J. A. Currie, of Toronto, issued $500,000 of 7 per cent. cumulative preference stock. Mr. Walter Kennedy, of Pittsburg, the Consulting Engineer, addressed a meeting of the Board of Trade in Toronto and was very optimistic as to the prospects of the concern. The Prospectus of the Company stated that a blast furnace would be constructed at once; that raw material would be obtained from the Helen mine under Mr. Clergue's co-operation; and that the general objects for which the money was required were the establishment of blast furnaces, steel plant and rolling mills. On June 30th, it was announced that this concern had been taken over by the Cramp Steel Company, Limited, with many millions behind it; that Dr. W. Seward Webb and Mr. J. Wesley Allison would represent the Vanderbilt interest on its Directorate and Mr. Harry Burrage that of the Rockefellers; that Colonel Chandler, President of the Postal Telegraph Cable Company would also become a Director; and that Messrs. Clergue, Long, Matthews and Angell would retire. It was stated to be the only concern in Canada, except the Dominion Steel Company, which owned both iron ranges and coal beds. About eight hundred acres of excellent iron land were said to have been secured near Parry Sound and some 10,000 acres of fine coal land in Virginia. Iron and On March 8th and in connection with the recently issued Prospectus of the Dominion Iron and Steel Co., of Sydney, C.B., Mr. Aulay Morrison brought up in the House of Commons the question of Government bounties to this particular industry. Mr. Moxham in his Prospectus had declared that if the extended production of the Company's works was realized, a total sum of $8,095,000 would be received in bounties from the Dominion Government, between 1901 and 1907. It might, Mr. Morrison pointed out, be very much more, while other concerns promised large production along the same lines. He feared, therefore, that the demands upon the Government might be unduly large and, in view of the fact that the Cape Breton Company had a capital of $28,000,000 and the support of great financial magnates it could hardly be contended that the bounty was essential to success. would like to know if it would not be possible, without invading vested rights, to in some way limit the application of the principle and the growth of still greater invested rights in this connection. These were hardly struggling industries and the objects of the Statutes of 1896, 1897 and 1899 were, therefore, being practically if not technically infringed. He The Minister of Finance, (Mr. Fielding), declined to give a definite answer which might tie the hands of the Government. If the bounty was right when no one was benefiting by it, or using it, the fact of success having come at last and of present industrial development promising large demands upon the country as a result of the policy did not make the bounty wrong. He pointed out, however, that by the terms of the Act these bounties would be gradually reduced so as to cease to exist in five years from the present time. Upon the whole, they were not to be regretted and appearances indicated a vast development of business and industry as a partial result. The Hon. E. G. Prior strongly supported the bounty policy and hoped for its extension to the lead refining and shipbuilding interests of British Columbia. During the Budget debate the subject of bounties came in for considerable discussion-largely, however, in connection with beet sugar production. Mr. Clarke Wallace on March 18th sarcastically asked the Government how the practice of giving away $3.00 of the people's money for every ton of pig iron produced and $3.00 more for every ton converted into steel or wrought iron could be termed a policy for revenue? Mr. Fielding on March 14th had stated the necessity of providing a large sum for these bounties. In view of the development in the iron and steel industry, Mr. Wallace thought that this would be $1,000,000 at least, and probably a good deal more, in the current year. The Iron The development of these interests on Cape Breton Island was the pivotal element of Nova Scotian progress in 1901 and attracted wide attention throughout Canada, Great Britain and the United States. The Government bounty on the output of pig iron which was expected to net $8,000,000 in the next few years; the inexhaustible supplies in the coal beds at Sydney which had been estimated at a possible capacity of 3,000,000 tons annually for 1,000 years; the close proximity of limestone as well as coal to the smelters; the possession of a deep, safe and commodious harbour at Sydney; the ownership of a bed of the best iron in the world on Belle Isle-situated about 35 miles from St. John's, Newfoundland, with a deep water passage of 300 miles to Sydney and in which it had been stated by Mr. P. T. McGrath, of the St. John's Herald, that there were 28,000,000 tons of ore in sight; were some of the elements which had gone into the making of this industry and the changing of Sydney in 18 months from a village of 3,000 people to a city of 10,000 with a great smelting plant and a world-wide reputation. The plant included four blast furnaces of a steel mill, 400 coke ovens, foundries, engine houses and every requisite for the creation of what the founder of the industry-Mr. H. M. Whitney, of Boston-expected to make a rival to the greatest establishments in the United States or anywhere else. On February 15, 1901, Mr. A. J. Moxham, General Manager of the Dominion Iron and Steel Company, of Sydney, addressed the Toronto Board of Trade. He dwelt at considerable length upon the cost of making steel and obtaining the ingredients. The cheapest steel centres in the world were the Middlesborough district in England, the Central, West and Alabama regions in the United States and the Luxembourg district in Germany. The American region was the best of the three in this connection and, according to figures and calculations which he gave, Cape Breton was considerably cheaper. At Sydney there was the lowest assemblage cost in the world. "As against the Pittsburg cost, it represents a saving of $2.45 per ton." He spoke enthusiastically of the possibilities of Cape Breton and its capital. So great is this promise that it has ceased to be local. It has ceased to be sectional. It has become international in its influence. To-day Sydney is a familiar name to every steel maker in England and before another year rolls round the leaders ot this industry will have been with us to see for themselves the new centre. At this moment Sydney is debated with doubt and misgiving by the large German syndicates, and in the States the strength of her position is conceded by every expert. Canada alone at this moment does not realize how splendid an opportunity is within her control." A week after this speech much interest was aroused by the statement that the Morgan syndicate in the United States had acquired the Iron and Steel works at Sydney for a price of something over $50,000,000. Mr. H. M. Whitney, the President and the man who had started the undertaking in Nova Scotia and obtained the necessary capital and the co-operation of the Provincial Government, hastened to deny the rumour. The belief, however, seemed to gain ground that there was something going on and Mr. Whitney at once telegraphed the Montreal Star, on February 27th, in most distinct and categorical terms of denial. "I have heretofore stated that there is no truth in report that Dominion Iron and Steel Company has sold out to Morgan syndicate. I do not know how I can be more explicit. Nor have there been any negotiations looking to such purchase. Neither is there likely to be any temptation offered in the way of change of securities which would induce stockholders of Steel Čompany to part with their property. Considering our natural advantages and our low fixed charges we occupy a unique and impregnable position. We shall join no syndicate but shall go on and develop our enterprise on lines originally projected, which results in the actual making of iron have demonstrated to be sound." As illustrating the advantages in shipment which Sydney possesses over Pittsburg, Pennsylvania and Birmingham, Alabama, the Star of the same date published the following table of distances-the route from Sydney being also entirely by water and therefore cheaper than the partly-rail route of the two other places named : These figures indicated that Sydney was not only ahead in distance from the markets of the world but also in having cheap water transportation all the way. Following the rumoured acquisition of the Sydney works came a lengthy discussion in the Canadian press of the possible effects upon Canada of the new and immense amalgamation of American iron and steel interests. Messrs. Whitney and Moxham and Clergue all took the public ground that Canadian industries in this connection would stand clear and fight their own battles. On March 4th, Mr. Moxham was in Ottawa and held a private consultation with members of the Dominion Cabinet. In the middle of the month lists were opened for the issue of $3,000,000, 7 per cent. preferred stock of the Dominion Iron and Steel Company, Limited, of Sydney. The Prospectus announced the Directors to be Mr. H. M. Whitney, President; Mr. A. J. Moxham, General Manager; Messrs. H. F. Dimock and A. H. Paget, of New York; the Hon. George A. Cox and Mr. Elias Rogers, of Toronto; Sir William Van Horne and Messrs. James Ross, R. B. Angus and Robert McKay, of Montreal; the Hon. David McKeen and Messrs. W. B. Ross, K.C., and B. F. Pearson, of Halifax; and Mr. J. S. McLennan, of Boston. It was estimated that the product of the Company's works would be 300,000 tons of pig iron and 60,000 tons of steel blooms in 1901, and thereafter 400,000 tons of iron and steel per annum. At this rate the amount of the Government bounty to which they would be entitled in the next seven years was placed at $8,095,000. The capital was stated to be $15,000,000 of common stock issued and fully paid, $5,000,000 of 7 per cent. cumulative preference stock-of which $3,000,000 was now being issued-and $8,000,000 first mortgage 5 per cent. gold bonds. Writing in the London Times of April 9th, a special correspondent gave a glowing picture of this industry. The iron ore, as obtained at Belle Isle, near the Newfoundland coast, was described as of immense quantity and capacity, easily worked and so close to deep water that the expense of mining and handling was reduced to a minimum. Ships of 5,000 tons burden could load within a short distance of the mine and deliver the ore 300 miles away at Cape Breton within 200 yards of the furance mouth. Limestone, the second smelting essential, was found close at hand in an inexhaustible quantity. As to coal, Sydney was more than fortunate. "The deposits of good coal in the immediate vicinity of the town, the seams extending far out under the sea, are among the most important in the world." The cost of delivering iron ore to the furnace was estimated at $1.25, and limestone at 60 cents per ton. The Company was stated as claiming that they could put the finished steel product on the market, within a short time, at $6 a ton below the Pittsburg rate. Mr. James Ross, Vice-President of the Montreal Street Railway and a Director of the Cape Breton concern, returned home on April 19th from a visit to England and was interviewed by the Gazette. He spoke enthusiastically of the scope and possibilities of the industry at Sydney. "One firm in England has contracted to take yearly from the Dominion Iron and Steel Company Works no less than 150,000 tons of pig iron representing at the present prices a sum of money well on to three millions of dollars." He was not at all afraid of the American combinations as he believed their interest account would be too heavy to render the competition troublesome. As to steel rails he declared that as soon as they had completed the works for that branch of their business there was no doubt in his mind as to Cape Breton being able to compete successfully with the United States, Belgium and Britain. His next Speaking to the Morning Post, of London, during a visit to England in May, the Hon. J. W. Longley described the work of the Company in terms of strong praise. In 1893 Mr. Whitney, of Boston, had purchased seven coal mines on Cape Breton Island-then producing about 700,000 tons annually and estimated to produce next year 5,000,000 tons. Then he started coke ovens at Everett, Mass., to consume the coal and supply gas to the City of Boston. steps were the purchase of iron ores in Belle Isle and the erection of huge iron works at Sydney. Mr. Longley stated that $13,000,000 had been thus expended to date. Mr. Moxham, a wealthy Pennsylvania mine owner, had taken a million dollars worth of stock and the managership of these interests at $50,000 a year salary. He thought that British capitalists should interest themselves in this great development and help in building up an industry which would hold its own against the huge American trust just formed. In times of scarcity or high price it would also pay England to get her coal from Nova Scotia instead of the United States. The Meanwhile, on June 12th, two concerns most intimately associated with the financial and industrial development of the Cape Breton part of the Province held their meetings in Montreal. Mr. H. M. Whitney occupied the chair on each occasion. The statement of the Dominion Iron and Steel Company gave the capital (elsewhere given in detail) as $28,000,000, with bills payable of $90,808 and accounts due of $545,848-a total liability of $28,636,657. credit side showed $14,551,480 as the value of the Company's property; a plant valued at $9,668,406; preferred stock unpaid of $1,205,583; and the cash in banks, with certain miscellancous sums, made the total of $28,636,657. The Dominion Coal Company stated an estimated output for 1902 of $2,600,000 tons with an actual output of 884,000 tons in 1895, 1,061,669 tons in 1898 and 2,044,877 tons in their business year 1901. A large amount of money had been spent during the year in improvements and extensions; Mr. C. Shields had been appointed General Manager; 10,000 shares of preferred stock had been sold at $110 per share; $95,743 had been added to the sinking fund; the net income and net proceeds from sale of coal amounted to $687,294; and the value of the property account was included amongst the assets of $22,705,718 as being $20,197,791. The liabilities included $15,000,000 of capital stock, common, $3,000,000 of preferred stock, $2,801,500 of first mortgage bonds, accounts payable of $78,758 and notes payable of $1,105,000. The surplus for the year was $159,181 as against $433,662 in 1900. Mr. Whitney was re-elected President of both companies. To the Montreal Star on August 22nd following, Mr. A. J. Moxham stated that the development was steadily going on; that the furnaces |