In the light of discussions upon the subject in England, and of information received, he did not think it likely that the vessels of the fast Atlantic Line could be made in Canada within a reasonable time. He had once hoped that this would be possible. This deliverance was followed up on November 5th by the Canadian Manufacturers' Association at their annual meeting in Montreal passing a strong Resolution upon the subject. It was moved by Mr. J. P. Murray and seconded by Mr. W. B. Tindall and referred for action to the Transportation Committee. Mr. Tindall pointed out that if large sums of money could be successfully invested in the building of steel vessels for inland waters there was no reason why an ocean shipping industry should not also be developed in Canada. The motion was as follows: "Whereas the present ocean steamship service being most inadequate for carrying the freight of Canadian industries from Canadian ports to its destination across the seas; and whereas the Governments of Canada have expended very large sums of money and given away extensive tracts of land and granted great privileges in the building of railways and canals necessary to bring freight to tide-water; and whereas Canadian ports are suffering for want of a satisfactory ocean freight-carrying service "Be it resolved, that the Canadian Government be memorialized to give such encouragement, whether by bonus of tonnage or otherwise, to the building in Canada of ocean steamships as shall warrant capital entering into that industry." Steel Ship- During 1901 there was considerable discussion and some legislation regarding the possibilities of a Nova Scotian industry in this connection. On January 8th the City Council of Halifax, by unanimous vote, appointed a Committee of six members to act with six members of the Board of Trade, and to investigate the possible construction of an exclusive steel ship-building plant on the peninsula of Halifax. Mayor Hamilton was in the chair, and Ald. Musgrave, in moving the Resolution, declared that the city should contribute to the establishment of such works, and that their construction alone would mean the employment of nearly a thousand men, and a consequent increase to the city revenue of $10,000. He read a letter from Mr. Ochiltree Macdonald, of the Cape Breton Iron and Steel Works, pointing out what an immense undertaking the construction of steel ships was; expressing a belief that the establishment of such an industry would be an incalculable advantage to the people of the Province; pointing out that proximity to the raw material was not absolutely essential, as was proven by the success of the Belfast industries; and stating his opinion that a combination of British and Nova Scotian capital might be effected to meet the desired end. Ald. G. E. Faulkner, in seconding the motion, referred to the familiarity of the people with wooden ship-building, and to the decay in the condition of Halifax, which made some new industry so necessary to its population. Others spoke, and the Resolution was then passed. As a result of this action, of further consideration and of an Act passed by the Legislature on April 4th, a plebiscite was taken on April 24th, to ascertain if the citizens were in favour of giving $100,000 "to aid in establishing within the city a yard and plant for building the hulls of iron and steel ships, and in establishing a machine and boiler shop for equipping such hulls with engines, boilers and machinery." A second question was asked as to the granting of a bonus by the city of $5 per ton for steel steamships, and $2 per ton for iron or steel sailing ships. The answer to the first inquiry was 2,028 affirmative votes and 261 negative, and to the second question, 1,105 and 173, respectively. In the House of Assembly, on February 14th, Mr. M. E. Keefe had, meanwhile, referred to the matter, and expressed the earnest hope that there would be no doubt as to who should receive credit for taking the first step in its development. It should certainly be the Liberal Government, and he was willing to give them every possible help in promoting the establishment of a great industry along these lines. In the Council, on the succeeding day, the Hon. Mr. Armstrong pointed out that the men of Nova Scotia had once led in wooden ship-building, and he believed they could now do so in the steel product. To-day we require 60 steamships of 4,000 tons burthen each to carry the necessary supply and output of the industries established in Cape Breton." There was no reason why the people and the capitalists should not take hold of this question, and help in providing great enterprises, employing many men and much money. Upon this point the Hants County Journal spoke strongly during June of this year, and claimed that the important question for Canada to consider now was not so much the establishment of a fast steamship line to Great Britain as the question of how soon such steamers could be built in her own ship-yards. It would keep many young men at home, and give employment to roving spirits in navigating Canadian ships. The Dominion and Provincial Governments should give more attention to this matter, and let the railways rest for a time. On August 10th Mr. G. H. Murray, the Prime Minister, wrote to Mayor Hamilton, of Halifax, stating that the Government had decided to subsidize an initial ship-yard in the Province to the extent of $100,000, in addition to the privileges of exemption from taxation for a period of twenty years, which had been recently granted by Provincial legislation. The conditions to be exacted were that the works should be equipped with the best mechanical appliances upon specifications to be approved by the Government; that they should be capable of building at least five steamers a year of the capacity of 5,000 tons each; that there should be sufficient working capital to efficiently carry on the business; that the terms of payment of the proposed bonus should be settled when the Company in question had furnished evidence of its readiness and financial position. At a meeting of the Committee in Halifax, which had the matter of a local ship-yard in hand, Mr. George S. Campbell, on August 21st, presented a report summarizing the advantages of that city for such an establishment. They had a large and stable class of intelligent workmen; supplies of fuel not far distant; a splendid harbour, open all the year round, and protected by strong fortifications; a satisfactory climate for working purposes; a magnificent dry dock, and every facility for repairing shipping; a demand for steel shipping to use in coasting and for passenger purposes; a bonus from the city amounting to $100,000, and another $100,000 of tonnage bounties in four years. Meanwhile, Dartmouth, on the other side of Halifax Harbour, was offering a bonus of $100,000, while rumours were rife of the Dominion Steel Company being inclined to go into the business at Sydney. Upon the general point of establishing such works, the remarks made by Mr. F. H. Clergue, of Sault Ste. Marie, when in Halifax on January 28th, were often referred to. He favoured Halifax, and thought the distance from Sydney no serious disadvantage. "My idea is, that any plant established should be able to compete with any in America. Such a plant could not well be located on a site less than 1,000 feet in depth. I feel confident that works established here could compete successfully with any on the continent. The steel works at Sydney will produce steel at a marvellously low figure-far cheaper than any works in the United States. With such prospects for investment, I feel that a steel ship-building plant here would be a very large financial success, and one which would reward its promoters handsomely." Steel Ship- During the early part of the year St. John followed the example of Halifax in discussing and encouraging the establishment of this industry. Members of the City Council met the promoters of a local Company and the papers spoke warmly in favour of the project-the St. John Gazette of February 18th declaring that "too much encouragement cannot be given to the establishment of a steel ship-building plant in this community. It is the one industry which will add to our population and make St. John once more one of the great ship-owning and shipbuilding centres of the world." On March 5th Mayor Daniel informed the Council that amongst the promoters was Mr. J. H. Thomson, of William Thomson & Co., Glasgow, who had confidence in local facilities for this industry. He understood that $100,000 had already been subscribed in St. John for a new company. Their proposed policy was to have a ship-yard in which four large vessels could be constructed at one time and in a single year. The number of men employed would be 1,500 and the estimated expenditure per vessel about $240,000. On March 10th Mr. Thomson and others met a Committee of the Council and made a statement concerning their project. They proposed to establish, maintain and operate in St. John a plant for the purpose of constructing, repairing and operating steel ships and this project would include a steel ship-building yard with capacity for 25,000,000 tons per annum and an engine and machine shop necessary to manufacture machinery for the amount of tonnage. It would involve a capitalization of $3,000,000, would occupy 14 acres of land, and employ 1,500 men. There were some difficulties in the way, however. The cost of construction, the expense of filling in or building up any of the suggested sites, and the distance by water from St. John to Sydney, were the chief ones. Another was in the bonuses offered by the Nova Scotian Government and the City of Halifax which would insure an advantage to any concern operating in the latter city. They had, therefore, decided to explain the situation and state what would be required for the establishment of the industry locally. It would be necessary for St. John to offer a cash subsidy of $200,000 and a free site and for the New Brunswick Government to give the same bonus that the Government of Nova Scotia had granted. Speaking in Montreal, on March 19th, Mr. J. H. Thomson declared that during the last five years his firm had built upon the Clyde nine steamers of the Baltic Line and had five more under construction. This represented nearly $3,000,000 expenditure, of which ninety-five per cent. was Canadian money. The Clyde firms were behind the Americans in speed and the industry could be carried on better in St. John. "If a plant is erected in Canada we would, of course, give our own country the preference in all our work, the volume of which is rapidly increasing." Mr. Harry Harding, of St. John, who had been one of the most active promoters of the new project, was also interviewed at Montreal on this date. He declared that the capital of the new company would be $3,000,000, that its location would depend upon the encouragement given locally and it was not impossible that the requirements of the near future might justify a plant at Halifax, one at St. John and another at Sydney. Finally, the St. John Council decided to offer aid to the extent of $100,000 for the construction of machinery, together with a free site of land and cash not to exceed $100,000 in total value and exemption from taxation, to any Company engaging in the business of building steel ships in the City. The Legislature was asked for the power to make these arrangements, and this was granted subject to a limitation of the right to manufacfacture engines and machinery up to the requirements of the Company for their own vessels. Ship-build ing in British Columbia Between January 11th and February 2, 1901, the Hon. James Dunsmuir, Premier of British Columbia, and the Hon. D. M. Eberts, K.C., Attorney-General, were in Ottawa conferring with the members of the Dominion Government upon various matters concerning the Province. One of these was the encouragement of ship-building and the Delegates carried with them documents dealing very fully with the subject. Mr. John Hendry, of Vancouver, wrote to the Premier that the timber of British Columbia was pre-eminently suited to ship-building and for making spars; that such an industry would attract desirable settlers and furnish much employment for mechanics; that the export of products could be largely increased if carriers were supplied; that vessels for this Pacific trade were built in the neighbouring State of Washington at a cost varying from $60 to $65 per ton for ships of from 600 to 1,000 tonnage but that'until the industry were established the cost would be greater in British Columbia; that a bonus equivalent to $15 per ton register on all vessels of 600 tons built in the Province within a specified term would be sufficient encouragement. On behalf of a number interested in the shipping of the Province Mr. John G. Cox wrote the Premier urging a bonus of $10 per ton register for five years, on each vessel built in the Province of either iron, steel or wood, and of 450 tons or upwards. There should be also a further bonus for the ensuing or second term of five years. He submitted the cost of construction as about $80 per ton or $64,000 for a vessel of 800 tons; the wages spent on construction as about 75 per cent. or $48,000; the number of those employed as being 50 men for a period of nine months; the money spent on freight for such a vessel each year, and now leaving the country, as $36,000. He contended that every industry in the Province would benefit by such a policy and pointed out that the United States ports discriminated against British Columbia lumber to the extent of 60 cents per 1,000 feet, and that this was probably the average profit at the present time. The natural interests of this Province led to continued discussion of the ship-building question during the year. The matter culminated on March 18th in a motion presented in the Legislative Assembly by Mr. R. G. Tatlow to the following effect: "That in the opinion of this House the promotion of ship-building and ship-owning in the Province is of the highest importance to the future commercial prosperity and advancement of British Columbia and this House would respectively urge upon both the Dominion and Provincial Governments the desirability of such a policy." He pointed out the facilities possessed by the Province for such an industry and the necessity of providing ocean transportation for the immense and increasing exports of coal and lumber. The trade in lumber alone from Puget Sound and British Columbia ports, with countries on the Pacific and in Africa, had amounted last year to 200,000,000 feet of which British Columbia only contributed 60,000,000 feet. The tonnage in the Pacific adapted to this trade was now far below the steadily growing requirements; so that there would not only be an assured existence for the business but undoubted opportunities for expansion. On their side of the Pacific were immense supplies of lumber and coal; on the other were large consuming communities. They should, therefore, have an important shipping interest to meet these conditions. During 1900 cargoes of lumber had been loaded on 60 vessels in British Columbia ports for the markets mentioned, and the freight on the transportation of this product had been $850,000. The establishment of a ship-building industry would enable the people of the Province to own and operate these vessels; to profit by the labour employed in the new industry as well as by the increased transportation; to keep money in the country which was now going out; to develop a hearty sea-faring class upon its coasts. "The vessels best suited for the trans-Pacific trade were now chiefly owned in San Francisco and largely owned, or controlled, by those interested |