AMALGAMATED MINE WORKERS OF NOVA SCOTIA CONTINUED
Barrett was asked to resign by the International, which also requested repayment of relief benefits that were spent illegally. The strike was later settled in April 1924.


By 1925, coal markets were growing soft because American coal was underselling Cape Breton coal in the Montreal markets. To offset this, Besco initiated a 10% wage reduction. Attempts at negotiations failed and on March 6, 1925, a strike was called. The Company then refused the men any credit in the Company Stores. The struggle was a hard and bitter one, and the separation of the two classes was widening.
Vice President J.E. McLurg (Besco) stated,"We hold all the cards…they (the miners) will have to come to us…they can't stand the gaff." This became a catch phrase for miners and made them even more determined to prove to McLurg and other that they could indeed "stand the gaff."

Hard pressed merchants continued to provide credit to miners and fishermen contributed their catch. This time, sympathy and support seemed to be on the side of the miners and their families. The Company and their government friends would soon see the result of this support.

The Town of New Waterford was especially hard hit by the strike. The town's water supply and electrical needs all came from New Waterford Lake. Besco Police had control of this location and they also terrorized people of New Waterford by charging through the town on horseback.

On June 11, approximately 3,000 infuriated men and boys gathered at New Waterford and made their way toward the power plant. Approximately 100-armed police met them at the site and the so-called Battle of Waterford Lake took place. Police were hauled off horseback and beaten, while others jumped in New Waterford Lake and swam to the other side. The police began to fire their revolvers and three of the miners were shot. Gilbert Watson was shot in the stomach, Michael O'Handley was shot and trampled by horses and William Davis was fatally wounded in the heart. The miners overtook the police and marched them back to town to jail. Later, they were hurried to Sydney for safety. The men were driven to this action because their supply of water and power to their homes and schools was cut off. Soon after, however, the affair was pushed aside and forgotten.

A provincial election that year saw the defeat of Armstrong's Liberal government. The miners' wage scale was reduced to the 1922 level (a reduction of between six and eight percent) and the Corporation received a rebate of 1/5th of the coal royalties paid to the province for a six-month period. On August 5, the miners voted 3,913 to 2,780 to end their strike. The strike had lasted for 155 days, and J.B. McLachlan rationalized the suffering of the miners this way: "Under capitalism, the working class had but two courses to follow: crawl or fight."


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