CHAPTER IX THE CANADIAN SYSTEM OF MINING LAW. DIGEST OF THE THE CANADIAN SYSTEM The mining laws of the various provinces of the Dominion of Canada, and of the Crown Colony of Newfoundland, are all constructed on the basis of what may be called the modern British theory of the business of mining; and while differing much in detail, have a strong family resemblance, and may properly be considered together. This underlying doctrine is to the effect that mining, being an occupation which, by its very nature, calls for the investment of more or less capital in development and equipment, the laws regulating it should be so drawn as to give capital all the opportunity it could fairly ask for. But while doing so the rights of the State as a whole must also be properly guarded, to prevent the development of conditions as to property of this kind which exist in the old country, and which in all parts of the Empire are regarded as unfortunate, and inimical to progress in the industry. The provinces of British Columbia, Ontario, Quebec, New Brunswick and Nova Scotia, and the Crown colony of Newfoundland have each its own mining code, while what is known as the Dominion code governs operations in Manitoba, Saskatchewan, Alberta, the Northwest Territory, and the Yukon Territory. In all of these the paramount ownership of the state in metalliferous minerals existing on the public domain, and also on privately owned land except where the mineral rights have expressly passed in the deed of grant, and except on tracts alienated prior to certain dates, is definitely asserted. In British Columbia, Ontario, Quebec, and Newfoundland patents (called Crown Grants) may be secured, but in Quebec the right is retained by the government to insist upon annual labor on all such grants, and in Ontario the ownership of the timber is reserved. Elsewhere, only leaseholds are obtainable, so that it is hoped and believed that the rise and growth of large landed estates containing undiscovered mineral resources will be prevented throughout British America, except in British Columbia and Newfoundland. Presumably, with the intent to encourage discovery, all the codes except that of the Dominion provide regulations for that line of activity called prospecting, while in the case of the Dominion the same end has been sought by relieving the prospector from most of the obligations that are imposed upon him in the other provinces. But when some of these laws are critically examined it becomes clear that the framers of them have assumed, in accordance with the British doctrine, that prospecting was a business which, like mining, required the backing of capital, and accordingly the occupation is governed-excepting in the Dominion code by rules and regulations which practically bar the prospector (as the character is known in America) from the field. Thus, in Newfoundland, one may freely search and dig, but may not locate a claim, or take away and sell anything found, until a prospecting license has been purchased; while in Nova Scotia, a claim may be located without a license, but digging or the removal of anything found is strictly prohibited until one is secured. In Ontario, Quebec, and British Columbia licenses are required before either digging or claim-staking can be done, and heavy penalties are provided for violating this rule. As licenses in these provinces cost all the way from $5.00 to $10, are good for one year only, and permit of the location of but one claim in Newfoundland, Nova Scotia, and New Brunswick, three in Ontario and five in Quebec, it is evident that the belief was held by, most of the lawmakers that prospectors are people of some means, or else are in the habit of securing the backing of capital before engaging in exploration. In fact it is impossible to study the provisions of these laws (except in the case of the Dominion) without reaching the conclusion that they have been drawn and enacted with only a partial knowledge of the exigencies of that most important part of the mining industry which has to do with the discovery of new ore deposits. Perhaps the best example of this misconception is to be found in those sections of the Nova Scotia code which are supposed to provide for the rights and necessities of the individual who is moved to go out into the hills and search for gold in the beds of streams or in the bars along their courses. It will be unnecessary and even dangerous for such a party to carry with him any tools, for while he may freely look over the country, even where the surface rights have been alienated, he dares not dig until he has taken out a prospecting license, and he cannot take out this until he is prepared to describe with accuracy-as to metes and bounds—the area upon which he wishes to dig, for the license calls for full details on this point, is good for three months only, and costs $4.00. Consequently no time must be lost or mistakes made. But if under these rather discouraging conditions he does decide upon staking out a piece of ground that appears to contain pay gravel within its limits, and has taken, we will suppose, the minimum sized claim of 40 acres, it is interesting to note the responsibilities he has assumed. Before sticking a pick into the ground he must pay for the license at the rate of 10 cents per acre for the 90-days' privilege. Having done this he may go to work, and at the end of the term, if he has found enough encouragement to incline him to continue, he must first pay the royalty of 2% on the gross value of all gold so far recovered, and then $250 in cash, whereupon he will be granted a document called a "prospecting license" which gives him the right to operate his claim for the succeeding 12 months, in consideration of a further cash payment of $160, being 50 cents per unit area of one-eighth of an acre on his 40-acre tract. In New Brunswick the provisions of the law seem equally severe. There, however, the prospector is allowed to stake off his claim before applying for a license, but prohibited from doing any digging upon it until the license is issued. But at this point he must be very careful, for there are two varieties of this document. One is entitled a "License to Prospect" but is good only for gold and silver. The other is called a "License to Search" and covers all the other metals. Not having been allowed so far to do any digging, and so not knowing just what he will find when he does get to work, he probably must take out both, to cover all contingencies. But neither of these gives him the right to remove and sell anything of value that might be found in case he takes the desperate chances and begins digging. For this privilege he must apply for still another document, called a "License to Work." If the prospector has located the maximum sized claim of 121⁄2 acres, his license to prospect will have cost him $27.50 and is good for 12 months. The license to search costs $20, is good for 18 months and enlarges his area of activity to a tract five miles square, but gives him no exclusive rights therein, and must be surveyed at his expense before any exploring work is done. The license to work costs $50, is good for two years and carries the right of one year's extension at a further fee of $25. It covers any area desired up to 640 acres, to be selected out of the five mile tract, with preference rights in making the selection. Under the law in Quebec, where the prospecting license costs $10 and is good for 12 months only, if any ore is found no right is conferred to remove and realize upon it, and a penalty of $200 follows a violation of this rule. Thus the prospector is wholly prevented from making his work pay even in part as it goes along. However, by taking out a second permit called a "Mining License,' at a cost of $10, and paying down in cash, in advance, the rental of 50 cents per acre on his claim, he can sell or treat his ore. As the minimum size of claim in this province is forty acres, the right to realize, after making a discovery, costs $30. These examples illustrate-perhaps in an extreme way- a conception of the nature of the business of prospecting which it will be hard for the American miner to comprehend, until he grasps the idea that the Canadian prospector is assumed to be an individual in the employ of a corporation. For such the laws are excellent. The prospecting areas to be had are abundantly large, the times allowed for exploration are ample, and the fees and charges very moderate, in fact almost negligible from their point of view. In the matter of the steps that must be taken in the acts of location and recording, and the requirements to maintain title during the period usually devoted by a discoverer of a new ore deposit to making such explorations as are necessary to enable him to decide whether or not his find is going to be worth keeping, the provisions of the Canadian laws are liberal, but very expensive from the point of view of the wandering prospector, and indicate again that they were prepared mainly for the use of the class who have money to invest, instead of for those who can put only their time and labor into the business. Extralateral rights are now nowhere allowed, although they were in British Columbia, under its first law-now repealed-and so this means of conferring more or less of a selling value upon an undeveloped discovery or prospect does not exist. There is therefore little incentive to individual prospecting through out the whole of British North America, and new discoveries during the last 20 years have been almost entirely the result of accident, as in the case of the nickel-copper deposits of Sudbury, the silver lodes of Cobalt, and the gold veins of Porcupine. The mining industry in Canada is nevertheless already of great importance. The vast area of primitive rock that encircles Hudson Bay and extends northwest to the Arctic presents a wonderful field for exploration, and contains undoubtedly a great number and variety of metalliferous deposits awaiting discovery and development. The severe climate will not pre |