in the lumber trade who took advantage of their position to hamper the extension of British Columbia's trade by making discriminating rates against its leading ports to the extent of 2s. 6d. per 1,000 feet in comparison with the leading ports on Puget Sound." As this difference in freight had to be made up by the Provincial manufacturer to his customers through a reduction in price it was obvious that in the present keen competition the British Columbia industries. had to suffer in either profit or business.

Australia, he added, now took 63,000,000 feet of lumber from Washington, or the Puget Sound region, and would, no doubt, sooner take it from Canada if fitting transport and other arrangements were available. Mr. Tatlow believed that such a preference would be readily given-especially as the British Columbia timber was naturally of a slightly higher quality. The creation of a fleet of homemade and home-managed vessels was, however, essential. The measure now pending in the United States Congress for the promotion of American ship-building and shipping would make a discrimination so great as to capture all the Pacific trade for San Francisco and Puget Sound ports. The question should be taken up at once. "There would be difficulties to surmount in the inception of the industry in British Columbia; wages and supplies would be higher than south of the line, and it would be necessary to offer a substantial inducement to cause parties to embark in the business, and establish proper plants in the Province. This should take the form of a bonus per registered ton on the vessels built so that it would be available also for anyone inclined to take up the business of owning and operating vessels, and not merely to go to enrich a ship-building company."

Mr. Joseph Martin seconded the motion though he did not believe it would have any influence upon the Ottawa Government. The necessity for Canadian-built ships was becoming greater every day and he thought that the proposed construction of the Nicaraguan Canal made the necessity still more pressing. Mr. W. H. Hayward supported the motion and the Hon. Mr. Eberts stated that the Government was fully alive to the importance of the matter. They had pressed it upon the authorities at Ottawa and, meanwhile, he could assure the House that everything possible would be done to promote and support such an industry. Mr. H. B. Gilmour stated that one mill in British Columbia had received orders for 60,000,000 feet of lumber last season for which ships could not be obtained. Mr. R. Hall believed that for every dollar spent in this connection the people would receive 100 cents in return. The motion then passed unanimously.

Condition of the

Woollen

The woollen industry of Canada came up for frequent discussion during the Parliamentary Session and in the country generally. Speaking on March 21st, in the House of Commons, Mr. W. R. Brock referred to it as one of the largest industries in the country-"having millions of dollars invested in plant, machinery and buildings, having educated

Industry

thousands, I might say hundreds of thousands of the most respectable mechanics in this country, and having given employment to large numbers of people." Injury done to a woollen mill, he contended, was a hurt inflicted upon the whole local community. "My experience in a business career of 50 years in this country is that the best market is the market nearest your door."

Mr. G. A. Clare stated that the Preference upon British woollen goods "is ruining the second largest industry in Canada." In his riding there were six woollen mills and he knew actually that a continuance of the policy would entail great loss. And almost every constituency in Canada had, he believed, a mill or two within its bounds. It would either reduce wages or close up the factories, and was now driving people out of the country. He quoted in proof of this last statement from the Galt Reformer in which there appeared a letter from its Hespeler correspondent dated March 12th, which said: "Another grist of our people are pulling out eastward toward New York State, part of them having gone to-day. The spring exodus

bids fair to be a record breaker."

Speaking on March 26th Dr. Sproule drew further attention to this industry. He stated that there was a capital of about $25,000,000 invested in plant and machinery and other requirements of the business. Over 50,000 workingmen were employed in it and until lately good wages had been paid them. The output had represented an annual value of $30,000,000 but this would now probably be reduced by one-half. He read from letters which showed the discharge of many employees at Peterborough, Almonte and Hespeler, the closing down of mills and the emigration of workmen to the United States. He claimed that the Canadian workmen's wages were being reduced to the level of Lancashire in order to make competition possible.

Two days later, Mr. James Kendry, an experienced woollen manufacturer of high reputation, went into the matter at length. He spoke of seven mills which had recently discharged part of their hands and were liable to be shortly closed altogether. It was, he thought, a very serious question. "Of all the goods imported in 1900 under the Preferential tariff, about 30 per cent. were woollen goods." In round numbers about $7,000,000 worth of woollens were imported out of the whole $26,000,000. He declared that the North-West produced as fine a wool as there was in the world and that this policy injured the ranchman there as it did the cities and towns of the East. "I stand in this House as a Canadian and support Canadian interests. I was born and brought up in Canada, and I say that they have no right to give any other country a preference to the detriment of our own people." He pointed out that injury to this interest affected the subsidies and bonuses and exemptions from taxation which had been given in good faith by various Canadian towns.

Mr. Kendry went on to say that the plant for a mill which cost $130,000 in Canada would only cost $100,000 in England because of duty and freight here. Coal cost more in Canada, interest on money

was higher and labour cost more so that the handicap to the capitalist was pretty severe before the Preference was given. As to labour, Canadian workmen receive from 50 to 75 per cent. more than their brethren in England. "I believe that it is impossible for us to reduce our wages in Canada because we have a high Protectionist country to the south of us, and high-class labour will not stay in Canada unless it is paid about the current wages in the United States." The moral seemed to be that many, if not most, of the mills, would have to close up.

Mr. Ralph Smith followed, and as a labour member, took strong ground against some of Mr. Kendry's contentions. He claimed that many of these mills had been running night and day right up to the present time, that they had been employing an increased number of hands, improving their machinery out of earnings and making large profits for their owners. Mr. Kendry here interjected a denial and stated that his mill at Auburn, which had been referred to, was actually closed for lack of orders. The Hon. Wm. Ross took the same position as Mr. Smith and declared that there was still a protection of from 21 to 23 per cent. on woollen goods. "If the woollen mills cannot thrive and prosper under such protection as that it would be better for the country to let them go down." The Maritime Provinces from which he came did not want to be " compelled to buy their ready-made clothing from the shoddy manufacturers of Ontario."

In connection with this subject, Mr. H. Bourassa asked why it was that the cotton manufacturers were so well satisfied with the tariff and why, previous to the preference being granted, the cotton duties had been raised? It was certainly unfair to the woollen industry. Mr. Henderson, of Halton, declared that in his County the condition of the industry was most serious. The increase in Canadian importation of woollen goods had been 22 per cent. in the years 1899 and 1900. Where would their mills be in five years at this rate? Wages would have to be cut down and to this the workmen would never consent. Emigration for the workmen and disaster to the mills would be the result. Mr. R. A. Pringle, of Cornwall, stated that in his town there was one of the largest woollen factories in Canada and he understood that the condition of the industry was now most precarious. He had been urged to press for some relief from the competition created by the Preference.

Mr. Brock brought up this subject again on May 15th. He stated that the woollen manufacturers of Yorkshire were this year selling their goods at slaughter prices and that the Canadian industry could not much longer stand the pressure. At first the manufacturers here had not understood the full effect of the Preference though they had filled their mills with orders as a precautionary measure. This kept them going for a couple of years" but gradually the Preference began to tell and, I repeat, the woollen mills of this country are absolutely ruined." Of six mills of which he was President four had lost heavily and two were only paying 11 per cent. on the investment. He renewed the statement that thousands of workmen were employed in this industry and were now being compelled to leave the country.

The Hon. Mr. Fielding here pointed out that the industry still had 23 per cent. protection against Great Britain and 35 per cent. against the rest of the world.

In the March number of Industrial Canada the report of the Tariff Committee of the Canndian Manufacturers' Association was made public and included some very strong references to the woollen industry and its condition. "The woollen manufactures are being subjected under the present tariff, which on the majority of goods imported is 25 per cent., to a competition that is paralyzing the industry in Canada. Machinery capable of producing over $2,000,000 worth of goods has ceased to be operated during the past seven years. The importation of foreign goods has largely increased and this increase is becoming more marked day by day so that the outlook for the future is most depressing. And, further, the competition comes mostly from a class of goods, of the lowest quality, which can be sold cheaper than the better-made Canadian woollens.

At the annual meeting of the Association in Montreal, on November 5th and 6th, various references were made to this question. The Tariff Committee-composed of Messrs. W. K. McNaught, J. R. Shaw, F. Nicholls, P. H. Burton, George H. Hees, A. E. Kemp, M.P., P. W. Ellis, J. F. Ellis, George E. Drummond and William McMasterreported that they had joined the woollen men's deputations in pressing strongly upon the Government the necessity of further protection; but without apparent result. Mr. C. J. Alexander, at one time President of the South of Scotland Chamber of Commerce, spoke at some length upon the subject. He favoured adequate protection to all Canadian industries. "I say the Preferential tariff has hit the woollen trade hardest of all. Other industries of Canada, say furniture, pianos, organs, agricultural implements, boots and shoes, may not have been so hit, but suppose a preference at 33 per cent. had been given to the United States, their greatest competitor, would it not have imperilled, if not extinguished their industries?"

During the course of the annual banquet of the Association, which was attended by the Premier and a number of leading politicians, various veiled illusions were made to the same subject. Writing to the Toronto Globe on October 3rd, Mr. T. A. Russell, Secretary of the Canadian Manufacturers' Association, referred to the claim that no great harm could have been done the industry because the import of woollen goods had only increased from $9,801,565 in 1900 to $9,944,805 in 1901. He stated that in these figures were included many items not properly classified and then claimed that the actual import of woollens had risen from $6,295,057 in 1897 to $8,965,360 in 1901-a total of $2,670,303 since the Preference had come into operation. Since 1895 machinery with a productive power of $2,750,000 had ceased to work, while nearly 30 per cent. of the present trade of Canadian woollen mills had been displaced during the past four years. At the annual meeting of the Manufacturers' Association on November 6th the following clause in the Tariff Committee's Report was unanimously adopted :

"That the Association endorse the request of the Woollen Manufacturers for a net tariff, after the reduction of the Preferential clause, of not less than 30 per cent. or its equivalent on all classes of woollen, worsted and knitted goods and carpets, and 20 per cent. net, or its equivalent on all classes of woollen and worsted yarns."

Development of the Wood Industry

The trade in lumber has always been an important industry to Canadians but it is only of late years that a substantial effort has been made to keep the product in the country as raw material for manufacture. This attempt on the part of Ontario, by the imposition of an export duty on pine saw-logs, cut upon Crown lands, has reduced the export of saw-logs from that Province but does not seem to have affected the total trade of the country. Of the partly manufactured products of wood-logs, lumber, square timber, and wood for pulp-the total Canadian export increased between 1891 and 1900 from $24,000,000 in round numbers to $28,000,000. The export of logs rose in the same period from $730,216 in 1891; $2,861,252 in 1894; $2,121,428 in 1897; $760,410 in 1900; to $1,055,551 in 1901. Yet, according to a table compiled for the Canadian Manufacturers' Association, and appearing in Industrial Canada for October, 1901, the export of pine sawlogs, cut on Crown lands in Ontario and exported to the United States, had decreased from 249,746,314 feet b. m. in 1896 to 219,026,825 feet in 1897; 157,000,000 feet in 1898; 75,000,000 feet in 1899; 13,513,917 feet in 1900; and 3,132,000 feet b. m. in 1901.

Meanwhile, however, the cut of timber on Crown lands had steadily increased from 527,529,985 feet b. m. in the winter of 1896-7 to 700,266,014 feet b. m. in the winter of 1899-1900. The result, so far as pine saw-logs were concerned, was that the timber is now being manufactured in Ontario. Within a couple of years new saw-mills were erected in large numbers-six of them having a combined capacity of 110,000,000 feet. Some of these and many older ones, which had resumed operations, were being run with American capital in Canada instead of being run on the other side of the line with Ontario logs. The trade in the more important products of the Canadian forest for 1901-raw material, manufactured product or only partly manufactured-may be seen from the following table compiled from the Report of the Department of Trade and Commerce: