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?”
[Illustration: ZONES OF MINERAL WEALTH]
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.