CHAPTER XIII
KEY TO CANADA’S MINERAL WEALTH: A WARNING TO BRITISH CAPITALISTS
One department of the Federal Government of Canada presents the stirring spectacle of many scientists working at high pressure and in high spirits.
Savants in Great Britain are wont to act with a deliberation that might almost be called leisurely, the daily life of our learned societies being characterised by placidity rather than precipitancy. They have been investigating the minerals and the fauna and flora of their little country now for some centuries, and though there may be an insect or two still to be caught and classified, the matter is not pressing.
An extremely opposite state of things obtains in Canada. It was only the other day, so to speak, that it set up in business as a unity and a nation, and at that time next to nothing was known accurately about its natural features. Soil, rocks, climate, fish, trees, birds—none had been properly overhauled. The farmers, the miners, and the railway constructors called urgently for information that could not be supplied. In a word, there was a bewildering lack of all the precise knowledge on which every large community unconsciously rests.
And so the Federal Government, as one of their earliest concerns, set to work on a sort of scientific stock-taking—a process that is still in full blast. They got together all the good scientists they could lay their hands on—geologists, mineralogists, geographers, botanists, naturalists, chemists, meteorologists, ethnologists and the like—and hustled them off to find out all they could about Canada; and, since that sort of person is born rather than made, the Federal Government early found themselves confronting a shortage of human material—a kind of famine of scientists—which was the more regrettable since there was so much ground to be covered, such appalling arrears to overtake. However, recruits were imported, and educational facilities were provided for the rising generation of professors, and to-day there are in the Government service of Canada as fine and mobile an army of scientific men as, I imagine, could anywhere be found on this planet.
It makes one almost giddy to think of all those Government geologists hurrying every year across the country—one to study the economic minerals of New Brunswick, another to visit the goldfields of British Columbia, a third to tabulate the copper-bearing rocks of Sherbrooke, a fourth to visit the mica mines of Hudson Strait, a fifth to scrutinise the surface geology of the Great Plains, a sixth to collect facts about tin-bearing strata in Nova Scotia, a seventh to explore the raised shore-lines of the Blue Mountain escarpment. Some have been packed off at a moment’s notice—for example, to inspect a collapsing mountain (the people living at the base having become anxious), and to report upon a meteorite that had just fallen in somebody’s homestead (and which, when the scientist arrived, had already been sold for two hundred dollars). It does one’s heart good to think of the stream of scientists, booty laden and full of enthusiasm, returning at the end of the season: the triumphant mineralogist, with his diamond-bearing chromite, his apatite crystals, and his pink scapolite; the zealous zoologist, with eggs of the chickadee and the belted kingfisher, some rare fresh-water mussels, an albino skunk, and scores of marine fishes in alcohol; the brother naturalist, with treasure unthinkable of seaslugs, toads, and seaworms; the ethnologist, with his human skulls and bones, and his stone adzes and hammers; the perspiring palæontologist, with goodly parcels of fossil bryozoa, supplemented, it may be, by the tail of a scarce trilobite and the right posterior molar tooth of a ruminant belonging to the order Ovibos.
To give some idea of the industry and activity of these learned servants of the State, I will briefly outline the work accomplished by one naturalist in one season. Having put his “Catalogue of Canadian Birds” through the press, Mr. John Macoun made ready to depart for Vancouver Island, his preparations including the compilation of a list of all the plants that had been reported to occur there. Before starting he also superintended one assistant in arranging botanical sheets for the herbarium, and another assistant in re-labelling a quantity of mammal and bird skins. Then, having sought and obtained permission “to write up the entire natural history of Vancouver Island,” he departed to Victoria with an assistant, the two energetic enthusiasts at once setting to work to secure flowering plants and the eggs of migrating birds and “to collect the fauna and flora of the sea”—in which work they were “very successful.” By June they were at Departure Bay, “ranging the country for miles around” to tabulate the birds and secure samples of plants and trees. “I was also employed,” Mr. Macoun reported, “in collecting from the sea, especially sea-weeds.” Going posthaste to Nanaimo, he met by appointment another assistant, whereupon, securing a boat, they carried out some exhaustive dredging operations. One haul, at twenty-five fathoms, brought up sixty specimens of a rare hexactinellid sponge. They took 156 star-fish, 195 crabs of various kinds, over a hundred different sponges, “a fine collection of barnacles,” and “a very large collection of marine shells.” Both assistants “were indefatigable.” One went out every evening with a lamp and net and caught moths and beetles. “This collection alone numbered over 600 specimens.” The party captured 1,100 species of flowering plants, about 400 species of cryptogams, and nearly 150 species of sea weeds; and the naturalist decided that another season’s work would enable him “to write an exhaustive report of the whole fauna and flora of the island,” provided he again had those two most excellent assistants with him. Remembering he had promised to visit Rossland and inquire into the rotting of mine timbers there, he darted off on that mission, found that four species of fungus were responsible, explained that the evil would be prevented if the timber were treated with a strong saline solution, and then went hurrying back to Ottawa, where he set about naming a number of plants that had been received from Guelph, Winnipeg, Calgary, and other places. He also seriously tackled the question of the flora of the Ottawa district—after which, I dare say, Mr. Macoun began to feel tired.
When in Ottawa, I found myself fascinated by this scientific overhauling of the great Dominion, and an interest which at first was of an abstract and general character, presently took concrete and definite form. I decided to seek for an authoritative and comprehensive pronouncement concerning the mineral resources of the country, and for this purpose I sought an interview with Mr. R. W. Brock, the director of the Geological Survey.
“You are right,” he said, when, in opening up the subject, I suggested that investigations could not at present have advanced very far; “we are a long way from having measured the mineral wealth of this vast country. Much of the territory has not been explored in even the most cursory way, while anything like a detailed examination of the rocks has at present been possible in only very limited areas. Still, the information we have already accumulated is sufficient to reveal Canada’s main geological features, to supply a rough indication of the districts that will yield minerals, and to show that the Dominion is destined to become one of the greatest mining countries in the world. For the amount of mineral land awaiting the prospector is prodigious—the greatest, in fact, that now anywhere remains unexploited.”
I told Mr. Brock that, before going into the question of the wealth awaiting discovery, I should like to have from him a general statement of the valuable mineral deposits that had already come to light. Accordingly he was so good as to furnish me with the following particulars:
“Coal is abundant and is extensively worked in the eastern and western provinces. The more important mines are situated in Nova Scotia, British Columbia, and Alberta. New Brunswick produces small quantities of coal for local use, and lignites are mined to some extent in Saskatchewan. Iron is found in most parts of Canada, but only in Nova Scotia, Ontario, and Quebec is it as yet of industrial importance, and there it is developed on only a limited scale. Substantial progress is, however, being made, and notable expansion may be expected.
“Gold is worked in British Columbia, Yukon Territory, Ontario, Nova Scotia, and Quebec, and along certain rivers of Alberta. In British Columbia the lode mines now furnish the principal production, but placers are still of importance. Ontario and Nova Scotia have only lode mining. Elsewhere placer mining furnishes the gold. Silver is derived from the rich ores of Northern Ontario and the silver-lead mines of British Columbia. The extraordinary development of the silver district of Cobalt and Montreal River has placed that region in the premier position among the silver camps of the world. An important addition to the output of silver is contributed by the gold-copper ores of British Columbia. A certain amount is also produced in the copper-sulphur ores of Quebec.
“Copper is furnished by British Columbia, Ontario, and Quebec, and its production in the first-named province is rapidly expanding. Lead is almost entirely derived from the mines of British Columbia, but it also occurs in the other provinces. Zinc is widely distributed, but the production is as yet light and mostly from the lead mines of British Columbia. Nickel is largely confined to the mines of the Sudbury district in Ontario—mines that are, however, by far the most important in the world. A certain amount is produced in the Cobalt district, while prospects still farther north, resembling the Sudbury occurrences, are undergoing development. Manganese, in the form of its oxides, is produced intermittently in Nova Scotia and New Brunswick. Mercury has been furnished in small quantity by British Columbia.
“Platinum occurs in some gold placer deposits in British Columbia, and also in the nickel-copper ores of Sudbury. Tin and wolfram have recently been found in the gold veins of Nova Scotia. Wolfram also occurs in British Columbia and New Brunswick. Tin-bearing minerals have been discovered in some pegmatites of Eastern Ontario and Quebec. Arsenic is obtained in connection with gold ores in Eastern Ontario and in the silver ores of Cobalt. Antimony is produced to some extent in Nova Scotia. It is being developed in New Brunswick and at a few points in British Columbia. Chromite is mined in Quebec.
“Asbestos is the chief mining product of Quebec, and the deposits of this mineral in that province are the most important in the world. Graphite occurs in important deposits in Eastern Ontario and Quebec, but the industry is not fully developed. Gypsum is extensively mined in Nova Scotia and New Brunswick. It is also mined in Ontario. It occurs in other provinces as well, and is beginning to attract attention in British Columbia. Mica is an important product of Ontario and Quebec, where it occurs in shoots in veins. Some of the deposits are very large. Phosphate of lime, or apatite, is still produced, generally as a by-product of the mica mines. Corundum is found extensively in Eastern Ontario from deposits which, as regards purity and magnitude, are unique. Feldspar occurs in wonderful purity in Eastern Ontario and Quebec, and is of considerable industrial importance. Pyrites is now mined extensively in Ontario and to some extent in Quebec.
“Petroleum and natural gas are obtained in Ontario. Alberta is also yielding a large quantity of gas, and will probably develop petroleum fields. Gas and some oil are now being produced in New Brunswick. Salt of a very excellent quality is obtained in Ontario. New Brunswick and Manitoba also furnish a certain amount. Magnesite occurs in Quebec, and hydro-magnesite in British Columbia. Structural materials and clay products are found throughout the country, and their production is rapidly growing.”
“And now, Mr. Brock,” I said, “will you please tell me on what data you base your confident prophecy that Canada will become one of the richest mining countries in the world?”
“Well,” replied the head of the Geological Survey, “you must know that North America consists of a series of natural zones running roughly north and south, and therefore the vast mineral wealth that has been already discovered in the developed and populated southern, or United States, part of those zones, supplies a sure clue to the vast mineral wealth awaiting discovery in the northern, or Canadian, part, which is only now beginning to be developed and populated. That is no mere theoretical deduction. It is supported by accumulating facts. Thus geological explorers report the occurrence of the same minerals and the same disposition of strata in the north as one finds in the south. Moreover, if you examine the results obtained to-day by our most outlying camps, you will find that they repeat the results obtained by the southern camps at a corresponding stage of their development. Again, geological discoveries follow the opening up of each new section, and those discoveries all point to the same conclusion, namely, that Nature has made the Republic and the Dominion joint participators in a vast mineral heritage.”
“Will you please enumerate and define these geological provinces that are so indifferent to international boundaries?”
The map reproduced above, has been specially drawn for “Canada To-day and To-morrow,” by Mr. R. W. Brock (Director of the Geological Survey of the Dominion Government). It shows the great continuous geological zones which have yielded vast mineral wealth in settled southern areas, and of which—as high scientific authority confidently predicts—equally rich fields await exploitation in the as yet unsettled northern areas.
The numbering of the five geological zones follows the order in which they are mentioned in the accompanying chapter, namely, I, Appalachian province: II, Lowland province: III, Laurentian plateau: IV, Interior plain: V, Cordilleran belt.
“There are five main zones or provinces,” replied Mr. Brock. “First there is what may be called the Appalachian province, of which the Canadian portion embraces south-east Quebec and the maritime provinces. The Appalachian region is characterised by rock formations which range from pre-Cambrian to carboniferous, and which are typically disturbed and thrown into a succession of folds. You will be aware that some of the eastern United States are in the foremost rank of the world’s mineral and industrial districts. They occur in the Appalachian region, the best developed State being Pennsylvania, which produces domestic minerals to a yearly value of nearly £2,000 per square mile. The same minerals occur over the Appalachian extension into Canada. Important deposits of coal, iron, and gold are mined in Nova Scotia. Of lesser importance, but of considerable value, are the gypsum, stone, and building-material industries in that province, where manganese, antimony, tripolite, and barite are also mined, while some attention is paid to copper; indeed, Nova Scotia already has an annual mineral production of about £200 per square mile. The comparison between £200 and £2,000 may not seem impressive, but it bears a fair relation to the difference between the density of population in Pennsylvania and in Nova Scotia. That matter of population is, of course, vital, since mineral production, like agricultural production, passes with the development of a country from methods that are rough-and-ready to those that are ‘intensive.’ Expert authorities have estimated the coal reserves of Nova Scotia at 6,000,000,000 tons. The thickness of the carboniferous system is believed to be in some parts 16,000 feet, and at the Joggins, on the north arm of the Bay of Fundy, is a remarkable continuous section showing 14,570 feet of strata, including seventy seams of coal.
“In the matter of mineral development New Brunswick is still very backward. This is partly due to the covering of soil, but mainly to the forested state of large areas—conditions that make discoveries difficult. Indeed, very little of the country has been prospected. The principal products so far are gypsum, lime, coal, building material, grindstones, clay, and mineral waters. Iron promises to become important. Antimony is being mined, while copper, lead, silver, nickel, gold, etc., have been found. Shales rich in oils and ammonium salts occur in large quantity. We have just found very fine clay deposits in the maritime provinces.
“South-east Quebec is already a high producer of economic minerals. In addition to possessing the main asbestos mines of the world, it has important industries in chrome-iron ore, copper, and pyrites. Iron ores and gold also occur there. And so I think I have supplied you with plenty of reasons for agreeing that the Appalachian area may ultimately give as good an account of itself in Canada as it has in the United States.”
“And what of the next geological bond between the Stars and Stripes and the Union Jack?”
“Next in order,” replied Mr. Brock, “comes the Lowland province, embracing the southern portion of Ontario and the valley of the St. Lawrence. It consists mainly of flat-lying palæozoic rocks, and is, so to speak, an extension of part of the State of New York. On both sides of the international boundary the mineral products are the same—namely, clay, cement, and other building materials, as well as petroleum, natural gas, salt, gypsum, and other non-metallic products. They are extremely valuable, if they do not appeal to the imagination in quite the same manner as the metallic minerals.”
“The two geological areas you have dealt with so far,” I ventured to point out, “have covered only a portion of Eastern Canada.”
“Exactly,” replied Mr. Brock. “But the next geological province to be considered embraces about two million square miles, or more than one-half of the Dominion. It may conveniently be called the Laurentian plateau. It runs from Newfoundland to the eastern border of Manitoba, embracing the vast territories lying north of the St. Lawrence Valley, and enclosing Hudson Bay like a huge V. It is an area of pre-Cambrian rocks, and one extension passes into New York State (where it supports some large and varied mineral industries), and another extension crosses into Michigan, Wisconsin, and Minnesota (where it provides the Michigan copper mines and the great Lake Superior iron ranges).
“These pre-Cambrian rocks are remarkable for the variety of minerals they contain. Iron, copper, nickel, cobalt, silver, gold, platinum, lead, zinc, arsenic, pyrite, mica, apatite, graphite, feldspar, quartz, corundum, talc, actinolite, the rare earths, ornamental stones and gems, and building materials are found in the Laurentian plateau, and nearly all of them are being profitably mined. And since the list I have just given you is far from complete, it would perhaps be better to describe the wealth of the Laurentian plateau negatively. Diamonds have not yet been located in that geological region, though, I should add, as they have been found in glacial drift brought from that area, they undoubtedly occur there.
“So far as Canada is concerned, the plateau is still, in the main, an unvisited treasury. Over the greater part of the area there have been nothing but the most general scientific surveys. Our southern fringe of the plateau is the only Canadian part that is known, and even of that southern fringe merely a portion has been prospected. Of the more important discoveries in that southern fringe, you will not need to be reminded. There are the gold ranges of the Lake of the Woods; the silver of Thunder Bay; the iron ranges extending from Minnesota for hundreds of miles to Quebec; the copper rocks of Michipicoten and the Bruce mines; the Sudbury copper-nickel deposit; the Montreal River and Cobalt silver areas; the corundum deposits of Eastern Ontario, and the magnetites of Eastern Ontario and Quebec. It is true that few good merchantable iron deposits have been found in our extensive iron range formation; but in the Mesabi range—the richest in the world—only about two per cent. is iron ore, so that immediate discovery in the little prospected areas in Canada is scarcely to be expected.”
“And am I not right in supposing, Mr. Brock, that the most sensational mineral discoveries have been purely accidental?”
“That is so,” admitted the geologist. “The navvy, in making his excavations, has blundered upon immense treasure. Thus the greatest asbestos deposits of the world were brought to light because a track for the Quebec Central Railway happened to be blasted through them. Then take the case of Cobalt, now the premier silver camp. Although only a few miles from one of the earliest routes of travel in the country, and although only a few miles from a silver-lead deposit that has been known for a hundred and fifty years, Cobalt was discovered less than eight years ago, and then only because a railway chanced to be cut through a rich vein. It was a railway excavation, too, that revealed the Sudbury nickel deposits. Still, you must not run away with the idea that all the laurels have been won by the navvy. To mention only one of the ‘finds’ made by our staff, it was an officer of the survey who discovered the rich corundum deposit extending in a belt one hundred miles long. Yet that discovery serves, equally with those of the navvy, to illustrate the unprospected nature of Canada—even of those parts of Canada that have been populated for a considerable period. For that corundum was found in a district that had long been settled.
“What a field for explorers is that Laurentian plateau! It is not possible for the most pessimistic person to fear that Nature has, by a strange coincidence, concentrated all the mineral wealth in the only part that is populated—that southern fringe which, though still only imperfectly prospected, has yielded over four hundred million tons of iron ore, nearly five thousand million pounds of copper, and immense quantities of silver and the other minerals I have mentioned. The explorations of the geological survey have shown that, scattered over the whole area, are patches of all the various formations that go to make up the pre-Cambrian; while practically every mineral that occurs in the south has been noted by explorers in the north. It is therefore quite safe to assume that, in the great northern areas as yet unattacked by the pick of the prospector, are vast stores of minerals that will come to light when the country is opened up.”
I told Mr. Brock that, although he had dealt with only three of the geological provinces shared by Canada with the States, he had said enough to convince me that the Dominion possessed adequate mineral wealth to support its high destiny.
“Still,” said Mr. Brock, “there is more to be told; and this very imperfect survey of our mineral resources must not be broken off in the middle. I now come to the fourth geological province, which it is convenient to name the Interior Plain. It embraces Alberta and the bulk of Manitoba and Saskatchewan, extending across the border into the Dakotas. It is pre-eminently an agricultural country, and is notably deficient in metallic minerals, as might be expected, because it is underlain with a thick blanket of almost undisturbed cretaceous and tertiary sediment. Gold dredging is carried on in the sands and gravels of the North Saskatchewan River below Edmonton; gypsum is mined in Manitoba; salt occurs in that province and in the lower Athabasca region; but with those exceptions, and materials used in the building trades, the mineral production of the Interior Plain is almost entirely confined to fuels, which, however, are very important. Natural gas over a wide area and under great pressure has been tapped, and there is every indication of a large oil field in, at any rate, the northern portion of Alberta, while some oil has been encountered in the south-west. The lower cretaceous sandstones along the Athabasca River, where they come to the surface, are for miles saturated with bitumen. These tar sands will probably average twelve per cent. in maltha, or asphaltum. Mr. R. G. McConnell saw tar sands occupying about one thousand square miles, which, taking the thickness at his estimate of 150 feet, would represent nearly five thousand million tons of bitumen. The lignites of the eastern plains are useful for local purposes, and beds more highly bitumenised are met with as the mountains are approached. Mr. D. B. Dowling has satisfied himself that there are 7,500 square miles of coal land in Saskatchewan, and nearly twenty thousand square miles in Alberta, and he credits explored parts of the last-named province with four hundred million tons of anthracite, forty-four thousand million tons of bituminous coal, and sixty thousand million tons of lignite.”
“And the story of Canada’s wealth is still unfinished?” I asked.
“The most impressive part,” replied Mr. Brock, “has still to come. We have now to consider the fifth geological province—the Cordilleran Belt. In Canada it has a length of 1,300 and a width of 400 miles, and it extends across the western States, through Mexico, and into South America. Its rocks range from the oldest to the youngest formations. Vulcanism and mountain-building processes have repeatedly been active in that province. The Cordilleran Belt is recognised as one of the greatest mining regions in the world, it being noted principally for its gold, silver, copper and lead. Of the well-nigh incalculable wealth of gold and other minerals in California and Mexico I need not remind you. And the riches of the Cordilleran Belt in the south afford a sure clue to its riches in the north. In Canada and Alaska the geological province is still for the most part unprospected. But here and there, as you know, the wealth has been tapped, and last year (1909) British Columbia alone yielded minerals to the value of nearly £5,000,000. So far the Yukon has practically produced nothing but placer gold, but it has produced about £25,000,000 worth of it. While partial development has taken place along the international boundary line, and while some of the main streams have been imperfectly prospected for placer gold, the greater part of the Canadian section of the Cordilleran Belt is as yet untouched. Probably not a fifth has been prospected at all, not a twentieth prospected in detail, and not one area, however small, completely tested. The Belt in Canada is not merely rich in gold, silver, copper, lead and zinc, but it has enormous resources of excellent coal, varying from lignites to anthracite. Only the coal areas in the southern portion of British Columbia, and a few small areas on the Telkwa and Nass rivers, and on the Yukon, are at present known, but Mr. D. B. Dowling estimates that the prospected fields represent, in the Yukon, thirty-two million tons of anthracite, and the same quantity of bituminous coal, and, in British Columbia, twenty million tons of the former, and 38,642 million tons of the latter. Then, too, great unprospected areas are known to contain, in places, coal formations, and no doubt they will, when explored, add greatly to the reserves I have just mentioned. So far, production has not kept pace with discovery; but a largely increased output may be expected in the near future, for those regions supply the best steaming and coking coals anywhere to be obtained in the West, and new railways will facilitate distribution. Only about one-fifth of Alaska has been explored, and lack of transportation facilities hinders development there; but already Alaska has a large production, which shows that the Cordilleran Belt maintains its highly mineralised character throughout its length.”
“And now, Mr. Brock,” I said, “there is another matter about which I should like you to express your views. How comes it that, when Canada possesses all this mineral wealth, the English people have, in the past, so often burnt their fingers in financing Canadian mines?”
“I am very glad,” replied Mr. Brock thoughtfully, “you have raised this question, which is of great importance. Not all have burnt their fingers, but there have been too many instances, some of them notorious. You are thinking mainly, I presume, about events that are rather more than fifteen years old—events which resulted, necessarily but most unfortunately, in deflecting British capital from Canada; though happily, thanks to the lapse of time and the logic of facts, the financial suspicion and sensitiveness then generated have passed away. Of course in those affairs there were deplorable elements for which Canada was in no way responsible. One name in particular will be present in both our minds; but, at this time of day, the personal side of the matter need not be recalled; and I will only say generally that we had nothing to do with the ludicrous over-capitalising of good properties, and the crippling process of establishing offices and staffs on a scale which, though undoubtedly princely and imposing, was, from the practical point of view, not merely superfluous but ineffective.
“Speaking generally,” continued Mr. Brock, “the causes of non-success are bad investment, bad management, and perhaps in some cases bad luck. There have not been many bad investments by mining companies that know what they are about, that employ experienced, technical men to look over the field and closely examine a property before purchase, and that move cautiously and intelligently, doing their developments step by step. It is quite common to see the investments made by men who are not sufficiently competent or experienced to form a sound judgment, or who do not carry out an adequate personal investigation before effecting their purchases. Sometimes it is very evident that knowledge and training were not the qualifications that led to their selection for such responsible work. It is by the merest chance if those investments turn out satisfactorily. Unfortunately, in every country, and in Canada as elsewhere, there are people ready to profit by such visitors. The knowing ones promptly take their mental measure, learn what financial backing they have, and very likely bait a trap for them.”
“In other words,” I could not forbear to observe, “the innocent Englishman falls among thieves.”
“That,” said Mr. Brock quietly, “is a harsh but not unwarranted way of putting it. However, a man who is willing to buy a pig in a bag does not require to leave home to find those willing to accommodate him. I am prompted at once to say two things: in the first place, the practices to which I refer are confined to a small minority of a large and honourable class of men; and, secondly, those who act in this way are actuated by a belief that, where the wits of one man are pitted against those of another, the keener party is entitled to any advantage he can secure. These men are, you must remember, born gamblers; and they lay themselves out to win, not so much for the sake of the material profit (they are mostly men of substance) as for the sport of the thing.”
“Fraud for fraud’s sake,” I interjected.
“Please understand,” Mr. Brock again reminded me, “that I am explaining, not exculpating, their conduct. And, as a matter of fact, no resentment that you can express at these miscarriages of capital can equal the regret they excite among responsible people in this country. For British capital is an important factor in Canada’s development; and it is therefore greatly to the interests of Canada that British capital should, in all cases, be invested in mines that will pay well, and thereby serve as a magnet for further British capital.”
“Will you,” I asked, “make the position clearer by indicating the sort of meshes in which my unsuspecting countrymen get entangled?”
“Well,” said Mr. Brock, “occasionally they are represented by a man who pays too much attention to what he is told. Such a man may travel over a good deal of territory, meet a number of mining folk, and hear a great deal about the exceptional merits of, let us say, the M. Tee property, until he places an undue valuation upon it, and is consumed by a desire to become its possessor.”
“And so,” I exclaimed, “that most treacherous form of conspiracy is considered by the guilty parties as sport?”
“Call it what you will,” Mr. Brock replied, “but the interests of Canada, as well as of the English investor, demand that a different type of representative should be engaged.
“Another cause of non-success has been the time at which British capital has been invested. It has come in on the crest of a boom, a prospect being purchased as, and at the price of, a mine. When the prospect fails to develop into a mine—and only a very small percentage of prospects can reasonably be expected so to develop—one more investment is announced as a failure. If prospects are invested in, the investors should be prepared to take up a considerable number, and only after careful selection, so that there may be a reasonable chance of one of them developing into a mine. The selection should be made on the best possible technical advice, which should include the recommendation of a reputable expert who has local knowledge. The mining engineers of Canada are as intelligent and reliable as those to be found elsewhere, and they have their local reputations at stake and—I am sure I can add—their country’s good at heart. That expert local knowledge is the best insurance one can have against an unfortunate investment. No matter how tempting an option may seem, it should not be taken up until there has been a personal investigation by, and a favourable report from, an expert of professional standing and local knowledge. When that principle is more generally understood and acted upon, Canadian mines will become reliable and prosperous investments for British capital, instead of mere speculations.
“You are not altogether free from the wild-cat promoter. There have been instances of properties being purchased, without regard to their merit or lack of merit, in a district that happened to be in the public eye, and, following the appointment of a management calculated to command confidence, the investor has been invited to subscribe for stock. In the case of property purchased in such a way, it would not be at all surprising if the best management in the world should fail to achieve success.
“Of lavish and superfluous expenditure on home offices I have already spoken. At the mine itself there has also been, in some instances, a good deal of money wasted on excessive plant and improvements—notably on permanent works when only those of a temporary character were warranted. This extravagance has resulted largely from a want of familiarity with local conditions.
“But the worst mistake of all is to look after the details of management in Great Britain. Efficiency is impossible under those conditions. The management must be on the spot. Put in a man with the requisite knowledge and character and give him a free hand. If his work prove unsatisfactory, dismiss him and get somebody else; but so long as he is manager let him act as such. Have a home man if you like as consulting engineer. Let him go out and decide the general plan of development; but give the local manager a free hand in carrying out the campaign. Let the consulting engineer inspect his work, and learn his reasons for having run this cross-cut and that drift; let the consulting engineer decide whether he is doing well or ill, whether he is saving money or wasting it, whether he should be retained or dismissed; but do not relieve the local manager of responsibility. Do not have him work on cabled instructions based on cabled reports and office maps, and then expect efficient management and a successful mine. If he needs assistance and advice he needs them at the mine, and that is where he should have them.”
Those words, coming from the foremost Government geologist of Canada, carry great weight; and I hope Mr. Brock’s counsel will be taken to heart by the City of London.
And now—not to close this chapter in a minor key—I will glance briefly at Canada’s mineral production in 1910. It represented a value of £25,000,000, or rather more than a 14 per cent. advance on the figures for the previous year. Coal occupied the premier place, with a value of, approximately, £6,000,000. Silver came next (£3,420,000), while pig iron, nickel and gold each yielded a total in excess of £2,000,000. They were succeeded in the scale of value by copper and asbestos.