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Ownership - Independents (1858-1900)

     Immediately after the G.M.A. surrendered its lease in 1857, Nova Scotians became coal and mining conscious. Over the next 36 years more than 30 mines were opened. A few were successful, but most produced small returns and were closed.

     American interests invested heavily in Cape Breton coal mines during the 1860s. Many "New Mines" were financed this way, notably the Blockhouse Colliery, the largest independent producer. In 1858 and 1866, Acts were passed by the Nova Scotia government to encourage exploration and development of new mines. Many investors were forced to abandon their leases after disappointing results. Those fortunate enough to have secured more valuable locations did make a profit, but, with the repeal of the Reciprocity Treaty, they made little money in the following years.

     One of the larger independent operators was the Glace Bay Mining Company. Another important operation was the Gowrie, which, under Mr. Archibald and Company, became one of the most important mines in Canada. However, the loss of the New England market after 1866 was a severe blow to the coal trade and, by 1875, representatives of most of the Nova Scotia colliery owners expressed their belief that it was impossible to continue operations on the existing basis. Due to transportation costs and competition from American and British coal, the Nova Scotia mines could not penetrate the domestic markets of Upper and Lower Canada. Only in 1879, when the MacDonald government implemented a National Policy to shelter Canadian industry from the foreign surplus, were new manufacturing industries stimulated, which, in turn, increased the demand for coal. It seemed, that sales and profits were dependent upon wartime and other falsely inflated demands in the markets and collapses and times of hardship followed the disappearance of these temporary demands. The government, federal or provincial, was always called upon to aid the ailing industry with protective tariffs and subsidies.
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