INFLUENCE OF FREE TRADE WITH THE UNITED STATES UPON THE Thomas Frood-The commercial barriers between Canada and the United States The commercial barriers prevent have tended largely to prevent the development of the mining industry by hinder- a development of ing the employment of American capital in mining operations, and also by depriving the mining inus of the American market. If we had free access to the markets of the United dustry. States I have no doubt there would be a great increase in the amount of work at the mines in Canada, and a great impetus would be given to the mining industry generally. Most of the capital invested in mining in this district, including Sudbury, is American. Some ore has been shipped to England from Sudbury, and some also to the States. Entering the States there is a duty of $2 a ton on the ore, while there is a very heavy duty on machinery coming into Canada. This is very hard on those engaged in mining, and gives rise to a great deal of complaint. W. H. Plummer-In the Algoma district two or three new companies have been organised, and they are principally Americans. More American than English American and capital is being invested at the present time in this section. I do not think that so English capital. far any company has given the district a fair trial. The interests of English companies are not as carefully looked after as is the case with the American companies. Somehow they fail to get the proper men, and they go into heavy expenditures from the commencement; this has had the effect of discouraging the investment of English capital in the district. I don't think the failure of the English companies The English should cause any discouragement, however. Their want of success has been due companies altogether to their injudicious expenditure of money, and I have no doubt that their properties may yet be worked to pay. in unfortunate. P. C. Campbell-The removal of the duties by the American government would tend very much to the development of the mining industry here. Free trade Algoma needs would be the best thing for our mineral development; unrestricted reciprocity is free trade. the one thing needed by the district of Algoma. Much more American than English capital is being invested in our mining properties; there is no use trying to sell to English and Canadian capitalists; the only practical men to invest and operate are the Americans. Unrestricted reciprocity with the States would bring any amount of capital from the American side, and the development of the country would then have the effect of inducing English capital; but the trouble is that the English will send some fellow here that knows nothing about the business. Any development that has been done in this section, with the exception of the American and Bruce mines, has been done by American capital. The English companies seem to send men out here as managers who don't know anything about their business, or the requirements adapted to this country, and consequently a great deal of money is spent to very little advantage. The Americans, on the other hand, send thoroughly practical men, who understand their business and think of something else than putting on airs. The English works that have failed have generally been unsuccessful on account of incompetent management. English management. salt. E. McCharles-The removal of the duty on iron ore would have, I think, the effect of inducing Americans to invest in iron lands on this side. If machinery Effect of duty on were allowed to come in free it would help mining in this section. Anything that iron ore, mining would tend to cheapen the expense of developing property would have that effect. machinery and Our iron is as good as any the Americans have, and our salt is a great deal better. In Michigan the production of salt has increased immensely within the last few years, while here it has remained stationary. That is owing to the duty, and were it removed the increase in the production of salt in this country would be immense. ore. John S. Skewes-If the duty were removed and lead ore allowed free into the United States States, I think it would be fully as good a market as England. If that market market for lead were opened to us we could resume work at once and carry it on successfully; we could ship the are direct to Chicago. We are only nine miles from a shipping point, and the winter roads are good. beneficial. R. E. Bailey-Of course the removal of the duty would be to a certain extent Removal of the beneficial. Freer trade between the two countries would no doubt help the devel- duty would be opment of the mining properties here; it would encourage people to come here. James Stobie--For iron and copper I would expect to find a market in the Iron and copper, States. I think the smelting could be done here, as the importing of the coal would be cheaper than the exporting of the ore. There is no doubt that the American duties greatly interfere with the development of iron and copper mining. The duty hinders trade. Duty on machinery. Copper. Dr. Edward Peters-Were the duty taken off it would of course be a gain to that extent, unless the price fell and thus offset that advantage. Francis Sperry-It would be a very great advantage to have free entrance for our ores to the markets of the United States. Francis Andrews-The machinery we use at the Sudbury mines is imported from the States, the duty being 35 per cent. It would as-ist mining very much if machinery were placed on the free list. We have imported about $15,000 worth of machinery and will soon have to import a great deal more- $20,000 or $30,000 more. B. E. Charlton-If the American duty were removed off copper it would be a great help. If it were removed small mines could be worked. S. J. Dawson-Some of the machinery requisite for mining can be obtained in Canada; other parts cannot and have to be imp rted. I think it would be wise to Machinery, iron, admit such machinery as is not manufactured in the country at a nominal duty. silver and galena. Machinery for silver mining. Iron ore. Mining machinery. Iron ore and For iron the market is in the States. Silver so far has been sent to the States, but on silver there is no duty; it enters free. On galena there is a very heavy duty. In the case of galena containing silver being shipped, if the silver were the more valuable it would go in free, but in some cases the examination of the ore to ascertain the quality might embarrass the exporter. If soft coal were allowed in free the ore could be smelted here. Coal costs in Cleveland from $1.75 to $2.50 a ton; the freight to Port Arthur is 70 cents and the duty is 60 cents. You can well understand, therefore, that the removal of the duty would make a great difference. The mineral resources of this district are now attracting more attention than ever before, and more men of capital and experience are coming into the country. Most of the capital that is coming in is from the United States. Development without foreign capital would be very much slower; the bulk of the capital is American, but there is some English. Thomas Hooper-The tariff works against us very much. The manufacturers of Canada are not at all up to the times in the manufacture of mining machinery, or in anything else that belongs to mining. In order to get the best we have to go to the other side of the line, and if we do not get the best it is better to not get any at all; the most modern and most improved machinery is what we want, and we must get it no matter what the duty is. The duty is 30 per cent. Candles are quite an item with us in mining. We must have candles made without grease; they are not to be had in Canada and we have to import them, the duty being 5 cents per pound and 30 per cent. The candles that we use are made of mutton tallow, paraffine wax and resin. Anything that we export does not pay duty, but anything we import to improve the country pays an exorbitant duty. I have seen good iron ore here, but it could not be shipped at all on account of the duty; the removal of the duty would be necessary to render it possible to mine iron ore in Canada. T. H. Trethewey-Our machinery at East Silver Mountain mine, with the exception of our drills, has been got mostly in Canada. Our pumps were manufactured in Toronto by Williams. I do not think if we were erecting our stamp mill that we could get the machinery in Canada; we would have to import at any rate most of it. The removal therefor of the duty on machinery would be a great assistance to miners. What machinery we have purchased in Canada has been very good. Henry II. Nichols-If we build works it will be necessary for us to import a great part of our machinery, and I think the government should allow that which cannot be had in Canada to come in free. Peter McKellar-If the American duty were taken off iron we would have a market at once in the United States. It is not certain that we can do anything with our iron till the duty is taken off. It might be smelted here with the protecsmelting plant. tion of the present duty, but in that case machinery would have to be imported, and it would help us to have the duty taken off that machinery. It has mostly been American capital that has been invested in mining here. James Conmee.-By far the greater amount of capital in the mines and quarries here is American. The iron locations on our side are not being developed because Capital, markets of the American tariff and the want of a railway. The railway would be a cheap one to build, and with that railway built and the duty taken off the ore, there would a great future before the country. We have got neither the capital nor the markets; we require both, and we would get both if the duties were once removed. and railway communication necessary. be Some of the machinery that is used in mining can be got in Canada, but a great part has to be imported from the States and a heavy duty has to be paid. William Margach-Nearly two-thirds of the land taken up in the Hunter's island district has been taken by Americans, and much the greater part of the Iron ores in the capital is American. A railway is badly wanted; but iron will not be worth any. Hunter's island thing to this country till the duty is removed. The Americans are purchasing under the impression that a railway will be built, and hoping that the duty will be taken off. district. D. F. Burke-It seems to me the mineral whose development would do the country the most good is iron. If we had reciprocity we could put out at least $8,000,000 worth of ore a year, and that amount of money would come annually Free trade into this district. There seems to be no doubt, judging from the reports of experi- would encourage iron mining and enced men, that iron exists all over the district of Algoma in very large quantities. sandstone A railroad would do much to open up the country, but there would still be the quarrying. duty of 75 cents a ton to fight. The Attikokan location would have been purchased by Americans if they had not thought there would be trouble between the two governments, and that their capital would be unsafe on that account. If reciprocity were adopted, I have no doubt that inside of three years we would ship out at least a million tons of ore per annum; that is supposing the railway to be built as well. The same railway would open up at least 175 miles of good agricultural country out of 300, the length of the line. Part of the country across Thunder bay is all white sandstone, while the red sandstone of Nipigon is famous. If we had reciprocity, inside of five years a great trade in building stone would be opened up between here and all the great cities in the States. There is a red granite here, said to be equal to the Peterhead, and there is a pretty serpentine marble upon the Nipigon river close to the Hudson bay post. Joseph Baden-We should find a market for our iron ores at Chicago and Pittsburg. We can send ore to Chicago from Kingston for less than it can be brought The market for from the lake Superior mines to Chicago. I think we could tind a good market iron ore. there. The tariff is the chief, in fact the only interference with successful mining in this region. If the duty were removed the country would develop and mining would go on. The capital invested in mining in this section is nearly altogether American, except some little Canadian. The Bedford company is a Canadian company. The Kingston & Pembroke has absorbed all the other companies. Its Capital invested capital is $5,000,000 all paid up. Property is put in to represent it, except a cerin mining enterprise. tain amount of stock that was sold for working capital. The Wilbur ore goes to B. W. Folger—Most of our ore goes to Cleveland. Pittsburg; they seem to like it and say it is as good steel ore as they get. Ore running 55 per cent. would sell at Kingston at from $3 to $3.50 a ton. The freight Frontenac and from here to Cleveland is 75 cents, or less than half what it is from lake Superior. If the duties were taken off we would get that much more profit and it would greatly encourage the developing of properties. Lanark iron ore. eastern Ontario Nathaniel Moore-I am favorably impressed with the occurrence of iron in the Kingston district. I believe there is plenty of ore here and of good quality. Quality of While the veins may not be as large as those of the lake Superior district, I think and lake that as far as length and depth are concerned they are as good. I cannot speak Superior ores in regard to that from experience. I worked long ago on the old Dalhousie mine, compared. and I do not see why the veins should not be as good. As to quality, I think they compare very favorably with the lake Superior ore. Of course here there are advantages in the matter of freight, but there is the duty against us. We may have a little the advantage in cheaper labor, but there is not much difference. J. S. Campbell-I cannot say whether we will resume work at our Calabogie Calabogie iron mines. If the American duty were removed we could resume and mine profitably. W. H. Wylie-If the American duties were taken off it would help to develop the iron properties, but I do not know that it would benefit the other ores. Wm. Caldwell-There has not been a good market for our own iron ore for the Iron ores. last few years, while there has been a very large development in the United States. If the American duties were removed we could compete with the American mines successfully. R. C. Clute-I think it is impossible to develop our mines unless we have free trade with the United States. I think the present law excludes capital, and both American capital capital and market are required. It would be possible to smelt iron here under a and market rehigh tariff, just as it would be to raise oranges, but it would not benefit the people. quired. Our natural market. Free trade or a higher duty. I have had communication with people on the other side, and am convinced that there would be no difficulty in developing our mines if we had free trade with the States. If we were on equal terms we could compete with the iron ore of the lake Superior district. Our position is very favorable, yet with all in our favor we have been able to do nothing, while from northern Michigan some three million tons were shipped last year. W. H. Wallbridge-The American is the natural market of this country, and is necessary to the development of our mines. William Kelley-What is wanted to develop the mines of the country is unrestricted reciprocity or commercial union, and if the Americans will not take off their duty we will have to put on a higher duty. If the Ontario government would give a bonus of $3 a ton it could be manufactured cheaper than it can be imported. George Hope--I do not think mining ever will amount to anything in this pect under con- country till we have commercial union. There is one firm that I am told is willing to invest $12,000,000 and put up works if they can get the American market for their production. Our ores could be laid down cheaper at lake ports than the lake Superior ores. Canada's pros tinental free trade. A stove manufacturer's opinion. production. Adam Laidlaw-If we had the American, market I think we could compete, though I know that is not the opinion of some people. We would make special lines and in that way could well hold our own. At present we make our stoves just as good as the Americans do. Take a Canadian stove and an American stove made from the same patterns and you cannot tell them apart. Thomas Ledyard-The only thing that can be done with our ore at present is Cost of iron ore to send it to the States. Pittsburg is the best place to ship to by all rail. The freight to Buffalo from the mines would be $1.50, where there is a charge of 25 cents a ton for shunting; freight from Buffalo to Pittsburg, $1.25. The duty is a serious drawback to that trade. If the duty were removed our mines could be developed as well as the Michigan mines. The cost of mining would be from $1 to $1.50. We would have an advantage of from $1 to $1.50 a ton in freight over the lake Superior ores. The price at Cleveland of Bessemer ore is $5.75. The duty is the great obstacle. If the Belmont mine was being worked at the rate of 400 tons a day that would mean duty to the extent of $300 a day. It is estimated that 4,500,000 tons were shipped from lake Superior this season, and that in the face of a dull steel rail market. In addition to all this, in 1887 1,100,000 tons were Canada's limited imported into the States from Europe. As far as the Canadian market is conmarket for iron. cerned, six good iron mines would supply the whole of Canada, even if we used all American and European markets. An obstacle to development. Value of the Gres. our own iron. That is estimating the consumption at 600,000 tons of ore, and of that only about one-third of magnetite could be used; they don't like more than that proportion of magnetite in the furnace. I am satisfied we have more than a double supply of magnetite. Our magnetite mines would supply the whole of the Dominion, but that ore cannot be used by itself economically. James Proctor-We want the American market, but I do not think we can compete with Europeans. I do not think there is any use mining iron and copper ore and sending it to Europe. H. S. Howland-I am a merchant residing in Toronto, and am interested in mining properties. I have an iron mine in the township of Snowdon. I have leased it, and I do not know whether it is being worked at the present time. The shaft is down about 80 feet, and they have taken out a considerable quantity of ore and shipped it to Elmira, N. Y. I do not think the venture paid very well, or they would have gone into it extensively. If the American duty were removed it could be shipped with profit. I think that is the obstacle to the development of the iron industry. C. J. Pusey-All the ore we have so far taken out of our iron mine in Haliburton has been shipped to the United States. It is our only market; we could market for iron not ship to the old country. The duty is the only thing that prevents us supplying the American market. If the duty were taken off the value of our mining properties would be increased, and we would be able to compete with the American mines in Michigan and elsewhere. If the duty were removed by the American government I can see no reason why our mines should not be developed as fully as those of Michigan. Taking the ores through that range in Haliburton and eastwards and comparing their analyses with those of the ores on lake Superior or any other point of the United States, or even the Spanish ores, I claim that there is a greater proportion of Bessemer iron in the Canadian ores than in the others mentioned. Albert Carpenter-We use soft coal in burning sewer pipe, and the duty is a very serious item. We use from 24 to 30 tons a week. There is also a duty upon the clay that is imported. The duty on sewer pipe is 30 per cent. I do not think that if the duty were taken off we could compete with the Americans on equal terms; they have the clay and the coal in the same bed. Some of the factories in the States use natural gas, and of course that is an advantage; but for that the cost would be about the same. Sewer pipe. Moses Snow-There is a small duty on building stone, and of course we would be better satisfied if there were no duties at all. If the duties were removed we Marble. would put up a large marble mill at Garden River and give employment to some 300 men, but that would not pay as long as the duty is imposed, and it will be shipped as building stone. W. H. Laird-Nearly all the capital invested here is American. At the East We Verte islands. Silver Mountain mine there is English capital invested to the extent of about $225,000, and in other properties I think there is about $600,000 of American Sandstone at capital invested. I am interested in the sandstone quarries at Grange island and Grange and Verte island, and a Chicago company is also working a location of 80 acres. have in those two islands about 2,500 acres. It is red sandstone, the same as the Chicago property, and we have spent about $5,000 in opening up one of the properties. I do not know what depth it goes to, but it rises about 100 or 150 feet above the water level. We spent the money to get at the place where the stone was solid The cliff is a mass of this red stone. On both islands it is near the margin of the lake, so that vessels could get to the property almost anywhere. The United States would be the market for that stone. The stone that is now being shipped is exported in its rough form an is subject to a duty of $1 a ton. The architects like the stone as it stands a great pressure and resists the effects of climate, but when capitalists come to look at it they find the duty in the way and this prevents anything being done. If the duty was taken off there would be no difficulty in operating the property. Thomas Marks-I think it is the duty that prevents our sandstone being largely used. If it were taken off I think we could work the quarries to advantage and could compete on the American markets. The demand for it would be enormous Sandstone, iron if once introduced, and I think 500 men would be employed in quarrying, besides and machinery. those engaged in dressing it. The duty upon iron ore is very injurious to mining development. It would also be well to have the duty taken off such machinery as is not made in Canada. Madoc marble. Edward J. Whitney-The capital of the Hungerford Marble company is $100,000; the stock is held in Canada and P. W. Ellis of Toronto is the president. The market for We hope to find a market for some of the marble in Canada, but it is expected that the greater part will be disposed of in the States. Entering the States there is a duty of 55 cents a cubic foot on block marble, but in spite of that there will be a great demand for this marble as soon as we are in a position to supply it. The duty on dressed marble is very much higher than on block marble; the duty of course interferes to that amount. If the duty was taken off it would put us on an equal footing with the American quarries, and by so doing would give us a chance to develop to a much greater extent than is possible under existing circumstances; and we could figure on a better profit and therefore would develop to a great extent. My experience of the American marble market extends over a period of twenty-five years; I am well acquainted with the different kinds of marbles required, and am perfectly satisfied that this marble will take well on the American market. Most of the Machinery. quarrying machinery used has to be imported and to pay a duty of 30 per cent. ; the machinery cannot be got in Canada. It would be a great advantage to allow machinery in free where people are trying to develop property. The value of the machinery put in here not including the diamond drill which is free-is from $6,000 to $7,000. building stones. Ale cander Mc Lean-I think that what is wanted in this country is a wider market; we have an abundance of the material, but not the demand for it. I think No prospect of a they have crystalline marbles in the northern parts of Europe; if they have not, at European marany rate they have other stone we would have to compete with if we sought to find for marble or a market there. An experiment of that kind would entail a very large expenditure. The American market would be much more promising. We have crystalline marble and other stones that we could sell in the States without doubt. I do not think they have a very considerable amount of crystalline limestone in the States. The American market is the market for building material. There is no market |