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Ownership - General Mining Association (1826-1900)      When Brown's lease expired in December 1821, the mines were let to Messrs. T.S. and W.R. Brown for a period of five years. Royalties were paid to the Crown and the mines were kept in good repair. This lease expired in 1826, and Sir James Kempt, the Lieutenant-Governor of Nova Scotia, made arrangements with the General Mining Association (G.M.A.) of London, to work the mines for one year at the same royalty scale as its predecessors. The G.M.A. became the first in a series of large commercial concerns which dominated the economic life of Cape Breton for over a century.      How the G.M.A. came to Nova Scotia is an interesting story. In 1788, King George III had intended to grant the mineral rights of Nova Scotia (then only the mainland peninsula) to his favourite son Frederick, Duke of York. Nothing much was done in this area because of other more pressing matters such as the struggle between Britain and France. However, in 1815, when the conflict ended and the Duke was in financial difficulty, he authorized an agent to apply for his grant. It was not until 1825 that the unfinished grant was found in the Patent Office.      Since the death of George III in 1820, the Duke was faced with ruin. His entire income was absorbed in the interest on his debts. York had a reputation for being very partial to jewellery and was heavily in debt to the firm of Rundell, Bridge and Rundell. As soon as he received the grant for the mineral rights, the Duke arranged to have the mine sublet to the General Mining Association, a wholly owned subsidiary of Rundell, Bridge and Rundell. As a consequence, the Duke's debts were written off and he was to receive a portion of any profits. However, he died six months after subletting the grant.      Prior to receiving the grant in 1826, the G.M.A. examined the colony for copper but was swayed to the coal deposits instead. In 1826, the G.M.A.'s directors sent Richard Brown to survey and report on the coal fields of Nova Scotia. Brown determined that the fields at Pictou and Sydney were the best seams, but were already leased to other parties and the Duke of York's grant did not cover mines already leased. However, the lease of Messrs. Brown for the Sydney Mines expired at the end of December 1826, and since the Browns did not wish to renew their lease, the G.M.A. took control for a one-year period. When that lease expired, it was hoped that a longer lease with a more favourable royalty scale could be obtained.      The new lease was granted in 1828 and covered the whole colony, not just the Nova Scotia mainland. It was a 60-year lease with rent and royalties payable to the government of Nova Scotia and the G.M.A. was bound to give the Duke of York's estate ¼ of the net gains. The financial settlement was left open to change in the future.      The G.M.A. was successful in securing a monopoly on the coal fields in the colony. The Crown had reserved the right to lease any mine which the G.M.A. refused or neglected to work, but applicants always had their requests turned down. So, although actively mining only certain deposits of coal, the G.M.A. managed to sit tight on all potential wealth under ground. It was determined that the Sydney "six-foot" seam, bearing the best coal and situated on the shores of one of the finest harbours in North America, would be the most convenient on which to establish works on a large scale. NEXT PAGE

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