When the Fraser River Syndicate went into receivership, hopes for developing a pulp mill industry evaporated. The investors were businessmen based in Quebec with the financial capability to bring the project to fruition. The original proposal was to produce 100 tons per day of kraft pulp and 125,000 board feet of lumber per day in the sawmill. By the early 1930s, with one of the principals ill and another deceased, the company was in trouble. After serious drops in prices for pulp products and lumber occurred, the planned mills were no longer financially viable. Another three decades would elapse before other substantial investors came forward.
The Depression caused a drop in demand for wood. Prices plummeted. In 1932, production dropped to its lowest in the history of Prince George. Only fifteen million board feet were produced that year.
On November 3, the Prince George telephone system was connected to the world beyond the local network. Before 1932, communication with isolated areas was available only by radio-telephone. That service was operated from a building on Fourth Avenue from 9 a.m. to 6 p.m. daily.