Exchange of school lands.

in connection with the said sections, or any part of them: Provided that any person who is proved to the satisfaction of the Minister to have bona fide settled and made improvements upon any such section before the commencement of the survey thereof, may be granted an entry for a homestead for the land so occupied by him, not in excess of a quarter-section, and may be allowed to pre-empt an additional quarter-section of ordinary Dominion lands, other than school lands, if there is any such land available adjoining the quarter-section of school land for which he enters, under the provisions of section 27 of this Act; but an area of available land equal to that which may be entered for as a homestead shall be set apart as school lands, and notice thereof shall be published in The Canada Gazette.

2. Notwithstanding anything in this Act, the Governor in Council may authorize the Minister to include in any block of land sold or to be sold to any person for the purpose of irrigation, or in any lands which have been or which may be set aside for the purpose of an Indian or other public reserve, or have been or may be reserved for any other purpose which the Minister considers to be in the public interest, lands which under the provisions of this Act are school lands, or lands which upon survey will become school lands; but no such block of lands so sold or to be sold for the purpose of irrigation, or lands so set aside and reserved or to be set aside and reserved for any of the purposes aforesaid, shall include school lands, or lands which upon survey shall become school lands, until other Dominion lands of equal area and value, as nearly as may be, have been selected in lieu thereof; and when other Dominion lands have been so selected and have been designated by the Minister as "school lands" they shall thereafter be and become school lands and be dealt with in the same manner as ordinary school lands are dealt with under the provisions of this Act.

Provided that if it is established to the satisfaction of the Minister, either by report or order of the Lieutenant Governor in Council for the province in which any section, half-section or quarter-section of school lands is situate, or by the request in writing over the signature of the Minister or Deputy Minister of the Department which has charge of education in such province, that it is desirable to take or reserve out of such section, halfsection or quarter-section of school lands a small portion thereof as a site for a school and for purposes properly connected therewith, the Minister may, forthwith, sell to the board of school trustees for the district for which the same is required, at a minimum price of ten dollars per acre, such portion of school lands, in no case to exceed an area of four acres, which must front on a road allowance, at such price as he may consider fair and reasonable, and may forthwith, upon payment of such price, cause letters patent to be issued for the portion of school lands so required as a site for a school and for purposes properly connected therewith.

40. All sales of school lands shall be by public auction, and Sale by an upset price shall be fixed, from time to time, by the Governor auction. public in Council; but in no case shall such lands be put up at an upset price less than the fair value of corresponding unoccupied lands in the township in which they are situate.

41. Except as hereinafter provided, at least one-tenth of Terms of the purchase price of school lands shall be paid in cash at the payment. time of sale, and the balance in nine equal consecutive annual instalments, with interest at the rate of five per cent per annum, which interest shall be paid with each instalment on the balance thereof from time to time remaining unpaid: Provided that, if the Minister considers that it will further the purposes for which school lands have been set apart under the provisions of this Act, he may dispose of any section or part of a section of school lands in legal subdivisions or in smaller subdivisions, or in town lots, into which he is hereby empowered to have any section or part of a section of school lands laid out, surveyed and shown on plan of survey; but he shall require that at least one-fifth of the purchase price thereof shall be paid in cash at the time of sale, and the balance in four equal consecutive annual instalments, with interest at the rate herein fixed and payable as herein specified.

moneys.

42. All moneys from time to time realized from the sale Investment of school lands shall be invested in securities of Canada to of purchase form a school fund, and the interest arising therefrom, after deducting the cost of management, shall be paid annually to the government of the province within which such lands are situate, towards the support of schools organized and carried on in accordance with the law of such province; and the moneys so paid shall be distributed for that purpose by the said government in such manner as it deems expedient.

Rights under Agreement of Sale or under Lease.

purchaser

43. A receipt for a payment on account of the sale or lease of Rights of land shall, unless the sale or lease has been forfeited, revoked or or lessee. cancelled, entitle the person to whom it was issued, to take, occupy and use the land described in the receipt and to hold possession thereof to the exclusion of any other person, and to bring and maintain actions for trespass committed on the said land; and the land shall not be liable to be taken in execution before the issue of letters patent therefor: Provided that occupancy, use and possession of such land shall be subject to the conditions of the sale or lease, and to the provisions of this Act or of any other Act affecting it or of any regulation made thereunder.

2. The sale or lease of land as agricultural, grazing, hay or Minerals. marsh land, or of land for or in connection with irrigation, shall

Water.

Certain

sections to be Hudson's Bay Co.'s lands.

In fractional townships.

Selection

instead of land already settled.

not convey any right to the salt, coal, petroleum, natural gas, gold, silver, copper, iron or other mineral: nor shall any sale, purchase or lease of land as agricultural, grazing, hay, marsh or mineral land or land for or in connection with irrigation, convey, unless it is expressly conveyed, any exclusive or other property or interest in, or any exclusive right or privilege with respect to, any lake, river, stream, or other body of water within or bordering on or passing through the land.

Hudson's Bay Company's Lands.

44. In that portion of the territory surrendered to the Crown by the Hudson's Bay Company, which in the deed of surrender is described as being bounded "on the south by the United States boundary, on the west by the Rocky Mountains, on the north by the Northern branch of the Saskatchewan River, on the cast by Lake Winnipeg, the Lake of the Woods and the waters connecting them," every fifth township, namely, those townships numbered five, ten, fifteen, twenty, twenty-five, thirty, thirty-five, forty, forty-five, fifty, and so on in regular succession between the said southern and northern boundaries of the said territory, the whole of sections numbered eight and twenty-six, and in each and every of the other townships in the said territory, the whole of section numbered eight. and the south half and north-west quarter of section numbered twenty-six, except in the cases hereinafter provided for, shall be known and designated as the Hudson's Bay Company's lands: Provided that in the case of any township abutting on the northern bank of the Northern Branch of the Saskatchewan River, the company, as provided in such deed of surrender, may take its one-twentieth of any such township which shall not extend more than five miles inland from the river, but only in exchange for an equal quantity of lands to which the company is entitled and which abut on the southern bank of such river.

45. The company's one-twentieth of the lands in fractional townships shall be satisfied out of one or other or both, as the case may be, of the sections numbered eight and twenty-six as above, in such fractional townships, and the allotment thereof shall be effected by the Minister and the said company, or by some person by both of them duly authorized.

46. If, when the survey of a township is effected, the sections so allotted, or any of them. or any portion of them, are found to have been bona fide settled on, the company may, if it foregoes its right to the sections settled upon as aforesaid, or to any one or more of such sections, select a quantity of land equal to that so settled on, and in lieu thereof, from any lands then unoccupied.

timber

47. The lands to which the company is entitled, as in this Hudson's Act hereinbefore provided, which are situate in any township lands not Bay Co.'s withdrawn from settlement and sale and held as timber lands included in or as a forest reserve, shall not be included in any timber limit limits. or berth, or in such forest reserve, but shall be the property of the company.

limits
lands.

timber

48. One-twentieth of the revenue derived from any timber Revenue berths in any unsurveyed portion of the territory described in from in section 44 of this Act shall be annually accounted for and paid unsurveyed to the company until the said territory is surveyed in whole or in part into townships, when such accounting for and payment shall wholly cease or be diminished as the townships are surveyed and the company receives its one-twentieth interest in the lands in such townships out of sections eight and twenty-six as herein provided.

found

49. If the said sections, or either of them, when surveyed as As to lands aforesaid, prove to have been denuded of timber by a licensee, denuded of to the extent of one-half or more, the company shall not be timber. bound to accept such section or sections so denuded, and shall be entitled to select a section or sections of an equal extent, in lieu thereof, from any unoccupied lands in the township.

to pass to

50. As townships are surveyed, and the respective surveys Title to lands thereof are confirmed, or as townships or parts of townships are Hudson's set apart and reserved from sale as timber lands, the Governor Bay Co. of the company shall be duly notified thereof by the Minister, and thereupon this Act shall operate to pass the title in fee simple in the sections or three-quarter parts of sections to which the company is entitled as aforesaid, and to vest them in the company, without the issue of letters patent for such lands; and as regards the lands set apart by allotment, and those selected to satisfy the one-twentieth, as hereinbefore provided, returns thereof shall be made in due course by the local agent or agents, to the Minister, and letters patent shall issue therefor accordingly.

DISPOSAL OF TIMBER.

Timber Berths.

51. The Governor in Council may make regulations for the Regulations disposal by public competition of the right to cut timber on for disposal. berths to be defined in the public notice of such competition: Provided that (a) no berth shall exceed an area of twenty-five square miles; (b) no berth shall be awarded except to the person who offers the highest bonus or bid therefor; and (c) no offer by tender shall be accepted unless accompanied by the full amount of the bonus.

Issue of license.

Duration of license.

Further conditions of license.

Erection of saw mills.

52. The person to whom a timber berth is awarded under the next preceding section shall be granted a license therefor, which license shall describe the land upon which the timber may be cut, the kind of timber to be.cut, and the dimension thereof, and shall, during its continuance, vest in the licensee, subject to the conditions mentioned in the license, all rights of property whatsoever in all trees, timber, lumber or other products of timber which he is entitled by the license to cut and which have been cut within the limits of the berth during the continuance thereof, whether such trees, timber, lumber or other products are cut by consent of the licensee or by any other person without his consent, and shall vest in the licensee, as against any person other than the Crown in the right of the Dominion, subject to the conditions mentioned in the license, all right of property whatsoever in all trees, timber, lumber and other products of timber cut within the limits of the berth by any other person without his consent; and such license shall entitle the licensee to seize in replevin, revendication or otherwise, as his property, timber of any kind cut within the limits of the berth where it is found in the possession of any unauthorized person, and also to bring any action or suit against any person unlawfully in possession of such timber, and to prosecute all persons cutting timber of any kind in trespass, or entering without authority upon the berth covered by the license, to conviction and punishment, and to recover damages, if any; and all proceedings pending at the expiration of any such license may be continued and completed as if the license had not expired.

53. The license shall be for a term not exceeding one year, but shall be renewable from year to year while there is on the berth timber of the kind and dimension described in the license, in sufficient quantity to make it commercially valuable, such renewal being subject to the payment of such dues and to such terms and conditions as are fixed by the regulations in force at the time the renewal is made. The Minister shall be the judge as to whether the terms and conditions of the license and the provisions of this Act and of the regulations made hereunder respecting timber berths have been fulfilled.

54. The license shall, in addition to such other provisions as are contained in the regulations or in the conditions under which the berth was disposed of, contain provisions binding the licensee

(a) to erect and have in operation in connection with the berth, within one year from the date upon which he is ordered so to do by the Minister, a saw mill or saw mills capable of cutting in twenty-four hours one thousand feet board measure for every two and a half square miles of the berth, and to keep such mill or mills in operation for at least six months in each year of the continuance of his license;