The Birmingham age-herald., 1908-10-15
 QUESTION RAISED itract With Foreign Gorern- : ment a Secret THE PULP INVESTIGATION Minnesota and Ontario Power Com pany Have Contract for Spruce
 Stumpage With Canadian
 Government.
! HE PULP INVESTIGATION

Minneapolis, october 14.-whether the United States government had the power to extract the secrets of an agreement of the Canadian government with citizen of the United States camel very near being demonstrated here today at the hearing presided over by Congressman James k. Mann, chairman of the select congress sional committee appointed to investigate the workings of the so-called paper trust. This feature of the paper industry has as it's object to develop the amount of spruce timber growing in northern Minne- sota and ascertaining how long it will continue to be a source of supply to the paper mills, not alone of Minnesota, but Wisconsin, it having been developed at other hearings that much of the pulp wood used In the Wisconsin mills was shipped from Minnesota.
 The first witness at the morning session was F. J. Kline, superintendent of the logging department of the T. B. Walker lumber interests MT. Kline was allowed at the start to tell in narrative manner something as to forest conditions in Min nesota and in particular as to spruce.
 Speaking from the standpoint of lum- ber man, and not a papermaker, he said { t there was very little spruce in north- ern Minnesota.
 When asked as to his views as to the future supply of lumber in Minnesota, MT. Kline said there was lots of white pine left in all parts of northern Minnesota.
 It was during the examination of MT. Edward w. Backus, manager of the Min nesota and Ontario Power company, that the international incident appeared
 Backus on Stand.
 .;I.I ing plant at Rainey river part of which is now in operation, with a capacity of 200 tons of news print paper day. One of the mills is located on the American side of the Rainey river, the other on the Canadian side On the Canadian side he said they ground the pulp out of the crown lands timber for the American mills. This avoided the payment of s1. 66 per ton duty He described in detail the different kinds of trees on the lands.
 MT. Baclfus said that country was so large up there that if it were well tim- bered there would be enough to supply the United States for 25 years.
 We have 100000 acres on the north divide up there," he said. "When I say well timbered I say it advisedly'
 q think we have plenty of spruce on the American side" he said in reply to question on that subject.
 "If you have, why don't you do your grinding in the United States?"
 We intend to have a grinding mill on both sides eventually" he replied
 What terms do you make with the Canadian government to get the right to cut timber on crown lands?
 Make a Contract.
 .sWe make a contract It charges us 40 cents a cord for stumpage. Most of the concessions are granted for develop ing water power and plants for 2l years, renewable, of course"
 Renewable at what rate?'
 'At 40 cents.
 "Do they agree to renew-renew the contract?"
 MT. Backus referred to the necessity of having a permit from the government to do business and Mir. Mann asked 1T he had one.
 q might say no, and yes
 .sYou might say, but what do you say?" demanded MT Mann.
 'I don't care to say" came the answer very firmly
 eve have the right to compel an an- swer. but do not wish to enforce our powers unless necessary.'
 ..I don't believe you have the power to make public our affairs with a tor- eign government.
 Here the subject was dropped. llttle later MT. Mann asked MT. Backus if he had made any estimate. of the tlmper ad iacent 10 his plant. MT. Backus objected to making the information public, saying: '.We don't want to spend many years gathering information at the expenditure of much money for the benefit of our competitors"
 MT. Mann insisted. and the witness said:
 ssWeIl. our estimate of spruce in Minne- sota within the area of the land shown in the map in the Rainey river basin is il ,175.OOO cords of spruce and probably double the amount of poplar, and one half that amount of balsam besides jack pine which they use occasionally.
 .'Ths map shows three counties in Minnesota covered by your estimate, how much is there on the Canadian side?'
 Mot quite as much, it's a little more burned over"