678 acres as of February, 1944.w
Tenures and acreages are as follows:—
Tenures.
No. of
Contracts.
Acreage.
Per Cent.
2,850
3,721
205
33
152
252
1,795,817
978,862
424,671
335,611
197,939
155,778
46.2
25.2
10.9
8.6
5.1
4.0
Totals.- —      	
3,888,678
100.0
An ownership analysis of various tenures discloses that, in 1944, cutting rights were held by 2,877 persons or corporations. Of these 2,877
holders 58 or 2 per cent, thereof held cutting rights over 51.7 per cent, of
the total area included within the various tenures, while 2,819 holders,
or 98 per cent., held cutting rights over 48.3 per cent, of the said area.
(These figures do not include unalienated timber lands held by the Esquimalt and Nanaimo Railway Company.)
(1)  The 1937 estimates were based on a total of 3,397,500 acres alienated under various forms of tenure.
The difference does not make any significant change in the percentage calculations. Q 80 BRITISH COLUMBIA.
The following table shows the 1944 frequency distribution of timber
holdings arranged in order of magnitude according to the total acreage of
each individual holder:—
No. of Holders
Total Acreage held. in each Class.
Less than     5,000 2,729
5,000 to     9,999  72
10,000 to 14,999  30
15,000 to 19,999  8
20,000 to 24,999  7
25,000 to 29,999  6
30,000 to 34,999  4
35,000 to 39,999  4
40,000 to 44,999  2  •
45,000 to 49,999  3
50,000 to 54,999  2
60,000 to 64,999  1
65,000 to 69,999  1
70,000 to 74,999  1
75,000 to 79,999  1
80,000 to 84,999  1
90,000 to 94,999  1
185,000 to 189,999 .  1
205,000 to 209,999  1
220,000 to 224,999  1
245,000 to 249,999 , '.  1
Total 2,877
The evidence does not furnish me with any material from which I can
translate acreage into volume in each classification nor can I segregate
these various holdings into Coast and Interior areas, but some details of
the 1943 Coast cut for the Vancouver district are of relevant interest and
are as follows:—
No. of Logging     Per Cent, of
Cutting more than   (M.F.B.M.)— Operations. Total Cut.
200,000   1 10.0
150,000   1 9.0
75,000   3 13.0
50,000   4 11.0
25,000   7 12.0
20,000   4 3.8
15,000   4 3.6
10,000   14 8.0
5,000   34 12.0
2,500   44 6.5
1,000  ;  68 5.5
500   67 2.3
100   190 2.3
Cutting less than 100 M.F.B.M  236 1.0
Total  677 100.0
It would thus appear that 24 logging operations out of 677 cut in
excess of 15 million feet a year or, in other words, 3.5 per cent, of the
operators produce over 60 per cent, of the total cut for that district. FOREST INQUIRY. Q 81
When it is disclosed 58 out of a total of 2,877 persons or corporations
control over 50 per cent, of all the alienated merchantable timber areas
of the Province, and that on the Coast 24 out of 677 logging operators
produce over 60 per cent, of the volume of the cut, and when it is understood these figures do not include the timber presently held by the Esquimalt and Nanaimo Railway Company, it seems to me an inescapable
conclusion that the great part of the alienated timber resources of this
Province are controlled by a comparatively few men. The success of any
future forest policy designed to place our forests under a system of planned
management must depend, to a degree, upon the extent to which these
holders co-operate with the Crown in a mutual endeavour to reach that
objective.
It will be seen, when I come to examine in detail the various classes of
tenures, that the Crown has the power to impose conditions upon those
presently holding the right to cut timber on Crown lands and as the Crown
still retains title to 39 per cent, of the merchantable Coast stands in the
future disposition of which terms may also be imposed, I do not anticipate
any real difficulty in securing the necessary and desired co-operation from
licensees, lessees, or purchasers of Crown timber.
There are, however, a group of owners of Crown-granted lands, which
grants carry the right to the timber thereon, and these owners consider
themselves in a different position, in relation to any Crown regulations
affecting their timber or timber lands, than those whose only right is to
cut timber on land, the title to which remains in the Crown.
The relative importance of the various classes of tenures and Crown
grantees, in relation to the cut, appears when the average log production
for the ten years, 1934-43, is examined hereunder:—
Class of Owner. Average Cut. Per Cent.
Crown grants to 1887  1,025,382,594 33.2
Crown grants, 1887-1906  111,186,064 '  3.6
Crown grants, 1906-1914  58,681,534 1.9
Crown grants, 1914-1943  49,416,029 1.6
Timber licences   827,718,480 26.8
Timber leases   506,514,293 16.4
Timber sales   447,832,759 14.5
Pre-emption, stumpage reservations, and
miscellaneous  43,239,025 1.4
Dominion lands   15,442,509 0.5
Hand-loggers' licences  3,088,502 0.1
Total, ten-year average  3,088,501,789      100.0 Q 82
BRITISH COLUMBIA.
The percentage figures are reproduced in the form of this graph :-
FOREST CUT PROM VARIOUS TENURES.    YEARLY AVERAGE FOR
TEN YEARS, 1934-43.
1,200
K
I.IOO
<n
I.OOO
900
Crovvn   Grants
to 1887
a
UJ
2
<
Ul
2*
800
1-
U
Ul     700-
u.
1L
O     600
■/>
Q    30°
Timber Licences
NO       \0   S?    (fl U)
0\    °N "N     (J
CO    Ul1* flz
tO     ""QU
o - + £*
tn  cn ci wu
7 TTSS
N    lO+C-j
- — «5
ui     1   III
1-         -*«
<   TJ'O FA
5 1 1"!
J
•£     4O0-
300
Timber Lease
7-       r    I z°
200
X
Timber Sales
u    1 I3S
too
O-
33-2%
26 e.%
ie+%
14-5^.
rn°
Per   Cent   of  Total.
For the purpose of comparison I wish to set out, at this place, the
relative average amount of revenue the Crown received from these owners
for the same ten-year period.    Annual average revenue for these years
amounted to $3,197,408. Percent-of
__.         . .                                                                  Average Annual Total Averagre
Class of Owner.                                                                   Revenue. Revenue.
Crown grants to 1887      	
Crown grants, 1887-1906        $55,526.00 1.74
Crown grants, 1906-1914         29,155.00 0.91
Crown grants, 1914-1943          45,886.00 1.43
Timber licences      1,188,315.00 37.17
Timber leases         538,715.00 16.85
Timber sales      1,103,873.00 34.52
Pre-emption,   stumpage   reservations,
and miscellaneous          46,523.00 1.43
Dominion berths         151,259.00 4.73
Grazing and trespass         38,156.00 1.20
Total  $3,197,408.00 100.00 FOREST INQUIRY.
Q 83
These figures are represented in the following graphic form:—
900
£
< 800
_J
-1
o
Q  7001
U 600
in
D 500
<
o
300
Timber Licences
37- IA-'/,
Forest Revenue from Various Tenures
Yearly Average for Ten Years 1934-1943.
Timber   Sales
Z4-5%
Timber Leases
is-ey.
•5.
Z. U -  '
io a n *
7 <~~
colio
_ h	
!_•?,&
5 Tr   a"
ttns
Per  Cent   of Total
The comparison I wish to emphasize is the relation of the cut from
Crown-granted areas to the amount of direct Crown revenue received
therefrom. It now appears that while the cut from royalty-free areas,
Crown-granted up to 1887, has averaged over 33 per cent, of the total
Provincial cut, the Crown has not received any direct revenue therefrom.
Other areas covered by grants from the Crown since 1887 produce 7 per
cent, of the total cut and contribute a little over 4 per cent, to the total
forest revenue. Combining these figures we see that the cut from Crown-
granted areas amounts to over 40 per cent, of the total cut, while the
Crown receives therefrom, in direct forest revenue, a sum equal to about
4 per cent, of the total forest revenue. I shall have occasion to refer to
these figures at a later stage of this report when considering the question
of Crown regulation of private timber lands.
This concentration of ownership above referred to has another aspect.
About one-half of the Coast mills are dependent either wholly or in large
part on the open log market for their log-supply. This simply means some
log-producing concerns do not operate sawmills and some sawmills do not
hold any reserves of timber. The open log market is the channel through
which the process of extraction and conversion are integrated by these two
classes of producers and consumers; in other words, it is the link which
joins them together.
As the mature timber is gradually disappearing from the more accessible areas and as the remaining stands are held by a comparatively few
owners, undoubtedly as reserves for their own mill operations, it follows Q 84
BRITISH COLUMBIA.
that the log-supply for the open market will decline, resulting in a shortage
of logs necessary to maintain the future operations of log-buying mills.
While it may be possible for the production from some Crown timber
working-circles to be allocated to supply this market ( a subject to which
I shall return later), it seems to me the future of those mills depending
solely, or in most part, on the open market supplies for their logs is none
too bright.
PROVINCIAL FOREST RESERVES.
Included in areas classified as in Crown ownership are forty-four Provincial forest reserves. In 1925 the then Minister of Lands, in introducing legislation providing a fund for the development and management of
these reserved areas, stated that " the primary object of their creation is
to ensure a continuous production of timber."
The latest statistical material made available to me appears in the
following tables:—
COAST.
Forest.
Total Area.
Mature
Timber.
Immature
Timber.
Forest Land
not
restocked.
Mature
Timber.
Broughton	
Gilford	
Harb_.ed.own_	
Hardwicke	
Sonora_  —
West Thurlow.-.
East Thurlow—_
Redonda 	
Nimpkish	
Sayward	
Douglas	
Powell.__ ____
Loughborough __
Seechelt 	
Toba	
Kingsome 	
Seymour	
Moresby	
Totals__
Acres.
43,100
111,940
69,610
18,110
38,620
19,440
25,460
42,620
887,000
394,490
445,540
434,660
598,430
774,420
763,910
454,660
580,870
851,890
6,554,770
Acres.
18,760
54,790
39,100
4,440
12,330
1,010
2,810
12,090
334,530
273,620
100,530
83,060
160,560
107,160
77,270
63,700
86,970
238,160
1,670,890
Acres.
4,230
3,120
12,860
1,890
9,530
9,990
9,120
3,720
33,930
26,790
2,560
55,860
35,770
58,040
33,720
7,000
8,460
325,470
Acres.
5,520
6,490
5,580
5,710
1,970
600
700
4,500
30,470
64,710
22,900
45,650
51,760
25,040
19,180
11,750
28,650
15,600
M.B.M.
376,400
1,485,900
993,500
119,200
344,900
27,900
75,000
181,100
10,891,500
12,146,000
2,560,000
2,958,900
4,084,800
3,314,900
2,199,800
1,464,150
1,999,710
6,235,380
346,840     I  51,459,040 FOREST INQUIRY.
Q 85
INTERIOR.
Forest.
Total Area.
Mature
Timber.
Immature
Timber.
Forest Land
not
restocked.
Mature
Timber.
Aberdeen Mountain	
Babine _ 	
Barriere..  	
Elk  	
Flathead	
Fly Hill __._   _
Grizzly Hills... .__
Inkaneep    _
Kettle ___   __
Little White Mountain
Larch Hills 	
Mount Ida   __
Martin Mountain	
Momich   	
Monte Hills	
Morice  	
Nehalliston..— 	
Nicola  - __
Niskonlith 	
Okanagan	
Shuswap 	
Spallumcheen 	
Tranquille___ 	
Yahk  _ ___.
Lower Arrow  	
Upper Arrow	
Totals _____  ..___.
Acres.
75,800
1,300,300
340,400
1,552,900
340,400
162,900
379,600
205,300
808,200
186,000
32,600
33,100
56,400
1,001,900
222,920
579,880
707,300
217,400
286,100
634,400
230,900
480,100
188,800
624,700
481,190
1,193,480
Acres.
21,970
237,400
85,400
159,720
93,280
52,840
87,920
46,900
87,820
46,700
9,890
8,440
22,490
238,520
56,500
82,550
195,100
77,200
114,700
218,640
89,460
169,700
71,940
158,890
34,590
179,320
12,322,970
2,547,880
Acres.
48,140
502,900
118,200
271,080
38,480
67,200
186,640
88,790
333,330
109,000
19,200
20,520
22,800
183,580
110,950
140,160
227,900
97,390
99,900
286,850
63,850
161,500
73,820
296,430
86,390
170,340
Acres.
227,700
38,820
186,830
24,400
21,670
141,400
2,670
1,210
5,360
108,420
24,790
114,720
150,900
21,570
54,400
23,760
19,250
14,900
26,590
36,000
62,690
23,710
M.B.M.
237,100
2,500,000
683,500
1,676,800
1,199,500
299,300
742,100
297,300
465,000
282,480
94,700
39,900
90,100
2,461,300
223,090
782,800
1,766,000
320,700
988,700
1,219,000
935,700
1,732,500
396,400
1,598,900
275,600
2,231,780
3,825,340
1,331,760
23,540,250
These forest areas are not open for sale for agricultural or other pursuits and, while timber alienation thereon has been through the medium
of timber-sale contracts or other forms of tenure into which the forest
administration could write any terms it chose to impose, the evidence is
clear that no proper programme of forest management has been enforced
in these forest reserves. Thus, for example, loggers operating in these
reserves have not been obliged to leave the cut-over land with sufficient
seed-trees to ensure regeneration.
The result is clearly seen in the acreage classified as " forest land not
restocked," amounting on the Coast to 346,840 acres and in the Interior
to 331,760 acres or a total of 678,600 acres. I should add that destruction
by fire has also made its usual contribution to this unhappy picture. It may
be assumed that approximately 50 per cent, of these denuded acres will
require replanting.
No real attempt has been made to limit the cut on alienated areas to
the sustained-yield capacity of the area, although recently increasing attention is being given to silvicultural practices in the Interior forest reserves
areas—i.e., marking of selected trees for cutting is now in the experimental
stage.
To express the conclusion compendiously, it is manifest that very little,
if anything, has been done during the past twenty years to bring to fruition
the ideal objective contained in the speech of the Minister of Lands in 1925. Q 86 BRITISH COLUMBIA.
The reason is simply lack of an adequate staff to conduct the necessary
research work, which condition in turn, stems from lack of sufficient funds
—a sombre thread which runs through all aspects of forest administration
in this Province.
The forest reserves on the Coast contain a great part of the 39 per
cent, of the volume of merchantable timber remaining in Crown ownership, and therefore are destined to play an important role in any future
planning.
The urgent necessity of financing surveys, and intensive study of the
potentialities of our forest reserves with a view to their proper management and utilization in the future, emphasizes the one essential fact basic
to all future forest planning: Forest revenue accruing to the Crown must
be recognized as capital to be reinvested in our forests to ensure their
continued productivity. To persist in the pursuit of any other policy is
to invite a deserved disaster.
FORMS OF TENURE.
Forms of forest tenure, in which term I include Crown grants and
temporary alienations such as licences, leases, and timber sales, are somewhat complicated and difficult to understand unless viewed in the light of
their historical background and statutory development.
In the pioneer days of the Province, timber land as such was not
regarded as of any great value. The earliest disposal of Crown lands in
1858 carried with it all the natural resources appurtenant thereto, and in
case any doubt existed that timber was included in the grant, a proclamation of 1859 by the Governor of the Colony of British Columbia recited
that " unless otherwise specially announced at the time of the sale, the
conveyance of the land shall include all trees. . . ." Incidentally, the
prevailing price for land, timbered or untimbered, was 10 shillings an
acre. This was considered too high a valuation, and in 1861 the price was
reduced to 4s. 2d. an acre. In 1870 the price remained the same, but the
wording was changed to read, "$1.00 per acre " in accordance with the
Currency Ordinance of 1867.
The Land Ordinance of 1865 contained the following provision :•—
" 53. Leases of an extent of unoccupied Crown lands may be granted by the
Governor to any person, persons or corporation duly authorized in that
behalf for the purpose of cutting spars, timber or lumber, and actually
engaged in those pursuits subject to such rent, terms and provisions
as shall seem expedient to the Governor."
This ordinance or proclamation introduced for the first time the system of granting the right to cut timber on Crown lands without alienation
of the land itself. It is the foundation upon which our modern tenure
systems are based, and although temporary alienations have taken many
and varied forms, in substance the principle has remained unaltered
throughout the years, resulting in the present Crown ownership of productive forest land areas. FOREST INQUIRY. Q 87
While this principle was written in the early laws of the Colony of
British Columbia, Crown lands, timbered or otherwise, were still alienated
from time to time by absolute conveyance. After the union of 1866 of
British Columbia and Vancouver Island as one Province this practice
continued.
In 1871 British Columbia entered Confederation and became part of
the Dominion of Canada. By section 11 of the Terms of Union the Dominion undertook to construct a railway to connect the seaboard of this Province with the railway system of Canada, and in return this Province agreed
to transfer to the Dominion certain public lands in aid of such railway-
construction. Difficulties arose that are not pertinent to this inquiry, and
in 1883 and 1884 these differences were finally resolved between the two
Governments as a result of which the Province conveyed to the Dominion
a belt of land extending for 20 miles on each side of the main line of the
Canadian Pacific Railway, totalling 17,000 square miles. Then, because
some of this land was valueless for agriculture or other productive enterprise, the Province also conveyed to the Dominion as " lieu lands " a block
containing 5,470 square miles in the Peace River belt. In a separate
transaction the Province conveyed to the Dominion 3,000 square miles on
Vancouver Island.
In 1930, pursuant to the findings of a Royal Commission, the Dominion
returned to the Province the Dominion Railway belt and the Peace River
Valley block, subject to any alienations made during its ownership. Cutting rights over timber areas had been granted and these so-called " timber
berths " are now subject to Provincial administration. In February, 1944,
there were 205 of these timber berths outstanding, averaging 2,072 acres
in extent. These lands are subject to an annual rental varying, according
to location, from $10 per square mile to 10 cents per acre, plus forest protection tax of 0.06 cent per acre. The timber cut from these berths is
subject to a royalty of $1 per M. feet and is not exportable in its unmanufactured state except with the approval of the Lieutenant-Governor in
Council.
The Vancouver Island grant contained some of the finest Douglas fir
stands on this continent, and eventually was conveyed by the Dominion to
the Esquimalt and Nanaimo Railway Company. Large areas in this belt
have been alienated by the Company (now controlled by the C.P.R.), but
much mature timber still remains in its ownership. These areas are
included in the general classification of lands Crown-granted prior to
April 7th, 1887.
The period between 1875 and 1899 was an era of railway speculation
in British Columbia. A great number of railways were incorporated in
the Kootenay area and in the northern area of British Columbia, and other
Crown grants were made to many of them in furtherance of railway-
construction. These are now, however, of minor consequence. A total
of 8,203,410 acres were granted to various railways during this period;
4,065,076 acres were eventually repurchased in 1910 and 1912 and out of Q 88 BRITISH COLUMBIA.
the remainder over 2,000,000 acres represent lands granted the Esquimalt
and Nanaimo Railway.
In 1901 the "■ Railway Lands Timber Royalty Act " clarified the status
of these railway grants in relation to royalty by stating that timber royalty
was not a tax, and that the tax exemption privileges in the several railway
land grants did not carry exemption from royalty. This Act has never
been applied to the Esquimalt and Nanaimo Railway lands.
In 1887 an attempt was made to forbid the sale of Crown lands
" chiefly valuable for timber," but the only safeguard provided was the
declaration by the applicant that the lands sought to be purchased were
" not chiefly valuable for timber." Thus, although the principle of state
ownership of timber lands was first recognized in 1884, the means to
effectuate it were largely ineffective.
Prior to April 7th, 1887, timber lands were Crown-granted without
any reservation of royalty or provision that the timber cut was to be manufactured within the Province. On and from this date the Provincial " Land
Act" not only required purchasers of Crown lands to take a declaration that the land in question was " not chiefly valuable for timber," but
reserved the timber to the Crown. Lands granted between April 7th,
1887, and April 28th, 1888, became known as " patented lands " and the
owner thereof had to obtain a licence to cut the timber, and pay a royalty
of 25 cents per thousand feet.
Although the export of timber cut under all forms of temporary alienation had been forbidden as early as 1901, unless with the consent of the
Lieutenant-Governor in Council, there was no provision prohibiting the
export of unmanufactured timber cut from these " patented lands " or
other Crown lands disposed of until the passage of the " Timber Manufacture Act " of March 12th, 1906. This Act required that all timber cut
from Crown lands granted after the passage of the Act must be used or
manufactured within the Province. The Act did not apply east of the
Cascades.
The " Land Act" of 1888 ended the granting of " patented " lands
but preserved the right to obtain licences to cut timber thereon. The
necessity of obtaining a licence to cut timber thereon was revoked in 1903.
Applicants were still required to take the declaration that the land
was " not chiefly valuable for timber," but Crown grants under this and
succeeding Acts passed title to the timber, reserving to the Crown a right
to royalty. Under the 1888 Act the royalty was 50 cents per M. The
price of the land was increased to $2.50 an acre for land valuable for
cultivation or lumbering, and $1 per acre for other land. Each individual
sale was limited to 640 acres.
The " Land Act" of 1891 provided that the land should be surveyed
before purchase, and that the surveyor should classify lands that were not
chiefly valuable for timber as follows:—
Those suitable for lumbering and cultivation, being called first-class
lands, and selling at a fixed price of $5 an acre: FOREST INQUIRY. Q 89
Lands suitable for cultivation but not lumbering were known as second-
class lands, and sold at $2.50 an acre:
Mountainous and pasture lands were classified as third class, and priced
at $1 an acre.
This was the first recognition by the Legislature that timber lands
had a greater value than other lands.
The surveyors, however, were not trained foresters, with the result
that much of the first-class land sold under this and other Acts, until after
the organization of the Forest Branch in 1912, were chiefly of value for
timber.
The limit for an individual sale was still 640 acres.
In 1896 " timber land " was first defined to mean land containing 8,000
feet B.M. per acre on the Coast and 5,000 feet B.M. per acre in the Interior.
Sale of this land was forbidden. This was the first effective step taken to
establish the principle formulated in 1887 that timber lands should be held
by the Crown and not permanently alienated.
Proper administrative measures were not introduced, however, and
the Act was. loosely enforced, with the result that it was still possible for
" timber lands " to pass into private ownership.
The 1905 "Assessment Act" contains the first statutory provision to
encourage timber preservation. The tax rate was set at 4 per cent, in
respect of " wild " (untimbered) land as against 2 per cent, on land carrying 5,000 feet of timber or more per acre.
In 1912 land prices were doubled, and the Lieutenant-Governor in
Council was given power to withdraw lands from sale or pre-emption on
the ground of public policy.
By 1914 only limited tracts were available for purchase or preemption, none of which was chiefly valuable for timber.
STATUS OF CROWN GRANTS RELATIVE TO
ROYALTY AND EXPORT.
At present all Crown-granted lands, other than Esquimalt and
Nanaimo Railway lands, which are governed by special Acts, are subject to
taxes in accordance with the provisions of the " Taxation Act," and to
forest protection tax.
The position as regards royalty and right of export is more complicated.
First, it is necessary to distinguish between " acquiring lands " and
" Crown grants to land."
Land may be acquired by pre-emption, record and entry, or by an
application to purchase. In each case a Crown grant may thereafter be
obtained, thus perfecting title.
As we have already seen, prior to April 7th, 1887, there was no reservation of timber royalty nor restriction on export. Clearly, therefore,
timber cut from land actually Crown-granted prior to this date was free
of royalty and exportable. This was felt to cause a hardship on persons
who had acquired land prior to this date but had not perfected their title Q 90 BRITISH COLUMBIA.
by obtaining a Crown grant. Consequently, it was enacted that persons
who had acquired the lands in question prior to April 7th, 1887, and
who afterwards obtained a Crown grant before the effective date of the
" Timber Manufacture Act"—March 12th, 1906—should enjoy this same
freedom from royalty and restriction on export.
Esquimalt and Nanaimo Railway lands are in this group by reason of
the date on which the lands were acquired and Crown grant obtained by the
Dominion. Timber cut from Dominion " patented lands " had the same
freedom from royalty and export control.
The passage of the " Timber Manufacture Act," effective March 12th,
1906, provided that timber cut from all Crown grants after that date
should be non-exportable. Later the Lieutenant-Governor in Council was
given power to approve such export in an unmanufactured state upon such
terms and conditions as he sees fit.
Consequently those persons who had acquired lands prior to April 7th,
1887, but did not obtain their Crown grants until after March 12th, 1906,
still had freedom from royalty but can not export timber cut from such
lands in its unmanufactured state, unless such export is approved by the
Lieutenant-Governor in Council as aforesaid.
On and after April 7th, 1887, and on or before the effective date of the
" Timber Manufacture Act "—March 12th, 1906—there was still no restriction on export in respect of timber cut from lands acquired by purchase or
pre-emption. Royalty, however, was reserved. Thus timber cut from
lands acquired and Crown-granted in this period are subject to royalty at
the rates set forth in subsection (1) of section 56 and subsections (1) and
(2) of section 59 of the " Forest Act," but can be exported in its unmanufactured state.
If, however, the Crown grant to such lands acquired on and after April
7th, 1887, was not obtained until after March 12th, 1906, but on or before
March 1st, 1914, which last date is the effective date of the " Timber
Royalty Act," then the timber cut therefrom was subject to the same royalties as are stated in the last paragraph, but is non-exportable in its unmanufactured state, save with the approval of the Lieutenant-Governor in
Council.
If the Crown grants to lands acquired after April 7th, 1887, were not
obtained until after March 1st, 1914, then the timber cut therefrom is
under the same restriction as to export, but royalty became payable in
accordance with the terms of the " Timber Royalty Act" of 1914. This
royalty is found in sections 57 and 59 of the " Forest Act."
The various classes of Crown grants and the incidents thereof may be
summarized for convenience as follows:—
Lands acquired prior to April 7th, 1887, and Crown-granted on or before
March 12th, 1906, E. & N. Lands, and Dominion Patented Lands—
Exempt from royalty, and timber cut on such lands may be exported
from the Province without permit. FOREST INQUIRY. Q 91
Lands acquired prior to April 7th, 1887, and Crown-granted after March
12th, 1906—
Exempt from royalty, and unmanufactured timber is non-exportable
unless the export from the Province of such timber is approved by the
Lieutenant-Governor in Council upon such terms and conditions as he
sees fit.
Lands acquired on and subsequent to April 7th, 1887, and Crown-granted on
or before March 12th, 1906—
Royalty is payable in accordance with the provisions of subsection
(1) of section 56 and subsections (1) and (2) of section 59 of the
" Forest Act," and timber cut on such lands may be exported from the
Province without permit.
Lands acquired on and subsequent to April 7th, 1887, and Crown-granted
subsequent to March 12th, 1906, on or before March 1st, 1914—
Royalty is payable in accordance with the provision of subsection
(1) of section 56 and subsections (1) and (2) of section 59 of the
" Forest Act," and unmanufactured timber is non-exportable unless the
export from the Province of such timber is approved by the Lieutenant-
Governor in Council upon such terms and conditions as he sees fit.
Lands acquired on and subsequent to April 7th, 1887, and Crown-granted
subsequent to March 1st, 191b, or Lands held under Pre-emption Entry
and Record—
Royalty is payable in accordance with the provisions of sections 57
and 59 of the " Forest Act," and unmanufactured timber is non-exportable unless the export from the Province of such timber is approved by
the Lieutenant-Governor in Council upon such terms and conditions as
he sees fit.
Total area of Crown-granted lands, excluding Esquimalt and Nanaimo
grant, amounts to 529,940 acres.
TIMBER LEASES.
While permanent alienations of timber lands were becoming fewer in
number, other systems of temporary alienation of timber were being
devised.
As was stated, the modes of temporary alienation are leases, licences,
and timber sales.
Leases were first granted under the Land Ordinance of 1865 which
imposed no limits as to size, rentals, royalties, or terms of lease.
The only fixed principle was that the lands should be leased only to
those " actually engaged " in the industry. The purpose of this was to
prevent speculation in timber by private interests. This general principle
was steadily maintained in effect until December 24th, 1907, when the
granting both of leases and licences was discontinued by Order in Council.
Between 1865 and 1888 there were minor variations, but no very substantial change in the statutory provisions relative to leases.
In 1871 and 1888 enactments were passed having the effect of imposing a ground-rent of 5 cents to 10 cents per acre on all leases granted
between 1871 and 1888. Q 92 BRITISH COLUMBIA.
Those granted under the 1888 " Land Act" amendments were limited
to a period of thirty years, subject to ground-rent of 10 cents per acre and
a royalty of 50 cents per M. feet. The Lieutenant-Governor in Council
was empowered to allow on the exportation of manufactured timber on
which the royalty imposed by this Act had been paid, a drawback, or rebate,
equal to one-half of such royalty.
Coincidental with this aid to export of manufactured timber, each
lessee was required to erect within the Province a mill with a capacity of
not less than 1,000 B.F. per day for each 400 acres under lease. The
apparent intention of this provision was to limit the miller's holdings to
his actual requirements.
In 1891 a system of selling the leases by tender to the person paying
the highest cash bonus was introduced. It was also enacted that all timber
cut from lands held under leases be manufactured within the Province.
By amendments in the year 1892, the term of leases granted thereafter
was reduced to a maximum of twenty-one years, and provision made that
the required mill be appurtenant to the lease. If the highest tenderer had
no such mill he was required to deposit 10 cents per acre to guarantee its
erection within two years.    Royalty and rentals remained the same.
In 1895 it was made possible for non-mill-owners to acquire leases
upon payment of a substantially increased rental. In 1895 the rentals
were 10 cents and 15 cents per acre for mill-owners and non-mill-owners
respectively, and were thereafter increased to 15 cents and 25 cents per
acre on later leases.
In 1899 amendments were passed to make it clear that mere ownership of a mill was not sufficient by providing that the mill must be actually
kept in operation for six months each year, unless excused by the Lieutenant-Governor in Council for some reason such as bad weather or poor markets. Rental was made 15 cents per acre and royalty of 50 cents per M.
with a minimum total of fees collected of 50 cents per acre.
In 1901 all existing leases were made renewable for consecutive and
and successive periods of twenty-one years, subject to royalties and rents
in force at the time of renewal, and subject to surrender of existing leases
within one year. The terms of the existing lease could be renewed to date
of normal expiry, and thereafter for the remainder of the twenty-one years
the lease was subject to royalty, rents, and conditions effective when the
normal term of the first lease expired. This renewal privilege was made
in the public interests as the total of timber then held under lease and
licence was far in excess of a twenty-year supply.
This Act also required that all timber cut from timber leases or timber
licences must be used or manufactured within the Province. Later the
Lieutenant-Governor in Council was authorized to allow export on terms.'
In 1915 provision was made for conversion of leases into special timber
licences.
At February 2nd, 1944, there were 152 timber leases, averaging 1,302
acres per lease; those west of the Cascade Mountains paying a rental of
21.875 cents per acre, and those east of the Cascade Mountains 15.625 cents FOREST INQUIRY. Q 93
per acre, and in each case a forest protection tax of 0.06 cent per acre.
The timber cut from these leases is subject to royalty in accordance with
the terms of the " Forest Act," and is non-exportable in its unmanufactured state unless with the approval of the Lieutenant-Governor in Council.
PULP LEASES.
Pulp leases, which were first granted in 1901, while of later development, are merely a form of timber lease grantable to owners of pulp-mills
with a capacity of 1 ton of pulp per square mile of lease, with a provision
that the mill be operated six months in the year unless excused. Since the
timber thereon is generally of less value, the rental and royalty are payable at lower rates than in the case of ordinary timber licences. There is
provision, however, for special rental and royalty in respect of sawlogs cut
on a pulpwood lease and not manufactured into pulp and paper. At the
present time the annual rental on a pulp lease is 4 cents per acre compared
with 22 cents per acre on a timber lease. The royalty on sawlogs manufactured into paper is the equivalent of 57 cents per M. feet B.M. whereas
the royalty on the same species and grades cut on a timber lease varies
from $2 to 60 cents, according to district and grade.
Sawlogs cut on a pulp lease not manufactured into wood-pulp or paper
are subject to the higher rates of royalty and additional rental calculated at
the rate of 22 cents per wooded acre per year. The result is that substantially less revenue is collected on first- and second-grade logs manufactured
into wood-pulp or paper than those cut into lumber. The 1901 Act forbade export of manufactured timber from this form of lease as well as all
other forms.
The granting of these leases was discontinued in 1905 but rights of
renewal have been maintained from time to time by statute amendments,
with the result that all present pulp leases expire September 3rd, 1954,
renewable thereafter for consecutive and successive periods of twenty-one
years upon such terms and conditions as may, from time to time, be
approved by the Lieutenant-Governor in Council.
In 1926-27 provision was made whereby these pulp leases could be
convertible into special timber licences when the timber was found to be
unsuitable for the manufacture of pulp and paper.
In February, 1944, there was thirty-three wood-pulp leases in good
standing or subject to renewal, each with an average of 10,170 acres.
TIMBER LICENCES.
This form of temporary alienation of timber is of later development
than leases and was not established until 1884. The 1884 " Timber Act"
makes it clear that its purpose was to derive revenue from the cutting of
timber from Crown lands.    The Act did not apply to hemlock.
The licences thus provided were for four years at an annual fee of
$10. Unoccupied Crown lands, other than Indian Reserves or lands
exempted by the Lieutenant-Governor in Council on grounds of public
policy, were available for licence. Q 94 BRITISH COLUMBIA.
Each licence was limited to 1,000 acres and to one person.
In 1887 a conflict between pre-emptors of lands and licensees thereof
was solved by insertion of a provision that any timber licence did not
include the right to cut timber on pre-empted lands within the area of
the licence.
Timber dues at the rate of 20 cents per M. feet plus 15 cents per tree
(excluding small trees used for skids) were imposed.
Prior to April 7th, 1887, no royalty was reserved on timber cut from
lands sold by the Crown, and the sale price of such lands was only $2.50
per acre. There was no Act in effect setting any specific rate of royalty
in respect of timber cut from leased lands; thus the licence system was
more profitable to the Crown than any form of temporary or permanent
alienation then in effect.
Generally speaking, leases were granted only to mill-owners. No such
limitations were ever imposed in respect of timber licences.
In 1888 the licensing system was changed. The licences became " special timber licences " and were given for one year, renewable at the discretion of the Chief Commissioner of Lands, but were not transferable. The
area was still limited to 1,000 acres, and each licensee could hold only one
licence. The annual fee was increased to $50 and royalties were also
increased.
Until 1901 there was no restriction on export in respect of timber cut
from lands under licence.
The 1901 legislation, in addition to prohibiting the export of timber cut
from leases and licences, increased the licence fee to $100 and reduced the
area to 640 acres. Each licensee was now allowed to take two licences
which were still non-transferable. Conditions of renewal and royalty
were not altered.
Until the year 1903 the whole system of temporary alienation was conducted with the dual purpose of obtaining revenue, and granting timber to
operators for use rather than to the speculative public.
Of the two forms, leases which were granted upon varying conditions
as to mill operation were a somewhat more secure form of tenure.
The provisions relative to granting of timber licences were now liberalized with the purpose of assuring operators a future source of supply.
This led to a period of tremendous activity and speculation in timber
licences.    The revenues of the Forest Branch soared in consequence.
The 1903 Act did not change the size of the licensed area but lengthened
the term of the licence to five years renewable at discretion, and increased
the fees to $140 per year west of the Cascades and $115 east of the Cascades, the whole five-year fee being payable at the date of application.
Royalty on timber cut was set at 50 cents per M. feet and 25 cents
per cord.
Between the passing of this Act and 1907, speculation was rampant.
Some 15,000 licences were issued. An Order in Council, in consequence,
was passed on December 24th, 1907, prohibiting all forms of temporary
alienation of timber. FOREST INQUIRY. Q 95
The only important legislative change during this period was in 1905.
Licences issued under the 1905 Act were annual licences renewable year
by year for a period of twenty-one years, and by the same Act existing
five-year licences were made renewable year by year for sixteen years after
the expiry of the original period, and transferable, and no limit was
imposed as to the number of licences per person.
This reduction of the period of the licence from five years to one year
may have given an impetus to speculation as five one-year licences could
now be obtained for the initial price of one five-year licence under the
1903-04 Act. The speculative fever was fed on the publicity attendant
upon the throwing-open of the whole of the Provincial forest resources
to " staking."
The 1905 Act also required licence-holders to have the licensed area
surveyed before removing timber, or upon order of the Chief Commissioner
of Lands, and provided that " in addition to the royalty which is now
reserved by section 58 of the ' Land Act' there shall be paid 10 cents per
M. feet B.M. in respect of all timber cut and removed from any special
licence heretofore issued or coming within the scope of this subsection."
In 1906 the " Timber Manufacture Act " was passed, incorporating the
1901 provisions relative to the manufacture within the Province of timber
cut from leases and licences, and enacted that timber cut from all Crown
grants issued after March 12th, 1906, should likewise be used or manufactured within the Province.
The 1908 consolidation and revision of the " Land Act" included provisions for the granting of twenty-one-year licences despite the existence
of the 1907 Order in Council. Presumably this was to enable departmental
officials to deal with the multitude of applications pending on the 24th of
December, 1907.
In 1910 provision was made whereby existing licences could be converted into licences renewable from year to year so long as there was timber of commercial quantities on the licensed area. This enactment made
licences an equally secure form of timber tenure as leases. Time for
conversion was eventually extended to 1929.
In 1913 all licensees were required to have surveys made before March
31st, 1918.    This time-limit was finally extended to 1929.
In February of 1944 there were 2,850 timber licences in good standing
or subject to renewal, with an average area of 630 acres, and renewable
from year to year while there is on the land sufficient merchantable timber
to make it commercially valuable. The annual renewal fee is $140 west of
the Cascade Mountains and $100 east of the Cascade Mountains. Licensed
lands are subject to the annual forest protection tax, and the timber cut
therefrom subject to royalty as provided by the " Forest Act."
These annual renewal fees were fixed until December 31st, 1954, by
the " Timber Royalty Act" of 1914, which was afterwards incorporated
into the " Forest Act." Q 96 BRITISH COLUMBIA.
PULP-WOOD LICENCES.
In 1919 provision was made for conversion of special timber licences
to pulp licences. Pulp licences thus issued were required to be appurtenant
to the pulp-mill in respect of which it was issued.
This amendment was repealed in 1921 and the " Forest Act Amendment Act" enacted provisions whereby pulp districts were created to
encourage and perpetuate the pulp and paper industry. Disposal of pulp-
wood in these districts is restricted so that the annual cut does not exceed
the productive capacity of the area. In the same Act provision was made
for conversion of pulp licence to special timber licence in certain circumstances.    These provisions have been carried forward to the present Act.
In February of 1944 there were 252 pulp licences in good standing or
subject to renewal, averaging 618 acres. These are renewable from year
to year while there is in the licensed area merchantable pulp timber of
commercial value. The annual renewal fee is one-half that payable on
timber licences. The areas are subject to forest protection tax and royalty.
As these licences were granted subsequent to 1906 the timber is not exportable in an unmanufactured state except with the consent of the Lieutenant-
Governor in Council. As pulp-wood is defined as timber " cut upon land
specified in any pulp licence " there is consequent loss of revenue where
first- and second-grade timber is converted into wood-pulp or paper and
not into lumber.
SPECIAL FORMS OF LICENCES.
In addition to these general timber licences there are two special
forms of licences—namely, " hand-loggers' licences " and " hemlock-bark
licences."
Hand-loggers' Licences.—These licences are personal licences allowing
the holder thereof to cut timber. They were first granted in 1886. In
1888 the term for which such licence could be issued was limited to one
year. It was in this year that the words, " hand-loggers' licences " were
first given statutory use.
This form of licence came under the general ban against alienation of
Crown timber in the 1907 Order in Council.
In 1908, after representations by Labour Associations, provision was
again made for issuance of these personal licences. The fee was raised
from $10 to $25 per year, and the area of the operations confined to certain
parts of the northern coast. The 1908 Act also forbade use of steam-
powered machinery by the holder of a hand-logger's licence. In 1920 these
words were generalized so as to bar use of any form of powered equipment.
Timber cut under this form of licence has always been subject to royalty.
Hemlock-bark Licences.—This special form of licence (sometimes
called " tan-bark leases ") is in reality a lease, but is generally catalogued
among licences as all those granted have either lapsed or been converted
to special timber licences. FOREST INQUIRY. Q 97
TIMBER SALES.
Between December 24th, 1907, and the coming into effect of the
" Forest Act" of 1912 there was no way in which Crown timber could be
alienated, either permanently or temporarily.
This state of affairs became unsatisfactory for many reasons. Past
forms of licensing and leasing had not systematically covered the forest
areas, with the consequence that there were many stands, too small to be
logged independently, left isolated and subject to accelerated deterioration
when logging operations on near-by limits ceased. Larger stands were in
danger of deterioration because of their overmaturity. To remedy this
situation a system of timber sales was put into effect. The area to be sold
is selected by departmental officials, surveyed, cruised, and classified.
Anything except very small blocks are advertised for sale. Under the
1912 Act the price was made to include a bonus payment, stumpage not
less than upset price, cost of survey, cruising, and advertising. Sale was
made to the highest accepted bidder, subject to the terms of the forest
legislation and the terms of the timber-sale contract.
Amongst other things, conditions of sale included an annual rental
subject to reduction as each 640-acre block was eliminated, payment of
royalty, forest protection tax, and compliance with regulations.
This principle of disposal of Crown timber is still in effect, though
various modifications have been made from time to time to aid in efficient
administration and effective control.
In February of 1944 there were 3,087 non-rental timber sales averaging in area 200 acres, 615 timber sales paying rental with an average area
of 460 acres. By virtue of the 1906 Act export of unmanufactured timber
alienated under timber sales has always been forbidden unless approved by
the Lieutenant-Governor in Council under the powers later given.
PULP-WOOD TIMBER SALES.
These are a special form of timber sale and were originally provided
for in the 1912 Act. These pulp-wood timber sales have some of the characteristics of pulp-wood leases granted between the date of the 1901 " Land
Act" and the 1907 Order in Council and are defined in the " Forest Act "
as " pulp licences."    Pulp timber is, however, a more appropriate term.
In addition to the general conditions relative to all timber sales the
tenderer must prove that he has spent $350,000 in mill erection, or post
a bond of $50,000 to guarantee the erection of a pulp-mill within three
years.
The contract is renewable from year to year during the period of the
contract and must be appurtenant to the pulp-mill. The pulp licences held
by the pulp-mill operator must not contain more than thirty years' supply
of pulp-wood at any one time.
In the 1912 Act rentals were set at one-half those payable on ordinary
timber sales, with a provision for full rental in the event of the pulp-mill
not operating six months in one year, and a provision for full rentals and Q 98 BRITISH COLUMBIA.
full royalties in respect of saw timber cut in pulp area but not manufactured into wood-pulp or paper.
At February 2nd, 1944, there were nineteen pulp-timber sales with
an average area of 4,176 acres.
As in timber sales, the upset price is in accordance with the appraisal
of the accepted tender in excess thereof.
Export of unmanufactured timber is not permitted except upon
approval of the Lieutenant-Governor in Council.
My opening comment on the subject of forest tenures was to the effect
that they were complicated in structure. The foregoing sketchy outline
has at least demonstrated the truth of that remark. It is impossible now
to state what reasons, from time to time, dictated the various statutory
changes over the years. Looking back, however, there may be discovered
a fairly consistent philosophy underlying the gradual evolution of tenures
and the terms thereof.    It may be summarized under four headings:—
(1.)  All productive forest land was to remain in Crown ownership.
(2.)  The Crown was to receive a fair share of the wealth produced by
the exploitation of this natural resource.
(3.)  Speculation in timber by private interests was to be eliminated.
(4.)  The export of logs in unmanufactured form was to be reduced
to a minimum.
In general, and to a degree, these objectives have been attained.
Past forest policies did not, however, envisage private forestry as an
objective. A vice-president of one of the largest logging and sawmill companies operating on the Coast made, I think, a succinct review of the
situation when he said:—
" Up to this time, loggers and lumbermen have been looked upon and
treated as transients without any permanent interests in their forests, their
own business, or the communities they built and support. This point of
view has been reflected in the forest legislation of our Province. There is
no provision in our forest laws to allow an operator to plan a permanent
operation. Lands chiefly valuable for forests have been reserved from outright sale and such lands have been alienated only under temporary lease or
licence until the merchantable timber is removed, at which time the land
reverts to the Crown. The logger has been treated as a miner, with no choice
but to mine his forest.   .   .   .
" We believe that sound forest management integrated with the management of logging can be compatible with good business management. We
recommend that it be made possible for the forest owner or operator to bear
the responsibility of managing his forest on a permanent basis.   .   .   .
" Our present form of tenure, which is largely timber licence, prohibits
us from having any interest in our land after it is logged."
His view-point is undeniably correct and if we are to have a measure
of private forestry in this Province whereby large corporations will plant,
grow, protect, and conserve their own productive land areas a form of
tenure will have to be devised to meet the situation.
LOG EXPORTS.
An examination of the various forms of forest tenures has disclosed
that logs cut from some areas are exportable without permit, while the FOREST INQUIRY.
Q 99
log production from other areas can not be exported without approval of
the Lieutenant-Governor in Council. This result is a consequence of the
division of legislative powers between the Dominion and Provincial Governments under the terms of the " British North America Act."
Matters of international trade and commerce, such as exports, are
assigned exclusively to the Dominion Parliament, and this Province has no
jurisdiction to enact any statutory provision forbidding the export of goods
from this Province. This Province can, however, impose terms and conditions upon purchasers of Crown timber. In some instances it has, in its
contracts, imposed terms preventing the export of logs cut thereunder
unless by consent of the Lieutenant-Governor in Council. In others—for
example, Crown grants prior to April, 1887—the Crown did not insert
therein any provisions restrictive of export. In consequence, the Government of this Province, not having any contractual restrictive control over
the log production from such areas, and not having the legislative power to
prohibit or restrict export by statute, can not interfere with the export of
logs from these areas within this classification. That control, then, lies
solely within the competence of the Federal Government.
It has sometimes been said that the areas from which the Provincial
Government is powerless to prevent the export of logs have an " export
privilege." This is a misnomer. It is not a " privilege." The right to
export arises from an absence of either contractual or legislative jurisdiction to regulate this activity.
The control over the export of logs from areas covered by restrictive
forms of tenure is vested in the Lieutenant-Governor in Council who must
approve of all export shipments from these areas. The Lieutenant-Governor
in Council is advised in these matters by an Export Advisory Committee,
consisting of the Minister of Lands and Forests as chairman (represented
by the Deputy Minister of Forests) and six other members. Three of
these represent the logging operators and three represent the log-buying
sawmills of the Province.
The following table, covering the ten-year period 1930-39, shows the
total log exports during that period from unrestricted and restricted
areas:—
Year.
Exports from
Crown Grants
(F.B.M.)
(unrestricted).
Per Cent,
of
Total.
Exports from
Licences and
Leases (F.B.M.)
by Permit.
Per Cent.
of
Total.
Total
(F.B.M.).
1930    _ -   	
153,190,000
182,787,000
73,342,000
157,627,000
142,232,000
207,139,000
192,976,000
254,596,000
220,462,000
284,557,000
88.6
83.0
44.2
75.5
82.3
88.0
88.4
94.1
84.9
91.0
19,729,000
37,389,000
92,423,000
51,314,000
30.504,000
28,153,000
25,853,000
15,876,000
39,211,000
28,176,000
11.4
17.0
55.8
24.5
17.7
12.0
11.6
5.9
15.1
9.0
172,191,000
1931   	
1932 ._.__   _ _
1933   _  _ _
1934 _  	
1935 -
220,1,76,000
165,765,000
208,941,000
172,736,000
235,292,000
1936         _-	
218,829,000
1937 _ _ 	
270,472,000
1938                    	
259,673,000
1939    	
312,733,000
Averages
186,891,000
83.5
36,863,000
16.5
223,754,000 Q 100
BRITISH COLUMBIA.
The same information in graphical form is as follows:
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Q 101
It will be noticed that for the entire ten-year period, 83.5 per cent, of
export logs originated on Crown-granted lands. In 1939, 91 per cent, of
export logs were cut on these lands.
It is interesting to compare the trends of exports from each of the two
sources. For the ten-year period, 1930 to 1939, total log exports from both
sources increased at a compound rate of 5.86 per cent, per annum. For
the same period, log exports from Crown-granted lands (uncontrolled)
increased at a compound rate of 8.93 per cent, per annum, while log exports
from timber licences and leases (controlled by the Export Advisory Committee) decreased at a compound rate of 4.37 per cent, per annum.
Apparently the Export Advisory Committee has been effective in the
limited field over which it has control. The over-all increase in the export
of logs must be attributed to the uncontrolled export from the Crown-
granted lands.
An analysis of the export of the various species discloses the following
figures in terms of relative percentages:—
DOUGLAS FIR.
Year.
Per Cent, of
Total Export
of all Species.
Per Cent, of
Production
exported.
Per Cent.
Exportable
without
Permit.
Per Cent.
Permit
Export.
1933 _ _____  _	
65.1
61.4
70.5
58.9
56.3
43.1
34.9
10.9
27.2
1.3
3.3
15.59
9.14
12.38
8.11
9.41
7.46
6.44
1.36
4.95
0.15
0.21
88.67
93.89
89.18
99.34
95.61
98.58
97.59
98.00
90.08
74.31
93.04
11.33
1934                     	
6.11
1935     _ _ ___.   _ -
10.82
1936                ____     _____
0.65
1937                                          	
4.39
1938                    ...   	
1.42
1939   - --__ '  	
2.41
1940*      _.   	
2.00
1941      _       _     ...   _   	
9.91
1942                               _     _—
25.69
1943                	
6.96
* All export of Douglas fir logs prohibited as a war measure by Timber Controller as from midnight,
July 10th, 1940.
CEDAR.
1933
26.3
19.4
10.6
9.7
8.8
18.7
15.9
11.5
7.6
27.4
58.6
14.68
9.96
5.21
3.83
4.11
8.78
7.13
3.77
3.21
7.26
9.01
44.36
44.08
81.58
98.11
96.84
83.04
94.13
88.29
98.51
99.57
99.66
55.64
1934
55.92
1935
18.42
1936      _   - ___
1.89
1937   _-.    	
3.16
1938 __-   	
16.96
1939  _    	
1940       _    .
5.87
11.71
1941   ___     _____
1.49
1942    _._   .-_ _ 	
0.43
1943    	
0.34
PROVINCIAL   LIBRARY
VICTORIA, B. C. Q 102
BRITISH COLUMBIA.
SPRUCE.
Year.
Per Cent, of
Total Export
of all Species.
Per Cent, of
Production
exported.
Per Cent.
Exportable
without
Permit.
Per Cent.
Permit
Export.
1933.
0.3
0.9
0.9
2.8
3.3
8.8
8.0
8.4
2.1
1.4
0.6
0.73
1.15
1.79
4.06
5.04
14.97
15.55
7.71
2.44
0.79
0.14
67.41
14.48
60.53
7.15
35.66
9.07
27.94
8.02
39.84
14.99
51.28
32.59
1934     • 	
1935__   	
85.52
39.47
1936      	
92.85
1937  	
1938     .-___.           . ___ ___
64.34
90.93
1939  	
72.06
1940  _     .	
91.98
1941       „            __._
60.16
1942  	
85.01
1943    _ 	
48.72
HEMLOCK.
1933...
1934 ___
1935-
1936____
1937-
1938-
1939....
1940__._
1941_.._
1942-
1943_.._
3.59
6.87
8.04
11.32
13.08
18.30
21.34
17.48
22.57
15.30
4.24
87.97
95.01
89.87
71.79
98.65
88.70
97.04
82.51
87.21
92.68
98.80
12.03
4.99
10.13
28.21
1.35
11.30
2.96
17.49
12.79
7.32
1.20
BALSAM.
1933-
1934 ___
1935___.
1936-
1937_„__
1938 __.
1939....
1940....
1941..
1942-
1943....
1.89
3.19
2.71
4.31
4.58
9.14
10.71
15.00
28.35
13.64
31.45
57.33
61.05
79.08
43.54
92.17
89.92
94.88
65.30
71.67
86.05
96.96
42.67
38.95
20.92
56.46
7.83
10.08
5.12
34.70
28.33
13.95
3.04
1933_.
1934_
1935_.
1936__
1937..
1938 _
1939_.
1940__
1941._
1942..
1943..
OTHERS/
28.80
35.44
28.96
35.29
29.34
15.29
15.79
12.81
11.89
10.65
8.73
55.31
67.55
88.11
65.12
77.76
74.17
81.96
72.88
88.11
96.11
100.00
44.69
32.45
11.89
34.88
22.24
25.83
18.04
27.12
11.89
' Others " include yellow pine, white pine, lodgepole pine, larch, Cottonwood, and miscellaneous. FOREST INQUIRY. Q 103
The increased exports of the pulp species, hemlock and balsam, since
1933 can not pass unnoticed and accounts for, in part at lease, the flourishing condition of the pulp- and paper-mills of Washington and Oregon.
Although the pulp and paper industry did not so request, it seems to me
that this industry should be represented on the Export Advisory Committee.
It is my opinion that mills dependent solely, or to a large degree, upon
the open log market as the source of their logs will, in the future, suffer
from a lack of supply. This condition, in turn, will lead to curtailment of
production with consequent reduction in employment in those mills. The
extraction of logs for export does provide employment, but a greater
degree of manufacture in the Province is directly reflected in a greater
number of men gainfully employed in those processes of conversion.
When producing logs for export in an unmanufactured state we are
depleting our forests just as fast as if those same logs were processed into
manufactured form in this Province. When exporting our logs the ratio
of unemployment to depletion is very low. That ratio increases in direct
relation to the degree to which our raw material is manufactured in the
Province. In other words, each log which is manufactured in the Province, instead of being exported for manufacture elsewhere, provides an
increase in employment and pay-rolls without any corresponding increase
in the rate of forest depletion.
The continued export of logs to foreign countries, to be manufactured
therein into vendible commodities which, in turn, we probably purchase,
will not only affect our employment structure but also leads to loss of indirect income flowing from manufacturing proeesses, including Government
revenue in the form of income tax and such like. The export of 1939 of
313 million feet of logs produced a gross income of $4,784,363. These
same logs manufactured into lumber would have produced about another
$3,000,000. Turned into doors, sashes, wood pipes, furniture, pulp products, and so on, this material would have created a considerably greater
volume of wealth for our own citizens.
In 1942 the export of logs was restricted by the Timber Controller,
acting under authority of the Dominion Government; but in 1941, 193
million board-feet of hemlock and balsam were exported. This is enough
raw material to supply the needs of two good-sized pulp-mills and is in
excess of 50 per cent, of the highest pulp-wood consumption in any year
in this Province. During 1941 the Powell River Company was forced to
curtail production to four days a week, while the Washington and Oregon
plants ran a full seven-day week. In that year 22 per cent, of our hemlock
production was exported: 87.21 per cent, thereof came from unrestricted
areas and 12.79 per cent, from permit areas. Similarly, 28 per cent, of our
balsam production went out to foreign markets, 71.67 per cent thereof
.exportable without permit. If I am correct in interpreting the evidence
to mean that the next thirty years will see the gradual disappearance of
Douglas fir on the Coast with resultant heavier depletion in other species
 especially hemlock— it seems to me the export of our raw material— Q 104 BRITISH COLUMBIA.
especially hemlock— should not be permitted to continue without regulation
from unrestricted areas.
I must emphasize the fact that Crown grantees of areas over which no
export control is exercisable by the Province do not enjoy any affirmative
rights of export. They are in that preferred position simply because of
the constitutional division of legislative authority in Canada which vests
control over exports in the Dominion Government. The Dominion Government now exercises that control because of the exigencies of the war years.
I see no valid reason why, if the public interest so demands, the extension
of the control principle should not continue to be exercised by the Dominion
authority in the post-war period of transition to a planned system of
Forest Management.
FOREST FINANCE.
The Provincial Government is in receipt of direct and indirect revenue
from our forests. What the indirect revenue amounts to is impossible of
assessment. It would include income tax collections from secondary industries dependent upon our forest production; revenues from all the various
multiple forest uses to which I have made previous mention, such as the
benefits derived from watershed protection, the tourist traffic, commercial
and sport fishing, and a host of other revenue-producing activities. In
1941, for instance, 181,008 automobiles entered this Province and tourists
left with us $15,000,000 of their money. This flow of money into local
pockets would not continue long if all we had to offer our visitors was the
devastation of logged and burned lands and dismantled scenery.
There can be no doubt of this fact: that the multiplicity of forest
functions and the total indirect values derived therefrom bring to the
public generally, and the Provincial coffers in particular, far greater sums
of money than is realized from measurable direct revenues.
The direct forest revenues are made up of receipts from royalties,
timber sales, licences, leases, taxes (i.e., a small fee on export of timber),
grazing permit fees, rentals on Dominion timber berths, trespass (i.e.,
penalties for unauthorized timber cutting), and miscellaneous. Forest
expenditures include money spent on salaries of the permanent and temporary staff, expense accounts, reconnaissance (i.e., employment of outside
compassmen and cruisers to assist rangers), grants (to the Canadian Forestry Association), forest reserve account, research, reforestation (i.e.,
nurseries growing young stock and planting costs), park expenditure, fire
protection, and grants-in-aid of trade extension up to 1935 when that activity was taken over by the Department of Trade and Industry. (See accompanying graphs, pages 105, 106.) The absence of any expenditures for
insect-control is to be noted.
Several of these items of expenditure—i.e., Forest Reserve Account,
Grazing Range Improvement Account, and Fire Protection Fund—require
explanation.
The Forest Reserve Account consists of an annual contribution from
the Province in an amount equal to 3 per cent, of the gross receipts of the f^r
suvnoa  j°   SNomiw
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106 FOREST INQUIRY. Q 107
year from royalty tax and stumpage, and is allocated for the purpose of
developing, protecting, and maintaining the growth of continuous crops of
timber in forest reserves and for the replanting of denuded areas therein.
I have had occasion to mention its inadequacy for that purpose. Actual
expenditures never exactly equal the contribution and a small credit balance
is always maintained in the fund.
The Grazing Range Improvement Fund is also a statutory fund and
the Crown contribution thereto consists of a sum equal to one-third of the
grazing fees collected each year, to which is added minor sums from such
sources as the sale of wild horses. The Crown contribution, like that made
to the Forest Reserve Account, appears in the Forestry accounts as the
sum expended, although actual expenditures may be more or less than the
sum contributed.
• The Fire Protection Fund is made up of a statutory contribution from
Consolidated Revenue Fund and the receipts from the forest protection tax,
to which may be added minor sums from the rental or sale of outworn
fire-fighting equipment. The Crown contribution is shown as the only
expenditure in forest branch accounting, but the forest protection tax
receipts are not set up as revenue therein nor do the actual fire-protection
expenditures appear in consolidated statements of the Forest Branch which
purport to show total Forest Branch expenditures. As a matter of fact,
the actual expenditures on fire-protection and fire-fighting were for many
years in excess of the sums contributed by the Crown and tax collections.
In the words of the Deputy Minister of Forests, the fund suffers from a
" chronic deficit."
The following tables show the details of Forest Revenue and Forest
Expenditures for the fiscal years 1933-34 to 1942-43 in the light of the
foregoing comments upon the Forest Branch system of accounting:—  DIRECT FOREST REVENUE.
Fiscal Years 1933-34 to 1942-43, inclusive.
Year.
Total
Revenue.
Royalty.
Per Cent,
of Total.
Timber
Sales.
Per Cent,
of Total.
Licences.
Per Cent,
of Total.
Lpaw         Per Cent.
Leases.        of TotaL
Tax.
Per Cent,
of Total.
Grazing.
Per Cent,
of Total.
Dominion
Berths.
Per Cent,
of Total.
Trespass.
Per Cent,
of Total.
Miscellaneous.
Per Cent,
of Total.
1933-34	
1934-35	
$1,768,999
2,266,710
2,841,419
3,001,055
3,257,525
2,982,702
3,236,731
3,549,932
4,057,438
3,519,892
$956,618
1,123,788
1,708,828
1,803,456
1,880,592
1,578,005
1,915,551
2,159,597
2,453,335
1,928,760
54.07
49.58
60.14
60.10
57.73
52.90
59.18
60.84
60.46
54.80
$276,435
315,336
361,069
436,298
597,974
575,229
707,420
769,362
937,050
1,003,160
15.62
13.91
12.71
14.54
18.36
19.29
21.86
21.68
23.09
28.50
$358,725
658,159
621,301
606,369
580,221
636,176
439,386
434,427
459,154
414,815
20.29
29.04
21.87
20.20
17.81
21.02
13.58
12.23
11.31
11.78
$62,045
72,952
69,711
58,893
62,722
67,078
51,535
56,828
48,807
50,063
3.51
3.22
2.45
1.96
1.93
2.58
1.59
1.60
1.23
1.42
$64,081
41,596
29,796
42,115
64,246
66,316
54,320
50,713
81,624
38,409
3.62
1.83
1.04
1.40
1.97
2.22
1.68
1.43
2.01
1.09
$10,064
11,635
13,659
15,509
24,084
16,916
25,682
35,537
30,514
28,981
0.57
0.51
0.48
0.52
0.74
0.57
0.79
1.00
0.75
0.82
$32,949
32,998
26,905
28,020
24,438
27,407
23,154
20,751
22,810
22,455
1.86
1.46
0.95
0.93
0.75
0.91
0.71
0.58
0.56
0.64
$4,358
7,125
5,567
5,342
19,262
10,333
14,012
16,281
17,549
22,816
0.25
0.31
0.20
0.18
0.59
0.34
0.43   '
0.46
0.43
0.65
$3,724
3,121
4,583
5,053
3,986
5,242
5,671
6,436
6,595
10,433
0.21
0 14
1935-36	
1936-37	
0.16
0 17
1937-38	
0 12
1938-39	
1939-40	
1940-41	
0.\7
0.18
0.18
0.16
0.30
1941-42	
1942-43	
Ten-year averages	
$3,048,240
$1,750,853
57.44
$597,933
19.61
$520,873
17.09
$60,063
1.97
$53,322
1.75
$21,258
0.70
$26,189
0.86
$12,265
0.40
$5,484
0.18
FOREST EXPENDITURES.
Fiscal Years 1933-34 to 1942-43, inclusive.
Year.
Total
Expenditure.
Salaries.
Per Cent,
of Total.
Temporary
Assistance.
Per Cent,
of Total.
Expense
Vote.
Per Cent,
of Total.
Trade
Extension.
Per Cent,
of Total.
Reconnaissance.
Per Cent,
of Total.
Grants.
Per Cent,
of Total.
Forest
Reserve
Account.
Per Cent,
of Total.
Research.
Per Cent,
of Total.
Reforestation.
Per Cent,
of Total.
Miscellaneous.
Per Cent,
of Total.
Grazing
Range
Improvement
Fund.
Per Cent,
of Total.
Forest
Protection
Fund.
Per Cent,
of Total.
Provincial
Parks.
Per Cent,
of Total.
1933 34                          	
$420,429
643,123
697,798
753,476
911,376
935,358
1,027,862
1,061,609
1,187,632
1,184,121
$276,508
203,205
203,413
226,803
244,241
251,674
261,914
262,355
257,344
262,186
65.77
31.60
29.14
30.10
26.80
26.94
25.48
24.71
21.67
22.14
$187
0.04
0.19
0.09
0.10
0.41
0.42
1.01
1.20
$78,911
75,058
86,250
98,041
108,849
118,494
119,802
117,775
115,933
182,644
18.77
11.67
12.36
13.01
11.94
12.66
11.66
11.10
9.77
15.42
$19,000
53,130
50,000
50,000
50,000
4.52
8.26
7.17
6.64
5.49
0.31
0.29
0.25
0.55
0.97
0.97
0.94
0.73
0.70
$2,000
3,000
2,000
2,000
4,000
4,000
4,000
4,000
4,000
4,000
0.48
0.47
0.29
0.27
0.44
0.42
0.39
0.38
0.34
0.34
$38,261
43,927
62,298
67,669
74,908
65,388
87,812
103,158
103,158
9.10
6.29
8.27
7.42
8.00
6.36
8.27
8.68
8.71
0.30
0.29
0.26
1.46
1.50
1.36
1.30
0.96
0.84
0.22
0.63
0.58
1.39
1.59
4.18
4.05
12.69
6.45
$558
0.13
0.04
$5,004
3,324
3,818
4,356
4,811
7,308
5,639
8,561
11,846
10,171
1.19
0.52
0.55
0.58
0.53
0.78
0.55
0.81
1.00
0.86
46.65
42.99
39.81
43.89
47.04
48.64
47.10
42.10
42.23
1934 35                    - 	
$1,995
1,999
1,889
4,963
9,078
9,973
9,961
8,624
8,317
$1,988
2,000
1,993
13,331
14,000
13,979
13,860
11,487
9,924
$1,423
4,391
4,384
12,700
14,929
42,956
42,990
150,759
76,383
$300,000
300,000
300,000
400,000
440,000
500,000
500,000
500,000
500,000
1Q3*» 36
	
1936-37                       	
1,423
812
967
4,211
4,491
12,030
14,190
289
1937-38                         	
1938 39
1939 40
1940-41                        	
$9,803
12,450
13,148
0.92
1941-42	
1942-43	
1.05
1.11
Ten-year averages .....
$882,278
$244,964
27.77
$3,831
0.43
$110,176
12.49
$22,213
2.52
$5,680
0.64
$3,300
0.37
$64,658
7.33
$8,256
0.94
$35,091
3.98
$85
$6,484
0.74
$374,000
42.39
$3,540
0.40
109 FOREST INQUIRY. Q 111
It is manifest that for many years the principal source of direct forest
revenue has been the moneys received from royalties averaging, over the
ten-year period under review, 57.44 per cent, of total receipts. Timber
sales accounted for 19.61 per cent, and licences 17.09 per cent. The
revenue from timber sales is chiefly stumpage based on an upset price fixed
for each sale at a rate per M. feet to be paid for as and when cut and scaled.
Royalty is also payable on production from timber-sale areas but as royalty
is merely the reservation to the Crown of the Crown's interest in the timber
sold I see no valid reason why this interest should not be included in the
stumpage price. Cutting rights under the present form of leases and
licences on which there is payable a yearly rental are in a different category and the reservation of the Crown's interest in the timber when cut
would require the continuance of the present royalty system of translating
that interest into money.
As licensed areas are logged off, or licences lapse, the revenue from
this source is declining and will be reduced inevitably to the vanishing
point. Timber-sale revenue, on the other hand, is increasing in absolute
and relative value.
The efficiency and extent of future forest planning will be in direct
ratio to expenditures on an adequately remunerated personnel and research in the management, conservation, regeneration and reforestation,
and protection of our forest areas.
In 1910 a Royal Commission was appointed to inquire into forestry
matters in this Province and an important recommendation was contained
in the report of the Commission relative to the forest revenue. It reads
as follows:—
" Your Commissioners regard the income from royalty on timber as
differing essentially from any other form of revenue in the Province. Such
receipts should be regarded as capital—not as current revenue. We have no
hesitation in recommending that the amount so received, large as it may
appear, should be expended by the Government for the protection, conservation, and restoration of our timber resources. With our present knowledge
regarding re-afforestation, to treat these receipts as other than capital would
be utterly unsound in principle and might produce disastrous results in the
ultimate impairment of the public estate."
It is regrettable to have to record that for thirty-five years this recommendation has been consistently ignored and disregarded by succeeding
Governments. Millions upon millions of dollars have been drained from
our forests into the general revenue to help pay for governmental activities
and services wholly unconnected with the protection and development of
the primary source of our Provincial wealth. (See accompanying graph
illustrating total British Columbia forest revenue and expenditure for
years 1912-43.)
If our forest administration were adequately financed to fulfil properly
its function of protection, conservation, management, and development of
our forest resources then any surplus forest revenues could be absorbed
into the general revenue. But such has never been and is not now the case.
Our forest administration for years has not been adequately financed. Q 112
BRITISH COLUMBIA.
GRAPH    SHOWING     TOTAL    & C.   FOREST      REVENUE    AND    EXPENDITURE       (I9U-I943)
Edpffod i lure
A
\    /
\   /
1911    1913    l.i*    1915    1916   1917    1.1_5   I«I9   I.2.0  1921   1921   1925    192-t   1929   1929   nlj  1929    1929   195.   |9H    192b   I13J    1934   1935    I9JG   193;  Olr   "tit   '9Vfl   '°n    '.il    ii.5 FOREST INQUIRY.
Q 113
A comparison between amount received from direct forest revenue
and forest expenditures leaves no doubt on that score. That comparison
covering the ten-year period 1933-34 to 1942-43 follows:—
FOREST REVENUE AND EXPENDITURE.
Year.
Total
Provincial
Revenue.
Total Forest
Revenue.!
Per Cent,
of Total
Revenue.
Total Forest
Expenditure.
Per Cent,
of Forest
Revenue.
Per Cent,
of Provincial
Revenue.
1933-34   _____
1934-35 	
1935-36..____ ._ 	
1936-37_  _ 	
1937-38  _ ....
1938-39  	
1939-40.   _
1940-41._ 	
1941-42 	
1942-43 	
$20,208,860
22,761,719
25,862,077
28,102,612
31,036,943
32,639,826
32,826,438
36,253,936
38,763,546
39,957,353
$2,215,886
2,882,924
3,418,211
3,767,608
3,992,337
4,631,123
5,044,597
5,339,746
5,839,586
5,290,795
12.0
12.7
13.1
13.5
12.9
14.1
15.3
14.5
15.0
13.0
$420,429
643,123
697,798
753,476
911,376
935,358
1,027,862
1,061,609
1,187,632
1,184,121
19.0
22.2
20.5
20.0
22.8
20.1
20.2
19.9
20.3
22.4
2.08
2.82
2.69
2.68
2.90
2.86
3.19
2.92
3.06
2.96
(1)   Includes timber land tax and  Provincial income tax
Department and not usually regarded as direct forest revenue.
on forest industry,  collected by the Finance
If the timber land and income taxes are deducted from the foregoing
then the following comparisons appear:—
Total
Provincial
Revenue.
Total Forest
Revenue.
Per Cent,
of Total
Revenue.
Total Forest
Expenditure.
Per Cent,
of Forest
Revenue.
Per Cent,
of Provincial
Revenue.
1933-34
1934-35
1935-36
1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
$20,208,860
22,761,719
25,862,077
28,102,612
31,036,943
32,639,826
32,826,438
36,253,936
38,763,546
39,957,353
$1,768
2,266
2,841
3,001
3,257
2,982
3,236
3,549
4,057
3,519
999
710
419
055
525
,702
731
,931
,434
,892
8.7
9.9
10.9
10.6
10.4
9.1
9.8
9.7
10.4
$420,429
643,123
697,798
753,476
911,376
935,358
1,027,862
1,061,609
1,187,632
1,184,121
23.8
28.4
24.5
25.1
28.0
31.4
31.8
29.7
29.1
33.6
2.08
2.82
2.69
2.68
2.90
2.86
3.19
2.92
3.06
2.96
Other Canadian Provinces, not nearly as dependent as we are on our
forest wealth for our continued prosperity, are spending relatively larger
proportions of forestry income on forestry administration than in this
Province.
A study of the comparative relationship of direct revenue to expenditures in other Provinces discloses the following:—  FOREST REVENUE AND EXPENDITURE BY PROVINCES, 1933-43.
Fiscal Year.
Total Provinces.
Nova Scotia.
New Brunswick.
Quebec.
Ontario.
Manitoba.
Saskatchewan.
Alberta.
British Columbia.
Revenue.
Expenditure.
Revenue.
Expenditure.
Revenue.
Expenditure.
Revenue.
Expenditure.
Revenue.
Expenditure.
Revenue.
Expenditure.
Revenue.
Expenditure.
Revenue.
Expenditure.
Revenue.
Expenditure.
1933-34	
1934-35	
$6,537,028
6,658,724
6,850,594
10,896,638
11,956,914
$5,121,086
4,832,249
3,579,628
4,724,801
5,599,305
$119,466
134,106
159,060
181,425
181,425
$91,547
108,321
71,726
66,890
66,890
$455,182
683,281
565,434
629,935
957,429
$148,870
246,245
276,559
191,922
210,000
$1,789,537
1,718,718
2,355,034
3,581,797
3,516,001
$1,906,170
1,385,440
1,424,770
1,361,166
1,013,692
$1,363,483
1,562,150
410,178*
2,603,564
2,923,380
$1,837,122
2,057,166
439,322*
1,721,362
2,600,136
$100,332 •
150,955
201,604
201,416
239,870
$174,639
142,175
142,757
160,469
176,050
$126,585
109,257
153,647
217,973
225,414
$212,000
212,600
203,900
224,200
247,392
$148,403
178,991
258,764
321,737
345,315
$189,124
179,951
197,453
160,116
288,374
$1,768,999
2,266,710
2,841,419
3,001,055
3,257,525
$420,429
643,123
1935-36	
1936-37- 	
697,798
753,476
1937-38	
911,376
Total     	
$42,899,898
8,579,980
$23,857,069
4,771,414
$775,482
155,096
$405,374
81,075
$3,291,261
658,252
$1,073,596
214,719
$12,961,087
2,592,217
$7,091,238
1,418,248
$8,862,755
1,772,551
$8,655,108
1,731,022
$894,177
178,835
$796,090
159,218
$832,876
166,575
$1,100,092
220,018
$1,253,210
250,642
$1,015,018
203,004
$13,135,708
2,627,141
$3,426,201
Five-year averages	
685,240
1938-39	
1939-40	
$13,628,865
13,853,550
16,201,366
17,526,505
17,858,544
$6,825,256
6,901,900
6,897,603
7,396,003
7,611,043
$175,640
177,023
164,663
187,950
201,652
$90,343
113,529
105,755
118,349
203,153
$870,950
683,587
1,051,926
1,121,426
1,237,703
$223,097
224,774
200,998
233,047
317,597
$4,392,626
6,002,448
5,994,046
6,313,841
6,902,355
$2,217,170
2,419,689
2,456,758
2,651,943
2,722,633
$3,912,072
3,863,861
4,153,237
4,264,094
4,241,088
$2,622,133
2,527,704
2,454,495
2,267,880
2,367,700
$211,086
231,217
311,377
298,597
314,472
$175,847
170,815
202,973
223,420
198,549
$241,248
311,815
409,721
550,985
667,210
$232,307
235,509
180,620
286,862
233,703
$298,433
359,786
612,175
732,178
774,172
$352,847
274,522
268,162
458,621
398,274
$2,982,702
3,236,731
3,549,931
4,057,434
3,519,892
$935,358
1,027,862
1940-41	
1,061,609
1941-42	
1,187,631
1942-43	
1,168,935
Total	
Five-year averages	
$79,068,830
15,813,766
$35,631,805
7,126,361
$906,928
181,385
$631,129
126,226
$4,965,592
993,118
$1,199,513
239,902
$29,605,316
5,921,063
$12,468,193
2,493,638
$20,434,352
4,086,870
$12,239,912
2,447,982
$1,336,749
273,349
$971,604
195,321
$2,180,976
436,195
$1,169,001
233,800
$2,776,744
555,349
$1,752,424
350,485
$17,346,690
3,469,338
$5,381,395
1,076,279
* Five months.
115 FOREST INQUIRY.
Q 117
An analysis of these figures shows that the Provinces rank in the following order in their relation of revenue to expenditure for the ten-year
period 1933-42:— Percent.
Saskatchewan   93.0
Manitoba   80.0
Ontario   79.5
Alberta   72.0
Nova Scotia   62.5
New Brunswick  28.5
British Columbia  28.8
Average of all Provinces  63.5
To discover that in the past ten years this Province has spent, of its
direct forest revenue, in the administration, development, and protection
of our forests, with their tremendous present and potential values to almost
every branch of our Provincial economy, a sum equal in percentage to that
spent by New Brunswick, and lower in percentage than that spent by any
other Canadian Province is disquieting.
The neighbouring states of Washington and Oregon are divided by the
Cascades into divisions generally similar to our Coast and Interior areas.
The Douglas fir belt in Federal ownership lying west of the Cascades in
those two States is administered by the United States Forest Service as
one unit, designated " Region 6." Region 6 contains 23!/2 million acres
of forest land, or about one-third of the area of the productive forest land
of this Province. The direct forest revenues from, and expenditures
charged against, that Region, 1943-44, were as follows:—
Year.
Revenue.
Expenditure.
Ratio of
Expenditure
to Revenue.
1943                                                  	
$3,445,732
6,156,569
$7,465,921
8,803,609
Per Cent.
216.6
1944       	
142.9
Totals    __             _   _____ _ _ _ 	
$9,602,301
$16,269,530
169.4
Total expenditures chargeable against Region 6 for these two years
amounts to $6,667,229 more than direct revenues. Fire-protection costs
expended by private fire associations are not included in these figures and
would add a considerable sum to over-all expenditures in this region.
Total expenditures in this Province for those same two years amounts
to $5,610,510 less than direct revenue.    The comparison speaks for itself. Q 118
BRITISH COLUMBIA.
Only 2 per cent, of the productive land area of British Columbia is
arable. To foster agriculture on this land area the Provincial Government
spent many times the amount of direct revenue derived therefrom in the
years indicated, as follows:-—
Year.
Ex'pens'es.             R^enue-
Ratio of
Expenditure
to Revenue.
1933-34    ______ _____ ____
1934-35_   .__   _   __     __ ._    ...
$281,044
283,277
295,725
339,412
348,227
347,835
337,830
327,513
359,043
313,734
$14,830
14,063
16,402
10,913
18,400
17,678
16,621
15,601
21,517
21,260
Per Cent.
1,895.10
2,014.34
1935-36        _____    _„__.     _.__
1,802.98
1936-37  ____ __     _ _.     _
3,110.16
1937-38.
1,892.54
1,967.62
1938-39 _   ___ ___ ______ ___ _     ...
1939-40     ___     '     	
2,032.55
1940-41..      ...       __	
2,099.31
1941-42  _ __.
1,667.11
1,475.71
1942-43_   _. „_.__
My comparison is not intended as a criticism of the amount spent on
agricultural development. Indeed, the Department of Agriculture is to be
commended for its aggressive policies.
The short-term view apparently motivating forest financing in the
past has led us to the stage where the goose which lays the golden eggs is
slowly dying of malnutrition and is largely responsible for the present
unbalanced state of our forest resource, including the alarming areas of
denuded lands which, under a proper policy of forest management, protecting and increasing our growing stock, and regulating our logging
industry, would now be growing forests for the future. Public apathy,
past governmental inertia, and the natural inclination of the industry to
follow the line of least resistance all contribute to our present picture. The
Government, at least, is now alive to our need of a new policy as evidenced
by this inquiry. Industry also recognizes the simple fact that our forests
are not inexhaustible and is now ready, able, and willing to do its part
provided, in the new conception of forest management, those burdens of
taxation and carrying charges which compel liquidation are dealt with
equitably.
Public education is still an essential and the public conscience must be
awakened to the fact that forest revenue must be regarded as capital to be
ploughed back into the vitally essential business of protecting, conserving,
restoring, and managing our forest resources. This requirement may
mean less money for social services; it may mean taxation increases in
other fields, but the present policy of regarding forest income as general
revenue must changed now and not in the distant and nebulous future.
The public estate has suffered impairment during the last thirty-five
years due to lack of provided funds for essential forest management. The
public interest requires that this state of affairs should not continue into
the future. FOREST INQUIRY. Q 119
ADMINISTRATION.
Forest administration in this Province is the responsibility of the
Department of Lands and Forests. The Forest Service is under the direction of the Deputy Minister of Forests.
The service may be divided into two broad administrative classifications : Head Office and Field Administration.   The Head Office administra-'
tion is divided into the following five divisions:  Operations, Management,
Economics, Grazing, and Records.
The Operations division is responsible for all forest protection activities, including purchase and maintenance of equipment, hiring and supervision of personnel, and allotment of funds for protection and general
expenses.    A Senior Forester is in charge.
The Management division, also under a Senior Forester, is responsible
for the sale of Crown timber, cutting, marking, and scaling of timber, land
classification, silviculture, and field inspection work.
The Economics division, in charge of a Senior Forester, covers forest
inventory and surveys, reforestation, forest working plans, forest reserves,
forest research, nurseries, and parks.
The Grazing division is responsible for the management of Crown
ranges, grazing permits and revenue therefrom, and range improvements.
At present the work is being carried on by the field staff.
The Records division is the accounting branch of the service and is in
charge of a Chief Accountant.
For field administrative purposes the Province is divided into five
forest districts with headquarters at Vancouver, Prince Rupert, Prince
George, Kamloops, and Nelson. The accompanying map (see page 121)
shows the district boundaries and the broad line of division between Coast
and Interior forests.
Each district is in the charge of a District Forester, responsible to the
Deputy Minister. Each district administration is, in a sense, a smaller edition of Head Office administration with similar allocation of responsibilities.
The forest districts are, in turn, divided into ranger districts, each in
the charge of a ranger. He is the man on the ground and is the officer who
cruises and appraises timber, inspects cutting and scaling operations, plans
protection, and organizes fire-fighting activities. In general, he is in the
front line of the service.
Personnel of the service may be divided into three categories: Technical staff, non-technical field staff, office and clerical staff.
The technical staff is made up of men holding a degree in forestry
from some recognized university, and of those men who, because of long
service and proved abilities, have been promoted to that category.
The non-technical field staff has as its nucleus the rangers and assistant rangers who are appointed solely on the basis of competitive examinations held by the Forest Service as delegate of the Civil Service
Commissioner.    Senior positions are filled by promotion. Q 120 BRITISH COLUMBIA.
Classification of personnel follows:—
CLASSIFICATION OF PERSONNEL, 1944.
Permanent.
Chief Forester,d) Assistant Chief Forester, and Division
Foresters   5
District Foresters and Assistant District Foresters  10
Assistant Foresters   24
f      6*
Supervisors of Rangers and Fire Inspectors <       _
55
10*
Rangers	
Supervisors of Scalers and Assistants        3
Scalers i \      .*
Inspectors, Royalty and Export  2
Mechanical, Radio and Engineering Supervisory       4
Surveys and Reconnaissance Assistants       5*
Nursery and Reforestation Assistants :       8*
Draughtsmen \      fi#
f 8^1
Clerks, Stenographers, and Messengers ■] „.*
5
Mechanics, Carpenters, and Technicians -j       .*
Launch Crewmen      13
Miscellaneous       1*
Total, permanent personnel j    „_s
'    Seasonal.
Assistant Rangers   111
Patrolmen    48
Lookout-men     74
Dispatchers and Radio Operators     43
Fire Suppression Crewmen  129
Cruisers and Compass-men       5
Miscellaneous       43
Total, seasonal personnel  453
Total, all personnel -J    „,.*
Note.—Permanent is a tabulation of positions occupied for at least part of the year under voted salaries.
Total number of positions occupied December 31st, 1944, was 226.
(1) Prior to 1945 the Forest Administration was a branch of the Lands Department, but in that year
it was given the status of a Department and the Chief Forester is now known as the Deputy Minister of
Forests.
* Continuously employed but no specific positions or voted salaries for the position. Ssooraphic Branch  b. C.
121 FOREST INQUIRY.
Q 123
The distribution of personnel, both permanent and temporary, in the
various forest districts follows:—
Vancouver District.
(Productive area, 7,366,900 acres.)
District Forester.
(Assistant District Forester.)
Supervisor of Scalers.
(Assistant Supervisor of Scalers.)
Three Assistant Foresters.
Two Fire Inspectors.
One Export Inspector.
Twenty-six Clerks, Stenographers, etc.
Two Draughtsmen.
Five Mechanics, Boat-builders, etc.
Three Supervisors of Rangers.
Twenty Rangers.
Eight Launch Crewmen.
*Twenty-threq§Assistant Rangers.
^Sixteen Patrolmen.
*Fourteen Lookout-men.
*Sixteen Dispatchers.
*Twenty Miscellaneous.
Prince Rupert District.
(Productive area, 10,228,800 acres.)
District Forester.
(Assistant District Forester.)
Nine Clerks.
Nine Rangers.
Three Launch Crewmen.
*Eight Assistant Rangers.
*Eight Patrolmen.
*Six Lookout-men.
*Five Miscellaneous.
Prince George District.
(Productive area, 23,097,800 acres.)
District Forester.
(Assistant District Forester.
Seven Clerks, Stenographers,
One Supervisor of Rangers.
Nine Rangers.
etc.
^Fifteen Assistant Rangers.
*Seven Patrolmen.
*Nine Lookout-men.
*Four Miscellaneous.
Kamloops District.
(Productive area, 17,193,200 acres.)
District Forester.
(Assistant District Forester.)
Two Assistant Foresters.
One Supervisor of Sealers.
One Fire Inspector.
Eight Clerks, Stenographers, etc.
One Draughtsman.
Sixteen Rangers.
*Twenty-two Patrolmen.
*Fifteen Lookout-men.
*Thirteen Dispatchers.
*Nine Fire Suppression Crewmen.
*Four Miscellaneous.
Nelson District.
(Productive area, 5,980,800 acres.)
District Forester.
(Assistant District Forester.)
Two Assistant Foresters.
One Fire Inspector.
Ten Clerks, Stenographers, etc.
One Draughtsman.
One Supervisor of Rangers.
Eleven Rangers.
*Twenty-five Assistant Rangers.
*Twenty Patrolmen.
*Seventeen Lookout-men.
*Eleven Dispatchers.
*Twelve Fire Suppression Crewmen.
*Ten Miscellaneous.
* Temporary staff during summer fire season. Q 124 BRITISH COLUMBIA.
Upon many of the subjects upon which evidence was adduced before
me, witnesses advanced views and expressed opinions difficult of reconciliation, but I am pleased to record that almost without exception representatives of the various forest industries expressed satisfaction with the work
accomplished by the Forest Service within the limitations imposed upon
its activities by lack of adequate funds for its needs.
The Service needs more money in order to increase the number of its
technical personnel, to pay higher salaries, and to permit.the training of
its non-technical fiejd staff.
The management of our forest areas on a sustained-yield basis will
require the services of technically trained foresters in far greater numbers
than at present employed. The present staff of thirty-five technical foresters can not hope to cope with future forest management requirements and,
for that matter, is below what the present necessities demand. A simple
division of the number of trained foresters into the productive land acreage
of each district will illustrate my comment. The number of rangers is
also below standard, both for present and future administrative needs.
The same observation is equally valid in relation to all other divisions
or branches of the Forest Service.
The Deputy Minister of Forests estimates that in order to carry out
effectively a programme of planned forest management he requires a permanent staff totalling 689 members instead of the present total of 243.
In my opinion, based on the evidence, he must have that staff if our forests
in the future are to be properly managed, conserved, regenerated, and
protected.
The salaries paid by the Service should be high enough to attract men
of ability and to keep them when once employed. For some time past the
most promising men, especially in the technical end of the work have been
leaving the Service because of the offer of higher paid employment in
industry. This is not surprising when technicians can ask and receive
from industry twice the salary paid by the Service. The Crown has too
valuable an interest in our forest land areas to permit this continual loss
of its best men.
The necessity of having a properly trained non-technical field staff
should need no elaboration.    Ranger schools are needed for this purpose.
It seems to me that consideration should be given to the possibility of
increasing the number of Forest Districts with consequent reduction of the
size of each administrative unit.
I note that in Sweden, which has a forest land area of about 58 million
acres, 76-per cent, of which is privately owned, there are over 100 forest
districts, each in charge of a trained forester. Each of these districts
therefore averages about 580,000 acres. These districts are again subdivided into 445 ranger districts.
In Central and Western Germany the size of their administrative units
ranged from 6,175 to 8,650 acres, and in Prussia averaged 11,360 acres.
Finland, with a productive forest land area of about 65 million acres,
is divided into 18 districts each of which is in charge of a Forestry Board. FOREST INQUIRY. Q 125
One member of this Board must have graduated from a university course
in forestry. These Boards are charged with the responsibility of regulating private forests within their jurisdiction. Private forests total about
40 million acres. The average acreage, therefore, under each Board is a
little over 2 million acres. The State forests of Finland amount to about
25 million acres and are divided into four forest districts, each of which is
again subdivided into two or three inspection areas. Each inspection area,
in turn, is again divided into an average of eight management districts,
each of which is in the charge of a trained forester. As a rough estimate,
I would conclude that each ultimate unit administered by a forester is about
250,000 acres.
The acreage figures quoted are not intended to be precisely accurate
but are approximations close enough for purposes of comparison.
The total productive forest land area of this Province is 75,022,500
acres. Of this total, 63,867,500 acres are within the five forest districts.
The remainder or 11,155,000 acres comprises the northern forest area and
is not within any forest district. The average productive acreage, therefore, of each of our forest districts administered by a professional forester
is over 12 million acres.
Forest management includes fire-protection measures and the ranger
district is the key administrative unit for this purpose. Fires originate
and must be fought on land areas unproductive as well as productive. The
five forest districts cover a total land area of approximately 165 million
acres. There are sixty-five ranger districts, therefore each ranger district
averages about 2,500,000 acres or 390 square miles.
While I do not suggest that our forest administration be so intensively
organized as that of the European countries, nevertheless the comparisons
are not without interest and support my conclusion that our forest districts
might well be increased in number and thus decreased in area.
SUMMARY OF PRESENT POSITION.
Up to this stage of the report I have been endeavouring to collect the
relevant facts in order to evaluate our present position. I have refrained
from a too detailed study of the varied aspects of the subject because I was
apprehensive that to do so would result in the main features of concern
being buried in an avalanche of relatively unimportant particulars. At
this point I consider it politic to pause for a moment and look back over
the ground covered to see what factors have emerged. The following are
the most prominent:—
(1.) This Province, because of its topography, soil conditions, and
climate, is a geographic unit in which the growing of perpetual forest crops
is a prime essential if we are to utilize the fertility of the soil for the
purpose for which it is suited.
(2.) The forests and industries based, or dependent, upon the extraction processes and conversion of growing trees into consumer products, are
of incalculable consequence to the economic and social development of Q 126 BRITISH COLUMBIA.
the Province, both in relation to the direct and indirect benefits flowing
therefrom.
(3.) Our Coast forests are in an unbalanced state of growth in that
about 78 per cent, of our productive forest land on the Coast is covered by
mature and overmature forests, adding little, if any, annual increment.
(4.) The forests and forest reserves are not being managed to ensure
their continued productivity, due to lack of adequate funds and personnel
necessary to effectuate this purpose.
(5.) The present extent of our denuded land area is a matter of grave
concern and it is increasing each year.
(6.) The present area of young-growth forests is inadequate for our
future forest needs.
(7.) This young growth is not properly protected from destruction
by fire.
(8.) The Coast stands are estimated to contain 180 billion feet of
timber which will be accessible when required.
(9.)  The Interior stands contain 100 billion feet of accessible timber.
(10.) Annual depletion on the Coast from logging, net fire and insect
losses, averages 2,792,467,464 B.F. and depletion in the Interior from these
same causes averages 1,083,954,347 B.F. annually.
(11.) Coast depletion far exceeds increment because of the high percentage of forest land adding no increment while Interior increment
exceeds depletion because of the large area of immature forests adding
increment.
(12.) A sustained-yield programme is not possible on the Coast until
the mature forests are replaced by young growing stock.
(13.) Assuming a rotation age of 60 years, the allowable annual cut
on the Coast must not exceed 35 billion feet during the next ten years.
(14.) Mature Douglas fir stands on the Coast will be cut out in about
thirty years, resulting in a higher production of hemlock and cedar, with
consequent effect upon sawmill construction and operation and necessitating increased trade extension activities.
(15.) Hemlock logs should be graded with concomitant increases in
royalty rates and custom dry-kilns are needed for treating hemlock for
export markets.
(16.) Reduction of logging and sawmill waste and its utilization are
economic imperatives.
(17.) Standard sawmills and pulp and paper mills generally are of
high standard and are adapting these processes to meet the exigencies of
the future.    Portable mills should be licensed.
(18.) The export of Douglas fir, balsam, and hemlock logs should be
discouraged.
(19.) Forest tenures and carrying charges thereon require revision in
so far as the present systems of tenure and charges encourage liquidation
and discourage the practice of private forestry. FOREST INQUIRY. Q 127
(20.) The Forest Service is to be commended for the manner in which
its head office and field administration is conducted within the limitations
imposed upon its activities by lack of funds adequate for its needs.
(21.) It is essential that a Royal Commission, ten years hence, reexamine all aspects of forestry in the light of developments during that
ten-year period, in order to determine the validity of the facts presented
to this inquiry and my conclusions thereon.
THE OBJECTIVES.
Having reviewed our present position, the next step must be to define
our broad future objectives. At present our forest resources might be
visualized as a slowly descending spiral. That picture must be changed to
an ascending spiral. Differently phrased, we must change over from the
present system of unmanaged and unregulated liquidation of our forested
areas to a planned and regulated policy of forest management, leading
eventually to a programme ensuring a sustained yield from all our productive land area.
The expression " sustained yield " now requires explanation. Although
professional foresters, when treating this subject, appear to have much
the same mental concept, their definitions do not always agree. The disagreements, however, appear to me to be more of scope than of substance,
and arise, for instance, from the endeavour to include within the definition
reference to silviculture requirements and multiple forest uses.
Silviculture can, and will, increase the yield and the optimum yield
would result from an intensive use of the productive capacity of the area.
A sustained-yield policy has, as one objective, the maintenance of forest
cover and growth, thus ensuring a perpetual supply of raw material for
forest industries with consequent stability of industrial communities and
assurance of permanent pay-rolls.
A no less important objective is the perpetuation of the forest-cover
to assure the continuance of the many direct and indirect benefits which
flow therefrom in addition to the mere growing of wood. In my view,
however, none of these factors is a necessary or essential ingredient of the
definition to be applied to the term " sustained yield."
I would define " sustained yield " to mean a perpetual yield of wood of
commercially usable quality from regional areas in yearly or periodic quantities of equal or increasing volume. That is my understanding of the
concept expressed in its basic form.
That, then, must be our objective: To so manage our forests that all
our forest land is sustaining a perpetual yield of timber to the fullest extent
of its productive capacity. When that is accomplished all benefits, direct
and indirect, of a sustained-yield management policy will be realized; providing, of course, that the multiple purpose of our forests is recognized as
an aim as important as balancing cut and increment.
In my opening remarks I made mention of the main contributions our
forest makes to our economic and social welfare.    May I repeat here that Q 128 BRITISH COLUMBIA.
a sustained-yield policy, perpetuating our forest stands, will not only provide a continuity of wood-supply essential to maintain our forest industries, primary and secondary, with consequent regional stability of employment, but will also ensure a continued forest-cover adequate to perform the
invaluable functions of watershed protection, stream-flow and run-off
control, the prevention of soil erosion, and of providing recreational and
scenic areas, and a home for our wild bird and animal life.
Our forest industries have been living on an expenditure of forest
capital that has taken hundreds of years to accumulate at no cost to industry. The time has now come when we have to plan to live on forest interest and maintain our capital unimpaired. How are we to accomplish this
purpose?
THE MEANS TO BE ADOPTED TO ACCOMPLISH
THE OBJECTIVE.
That brings us to the third phase of this report. Having reviewed
our present position and stated our objective, the next step must be a
consideration of the various things that must be done to bring about a
sustained-yield policy of forest management with all that is implicit therein.
I propose to deal with the subject under the various headings below, but
the order in which they appear is not to be taken as an indication of the
relative importance of each heading, but rather as indicative of the
relative urgency needed in the implementation of each recommendation.
(1.) Fire-protection must be greatly increased.
(2.)  The rate of planting denuded areas of productive forest land—
especially on the Coast—must be greatly increased.
(3.)   Logging methods must be regulated to prevent destructive exploitation and to ensure full regeneration of cut-over lands.
(4.)  New systems of tenure and taxation need be formulated to
encourage  private forestry and  to  remove causes  compelling
liquidation.
(5.)   Management plans for individual regional working-circles should
be formulated and implemented by regulation.
(6.)  A commission should be created and charged with the full responsibility for all forestry management during the conversion period.
(7.)  A long-term programme of general education in forestry subjects should be inaugurated and there must be an extension and
improvement of those existing educational facilities designed to
train and graduate professional foresters.
(8.)  There must be a more intensified research in and practise of
silvicultural methods.
(9.)  Facilities and funds must be provided for extensive forestry
research.
It must not be thought that, as and when the objectives outlined above
are reached, the forests of this Province will then be on a sustained-yield
basis.   That desired end can not be reached until our mature timber on the FOREST INQUIRY. Q 129
Coast is cut and the area now covered by that old growth—which might
just as well be in piles in a lumber-yard as in the forest, so far as increment is concerned—is growing a new forest. But unless we do plant our
denuded areas and secure regeneration of our cut-over lands and protect
our new growth from fire, we can never hope to save our forest wealth
from inevitable extinction, much less succeed in attaining a sustained-yield
forest production. There is much to be done and the start must be made
at once before it is too late. The whole is the sum of its parts, and if we
succeed in setting up working-circles, region by region, the day will come,
and it will not be long, when the people of this Province can, with pride of
achievement, hand down to their sons, and their son's sons for all time to
come, the wealth and benefits of our forest land in all its growing beauty.
We fail at the threshold if we do not preserve our forests from fire.
FIRE-PROTECTION.
Fire-protection in relation to both personnel and equipment is grossly
inadequate.    The reason is the usual one:  lack of sufficient funds.
It will be remembered the total land area of the Province is 234,403,000
acres, of which 75,023,000 acres are of productive forest land and that
63,867,500 acres of these productive areas lie within the five organized
districts and the remainder is in the Northern area not within any district.
Fire-protection can not, however, be restricted to the productive land
areas. Fires must be fought and controlled on areas classified as barren,
scrub, or farm lands, to prevent their escape to lands containing valuable
forest-growth. For the ten-year period, 1935 to 1944, 37.26 per cent, of
all fires originated on land classified as other than timber land.
The Forest Service estimates that, of a total area of about 165 million
productive and unproductive acres in the five forest districts, at least 100
million acres thereof must be afforded fire-protection in varying degrees
of intensity.
As I mentioned before, each Forest Ranger exercises jurisdiction in
forest-protection matters over an average of 2,500,000 acres. During the
fire season he has a staff of assistants averaging four to each district.
The Provincial-wide average, then, is one man to each 500,000 acres. The
comparative United States Forest Service average is one man to 22,000
acres.
Throughout the entire Province only sixty-four lookout-sites are
equipped and manned.
The Forest Service is well aware of the very valuable aid that may be
rendered by aeroplane observation, reconnaissance, and transportation in
fire-protection work. This is especially true in a Province of such vast
areas and so few access roads. Notwithstanding the urgent necessity for
this type of equipment the Forest Service of this Province does not own
a single aeroplane.
To protect 100 million acres of land and our forest resource, present
and potential, worth untold millions of dollars, the Forest Service is the Q 130 BRITISH COLUMBIA.
proud possessor of 3 fire-line ploughs, 11 bulldozers, and 253 fire-pumps.
It must also be recorded that its fire-fighting equipment includes 154 row-
boats and canoes, some of which are equipped with outboard motors.
One of the criteria by which the efficiency of any fire-protection
organization is judged is expressed in the formula, " Every fire should be
out by noon following the day of its occurrence." With one man to every
500,000 acres during the fire season, together with equipment measured in'
terms of one bulldozer to every 10 million acres, it would seem to me the
Forest Service would have to depend upon a good many rain-storms to
meet this requirement. May I at once say that this present deplorable
state of affairs is not due to any administrative weakness in the Forest
Service.   If they are furnished the tools I am satisfied they can do the job.
The Government has never refused to pay whatever sums of money
were required for fire-fighting once the fight was on. It has been niggardly in its appropriation for pre-suppression expenditures. This policy,
if I may say so, with deference, may be expressed in the old saw, " Locking
the stable door after the horse is stolen." The more money spent on fire-
prevention and quick suppression, the less will be required to be spent on
fire-fighting, with consequent reduction also in losses of mature and immature forests.
It seems to me that many persons, outside the industry and the Forest
Service, appear to regard fire losses in mature timber as the most serious
aspect of our fire problem. Such is not the case. The older the forest
is, the greater is its resistance to fire. Fire is the great destroyer of
the young forest-growth, especially up to 20 years of age. To say that
a fire burned over logged-off* land and therefore caused no damage is
tantamount to saying that a school burned down and although all the
young children perished no lives were lost. Unless we protect our young
forests from destruction there is no hope that this Province can continue
to produce timber in the future. As one highly qualified witness expressed
it, "...   fire-protection is 80 per cent, of reforestation."(1)
Another aspect of forest fire damage is also likely to be overlooked.
I refer to the destruction of watersheds with consequent detriment to
stream-flow, irrigation systems, and salmon-spawning grounds. Destruction by fire of our forest-cover also destroys our wild life, leads to wind and
water erosion, and a blackened desolation that, from the aesthetic point of
view, remains an eyesore due to the fact that natural regeneration is
retarded for many years. In some areas the soil is so robbed of its fertility
that centuries must elapse before nature can be persuaded to make them
green again with growing trees.
These are the intangible losses that never appear in the statistics—
nevertheless, the indirect results of forest fires are of greater ultimate
importance than the fire damage that can be calculated in terms of money
value. They must be kept in mind when deciding the extent of the expenditure to be made on fire-protection.
(1)   Colonel William B. Greely. FOREST INQUIRY.
Q 131
Fires begin from many causes. Many are preventable, others are not.
Lightning, for instance, especially in the Interior, is responsible for starting a great many blazes.
We will always have fires to contend with and the objective must be
an organization so equipped and manned that every fire is spotted immediately it starts and is extinguished before it attains a size that will cause
serious damage and cost large sums to control. Every holocaustic conflagration is, in its incipiency, small enough to be crushed beneath a man's
heel.
It is difficult to assess, to any accurate degree, the amount of money
that should be spent on fire-protection in relation to its effectiveness in the
prevention of losses. When fires are extinguished the cost of that operation, and damage suffered, is known but there is no way of ascertaining
what loss would have resulted if the fire had not been intensively fought.
Experience in the past, however, is some guide and the results of a
study conducted by the United States Forest Service into a fire-hazard
situation which developed in like degree on the United States and Canadian
sides of the border near Creston in 1940 is in point. The following is a
brief summary of the facts disclosed in that study:—W
United States. British Columbia.
Area under review... 4,754,000 acres. 5,380,000 acres.
Employed in comparative areas on
opposite sides of
the line  214 men. 47 men.
Lookouts  90 men. 9 men.
Adequate stocks,
tools and equipment    y,() U.S. standards.
Lightning fires  521 to July 1st. 122 to July 26th.
Burned  5,826 acres. More than 220,000 acres,
several wheat-fields,
3 barns, 1 logging camp,
1 man killed, 3 seriously
injured, fires still
burning August 20th.
Maximum area
burned any one
fire  833 acres. 34,680 acres.
Wild life damage  50-100 times that of U.S.
Total damage      $10,000. On the same basis estimated
by U.S.—$415,000.
Cash expenditures
plus damages    $207,000. More than $480,000.
The U.S. Forest Service Study concludes that " On the basis of the ridiculously low damage valuation of only $1.75 per acre the United States Forest
policy of fire control appears to have paid a dividend of $273,000 in natural
resources saved in one fire season " in the limited areas under review.
(1)   " Comparison of Intensive versus Limited Forest Fire Action," by H. T. Gisborne, Northern Rocky
Mountain and Range Experiment Station, Missoula, Montana, September, 1940. Q 132 BRITISH COLUMBIA.
We do know, too, that total lack of fire-protection has resulted in the
denudation of many thousands of acres of productive forest land in the
Peace River area.
A survey in 1931(1) indicated a timber stand in the Peace River Block
of 3,850,800,000 board-feet. Since that time fires have destroyed about
3,350,000,000 feet of this stand, leaving remaining one-half billion feet.
This is a serious loss to the Province with far-reaching economic consequences. How much of this timber would have been saved with a proper
fire-protection organization it is difficult to say, but I note that when
trained fire-fighting crews on the Coast attended 198 fires, they extinguished 171 of them with an average spread of only 5.2 acres per fire.
Examples could be multiplied to establish what I consider a self-
evident truth: adequate fire-protection pays a high dividend. The Deputy
Minister of Forests is hopeful that with a yearly expenditure for fire-protection beginning at $1,500,000 and increasing eventually to $2,500,000 as
organization of personnel and fire-fighting equipment is progressively
stepped up, reasonably satisfactory results may be anticipated. That
seems to me a reasonable estimate when compared with the values to be
protected.
In Region 6, administered by the United States Forest Service, which
comprises about 30 million acres in Washington and Oregon, including
scrub and alpine areas, the total cost for all fire-protection items has
amounted to about $2,500,000 a year.
It is, I think, of interest to consider, at this juncture, how fire-
protection is now financed and where the money is to come from for any
increase in present expenditures.
Finance.
Fire-prevention and fire-fighting organizations result from the inability
of each individual to provide equipment and personnel for the protection of
his own property. In our cities the citizens delegate this duty to trained
fire-prevention and fire-fighting organizations and contribute by way of
taxation to the maintenance thereof. In smaller and less well-organized
communities the citizens themselves form their own volunteer fire brigades
and their mutual and collective efforts supply the means of combating their
neighbours' fires and protecting their own properties from their spread.
Forest fire-protection agencies fall within these general broad classifications with this qualification: that in those jurisdictions in which fire-
protection is the responsibility of mutual associations membership therein
is compulsory. Washington and Oregon supply an example of this system.
In this Province the responsibility of fire prevention and protection is
vested in the State.
The moneys required for this purpose are raised by taxing the owner
of timber land on a flat acreage basis and by a Crown contribution from the
general revenue.    These moneys are paid into the Fire Protection Fund.
(1)   P.G.E. Railway Resources Survey, 1931. FOREST INQUIRY. Q 133
This fund was first set up in 1912 and the original basis was a tax of
1 cent per acre on timber land plus a contribution from the Crown equal
in amount to the tax collected. The tax has gradually increased over the
intervening years to its present rate of 6 cents an acre. This tax is assessed
on Crown grants, licences, leases, timber berths, and timber sales. With
the exception of Crown grants the land covered by these tenures remains
in Crown ownership and can not be held by its temporary occupiers once
the timber is logged off. In consequence, the tax must decrease as the
timber is cut. An illustration of this fact may be found in the diminution
of the acreage held under licences. In 1909 licensed areas amounted to
over 9,500,000 acres. In 1944 about a million and a half acres held under
licences paid the 6-cent tax.
An analysis of the tax collections since 1920 also supports the conclusion that the tax is a diminishing source of revenue. For instance, in
1912 the 1-cent tax amounted to $105,259. In 1920 the tax was doubled
and the 2-cent tax brought in $189,817. In 1929, at 2l/2 cents, $151,632
was collected; while in 1931, at 4 cents, $194,450 was realized. In 1939
the tax was raised to 6 cents, but the revenue therefrom only increased to
$224,303.
The tax for the fiscal year 1943-44 on the 6-cent basis amounted to
$235,795. It would thus appear that notwithstanding an increase in the
tax from 1912 to 1944 of 600 per cent, the revenue therefrom has only
increased to a sum just a little more than double the 1912 revenue. This is
clue solely to the steady shrinkage in the area of timber land paying the tax.
Undoubtedly this trend will continue into the future. I expect, however,
that some proportion of lands now being logged off will remain in the
future in private ownership and continue to be assessed the fire-protection
tax. The present trend may therefore, and to this extent, be retarded.
It does not seem reasonable, however, to look to any future increase from
this source of revenue for greater sums for fire-protection purposes.
The answer seems to be in a larger appropriation of direct forest
revenue to meet the needs of the Service in relation to this branch of its
work. When the time comes—if it ever does—when direct forest revenue
is insufficient for necessary forest expenditures, then the question of
increasing the present fire-protection tax on industry may have to be
considered.
As I mentioned above, the original scheme was to augment the fund
raised by taxation by an equal contribution from general Provincial revenue. This system seems to have been followed until about 1921, at which
time the Government contribution took the form of a direct contribution
without relation to the amount of the tax. For instance, in 1920-21 the
tax amounted to $189,817 and the Crown contribution was for a like
amount.
In 1921-22 the tax realized $192,601, while the Crown contribution
was increased to $300,000. This was again increased in 1937-38 to
$400,000, and again in 1939-40 to $500,000. Since 1939, therefore, the
Service has had to budget its administrative costs on the basis of a sum Q 134 BRITISH COLUMBIA.
available from the tax and Crown contribution, amounting to approximately $750,000 a year. While it is true more moneys were advanced by
the Crown for actual fire-fighting expenditures and the fund thereby suffers from a " chronic deficit," nevertheless, for the purchase of equipment,
building of roads and trails, lookout stations, and such other necessary
and related expenditures the Service was confined to its budget. For these
purposes, as I mentioned before, the Deputy Minister estimated he would
need eventually an additional $1,750,000 a year. The direct forest revenue
should be made available to him for that purpose and to the extent required.
In an earlier part of this report I referred to the great volume and
value of the products of our forests that were exported to foreign markets,
thus creating foreign exchange credits. It will be recalled that the average
annual exports for the years 1939-42 amounted to $70,263,461.
There is no doubt that the forests of this Province are of inestimable
value to the economy of the whole Dominion, both in the direct and indirect
benefits which flow from their existence and use. From the evidence
adduced it is shown that the Dominion Government has collected in income
taxes from the Forestry Industry of this Province, from 1929 to 1943, the
sum of $34,760,289. Dominion expenditures in this Province on forest
pathology and insect-control have been relatively insignificant.
It seems to me because of the benefits accruing to the people of Canada
from the forests of this Province that the Dominion Government should
shoulder some of the financial responsibility for the protection and conservation of this national asset.
The United States Government, since 1924, has recognized its obligation in that regard. Under the provisions of the Clarke-McNary Act the
United States Government now contributes $6,500,000 a year toward the
protection of State and private forests. From 1945 onward the fund will
be increased at the rate of $1,000,000 a year until it totals $9,000,000 a
year.
I have indicated two sources from which money for fire-protection
could be obtained; i.e., from a greater allocation of direct forest revenue
for that purpose, and assistance by way of grant from the Dominion
Government. There is yet another avenue of approach to this question.
I refer to increased contribution for this purpose from the general Provincial revenue. In other words, the present contribution by the Crown
to the Fire Protection Fund should bear a fair relation to the area of Crown-
owned timber land requiring protection instead of the present system of a
lump sum grant.
There still remains in unalienated Crown ownership 75 per cent, of the
22,656,000 acres of timber land in the Province or about 17,000,000 acres.
On the basis of the past contribution of $500,000 per year, this means the
Crown has been paying approximately 3 cents an acre for. the protection
of its acreage of merchantable timber stands. If paying on a parity with
private owners, the Crown contribution would amount to a sum in excess
of $1,000,000 annually. FOREST INQUIRY. Q 135
The term " Crown ownership " in the final analysis may be defined to
mean the ownership by the people of the Province. And I must repeat
that the continued existence of the forest resource of this Province is of
the greatest importance to almost every branch of our economic life. It
therefore follows that the people of this Province should be willing, should
occasion arise, to allocate to the perpetuation of this resource, moneys of
the general Provincial revenue.
I am also of the opinion that logged-off lands remaining in private
ownership or control should continue to pay the fire-protection tax.(1>
While the responsibility for fire-protection has been vested in the
State, nevertheless certain obligations in this regard remain with or have
been imposed upon private owners. For instance, it is the duty of the
occupant of land " diligently to attend to the controlling and extinguishing " of any fires originating on, or coming upon, his land. If the occupant
has been paying the fire-protection tax " the total amount expended by
such person in controlling and extinguishing the fire shall be borne by the
Fire Protection Fund," subject to an adjustment in wage rates.
Operators are obliged to take precautions against fire occurrence and
to maintain fire-fighting equipment up to a specified standard. Cost to
private owners for fire-protection measures, including fire-fighting, has,
over the period 1937-43, averaged about $250,000 a year.<2'
It is the duty of the operators in the Vancouver Forest District (i.e.,
on the South Mainland Coast and Vancouver Island) to dispose of slash and
snags by burning and falling, as the case may be, unless relieved from this
obligation by the Deputy Minister of Forests.
On the North Mainland Coast and in the Interior these and other
hazards are to be abated as directed by any authorized officer of the service.
Slash-burning.
This subject disclosed very many divergent opinions. Considerable
evidence was adduced on whether it is better to burn or not to burn logging
debris. Slash-disposal by burning as a method of abating a fire-hazard
has many exponents as well as many opponents. The effect of burning on
regeneration was also the subject of much debate. I have reached the conclusion, after consideration of the many and varied points of view, that it
is impossible to formulate any policy of general application in relation to
slash-burning. This is so because each individual operation presents a
specific problem in relation to slash-disposal and its effects upon the residual stands, forest soil, the establishment of seedlings by natural regeneration, and probable reduction of hazardous conditions on the area under
review.
It seems to me that the problem and its answer is summed up concisely
and accurately in a publication issued by the Oregon State Board of
Forestry,(3> wherein it is stated:—
(1) See infra under "New Tenure."
(2) Forest Branch Statistics.    Industry estimates an average to be $500,000 per annum.
(3) Bulletin No. 10, April, 1944.    "Slash Burning in Western Oregon." Q 136 BRITISH COLUMBIA.
" There are two strongly opposed schools of thought on slash burning. One
group believes in hard clean burns as good forest practice. The other group
believes that such burning has been very detrimental to future forests, and
some of its proponents would eliminate practically all burning. Either policy
may prove disastrous. Between these two untenable extremes lies a good
deal of ground where common sense application of existing knowledge will
result in effective forestry. What is needed is careful analysis of all the
conditions on each individual area, measurement of the evidence, and decision
to burn or not to burn according to the evidence. Failure to burn, where
the facts indicate a need for burning, is not good forestry. It is equally poor
forestry to burn unless the facts clearly require it."    (The italics are mine.)
The Forest Service is not at present, in its administration of the relevant sections of the " Forest Act " (i.e., section 113 (a) et seq.), insisting
upon a rigorous compliance therewith and I would recommend that the
Act be amended to provide that slash-burning be not compulsory on the
Coast except where so directed by the Deputy Minister. He should, however, have jurisdiction to impose conditions designed to abate the hazard—
such, for example, as the construction of fire-trails.
Slash-disposal in the Interior assumes a somewhat different aspect
than on the Coast owing to the smaller sizes of trees, less dense stands, and
logging methods pursued. The general trend of the evidence indicated
that in the Interior the better method of slash-disposal was by " lopping
and scattering." It was emphasized that by this system the young seedlings were afforded shade in the summer and protected from the crushing
weight of snow in the winter.
The Forest Service is, and has been, prepared to undertake the responsibility of slash-disposal in the Interior at a reasonable cost, to be added to
the timber-sale price. The Interior operators are in general agreement
that this system is desirable.
If feasible for the Interior I see no reason why such a system would
not also operate effectively on the Coast.
One of the difficulties confronting the Service is the necessity of
employing temporary assistance during the fire season. This system of
seasonable employment means that men employed on a temporary basis
can not be trained properly for their work. Each year a new crew has to
be recruited. This difficulty would be solved to a degree if a number of
these men could be employed on a permanent basis and slash-disposal by
the Service would create the jobs necessary for their employment. They
would be given proper training in this regard and thus in the fire season
would be skilled in fire-control work. Others could be employed to advantage in trail construction, tree planting, and so on, and changed about from
one activity to another would soon become a highly proficient body of men.
In Western Washington and Oregon this principle is now followed.
Timber-sale purchasers pay 45 to 70 cents per thousand board-feet of
stumpage cut and, in turn, the United States Forest Service covering
Region 6 uses the money so raised to treat the slash by burning or by
giving it " intensive protection." Incidentally, for fire-protection during
the fire season 1,800 men are employed in this region which comprises
about 30 million acres. FOREST INQUIRY. Q 137
In Eastern Washington, Northern Idaho, Montana, and Western South
Dakota, which areas are within Region 1 of the United States Forest Service and cover about 33 million acres, the responsibility of slash-disposal
is accepted by the Forest Service at a cost to the operator somewhat higher
than in Region 6.
Witnesses from both those United States Regions commend this system as a means of building up an efficient service. One manifest reason
is that the permanent nature of the work tends to attract a better class of
men than are available for temporary seasonal employment.
SNAG-FALLING.
Even the most casual observer motoring along the Coast and Vancouver Island highways will notice the thousands upon thousands of dead,
white, bare, and gaunt skeletons that once were tall growing trees. These
are the snags. Their interior is often an inflammable punk-like powdered
wood. When these snags catch fire they become chimneys from which
pour incandescent streams of sparks. They are always a potential source
of spread of fire and an obligation is put upon the occupier of land to abate
this hazard by falling them when they are over 10 feet in height. Ten feet
was selected because that appeared to be about the limit of height at which
a man shovelling earth could effectively deal with a burning snag. Higher
snags would, it was thought, require special appliances to extinguish, such
as force-pumps, which are not always available.
Snag-falling costs money. One large operation determined the total
cost of snag-falling on 2,000 acres to be $32,000 or $16 an acre. A further
analysis of these figures indicated that the cost of falling snags between
10 and 25 feet in height amounted to $8,800, or $4.40 an acre. It was suggested that the protection gained by the falling of snags under 25 feet in
height did not justify an expenditure of $4.40 per acre and that that money
could be more profitably spent on purchase of equipment, installation of
lookout systems, access roads, and other matters essential to a proper
system of fire-protection.
Other witnesses thought that the problem of snag-falling, akin to that
of slash-burning, could not be compressed into a formula of general application. For instance, on some areas snags 10 feet high should be cut down
whereas in other areas it might be safe to leave snags up to 25 feet in
height.
In Washington a snag is defined as a tree over 25 feet high and 12
inches in diameter.    In Oregon the height is fixed at anything over 15 feet.
I do not think, however, the solution to this question lies in changing
the present height over which snags must be felled. The answer seems to
me to be in placing the obligation of necessary snag-falling on the Service
to be paid for by the owners or occupiers of the land upon which the work
is done. The experience already gained by the Service in snag-falling
indicates that they can do this work at a much cheaper cost than can
industry. For example, the Service felled snags on 20,560 acres at $1.76
per acre; on 6,237 acres the cost on one part of the area amounted to
$2.08 and on another at $3.69 per acre.    The explanation of this dis- Q 138 BRITISH COLUMBIA.
crepancy in costs incurred by industry and the Service in snag-falling is
found in the following excerpt from the evidence of the Deputy Minister:—
"The logger is pretty well tied down to high-class labour, top-wage labour;
and to those men, fallers and buckers, falling of snags is work that they don't
like anyway, and they have to be given some kind of premium to induce them
to do half a job of it. The logging operator is working against time: They
have quotas to fill; one part of the operation has to dovetail into another, so
there is always the time-limit there. When we go at it, we are just falling
snags. We can use second-grade labour; we can use old worn-out fallers,
experienced men who no longer want to work as hard as they used to, and are
satisfied to make a pretty fair day's wage and let it go at that. If they do
a lot, we don't care, and if they do a little, we don't care; and we can use
a type of labour on this kind of work that the logging camps couldn't afford
to have around at all."
Another fact which should tend to reduce the cost of snag-falling is
that men trained in the use of explosives in demolition-work during the
war will be available. Powder should be plentiful and cheap and it would
seem to me that this method of knocking down snags would bear investigation and experimentation.
Closures.
During periods of low humidity and after long-continued hot weather
the threat of disastrous fires seems to hover over a forest like some sinister,
oppressive, and brooding influence. A single spark in this powder-barrel
and in a few minutes a whole forest seemingly explodes into roaring flame.
One way to keep the spark out of the powder during these periods of
high hazard is to keep people out of the woods. The instrument by which
this means is accomplished is the power of closure vested in the Minister.
The closures ordered from time to time have been general in scope and
because of the varied conditions of temperature and humidity in various
areas within the operation of the order this system has been subject to
critical comment by spokesmen for the industry. Logging camps, it is
suggested, have been forced to close when local conditions rendered it quite
safe for men to stay in the woods at work. The Deputy Minister agrees
that the general closure is not altogether satisfactory in operation and he
is quite prepared to set up an organization of more flexibility than at present to meet this criticism. His proposed method of dealing with the closure
question is by a series of steps depending upon the exigencies of the situation.   These steps may be summarized as follows:—
(1.) The organization of a widely distributed system of stations reporting the essential weather data daily, or twice daily during periods
of extreme danger, to a central office:
(2.) This information to be plotted immediately it is received, in much
the same way as the Dominion Weather Bureau plots its weather
data. An experienced fire-control officer should examine this plotted
data critically every day to watch trends and " build up ":
(3.) First action on an indicated dangerous "build up" would be in
the form of warnings:
(4.) Second action would be restrictive orders such as " early shift" or
discontinuing work of the most hazardous description:
(5.) Third action as risk increases, partial closures and closure to public
travel in the woods: FOREST INQUIRY. Q 139
(6.) Fourth action would be complete closure in the most hazardous
zones:
(7.)  Total closure.
I would add to the seven successive steps of the Deputy Minister
another to this effect: that notwithstanding the fact that no closure order
—either partial or complete—had been issued any logging operation at
which the humidity dropped to a reading of 30 should cease work immediately and take the men out of the woods. It should be compulsory for the
operator to maintain, in the area where the logging is being conducted,
one or more hygrometers with automatic devices recording the relative
humidity readings. Insurance companies now insist upon this precaution
as a term of their policies.
As a corollary to forest closures I would recommend that logging or
other access roads upon which the Service has expended public money be
private and not public highways. This would permit the Service to bar
the public from using access roads when at any time it is desirable to discourage travel in the woods.
Probably the main objective of all fire-protection is to reduce the
hazard to an insurable risk which, for forests with their long crop rotations, is one-quarter of 1 per cent, per annum.
I have dealt with the question of financing an organization equipped
to bring about this result.
Assuming we get the money, how is it to be spent? This question
does not present much of a problem. The Service is short of equipment
and personnel and has not the means of getting equipment and personnel
to where the fires are likely to be. Assuming adequate equipment and
enough men to handle it, I think, then, that emphasis should be upon transport. This involves opening up roads into inaccessible areas. Assuming
these areas are of good stands in Crown ownership, the cost of the roads
could be charged against future stumpage.
Access roads are, however, only a partial solution. For one reason
it would take years to build the mileage required for effective coverage
and even then I do not doubt fires will start on the other side of the mountain at which the nearest road ends.
What is needed in a Province such as this, with its great distances
and difficult terrain, is coverage by aeroplanes from strategically located
air strips. These planes, preferably helicopters, when available, could
carry a crew of fire-fighters equipped with parachutes—" smoke jumpers "
—to a fire spotted at its inception. These men, with the aid of equipment,
also dropped by parachute, could be combating a blaze within minutes of
its occurrence.
The United States Forest Service has pioneered this work and they
have accumulated much data upon which we could draw. In fact, the
experience gained by that Service contributed much to the training and
equipment of the American paratroopers during the war.
Men and equipment should not be difficult to secure and it is my view
that the end accomplishment would fully justify whatever expenditure
might be found reasonably necessary. Q 140 BRITISH COLUMBIA.
Considerable discussion arose during the inquiry relative to the division of expenditure for fire-protection between Coast and Interior areas.
This evidence raises a problem of some nicety, if the Service is to be starved
for funds in the future, as it has been in the past.
The method of the allocation of funds presents no difficulty, however,
when sufficient moneys are provided to give adequate protection to both
the Coast and Interior according to the respective needs of those areas.
Unless the Service is furnished with enough money to create and maintain a proper Province-wide fire-protection organization then all plans for
managing our forests for the future might as well be forgotten now for the
simple reason such plans, in the absence of proper fire-protection facilities,
are foredoomed to failure. I assume, therefore, that the Government will,
in the future, see to it that ample funds are made available to the Forest
Service for fire-protection purposes throughout the Province.
When there is enough money for both Coast and Interior protection
the relative percentage of future allocation of funds to each area becomes
irrelevant.
The forest industries " strongly recommend that the Fire Protection
Services for the region west of the Cascade Mountains, comprising the
Vancouver Forest District, and the Coastal section of the Prince Rupert
Forest District, should, at the earliest possible date, be placed in charge
of an independent administrative Coast Forest Fire Commission responsible to the Minister of Forests and constituted under suitable legislative
enactment by amendment to the ' Forest Act.' "
I consider the underlying reason for this recommendation to be the
fear that insufficient funds will be available in the future for adequate
protection of the Coast forests. When considering this recommendation
I must assume that this report will be implemented. That being so, the
fear is groundless and thus the basic reason for the suggested separate
Coast Fire Commission disappears.
In any event, I cannot subscribe to any form of organization that will
have the effect of dividing the forest administration into independent segments.
I do think, however, that within the framework of the present fire-
protection organization some closer integration of this service might well
be effected where practicable by freeing men engaged in this work from
the burden of other unrelated routine administrative duties, so that they
could concentrate their efforts upon what should be their primary responsibility instead of dividing their attention as at present.
Before leaving this subject I would like to emphasize the fact that for
the ten-year period 1935-44, fires caused by campers and smokers averaged
15 and 20 per cent, respectively of all forest fires throughout the Province,
while industrial operations, which would include logging, were responsible
for an average of only 2.6 per cent, of the forest fires during that same
period. It is manifest, therefore, that the public must shoulder a considerable share of the blame for our fire losses. Public education is an essential part of fire-protection. FOREST INQUIRY. Q 141
LOGGING METHODS.
I turn now to consider the second step in the formation of a new
forest policy—viz., the regulation of logging methods to ensure regeneration of cut-over land.
There are conservationists who consider the preservation of our
forests as the only means of preventing their exhaustion. There are
operators who regard the forest as a mine to be exploited and abandoned.
Both of these extreme philosophies must give way to a proper concept of
conservation which provides for the intelligent utilization of our existing
resources of virgin timber and the adoption of means to ensure new growth
to take the place of the trees that are being harvested.
The logger whose only interest is to " cut out and get out" is an
anachronism. He has no place in a planned system of forest management.
The future of the logging industry, like almost every other endeavour,
belongs to those who plan for it.
Logging operators, then, may be divided into two broad classifications:
Those who wish to practise forestry and those who desire to liquidate their
holdings with no regard for the future crop on the lands they are logging.
It is with this second class that I propose to deal at this juncture.
I am firmly of the opinion that any system of logging which fails to
provide for adequate forest reproduction is inimical to the public interest
and ought not to be tolerated.
It is impossible to formulate any one specific logging plan that would
meet the requirements of every area being logged. The one basic principle,
however, that must be insisted upon is that new growth shall follow the
harvesting of the old-growth stands. In some locations that objective
might be secured by a system of selective logging, in another by the " shel-
terwood method," in another by clear cutting and replanting, in yet another
by leaving seed-trees or blocks. These systems, or a combination of them,
will, if wisely planned, ensure regeneration or reforestation of the areas
logged.
My recommendation is, then, that the logger who does not wish to
retain his lands for the practice of sustained-yield production be given an
election to pursue one of two courses: Either he submit his cutting plan
to the Forest Service for approval or else deposit whatever sum may be
deemed sufficient to plant the acreage logged if the logging methods he
chooses to pursue do not result in regeneration. If his cutting plan is
approved by the Forest Service his obligation to secure regeneration is
thereby fulfilled. When he chooses to cut on an unapproved plan his
deposit should be retained for at least eight years and if, at the end of that
period, new growth has appeared to a degree satisfactory to the Forest
Service his deposit should be refunded. If regeneration is not satisfactorily established then the Forest Service would plant the blanks with the
funds deposited. Any surplus moneys should remain the property of the
Service to be expended on any areas over which the cost of planting has
exceeded the sum of the deposit. In this sense the deposit is to be regarded
in the nature of a penalty and forfeited to the Crown. Q 142 BRITISH COLUMBIA.
The Crown has the absolute right to impose such terms as it chooses
upon timber-sale purchasers. Lessees and licensees are subject to such
terms and conditions as may be fixed or imposed, from time to time, upon
them by statute or regulation. Control of methods of logging on these
forms of tenure, therefore, is a simple matter of regulation by Order in
Council.
Control of logging methods on Crown-granted lands does not, I think,
present any real difficulty, notwithstanding the fact that Crown grantees
are likely to resent any interference with what they consider to be their
private rights on privately owned land.
I pointed out in an earlier part of this report that about 40 per cent,
of the total cut comes from Crown-granted lands. From this timber the
Crown receives little direct revenue in the form of royalty. The great
bulk of logs exported in an unmanufactured form come from these lands.
There comes a time when the public welfare must take precedence over
private rights. To permit the owners of Crown-granted lands to log them
off and leave them without taking any steps to secure the growth of a new
crop is to jeopardize seriously the future development of our logging industry. This, in turn, will lead to unemployment and to the decline of communities to ghost towns.
Regulation of logging methods does not penalize the operator whose
system of cutting leaves the land with sufficient seed sources to ensure
regeneration, but is directed against those operators whose practices are
contrary to the economic and social welfare of the Province. We can not
afford to have the best of our forest lands, now producing 40 per cent, of
our timber, lying fallow in the future. It is suitable for growing timber
and nothing else, therefore it must be kept productive of timber. The fact
that such land is privately owned is a mere incident when weighed in the
larger scale of public interest and welfare.
The State of Oregon has recognized the paramount public interest in
seeing to it that privately owned lands are so logged that regeneration is
reasonably certain. It seems to me we must also adopt this policy and
I recommend that Crown grantees have the same obligations imposed upon
them in that regard and to the same extent as I have suggested be borne by
other forms of tenures.
Owners of Crown-granted lands are in a very favoured position in
many respects and I see no valid reason why they should cavil at the imposition of simple silvicultural regulations when so much depends upon the
continuity of our timber-supply.
Owners of Crown-granted lands whose only interest therein is to
liquidate the timber thereon on a " cut out and get out" policy, in most
instances, permit the logged-off land to revert to the Crown for nonpayment of taxes. Whether the private owner intends the land to revert
to the Crown through this channel or whether he intends to retain its
ownership should not affect his obligation to so log it that it will continue
to produce a forest crop. FOREST INQUIRY. Q 143
PLANTING OF DENUDED AREAS.
The third step toward a sustained-yield production objective is to start
new forests growing on our denuded land areas. On the Coast approximately 1 million acres and in the Interior 19 million acres of productive
forest land are not satisfactorily restocking. I do not consider there is any
great present urgency to replant denuded areas in the Interior. Interior
increment is exceeding depletion and, assuming augmented fire-protection,
the situation is not as critical there as on the Coast.
To support a sustained-yield plan in the future approximately 10
million acres of forest land on the Coast should be producing 400 to 500
feet per acre per year. I am satisfied in time we can reach that objective
providing cut-over lands are left productive and the areas now denuded
are replanted. From the evidence, however, it appears that, of the approximately 1 million acres on the Coast that are not satisfactorily restocking,
only about 400,000 acres thereof can be economically replanted. It is of
the utmost importance that this acreage be planted at the earliest possible
date—certainly within twenty-five years.
Some parts of these logged-off and denuded lands are Crown granted
and remain in private ownership, but to what extent I am unable to say.
The first step toward bringing these privately owned, denuded lands
into productivity should be a survey to determine what proportion thereof
are best suited for the growing of forest crops. These lands, when so
selected by survey, would be classified as " forest lands." The owner
of denuded " forest lands " should not be permitted to allow his productive
acreage to remain unproductive. In my opinion he should be directed to
replant his land within such time and upon such conditions as may be considered reasonable by the Service. Upon his failure to comply with the
terms imposed, the Crown should be empowered to expropriate these lands
at a nominal cost for replanting.
NEW SYSTEMS OF TENURE.
Under our present system of temporary alienations of timber lands
that revert to the Crown when logged, operators who cut these lands to
secure raw material for their own conversion units are offered no encouragement to treat these lands as permanent tree-farms producing continuous crops. They are, therefore, of necessity forced to move from one
area to another to maintain production—" cutting out and getting out."
Responsible operators with large investments in sawmills and pulp and
paper plants realize that this process can not keep on indefinitely. They
feel that the time has come when, in order to be assured of a continuous
supply of raw material for their plants, a new industry must be created—
the use of the productive capacity of the land for the growing of forest
crops.
The first step toward this objective would be a form of tenure permitting the operator to retain possession in perpetuity of the land now held
under temporary forms of alienation, upon condition that he maintain these
lands continuously productive and regulate the cut therefrom on a
sustained-yield basis. Q 144 BRITISH COLUMBIA.
I think I can safely say, upon the evidence before me, no operator has
a sufficient supply of timber in reserve to permit him to maintain an economic production of lumber from those areas under his control if he were
compelled to cut on a sustained-yield basis either now or in the second-
crop rotation.
To reduce production in the conversion units to the raw material available on a sustained-yield basis from their present holdings would simply
mean that fixed milling costs per M. could not be met. Then, too, even if
the logged-off lands are retained by these operators and present lumber
production continued from merchantable stands at the present rate their
mature timber will be cut out in periods ranging from five to fifty years,
depending upon the extent of their present reserve holdings, and the mills
would then have to cease operations until the new crop reached maturity.
It seems to me the only practical solution to this problem lies in the
allocation of Crown timber.
It is undoubtedly in the public interest to maintain our forests on a
sustained-yield basis to secure permanency of our forest industries.
Forest industries can be stabilized only if there is a continuity of
supply of raw material for those industries. There can be a continuity of
supply only if, on the second rotation, the cut does not exceed increment,
and the cut must be sufficiently large to ensure production at a rate adequate to maintain a profitable operation. Privately owned timber reserves
are inadequate to maintain this programme. Therefore Crown timber
must be utilized for this purpose.
The allocation or reserve of Crown timber for units of industry would
serve two purposes: First, it would enable the operator to maintain production from the cut of mature Crown timber during the period necessary
to restock his own land; secondly, the combined area of the private and
Crown acreage should, on the second rotation, produce enough timber on
a sustained-yield basis to maintain production of the unit in perpetuity—
perhaps not at the peak of capacity, but sufficient to ensure a profitable
operation with consequent benefit to those communities dependent upon the
permanence of the industry.
The reserve of Crown timber contiguous to, or advantageously located
near, privately held lands would present little difficulty. The owner of the
private timber lands would acquire these Crown tracts as and when needed
at the then prevailing stumpage rates. His logging methods would, as a
necessary concomitant, be subject to regulation and on the second rotation
he would be limited in his cut to the sustained-yield production of the
combined areas.
Some measure of control of the rate of the cut of the mature timber
on the private and Crown acreage included in an arrangement of this sort
might also be necessary, if circumstances so dictate, to prevent a too-rapid
depletion of such timber before the second crop is ready for its harvesting.
If insufficient areas were available to maintain economic production
from his conversion unit on the second rotation on the basis outlined, he
would then be free to augment his supply of raw material from the open
log market or from other private owners of timber who would be willing FOREST INQUIRY. Q 145
to merge their resources with his on a planned management basis during
the mature cut and thereafter on a perpetual tenure subject to continuous
sustained-yield production.
Inland Coast mills and Interior mills, not having access to the open
log market, would simply have to adjust their operations to the available
supply and, no doubt, difficult decisions will have to be made by the Forest
Administration in those areas in cases when two or more mills are so
situate that their own and available Crown timber is sufficient for the
permanent operation of only one of them.
For the class of operator with a tide-water mill who has timber of his
own that is not, however, situated near a Crown forest the problem can be
met in much the same way by the reserve of Crown timber to ensure the
permanence of his operation upon the conditions mentioned above.
That leaves for consideration the position of the mill-owner without
any timber of his own and the owner of timber without a mill of his own.
I will consider these two categories when dealing with the creation of
regional working-circles.
Taxation of New Forest Tenures.
The practice of private forestry is not without hazard, but operators
with costly conversion plants are willing to embark upon this venture in
the belief that the ultimate benefits to be gained by a permanent supply
of raw material are worth the risks involved.
Obstacles to the practice of private forestry are, in the main, the
uncertainties of future markets, fire risk, and burdensome taxation. Just
what future markets there may be for our second-growth crops depends
upon a multiplicity of circumstances and I do not feel qualified to make
any prediction on that score. The necessity of greatly increased fire-
protection is a subject upon which I have recorded my views. Burdensome taxation is, however, a matter that can be alleviated. It seems to
me therefore, if private forestry is to be encouraged, as I consider it should
to a degree reasonably commensurate with the retention by the Crown of
control of the greater part of our productive forest land (but not to any
greater degree), then owners of revertible tenures should be permitted
to retain these lands, when classified as best suited for the purpose of
tree-farming, at a nominal annual licence fee of 1 cent per acre, plus the
fire-proteetion tax, and subject to a yield tax at 121/4 per cent, of prevailing
stumpage values payable when the final crop, or any interim cutting
thereof, is harvested.
In this respect I consider the Oregon Reforestation Act a sound precedent to follow, except that in my view the Oregon annual land fee of 5 cents
per acre is too high a figure to be assessed in the light of planting and
management costs.
In my opinion, with deference, the complicated system of taxation
recommended by some of the witnesses before me, while no doubt sound in
theory, would, in practice, tend to discourage rather than encourage large
and long-time investments in tree-farms. The essential aim of any tax
structure should be simplicity in methods of assessment and collection. Q 146 BRITISH COLUMBIA.
Until such time as the mature timber is logged off the lands included
within present tenures I do not recommend any change in the form thereof
nor any revision of prevailing carrying charges payable to the Crown
thereon except in so far as may be necessary to regulate logging methods
to ensure adequate future restocking of these lands.
The forests of the Province are not merely of local concern. They are
and should continue to be of great value to the national economy of Canada.
I respectfully suggest that the Dominion Government, in formulating taxation policies should not lose sight of this fact. The practice of private
forestry is an important step toward the perpetuation of our forests. In
my view therefore the Dominion Government should be prepared to facilitate this development by allowing the operator to charge annually current
operations with all reasonable costs incurred during that year in the
reforestation of logged-off lands under his control or management.
WORKING-CIRCLES.
A sustained-yield programme of forest management has, as I have
before stated, several objectives. One is the perpetuation of the forest
resource for the support of industry with the consequent development and
stability of regional communities dependent upon permanent pay-rolls.
The other aspect includes the multiple forest uses of which I have made
repeated mention.
One of the steps in the organization of such a programme is the creation of sustained-yield units—the so-called working-circles. These units
would apply to all land classified, after survey, as best suited for the
production of forest crops.
Having ascertained this fact units may be created to conform to geographical, topographical, or other boundaries. They may be large or small,
even ranging from farmers' wood-lots to valleys or vast drainage-basins,
and may include all forms of tenures and timber in Crown ownership.
The next step would be to ascertain which of these units should be
managed as private or as public working-circles.
Private working-circles would be those areas from which the timber
privately owned and in Crown ownership would be utilized, under the
conditions I mentioned previously, to supply the needs of some one or more
particular conversion units in perpetuity.
Should there be in the area of the private working-circle, designated
and reserved for this purpose, owners of mature timber who did not desire
to participate in this endeavour when required so to do, then, in that event,
I suggest the Crown be empowered to expropriate these holdings at a fair
stumpage valuation. The money for this purpose could be raised by the
issuance of Government bonds to be retired from the proceeds of this same
stumpage when sold by the Crown to the operator of the working-circle.
Unless this plan, or some modification thereof, be adopted a few recalcitrant owners might jeopardize the successful management and operation
of any private working-circle.
A private working-circle need not be necessarily confined within the
boundaries of one area. I see no reason why, for instance, large tidewater conversion plants should not be permitted to enter into an arrange- FOREST INQUIRY. Q 147
ment with the Crown whereby a continuity of supply would be secured on
a sustained-yield basis from several distinct areas, provided the over-all
cutting plan was properly integrated.
Public working-circles would likely fall into several classifications.
The first would be areas from which Crown timber would be sold in accordance with sustained-yield principles and the production from which would
be allocated to the open log market or to small millers with little or no
timber of their own but whose manufacturing plants are of economic
benefit to the inhabitants of local communities.
Another form of public working-circle might result from the merger
of the holdings of private owners with no conversion plants of their own
but who desire to practise sustained-yield forestry. Log production in
this instance should flow to the open log market.
Areas of reverted land situated in or near settled communities could
also be managed on a sustained-yield basis as public working-circles by
municipal authorities, subject to regulations designed to prevent improvident future management and transactions in relation thereto. These community forests, apart from the timber production therefrom, have proven
to be of considerable value in the United States as a means of acquainting
the public with the benefits to be secured from the practice of sustained-
yield forestry, the necessity for fire-protection, and related subjects.
Working-circles created for the perpetuation of the forest-cover for
purposes other than production of timber fall into a special category.
I refer for instance to watershed protection and other multiple forest uses.
A tree is a plant and to secure an economic return from the soil producing
its growth the tree must be harvested. At the same time it must be kept in
mind that a tree may be of more real value in place in the forest than when
converted into lumber. The difficulty lies in striking a balance between
these two values.
On a working-circle designed to produce wood for conversion into
usable products a balance between cut and increment is the determinant
factor. Such, however, should not be, for instance, the test for logging
a watershed upon the run-off from which irrigation or other water systems
are dependent for their water-supply. Logging of working-circles of this
character, especially in the Interior, calls for special study and the application of logging methods best suited to the maintenance of the area for its
paramount economic use and value.
As a matter of fact, the creation of working-circles in the Interior for
continuous wood-supply also presents special problems, due to the limitations imposed by the necessity of transporting logs by road from the woods
to the conversion plants and the absence of any open log market.
While it is true that over-all increment in the Interior exceeds depletion, nevertheless areas near settled communities are being overcut.
I refer, for instance, to the area contributory to Cranbrook.
The Interior Lumber Manufacturers Association has recommended
for the Interior that " all existing operations should be brought under
licence and no new operation should be licensed until the availability of Q 148 BRITISH COLUMBIA.
timber in the area affected, sufficient to guarantee the maintenance of that
operation on a sustained-yield basis in perpetuity, has been determined."
In my opinion this recommendation should be implemented. It is a
much better policy to plan and manage any Interior working-circle so that
one mill 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 five mills with the result that none of them has a sufficient supply to
ensure an economic production, thus leading to the ultimate disappearance
of them all.
Ghost towns in the Interior bear distressing and silent witness to the
past policy of too many mills cutting out areas that could have supported
in perpetuity, on a system of planned management, the potential capacity
of probably half of them.
In order to broaden the areas contributory to mills supporting permanent Interior settlements the Crown should build roads to timber stands
now inaccessible. The direct and indirect benefits received in return by the
Crown should amply repay the expenditures necessary for this purpose.
Building roads to open up timber areas essential to the maintenance of a
permanent forest industry is of more importance, to my way of thinking,
than constructing roads to mining areas. Minerals once extracted from
the ground can not be replaced. The forest crop under proper management
is a perpetual source of revenue.
The work preparatory to the creation of Coast and Interior working-
circles will take considerable time and effort and necessitate the employment of many more trained foresters than are presently in the Service.
If a start is made now and region by region throughout the Province organized on the basis I have charted in broad outline, by 1955 (at which time
I suggest a Royal Commission be appointed to survey the then situation)
we should be well on our way to a planned system of forest management.
I cannot subscribe, with respect, to the suggestion that the entire
Coast be treated as one working-circle and that the over-all cut be kept
within the sustained-yield capacity of the productive Coast area. This
theory overlooks one basic objective of a sustained-yield programme: the
permanent support of local communities. If, on the second rotation, the
cut from each individual Coast working-circle is kept within the yearly
or periodic increment of that production unit then the whole Coast will be
on a sustained-yield basis. If, on the other hand, individual working-
circles are overcut the Coast will not be on a sustained-yield basis notwithstanding the fact that the over-all Coast production remains within the
total Coast increment.
To permit any working-circle to be cut on a liquidation basis would
perpetuate to that extent the present system of forest exploitation. Economic and social dislocations in local settlements would inevitably result
from such a policy.
Our future cut must come from the interest the forest produces, represented by the increment on an unimpaired forest capital in the form of
perpetually producing stock. FOREST INQUIRY. Q 149
At the risk of tiresome repetition, I would repeat here that my concept of a proper system of sustained yield is " a perpetual yield of wood of
commercially usable quantity from regional areas in yearly or periodic
quantities of equal or increasing volume."
FUTURE FOREST ADMINISTRATION.
One of the subjects leading to considerable discussion during the
inquiry was what form the future forest administration should take; that
is to say, whether the present system of administration should continue,
or whether the task of organizing, planning, and carrying out the new concept of sustained-yield forest management should be vested in a Forest
Commission.
The evidence indicates that industry is strongly in favour of administration by a Commission.
There was, however, a considerable divergence of opinion as to the
future form of this Commission, its personnel, and the manner in which
it should function.
It is my opinion that a Forest Commission should be created.
The chief reason compelling me to this conclusion is the long-range
planning required, without which it will be impossible to change over from
our present system of forest liquidation and depletion to one of sustained-
yield management.
We must, in dealing with this problem, project our perspective over
the long periods it takes to grow and harvest forest crops. We are called
upon to plan, not for to-day nor for to-morrow, but for generations ahead.
These plans will not come to fruition until those of us who have had
a small part in their early designing have long since passed on our way.
This kind of planning has as its concomitant, long-range financing.
The present system of annual appropriations from the general revenue,
for which the Forest Service must compete with other spending departments of Government, is subject to vagaries in general business activity,
the exigencies of short-term financing, and the uncertainty of money supply
due to temporal variations in governmental receipts available for departmental allocation. These factors, coupled with recurrent periods of transitory demands for increased expenditures in social and economic fields,
unrelated to forestry, have in the past and will in the future, under the
present system, retard if not frustrate any long-term policy of forest
management.
As an illustration of how the Forest Service has suffered from this
policy of departmental competition for available funds I might mention
that in the fiscal years 1933-34 and 1934-35 the Crown did not contribute
a cent to the Fire Protection Fund, although forest revenues during those
same years totalled over $4,000,000. In the language of one witness,
" Forest policy is put in bondage to the system of Treasury control."
By reason of the constitutional limitations imposed upon this Province all public moneys from whatever source of revenue derived must be Q 150 BRITISH COLUMBIA.
paid into the Consolidated Revenue Fund to be appropriated for the public
service of the Province as the Legislature may direct.
The only way in which direct Treasury control over departmental
appropriations may be avoided is to place the Forest Service under a Commission empowered to collect all direct forest revenue and to expend all
or that part thereof as may be necessary to finance adequately its operation.
Then, too, administrative Commissions have been created not only to
ensure a more convenient method of handling public finance, which in many
instances is a mere incident in the exercise of their powers, but also as a
device designed to carry out administrative functions of Government in
highly specialized and technical fields of endeavour.
Workmen's Compensation Boards, Health Insurance Commissions,
Public Utility Commissions, Liquor Commissions, Unemployment Insurance Commissions, and a host of others are instances of this practice, and
all perform a valuable public service.
A Forest Commission would thus have two main purposes: First,
to formulate and administer a long-term system of planned forest management and forest industry regulation where essential thereto. Second, to
supply the machinery for long-range financing divorced from the system
of annual departmental appropriation from general revenue.
The Commission would be charged, therefore, with a very heavy
responsibility. It should, in consequence, be vested with jurisdiction wide
enough to permit the proper discharge of that responsibility.
Statutes creating Commissions usually fall within one of two classifications: Those in which the powers conferred upon Commissions are
defined in minute detail and hedged about with confining restrictions, and
those in which a broad governmental policy is delineated and the Commission given wide and exclusive powers to effectuate that policy.
Future forest planning and management, with its concomitant forest
industry regulation, will be a complex business calling for the solution of
a multiplicity of problems arising from an infinite variety of circumstance.
I therefore recommend that the Commission be not imprisoned within
the iron framework of prescribed rules and regulations, but that within its
own sphere of activity it be given a free and powerful hand.
Objections have been voiced from time to time to what has been described as " an ever-increasing bureaucracy," but it must be recognized that
modern developments in the fields of economics and sociology have thrust
upon Governments duties and obligations that are difficult if not impossible
of fulfilment by the same departmental processes that were designed to
function in the horse and buggy era. Delegation of authority to Commissions in technological fields has been found an effective way of adapting
existing processes of government to the requirements of a modern civilization. Our forest problem, it seems to me, can not be met and solved
effectively except by this form of administration.
If the Forest Commission is to be vested with the responsibility
I recommend it should be, then its jurisdiction must extend over all aspects
of forestry within the Province, all extractive operations and conversion FOREST INQUIRY. Q 151
industries, and include as well those multiple forest uses that are an
essential part of forest management.
Without limiting the generality of the foregoing statement, I would
suggest that its functions include research designed to establish secondary
industries manufacturing wood products. This Province needs more secondary manufacturing industries if we are to maintain a stable level of
employment.
If my recommendation that the Forest Service be placed under a
Forest Commission be acceptable to the Government, then my previous
comments concerning the moneys that should be supplied to the Forest
Service for forest management and fire-protection must be read mutatis
mutandis.
Commission Finance.
All forms of direct forest revenue should be credited to the Commission, including (inter alia) grants from the Crown, Federal or Provincial,
to the Fire Protection Fund. Revenue from the sale of mature Crown
timber, representing the depletion of a capital asset, and yield tax from
the second rotation, representing the Crown's interest in forest increment,
would then be available for expenditures designed to replenish and perpetuate the forest capital.
The Commission should also be given jurisdiction to assess forest
industries and collect whatever taxative levies might be found necessary
to meet the financial requirements of the Commission should the direct
forest revenue prove inadequate and general Provincial revenue be not
available for that purpose.
Any surplus of revenue over expenditure, subject to the obligations
of long-range financing, should be paid into the general revenue of the
Province quinquennially.
Commission Personnel.
The Commission should, in my opinion, consist of not more than five
and not less than three members, one of whom shall be Chairman or Chief
Commissioner. The Deputy Minister of Forests should be a member, but
not the Chairman of the Commission. He would be the liaison officer between the Commission and the Minister of Forests. I am of the firm view
that members of the Commission should not be appointed thereto as representatives of any branch of the forest industries. Their duties are bound
to compel them from time to time to make far-reaching decisions concerning matters in which private and public interests will be in conflict. They
must therefore be in a position to reach their conclusions free from any
self-interest and solely on the basis of merit.
It follows in consequence that, in selecting the members of the Commission the Government should seek to appoint those of proven ability, of
personal integrity, sound judgment, and with general business experience.
There are men of this calibre in many branches of the forest industries
and it must not be assumed that I am suggesting they should not be among Q 152 BRITISH COLUMBIA.
those selected. The point I wish to make clear is that if a man is appointed
to the Commission from any branch of the forest industries he should not
go on the Commission as representative of industry but as a citizen of
outstanding qualifications who can be trusted to discharge his duties in the
public interest. These same observations apply with equal force to the
appointment to the Commission of professional foresters.
I do not agree with the suggestion that the Commission be composed
solely of experts in the multifarious sciences relating to forestry or forest
economics. The Commission would be exercising a semi-judicial function
in many facets of its duties and could be guided to its conclusions by the
advice of experts specializing in the subject under review.
In the final analysis the Commission should be composed of reliable
men of sound common sense who can accept responsibility and make proper
decisions free from any trammelling influences—political or otherwise.
Their appointments should be for at least ten years at salaries commensurate with the responsibilities involved. Salaries should be high enough
to make membership on the Commission attractive to men of the required
standard of ability.
One of the alternatives suggested to the form of the Commission which
I have recommended was that a Forest Board be formed composed of
members of the Government, industry, labour, and the forestry professions
to act in an advisory capacity to the Government. In addition to this
advisory Forest Board there should be, it was suggested, a Forest Commission composed solely of salaried experts drawn from industry and the
forest professions and that it be responsible to and under the direction of
the Forest Board. This Forest Commission of experts would be charged
with the solution of the many practical problems arising out of the adoption of a sustained-yield forest policy to be formulated by the Advisory
Board.   Administration would remain with the Forest Service as at present.
Superficially considered this suggestion, which was given powerful
support by one branch of industry, presents an attractive enough picture,
but a closer analysis brings to the surface features which would, in my
opinion, render its adoption inimical to the public interest.
The first simple and inescapable fact to emerge is, of course, that such
a Forest Board composed of representatives of industry and others could
not, in the very nature of things, agree to advise the Government to initiate
policies which, although in the public interest, would adversely affect the
private interests of industry. That means the advice the Government
would get from such a group would not be disinterested. In other words,
an Advisory Board of this character would simply become the medium
through which to channel to the Government the advisory opinion of industry dictated by and serving the interests of industry.
In support of this view-point I reproduce hereunder an extract from
the evidence of the chief witness called to give evidence in relation to this
subject:—(1)
(1)   Pages 4736-4737. FOREST INQUIRY. Q 153
THE COMMISSIONER: Q.—. . . where you have private industry
represented on a Board such as that, no Board is going to present [to the
Government] a policy which is directly contrary to the wishes of those representations of industry.    That could happen?
A.—It could.    I think you have to go on that assumption.
The second fact to emerge from an analysis of this suggested set-up
is that the Forest Commission of experts is made subject to the control
of the Forest Board.    Now see what happens!    I quote again from the
same witness:—(1)
THE COMMISSIONER: Q.—Then suppose you had a difference of opinion between the experts [i.e., the Forestry Commission] and the Advisory
Board: Suppose the experts recommended one policy and the Board thought
it would not be in the interests of, say, the Pulp Industry; whose views
would govern?    Those of the experts or those of the Advisory Board?
A.—I would say the Board would have to govern.
Q.—Your Advisory Board would overrule the experts (the Forestry Commission) . So then in effect private industry is overruling the advice of the
experts?
A.—Yes.
The witness was frank and honest in his answers, and the only conclusion I can come to is that the adoption of the suggested form of administration would mean, in effect, that future forest planning and management would be dictated and controlled by industry, whereas if the public
interest, as well as private enterprise is going to be adequately protected
and preserved in the future this direction and control must be vested in
the kind of free and independent tribunal which I recommend be created.
A Council consisting of representatives of the various branches of
industry, extractive and manufacturing, could exercise a valuable function
in advising the Forest Commission of its views upon matters affecting
industry. This advice would be tendered and received with the recogniza-
tion that it was motivated by the self-interest of industry. That seems to
me to be a more legitimate process than any disingenuous attempt to set
up a medium through which industry would dictate Commission policy,
favourable to its own interests, under the imprimatur of an allegedly independent Advisory Board.
The Forest Service and the Commission.
Jurisdiction now vested in the Forest Service by section 5 of the
" Forest Act" should be transferred to and vested in the Forest Commission, and the personnel thereof should be under the direction and control
of the Commission, thus supplying the necessary machinery through which
the Commission would function.
It seems to me that, logically, the Water Branch and the Game Board
should be made responsible to the Commission. If that is not considered
desirable (opinion before me was divided on the subject) then certainly
there must be the closest integration between these allied and related services.   Both water and game are, in a sense, forest by-products and must
(1)   Pages 4736-4737. Q 154 BRITISH COLUMBIA.
be administered in harmony with the over-all forest management vested
in the Commission.
Appeals from the Commission.
The decisions of the Commission will involve the determination of
questions of fact, or of mixed fact and law, or law alone. In so far as
questions of fact, or mixed fact and law, are concerned, I consider the
findings of the Commission should be absolute and final.
It has been suggested that appeals on questions of fact should be permitted from the Commission to either the Lieutenant-Governor in Council,
a special appeal tribunal created for this purpose, or to the Courts. None
of these recommendations appears to me to be sound in principle. In the
first place to authorize appeals on fact to the Lieutenant-Governor in
Council would mean, in effect, that the Cabinet would have to shoulder
the ultimate responsibility for forest planning, management, and finance
for the reason that almost every decision by the Commission would be but
a step toward the solution of the many related problems that will arise out
of the transition from our present unplanned system of forestry to one of
sustained-yield production.
There must be a close correlation of all interrelated phases of future
forest planning, management, and finance. Thus any piecemeal interference with an over-all plan might seriously affect the whole structure, especially if the compulsion of immediate expediency might be permitted to
outweigh the benefits of a long-range policy. Then too, with deference,
I do not think that the Lieutenant-Governor in Council would be as qualified as the members of the Commission will become, with experience, to
reach decisions on complex forest problems. One of the impelling reasons
for the creation of the Commission is to provide the machinery for long-
range forest planning by an independent group of men who will become
specialists in that field. If their plans relating to management and finance
are to be overridden by the Cabinet one of the basic reasons for their
existence disappears.
The forest industries recommended the creation of a special appeal
tribunal, and while this so-called Forest Appeal Board was to be formed
to hear appeals from the decision of the Deputy Minister of Forests, I presume, if a Commission is to be formed, industry would still recommend the
same scheme of appeal from decisions of the Commission.
The personnel of this suggested Appeal Board was to consist of a Judge
as Chairman and four other members—i.e., the Chairman of the Standing
Committee of the Legislature on Forestry, two members representing the
forest industries, and one the " general public."
For some years the Chairman of the Standing Committee of the Legislature on Forestry has been a lumberman and selected because of his intimate knowledge of forest problems.
It is a reasonable assumption, I think, that future appointments will
likely follow the same precedent. In consequence, on an Appeal Board
of five members industry would have three members representing their FOREST INQUIRY. Q 155
interests. The addition of the Judge and the member of " the general
public " seems to me, with respect, to be for the purpose of " window-
dressing."
I cannot recommend the formation of such an appeal tribunal. The
very structure of it would tend to create the impression that its decisions
would not be altogether free from bias. Secondly, the comments I made
in relation to appeals to the Lieutenant-Governor in Council apply with
equal if not greater force to this particular forum.
Turning then to the suggestion that a right of appeal be authorized
to the Courts from decisions on fact by the Forest Commission I may say
that, in my opinion, several reasons render this form of proceeding objectionable. First, while, unquestionably, any member of the Judiciary would
bring to bear upon disputed questions of fact a free and an unprejudiced
judgment, nevertheless, with deference to my judicial brethren, I can not
agree that a Judge's opinion should be preferred, in matters of this nature,
to the considered conclusion of a group of men of long and continuous
experience in this particular field and whose determination of any one
question of fact is but a step in the progressive development of a long-
range and complex plan.
Then, too, if a legalistic system of appeals is to be adopted it must be
adopted in toto. That means that any finding of a Judge sitting on an
appeal from a decision of the Forest Commission must also be subject to
review by higher Courts. That would result in appeals to the Court over
which I have the honour of presiding, and thence to the Supreme Court of
Canada, and in cases involving large sums of money—as many of them
undoubtedly will—to the Privy Council in London.
If this sort of procedure is permitted then, in my view, the work of
the Forest Commission could be retarded for years—if not entirely frustrated.   Further comment is, I think, unnecessary.
So far I have confined myself to appeals on questions of fact. I would
apply the same reasoning to appeals on questions of mixed fact and law.
That leaves for consideration appeals on questions of law alone. In
my opinion, provision should be made to permit appeals from the Commission to the Courts upon a case stated by the Commission. It should be
made obligatory for the Commission to state a case for the opinion of the
Court upon the request of any person whose interests are adversely affected
by any decision in point of law by the Commission.
EDUCATION.
The development of forest management policies in this Province will
require the services of many more trained professional foresters than are
presently available to supply the future requirements of the Forest Service
and industry. It is therefore of manifest importance that the University
of British Columbia should be able to graduate a sufficient number of foresters each year to meet the anticipated demand.
The present situation in that regard is described by Professor John E.
Liersch, head of the Forestry Department of the University, as follows:— Q 156 BRITISH COLUMBIA.
Q.—In your opinion are the facilities for training, in forestry, sufficient
in this Province?
A.—No.    In my opinion they are not;  they are very inadequate.
Q.—What improvement would you recommend?
A.—I would recommend a very much extended staff at the University.
At present the way the staff is constituted, there are two full-time men there
trying to handle fifty-five students through five years of college, and teaching
possibly half a dozen different subjects apiece, which is more than can be
expected of any man—to do a just and adequate job and produce the properly
trained men with the proper background in forestry to promote our industry
in our Province here in British Columbia. They are required to do far too
much routine work, with the result that the time for research and original
investigation in our forestry problems is practically nil.
Q.—And do you think a Department of Forestry is sufficient or should
be raised to the	
A.—It should be raised to the status of a Faculty.
Upon consideration of the evidence of Professor Liersch and that of
other witnesses who testified upon this subject I recommend:—
(a.) That the Department of Forestry be raised to the status of a
Faculty.
(b.) That the teaching staff be increased to the extent required for
adequate student instruction.
(c.) That as soon as practicable, and when student enrolment justifies
the expenditure, a building be erected and properly equipped for
this branch of teaching.
(d.) That the University curricula provide more intensive training in
forestry subjects during the first four years, instead of postponing the study of forest sciences until the fifth year as at present.
(e.) That greater use of the Pitt Lake Forest for practical field
instruction be encouraged by the erection of suitable buildings
and other facilities. Money should also be made available for
more intensive silvicultural practices and research in this Forest.
(/.) That consideration be given to the suggestions emanating from
the Forestry Club of the University, reading as follows:—
" That it be a requirement of the Faculty that all students must put
in at least two summers in forestry work of some sort, such as forest
surveying, logging, milling, etc., before being granted a degree of
Bachelor of the Science of Forestry, providing economic conditions
do not render this impossible."
And
" That one undergraduate Degree in Forestry be granted—namely,
Bachelor of the Science of Forestry—and that opportunity for postgraduate work leading to the Degrees of Master of the Science of
Forestry and Doctor of Philosophy be set up."
Our forests are of such importance to the economic life of this Province it is essential that the public generally be acquainted with their growth,
uses, and perpetuation. The school children of to-day will become the
future custodians of this great resource. It seems to me, therefore, that
our young people should receive instruction in matters pertaining to the
economic and social values thereof. FOREST INQUIRY. Q 157
At the present time there is very little prescribed study of forestry
subjects in the elementary school programme up to Grade VII. What is
taught is largely left to the discretion of the individual school teacher who
may or may not be " forestry minded." I suggest that courses of study in
forestry and its related subjects be formulated and made compulsory in the
elementary grades.
The teaching programme for junior and senior high school students
does include " units " dealing with our forest resources. In these higher
grades, it seems to me, the matter is dealt with in a comprehensive and
satisfactory manner.
General public instruction is also an essential requirement in order to
create public opinion favourable to the practice of sustained-yield forestry
involving, as it will, the expenditure of direct forest revenue upon the perpetuation of our forests to a far greater extent than at present—at least
during the transition stage. The public must also learn through suitable
media the imperative necessity of keeping our growing stock protected
from fire.
RESEARCH.
One of the difficulties I have experienced in reaching conclusions from
which recommendations would follow is that no single solution of common
forest problems can be compressed into an all-embracing formula. Problems arising in different areas may have a number of factors in common
and superficially would appear subject to the same solution, but circumstances differ so widely from area to area that each problem in each area
must call for the application of a technique special to that area.
A general over-all scheme or policy may, however, be formulated outlining the external boundaries of that policy within the framework of
which, and subject to the purpose of its design, solutions of specific problems may be found from time to time as they arise. I have endeavoured
to chart the broad outlines of that policy.
That brings me to another difficulty: A forest policy should be erected
upon a solid foundation of factual knowledge. Many questions yet call for
an answer, and to-day the information we have concerning basic forest
problems is far from complete. In truth, in relation to many subjects the
evidence disclosed that the necessary data thereon are unavailable.
A glance at the table of expenditure by the Forest Service discloses
that the ten-year outlay on research has averaged 0.94 per cent, of total
forest expenditures during that period—which probably explains the
absence of this factual information so essential to the formulation of even
a broad policy.
In many of the matters under review I have had to rely upon testimony which, to a degree, was based on speculation, conjecture, or just plain
guessing. Because of this I have recommended a Royal Commission review
the whole subject ten years from now.
In the meantime I can not stress too strongly the necessity of a vigorous programme of research to be undertaken by the Forest Service, either Q 158 BRITISH COLUMBIA.
alone or in conjunction with the Dominion Government and industry.
There is much to be learned concerning regeneration, and the logging
methods best suited to ensure it, rates of growth or yield on different sites,
the effects of intensive silvicultural methods, fire-protection — including
slash-burning — utilization, and a host of other related and unrelated
subjects.
Although ten years is a very short space of time in forest chronology,
nevertheless, with a programme of research adequately financed and with a
ten-year dead-line to which to work, I am sure much more information than
we now have will be available to guide the conclusions of the Royal Commission sitting in 1955.
District Foresters should be encouraged to engage in research and
experimental projects within their own districts.
Forest pathology and the control of insect pests are matters that
demand more intensive studies than are at present being conducted.
Depletion from these causes—more particularly insect pests—must be considerably reduced by appropriate measures. A closer co-operation between
the Forest Service and the officials of the Dominion Government engaged
in this work is desirable.
Losses due to insect pests, even in the endemic stage, are serious
enough to call for immediate and concerted action, but a graver danger
exists in the threat of a widespread and irremediable devastation from
insect epidemics that hangs over our mature forests like a sword of Damocles. We are wholly unprepared to combat this ever-present menace should
an unfortunate occasion call upon us so to do.
Many valuable studies relating to regeneration, growth rates, and such
like have been made by professional foresters in the employ of private
industry. These were made available to me, but the areas covered were
relatively small in size, and I can draw no significant or general conclusions
of Provincial-wide application therefrom. Those industrialists who are
carrying on this work are to be highly commended, however, for their
efforts in this field.
I have no hesitation in saying that the Forest Service should co-operate in every reasonable way possible with industry in the conduct of these
studies.
The results of the Ladysmith experiment indicate how effective this
co-operation can be in securing valuable data.
The regulation of the cut—especially during the harvesting of the
second rotation crop—depends upon a thorough knowledge of forest increment on sites of various yield quality. That information will not be obtainable except through experimentation and research over a considerable
period of time. Much theoretical information has been collected in yield
tables prepared by the Forest Service, but what is required is an empirical
compilation covering areas in which working-circles eventually will be
established. That work should be undertaken as soon as a trained staff
is available for that purpose. FOREST INQUIRY. Q 159
THE FOREST-COVER AND WATER RUN-OFF.
I turn now to consider another subject upon which I have been asked
to report.
Items 8 and 9 of the Commission direct my attention to:—
" The relationship of the forest-cover to soil conservation."
And
" The maintenance of an adequate forest-cover with a view to the regulation of moisture run-off and the maintenance of the levels of lakes and
streams."
I understand " soil conservation " in Item 8 to refer to the prevention
of soil erosion.    The two headings may therefore be dealt with as one.
The evidence before me leads to no other conclusion than that the
removal of the up-stream forest-cover has a definite effect upon water
run-off. I do not have sufficient data upon which to make any finding
upon whether the removal of the forest-cover increases or decreases the
annual watershed yields. I have read many scientific treatises upon the
subject and the general trend of professional opinion seems to indicate,
however, that mainly because of the tremendous volume of water drawn
from the soil and returned to the atmosphere through transpiration/1'
and by the interception by the trees of rain and snow, thus permitting
moisture to evaporate before reaching the ground, the existence of forest-
cover decreases the total watershed yield. This conclusion is, I think,
acceptable in a general sense, but it seems to me that so many factors
enter into the picture influencing total water yield—e.g., the slope of the
watershed, topography, density of the forest and vegetation cover, soil
conditions, and so on—that what might be true in localities in which
studies were conducted, it does not necessarily follow that the conclusions
reached therein have a universal validity. In this connection it must also
be borne in mind that forested areas receive more precipitation than
open country. However that may be, I am on safe ground in saying that,
except in exceptional circumstances, run-off distribution is materially
affected by removal of the forest-cover.
The effect of forest-cover—trees, vegetation, and humus—is to decrease
materially the rapidity with which water flows into its stream and river
drainage systems, thus ensuring a continuous and even supply. The removal
of the forest-cover leads to an accelerated run-off—the " flash run-off "
—with consequent soil deterioration and erosion, and, in the absence of
adequate storage facilities, means a plethora of water in the streams one
day followed by a scant supply thereafter until the next rain.
Soil erosion results (inter alia) in the silting of reservoirs, irrigation
systems, and the pollution of water used in processing plants.
The problems of watershed protection and management are of vital
interest to many groups in the Interior. The Okanagan fruit and vegetable industry is dependent upon an abundant supply of water for its con-
(1)   Zon  (see ubi supra, p. 20) estimates that the amount of water consumed by a forest is nearly equal
to the total annual precipitation and in warm and dry regions somewhat greater. Q 160 BRITISH COLUMBIA.
tinued existence. The stockmen require an adequate water-supply for
their grazing ranges.
The Interior fruit and vegetable industry plays an important part in
the economic welfare of this Province. Fruit-trees in the Okanagan valley alone cover approximately 24,000 acres, while capital invested in the
tree-fruit industry is in excess of $20,000,000. Without water for its irrigation systems this industry would soon disappear.
The value and importance of the stock-raising industry in the Interior
is well known and needs no elaboration.
In addition to supplying the essential requirements of these two classes
of water-users, the streams, both on the Coast and in the Interior, are the
spawning-grounds for salmon and sport fish. The marketed value of
salmon processed in this Province averages about $15,000,000 a year.
The Chief Supervisor of Fisheries has, I think, summed up accurately
the position in this regard in the following excerpt from his evidence:—
" Salmon require the gravel-beds in the fresh-water streams for the
purpose of spawning. The adults reach the mouths of the streams, commencing the latter part of July and continue, according to species, through
to the end of the year, and at times into January. Some varieties, such as
the sockeye and springs, proceed as far as the upper water of even the
longest streams, such as the Nass, Skeena, and Fraser, hundreds of miles
from salt water.
" If conditions in the streams are right at the time of the arrival of the
salmon they pass up-stream and express their eggs in the gravel. This process extends over a period of from a few days to several weeks. The period
between the time the eggs are deposited in the gravel to the time they are
hatched as fry extends from sixty to one hundred and fifty days, depending
on the temperature of the water. After the fry are hatched, most varieties
proceed to sea in the following spring and summer. The sockeye, however,
usually remain in a fresh-water lake for a year before proceeding to salt
water, although this is not always so.
" Salmon return again usually to the stream in which they were hatched
in from two to seven years, the time varying with the several species.
For instance, the sockeye spend from three to four years at sea, springs
from three to seven years, cohoes three years, pinks two years, and the
chums four and five years.    All Pacific Coast salmon die after spawning.
" The removal of the timber and destruction of forest-floor along the
streams and around the shores of the lakes causes a quick run-off after each
rain instead of the water being absorbed and held to run off gradually, with
the result that:—
"(a.) As the salmon-eggs of the fall run species are normally deposited
in the gravel of the stream-beds during high-water conditions
the quick run-off leaves large quantities of them high, and dry,
resulting in their destruction.
"(b.) There is so little water left in the streams that those young salmon
which have been successfully hatched are stranded in holes or
shallow channels and become an easy prey to their numerous
enemies, such as gulls, ducks, and other forms of life, or later
perish if the water dries up.
"(e.) At the end of the summer when the adult salmon return for spawning purposes they are unable to ascend the streams through lack
of water, and either die unspawned in their attempt to reach the FOREST INQUIRY. Q 161
spawning-grounds, or express their eggs in brackish or salt water
where they are destroyed.
"(d.) There may be a trickle of water in the smaller streams which
permits the adult salmon to ascend part way up the streams but
the supply is so small as to allow eagles, ducks, gulls, and bears to
destroy literally all adult salmon. This is particularly evident in
some of the streams along the east coast of the Queen Charlotte
Islands."
The forest and water-yield are inseparably linked, thus the maintenance of the forest-cover must have as one objective the continued
prosperity and perpetuation of these three manifestly important wealth-
producing activities: fruit- and vegetable-farming, stock-raising, and
salmon-fisheries.
The maintenance of stream- and river-flow as a source of power
producing electric energy is also a vital necessity. The management of
watersheds upon which communities depend for their domestic water-
supply falls within the same category.
Each watershed presents its own peculiar and complex problems, but
there are three broad principles of watershed management that apply to
them all: they must be protected from fire, they must be restored, and
they must be improved.
I need not again refer to the necessity for adequate fire-protection.
Restoration of a watershed is indicated when logging or fire, or both,
have removed the forest-cover to an extent that floods and erosion follow.
This can be accomplished by tree planting. Seeding by a suitable grass-
cover may also be required.
Watershed improvement may call for silvicultural treatment, such as
thinning too dense stands, thus reducing forest water consumption by
transpiration and preventing premature evaporation. In some areas
which have ample water-storage facilities improvement may extend to the
removal of a great part of the non-commercial cover compatible with
erosion-control.
The practical application of these fundamentals will necessitate considerable research and experimentation in order to decide, for instance,
whether a particular watershed should have a greater or less density of
cover. Neither the Forest Service nor the Water Branch have in the past
conducted studies of this nature, either general in scope or of particular
areas.
The methods to be adopted to ensure a continuous water-supply for
any localized area must be determined by a close study of local conditions
by men equipped for this work by training and experience.
The control of logging methods and the allowable cut from watersheds
must also be governed by local conditions and a careful appraisal of
conflicting values.
Where, for instance, the water yield may be collected in reservoirs
and flood and erosion damage are not to be anticipated the cut may be as
heavy as a sustained-yield policy would permit.    If, on the other hand, Q 162 BRITISH COLUMBIA.
regulation of stream-flow is of more importance than total water yield
the cut must be light enough to maintain a fairly complete forest canopy.
In areas where by reason of topographical or other contributory causes
flood and erosion damage is a definite danger cutting should be kept at
a minimum.
All of these matters must, however, be decided according to the circumstances peculiar to the area under review.
The evidence given by witnesses in the Interior stressed the importance of maintaining beaver colonies as a means of water-control.
It seems to me this matter calls for serious consideration by the Forest
Service and the Game Board.
Interior trappers requested me to recommend that beaver-pelts be
tagged as a means of discouraging poachers and others from the indiscriminate and unlawful killing of beaver. I doubt if the scope of this
Inquiry extends that far, but, assuming it does, in my opinion the suggestion is a meritorious one.
PROBLEMS OF THE INTERIOR.
Problems of immediate concern to the people of the Interior of the
Province arise from two separate and yet related conditions. The first is
the necessity for continuity of supply of raw material for the needs of conversion units, upon the existence of which depends the prosperity of many
of the smaller Interior towns and settlements. The second condition is
the very close relationship between the forests and the main Interior primary sources of wealth, such as the tree-fruit and small-fruit industry,
vegetable-farming, stock-raising, power production, trapping, and so on.
Dealing then with the necessity of perpetuating the Interior forests,
I do not think I can add very much to what I have already written on that
subject. I may repeat here that the organization of Interior working-
circles should have as a primary object the continued existence of present
conversion plants.
Many witnesses expressed dissatisfaction with the present practice
whereby Crown timber is sold to the highest bidder. It was thought, and
with some justification, that an operator who had opened up a tract of
timber and had built an expensive road system into the area should not
have to face the possibility of another purchaser coming in and outbidding
him for Crown timber contiguous to his operation.
The new systems of tenure which I recommended whereby Crown
forests would be reserved, under the conditions stipulated, for the ultimate
use of any operator desiring to practise sustained-yield forestry, should
remove any further fears on this score.
If during the transition period Crown timber is sold for immediate
cutting I have no hesitation in recommending that the operator who has
pioneered the area and opened it up should, where practical, have the
reward for his effort in having allocated to him at a fair price Crown FOREST INQUIRY. Q 163
stumpage on those areas which are contiguous to or advantageously located
near his operation.
This same principle should also apply to the Coast where and when
circumstances so warrant.
RE 10-PER-CENT. DEPOSIT.
In the Interior the Forest Service has recently inserted in its timber-
sale contracts a stipulation that certain areas under such contracts be
selectively logged. Under this system the old and matured trees are cut
and the young and vigorous growth left standing to mature. (Because
of the small tree sizes skidding is done with horses—a practice not yet
possible on the Coast, except perhaps in a very few areas.) Approximately 45 per cent, of the trees are cut, yielding about 65 per cent, of the
total scale.   At some future date the balance of the area is logged.
Interior operators complain that they are forced to pay a 10-per-cent.
deposit based on a 100-per-cent. timber cruise, but as they only log 65 per
cent, of the cruise estimate they are thus compelled to freeze an unnecessary
amount of capital in the unlogged timber for long periods of time.
Ex facie this seems a valid complaint, and I draw it to the attention
of the Deputy Minister of Forests for his sympathetic consideration and
possible alleviation.
I turn now to the second consideration—i.e., the value of the forests
to the economic life of the Interior and the problems relevant thereto.
I have already dealt with one phase of that relationship—viz., watershed protection.    That, however, is not the whole story.
RE BOX-SHOOKS.
The Interior orchardists and growers of small fruits and vegetables
not only need water on their land, they need wooden containers in which
to pack their apples, small fruits, and vegetables for both the export and
domestic trade. At times this need is desperate and the crop endangered
by lack of suitable boxes and other containers in which to ship the product
to consumer markets.
Okanagan apple production alone amounts to about $8,000,000 a year,
requiring close to 7,000,000 boxes. Peaches account for another 1,000,000
boxes, and crates, display lugs, and such like containers run into many
hundreds of thousands.
Experience has demonstrated that yellow pine is the best box material
for packing tree-fruits. Boxes of yellow pine construction, for instance,
do not warp in the orchard heat, take nails without splitting, and bear the
weight of other boxes without distortion.
The undeniable fact is that yellow pine areas have been overcut, and
the species is rapidly disappearing. What is left is far from sufficient to
meet the future box requirements.
I must confess I have found this to be a most vexing problem and one
in which I have great difficulty in formulating a recommendation that
would be of much assistance. Q 164 BRITISH COLUMBIA.
The obvious need is to plant suitable areas with yellow pine seedlings,
but that is a long-range solution, and, while the growers of sixty or seventy
years hence will no doubt profit thereby, it will bring small comfort to the
orchardists of to-day who need a more immediate supply of boxes.
The only present and partial remedy I can suggest is that the remaining and available yellow pine stands in Crown ownership be sold on condition the log production of this species be allocated to the Interior manufacturers of box-shook. Whether this allocation should include all grades
is a matter upon which I leave to the Forestry Service for decision.
Yellow pine processed into lumber brings a higher price than when
converted into boxes, and it may be that some measure of price regulation
might be required with a concomitant system of subsidies which the Timber
Controller has found necessary to institute.
Failing a supply of yellow pine the Interior growers must of necessity
use other species, such as spruce and fir, and, while the Interior hemlock
is unsuitable for box-manufacture, Coast hemlock may be utilized to advantage for this purpose. I do not know whether it would be economically
practicable for Coast hemlock millers to ship hemlock sawmill-waste to
the Interior for conversion into box-shooks. I did not receive any evidence
on this question, but if at all feasible it seems to me it should be done.
Box-shooks manufactured from Coast hemlock are shipped to the
Interior when market conditions encourage this practice, but the box-shook
manufacturers in the Interior help to support local communities, and their
continued existence in this field is a matter calling for consideration.
One fact is basic to a solution of the problems facing the Interior
orchardists and farmers, and that is the necessity for correlating any
future plan of forest management to the needs of these producers arising
out of their dependence upon the products of the forest.
RANGE ENCROACHMENT AND OVERGRAZING.
The stockmen also have another problem in addition to their need for
water. Their other problem is the encroachment of the forest on their
grazing ranges. Stockmen have been agitating this matter for a number
of years, so far without any tangible results. Undoubtedly jack-pine, willow, and alder are steadily reducing available range land. This is due in
part to overgrazing, which exposes the mineral soil, thus creating conditions favourable to natural seeding of jack-pine. Alder and willow continue their struggle to cover range land by thrusting up new growth from
their root systems.
The attack on this problem of encroachment must therefore be on three
fronts: Overgrazing should not be permitted, the present non-commercial
cover should be removed, and badly depleted areas should be reseeded with
suitable grasses.
Overgrazing has resulted from lack of range reconnaissance, supervision, and inspection by the officials of the Forest Service. This was due
to lack of available personnel during war years, but I see no reason why
this situation should not be remedied in the near future now that men are,
or soon will be, available to undertake the work. FOREST INQUIRY. Q 165
Then, too, overgrazing has a more serious aspect than merely as a
cause contributing to forest encroachment. Overgrazing if continued will
render the range useless. Nutritional grasses, like trees in a forest, will
not perpetuate themselves if the seed sources are destroyed. Hence this
question of overgrazing presents a problem of immediate urgency calling
for the implementation of regulatory controls.
Seeding of badly depleted areas is necessary for two reasons: As an
aid in the prevention of forest encroachment, and, what is of more importance, to ensure a supply of palatable and nourishing forage.
In this connection I strongly recommend that an experimental range
station be established, either by the Provincial Government alone or in
collaboration with the Dominion Department of Agriculture. It is to be
greatly regretted that the Dominion Range Experiment Substation at
Tranquille was forced to discontinue its activities in 1940, at a time when
after five years of experimental work many major studies relative to range
problems were well under way.
Returning to the subject of encroachment, the third requisite is the
removal of the forest-cover that has succeeded in establishing itself on
former open grass land areas. At this point the subject becomes controversial. The question is to burn or not to burn. The answer to that
question must depend upon results achieved by experimental burning on
Crown or private lands under the supervision and control of the Forest
Service. Stockmen are only too willing—even anxious-—to give every
assistance to a project of this nature, and I am convinced that no difficulty
would be encountered in securing from these men whatever permission
might be required to enter upon their land and conduct experimental burning upon such terms as the Forest Service might consider it advisable to
impose in order to protect its officers from possible liability arising from
unforeseen contingencies.
DECADENT STANDS.
There are substantial stands of overmature hemlock in the Interior.
In the Kootenay River and Arrow Lakes drainage area, for instance,
208,200 acres of the forest-cover is mainly composed of this class of timber
estimated to contain 672,000 M.B.M. The productive capacity of this area
should be put to better use—perhaps the growing of white pine stands.
Probably less than 10 per cent, of this hemlock could be converted into
sawn lumber, but it is estimated that 90 per cent, thereof would be suitable
for pulp production. Shipments of overmature hemlock from this and
other Interior areas were made to a pulp and paper company in Spokane
during the period 1927 to 1939, and therefore a market appears available
when the export of logs is once more permitted by the Timber Controller.
It is my opinion that the Crown would be justified in waiving all
claims to royalty on overmature Interior hemlock stands in order to encourage their removal so that new growth of more valuable tree species could
come in. Q 166 BRITISH COLUMBIA.
It was suggested that any residual stands for which no commercial
use could be found should be burnt. Whether this would be a sound and
practical procedure I am not able to say, but certainly every effort should
be made in the Nelson, Revelstoke and Big Bend areas, where most of this
decadent hemlock is to be found, to encourage its early removal.
In the long run it would pay the Crown to sell decadent Interior hemlock stands remaining in Crown ownership at a nominal stumpage rate
without reservation of royalty, or, perhaps in areas in which white or
yellow pine would constitute the greater part of next crop, to subsidize
operators to clear cut those areas.
INTERIOR SCALING SYSTEM.
Logs are scaled on the Coast by an independent group of official scalers
who are employees of the Government and are members of the Civil Service,
although their salaries are paid from the Scaling Fund.
In the Interior scaling is done by scalers authorized by licence or
permit to carry on this work, and they are employed and paid by the operator whose logs they scale. In many instances the operator does his own
scaling as a licensed or permit scaler.
The purpose of scaling logs is twofold: First, to determine their volume content and grades in order to compute the amount of royalty, taxes,
and revenue payable thereon to the Crown. Secondly, to determine the
amount payable to the owner of the logs by the purchaser thereof.
In the Interior there is very little timber cut for sale. Millers log
their own tracts for their own use. In consequence scaling in the Interior
has as its primary and practically sole purpose the protection of the Crown
revenue. To leave the computations of the amount owing the Crown in
the control of the man who has to pay it, or his employees, does not seem
to me to be an efficient system unless effective safeguards are provided to
protect the Crown's financial interests.
The Deputy Minister of Forests when asked by me why the Coast
scaling system would not be feasible in the Interior stated that " there is
not a big enough volume of scaling in any one place to maintain the staff
at any price that the operator could pay."(1) The evidence of Interior
witnesses supports this view and I accept it as the real explanation of the
existence of the present Interior scaling system.
The Deputy Minister instanced several methods by which a check was
kept on the activities of the licensed scalers. These were a check scale by
the local Ranger, a field examination to determine what is going into the
mill, and check of rail shipments from the mill. With deference, I do not
consider these safeguards to be as effective as suggested by him.
In the first place the Ranger's so-called check-scale is only made about
twice a year in each mill within his district. The purpose of these visits
is to see if the scaling regulations are being carried out. In other words,
it is for most part a check on the system of scaling and can not test the
accuracy of any individual scale-sheet.
(1)   Transcript, p. 53. FOREST INQUIRY. Q 167
The field examinations, which would include a stump count, are not
carried on as a regular practice but are only done pursuant to a special
order of the Supervisor of Scalers for the Interior, or some other official
of the Forest Service, who may have cause to suspect that there is a shortage in the scale.
Railway shipment records are examined only in those special cases
where the facts would seem to warrant this procedure. The information
thus obtained seems of little value in the absence of accurate inventory
figures and records of domestic sales—none of which is examined by the
investigator.
The Supervisor of Scalers for the Interior recommended the adoption
of an additional procedure which he considered would be an efficient check
of the operator's scale. He is the man who is more familiar with all aspects
of Interior scaling than most officials of the Service, and ought to know
what is required. His recommendations — in which I concur — are as
follows:—
" The need for more supervision in the scaling in the Interior is apparent because the great number of mills and territory is more than is possible for one man to cover. We leave it entirely to the operator to make
returns and unless considerable time is spent in going over the operator's cut,
sales, and stocks it is impossible to say whether those returns are correct or
not. Then considerable research should be done to find out the average
overrun for each mill. A file should be kept in the Supervisor of Scalers'
office for each mill with all the details on the file, listing all the equipment in
the mill, number of employees, capacity at the time, possible capacity, exact
location, log stocks and lumber stocks on hand at the end of each year. The
board-feet of lumber cut and the total board-feet of lumber sold should also
be listed on the file for each mill for the year, but these last two items should
be recorded each month in order to have all that detail at the end of the
year. The whole idea is to have a close check on the operators and eliminate
any possible chance of improper returns by showing the operators we know
what their returns should be and not spend time proving they have made
improper returns.
" All this efficiency calls for a staff of check-sealers.
" I would recommend that the original copy of the daily scale be submitted to the Forest Branch district office.
" In the district office two people would receive these daily scales, compute them and enter the totals on a monthly return sheet. At the end of
the month this return would be turned over to the district office, with a note
attached bearing the amount of stumpage and royalty, so that the district
office staff could bill the operator with the charges.
" I would also recommend that a check-sealer work out of each district
office in order to check up on the scalers and see that the daily scale is
returned to the district office.
" The territory north of the Rocky Mountain Divide, such as the northeast part of the Province and the Peace River, would be classed as a district
and a check-sealer along with a computer be stationed in the same office
building along with the Ranger for that district.
" The check-sealer for the Interior portion of the Prince Rupert district
should look after the scaling in the Atlin district. This check-sealer along
with the computer could make their headquarters in Smithers.
" A Supervisor of Scalers, whose duty it would be to supervise the work
and hold scalers' examinations would be stationed in Kamloops." Q 168 BRITISH COLUMBIA.
In addition to the above recommendations of the Supervisor of Scalers,
I also think that some machinery should be set up whereby a vendor of
logs when dissatisfied with the scale thereof, could call for a rescale by an
independent scaler either licensed or in the Government Service.
INTERIOR ADMINISTRATION.
The Interior lumbermen consider that their problems are so dissimilar
to those of their Coast brethren that there ought to be a separate Forest
Act for the Interior, or, failing that, a form of Commission be established
to administer the Interior forest resource as a separate unit.
With respect, I cannot accept nor recommend either of these contentions. While it is true that the Coast and Interior forests present wide
differences at almost every point of comparison, yet they are both composed of growing trees and both are subject to the same basic principles
of forest management. It is in the application of those principles to the
two areas that the distinction between them really lies.
A Forestry Commission exercising a Provincial-wide jurisdiction and
with a personnel selected as I suggested it should be, would be capable of
grappling with and resolving the problems of the Interior just as well as
those peculiar to the Coast. In either case it would, of necessity, call for
the advice of experts with specialized knowledge of each area under review.
Interior Advisory Council.
The economic stability of the Interior, as I have indicated, depends
to a very marked degree upon the full recognition of multiple-forest uses.
It seems to me, therefore, that an Interior Advisory Council should be
formed composed of representatives of the logging and lumber interests,
water-users such as stockmen, farmers, and orchardists, and perhaps
trappers. Through an organization of this kind representatives of the
varying and sometimes conflicting interests would become familiar with
and sympathetic to the difficulties with which each is confronted, and out
of this common understanding recommendations formulated in a spirit
of mutual co-operation could be presented to the Forestry Commission for
its consideration.
MISCELLANEOUS SUBJECTS.
Under this heading I propose to deal with those subjects which did
not conveniently fall within any of the other topics previously discussed.
MARKET EXTENSION.
During the inquiry considerable evidence was adduced on this subject,
but when the terms of the Commission, which limit the matters into which
I am directed to inquire, are examined nothing can be found therein authorizing me to enter upon this field. The reason for not including the question of lumber trade extension activities within the terms of the Commission is probably due to the fact that this subject is not within the jurisdic- FOREST INQUIRY. Q 169
tion of the Minister of Lands and Forests, but is vested in his colleague
the Minister of Trade and Industry.
I think I should say, however, that the need for a continuing export
market for our lumber—and especially hemlock—is of vital importance
to the economic welfare of this Province, and that trade promotion activities ought, in the future, to be again undertaken and vigorously pursued.
SALMON-STREAMS.
The continued prosperity of the salmon industry is of manifest importance to the people of this Province and a subject which needs no elaboration herein.
The continuance of this industry depends upon, first—a sufficient
escapement of adult salmon; second—their ability to reach the spawning-
beds; third—the hatching of the spawn; fourth—an unimpeded journey
down-stream of the fry to the sea.
The question of escapement is not a matter within the scope of this
inquiry, but the effect of the forest-cover upon stream-flow is germane
thereto, and I have already expressed my views thereon.
That leaves for consideration the effect that logging methods have
upon the up-stream travel of the adult salmon, the gravel of the spawning-
beds, and the seaward journey of the young fry.
The evidence of the Chief Supervisor of Fisheries on these questions
is as follows:—
" The methods employed in logging operations often result in the tearing-
up of roots and lodging them, together with brush and logs, in the salmon-
streams, where they form a jam. This has the following results in so far
as the salmon are concerned:—
"(a.)   Often prevents the ascent of the adult salmon to their spawning-
grounds.
"(b.)   Flood-water is held back and the spawning-grounds are covered to
a depth which prevents the spawning of the salmon even if they do
succeed in passing through the jams.
" (c.)  The log and brush jams often cause the stream to change its channel, after the salmon-eggs have been deposited in the gravel, leaving large areas of gravel filled with salmon spawn high and dry.
These eggs are a total loss.
" In logging operations some operators drag the logs down the beds of
the streams as they sometimes find this practice more economical than building a railroad or truck-road, for instance.    The results of such operations
are:—
" (a.)   If spawning salmon are in the stream many of them are destroyed.
"(6.)  If the eggs have been expressed in the gravel by the salmon the
logs destroy large quantities of them.
"fc.)  The logs gouge out the beds of the streams, removing the gravel
and so destroying the spawning-beds.
" My Department has records of, and, as a matter of fact, files covering
1,443 salmon-streams in the Province, and undoubtedly there are a good many
more small unnamed ones which are not included in this list but which, nevertheless, are important, as most of these provide some spawning facilities for
salmon. It will be appreciated that even a little damage to any material percentage of these streams through logging or other operations would undoubtedly have a serious effect on the salmon supplies. Q 170 BRITISH COLUMBIA.
" If the eggs or fish in a stream are all destroyed, in any one season, that
stream is ruined as it is a fairly well accepted fact that the adult salmon
return to the stream or system in which they were hatched, and none of the
particular tribe previously using the stream would be left to return.
" It is a fact that the Federal Fishery Regulations require that in logging
operations all streams be kept free of logs and brush, but often the damage is
done before the difficulty has been discovered.
" It is not claimed that every salmon-stream has been damaged by logging
operations, but it is a fact that many of the smaller ones have been ruined
and numbers of the larger ones greatly affected in so far as the salmon-
fisheries are concerned.
" The Federal Department of Fisheries has during the past thirteen
years spent $21,361 in clearing out streams, in many of which dams had
formed and brush and roots collected as a result of logging operations. Some
of the damage had been done many years previously and in such instances it
is usually impossible to place the responsibility. Where it is possible, however, prosecutions follow.
" In fairness to the timber industry, I would like to say that the head
offices of most companies are very co-operative in the effort to protect the
salmon, but it has not been found possible to control the men on the ground,
who have charge of the logging operations. These men are eager to get out
the logs in the quickest possible time, and by the most economical methods,
and often show little, if any, regard for the welfare of the salmon-fisheries."
The evidence of the officials of the Fisheries Department, buttressed
by photographs of particular streams, supports the general observations
of the Chief Supervisor.
In a brief prepared in January of 1945 by the fishing industry of this
Province (and endorsed by the United Fisheries Federal Union) for presentation to the Minister of Fisheries for Canada, the following statement
appears:—(1)
" Attention is respectfully called to the fact that many streams and
spawning-grounds which were formerly prolific producers have now become
seriously depleted or completely exhausted. Many others are threatened with
the same tragic fate. The facts are not in doubt. Some aspects of the case
were summarized by the Chief Supervisor of Fisheries in an admirable brief
recently presented by him to . . . [the] Royal Commission of Inquiry into
the lumber industry."
Fourteen salmon-fishing and packing companies, and the Union I mentioned above, subscribed to the above statement supporting the evidence
given before me by the Chief Supervisor of Fisheries. Their brief contains (inter alia) the following primary recommendation, from which I
quote the relevant language:—
" That by preventing logg'ing companies from impeding streams or destroying salmon-beds, by clearing streams of branches and debris, by blasting
or cutting log-jams which cause the gouging of river-beds and spawning-
grounds and which impede the migration of fish [here follow other matters
not within the scope of this inquiry; e.g., the building of dams, etc.] the
salmon-fisheries of British Columbia be raised to the status of cultivated fish
farms from which ever-increasing returns can be expected with confidence."
(1)   Ex. 536, p. 2. FOREST INQUIRY. Q 171
As the Chief Supervisor stated in his evidence before me, the Federal
Fisheries Regulations vest ample and complete authority in Federal officials
to meet this challenge to the perpetuation of the salmon industry.
It is my opinion, however, that the Forest Service should also take
a hand in this endeavour.
Salmon are, in one sense, just as much a forest crop as are the trees,
for without the forested watersheds there would be no streams capable of
supporting the spawning-beds and, in consequence, no salmon. Protection
and perpetuation of the salmon run is just another forest use. The stream-
flow can be preserved by an intelligent management of the watersheds.
The spawning-beds and the streams, as highways from and to the sea, also
need protection from that type of individual—fortunately few in number—
who considers it a smart trick to haul logs down the bed of a salmon-stream,
thus destroying the eggs waiting their hatching period in the gravel-beds.
In my opinion the Forest Service should have power to cancel any contract
or terminate any form of tenure held by any operator who, or whose employee, is found guilty of this or other practices destructive of the salmon
run.
The Chief Supervisor of Fisheries suggested that a half-mile strip of
forest be left unlogged along the banks of each salmon-stream and around
the edges of the lakes at the head of these streams, as well as the lake
tributaries, although he frankly conceded that he fully appreciated the
difficulties of, and objections to, such a suggestion. In my view the objections—chiefly financial—outweigh the value of the suggestion.
I do think, however, that the Forest Service should give some consideration as to whether or not it would be practicable to plant hardwood trees
on strips of cut-over lands, in selected areas, bordering streams and lakes.
The hardwood industry of the Coast consumes about 12 million feet a year
in the manufacture of furniture and other hardwood articles. Alder matures in thirty years and will yield over 12 M. feet per acre from trees 8
inches D.B.H. and over. Maple and other hardwoods are of slower growth,
but reach maturity at approximately sixty years.
The quick-growing hardwood forest strips would assist to some extent
in controlling water run-off and erosion, would furnish shade for sport and
commercial fish in the streams, and would do much to beautify lake margins
denuded of softwood species.
From my understanding of the matter I believe, if the hardwood strips
are not permitted to become too dense, hemlock and other tolerant species
would come in and eventually take the place of the hardwood species.
If not, the hardwood trees could be selectively logged on a sustained-yield
basis.    I make the suggestion, in any event, for what it is worth.
Hardwoods are becoming increasingly difficult to log because the existing and easily accessible stands are being cut out. What is left for convenient logging is in small blocks cruising from 60 M. to 500 M. feet board-
measure.
The hardwood industry cannot be ignored in any future forest programme, and my suggestion may, if found practicable by the Forest Service, ensure a supply of raw material for that industry in addition to the Q 172 BRITISH COLUMBIA.
other indirect benefits which would result from this tree-growth on lake
and stream margins.
LOG-SCALE.
Forest measurement or mensuration is a science which deals with the
volume computation of stands, trees and logs.
The study, appraisal, purchase, and sale of forests and forest products
depends upon the application of those principles of measurement.
The most commonly used units by which forest products are measured
are cords, board-feet, and cubic feet.
A " cord " is the description used to designate the space occupied by
a pile of wood of specified dimensions. It is a unit of volume adapted to
bulk products, such as fuel-wood.
The board-foot is the most commonly used unit of measurement of
logs and lumber. In relation to log and tree measurement it is the expression of the probable yield of lumber capable of being sawed from the tree
or log into boards 12 inches wide, 1 inch thick, and 12 inches long. Thus
a board 12 inches wide, 1 inch thick, and 16 feet long contains 16 board-
feet. Lumber, however, is not cut to one standard width, nor length, nor
thickness. Hence the board-foot unit is merely the application of a theoretical standard of measurement resulting in a marked difference between
the log-scale and mill production. It has, however, been in force for many
years in this Province and, subject to certain variations in the mathematical formulae upon which the computations are based, is also in use in the
United States.
These formulae are used to ascertain the volume of the theoretical end
product by arbitrary deductions for manufacturing losses such as saw-
kerf, and therefore are not designed to express the entire volume of the
wood material in the tree or log, nor what would be actually recoverable
in terms of lumber production except in board-feet—i.e., boards
1" X 12" X 12".
The scale of small logs on the basis of the production therefrom in
terms of this measurement is manifestly inaccurate and can be regarded
only as a convenient symbol upon which to base transactions involving
this class of material.
The cubic foot is a unit of measurement that does, however, give the
entire volume of wood material within the tree or log, and does not take
into account any waste in manufacturing processes.
The Deputy Minister of Forests is of the opinion—in which I concur-—
that the " Forest Act" should be broadened to permit the use of the cubic-
foot scale as well as the board-foot system of measurement.
As methods of extracting and processing (the so-called) logging-waste
are developed in the future it seems reasonable to assume that loggers and
manufacturers might find it desirable to base their transactions in this
class of material upon the cubic system. The implementation of the recommendation of the Deputy Minister would allow this to be done. FOREST INQUIRY. Q 17c
I do not agree that the adoption of the cubic-foot scale be made mandatory in computing pulp-wood volume. It seems to me the wisest course
to pursue at present is to give statutory recognition to the two systems of
measurement, leaving it to industry to adopt which of these is found by
future experience the more practicable in the circumstances.
E. & N. LANDS.
In order to understand the questions raised before me relating to the
timber lands of the Esquimalt and Nanaimo Railway Company (now controlled by the Canadian Pacific Railway Company), it is necessary to
review shortly the history of that undertaking in which is involved, in part
at least, the terms under which this Province became part of Canada.
British Columbia was isolated from the Confederacy of 1867 by
Ruperts Land, then owned by the Hudson's Bay Company. This area,
a practically unknown wilderness, stretching for a distance of 1,200 miles
between the Rocky Mountains and Ontario and broken only by one small
settlement, Red River, was without railways or roads. Fur brigades
traversing this vastness by a series of waterways and overland trails took
many months to travel from the East to posts in this Province.
Ordinary travellers wishing to go East from here went by sea to San
Francisco and thence by United States railways. Telegraphic communication was also routed through the United States.
The population of British Columbia at this period of its history totalled
approximately 40,000 people. Of this number there were about 25,000
Indians, 9,000 whites, and 1,500 Chinese. Over 50 per cent, of this population lived on Vancouver Island.
It is manifest from the resolutions of the Quebec Conference of 1864
and from the inclusion of appropriate provisions in the " British North
America Act " of 1867 it was the policy of the Imperial as well as the
Canadian authorities that British Columbia should join in the Union of
the Provinces. Steps could not be taken, however, to attain this objective
until such time as Ruperts Land had been incorporated with the Confederation.    This was effected in 1868.
Earl Granville, Secretary for the Colonies, in a dispatch to the newly-
appointed Governor Musgrave, dated August 14th, 1869, stated he had been
aware that the Imperial Government had previously declined to entertain
the question of British Columbia's entry into Confederation until Ruperts
Land had been annexed to Canada, but now that that had been accomplished (and I quote his dispatch) —
" The question therefore presents itself whether a single colony should
be excluded from the great body politic which was thus forming itself; on
this question the Colony itself does not appear to be unanimous, but, as far as
I can judge from the dispatches which have reached me, I should conjecture
that the prevailing opinion is in favour of union. I have no hesitation in
stating that such is also the opinion of Her Majesty's Government. . . .
They anticipate that the interest of other Provinces of British North America Q 174 BRITISH COLUMBIA.
will be more advanced by enabling the wealth, credit, and intelligence as a
whole to be brought to bear on every part than by encouraging it in the contracted policy of taking care of itself, possibly at the expense of its neighbour.
Most especially as it is true in the case of internal transit, it is evident that
the establishment of a British land communication between the Atlantic and
the Pacific is far more feasible by the operations of a single government
responsible for the progress of both shores of the Continent than by a bargain
negotiated between separate—perhaps in some respects rival—governments
and legislatures. Her Majesty's Government are aware that the distance
between Ottawa and Victoria presents a real difficulty in the way of immediate union; but that difficulty will not be without its advantages if it renders
easy communication indispensable and forces onward the operations which
are to complete it."
Governor Musgrave, pursuant to this dispatch, framed the terms of
the proposed union between British Columbia and Canada and laid them
before the Legislative Council of 1870 for consideration. His draft Terms
of Union were adopted, after prolonged debate, with slight alteration.
The provision of the proposed Terms of Union relevant to this discussion is as follows:—
" 8. Inasmuch as no real Union can subsist between this Colony and
Canada without the speedy establishment of communication across the Rocky
Mountains by Coach Road and Railway, the Dominion shall, within three
years from the date of Union, construct and open for traffic such Coach Road
from some point on the line of the Main Trunk Road of this Colony to Fort
Garry, of similar character to the said Main Trunk Road; and shall further
engage to use all means in her power to complete such Railway communication
at the earliest practicable date, and that surveys to determine the proper line
for such Railway shall be at once commenced; and that a sum of not less than
One Million Dollars shall be expended in every year, from and after three
years from the date of Union, in actually constructing the initial sections of
such Railway from the Seaboard of British Columbia, to connect with the
Railway system of Canada."
On May 10th, 1870, a delegation of three left this Province for Ottawa,
by way of San Francisco, to discuss the proposed union with the Dominion
Government.
Long before this time Canadian statesmen as well as Imperial authorities had been giving considerable thought to the question of building a
transcontinental railway. From the Imperial point of view a railway for
transporting goods from Great Britain to China and the Far East was of
decided interest. The North-west Passage was to be by rail. Far-sighted
Canadians were thinking in terms of a union extending from sea to sea to
" round off " Confederation.
When our little delegation reached Ottawa, hoping for a wagon-road,
they were therefore agreeably surprised to find waiting for them " a fully
matured proposal for a railway " running from the head of the Great Lakes
to the Pacific Coast.
For reasons unknown to me, except perhaps that the oratory of
Edward Blake, Anglin, and others who were critical of the Terms of Union
has lingered down the years, a number of our citizens in Eastern Canada—■
and some here in the West who ought to be better informed—have been FOREST INQUIRY. Q 175
labouring under the fallacious impression that British Columbia demanded
a railway as the price of its entry into the Union. In truth, the facts do
not support any such assumption.
Without labouring the subject, I would refer to the following statement of Senator Miller in a speech to the Senate on April 3rd, 1871:—(1)
" A railway across the Continent on British soil was as much an Imperial
as a Dominion necessity. There is no doubt that England so regarded it.
The leading minds of the Empire had unmistakably given their opinion on the
high national character of the work."
R. E. Gosnell in " The Story of Confederation " says, at page 95, when
speaking of Sir John A. Macdonald:—
" He had inside knowledge of what might lead to annexation to the United
States, and there was more danger in the situation than people imagined then
or now. Again, at that very time a group of capitalists associated with the
Northern Pacific had planned to extend that railway through Manitoba and
through the Middle West and British Columbia to and into Alaska (purchased
by the United States from Russia in 1867). Sir John realized the danger of
such an enterprise in view of the long-dreamed-of Canadian trans-Atlantic
railway, and he lost no time in the ' rounding-out of Confederation' in order
to forestall any inroads from the United States. The best circumstantial
proof of that is that when the delegates from British Columbia arrived at
Ottawa, notwithstanding that a railway was considered by them as out of the
question, and they had been authorized to ask simply for a wagon-road, much
to their surprise they were met by a fully matured proposal for a railway.
No wonder the people of British Columbia rejoiced at the unexpected boon to
be conferred upon them."
Sir Charles Tupper was Dominion Minister of Railways at the time
the Federal Government was discussing terms with the delegation from
British Columbia.
He speaks to us from the past with the voice of one who was fully
acquainted with the situation, and in his book, " Recollections of Sixty
Years in Canada," the following passages appear:—
" The motives that impelled Sir John A. Macdonald and his colleagues
at Ottawa to ' round off ' Confederation by adding the Province of British
Columbia to the Union after the North-west Territories had been acquired
from the Hudson's Bay Company were based on national as well as Imperial
considerations.
" What would have been the fate of British Columbia if it had remained
isolated from Eastern Canada by an unexplored ' sea of mountains ' and vast
uninhabited prairies?
" There is no question that it would have inevitably resulted in the
absorption of the Crown Colony on the Pacific Coast by the United States.
Social and economic forces were working in that direction from the date of
the discovery of gold in 1856. Thousands of adventurous American citizens
flocked to British Columbia, and between the two countries there was a good
deal of intercommunication by land and sea. Sir James Douglas, an ex-
Governor, a prominent figure in the early days of the colony, was opposed to
Confederation.
" Until his eleventh-hour conversion, ex-Governor Seymour entertained
similar views.    The appointment of Anthony Musgrave, a pro-Union man,
(1)   Parliamentary Debates, p. 797. Q 176 BRITISH COLUMBIA.
in 1869, came at a psychological moment when the Imperial authorities in
London were giving their ardent support to the cause dearest to the hearts
of Canadian statesmen.
" The offer of the Dominion Government to build a railway from the
head of the Great Lakes to the Pacific Coast was the chief inducement that
settled the political destiny of British Columbia. ... As Minister of Railways at the time, I had something to do with the preliminary negotiations
and the carrying-out of the work.
" The Government of Canada, having been successful in acquiring the
North-west Territory, felt that the completion of Federation, both for national
and Imperial consideration, involved the addition of British Columbia. Sir
John A. Macdonald's views in regard to the wisdom of this step were shared
just as strongly by every one of his colleagues. They realized that a federation, to be effective for a young nation, must represent a union extending
from sea to sea.
" It would have been impossible to retain British Columbia as a Crown
Colony if overtures in favour of the Union had not been made by the Dominion. How could it have been expected to remain British when it had no
community of interest with the rest of Canada from which its people were
separated by two ranges of mountains and the vast prairie? Under the
existing circumstances it had no means of advancement except by throwing
in its lot with the great nation to the south, with which it had constant
communication both by land and sea.
" We all felt that we were bound to make the hazard of incurring the
large outlay for a transcontinental railway if Confederation from coast
to coast was to be made a reality, and if the sovereignty of Britain was
to be retained. Accordingly, negotiations towards the admission of British
Columbia were started in real earnest about the end of 1869."
The proposed Terms of Union drawn by Governor Musgrave were
amended to meet this offer of the Dominion Government, and for section 8
thereof, which I quoted above, a new section was substituted, reading as
follows:—
" 11. The Government of the Dominion undertakes to secure the commencement simultaneously, within two years from the date of the Union,
of the construction of a railway from the Pacific towards the Rocky Mountains, and from such point as may be selected, east of the Rocky Mountains,
towards the Pacific, to connect the seaboard of British Columbia with the
railway system of Canada; and, further, to secure the completion of such
railway within ten years from the date of the Union.
" And the Government of British Columbia agree to convey to the Dominion Government, in trust, to be appropriated in such manner as the Dominion
Government may deem advisable in the furtherance of the construction of the
said railway, a similar extent of public lands along the line of railway,
throughout its entire length in British Columbia, not to exceed, however,
twenty (20) miles on each side of said line, as may be appropriated for the
same purpose by the Dominion Government from the public lands of the Northwest Territories and the Province of Manitoba: Provided that the quantity
of land which may be held under pre-emption right or by Crown grant within
the limits of the tract of land in British Columbia to be so conveyed to the
Dominion Government shall be made good to the Dominion from contiguous
public lands; and provided further that until the commencement, within two
years, as aforesaid, from the date of the Union, of the construction of the
said railway, the Government of British Columbia shall not sell or alienate
any further portions of the public lands of British Columbia in any other way
than under right of pre-emption, requiring actual residence of the pre-emptor FOREST INQUIRY. Q 177
on the land claimed by him. In consideration of the land to be so conveyed
in aid of the construction of the said railway, the Dominion Government
agree to pay to British Columbia, from the date of the Union, the sum of
100,000 dollars per annum, in half-yearly payments in advance."
The British Columbia delegates readily consented to this proposal.
Two of them were from Vancouver Island and one from the Cariboo, and
a strip of land 40 miles wide on the Mainland in a region concerning which
little was known did not seem of much consequence in those days.
On the 20th of July, 1871, British Columbia, pursuant to the final and
agreed Terms of Union, became part of the Dominion of Canada.
On the 7th day of June, 1873, by Order of the Governor-General in
Council, Esquimalt was fixed as the terminus of the transcontinental railway, and a line of railway was to be located between the Harbour of Esquimalt and Seymour Narrows.
On the 15th day of June, 1873, the Dominion Government requested
the British Columbia Government to convey to it, in trust, a strip of land
20 miles in width along the eastern coast of Vancouver Island between
Esquimalt and Seymour Narrows in furtherance of the construction of the
said railway and pursuant to section 11 of the Terms of Union.
On the 30th day of June, 1873, the Provincial Government, while not
acceding to this request, did reserve this area and expressed a willingness
to convey the land once the boundaries thereof could be ascertained.
The two-year period for commencing the construction of the railway
expired in 1873 without any steps being taken by the Dominion to implement their agreement and a considerable public opinion was aroused
critical of the delay. In consequence, in 1874, a delegate was sent from
here to London to lay the matter before the Imperial Government.
This journey resulted in the appointment of Lord Carnarvon as mediator, and on the 17th day of November, 1874, he rendered his verdict,
stating in effect that a railway should be commenced without delay and
completed with all practicable dispatch between Esquimalt and Nanaimo.
In the early part of 1875 the Dominion Government notified the Provincial Government that before it undertook the construction of this railway from Esquimalt to Nanaimo a strip of land 20 miles wide on each side
of the line must be conveyed to it in trust.
The Provincial Government agreed to this demand, and an Act was
passed in April, 1875, implementing this agreement, intituled " An Act to
authorize the Grant of certain Public Lands to the Government of Canada
for Railway Purposes."
The line was thereupon located and steel rails landed at Nanaimo and
Esquimalt.
A few months later—in September of 1875—the Dominion Government, for reasons not entirely clear, offered $750,000 to the Province as
compensation for the delay in commencing the work on the transcontinental railway, such sum to be applied by the Province to the building
of the Esquimalt and Nanaimo link, or to such other public works as the Q 178 BRITISH COLUMBIA.
Government might consider advantageous, and, in addition, agreed to surrender its claim to the Island Railway lands.
The British Columbia Government refused this offer, and there the
matter rested until 1876 when the Legislature strongly urged that Lord
Carnarvon's settlement be effectuated. A further memorial was addressed
to the Imperial authorities.
In 1878, no construction having been commenced in the interim, the
Dominion Government cancelled the Order in Council of June, 1873, designating Esquimalt as the terminus of the transcontinental railway and its
request for a conveyance of the Island Railway Belt.
In April of 1879 the Dominion Government annulled the Order in
Council of 1878 and revived the original Order in Council of June, 1873,
probably because the Provincial Government had inquired if the Dominion
Government also wished it to cancel the Mainland reserved areas as well.
In 1880 the Dominion Government requested a conveyance of additional lands in lieu of lands on the Mainland and Island belts believed
valueless for agricultural or other economic uses, and to supply the deficiencies in the 40-mile strips caused by the International Boundary on the
Mainland and the indentations of the coast-line of Vancouver Island.
Notwithstanding the fact that said section 11 did not contain any undertaking on the part of the Province to convey lands in lieu of lands in the
Railway Belts not suitable for agricultural purposes, 3,500,000 acres in
the Peace River Block were, in 1883, conveyed to the Dominion Government. These lands were returned to the Province in 1930 consequent upon
a recommendation of a Royal Commission appointed to inquire into this
matter.
In February, 1883, the Provincial Government sent the following note
to the Dominion Government:
" That the land on the east coast of Vancouver Island had been continuously withheld from settlement since July, 1873, up to the present time, and
the development of that fertile tract of country, abounding in mineral wealth,
had been retarded to an incalculable extent."
And they recommended as a basis of settlement of the railway and railway
land questions that the Dominion be urgently requested:
". . . to commence to construct the Island railway and to complete it with
all practicable dispatch, or by giving such compensation for failure to build
it as would enable the Provincial Government to build it as a Provincial work
and open the east coast lands for settlement."
Later in 1883 the Dominion Government communicated its desire to
the Provincial Government to reach a final adjustment of (inter alia) the
Island Railway matter.
It suggested that the Provincial Legislature incorporate a company of
persons to be designated by the Government of Canada for the purpose of
constructing the railway from Esquimalt to Nanaimo, and that it would
convey the Island Railway land to this corporation and contribute thereto FOREST INQUIRY. Q 179
the sum of $750,000 in aid of the construction of the said railway, such
construction to be completed on or before the 10th day of June, 1887.
The Provincial Government consented to this proposal and the agreement between the two Governments was embodied in two Acts passed in
1883 and 1884, both intituled " An Act relating to the Island Railway, the
Graving Dock, and Railway Lands of the Province."
It was by these Acts that the boundaries of the Railway Belt were
described/1* the lieu lands were transferred to the Dominion, and other
outstanding disputes and difficulties arising out of the Terms of Union
were finally resolved.
In 1884 the Dominion Parliament also passed an Act implementing
the agreement with the British Columbia Government. By this Act the
Dominion Government was authorized to convey to the Esquimalt and
Nanaimo Railway Company the Island Railway Belt, upon completion of
the railway to the satisfaction of the Dominion Government, and to pay to
that company the sum of $750,000 as a subsidy in aid of the construction of
the said railway.
The British Columbia Government by the Acts of 1883-84 constituted
the persons to be named by the Governor-General in Council, and such
other persons who might become shareholders therein, as a body corporate
by the name of " The Esquimalt and Nanaimo Railway Company."
The Governor-General in Council named Robert Dunsmuir, James
Dunsmuir, and John Bryden of Nanaimo, and other American associates,
as members of the company.
On the 28th of August, 1883, Robert Dunsmuir and his associates
entered into a contract with the Dominion Government for the construction
of the said railway, and the Dominion Government in consideration thereof
agreed to convey and assign the Railway lands to the said contractors, who
in turn agreed to assign and transfer the liabilities and benefits under the
said contract to The Esquimalt and Nanaimo Railway Company. The Railway Company completed the construction of the line to the satisfaction of
the Dominion Government, and on the 21st of April, 1887, the Dominion,
by deed, granted and conveyed the Island Railway Belt to the Company.
Neither the Agreement of 1883 between the contractors and the
Dominion Government nor the Dominion Statute of 1884 contain any reference to Provincial taxation of the Island Railway lands. There never was
any contractual relationship between the Provincial Government and the
contractors or the Railway Company in relation to the transfer of the
Railway Belt to the Railway Company. The Provincial Acts of 1883-84
do, however, contain the following relevant provision:—
" 22. The lands to be acquired by the Company from the Dominion Government for the construction of the Railway shall not be subject to taxation,
unless and until the same are used by the Company for other than railroad
purposes, or leased, occupied, sold or alienated."
(1)  See map on page 181.
11 Q 180 BRITISH COLUMBIA.
Two questions are now before me for consideration:—
First: The right of the Provincial Government to impose a fire protection tax upon unalienated timber lands remaining in the Railway Company; and
Second: The right of the Province to impose a severance tax upon
timber cut from these lands after the sale thereof by the Railway
Company.
Before the first question can be answered it must be determined if
the fire protection tax is, in the strict legal sense, a tax, or a fee or charge
for a service rendered by the Crown. If a tax, then certainly it falls
within the exemption of section 22 quoted above. If not a tax (although
called one) but a charge for a service, then it does not come within that
section. It seems to me this question must be determined by the Courts,
and, in consequence, I do not wish to express any opinion on the matter.
The question of the imposition of a severance tax on timber cut by
purchasers of E. & N. lands presents a problem of some nicety. At the
present time E. & N. land now in the hands of private owners is assessed
and pays a land tax, and, if timber land, a fire protection tax. The Crown,
however, receives no revenue from the timber cut on these alienated areas.
The Deputy Minister of Forests estimates that if the timber cut
thereon paid the prevailing royalty rates, averaging $1.10 per M., the
Crown would have received therefrom during the last ten years a revenue
of between $750,000 and $800,000 a year, and would receive substantial
revenues from this source in the future. The average of $1.10 per M.
includes royalty on hemlock at 60 cents, and as Douglas fir is the predominant species in the Belt this estimate of revenue is probably conservative.
The question of imposing a severance tax on this timber must, I think,
be approached from two avenues: First, is it just and equitable to impose
the tax, and, second, is this a matter within the legislative competence of
the Province?
In considering the first question I assume that the imposition of such
a tax would tend to reduce the revenue of the Railway Company from the
sale of its timber land because purchasers would likely pay less for taxable
than non-taxable timber.
In relation to this branch of the subject the historical background
I have sketched in is of importance.
It will be remembered that the Island land grant, containing approximately 3,000 square miles, was conveyed by the Province to the Dominion,
and by the Dominion to the Railway Company, as an aid in the construction
of the line from Esquimalt to Nanaimo. Included in this area were and
are large stands of the finest timber remaining on this continent.
The line from Esquimalt to Nanaimo, consisting of 82.9 miles of
railway, together with rolling-stock and equipment, cost the Company
$3,101,382. Private capital contributed $2,500,000, and the Dominion subsidy of $750,000 made up the balance of the required fund. ESQUIMALT   AND  NANAIMO
RAILWAY LAND GRANT
126°
124-
126
24-"
Scalef50 miles tolinch
181  FOREST INQUIRY. Q 183
From 1887 to 1897 no records of the sale of timber lands were kept
by the Railway Company, but it appears that from 1898 to July 31st, 1944,
the Company disposed of 763,565 acres of timber land containing over
7 billion feet of timber, and realized therefrom the sum of $14,814,792.69,
or about six times the contractors' investment in the railroad from Esquimalt to Nanaimo. Operation and maintenance costs have been met from
operating revenue.
There is remaining in the possession of the Company areas of unalienated timber lands estimated to contain between 5 and 6 billion feet board-
measure, which at the conservative figure of $2 per M. would be worth
from $10,000,000 to $12,000,000.
The cost of the Alberni and Courtenay extensions have been financed
by bond issues and a further grant from the Dominion Government of
$770,560.
From the foregoing I am unable to see how it would be unjust and
inequitable to impose a severance tax on purchasers of E. & N. timber,
even assuming it to be a fact that the Railway Company would not receive
quite as high a price for its stumpage on future sales as it has in the past.
A return from the sale of timber land alone of approximately $25,000,000
when compared with the original investment of $2,500,000 would appear
to most people a reasonably adequate subsidy for the construction of
82 miles of railway. What other amounts have accrued or will accrue to
the Company from the mineral wealth of the Belt and from the sale of land,
other than timber land, were not disclosed to me.
It has been said that to impose such a tax would be a " breach of the
contract between the Province and the Railway Company." There are two
obvious answers to that argument. In the first place there is no contract
between the Province and the Company. If, on the other hand, the Acts
of 1883-84 are assumed to create such a relationship, then the terms of
section 22 must govern. That section, it will be recalled, only exempted
the Railway lands from taxation until " the same are used for other than
railroad purposes, or leased, occupied, sold or alienated."
Counsel for the Railway Company frankly conceded in his argument
before me that once the Company had parted with the land any Provincial
tax thereon could not be said to be " a breach of the contract."(1) He went
on to say, however, that the imposition of such a tax on only one class of
Crown grantees would be discriminatory and that it should be applied to
all such tenures. With deference, I do not agree with this contention.
There is a marked distinction between the grant of the Island Railway
Belt and an ordinary Crown grant in which no royalties were reserved to
the Crown. In effect, the Crown has said to the Railway Company by
section 22: " Your lands will not be taxed while in your ownership. We do
not bind ourselves not to tax these after you have sold them to private
individuals." On the other hand, it has said in effect to Crown grantees
of royalty-free lands:  " We grant you these lands without reserving any
(1)  Pp. 501, 603, 510, 512, transcript of argument. Q 184 BRITISH COLUMBIA.
interest therein to ourselves. Having parted with possession on those
terms we will not impose a royalty on these lands at any future date,
whether in your possession or in the possession of any successors of yours
to the title thereof. Any attempt to do so would be a clear breach of our
contract with you and a violation of the public conscience."
Therein, as I see it, lies the basic distinction between these two classes
of Crown grants. Counsel for the Railway Company, as I understood him,
also contended that as the tax would be passed back to and borne by the
Railway Company it was therefore in effect a form of indirect taxation and,
in consequence, ultra vires the Provincial Legislature. That is not a matter
upon which I wish to express an opinion as Commissioner.
A further alternative contention was advanced that if the severance
tax was not an indirect tax in the strict legal sense of the term and the
Province had the power to impose it, nevertheless the Act would be subject
to disallowance by the Dominion Government because the tax in its incidence would fall upon the Railway Company in derogation of its grant,
notwithstanding the fact that it could not be described as a breach of the
original contract. I have some difficulty in following this argument.
It seems to include two inconsistent submissions. However that may be,
in my opinion the simple answer to that question is found in the quoted
section 22 and in the basic distinction I made between the Island Railway
grant and an ordinary Crown grant.
The Province never at any time agreed by contract or statute or otherwise to treat the E. & N. lands as tax free when sold to third persons.
The Railway Company assumed title to these lands on the terms set out in
said section 22 and cannot now complain of the basis on which its title
rests.
Then, too, if the Railway Company had received a Crown grant of the
Railway Belt direct from the Province on April 21st, 1887, instead of from
the Dominion Government, these lands would have been subject to royalty
because granted subsequent to April 7th, 1887.
To sum up, then, in my opinion it is in the public interest that a
severance tax be imposed upon all timber cut upon lands of the Railway
Company after the same are sold or otherwise alienated by it. I do not
recommend that this tax apply to lands already sold by the Company.
The amount of the tax should, I think, approximate prevailing rates of
royalty.
As I previously made mention, counsel for the Railway Company
called into question the competence of the Provincial Legislature to impose
such a tax. I cannot decide that question as Commissioner, and therefore
recommend that appropriate steps be taken by the Crown to have this
matter determined by the Courts. If it is decided that the imposition of
a severance tax on timber cut by purchasers of E. & N. timber land is ultra
vires the Province that ends the matter. If the decision is that the tax is
intra vires, then, as I have said, in my view it ought, in the public interest,
to be imposed on future alienations. FOREST INQUIRY. Q 185
PARKS ADMINISTRATION.
By Item 7 of the Commission I am directed to inquire into:—
" The use and management of forest and wild lands for parks   ...   in
relation to forest administration."
Just what limitation is imposed upon me by the restrictive phrase " in
relation to forest administration " I am not able to say with certainty,
except that my inquiry into this question is not to be at large.
In the Province there are fifty-two parks totalling in area 10,823,130
acres or 16,901 square miles.
Probably the more accurate description to be applied would be " park
areas " instead of " parks," for with few exceptions these areas are
of the forest primeval without roads, trails, or other organized park
developments.
Parks are created in three ways: by the Lieutenant-Governor in Council under the " Forest Act," by the Lieutenant-Governor in Council under
section 94 of the " Land Act," and by Special Acts of the Legislature.
Parks constituted under the relevant provisions of the " Forest Act"
fall into three classifications:   " A," " B," and " C."
Lands included in Classes " A " and " C " are reserved from preemption, sale, lease, or licence under the " Land Act," and certain restrictions are also imposed on the holders of mineral claims located in these
areas.
The Crown timber on any Class " A " park is reserved from cutting
or sale, except as such cutting and incidental sale may, in the opinion of
the Deputy Minister of Forests, be necessary and advantageous in developing or improving the park, or protecting and preserving the major forest
values of the park for the enjoyment of the public. In other words, no
timber can be sold from Class " A " park areas for the primary object of
obtaining revenue therefrom.
Crown timber on areas within Class " B " parks may be sold except
where, in the opinion of the Deputy Minister of Forests, disposal of such
timber would be detrimental to the recreational value of the area.
Class " C " parks are very small areas and for the main part are set
aside for children's playgrounds and such like. Q 186
BRITISH COLUMBIA.
The following is a list of Provincial parks, with relevant information
relating thereto:—
Name of Park.
Date created.
Acreage.
Park Class.       Forest District.
Beatton	
Brentwood Bay.. 	
Chasm  	
Clearwater	
Crescent Beach  _—
Darke Lake	
Dead Man's Island	
Elk Falls..... - —
Elk River 	
Englishman River Falls..
Garibaldi (1)  —
Hamber  	
Inonoaklin	
John Dean	
Keremeos Columns	
King George VI..— 	
Kokanee Glacier	
Liard River(2)	
Little Qualicum Falls..
Lockhart Beach	
Manitou	
Manning  -
Mara Recreation	
Medicine Bowls.— _
Mount Assiniboine	
Mount Bruce 	
Mount Maxwell	
MountRobson(l)	
Mount Seymour	
Nakusp Hot Springs..
Nakusp Recreation—
Oliver— 	
Osoyoos.
Peace Arch	
Premier Lake__
Princeton	
Salt Lake	
Silver Star	
Sir Alexander McKenzie..
Sooke Mountain-—	
Stamp Falls	
Strathcona (D— _
Strombeck _
Summit Lake(2)_
Swan Lake—
Testalinda.—.
Tweedsmuir..
Wells Gray—
Wendle 	
Westbank—
Westview	
White Rock-
Totals—
Class " A "
Class " B "
Class " C "
Special
Sec. 94, " Land Act'
14-9-34
19-5-38
17-5-40
14-12-38
4-11-38
29-6-43
31-10-33
20-12-40
24-11-39
20-12-40
16-9-41
15-11-29
9-12-21
31-7-31
3-5-37
6-2-22
4-2-44
20-12-40
13-10-33
26-7-40
17-6-41
31-5-33
20-12-40
6-2-22
31-12-38
21-10-38
31-1-36
15-6-25
24-4-31
6-1-37
25-1-39
7-11-39
26-4-40
22-2-28
15-8-25
17-5-40
10-2-26
25-6-28
20-12-40
20-10-33
23-9-42
19-6-18
19-8-39
21-5-38
28-11-39
17-4-41
3-5-37
19-8-31
12-30-30
770.10
1.40
315.00
260.00
237.00
5,472.00
1.00
2,810.00
10.40
240.00
622,720.00
2,431,960.00
5.50
98.37
720.00
50.00
64,000.00
1,802,240.00
130.30
4.90
2.50
171,500.00
14.60
30.30
12,800.00
480.00
472.00
513,920.00
8,480.00
127.00
91.00
21.45
7.28
16.15
165.00
341.12
87.10
21,887.50
13.00
1,446.00
323.83
529,920.00
0.685
7,200.00
166.00
4.80
3,456,000.00
1,164,800.00
640.00
2.00
10.21
114.80
C
C
A
C
C
A
C
A
C
A
Special
A
C
A
A
C
A
Sec. 94,
' Land Act'
A
C
C
A
C
C
A
C
C
Special
A
C
C
C
C
A
C
C
C
A
A
B
A
Special
C
Sec. 94,
1 Land Act'
C
C
B
B
C
C
c
c
Fort George.
Vancouver.
Kamloops.
Kamloops.
Vancouver.
Kamloops.
Prince Rupert.
Vancouver.
Nelson.
Vancouver.
Vancouver.
Fort George.
Nelson.
Vancouver.
Kamloops.
Nelson.
Nelson.
Fort George.
Vancouver.
Nelson.
Kamloops.
Kamloops.
Kamloops.
Vancouver.
Nelson.
Vancouver.
Vancouver.
Fort George.
Vancouver.
Nelson.
Nelson.
Kamloops.
Kamloops.
Vancouver.
Nelson.
Kamloops.
Prince Rupert.
Kamloops.
Prince Rupert.
Vancouver.
Vancouver.
Vancouver.
Prince Rupert.
Fort George.
Fort George.
Kamloops.
Prince Rupert.
Kamloops.
Fort George.
Kamloops.
Vancouver.
Vancouver.
Parks.
__. 16
...    3
... 28
Totals
52
Acres.
2,720,771
4,622,246
4,113
1,666,560
1,809,440
10,823,130 (16,901 square miles)
(1)
(2)
Not strictly
Not strictly
" Provincial parks "—administered under separate Acts.
" Provincial parks "—administered under sec. 94, " Land Act." FOREST INQUIRY. Q 187
Parks constituted under the " Forest Act " are administered by the
Forest Service and provision is made in that statute for the appointment
by the Minister of Lands and Forests of an Advisory Board for any such
park falling within Categories " A " and " B." The Deputy Minister of
Forests is under statutory direction to consult from time to time with such
Board. For any Class " C " parks the Minister may appoint a Park Board
with power to manage, administer, and regulate that park.
The " Land Act" neither contains any provision relating to the
administration of parks constituted under section 94 of that Act, nor is
there any apparent power to pass regulations governing timber uses in
these park areas, although the area included therein totals 1,809,440 acres.
In my view these parks should be classified and administered by the Forest
Service under the relevant provisions of the " Forest Act."
Each park created by a Special Act such as Garibaldi, Mount Robson,
and Strathcona is, by the terms of its own statute, to be administered by
Park Boards to be appointed by the Lieutenant-Governor in Council.
The Act creating the Strathcona Park was passed in 1911, and that
constituting Mount Robson Park in 1913. Thus far no Park Board for
either of these parks has been appointed. These areas are presently
administered by the Lands Branch of the Department of Lands and
Forests, and no regulations, so far as I can find, have been issued in relation
to the timber therein.
The combined area of these two parks covers over 1,000,000 acres.
Garibaldi Park is administered by a Park Board which is without
funds either to conserve and protect the large timber resources of
this park or to carry out any programme of park improvement and
development.
No policy in relation to forest administration has as yet been formulated by the Garibaldi Park Board.
This park's original area was, as shown on the table, 622,720 acres.
In March of 1943, 10,105 acres thereof were excluded from the park area
and leased to the University of British Columbia as a demonstration forest
for the use of forestry students.
Considerable support was given by a group of witnesses to the proposed creation of an autonomous Provincial Parks Board which would
assume responsibility for park selection, planning, development, and general administration of Provincial park areas. With deference, I cannot
concur in this recommendation. In my opinion parks should be administered by a Parks Branch of the Forest Service staffed by a selected personnel especially trained in this type of administration. By this form of
control a close integration between all forest uses in park areas may be
anticipated. Q 188 BRITISH COLUMBIA.
UNIFORMS FOR FOREST SERVICE.
No evidence was introduced on this subject but I think it is one to
which serious consideration should be given by the Minister. Appropriate
uniforms similar in design to those now worn by the Provincial Police and
the Game Branch would tend to smarten up the Service and give its field
officers an outward sign of authority now lacking.
FINIS.
With that comment I complete this Report, but before writing a
final " 30 " I would record my appreciation of the careful and thorough
manner in which H. W. Davey, Esq., K.C., counsel to the Commission,
collected and presented before me the great volume of evidence from which
I have drawn the conclusions expressed herein.
To the many witnesses, within and without the Forest Service, who
gave so freely of their time, talent, and money in the preparation of their
evidence covering the many and varied problems involved in the inquiry,
I am deeply grateful.
To counsel for private interests and to lay representatives of various
professional and other groups, I express my thanks for their valuable
assistance.
The officials of the United States Forest Service furnished us with
much data and their evidence was found informative and useful. I am
appreciative of their very kind co-operation.
And, finally, I wish to acknowledge the great service the secretary to
the Commissioner—Mr. Watson—rendered in preparing an index of the
evidence for me, and the many courtesies he extended in smoothing the
way for us all during these long months of association. APPENDIX.
IDENTIFICATION OF WITNESSES.
Abrahamson, John Albert, Revelstoke Board of Trade.
Aitkenhead, K. F., Secretary-Treasurer, Lawrence Manufacturing Company,
Limited.
Allen, Robert Emmett, District Forester of the Nelson Forest District.
Allison, A. P., President of the Allison Logging Company;   President and
Manager of the Lions Gate Lumber Company.
Andrews,  I.  H., Technical  Director of the Powell River Pulp and Paper
Company.
Andrews,  L. R.,  Forest Engineer,  British  Columbia Lumber and Shingle
Manufacturers' Association.
Angle, W. N., Interior British Columbia Resort Owners' Association.
Applewhaite, John Hay, Forest Ranger at Invermere.
Arbuthnot, Mrs. Lillian, Victoria.
Bain, Peter, A. B. Burns Lumber Mill;  National Spruce Sawmill;  Princeton
Trail Sawmill.
Baker, D. H., Chemical Engineer.
Barnes, Frances, Lumberman.
Barnes, G. H., Professor of Forestry, Corvallis, Oregon.
Barclay, S. W., Royalty Inspector, Forestry Department.
Barrett, J. R., Steel Foreman, Burrard Dry Docks, North Vancouver.
Barton, Eric W., Secretary, Kelowna Board of Trade.
Bassett, H. V., Statistician, Bureau of Economics and Statistics, Department
of Labour.
Becker,  Frank F., Secretary-Treasurer, Pioneer Sash and Door Company,
Limited.
Bell, F. 0., Member of the Garibaldi Park Board.
Bell-Irving, R., Vice-President of the Powell River Pulp and Paper Company.
Bennett, Walter, President, Vernon Board of Trade.
Bentley, L. L. G., Vice-President of Canadian Forest Products, Limited.
Bier, J. E., Forest Pathologist.
Bickell, L. K., Chief Chemist, British Columbia Pulp and Paper Company.
Biker, Walter J. E., Civil Engineer.
Bird, W. H., Brotherhood of Railway Trainmen.
Bissett, Cleophas, Mill Operator, Kamloops Co-operative Association.
Blake, J. O., President of the Metchosin Farmers' Institute.
Borup, Helge, Logging Operator.
Bourque, Edward W., Regional Wood Fuel Officer, Department of Munitions
and Supplies.
Bowman, Henry Robson, Manager of Colonization for the Canadian National
Railway.
Bradley, T. J., Organizer and Representative of the Canadian Congress of
Labour.
Browne, Adolphus, Fruit and Vegetable Packer and Shipper.
Brown, D. C, Vancouver Parks Board.
Brown, Rosco, Dominion Forest Laboratory.
Buck, G. A., President of the Malahat Logging Company, Vancouver.
Buckley, F. L., Lumber-manufacturer and Box-manufacturer.
Bulman, Thomas A., Cattle-rancher.
Bulman, Thomas Ralph, Bulman's, Limited.
Burns, Gordon K., Burns Lumber Company.
189 Q 190 BRITISH COLUMBIA.
Burns, Harry, Nelson Board of Trade.
Burns, Richard Ronald, Advisory Board, King George VI. Park.
Butler, F. R., British Columbia Game Commissioner.
Caine,  Martin  Surrey,  President of the Northern  Interior  Lumbermen's
Association.
Cameron, Colin, Member of the Legislative Assembly.
Cameron, D. 0., Director, Cameron Lumber Company.
Cameron, D. T., Dominion Fisheries Inspector.
Cameron, Robert, Forest Ranger.
Cameron, Thomas Gray, Cranbrook Farmers' Institute.
Cameron, William Tupper, Chairman, Vernon Local of the British Columbia
Fruit-growers' Association.
Capostinski, Frank, Logging Superintendent for the Swanson Logging Company, Limited.
Chapman, D. D., Reeve of the Municipality of North Cowichan.
Charlesworth,  E.  A.,   Supervisor  of  Scalers  for the  Interior  of British
Columbia.
Clare, Cecil Thomas, Northern Interior Lumbermen's Association.
Clark, J. T., Surveyor of Taxes.
Cleasby, Henry S., Secretary of the Nicola Stock-breeders' Association.
Cleveland, B. C., Chief Commissioner of the Greater Vancouver Water Board.
Cole, Thomas, Surveyor of Taxes.
Collett, Horace C. S., Association of British Columbia Irrigation Districts.
Collett, John Henry, British Columbia Stock-growers' Association.
Collier, Eric, The British Columbia Registered Trappers' Association.
Constable, Guy, Creston Dyking Company, Limited.
Cooper, Edward, Associated Rod and Gun Club of East Kootenay.
Cosins, Edward Bruce, Alderman of the City of Vernon.
Cowan, C. S., Chief Fire Warden for the Washington Forest Fire Association.
Cowan, Samuel, Western Lumber Manufacturers' Association of Canada.
Crickmay, James, Industrial Timber Mills, Limited.
Crow, Robert J., Rancher.
Cutler, C. J., Hammond Cedar Company;   Industrial Timber Mills at Youbou.
Dallimore, W., Farmer.
Davis, E. F., Controller of Water Rights for the Province of British Columbia.
Davison, Edward Sumner, Forester;  Fernie Farmers' Institute.
Dawson, Howard D., Nelson City Engineer.
DeLand,  A.  M.,   Forest  Manager  for  the  Powell   River  Pulp  and  Paper
Company.
DesBrisay,   Albert  G.,  President  of the  British  Columbia  Fruit-growers'
Association.
Dillman, Martin, Tie and Lumber Mill Operator.
Dixon, L. B., Chief Inspector for the British Columbia Lumber and Shingles
Manufacturers' Association.
Dorman, J. G., Manager of Bones Bay Cannery.
Drummond,   George   F.,   Professor   of   Economics,   University   of   British
Columbia.
Dumont, Michael, Michael Dumont Mill.
Duncan, K. F., Duncan Chamber of Commerce.
Elder, Dalton, Elder Logging Company.
English, H. 0., Teacher, Provincial Normal School.
Ericson, 0. F., Assistant Regional Forester.
Fairbairn, W. H., Dominion Fisheries Inspector.
Fairweather, Harold E., Manager, Oliver Mills.
Farstad, Alfred, Director, Cranbrook Sawmills;  Creston Sawmills, Limited.
Field, L. L., Farmer.
Field, C. D., Farmer. FOREST INQUIRY. Q 191
Filberg, Robert, Vice-President, Comox Logging Company, Limited.
Finlaison, George, Sawmill Operator.
Fjelstad, Anders, Delegate to Dumbarton Oaks for the Norwegian Government for Agricultural Affairs in Foreign Countries.
Flavelle, Aird, President, Thurston-Flavelle, Limited.
Foley, H. S., President of the Powell River Pulp and Paper Company.
Fraser, Douglas P., Secretary of the Osoyoos Local, British Columbia Fruitgrowers' Association.
Fraser, K. F., Manager of the Fraser River Branch of British Columbia
Packers, Limited.
Fraser, W. E., Malahat Board of Trade.
Freeman, Stephen, District " G " Farmers' Institute.
French, Percival E., President of the British Columbia Federation of Agriculture.
Fry, Julian E., Rancher.
Gardom, Basil, President, Independent Milk Producers' Co-operative Association.
Gerhardi, Thomas Edward, Fort Fraser Farmers' Institute.
Gibbs, P. A., Chartered Accountant.
Gibson, J. G., W. F. Gibson and Sons, Limited;   Gibson Brothers, Limited.
Gibson, Thomas Morden, Superintendent of West Canadian Hydro Electric
Corporation, Limited.
Gilmour, J. D., Forester for the H. R. MacMillan Export Company, Limited.
Gilroy, William Daniel, President, Cranbrook Board of Trade.
Glaspie, E. S., Glaspie Lumber Company.
Gordon, D. M., Barrister-at-law.
Granley, John D., Automobile Dealer.
Greeley, W. B., Secretary-Manager of the Washington Western Lumbermen's
Association.
Greenley, Everett, President of District " H " Farmers' Institute.
Gregor, Robert D., District Forester, Fort George Forest District.
Griffith, W. B., Assistant Professional Forester, University of British
Columbia.
Groves, J. D., Associated Boards of Trade of Vancouver Island.
Guichon, Lawrence Peter, Rancher.
Halksworth, Samuel E., President, Okanagan Valley Co-operative Creamery
Association.
Hanbury, Wilfred, Ponderosa Pine Lumber Company, Limited.
Harris, Ormand S., President, Interior Lumber Manufacturers' Association.
Harrison, William, President, Sheep-breeders' Association.
Hart, Ellen, Secretary of the Society for the Preservation of Native Plants.
Hatcher, G. T., Research Staff, Bureau of Economics and Statistics.
Hayden, Charles Albert, British Columbia Federation of Agriculture.
Hazbrook, Elliott A., Timber and Log Broker.
Herridge, Herbert W., Member of the Provincial Legislature.
Hetherington, H. H., A. H., & R., Company, Limited.
Hibberson, R. W., Timber-cruiser, Forest Surveyor, and Timber-broker.
Hodgins, Hugh John, Forester, Pacific Mills, Limited.
Hodgins, Stanley, District Forester for the Western Pine Association.
Holland, R. R., Board of Park Commissioners.
Holmes, C. F., Supervisor, British Columbia Forest Branch.
Hommersham, Robert B., Secretary, Heffley Irrigation District.
Hoover, George Adam, President, Nelson Board of Trade.
Hopp, Henry, Farmer.
Hopping, G. R., Entomologist, Dominion Insect Laboratory, Vernon.
Hopkins, Samuel, Agriculturist, Consolidated Mining & Smelting Lands
Company. Q 192 BRITISH COLUMBIA.
Horton, R. Elmer, Manager of the W. W. Powell Company, Limited, Nelson.
Howe, Charles B., Superintendent, Penticton Municipality.
Huddlestone, Cecil G., Reeve of Summerland Municipality.
Humber, John, Director of the Victoria Lumber Company, Limited.
Hunt, G. W., Civil Engineer.
Hunter, H. M., President, Lake Logging Lumber Company, Limited.
Hurt, Charles John, Alderman, Vernon Municipality.
Irwin, G. M., Water Commissioner for the City of Victoria.
Irwin, H. S., Chairman of the British Columbia Loggers' Association.
Ivens,   Joseph,   British   Columbia   Fruit-growers'   Association   (Okanagan,
Mission, and Kelowna Locals).
Jackson, G. W., Burns & Jackson Logging Company, Limited.
Jarvis, R. I., Secretary to the Columbia Contracting Company.
Johnson, J. V., President of the Victoria Chamber of Commerce.
Johnson, J. W., Revelstoke Board of Trade.
Johnstone, David B., Kamloops Board of Trade.
Jostad, 0., Cranbrook Cartage and Transfer Company, Limited.
Kappel, Frank, Secretary-Treasurer of the R. W. Bruhn Lumber Company.
Kaun, Frederick B., Manager of the Frank Knight Lumber Company.
Kelly, E. W., Regional Forester of the Northern Region, United States Forest
Service.
Keate, W. L. (Jr.), Manager, Fort Neville Logging Company.
Kennelly, Martin, Barr & Kennelly Company.
Kerr, A. S., Timber Inspector for the British Columbia Pulp and Paper
Company, Limited.
Killam,  L.,  President of the British Columbia Pulp and Paper Company,
Limited.
King,  E.  C,  Secretary-Treasurer of the Western Lumber Manufacturers'
Association.
Kirby, Judson 0. C, Secretary of the Princeton Board of Trade.
Knapp, F. M., Associate Professor of the Department of Forestry at the
University of British Columbia.
Knowles, R. A., Forest Club of the University of British Columbia.
Koerner, L. J., President of the Alaska Pine Company, Limited.
Lambert, Arthur A., Civil Engineer, West Kootenay Power and Light Company.
Lambert, A. M., Mohawk Handle Company, Limited;   Columbia Hardwoods,
Limited.
Lambert, W. G., President, Mohawk Handle Company, Limited;   Columbia
Hardwoods, Limited.
Leary,  Charles  S.,   Interior  Lumbermen's  Association;    Chairman  of the
Standing Committee on Forestry, British Columbia Legislature.
Lee, Norman, Business Counsellor.
Leir, Hugh, Manager of the Penticton Sawmills.
Leuthold, Walter L., Lumberman.
Liersch, J. E., Head of the Forestry Department,  University of British
Columbia;  Production Manager, Aero Timber Products.
Long, Kenneth A. W., Long Brothers' Sawmill;   Southern Interior Lumbermen's Association.
Longacre, L. A., Director of the L.M. & N. Logging Company, Limited.
Lloyd, Arthur G., British Columbia Tree Fruits, Limited.
Lundbom, Victor A., Crow's Nest Pass Lumber Company.
Lyndh, Harold 0., United States Forest Service, Region 6.
Lytton, L. C, Assistant Land Agent of the Esquimalt & Nanaimo Railway
Company.
McBain, C. W., Land Agent of the Esquimalt & Nanaimo Railway Company.
McBean, A. P., Assistant Forester. FOREST INQUIRY. Q 193
McCannel, Kenneth C, Assistant District Forester, Nelson Forest District.
McCluskey, John Wesley, Forest Ranger.
MacDonald, A., Dominion Fisheries Inspector.
McDonald, J. H., British Columbia Manufacturing Company; Westminster
Shook Mills;  Maple Ridge Lumber Company.
MacDonald, John A., Waldo Stock-breeders' Association.
McDougall, Dougald, Secretary, Rutland Co-operative Society.
McEwan, Joseph J., West Kootenay Rod and Gun Club.
McGinnis, John, Prince George Board of Trade.
McGinnis, 0. A., Superintendent of Columbia Valley Irrigation Company.
McKee, Robert G., Assistant District Forester for Kamloops Forest District.
McKee, R., President, Pioneer Timber Company, Limited.
MacKenzie, Mrs. E. C, Society for the Preservation of Native Plants.
McKenzie, M. G., Trade Assistant in the Bureau of Economics.
Mackin, H. J., President, Canadian Lumber Company, Limited.
Mackin, Keith, Operations Superintendent of the East Kootenay Power
Company, Limited.
MacKinnon, Charles E., Mechanical Engineer.
McKinnon, F. S., Economics Department of the Forestry Branch.
McLean, Sinclair, Northern Interior Lumbermen's Association.
McLennan, D. C, Shipwright.
McMahan, William, Manager of the Harrison Mill for Canadian Products.
MacMillan, H. R., H. R. MacMillan Export Company, Limited.
McMullen, J. E., Vice-President and Director, Esquimalt and Nanaimo Railway Company.
McMinn, Cecil G, Boundary Sawmills, Limited.
McPhee, D., Sinclair Mills, Limited.
McQuillan, J. C, Manager, North Coast Timber Company.
Manning, F. A. E., President, British Columbia Lumber and Shingles Manufacturers' Association;  President, Manning Lumber Mills, Limited.
Matthews, W. J., Cannery Manager.
Melrose, G. P., Assistant Chief Forester.
Mercer, W. M., Research Department of the Bureau of Economics.
Miller, Albert, Fruit-grower.
Miller, G., Secretary-Manager of the Canadian Forestry Association of
British Columbia.
Mills, J. R., Manager, Canadian Forest Products, Limited.
Morgan, Granville, Penticton and District Fish, Game, and Forest Protective
Association.
Moser, Albert, Tourist Resort Owner.
Motherwell, J. A., Chief Supervisor of Fisheries for British Columbia
(Federal Government).
Mottishaw, J. S., Forester for Bloedel, Stewart & Welch.
Muir, James, Mission and District Board of Trade.
Mulholland, F. D., Canadian Society of Forest Engineers.
Murray, S. K., Chairman of the Salmon Canners Operating Committee of
Vancouver.
Nichols, W. K., Secretary, Timber Preservers, Limited; Canada Creosoting
Company, Limited.
O'Brien, G. W., Vice-President, Powell River Pulp and Paper Company.
Orchard, C. D., Deputy Minister of Forests;   Chief Forester.
Osborne, E. F., Logger.
Palmer, E. J., Managing Director of the J. R. Morgan Company, Limited.
Palmer, J. D., Cattle Producer.
Palmer, W. F., District " D " Central Farmers' Institute.
Parlow, A. H., District Forester for the Kamloops Forest District.
Patterson, A. M., Mayor of Prince George. Q 194 BRITISH COLUMBIA.
Peatt, E. V., Logger.
Penfold, D. K., Engineer of the Water Rights Branch, Kelowna.
Perrin, Charles, Forest Ranger.
Perry, George, Manager for the Summerland Box Company.
Phillips, W. C, Forester, British Columbia Forest Service.
Popoff, Mrs. E. D., Slocan City Women's Institute.
Popplewell, Henry, Secretary-Treasurer of the Revelstoke Farmers' Institute.
Proppe, Leonard, Northern Interior Lumbermen's Association.
Prebble, Malcolm L., Forest Entomology Officer in Charge of the Coastal
District of British Columbia.
Prowse, E. W., President, Vernon and District Fish, Game, and Forest
Protective Association.
Pritchett, H. J., President, District No. 1, International Woodworkers of
America.
Raphael, G. S., Secretary-Manager, Consolidated Red Cedar Shingle Association; Secretary, Red Cedar Shingle Association of Canada, British
Columbia Division.
Renwick, J. H., Supervisor for Wood Fuel Control.
Robson, J. G., Timberlands Lumber Company; Chairman of the Trade Extension Committee of the British Columbia Lumber and Shingle Manufacturers' Association.
Robson, E. L., Logger.
Rodgers, L. C, Logger.
Rodgers, N. S., Oregon State Forester.
Rolston, Tillie J., Member of the Vancouver Parks Board.
Rotter, F. R., Rotter Lumber Company.
Rowebottom, E. G., Deputy Minister of Trade and Industry; Tourist Trade
Bureau.
Scott, L. G., Building Contractor.
Segur, Vincent, Member of the Provincial Legislature.
Sewell, R. R. F., Secretary of the Union of British Columbia Municipalities.
Shearer, F. J., President of the Prince George Board of Trade.
Shipmaker, Henry R., Farmer and part-time Logger.
Simpson, Stanley M., Manager of S. M. Simpson, Limited.
Skelton, R. J., Mayor of the City of Salmon Arm.
Smith, Albert, President of the Meridian Heights Farmers' Institute; Councillor in the District of Port Coquitlam.
Smith, Alfred B., Secretary, Central Farmers' Institute, District No. 1.
Smith, Eustace, Timber-cruiser.
Smith, C. C, Smith and Osberg, Limited.
Smith, S. G., Vice-President, Bloedel, Stewart & Welch, Limited.
Stafford, H. D., Prince George Junior Chamber of Commerce.
Stevens, H. H., President, British Columbia Natural Resources Conservation
League.
Stevens, Thomas, Chartered Accountant, Price, Waterhouse & Company.
Stone, C, President, Hillcrest Lumber Company, Limited.
Strom, Lars E., Northern Interior Lumbermen's Association.
Strother, James G., Vice-President of the Interior Lumbermen's Association;
Chairman of the Interior Box Manufacturers' Association.
Sutton, Frederick N., Director of the Cariboo Cattlemen's Association.
Swanson, R. W., Swanson Lumber Company, Limited.
Sweeney, Michael L., President, Vancouver Tourist Association.
Tait, J. F., Supervisor of Fisheries, District No. 3, British Columbia, for the
Dominion Government.
Tassie, G. C, Manager and Secretary of the Vernon Irrigation District.
Thacker, T. L., Retired Rancher and Accountant.
Tierman, C. D., Assistant District Forester for Vancouver Forest District. FOREST INQUIRY. Q 195
Toombs, Gordon, President, British Columbia Interior Fish, Game, and
Forest Protection Society.
Turnley, Francis Ronald, Writer.
Turner, Harry, Kamloops Lumber Company—Interior Lumber Manufacturers' Association.
Varcoe, Clifford, District Forest Engineer for the District of Kamloops.
Vilstrop, Alger, Civil Engineer, British Columbia Electric Railway Company.
Waldie, William, William Waldie & Sons, Limited.
Wallis, J. R., Fernie Board of Trade.
Walton, G. H., Lumberman.
Watson, C. W., Coldstream Municipality.
Welch, H. J., President of the Truck Loggers' Association; Olympic Logging
Company, Limited.
Webber, H. G., Malahat Board of Trade.
Wellburn, G. E., President and Manager, Wellburn Timbers, Limited.
Westaway, Cyril, Prince George Rod and Gun Club.
Wilkinson, Thomas, Chairman, British Columbia Interior Vegetable Marketing Board.
Wilson, John H., Peachland Municipality; Peachland Rod and Gun Club;
Peachland Fruit-growers' Association.
Wimster, Herbert M., Commissioner of Parks.
Wood, John R., Cranbrook Farmers' Institute.
Wright, H. N., Deputy Minister of Finance, Provincial Government.
Whyte, R. S., Westminster Shook Mills; Mohawk Lumber Company.
Young, J. A., Vice-President and Treasurer, Pacific Mills, Limited.
VICTORIA,   B.C. :
Printed by Ciiahles F. Banfield, Printer to the King's Most Excellent Majesty.
1945.
2M-1145-9568     

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