Wayagamack was successful until the Great Depression when the paper market collapsed. The island property was taken over by Consolidated Paper Corporation Limited in 1931, but they showed little interest in it and put it up for sale. Offers came from Canadian, American, British, French and Belgian parties. In July 1937, an offer was received from a consortium of Dutch and German capitalists who intended to build a sulphite mill and wanted a steady supply of pulpwood and access to Canadian capital. In the autumn of that year, a team of German surveyors travelled to the island to examine its timber and export potential. When this story broke in the "Montreal Gazette" of 2 December 1937, it caused an immediate controversy since the story claimed that the survey team was really made up of Adolf Hitler's agents and that most were naval, military and fortifications experts. Despite the substantial offer, the promise of thousands of new jobs, and the fact that there were no legal methods to block the sale, the suspicions remained. A committee was set up to investigate the affair but concluded that "there was no evidence to indicate that the project has other than a commercial purpose". When the deadline to purchase the island passed on 15 September 1938, the offer expired and controversy died out.