IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I 1.25 1128 M 2.2 I!: 1^ '""^ t^ 1.8 U IIIIII.6 V] <^ /}. A /. 'el V i? / s CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions Institut Canadian de microreproductions historiques 1980 Technical and Bibliographic Notes/Notes techniques et bibliographiques The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. D D D D D D □ 7 n D Coloured covers/ Couverture de couleur Covers damaged/ Couverture endommagde Covers restored and/or laminated/ Couverture restaurde et/ou pellicul^e Cover title missing/ Le titre de couverture manque Coloured maps/ Cartes g6ographiques en couleur Coloured ink (i.e. other than blue or black)/ Encre de couleur (i.e. autre que bleue ou noire) Coloured plates and/or illustrations/ Planches et/ou illustrations en couleur Bound with other material/ Reli6 avec d'autres documents Tight binding may cause shadows or distortion along interior margin/ La reliure serree peut causer de I'ombre ou de la distortion le long de la marge intdrieure Blank leaves added during restoration may appear within the text. Whenever possible, these have been omitted from filming/ M se peut que certaines pages blanches ajoutdes lors d'une restauration apparaissent dans le texte, mais, lorsque cela dtait possible, ces pages n'ont pas 6t6 film^es. Additional comments:/ Commentaires suppl6mentaires: L'Institut a microfilm^ le meilleur exemplaire qu'i! lui a 6t6 possible de se procurer. Les details de cet exemplaire qui sont peut-dtre uniques du point de vue bibliographique, qui peuvent modifier une image reproduite, ou qui peuvent exiger une modification dans la mdthode norma'e de filmage sont indiqu6s ci-dessous. J I I Coloured pages/ Pages de couleur Pages damaged/ Pages endommagdes Pages restored and/oi Pages restaurdes et/ou pellicul^es Pages discoloured, stained or foxei Pages d6color6es, tachet^es ou piqu^es Pages detached/ Pages d^tach^es I I Pages damaged/ [~~] Pages restored and/or laminated/ r~7 Pages discoloured, stained or foxed/ I I Pages detached/ □ Showthrough/ Transparence □ Quality of print varies/ Qualit^ in^gale de I'impression I I Comprend du materiel supplementaire Includes supplementary material/ Comprend du materiel ; Only edition available/ □ Only edition available/ Seule Edition disponible D Pages wholly or partially obscured by errata slips, tissues, etc., have been refilmed to ensure the best possible image/ Les pages totalement ou partiellement obscurcies par un feuillet d'errata, une pelure, etc., ont 6t6 film6es d nouveau de fa?on i obtenir la meilleure image possible. This item is filmed at the reduction ratio checked below/ Ce document est film* au taux de reduction indiqud ci-dessous. 10X 14X 18X 22X 26X 30X y 12X 16X 20X 24X 28X 32X The copy filmed here has been reproduced thanks to the generosity of: Harold Campbell Vaughan Memorial Library Acadia University L'exemplaire filmd fut reproduit grdce d la g^n^rosit^ de: Harold Campbell Vaughan Memorial Library Acadia University Tho images appearing here are the best quality possible considering the condition and legibility of the original copy and in keeping with the filming contract specifications. Les images suivantes ont 6t6 reproduites avec le plus grand soin, compte tenu de la condition et de la nettetd de l'exemplaire film6, et en conformity avec les conditions du contrat de filmage. Original copies in printed paper covers are filmed beginning with the front cover and ending on the last page with a printed or illustrated impres- sion, or the back cover when appropriate. All other original copies are filmed beginning on the first page with a printed or illustrated impres- sion, and ending on the last page with a printed or illustrated impression. Les exemplaires originaux dont la couverture en papier est imprim^e sont filmds en commenpant par Je premier plat et en terminant soit par la dernidre page qui comporte une empreinte d'impression ou d'illustration, soit par le second plat, selon le cas. Tous les autres exemplaires originaux sont film^s en commengant par la premiere page qui comporte une empreinte d'impression ou d'illustration et en terminant par la dernidre page qui comporte une telle empreinte. The last recorded frame on each microfiche shall contain the symbol — ^ (meaning "CON- TINUED"), or the symbol V (meaning "END"), whichever applies. Un des symboles suivants apparaitra sur la dernidre image de cheque microfiche, selon le cas: le symbole — •► signifie "A SUIVRE", le symbole V signifie "FIN". Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent dtre film6s d des taux de reduction diffSrents. Lorsque le document est trop grand pour Stre reproduit en un seul cliche, il est i\\m6 d partir de Tangle sup^rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images n^cessaire. Les diagrammes suivants illustrent la m^thode. 1 2 3 1 2 3 4 5 6 TH E> Coal Question THE WHITNEY SYNDICATE DISCUSSED. -ENDORSEMENT OF LEADING—.'® Miners, Bankers, Merchants, Lawyers, Newspapers \ and Statesnnen. The leading Conservatives of Nova Scotia give it their most cordial support, and openly* declare in its favor. The splendid results of the scheme upon the Mining Industries and Provincial Revenues of the Province. Printed at the "Times" office, Truro, N. S. -.» '^■ 1 .•■A. '\ ."^l I" ■"^^TtT'.'W^ WfS ^■..•.-.^.■' !. i'.ft ,\ • , THE COAL QUESTION. INTRODUCTORY. , ''* ^ Upon matteri relating to Dominion politics party lines arj pretty clearly drawn 'in this Province and formerly party lines were equally clearly defined in relation to Provincial natters. Of late years, however, there has been a steady tendency 4jn the part of the leading men of the Province to ignore party feelings in Provin- cial affairs. -The great object in the management of Provincial matters is to ob- |! tain an honest, economical and capable; (Jlovernment and the result of nearly 12 years experience has been to satisfy every reasonable m.in in Nova Scotia that the (xovernment led by Mr. Fielding to an exceptional degree fulfils the public wants in tlii.s regard. One of the most important matters ever dealt with by the Provincial author- ities aince Confederation has been in relation to the coal trade. Ever since the present Provin<>ial Grovernment has been in power it has been its steady aim to advance the mining i)idustrles of the Province and scarcely a session lias passed that some use- , ful meAsures in this regard have not been adopted. At the general election of 1882 the political party represented by the present Provincial (government had almost the unbroken hostility of the mining community. At the present time it receives the support of an ove^'whelniing u^ajority of those interested in mining matters in the Proviuoe. /,jv ,;:j;j-:^ *• The development of the coal trade is most important to Nova Scotia from two points of view. One is t!ie value of the industry as an industrial enterprise giv- ing employment to "he people and creating wealth. The other is its importance to the Provincial revenues. Therefore the government has been steadily aiming to develop this industry to the greatest possible degree. In 1892 the government en- tered into negotiations with wealthy capitalists in the New England States with the view of inducing them to come to Nova Scotia and invest largely in our coal mines. As long as our coal mines were being worked by companies with limited capital it was impossible to adopt methods whereby they could be able to compete /■ ^■>.- -> *■' 'K:; z THE COAL QUESTION. ▼ith coal fields in other sections of the coMtinent backed by millions. After lun.; negotiations with Mr. Henry M. Whitney and a nuniber of eminent a88ociates,includ ingSir Donald Smith, Mr. Hugh McLennan, Mr.W.C. VanHorne of the C. P. R., and other wealthy Canadians, an arrangement was entered into in relation to a certaii, number of coal mines in the County of Capo Breton which resulted in the pur chase of six or seven mines and .their union under the control of a compavr. backed by many millions of capital. Every possible safeguard was taken for t1,i protection of the public interests and a scheme which when carefully studied cdn. mended itself to all reasonable elas.ses in the comumnity was submitted to the Li^ islature in 1893 and adopted by an overwhelmitig majority in both branches. One would have imagined that a great scheme so important asthisandinvoli ing so much industrial advantage to the Province would have been free from par- tisan attack. Such, however, was not the case. Mr. Cahan, the leader^Aof the Op- position in the Hojise of Assembly, bitterly, factiously and in a most inoendiar\ spirit assailed the .scheme and kept up the agitation in the columns of his newspaper the Morning Herald. Not content with abusing the schema itself, when he failtJ to orevent its being ratified by the Legislature, he undertook to call in (juestion all mining titles in the Province which action if it had commanded any weight woultl have been most disastrous to our mining industries. Li the Provincial electitms which will shortly take place it is altogether likely thit Mr. Cahan and his as.soc- iates will undertake to appeal to th-; people in relation tj this coal syndicate. The object of this publication is to .show in a conclusive manner the gratify- ing indications of the capacity of the leading men of Nova Scotia to rise abovtt mere partisan considerdti')ns wh^n the real interests of the Province are at'- stake. When Mr. Cahan was making his violent upposido i to this measure the leadins? Conservatives of Halifax and of all parts of Nova Scotia were giving publtt? expression to the most emphatic indorsement of the schema. Sir John Thompson, in the House of Commons of Canada, Mr. T. K. Kenny, M. P. and 3Ir. David Mc- Keen, M. P., Sir Donald Smith, M. P., all o.' them most conspicuous leader-^ oi' the t!!onservative party, m')st emphatically indorsed the Whitney scheme as one oC great advantage to the Province, as well as to tlie D )njiniun generally. Tiie re- presentative bankers, the mo.st prominent Conservative business men in the City of Halifax and leading representative Conservatives in the t>ut'ylng counties came forward with very great public spirit and expr 's-ed their great appreciation of the scheme and their sense of the valuable services which th? jr^'sent (loveriiment had rendered to the country. This publication contiins a r )sunje of the utterances of the leading politiciaas, bankers.marchants, manu.'icturer^, miners, newspapers, etc. of the Province, most of them belonging to the Con.servative party. We commend these opinions to the cir'ful consid-ritian of all thoughtful iftnd patriotic Nova Scotians. They demonstrate coaclusivcly that in the Provincial elections which are soon to take plate it is n )t a contest between tlte Liberal part j' ^d the ( te leadi . Cahi! ruuip »' *eople i )■-; . '..A i ■,■*..'■■ 4 "■■■ • ^ ,*H.j" rt;"--' :^vl -■■'-• THE COAL QUESTION. the Conservative party, but it is a contesfc between the Liberal Party and ic leading and respectable elements of the Conservative party against Mr. C. [. Cahan and the Morning Herald. The factious spirit which characterizes this imp of ward politicians is one which we know will be condemned by all good )ple in Nova Scotia and will result unquestionably in the overwhelming support the present Provincial administration. In addition to the views of leading men, mostly of the Con,servative party, ?hichthis paiuphlet contains there has also been added some data in regard to the jrogress of the Whitney Syndicate. The most sanguine expectations in respect of Ihe energy it would display in the prosecution of the coal mining industry have aeen more than reijlized and next .summer an enormous increase in the output of )al is assured. The facilities for handling have been completely revolutionized. Mie New England market bids fair to be opened and instead of a paltry million or two tons of coal we may expect to see many millions produced in the province. This [will not only be a source of great wealth to Nova Scotia, but will increase the Prov- lincial revenues enormously. When the present provincial government came into [power in 1882 the roy 'ty from mines amounted to about $108,000 a year. For the [cuiTcnt fiscal year the amount I'eceived will not be less than $250,0(^0 and a large j increase over this amount is almost certain to take place ; thus placing the Provin- cial finances on the most satisfactory basis that they have been since Confedera- tion; and enabling the government to provide more liberally for the vai-ious public services. ,-. .■•^ ,.-\ ,-./,..,. -r:. .,v:, ^•,,.::- One great consideration must be kept in mind and that is that the advertise- ment which the introduction of this large capital has given to the Province is like- ly to bear ample fruits in other directions. We have large iron interests in Nova Scotia and it is not at all unlikely that more millions will be introduced for the de- velopment of this iron industry before long and as a direct result of the introduc- tion of Mr. Whitney's capital and interest in coal. The duty of the hour beyond all question is for men having a stake in the welfare of Nova Scotia to rally in force around Mr. Fielding and his associates and to stamp out the factious and unpatriotic efforts of Mr. Cahan and the coterie of ward politiiiians, with no other aim than partisan prejudices, who surround him. «■ 33 Z (T^" ■fwl. <- 'y .;■*■■ .4' -'.■ >. '')' Endorsed by Mining Men. ■' ' David MacKeen, M. P.; ■- , one of the Dominion laenibevs of Cape 13retoii county, a leading supporter of the Conservative party, and a gentleman intimately connected with coal mining in Cape Breton in the double capacity of mini' owner and manager, gave his warnies support to the agreement entered into between the Provincial Government and the Dominion C )al Company as soon as its provisions were made known to him. In an interview, printed on January ii4th. 18i)3, he thus emphatically expressed timself in reply to the questions put to him ; •'What do you think of the scheme as affecting Cape Breton?"' was the first question. .C^.'/,,: '■''':^;.'-■'"'^:'"'•''^l'^"'^^ ' ^''"'\' '/■•■v'r-J'- ■ *■ I think it will be a good thing. There can be no doubt about it. It will be a good thing for Cape Breton, and any opposition can have no logical founda- tion." '' Will the syndicate bring about a large output ?" ^^,S'j; :.>; : ■ '^^.v^/ *• Undoubtedly. The output, in my opinion, will be increased wonderfully and men will be employed more steadily.' •' Then you think the operations will give employment to more men ?" *' The miners of Cape Breton will l)y large gainers beyond question. Employ- ment will be more steady. The idea that the syndicate propose to import foreign labor is too ridiculous for discussion. From what I know of Mr. Whitney he considers the Cape Breton miners worth 25 per cent, more than foreigners. We have lots of good men in C:ipe Breton and their opportunities for earning money •will bo vastly increased." " Will the building of the Louisburg railway prove a boon to Cape Breton county ?" '•' i'^ou have struck the strong point in Mr. Fielding's scheme. The people of the .southeni districts have lo iked fur this railway for years. Its coastruction and operation will be of material advantage to them, and perhaps this combination of the collieries and the shipment of coal to the eastern states are the only two things which will bring this about." ■Do you believe large quantities of coal can be shipped to the United States ?'' - I held the opinion that under the old order of affairs the shipment of any THE COAL QUESTION. 5 lg|^<^ Isnye introdue- n of capital for the develnpniont ot'o'ir industries could be considered too lonjjj. e public mu.st expect capital to be rea.son.-ibly protected. The o d leases had r>4 ar.s to run, and the extent o^the lease is not a matter for this generation to ' ther themselves about. •' What do you think of the 12^ oent.-^ roya'ty ?" ' • ' •■^' -■' ■ ' " I look upon this as au excellent barj;ain for the province, and one which wi I largely increa.se the revenue. 1 would-not care to mine coal and pay this lar;:t' roy- "ty, and I know of no m Miager in this'j'vvovince today who would voluntarily no-, pt such terms. The (lovernment could n years' lease. In answer to the question as to how the workingmen would be affected by , Ahe operations and plans of the the Company, Mr. Mitchell said : . " It can only better their condition. The new arrangement will increase their pay and give them steadier employment. Crt'^)e Breton miners need never fear for- , signers, for our local men are better in every way. The new syndicate can afford to pay higher wages, and I have expre.ssed this opinion to every miner I have met. jlIuBgarians and Italians could not live in C.ipe Breton. We htive had a foreign t.<'!^-ment introduced before and they proved a complete failure." On tins poiftt it will be seen that Mr. Mitchell agreed with Mr. McKeen^ as r.'did also Mr. Hugh D. McKcnzie, whose opinion will be found elsewhere. It is worthy of note that although the opponents of the bill tried to sound an ^Wm that the new Company would displace native workingmen by importing cheap and undesirable foreign labor, this view foujid no response from a single man who iiad any experience in coal mining in any part of Nova Scotia. The idea, like icverj other objection taken to the scheme, had no basis in reason, experience or , common sense. It is admitted all round that our miners are a superior class of in- ,'te11igent workmen, at all times the most profitable class to employ. They are with .very fevy, if any, exceptions good citizens, who respect the laws and with whom .^hen friction arises, as it sometimes does, between them and the managers a peace- jful adjustment can be reached when moderation and good sen&e prevail on both «des. To suppose, that any Company would displace such men and substitute for 8 THE COAL QUESTION. them Poles, Hungarians, Russians or Italians is to reach the climax or utter ab- surdity. Mr. Mitchell was asked if he thought the syndicate would inerense the out- put, and to this he replied : " I have no doubt of this. The Aiuerican market is almost unlimited, «nd I always believed that under proper arrangement we could place a large quantity of coal in that market. 1 have strong faith that our people will soon see uij opinions- verified. The American market should be our best market, and once our coal i.s introduced there I am satisfied it will suit the market and lead to large sales." Mr. Mitchell expressed himself strongly on the subject of the Louisburg rail- way. He said Cape Breton county would derive " immense advantages from the opening of the road," and, "we can now hope for a greatly enlarged coal trade in the winter season." In conclusion Mr. Mitchel said : "The Fielding government have made a bargain of which they may feel proud.. No mining man"^n this country can fairly find fault with any part of the arrangement. It has been a great advertisement for our country, and I am surprised at the , ridiculous criticisms I have read. I would look upoi> it as the greatest calamity that could possibly happen our country it by any means this syndicate was prevented froqi entering into our country and carrying out the proposed ideas. It would be the death blow to the introduction of foreign, capital in our island." Mr. Hugh D. MacKenzie, Tor many years Halifax agent for the Intercolonial Mining Company of Westville^ Pictou County, a gentleman largely acquainted with the coal trade in all its fea- tures, and recognized as a shrewd business man generally, expressed his opinion on the' syndicate scheme in an interview which appeared in the Moniing Chronicle of Feb. 2nd, 1893. It is fair to state that Mr. MacKenzie has always been identifi-- edwith the Conservative party, and therefore his cordial endorsement of the agree- ment, as being an "excellent one for the country generally," as well as for "the late proprietors and the present purchasers," was a frank admission that the Lib- eral adminstration which perfected and crystalized the measure into law is entitled^ to praise for their acj. It wiil also be .seen that Mr. MacKenzie teok up many of the objections urged by the party-blind faction which sought to defeat the enter- prise and answered them clearly and fully. " Mr. MacKenzie said in substance th«t in his opinion the scheme as^r as the present owners are concerned, is a capital one, because while some oi' the com- panies may have made money in certain years in the- past. v;oal mining generally has been unprofitable in Nova Scotia tmd Cape Breton to the ordinary stockholders of the mines. The owners of the different collieries interested are getting splen- did prices for their propertie.«, a price considerably better than they would brinf? under the old condition of affairs. There is nothing in the argument that the t ( THE COAL QUESTION. workman will be worse oiF under the new condition than that which hfis obtained hitherto. The nnners in Cape Breton, taking their whole year's work through. are not earning fabulous wages now, because they only get nine months' work iit the year, and three months' enforced idleness under present conditions mak^K their condition not absolutely anything to be envied. There would be no advan- tage in importing foreign labor to work the mines, as that experiment has been- tjried by several of the mining companies, and always with unsatisfactory results, *' With regard to the price of coal, it has been sold in the upper provinces for years past at prices which yielded no profit. The competition beiween the differ- ent companies was so keen, each individual company being so anxious to secure large contracts, that they cut prices to such an extent as to make the business very unprofifable. With fewer companies in the field this compitition will be largely done away with. In the past, owing to this competition, coal has been sold in Mon- treal as cheap as in local or home market. This is a hardly reasonable condition- of affairs. Under the business conditions which this scheme opens up it is possi- ble that large rail vay companies and gas companies may pay a little more for their' coal, but there would .still be competition enough between the Cape Breton mines owned and controlled by this company and the other mines in Nova Scotia to pre- * vent any unreasonable rates. "I do not," said Mr. MacKenzie, "take any stock in the monopoly howl which- has been raised by some of the opponents of this measure, because coal can be im- ported to-day from England or Scotland, if the duty were removed, at prices* that would make it a dangerous competitor in the Canadian market. This fact should be kept in mind, and it is not fair to overlook it. It takes the bottom out of the monopoly argument, if the cry can be given the dignity of an argument. I do not want to see the duty on coal removed, but the fact that the general government has the power to remove it ought to be a guarantee against monopolistic prices, "I think that Mr. Whitney takes a too sanguine view of the situation when he intimates his belief that the American duty will be removed from coal. There are very strong influences at work to preve;it this. If I thought he were absolute- ly right in his opAations in this particular I would say without hesitation that in my opinion he would have for his company one of the biggest things on earth, but outside of this possibility I look upon the enterprise as holding out the very best business prospects in supplying the Dominion market. Large capital and improv- ed economical methods of management ensure the success of the enterprise." " As to shutting down the mines," .'^aid Mr. McKenzie. 'this strikes me as be- ing the merest -moonshihl^ The contingency is so remote and the arguments in support of the idea are so feeble as to be scarcely worthy of serious consideration.. The people who are putting their money into this conciern are not doing it i^)r fun or for their health. They expect to see their returns by an enlarged output of -- the mines, and this is a reasonable business view, and the one which, in my op- inion, has induced the creation of the Company and forms the sole basis of its ex- istence. • " If it be true that Messrs VanHorne, Angers and Sir Donald Smith are il» the Company, all the better. It should be another guarantee that the mines will be operated,as the interest of all these capitalists are in Canada rather than in the ^ United States," "Mr. MacKeny-ie concluded his remarks," says the interviewer, '-by making the- to THE COAL -QUESTION. statement emphatically that he looked upon the sehame generally as an excellent one for the late proprietors, the present purchasers and the country as a whole." Mr. M. R. Morrow, ft gentleman having a large connection with the coul trade both in Halifax and Montreal for nearly twenty years gave 'his views on the Whitney syndicate on Feb. 24th, 1893. He said : " As a coal man I see nothing in the much talked of coal lease to excite ipprehension, either from the standpoint of provincial or Imperial inteiests. The rate of royalty, viz., 12^ cents a ton, 1 consider as heavy a tax as the coal in- dustry is likely to be able to bear at any stage of development, covering as it does all coal exported as well as that used for home consumption. Under the Whitney Company I look for a large tnide with the New En<>land States, much larger than could have been hoped for under a Provincial or Ctnadian syndicate, although I always held the view that under free coal, or reciprocity in coal, a good and profit- able business could be done." " As to Imperial interests being endangered, there is small ground for such an assumption. At both Halifax and Bermuda, English coal is used by the ships of the royal navy 'exclusively, notwithstanding the fact that our coal could be landed iit both these places at a much cheaper rate and to more economic advantage as well. In time of war convoys could accompanyvcoal steamers across the ocean if necessary, although if our coal was required they could doubtless get all they want«d of it. The idea of the Cape-^Breton mines being fired is too absurd, as the little good it would do the American government in such an emergency would be out of all proportion to what it would cost them in indemnity alone to the Whitney company, who would, of course, forfeit all further rights to the properties leased by them. However, assuming such danger to. exist, does it not exist almost to as groat an extent worked as the mines are at present ?" "Do you look for a large increase in the output ?" '•Yes, a substantial, gradual increase. With the aid of tl»e New England market the output of the properties acquired by the Whitney Co. should and un- doubtedly will reach at least 3,000,000 tons in twenty years and probably in les« time, as against 1,000,000 tcJTis at present. To show you how rapidly coal con- sumption has increased of late years, take the five principal cities of Canada, viz., Montreal. Toronto, Hamilton, St, John and Halifax, the consumption in each and nil of which places has about doubled in the last ten years. The adoption and ex- tension of the electric tramway system in Boston and other New England cities will shortly mean the consumption of a quarter of a million tons of soft coal, where practically none was required not more than two years ago. The consumption of soh coal in the New England states in 1892 was in the vicinity of 6,000,000 tons," The chief points to be noted in Mr. Morrow's remarks are that in imposing a royalty of 12^ cents a ton on coal raised by the syndicate, whifli was the quid pro quo asked bythegoverimienl in return for a lease nineteen years longer than the or- dinary lease,! hey had reached the utmost that the industry could bear at any time •■in the future ; the disposal of the fantastic objection that Imperial interests might ■■i U'' J^:l<.v!:," ■>. THE COAL QUESTION. m excellent a whole," Halifax and ndicate on i to excite ests. The he coal in- '^ as it does le Whitney larger than although I and profit- for such an he ships of he landed vantage as 3 ocean if t all they urd, as the y would be e Whitney •ties leased most to as England Id and un- bJy in less coal con- nada, viz,, each and n and ex- md cities )al, where niption of 100 tons." iiposing a quid pro in the or- any time its might suflFer by having a section cf our coal mines owned by a company comprised largely )f American capitalists; and the opinion from so good an authority that the output jfrom this company' : mines alone will reach 3,000,000 tons a year in probably less than twenty years. This would mean a provincial revenue,' at the rate of royalty [they are bound to pay, of $375,000 a year from the Dominion Coal Company alone, to say nothing of the natural increase of the output of the other mines now [in operation, or of those which will be opened in the near future. Mr. George E. Boak, [of the well known coal dealingand shipping firm of G. E. Boak & Co., whose ex- I perience in the business makes his opinion valuable, gave his hearty endorsement to the scheme in an interview printed on Feb. 20th, 1893. ?tlr. Boak said he had syndicate arrangenient.' financial schemes that had ever been offered provinces. The benefits which the island from '.t could not be exaggerated. The Louisburg would make it possible to ship coal year round, or at least eleven months of the year. no hesitation in giving his warmest support to the He looked upon it as one of the greatest to the people of the maritime of Cape Breton would derive building of the railway to from Cape Breton all the With the enlarged market which the removal of the American duty on coal would open, the development of the industry in Cape Breton would expand on a scale far beyond anything hitlierto dreamed of. He thought that the chances for the removal of the American duty were ten to one in favor of the proposition. But even should this not be brought about, with more economical methods of working the mines, and cheaper and hsit- ter means of transportation, together with i' n'ed shipping facilities, the syndi- cate would be able to command a much larg*. re of the upper provinces trade than has been possible in the past. In order to carry out the operati >ns contem- plated by the syndicate a very large expenditure of monej must be made, a very great proportion of which must give employment to labor. The benefits of all this would not be confined to Cape Breton, but would be felt in Halifax and gen- erally throughout the province. The provincial treasury would be replenished from the increased royalty that would be collected, and this was not the least grati- fying feature of the scheme. This would enable the government to place the public services of the country on a much more satisfactory footing than the fires* ent income rendered possible. The government would have more money for roads and bridges and could increase the subsidies to steamboats, packets and ferries and other necessary public conveniences. He would not be surprised to see the out- put of the Cape Breton mines, when the barge scheme of shipment comes into operation, increased from 1,500,000 to 2,000,000 tons, whether the American duty were removed or not. This with a royalty of twelve and a half cents a ton would yield a revenue of a quarter of a million dollars, which he thought would be a very acceptable addition to the provincial treasury. The ultimate result of a largely increased output would be cheaper coa! to the consumers. He did not take any stock inthe fears expre.ssed by some, chiefly for political reasons.that the syndi- cate would put up the price of coal -and monopoly rates would be asked. The qnestron had been pretty well sifted out and it would be found that the idea has its lodgment in the minds of cranks rather than those of sensible people. MtfMli 12 THE COAL QUESTION. The people who have gone into the syndicate have done so for the purpose of making money, and the way they propose to do it, as he understood their pro- gramme, was to mine and transport their product according to modern economical methods and sell two, three or four tons or more where one is sold now. "If the Whitney syndicate is successful in its operations, as he hud no doubt it would be, the effect would be to induce American capitalists to go into other enterprises in Neva Scotia and the other Muiritime orovinces, the rich resources of wiiic)i if? many « s^s are lan^uishinj^- for the stimulus of money coupled with the sp'Hi of enterprise/' Mr. Boak here referred to the timidity oi'our own capitalists about investing outside of beaten ruts, nnd said that " it Americans or any other outside people came here with their money they should be welcomed and not discouraged by harsh and unreas(mable criticism as has leen the case in the present instance.'' He deprecated the fierce party spirit which had been displayed in certain <|uarters over the bill and gave it as his opinion, and there can be no doubt about the soundness uf it, that : '• If the government had declined to negotiate with the syndicate or, the lines laid down they would have been howled at for ^driving capital out of the country by the very men who are assailing them for bringing it in." After referring to the high financial standing and business integrity of Mr. Whitney and his associates, Mr. Boak said that there was *' nothing to have hindered Mr. Whitney from buying off quietly every lease in the province and working the .'nines on the existing royalty. The long and a.ssured lease was the inducement to take hold of the Cape Breton mines which-he had secured and pay the- increased royalty which the act provides. He thought the government and the country might ' be congratulated on the formation of the syndicate and that a brighter era was dawning upon the province than any that had been enjoyed in the past." Mr. Wm. Roche, M. P. P. In addition to the foregoing coal men who so cordially endorsed tlTe scheme may be mentioned Mr. Wm. Roche, M. V. P., who is one of the largest coal deal- ers in the city of Halifax, and whose knowledge of the whole subject is unsurpas- sed by that of any other gentleman in the country. Mr. Roche's views were given at length during the debate on the (question in the house of assembly. He made a powerful, eloquent and effective speech in advocacy of the measure, re* viewing the captious objections of the leader of the Opposition and answering him at every point. It may be said by some that Mr. Roche's opinion would be biassed by party political considerations, but those who know that geut'onuilis character and disposition will readily admit that he would not give his adhc-ion to any policy which he did not believe was in the interests of the province. He was evidently convinced thst the duties of patriotism demanded that he should THE COAL QUESTION. 13 J purpose of 1 tjieir pro- I economical ad no doubt into other resourccH of (1 with the lit investing tside people ouraced by it instance.' in certain oiibt about It e with the for driving bvint;inji it rity of Mn ing to have rovince and ise was the red and pay government i syndicate iit had been tlfe scheme it coal deal- s unsurpas- views were mbly. He leasure. re- wering him wmild be tent>ni:rfr,>J s adhcf-ion »'ince. He L. he should Indorse the action of the government, and hence his warm advocacy of the scheme, tt goes without saying that much weight must be attached to the view.s of such man, whose special knowledge of ihe subject, high intelligence, studious habits jmd independence of mind make his judgment in the highest degree valuable and important. _ * While it has been made abund-uitiy evident that the coal syndicate scheme liud and continues to have the support of the leading men connected with the in- dustry, irrespective of political predilections and associations, it is also interesting Ito note that it met as well with the favourable consideration of men engaged in the development of our gold mines. Mr. George. W. Stuart, )t' Truro, probably one of tine most experienced and widely known of our gold miners, and perhaps almost ai widely known as ah actiAC and influential worker in [the front ranks of the Conserative party, — at least in Dominion politics, — gave the [following interview : '' Did you profit by the Cape Breton coal deal ?" '■ No ; I am not interested in coal, except in a very small way, and that not in the direction of Cape Breton. I say no, yet I hope to profit in general with the people of the province." '' Thci; you think the deal a good one for the country?' '• Certainly : I believe it will be profitable all round for the government, for [the people and for the stockholders." "Why?" ■ • '' Because capitalization is absolutely necessary to make Nova Scotia tlie [great mining country nature intended it to be. Our mining areas, as held in general, both in coal and gold, particularly gold, are in too small blocks to offer to I capitalists. In cu'der, therefore, to secure capital we must have consolidation. The mining business of Nova Scotia lias reached a stage when it must go into the .hands of capitalists to be worked profitably.'' '• You think the Whitney syndicate have purchased in good faith to work ?" '• That no sane man doubts. The investment of so much capital as the Whitney syndicate liave put into C. B. insures vigorous working, hence the em- ployment of more labor and a largely increased output." '' What about monopoly ?" '■ T is only the cry of 'wolf.' The Whitney syndicate will get tired if they undertake to monopolize the coal business of Nova Scotia. The field is too ex- tensive. Stimulated by the present move, I believe there will be many new mines opened the coming summer. You will find more applications made in the next few months for new leases on new grounds than have been made in as many years in the past. Successful development wilt follow.'' " Then you think the government has moved well in the matter and made a good bargain for the province ?" I 14 THE COAL QUESTION. "Yes. I should n'^t apprehend any danger from the concessions made. 1 think the old coal leasee a^' arbitrary and tended to prevent the investment of capital. A precedent hap nov hi^on made which will enable coal mine owners to feel that they are at least no* working under sufferance." " Your politics do not seevi to anecl your views in the case ?" " Why should politic^ enter into the case at all ? We have too much politics for the good ^f the country. The franiic etforts of some of the provincial papers to make politi !al capital out otthiscofl matter assumes something of the ridiculous. If either party profits politically from the discussion it must be the government." " You spoke of the bad effect of gold mining areas being held in small blocks." " Yes, there ai-e a number of districts lying idle, neither giving employmeiit nor increasing the revenue, entirely on this account." " Can the government remedy the evil ?" " The government has shown a decided disposition to foster the gold mining industry. They have informed us more than once that they are prepared to meet our views in all things reasonable when we are fairly in unison and know what we want. Possibly some remedy may be provided for the evil referred to." Mr. Stuart also assured the inteviewer that the gold mining fraternity were very generally in favor of the bill, and that there was widespread indignation amongst them because of Mr. Cahan's attack upon the leases. If it had not been promptly met by a strong array of legal opinion of the most reliable character, vast injury would have been done to our mining interests. Capital abroad would be scared away fi'om investment in our mines. Endorsed by Manufacturers. It is satiefactory to note that iiiaini fact urors .supported the scheme as heartily b all other classes of the population. I'roiuiuent aniont; these, Mr. Robert Taylor, Ihe leadintr boot and .shoe manufacturer of the Maritime Provinces may be" juoted. lie .said '"he could not see how there could be any diiference of opinion imong sensible people as to the advantages to accrue to the province by the cre- ition ot the Whitney .syndicate. It certainly was a matter of congratulation that mch a 'urge inYe.stment of capital was to be made in Cape Ureton. and the whole province must feel the benefit of it in every branch of trade. He was as much Apposed to combines as anybody, but he could not see anything in the shape of a Eouxbine about this arrangement. It was siniply the investment of a large amount ^i capital in the operation of such mines as came under the control of the syndi- late, and by putting tliem under one management the cost of operating would be »rgely reduced. The economy thus effected would enable the syndicate to make reasonable profit on their outlay without advancing the price of ooal. The pro.spect of extending the railway to Louisburg, thus enabling the syn- [icate to ship coal all the year round, must be largely to the advantage of Cape preton and to all who did business with the people down there. This winter, for instance, coal could have been shipped from the harbor of Louisburg up to the Iresent time if the facilities which the syndicate intended to provide )iad i een n operation. He thought the i^yndicate looked tor their profit.s to tlie advantages i^hich large capital gave them of introducing th lattrst machinery and the best and ^jost improved methods of management, the construction of the Louisburg rail- py, the building ot wharAe.s and the employment of steamers adapted especially ) the carrying of coal, and not to scjueezing the market and raising the price of ?al. He would naturally be oppo.sed to the scheme if he thought the result lould be to raise the price of coal, as he was a pretty large consumer of it in his yn business. An advance ot a dollar a ton would mean a lose to him of »ix hun- red dollars a year. But he entertained no such fears and he thought all such [ars were groundless. Mr. Taylor said that he thought there was a reasonable prospect of the Ameri- |n duty being taken off coal before very long, and in that event tl^ere juras practi- llly no limit to the market that would be opened for Cape Breton coal in the [ew England states. The output of the mines would be enormous, the revenue the province would be expanded in a most gratifying way and an amount of ^- 10 THK COAL QUESTION. money would be put in circulation which would give an impetus to the genera! J)u«ineH.s of the country. It was folly to object to the introduction of Ai 'erican -or any other cnpjt;'! I'-t the purpo;i I Endorsed by Bankers. The scheme not only received the support of coal men, gold miners, mauutao- turen an 1 business men generally, but also of leading bankers as well, as the fol- lowing i;iterview8 will show. Mr. Thonas Fyshe, Cashier of the Bank of Nova Scotia, and considered one of the shrewdest business men in the country, said he saw no objections to the arrangement that had been made from a provincial standpoint. He thought the government had made a good bargain and had sacrificed no public interest. As to the syndicate they ought to make a success of their enterprise if well mannged. "What about monopoly ?" " They can't esCablish monopoly prices and make a success of their business. The C9nditions of success with them depend upon an increased output. They can't increase their output and raise prices at the same time, as they would restrict their market whei^ they put up the pric«." " Have you any objection to American capital being employed in the province ?" "There is no danger in the employment of American capital or any other oapital in developing the industries of the country. The idea is absurd." "The promoters of the scheme were largely influenced in forming the syndicate, so it is stated, by the belief that the American duty would shortly be removed- from coal. What do you think of the prospect of his hope being realized ?" Mr. Fyshe said that he thought the prospect of this duty being removed was- very fair. With the advent of a Democratic government to power in the United States he thought the duty would not stand long. The Democratic party was pledged to reform the tariff. One of the first parts of it that they would attack would na- turally be the duty on raw materials. Coal was one of the most useful of raw ma- terials, and it would probably be placed on the free list. There would be a strong pressure brought to bear on the government and congress from the New Englana states, the manufacturers of which were a unit in favor of free coal. Should the •duty be removed a very large development of the coal industry in Cape Breton was sure to take place under the extensive operations and energetic management of the syndicate. " Do you think the British empire will be endangered by the coal mkies of C»pe Breton being in the bands of American capitalists ?" £l__i^.jj. "'-.. - -.i^ V n VTIC to THE OOAL QUESTION. TTH '* That is too ludioroub a question to ask or toanawer 7" '' What is the general view of ihin matter taken by commercitl and buBineas men Y" "Bjs£ar the prevailing opinion in most favorable to the scheme." "What do you think ot the attitude of the ILrald and the Opposition in the . 'QEfouse of Assembly in respeot to this question ?" "Oh, well, they are in opposition to the government, aad, of oo irQe, thej i..iinust say something. The moCive is simply party politics." • Mr. A. E. ElllS; J|»aag;er of the Halifax branuh of the Bank of British North America gave a '.l«Dgthy interview strongly in hivor of the scheme. There wut no objection to it 1 that had been raised which he did not fairly combat. He treated with Just ridi- --«ule the contention that United 8tut«8 capital was not a desirable commodity in ■thii province. Said Mr. Ellis: " The important thing to us is to get the capital, no mutter from whence it '«anie, and give our great natural resources the best ohaooes f r development. The 'Whitney syndicate opened the door to a large expenditure of capital in the devel- opment of our coal mines in Cape Breton, and he thought the fact a most fortun- ate one for the province generally. He could not agree with Alq objections '.that had been taken to the arrangements made between the government and the BTndioate. He thought them fair and reasonable on both s'dei. As to monopoly > tne syndicate hi d no more power to create one than has been possible among min- fttK managers in the past, except that the number of contracting parties to a oom- 'Mke has been limited by its creation. With this excep ion a combine could have 4)een formed under previous conditions just as effectively as it. could be done now.- He looked upon the cry raised now In certain quarters on this point a i absurd." Mr. Ellis said it was perfectly ridiculous to suppose that the Company -er it had become law tor the pur- Sose ot Hccuring itu defeat was a course whicli iu hiH judgment could ^lOt be juHti- ed; What would be the result if they succeeded ? CapitalistH would give the provinces a wide berth in any enterpriHe which rccjuinHl legislation. A golden op- portunity would ])e. thrown away. The credit of buninefciH u)en in Capo Bi|;|on- n^d gone up already on the faith of the syndicate carrying eut its operations. Debts duo iu the city by Cape Bretun traderr^, which were only worth 'ib cents oi^ the dollar, would be worth double that amount in a short while. Stability has been given to business there. The expenditure of a large amount of money in Cape Breton will be felt throughout the w ole province. IlalifHX wil Lo larp ly, benefited, and us the commercial centre of the province the effect will be bene- ficial all round The inorease in the provincial rcvcnjie consequent to the per- fection of the scheme is an important matter wlieu thew is so mucli difhcuby in making both ends meet. (Jet the act di.sallowed and this will le lost. He thought the men engaged in this attempt must be infatuated by party feeling. He was as much a Britisher as anybody and scouted annexation ai\d how anybody oould see annexation in the investment of American caj ital iu the country wa» something which was beyond his compreheiwion. The banks of Canada go into New York and other American cities and make money when the oc asion cffers. Besidt* this there wsis a tremendous amount of Canadian capital invf sted in the • United States. Why should not this order of tilings be reversed and let us have as much American cpital working in the province as we could get. TJie lOrc o(, it the better." in- Mr. John T. P. Knight, Manager of the People's Bank, gave his support to the scheme in the fol- 1 owing very stron g terms : — " I'm content to believe that Mr. Fielding has studied the matter and knows what is best for the welfare of Nova Scotia, the richest strip of noun ry in British North America. The aftermath of the sale of mineo is to me most amusing : the- phantasm of the consequence cf war, bloody war." '*ti^ "Then you are not opposed to the introducticn of Ameriean capital ?" nTT(i "Of course not. I wish the Americans would send with the money some of their energy arid go-a-headivenegs. I would welcome capital from avy country under the sun, and, if its employment furnished more labor than our present popu^ lation could attend to, send for the Chinese, said to be the coming race. We wan-t money and men, and 'tis a pity that this enterprise, promoted by a. far-seeing, wide awake Nova Scotian, Mr. B. F. Pearson (whose ability and cleverness is not sufficiently recognized by our own capitalists), should be the cause for fq^sh vaporing and mock heroics on the part of a few political malcontents." I 3i THE GOAL QUESTION. "Then you, as an Englishman, don't feel alanned about the oonsequenoes of war between England and America ?" "Yes, I've pictured Whitney st&nding on the battlements of historic Louis- burg and waving to the British ships to give the syndicate the preference over some opposing collieries when filling their bunkers with Cape Breton coal. Let us be serious for a moment. Are those two loyal gentlemen who recently interviewed Lord Stanley frightened at the settlement in the heart of our Dominion of the prolific French ? War with France is much more possible and probable than war with our American brethren, and yet we have in Canada living under one flag, but perpetuating two languages, strong national sentiment and patriotic feeling, two separate and distinct races who have periodically waged war since the day when Harold fell at Hastings. Future danger to the empire I Future fiddle- sticks ! Let our children take care of themselves and of the prosperous country we bequeath to them. By the way, I have sometimes dreamed that much more alluring than the shadowy fabric of imperial federation is a picl are of a federation of the English speaking people on both sides of the Atlantic and in all the ooi^drs of the earth, united by the common bond of thinking and speaking in our mother tongue, and rivals only in art, industry and science. But that belongs to another story, as Kipling would say." "Then you favor the recent sale of some of our coal mines ?" "Yes, and it is matter of perfect indiffererce to me by whom and to whom they were sold. I am willing to stand by the action of Mr. Fielding and his sup- porters in this bit of business, believing that they will fight shoulder to shoulder for the preservation of our rights, and that if w-ime develops anything unbearable in the conduct or management of the syndicate some remedial legislation will be found." • - The three bank cashiers whose opinions are given were tKe only ones with whom interviews were obtained, for the obvious reason that they are very busy men, and do nqt talk matters outside of their business during banking hours, and it is not easy tb catch them at other times. But it was an open secret that there was not a president, director, or prominent official of any bank in Halifax who did not look at the Syndicate agreement at the time it was being actively discus- sed, with favor, and who did not regard the attitude of the opposition to it as in- judicious, unwise and unpalriot'c. The views of such representative banking men as Mesrirs. Fyshe, Ellis and Knight may be fciepted as a fair indication of the feelings and opinions in banking circles generally. ..#»** mn Endorsed by Business Men Generally. As the country knows a large number of interviews were printed last wintes rwhen the subject was in hot discussion, all of which, coming from vaiious quarters, • possessed great value as giving the solid sense of the community on the question. It is not th& purpose of this compilation to give them all or even the whole of < those selected for republication, but the substance of each so selected is faithfully given. The selections ara chiefly made from those which are least open to the .charge of being dictated froai feelings of political friendship for the administra- tiou which is responsible for the creation of this great scheme. The interviews preceding give the opinions of special classes, and these which follow will be of • juisceilaneous character. The following extracts are from an interview with Mr. George E. Faulkner, Manager of the well known commercial agency of R. G. Dun & Co. (formerly Don, . Wiman & Co ) Mr. Faulkner's standing and wide experience as a close watoher ^ of business affairs covering the provincial field in every department of industrial and commercial activity give assurance of sound judgment, and his opinions will be valued accordingly. Afier some modest references to himself Mr. Faulkner said : "The scheme is a large one, with some dangerous possibilities, perhaps, but upon Ihe whole I have a good opinion of it." " The prices paid for the various pjoperties, as currently reported, seem somewhat excessive, looking at their history and the earning capacity they have shown up to this time, though this does tot mean that they may uot be intrii^- . sically good for the figures paid, for it must be admitted thit a numVjer of strug- gling companies, each si»''lled with large management expenses, bidding against -£aoh other for business and none of them working on sufficiently large a scale to give the best results, can be taken as a fair criterion of values or of the possibili- ties of the mines when worked under improved conditions. "Theloial government has shown I bold and prt^essive spirit in dealing with the project. No intelligent man could expect them to make a bai^in that 24 THE COAL QUESTION. would have every advantage on their own side. Business is not done in that way. 'Some sufficient encouragement must be held out to induce capital to embark in Buch large enterprises, and this is a case whpre it seems to me it was speciallji the duty of the government to go as far as they reasonably could with such encourage- ment." " What do you think of the monopoly objection ?" "Well, I do not share, completely, the common nnd popular opiii>an whi^h is BOadve"rse to "combines," so called. It will be found, 1 think, that in a majority of cases combines instead of being the resiilt of the aggressiveness of capital ara in reality the outcome of capital on the d'^fensive. In this case the monopoly objection seems to be well met by the fivC that there are many other coal com- panies in the province not ii eluded in the new syndicate, but especially by the possibility of importing coal from Gre .t Britain This latter fact seems to be u' clincher. " My faith in the practicability and ultimate success of the scheme is based chiefly on the iavorable natui-al cdnditions attached to the case. The mines con- trolled by the new company are situated in close proxmity to the barl ors of the coast, and it may well be doubted whether there is any place on the continent of America affording such natural advantage s for the cheap and expeditious raising and transportation of coal. Apply to such conditions largo capital and modern business methods and you have all the elemen's needed for a permanent and suc- cessful enterprise." Mr. Issaac H. Mathers, the leading lumber shipper of Halifax, a gentleman well known in many srctions of the province as a shrewd and far se'eing business man, said he had " very de- cided opinions on the matter and was strongly in favor of the bill that had passed.'' Mr. Mathers took up one of the cries that had been raised thaf, the price of coal would be increased and contended that this was not an unde irable thing in the interests of tho country generally. He argued that there was gen- rally a feeling of comfort throughout the province v/hen the pi ices were good for such pro- ducts as we had for export, such as apples, ' o'atoes, lumber, etc., and why not ooal ad well. "So long,'' said he "as the matter is regulated by the law of supply and demand liothing is 10 be said against high prices." The soundness- of this contention canriot be successfully disputed. Mr. Mathers was asked if he thought the bill gave the syndicate monopolistic powers. He said that he had no fear of monopoly. If it should be attempted he was certain that " coal could be imported from I]ngland and Scotland and landed •t Halifax at prices that would render' any such attempt aBbrtive, that is if the Federal government wouldremove the present duty of sixty cents per ton from bi- tBtminous coal. The cry of monopoly in coal or anything else came very grotesquely from supporters of a party which, b>' its tariff prdicy, had fostered monopolies in many articles of prime necessity. In this particular instance, if they were de- sirous of breaking any possible monopoly that the Whitney coal syndicate might' have, all they had to do was to place coal of all kinds on the free list." THE COAL QUESTION. 25 " Have you any objection to American capital being employed in developing our industries ?" Mr. Mathers laughs at the absurdity of such a question. "Foieign gold from any quarter should not be objected to provided it is of standard weight and fine- ness. As a matter of fact American capital has been largely employed in many of the most important industries of the province, and without it our progress would have been seiiously retarde '. It has been largely employed in our gold mines, in our lumber business and in our lobster fisheries. It was not perhaps generally known that nearly all our 1 bster fisheries on the Atlantic coast were owned and operated by Americans, and to the advantage of the fishermen, as the Americans paid t\ r their labor in cold cash, and not with store track at high prices." Generally looking at the whole scheme he thought the government, the prov- ince and the syndicate might be congratulated on what had been done." Mr. James A. Chipman, the well-known flour merchant, a leading member of the Halifax board of trade, and also a prominent member of the Conservative party said that if the syiidicate really operated the mines as its friends contend«fd that they would, the result ought to be vastly beneficial to the coal industry ol Cape Breton and to tie busi- ne.8S of the country genera'ly. If it could work up a large export trade- to the New England States, which was one the attractive features held out, a large amount of employment would be given to labor, and the building of wharves and Other shipping facilities, together with the construction of railways in order to- extend the operations of the company — all these things would involve a very large expenditure of capital, in the country, which certainly vas most desirable. In the event of the syndicate working up a large export trade with the New England states, he thought it would be eutitled to a rebate in the amount of royalty fixed in its lease. " What do you think of the combine cry that has be^n raised ?" " I think in certain contingencies there is something in it. If they do not succeed in working up the export trade they will be in a position to squeeze the local market and raise prices. Their power would be paramount in a limited field." " Have you any objection to the introduction of American capital for the- purpose of developing our industries ?" '^ Not at all. Such an idea is very absurd. The more of it that can be brought here the better. What diflference does it make lo*the country where the capital comes from which opens up our resources and develops the. natural wealth of the province ?" Mr. Adam Burns, a gentleman whose name 's a synonym for commercial integrity and whp^f cessful business career attests to his soundness of judgment, also a pro Conservative, expressed himself strongly in suppoit of- the scheme. B that it» had ail the elements of sound life and that the people of the country should ^26 THE COAL QUESTION. hail it with satisfaction. In a country like this it was very desirable that our re- .sources should be developed by capital, no matter whence it came. He did not for one moment suppose that the gentlemen connected with this enterprise had -invested their money without intending to do work which would return interest «pon the capital represented. The whole subject was a very broad one, and look* ing at it in its broadest light he thought that no fears need be entertained in res- pect to the commercial and industrial interests of the people of Nova Scotia being improved by tho investment of so much capital in one of our most Important in- .dustries. He thought that the scheme should be hailed with pleasure by every business man in the country. It had been carefully thought out, the public in- terestg had been carefully looked after, and there were, in his estimation, no reason- able grounds of objection to it. Englishmen, Scotchmen and Americans do not object to foreign capital being employed in the various industrial pursuits of their respective countries, and he could not see any reason why Nova Scotians should object. The scheme had his most cordial support and endorsement. He thought that the Herald people had allowed their party feelings to override their couunon sense and patriotism in opposing a measure which promised suoh splendid results to the country. Mr. Burns, it may be here mentioned, w«3 the gentlenaan chosen to presid* at the Conservative banquet given to Sir John Thompson and Sir Hibbert Tupprtr in Halifax a short time ago. Mr. B. W. Chipman, flreal estate and insurance agent, an ex- warden of Halifax county, a g>)ntlemaii of high intelligence and large business experience, gave his views in favor of th« scheme at considerable length. The following extract is selected as a fair speoi* men of the spirit and drift of the whole interview : He thought it unfortunate that party politics should be introduced and uloud the vision of anybody in connection with so important a mea.sure, calculated to do so much in the way of developing our resouraes. When he heard Mr. Fielding's speech he said to himself that the key-note had bean struck to a tune that he l^ heard played for the past 25 years. Everybody had been singing out that some- thing should be done to bring foreign capit 1 into the country, to open up the great .store of natural weaith which we had in our mineral resources ; and here we had a great company of American capitalists ready to pour millions of dollars into the ,coal mines of Cape Breton with every prospect of making honest money by their enterprise. He must say that he was surprised to find even « few placing them- ^selves in opposition to what appe ired to him to be a most fortunate event for the |)rovince.. He thought the government had conserved the public interests in tht arrangement that they«had made, securing terms as advantageous as possible in view of the large amount of capital which was being invested. Sheriff Archibald, ^ ,who had just returned from a short trip to Boston, said that he looked upon the ^syadicate scheme as an excellent one for the province and also for the men who I THE COAL QUESTION.' 27 had invested their money ip the enterprise. It was not only a good thing for the i)rovince directly, but indirectly would be found, he be'ieved, to be the means of eading to the expenditure of Amei can capital in other enterprises in Nova Scotia .connected with our mining resources. He found that the scheme ■vuti attracting a large amount of attention in Boston and the mineral and valuable metal produo- tions of the province were be"ng talked about and received an amount of advertis- ing that must redound to our advantage. He thought that an impetus would be given to our mining industries that would be f ^r-reaching and vastly to the bene- fit of the people. While in Boston he had the pleasure of meeting Mr. Lowell, of the banking firln of W. L. Lowell &Co., of this city. Mr. Lowell is now resid- ing in Boston, but from his long residence in Nora Scotia and his connection with gold mining and other Nova Scotia enterpriseg, takes a warm interest in everything which relates to the prosperity of this province. Mr. Lowell, he said, was most emphatic in his opinion that this pro?ince should be congratulated upon the esta- blishment of this great coal mining company. He utterly scouted the contention that any monopoly was intended. He said the syndicate was principally formed , in the belief that the American duty would be removed by the Cleveland adminis- tntion, in which case there was reason to hope for a very large increase in the output of coal from the Cape Breton mines, Mr. Lowell is a Republican in poli- tics, but said that free coal was a great desideratum to New England manufacturers, and he thought the Democrats could hardly fail, among other amendments to the tariff to which they were generally pledged, to place coal on the free list. The coal consuming capacity of the New England market wag very great, and Mr. Lowell thought that there was a bright future for Cape Breton in view of the formation of the Whitney coal syndicate. Mi. Archibald here discussed at some length the opposition contention that the syndicate might lock up the mines, or that they might have a monopoly of the coal trade and charge combine prices. He regarded both propositions as absurd. Concluding he said that he "did hot see any necessity for making such a fuss about a 91> years' lease. The present leases had practically a life of eighty years by re- newals, which were always made when the royalties were paid and the mines nob entirely abandoned. It was, of course, a great inducement to capital to have an assured lease covering a long period with a fixed rate of royalty, and this conces- sion was pr 'bably the means of getting those American millions invested in our mines. As to the syndicate's power to make a combine he did not see anything in the terms of the bargain which gave the members of it any advantages which were not open to anybody, or any company who ohose to take up the leases under the old conditions. He thought the government had acted wisely and that if it had failed to grasp the opportunity offered would have made itself liable to censure. It was not every day that millions of dollars were offered for the development of ©ne of our most important industries. In his intercourse with businejjs men of all classes he found the feeling in favor of the bill widespread and universal." Mr. Wm. J. Stewart, of M. S. Brown & Co., said that when he heard Mr. Fielding's explanation of the so-olUled Whitney coal deal he was perfectly satined that an arrangement had been perfected which would be highly advantageous to the province, and although a Conservative in Dominion politics, was one of the first to congratulate that gen- 26 THE COAL QUESTION. tleman upon the excellent bargain the government had been able to make. The provinciaJ government depended largely upon the coal royalty for its revenue, and anything which promised to increase the amount, without perilling so important an industry givit-g so much employment to labor, ought to be hailed with pleasure. The company by this arrangement was bound to pay a stipulated sum based on the largest output of the Cape Breton mines, that of the ye- r 1891, at the tate of 12^ cents per ton. Th-s was an inctease of 2^ cents a ton on the royalty fixed by the .^gislati. n of last session, which was considered excessive b) coal men gen 34 T4IK OOAl. QUKSTJON. full tuxl of the deliverances of tUei^e gcntlciaon, but the gist luiiy be given as it is uf the utiuoHt importunce to the mining inten^ats of the province that the fulleHt confidence should bo maintained and repow^d in the validity of the mining leuNes. After citing a number of authoriticH, Mr. Koss, Q. C, Huid : "The leuHes given by the government of Novu Sootiu are made in the name of Iler Majesty as represented by the Commissioner of Works and Mines, and reserve a royalty payable to Her Majesty, her heirs and successors. The title to the mines is witliout controversy, either in the Queen or the Province of Nova Scotia or in botli. Both oeing partiei to the leases of mines, lessees have an undoubted title to the areas covered by their leases for the number of years mentioned there. " If Queen Victoria died tomorrow this title would be untouched. All that would be needed would be a statute passed with the assent of her successor, vest- ing the royalties received under the leases in the* legislature of Nova Scotia for the reasons given above, the passage of such an act and the assent tiiereto would be u matter of course. Lessees luay therefore make their minds easy, for they can- not become in any way involved iu the controversy." " But" we asked, "suppose the Orown did not assent." "That"' replied Mr. Uoss, "wiuild mean that Howe's great achievement of reaponsioie government w(tuld be last to the province. It would mean anarony both in Kngland and every one of the colonies. It is not possible to BuppoMe tile refusal of such assent." "1'hen you hardly think that Howe and Young, and Johnston and Archibald bent i.iieu- united energies to make a settlement, which, according to Mr. Cahan, was hiiole to be defeated in twenty-four hours l»y tlie death of the queen?" "'"0. There is no doubt but that they regarded the settlement as pierma- nent ^nu it is incredible that they should have had any other opinion as to the result, of their great eflforts on behalf of their native province." " J8 not this last attack on mining titles, although you have shown its absur- dity, liable to damage the mining industry here ?" " It IS my opinion that to traduce €he title of the province to the mines and minerals is to injure every dollar of stock in every existing mine and to handicap all furtner development of the mines. These things are easily answered at home, but t he fears of a foreign investor are not to bo ({uieted with equal facility. It may be ihat Mr. Cahan's objection has already done irreparable harm. It is known now that it has done some damage, biit to what extent time will have to tell.' Mr. Henry, Q. C, said that he had joined with Mr. Ross in the opinion " thai tnere was nothing whatever in the point raised by Mr. Oahan." After this sweeping and emphatic statement, Mr. Henry continued : " To support the viewft taken by the leader of the opposition would simply mean an attack upon the stability ot the Britisk. constitution,^ and to claim that all mining leases in Nova Jjcotia would be forfeited eighteen months after the death of the Queen — such a conieution was simply absurd." The essence of Mr. Harrington's carefully written opinion, given over his own sigDature iu the < ' ' < t.is contained in the following paragraphs : ■;,;; ' i - " THE COAL QUESTION. 35 i " The oircumstance that the act in f|ue8tion (the aot of 1849 which Mr. Ilarringtoil had quoted) Mhiill terminate tigliteen inoiithH after her nuijeBty's death docH not, in my opinion, detruot from the permanence of the leawiH made since it went into effocit. The jiroviNion for doU^nuiiiation ut the death of the Movereif;^ of any transfer of purely pergonal righlH is not only usual but probably invariable in all dealings of British parliaments with the reigning sovereign. This is done, not because the sovereign hickn power to make a transfer of his persona! prerogatives binding upon his successors, ftut because it has been thought better tor each new sovereign by his own act to transfer them. For such a course there are numerous precedents. If it had been intended that the rights of the province in the pr(»pertie8 sur- rendered should continue only during the life of the present (jueen, the aot would have said so and would have made them to cease at her death. » Instead of that, however, eighteen months are given for the obvious purpose of providing ample time for the provincial legislature to renew the present acts, binding on the new sovereign, as this is on the prewent one, and such legislation would receive the royal assent as a matter of course." Mr. Borden in his written opinion to the Hon. Mr. Loiigley, after some pre- liminary observations, said : With respect t") the real ({uestion my opinion is as follows : Ist. That the lieutenant-governor of this province represents her majesty in assenting to acts of the legislature of this province. ""nd. That the prerogatives of the crown in respect of this province are vested in and are to be administered by the lieutenant-governor so far as they are capab'e of being exercised )n relation to the government of this province. 3rd. That her majesty is, and her successors will be, bound by the provisions of chapter 7 of the revised statutes, 5th series, and the amendments thereto, and that leases granted by her majesty through the commissioner of public works and mines, -ander the p^ovi^ions of that chapter, will not be determined by or upon the demise of her majesty, but will be valid and effectual for the entire icrm thereby demised, provided the conditions thereof are observed by the lessees. 4th. That her majesty is, and her successors will be, bound by the provi- sions of the act passed during the present session, entitled '"An act for the further encouragement of coal mining," unless »uch act should be displaced by disallow- ance. '"^i ' 5th. That in 'tase the last mentioned act shall not be disallowed, any lease granted by her majesty through the commissioner of public works a. 1 mines, un- der and in accordance with the provisions thereof, will be valid for the entire term thereby demised, or until avoided for breach of condition and will not be deter- mined by or upon the demise of Her Majesty. Notwithstanding these strong opinions from gentlemen occupying the fore- most positions at the bar of Nova Scotia it is to the discredit of Mr. Cahan, that> he continued his fillibustering attacks upon our mining interests through the col- li inns of the Morning Herald and undertook to put his own legal quibblings before the pub'ic as being of more value than the carefully prepared judgmeuts, the sub- BibanOeOf IKrhich is quoted ip the foregoing. In pursuing this course, th^ leader ■;^■-^^>.;/ ;-•>*■■■?■ 'l-'^.^-^'V: 'i^f- -:\ 'i''' •: . ; ,»" ,\ 1.1 \ ■.- o I' •'*' . it^A 36 THE COAL QUESTION, of the opposition made hiioself ridiculous and contemptible in the eyes of all in* telligent and patriotic men and showed himself utterly unworthy of being entrusted with any position of responsiblity. It is proper to append here an interview with . / ,, I Mr. James Thomson, Q. C, who, as will be seen, not only treated Mr. Cahan's legal mare's nest with con- tempt, but also gave a very warm support to the government's course, and con- demned the attitude of the Opposition on the whole question. Mr. Thomson is well known as an experienced and sound lawyer, capitalist and supporter of the Conservative Party in Dominion affairs. On the legal ques- tion Mr. Thomson said : , . " Mr. Cahan admits that the Queen holds the mines for the benefit of the Province, and she is in the nature of a trustee holding it for the beneficiaries. The Province being the beneficiary is entitled to deal with the property and give a title to the lessees, which she would be bound to confirm." ^ He did not think that the act of our parliament could bind another. Each parliament is supreme and may undo the work of its predecessor. Mr, Thomson was asked if that was sound, what security anybody had who entered into a cove- nant with a parliament on any subject whatsoever. He replied : "The good faith of the Province, which may always be relied upon when the other party performs his part in good faith." " Have you any doubt about the Syndicate's intention to operate the mines ?" "Not the slightest." He believed they bought the mines with the intention of operating them for all they were worth, and with not the most remote intention, under any circumstances, of locking them up. The men were not fools. The larger theit output the more money they would make. For instance, an output of 25,009 tons might be conducted at a loss : a 50,000 tons output might pay a profit and a 100,000 tons output might pay handsomely. This was the view taken by the men connected with the Syndicate. By centralization of management the cost of operating would be reduced, and the use of steam barges built expressly for the purpose of carrying coal would lesset 'he cost of transportation and yield profits beyond anything possible in the past. The American market, if it could be obtained, opened a field for our coal of great value. It was important to have our mines working ail the year round. He looked upon the prospects of Cape Breton as being very bright in the future and the wholt> province would feel the effect." "I look upon the bargain as a moei excellent one for the province. The gov- ernment deserves a very great deal of credit. They were not overreached in any way. They made no unreasonable concessions and none that were not met by cor- responding advantages on the other side. Such a thing as an entirely one-sided bargain was an impossibility when intelligence was used by both parties to it. It was folly to conjure up all sorts of imaginary fears. The world would stand still and nothing woald be done if men looked for nothing but obstraotionB in their ^jaJSM ■"■'■■""~^-^-' ■;■ ' y- THE COAL QUESTION. 57 pathway. Any mine owner ought to be delighted to have a chance of getting a rent or royalty ofthe kind secured by the^8yndicate,considering that the rent had not been raised till last winter for thirty-three years. Let the future take care of itself. We should not be hampered in doing what appeared to be wise for the present by possible contingencies in the future. The coming generations might be depended upon to take care of themselves. He was satisfied that no honest man of good common sense could look upon the bargain with any other feelings than great satisfaction." The Scheme Defended by the Conservative Leaders in the House of Connnnons. ■Vr' ' ','.y .. After the act had safely passed the Provincial Legislature by an overwhelm- ing majority, and I'ecei-ied the approval oi" the Lieutenant Governor, it was at- tacked by a maa of the same stamp as Caha i in the House of Commons. The chosen instrument for this work was R. C. Weldon, M. P., of Albert. He had been chumming with Cahan a good deal pad they were evidently kindred spirits. Weldon's attack upon the Coal j^leasure in the Commons was so violent and at the same time so imbecile that many were inclined to doubt his mental poise. He sliouted that the British Empire was in danger apd indulged in ab- surdities too preposterous to be seriously mentioned. He was taken by the ear very promptly and effectually and squelched out of sight. By whom pray ? Mr. Laurier and the Liberals ? No : but by the lead- ers of the Conservative party in the Commons. The first man who sat upon him and defended the scheme was Mr. T. E. Kenny, M. P. for Halifax. Here is an extract from his speech : " I do not want to go into the merits of the question ; but we must remem- ber that under any circumstanjes these leases will lapse if $125,000 is not paid into the treasury of Nova Scotia every year, and that under the old leaae, if I understand them aright, the only financial penalty imposed upon those who did not work the mines was that they had to pay $30 a year on every square mile, and they might lose their lease. But, as a matter of fact, I think myself the practice in Nova Scotia has been that the leases, under those circumstances, were not forfeited. The alarm of my hon. friend from Albert (Mr. Wuldon) then is principally as regards the price of coal, and he has referred to the fact that the leases might be forfeited under the old leases, while it is possible that «onld not be done under the nev. And he also has mentioned that the company has on its board of direction four Canadians. I think it is a matter of notoriety that at least one-third of the capital of the company is held by Canadians, and he says truly, that while it is in ihe hands to-day of gentlemen whom I respect and re- gard very highly, and in whom we all have every '•onfidenoe, it is quite ossible that that stock will change handf. la fact, it is a moral certainty th^b it will change hands. Jt is quite as likely that the control of the company will paas into Canadian hands as go anywhere else. My friend showed very poeti- f,, 38 THE COAL QUESTION. cally what might happen to our children's children as regards the acquisition of this property. In ail human probability our children's children, as Catiadians will very likely control and own the who'e property." The next speaker was Sir Donald Smith M. P., one of the directors of the C. P. Railway, and a man with many millions. He said : " Does the Hon. gentleman -om Albert think that those gentlemen who are Canadians, 1 hope equally as good Canadians as himself, men who are not less de- voted to the interests ot their country, and not less loyal to their sovereign and to the Empire than ia the hon. gentleman himself, would have entered into this transaction if they had considered there would be any danger to Canada in doing so ? Does he believe we would have bartered their independence, their interest m Canada, or our privilege of being citizens of this Dnminion for any amount of money ? No. It was purely a business transaction, and I desire to say that it is so looked upon, not only by those who are Canadians but by those Americans, men of high Lonour and integrity, who are also connected with it. How could there possibly be any danger ? It has been said, as I have seen stated in the newspapers, that England might be at war with Russia or other foreign power, and that these people might then treacherously shut up the mines or render them unworkable ; in other words, would sell themselves to the enemy. Could there be anything more ridiculous than nvsh an idea , how could this be carried out while this corporation must work under the law.-of Canada ? I desire to say no more on this subject than this : — That my Canadian friends who are connected with this undertaking would have had nothing to do with it, had they « onsidered that they were acting otherwise than as guod subjects of Her Majesty and good Cana- dians. In everything they have done, they have done it simply as a business transaction and with the assurarce that from their actions no donger or detriment could arise to Canada or the Empire." But at the end came Sir John Thompson the Premier and leader of the Conservative party in Canada. Listen to his manly words. He was replying to Dr. Weldon, who had admitted some of the advantage! of this scheme and says : " He admits that it is a valuable asset of the province, and he admits that the provincial government has parted with the property under terms which, as he describes it, will till the provincial treasury. He admits further that the bargain which he condemns will probably aid in coal development by diminishing the cok. of its production ; that it will economise the ma'iagement of this industry, now carried on by several distinct companies ; that it will ^pply improved methods of shipment to other provinces and to other countries ; that it will reduce the charges of mining as well as the charges of management ; and that it will in every way lessen the cost of production in order that coal tttay reach the market at a much lower price than it does now. Surely these are great advantages ; they are great advantages to the provincial government and to the people « f the province, not only as affording increased means for carrying on the local service, but as stimulating a productive industry in which great numbert of people in that province find employment, and are a decided advantage to .other portions of the Dominion as putting it in the power of the new company to sell its coal at a ower pric^ limn coi:;panie8 now operating can sell it for. The hon. gentleman has adnitted the po8sibilitie.«i for good which this legislation contains. ' In the face of this we ask seriously whom do the Conservatives of Nova Scotia intend to follow on this question — Thompson or Cahan ? a t ] E I £ V ;. t( ir U at iHMi ,1 ■ ■ >^-., ii,'-' -r Pr.^^'W-i' ■H''".:".\i',iv":}t The Dominion Coal. Company; . Its Progress and Prospects. . ■• ' ■•:■ \'- r-.!l -:, . Shortly after the legislation had' passed the Nova Scotia Assembly Mr. Whitney and his associates organized the Dominion Coal Company with a capital of $15,000,000 and with a right to issue mortgage bonds to the extent of $3,000,000 and preferred stock to the extent of $H,000,000. This company has acquired the following coal properties in the County of Cape Breton : The Cale- donia, Little Olace Bay, International, (lowrie, Sydney and Louisburg, Gardiner, Bridgeport, Low Point, Barrasois and Lingan. These properties cost in round numbers $3,000,000 in cash which has been paid. During last summer the com- pany had to work the mines according to the old methods while making prepar • atioDS for new and improved methods. The new scheme involves a railway from Bridgeport to Louisburg which connects with all the mines mentioned above ex- cept the Low Point, Barrasois & Lingan. This road is to be built of the very firs^ standard of quality and at a cost of $20,000 per mile for grading. Thirteen miles of additional road is to be built by the company at a large cost and it is pro- posed to have rolling stock upon this road and connecting with all these mines capable of rolling 10,000 tons of coal at a time. The company is also rebuilding the International pier near Sydney Harbor at a cost of $100,000. They are sinking a new pit at Bridgeport with a capacity for raising 2,500 tons per day. ", - The Caledonia mines are being re-equipped introspect of machinery so as to make its capacity 1,800 tons per day. . ; ,4^...= , ^ .,-<^^ tin- ^ The company is building a pier at Louisburg which is to be the winter port of shipment when the railway is completed at a cost of nearly $200,000. The company has also erected at Hochelaga, Montreal, four large discharging towers at a cost of $60,000. By means of these coal can be discharged at Montreal at fotur cents per ton, the previous cost of whicli was thirty-five cents per ton and ■^^^f^nfW^ 40 ITHE COAL : QUESTION. a vessel can be discharged in twelve hours where formerly a delay of forty-eight hours was necessary. The company is also erecting at the Wellington Basin, Montreal, four more large discharging towers at a cost of $60,000. The company are also preparing to place discharging towers of a similar character at Quebec and Halifax. Preparations are also being made for the erection of discharging towers at or near Bobton, and at two other points on bay water in the New England States. The company has already four steam tugs, two large barges and three small barges. They have also acquired the Black Diamond steamship line, consisting of four large steamers. All of this equipment is utilized for conveying coal to Montreal. The company is also designing and getting contracts for several large turret steam- ships, on the whaleback plan, with a capacity of 6,000 to 8,000 tons each, and with the greatest speed. These are especially for the anticipated New England trade when the duty shall have been removed and the company shall have under- taken to take possession of the New England markets for soft coal. In New England there is yearly consumed about 6,000,000 tons of bituminous coal, and it is believed that when the duty is removed the Dominion Goal Company will be able to distance all competition for this market, and the prospects for an output from the Nova Scotia mines and the development .f the Nova Scotia coal trade are exceedingly beyond anything that was dreamed of a few years ago. As the revenues of the Province are to receive twelve and one- half cents a ton royalty uptfn every ton raised it will be evident that if the expansion of coal reaches to 3,000,000 or 4,000,000 tons a year the Provincial revenues will be in a most flourishing condition and the government will be able to provide vastly more liber- ally for all the public services than has ever been done since Confederation. These facts are given because many persons in Nova Scotia seem still to be in doubt as to the work and objects of the Company, and outside of Cape Breton, where their work is carried on, the people generally are not fully aware of the ex- tent of the enterprise or the splendid manner in which the Company is piishing forward its undertakings. ■