Sir James Lougheed recognized that the licensees had a good claim in law. Their position was that if the power company attempted to interfere with their rights by flooding the land back of berth 507 they would apply for an injunction to prevent the operation of the dam. And the city of New Westminster itself was threatening proceedings if the company attempted logging operations contrary to the regulations. So that the whole question was in a state of threatened litigation and when the matter was drawn by the city of New Westminster to the attention of Sir James Lougheed he adjusted the difficulty, or rather attempted to adjust it, in the comprehensive report he submitted. But the fact is that he recognized that there was a claim strong enough to warrant him in recommending to council that an equal value of timber should be given to the licensees.