The Logging Industry in the 1930s

Background

Ever since Newfoundland was first discovered, the economy was mainly based on fishing. When the fishery failed, all Newfoundlanders were hurt. In the late 1800s Newfoundland's leaders wanted to see new kinds of work in Newfoundland. Most of the island was covered with thick forests. Maybe it would be a good idea to bring outside businesses into the country to start logging. The government decided to make it easy for these foreign companies to move in and cut Newfoundland's forests. Even today governments often do the same thing. Companies are sometimes given "tax breaks." This means that they do not have to pay taxes for a number of years. Governments hope that this will create jobs.

By the 1930s there were two big pulp and paper companies operating in Newfoundland: the Anglo-Newfoundland Development Company (usually called the A.N.D. Co.), and the International Power and Paper Company (usually called the I.P.P. Co.). The A.N.D. Co. was based in Grand Falls; the I.P.P. Co. was based in Corner Brook and also had a power plant in Deer Lake. Neither of these companies were owned by Newfoundlanders. The A.N.D. Co. was owned by people in Britain, the I.P.P. Co. was owned by people in New York. Both companies were given a very good deal by the Newfoundland government. They paid no taxes. They could cut as many trees as they wanted, almost anywhere. Sometimes as many as 9000 loggers worked for these companies.

Most of the wood cut in Newfoundland in the 1930s was spruce and fir. The same is true today. The wood was used to make pulp for paper making, especially newsprint. In fact, the A.N.D. Co. was started by the Harmsworth family of Britain who also owned the Daily Mail, one of Britain's biggest newspapers.⁴