170 ROYAL SOCIETY OF CANADA 



the Duke of York. However, the lease of the Sydney tract was on the 

 point of expiration, and was seeiired by them Januarj^ 1st, 1827. In the 

 following year they purchased the Pictou leases already referred to, and 

 became the sole lessees of all the mines and minerals in the province 

 except these previously granted Avith the Crown lands. 



Some years later it was pointed out that it was originally intended 

 by the Crown to grant only the minerals in Nova Scotia proper, and that 

 in the wording of the patent in 1826, Cape Breton having been annexed 

 to Nova Scotia in 1820, the intention of the extended grant was not 

 expressed. Following the custom of interpreting the grants in favour of 

 the Crown, it was decided that the contention Avas well founded, and that 

 the company hold only the Sydne}- mines under the gi'ant from the Orov- 

 ernment of Nova Scotia, which in its turn became liable to a consideration 

 of being ill-advised. However, this point was rectified by express 

 declaration. 



The compau}" did not take advantage of the neglect of many of the 

 Crown land gi-antees to settle their lots, or to pa}- their rent, as their 

 attention was practically confined to coal. 



When the new company obtained control of all the coal, the Govern- 

 ment of Nova Scotia having issued a new lease of the Sydney mines and 

 of the leases purchased in Pictou county, concurrent with that obtained 

 from the Duke of York, it Avas agreed betAveen the three parties inter- 

 ested that upon the payment of a fixed rent of three thousand pounds a 

 year, they should be alloAved to sell 20.000 chaldrons (NcAvcastle), and 

 that a royalty of Is. Td. sterling should be paid on every chaldron sold 

 over that amount. 



In addition to this the company had an agreement with the Duke 

 of York by which they Avere to pay him one-fourth of the net profits. 



On June 4th, 1827, Mr. Eichard Smith informed the Lieutenant- 

 Governor that he had arriA-ed Avith a nimibcr of miners, mechanics, etc., 

 and a large amount of tools and machines preparatory to opening the 

 Pictou coal seams on an extensive scale, and suggested that the initiation 

 of the enterprise should be publicly marked. On June 11th, an order- 

 in-council Avas issusd certifj'ing that Mr. Smith was the agent of the 

 General Mining Association, and calling upon all government officers, 

 magistrates, and pi'0])rietors of land to afford every reasonable facility 

 for the execution of the designs of the company. 



The proclamation did not haA-e much effect upon the proprietors of 



land, as Mr. Smith complained of the exorbitant prices demanded, and 



of the determined hostility shown by many parties, especially by those 



connected Mith the former leases. Finally these land troubles were 



settled bj- an expenditure ol" £10,110 Avhich secured for them ample 

 space. 



A judicious site was chosen on the west side of the East Elver on the 



outcroj) ,of the main seam, about half a mile from the head of tide Avater, 



