Evening star., 1924-01-09
BITTER FIGHT NEAR
OVER CANADIAN OIL
Hudson Bay Company Aroused by
Law Passed in Alberta on Ex-
plotting Rights.
BIG LUMBER YEAR AHEAD
Oregon and Washington States to
Lead in Production.
BY j. c. ROYLE.

Special Dispatch to The Star.
NEW YORK January O. Recent ac-
ton of the Alberta, Canada, Legislature
may result in a bitter war for suprem-
acy in the oil markets of Canada and
of England itself. The Hudson Bay
Company, the oldest corporation in
existence and one of the greatest land
holders in the entire world, has made
grants to exploit its Canadian properties
in. Alberta for oil to certain outside in
terests. Success in this exploitation,
even in moderate degree, would en-
danger the hold on the northern mar
kets possessed at present by the Inn
perial Oil OF Canada, Inc, known as
one of the Standard Oil group and con-
trolled in large PARTLY American capi-
talists.
The Alberta legislatures part in the
situation consisted in the passing of a
law providing that companies owning
rights to subsoil products on their
lands must exploit them, pay heavy
taxes or surrender them to the province.
The Hudson Bay Company has
fought this regulation vigorously, de-
claring that it was confiScatory. Eff
forts have been made to 4fave the
Canadian federal government inter
vene to make the Alberta law non
effective. SO far the federal author
tiles have shown no indication of
taking such steps and reports from
Ottawa indicate that interference is
improbable.
Firm Has Tremendous Holdings.
Some idea of the tremendous hold
tngs of the Hudson Bay Company
l.A Jrli ir.a 10 T.n a
company has title to one and three
quarters sections out of each thirty
six sections of the western Canadian
townships. and not only has title
to the land, but also to the minerals
which lie beneath it.
These rights which are involved in
the recent oil concessions, are re-
garded as extremely valuable and
biologists express little double that
prorper exploration Will result in the
discovery of valuable oil deposits.
The outcome of the struggle will
depend, the. experts say, on the To-
cation of the new deposits with ref
erence TO the markets, the cost OF
and the financial strength which the
Hudson Bay concessionaries can
muster.
Large Sums for Lumber.
Extremely large sums will be in
vested during the coming year in
Canadian timber operations in the
northwest. but this expansion Will
he even more noticea BILE in Oregon
and Washington than in the Canadian
forests. Although the year is less
than ten days old, bonds for more
than S2.000.nn0 have been ftoated to
provide funds for increased activity
in timber. logging and sawmill in
dustrieS in the Puget Sound region.
These issues are believed to be only
the opening wedge to greater finan-
cial activities in the northwestern
woods. The success of these under
ta!;ings is based on the fact that the
mills reporting to the West Coast
Lumbermen's Associat ton. which ac-
count for about IS per cent of the
western Oregon and Washington
$4,000 board feet last year. as COM
pared with 4.SS7.742.600 in 1922.
Lumber Output in West.
There is little doubt that Oregon
@nd Washington will produce more
1han one fourth of all the lumber of
;the United States this year. The
Panama canal has opened the Allan
tic coast markets to Pacific coast
lumber of medium grades. Formerly
only the higher grades could stand
tthe freight rates to extreme eastern
mark cts. Now the lumber can be
shipped through the canal, and re-
distributed from Atlantic ports over
500 miles into the interior before the
parity with rail freight rates is reach
ed. The extraordinary demand from
japan has by no means been fillod and
the new mills of Oregon will be kept
busy as soon as they can be finished.
The new plant of the Oregon
American Company at VERONA Will
add 250,000 feet a day to production.
COL G. Fl. Kelly and his associates
will cut 5O,O00.000 feet year in their
new plant at Westfir. The Herrick
Company and r. a. Booth and his as
sociates are expected to erect new
mills at Burns and Prineville, re-
spectiyely. In addition q number of
short railroads which will tap new
timber country are projected. Sales
of standing timber in Oregon in the
last two years have aggregated $34,-
100000. Rapid progress is being made
on thefplant of the Long Bell Lumber
Company at Long View.