Are these cuts all the way through the bark of the tree? If the cambium is showing, this may not be a good sign. However, as a tree grows, it will naturally break its bark to allow for expansion of the trunk within. Tree bark, especially bark with heavy fissures in it, makes a perfect home for many insects, naturally. Certain types of scales can be white. I really don't know what it is though. A picture of the problem would help, but you said you already picked whatever it is off. Can you take a macro photograph of the little critters and post it here?

Thanks for replying. The cuts do penetrate the entire layer of bark. I cannot take a photo because I threw the eggs out in a fit of rage. I can assure that they were nothing common. I was thinking they may be the product of some kind of weavel or beatle but who knows. The tree is healing up now but I worry they will be back. Thanks again for replying.

This is probably a silly question, but is there any way cicadas could have had access to your tree recently? That sounds eerily like cicadas to me. They're equipped with an odd slicing apparatus, which they use to cut slits into twigs and branches (a thin tree trunk like you describe is a prime target), into which they deposit their tiny, white, pencil-like eggs. I wish you did have a photo, because then I could say without a doubt whether it's cicadas or not. Follow the link here and you'll see what I mean. The bark has been scraped away by the photographer so you can see the eggs/slits better.

Here is a link that might be useful: {{gwi:17103}}

You are right on the money with that "silly question". I followed the link and that is definitely it. We have lots of cacadas in toronto but I do not usually see them venturing into my back yard. I am glad I pulled those eggs out because lore has it that the larva leap groundward after hatching and spend the next 3 - 17 yrs munching on roots. That said, I am a bit guilty I killed these insects that obviously have a hard time with survival. Thanks again, I never would have found that on google.

No problem at all! I guess all that time I spent studying cicadas actually paid off... :D It's good you got rid of the eggs, though. Your little tree's root system wouldn't have been able to handle all those cicadas. Put some cut paste over the scars, if you can.