Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-11-11

to the Government upon all ore raised,
nickel, silver, or other. This law was moi
made retroactive, but applied only to lands
not patented or applied for up to that date.
Causes of the Depression.
Moved by the almost fearful expostula.
tion of the prospectors, the Government
and the Legislature agreed to modification
of their proposed policy, so as to exempt all
| mining lands from royalty until some years
after the patent was issued. In the case OF
nickel the term of exemption was fixed at
four years The royalty is 8 per cent on
the value of the ore at the pits mouth.
Following these changes came severe
depression in the nickel region. During
the summer Just closed not half a dozen
prospecting parties have been in the woods,
where in the previous summer there were
hundreds. The contention of the provin-
cial Government is that the new law is not
the cause of this change for the worse, but
that it is due to the failure Of the coun-
try in the late Dominion elections to de-
clare for reciprocity with the Unite States.
There can be no doubt in the minds Of rea.
sonable men that with reciprocity
the chances of the nickel district
would be very much improved. There
is equally little doubt among those
who have fairly considered the question
that the bare fact of imposing o royalty has
had the effect of frightening away American
capitalists, and it is to Americans, after all,
that the people must look for the develop
ment of mining.
Canadians have not got into the habit of
investing in mines, and the work of inter
esting Englishmen is too much like trout
fishing to be anything more than exhllar-
ating pastime. Americans are not accus-
toned to the royalty system, and they
deeply distrust it. They argue that Gov
ernment that would adopt such system
might some day make it retroactive, or SO
increase it as to virtually confscate the
mines after good money had been spent in
developing them.
A Protest Against Royalties.
There is a great deal of kicking in the
Sudbury district about the royalties, and q
determined effort will be made to have the
law repealed. This is almost sure to be
without effect, for both political parties in
the Legisture Joined in supporting the new
law, and the mining interest as yet is young
and weak. People will have to accommo-
date themselves to the royalties for some
time to come. This fact is being recognized,
and already, after very dull summer, there
are indications of increasing interest, and
work.
The actual work of mining is confined al
most wholly to three large companies. Of
these the most important in many ways is
the American Copper Company. This is an
American concern, having its headquarters
in Cleveland, Ohio, and identified very
closely with the Standard Oil Company. It
has works which represent an investment of
more than 1000, 900, perhaps more than
S2,Oo0,000. 1t operations appear to the out
slider erratic, so erratic that they are not &C
counted for in any wav so satisfactorily as
by the supposition that 'freeze-out game"
is in progress among the proprietors The
works are extensively carried on, but not up
to their capacity.
Another company is Canadian concern
the Dominion Mineral Company-the
principal owner being Mr.. Duncan Nc
Intyre, of Montreal, one of the original
Canadian Pacific Railway syndicate. This
company has some of the very richest
nickel lands in the district. 1t works under
contract with refners, SO that it never has
any stock on hand
Tho Future Still Uncertain.
The third large company is made up. of
the Vivians' interest. The Vivians are one
of the oldest, and probably the largest, of
the nickel manufacturing concerns in Great
Britain, their works being in Swansea,
Wales They have nickel mines in various
parts of the world. A part of the plant used
in their Sudbury property was until lately
in use in Norway. The mine there was dis
and the smelters and other ma
chinery transported and re-erected here.
The presence of these people is the most
hopeful feature of the district. No house
in the world probably knows more about
nickel or has clearer interest in getting
out the metal, apart from all speculating in
mines. The fact that it seeks the Sudbury
region is almost conclusive proof that the
ore is worth working.
AS vet the nickel business is in an unset
tied state. There are great hopes enter
tanned of the future, but no person knows
exactly upon what these hopes are based,
for the reason that the experiments to de-
termine the place of nickel in the industrial
arts are still In progress, as, also, are the
of the district which hopes to
supply the world with the metal. One
thing is reasonably clear: Nickel must be
supplied at lower rate than to-day if it is
to be generally used in place of steel for
structural purposes. Even 4 per cent
alloy adds over $50 to the cost of ton of
steel. The saving in weight through the
greater tensile strength of the material does
not compensate for this higher price. The
exigencies of war may make it necessary for
the nations to use this material to coat their
ships, and other uses may be found for it,
but this is yet to be proved. Meantime,
in many places are experiment.
ing with view to finding some cheap pro-
cess of treating the ore, the prospect being
of early success.