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Business, enterprise, and the national policy : the role of T. C. Power & Brother and I. G. Baker & Company… Francis, James M. 1978

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BUSINESS, ENTERPRISE, AND THE NATIONAL POLICYj THE ROLE OF T. C. POWER & BROTHER AND I . G. BAKER & COMPANY IN THE POLITICAL AND ECONOMIC DEVELOPMENT OF THE SOUTHWESTERN CANADIAN PRAIRIES AND NORTHERN MONTANA, 1870-1893 by James M. F r a n c i s U n i v e r s i t y o f B r i t i s h Columbia, 1978 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n THE FACULTY OF GRADUATE STUDIES Department of H i s t o r y We a c c e p t t h i s t h e s i s as con f o r m i n g t o the r e q u i r e d s t a n d a r d THE UNIVERSITY OF BRITISH COLUMBIA June 1978 James M. F r a n c i s In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the requ i rement s f o r an advanced degree at the U n i v e r s i t y o f B r i t i s h Co lumb ia , I ag ree that the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s tudy . I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y purposes may be g r a n t e d by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s . It i s u n d e r s t o o d tha t c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l o w e d w i thout my w r i t t e n p e r m i s s i o n . James M. F r a n c i s Department o f H i s t o r y The U n i v e r s i t y o f B r i t i s h Co lumbia 2075 Wesbrook P l a c e V a n c o u v e r , Canada V6T 1W5 Date August 4, 19 7 8 ABSTRACT T i t l e o f T h e s i s : B u s i n e s s , E n t e r p r i s e , and the N a t i o n a l P o l i c y : The Role of T. C. Power & Br o t h e r and I. G. Baker & Company i n the P o l i t i c a l and Economic Development of the Southwestern Canadian P r a i r i e s and Northern Montana, 1870-1893 James M. F r a n c i s , Master of A r t s , 1978 Th e s i s d i r e c t e d by: P r o f e s s o r David H. Breen Two Montana companies T. C. Power & Brother and I . G. Baker & Company p l a y e d a s i g n i f i c a n t r o l e i n the economic development o f both n o r t h e r n Montana and southern A l b e r t a and Saskatchewan, between 1870 and 1893- These companies encouraged the Canadian government to a s s e r t i t s a u t h o r i t y i n the r e g i o n . They a l s o helped to l a y the groundwork , f o r an east-west Canadian r e t a i l trade b e f o r e the a r r i v a l o f the Canadian P a c i f i c Railway. This i n v e s t i g a t i o n o f t h e i r a c t i v i t i e s p r o v i d e s a context f o r a d i s c u s s i o n of the impact of the Conservative government's N a t i o n a l P o l i c y on the Canadian North-West. i i TABLE OP CONTENTS C h a p t e r Page i ACKNOWLEDGEMENTS v INTRODUCTION . 1 I . FRONTIER BUSINESSMEN 5 I I . THE RAILWAY, RANCHING, AND FRONTIER BUSINESS.. 31 I I I . STRUGGLE AND DEFEAT 67 CONCLUSION 79 SELECTED BIBLIOGRAPHY 8 2 i i i LIST OF ILLUSTRATIONS Page 1. Map o f the Southwestern Canadian P r a i r i e s and Northern Montana, 1893 4 2. View of Ca l g a r y , 1883 23 3. I . G. Baker Store i n Ca l g a r y , 1882 24 4. I . G. Baker Store i n Calgary, 1888 24 5. L i s t o f S u p p l i e r s o f Goods f o r D e s t i t u t e Indians Under Treaty Seven, 1881 43 6. L i s t o f S u p p l i e r s o f Goods f o r the Indians i n the Canadian North-West, 1887.. 59-61 7. I . G. Baker Store i n L e t h b r i d g e , A l b e r t a 65 8. I . G. Baker Store i n F o r t Macleod, A l b e r t a , 1879 65 9. T. C. Power & B r o t h e r S t o r e , Maple Creek, Saskatchewan, 1880s 70 i v ACKNOWLEDGEMENTS Many persons have aided me In the preparation of t h i s t h e s i s . I am espe c i a l l y endebted to Dr. David H. Breen for the i n t e l l e c t u a l stimulation he provided. His work, lectures, enthusiasm, and advice were an i n s p i r a t i o n to me throughout my work on thi s t h e s i s . I also am thankful to Professors J. Lawrence and H. K. Ralston for t h e i r e f f o r t s i n preparing the reading courses which provided the background for t h i s thesis. Professor Ernest S. Osgood also took the time to re-view and help p o l i s h the rough dr a f t . The Montana H i s t o r i c a l Society which coll e c t e d and processed to T. C. Power Papers was an invaluable resource tool for t h i s paper. The Glenbow-Alberta Inst i t u t e and i t s f r i e n d l y , h e l p f u l s t a f f made my research both p r o f i t a b l e and enjoyable. F i n a l l y , major credit i s due my t y p i s t , Helen Leibert, and my proofreader, Karen Leibert. These people were both patient and painstaking i n t h e i r work. Without them there would have been no thesi s . v INTRODUCTION The following study of the business activities of two Montana mercantile companies—I. G. Baker & Company and T. C. Power & Brother—in the late nineteenth century provides an excellent backdrop for a re-examination of some aspects of the national policy. There are two misconceptions in Canadian national policy historiography which seem to require a closer examination. One of these distortions i s that American businesses were bent on annexation of Canada.^ The business practices of the Montana companies discussed in this thesis do not support this contention. The partners in these companies were not annexationists. In fact, they actively supported the Dominion government of Canada and encouraged i t to assert i t s authority in the Canadian North-West, now known as Alberta and Saskatchewan. The other misconception entrenched in Canadian historiography is that the completion of the Canadian Pacific Railway led to the overnight removal of American influences in the North-West. Paul F. Sharp in his book Whoop-Up "'"See, for example, Stephen Schginberg, "Invitation to Empire: Tariffs and American Economic Expansion in Canada," Business History Review 47 (Summer 1973), PP« 218-238 1 2 Country: the Canadian-American West, I865-I885 asserted that "when the Canadian Pacific Railway reached Medicine Hat in 1883> the close ties between the American and Canadian areas were broken." 1 Sharp's contention rests upon two assumptions: that the North-West was, in fact, an American hinterland before 1883 and that the presence of the CPR drove the American trading houses out of Canada. The evidence now available in the T. C. Power Papers located in the Montana Historical Society Library in Helena, Montana, indicates that both of Sharp's assumptions are, to a degree, inaccurate. The arrival of the North-West Mounted Police in the West in 1874 and the consequent enforcement of Canada's t a r i f f laws led the Power and Baker companies to buy goods for the North-West in Montreal and Toronto and to s e l l furs and buffalo robes from the North-West in these same c i t i e s . Thus the economic connection of Alberta and Saskatchewan to eastern Canada preceded the CPR. The reader w i l l note that this connection antedated Sir John A. Macdonald's National Policy protective t a r i f f of 1879. In addition, the Power and Baker 2. firms continued contracting, ranching, and operating r e t a i l stores in Canada for ten years after 1883. Macdonald's National Policy, which included the high protective t a r i f f and the transcontinental railroad, was not the decisive element in Canadianizing the West. It was only one factor of many which included the James J. Hill';s Great Northern 1Paul P. Sharp, Whoop-Up Country: the Canadian- American West, 1865-1885 (Norman, University of Oklahoma Press, 1973/ f i r s t published 1955), p. 313. Railway. Mill's GNR was built from St. Paul, Minnesota, across northern Montana to the west coast. This railway played a major part in T. C. Power's decision to s e l l out his r e t a i l operation in Canada and northern Montana. The interpretation I have suggested in the above paragraphs is based implicitly upon the interpretations of Professors David H. Breen and R. C. Macleod. Their studies suggest that socially and p o l i t i c a l l y the Canadian North-West was no mere extension of the American frontier. Their thesis i s that the officers of the North-West Mounted Police and the ranchers established the social and p o l i t i c a l climate in the North-West and made i t distinctly Canadian. My inten-tion is to elaborate on this theme and to suggest that the southern Alberta-Saskatchewan region was not simply an American economic hinterland before 1883. CANADIAN NORTH-WEST AND MONTANA TERRITORY, 1893 CHAPTER I FRONTIER BUSINESSMEN In the 1870s and 1880s two Montana mercantile com-panies—I. G. Baker & Company and T. C. Power & Brother— actively promoted the economic development of both Montana and the southwestern region of the Canadian North-West. Because the establishment of law and order was a prerequisite for economic development, the owners of these companies en-couraged the Canadian and the American governments to assert their authority in the region. These companies had no i n -terest in American annexation of the Canadian North-West; their concern was not t e r r i t o r i a l expansion but economic penetration. In this way there was a marked contrast be-tween the American frontier developers in the northern Montana-southern Alberta region and those in the Minnesota-Manitoba region. The Minnesota annexationist movement in 1870 i s well documented in Canadian historiography. 1 Minnesota in the 1870s was settled by farmers who had an •'•See, for example, George F. G. Stanley, Louis Riel (Toronto and Montreal: McGraw-Hill Ryerson, 1 9 6 3 ) , PP. 3 8 - 4 4 . The farmers were interested in the "Americanization of a grain region as large as six States of the size of Ohio..." Minnesota Legislature, Memorial to Congress, 1862 as quoted in Leonard Bertram Irwin, Pacific Railways and Nationalism  in the Canadian-American Northwest, 1845-1873 (Philadelphia, 1939), P. 68. interest in the ownership of land. Frontier merchants, who dominated Montana in the 1870s, had an interest in buying and selling goods in an atmosphere of peace and security. Instead of agitating for annexation, the owners of these two Montana companies encouraged Canada's consolidation of her authority in the Canadian North-West. These business-men were not land hungry. The possibility of disruption associated with annexation and the Inevitable resistance which would have accompanied i t would have interfered with their business a c t i v i t i e s . Any wars or frontier uprisings would have been detrimental to frontier merchandising companies. Prolonged and successful trading with the Indians or white settlers required s t a b i l i t y . The Power and Baker companies must have perceived the economic and p o l i t i c a l changes associated with the arrival of the Mounted Police and Macdonald' National Policy as developments which would increase the Investment opportunities in the region. Power's and Baker's increased investment in Canada following the arrival of the police in l8jH and the CPR in 1883 evidences their belief that these changes improved their chances to make a profit. In actuality, these firms appear to have encouraged the Canadian government to dispatch the police, and they shifted their business practices to accommodate Canada's protective t a r i f f and the arrival of the CPR. There Is no evidence in T. C. Power's letters to suggest that he believed any of these developments were designed to lock his company out of the Canadian North-West. 7 T. C. Power was the leading partner in the Power & Brother Company. He and his brother, John W. Power, arrived in Fort Benton, Montana, in 1867. They brought with them from their home in Dubuque, Iowa, a load of goods which they sold to miners, Indians, and military garrisons. Previously Power had spent four years in Montana and other western territories as a government surveyor. The two brothers established themselves as traders supplying whiskey and other goods to people who dealt directly with the Indians. The Powers made large profits out of this by taking the responsibility and risk of selling the buffalo robes and furs in the eastern United States. In the 1870s the Powers turned their attentions to a mercantile operation and the establishment of a steamboat line on the Missouri River. As settlement increased on both sides of the international boundary line in this decade, the Powers entered the whole-sale business. By 1881 T. C. Power & Brother was the largest company in Montana.1 The company's balance sheet for the year 1881 showed "resources" of $736,107.84 and " l i a b i l -i t i e s " of $ 3 2 8 ,528.2 1 . 2 I. G. Baker had come to Fort Benton in 1865 as a, partner in the American Fur Company. In 1866 he organized I. G. Baker & Company and became the f i r s t "merchandizer" i n the area. He,, like the Powers, supplied goods and whisky to 1Fort Benton River Press, Feb. 9 , 1881, p. 1. 2Balance sheet for the year ending Feb. 2 8 , 1882, for T. C. Power & Brother, T. C. Power Papers, Montana Historical Society, Helena, Montana, 147-6. 8 the itinerant traders who sold the whiskey to the Indians north of Port Benton in return for their furs. Like Power & Brother, Baker's company shifted i t s operation to a grocery and staple supply outfit in the early 1870s.1 In 1872 the company underwent a change in management. Charles E. Conrad and his brothers, William and John, who had been clerks in Baker's store in Port Benton since 1868, purchased an interest in the company. The Conrads took over the company's Port Benton activities while, in 1874, Baker returned to St. Louis to manage the eastern end of the business. T. C. Power, I. G. Baker, and the Conrads were sharp frontier businessmen. At nearly every turn their companies are found among the vanguard of developing enterprises in the northern Montana-southern Alberta region; for instance, in 1868 Power was involved in establishing an irrigation project on the Sun River in Montana.^ This must have been one of the f i r s t projects of i t s kind in Montana Territory. Power, Baker, and the Conrads not only seized opportunities but also made opportunities for themselves. In 1882 Power instructed his cattle agent, Asa Samples, to buy up a l l the cattle he could in northern Montana. Power said he wanted JRlver Press, Feb. 2, 1881, p. 1. p Ora Johnson Halvorson, "Charles E. Conrad of Kalispell," Montana: The Magazine of Western History 21 (Spring 197D, p. 59. John Conrad dropped out of the partner-ship in 1882; his name does not appear on the I. G. Baker & Company letterhead after July, 1882. See letter from Baker & Co. to Power & Bro., dated Fort Macleod, July 22, 1882, Power Papers, 8M-4. r> JLee M. Ford, "Bob Ford, Sun River Cowman," edited by A. B. Guthrie, Montana: The Magazine of Western History 9 (Winter 1958), p. 37. 9 "to keep cattle up particularly u n t i l after the Indian contracts are let so that people w i l l not bid very low."1 The reader w i l l note other examples below of Power & Brother and Baker & Company creating opportunities for themselves or taking advantage of opportunities brought about by the intrusion of such agents of eastern metropolitan domination as the CPR. The two firms considered themselves competitors, and there was l i t t l e love lost between the Conrads and Power. At one point Power told his brother, John, to "look out for those Conrads, they are snakes in the grass 5 "2 At another time Power wrote his brother that he was "dumbfounded" to hear that John thought Charles Conrad would be a good man for president of their Benton National Bank. Power went on to say that Conrad was "unscrupulous, self i s h , and unfair." Power remind-ed his brother of the time Conrad had lie d to them, t e l l i n g "one story at Benton and one here" in Helena.3 in this case, though, Power's own description of their relationship does not represent a f a i r analysis of their operations. These companies, more often than not, cooperated with one another. They acted i n collusion whenever their position was threatened 1T. C. Power, letter to Power & Bro?., Port Benton, dated Chicago, May 3, 1882, Power Papers, 1 4 7 - 6 . 2T. C. Power, letter to J. W. Power, dated Helena, Oct. 31, 1886 , i b i d . , 1 4 9 - 1 . ^T. C. Power, letter to J. W.'Power, dated Helena, Feb. 1 0 , 1884 , i b i d . , 1 48 -3 - Note here that the argument concerned a bank in which the Powers and the Conrads were partners. 10 by outside interests or whenever they saw an opportunity to benefit from an economic development in the region. In short, the two companies had common interests; even i f occa-sionally the men themselves did not. Often the belief of the Powers and the Conrads that they had different interests actually strengthened their combined position. A. A. den Otter sees this in their different p o l i t i c a l l o y a l i t i e s . Power was a Republican while the Conrads were Democrats; since they were active in t e r r i t o r i a l p o l i t i c s , at least one of them always had ties to the party in power in the state of Montana . 1 The base of operation for these two companies was Port Benton and i t s business leaders were eager to exploit the:town»s position at the head of steamboat navigation on the Missouri River in order to economically dominate the surround-ing region. Port Benton can be seen as a good example of what Gilbert Stelter has called an aggressive Great Plains city in which commercial expansion was the primary desire of the community.2 In the 1860s the commercial orientation of Fort Benton, was a supply depot for the whiskey trade and a transition 1A. A. den Otter, "Sir Alexander T. Gait and the North-west: A Case Study in Frontier Entrepreneuralism," Ph.D. dis-sertation, University of Alberta, 1975, pp. 171-172. 2Gilbert Stelter, "The City and Westward Expansion: A Western Case Study," The Western Historical Quarterly 4 (April 1973), PP. 187-202. Both of the town's newspapers, the River Press and the Record, conceived their role to be trial?' 6T •prdniS^e'rs of Fort Benton's business interests. See, letter from W. H. Buck, editor of the Record, to T. C. Power, dated Fort Benton, July 26, 1880, Power Papers, 13A-10; ,and River Press, Dec. 29, 1880, p. 8. 11 point for freight headed for the Montana gold mines to the south and west. At Port Benton steamboats were unloaded and goods were transferred to wagons to be hauled to gold camps such as Virginia City, Montana. In 1869 this freight business turned sour. The Union Pacific Railroad diverted much of the mining supply business away from the Missouri River route. 1 The remainder of Port Benton's mining supply trade was threatened in 1873 by a business combination of the Northern Pacific Railroad which was completed to Bismark, North Dakota, and the Diamond R Freighting Company, a Helena firm. These two companies developed a scheme to establish a steamboat landing at Carroll, Montana, on the Missouri below Port Benton. They then planned to transport goods by wagon from Carroll to Helena. 2 This proposal, which threatened to destroy Fort Benton as a supply depot, may have been the impetus that forced the Power and Baker companies to consider new enter-prises. If the mining supply business were c u t from under them they would have solely the whiskey trade as a means of profit, and this was a source of only short term and uncertain finan-c i a l return. The trade was self-destructive.3 Although Power may never have expressed this idea in so many words, i t •'•Sharp, "Merchant Princes of the Plains," Montana:  Magazine of History 5 (Winter 1 9 5 5 ) , p. 6 . 2Lee Silliman, "The Carroll T r a i l : Utopian Enterprise," Montana: The Magazine of Western History 24 (April 1 9 7 4 ) , , pp. 2 - 4 . Silliman discusses the entire issue in detail in this a r t i c l e . ^Sharp, Whoop-Up Country, pp. 4 0 - 4 1 . 12 is implicit in his statement that "the Indians are trouble some [sic]—and thereby traders [are] not allowed to trade with them to the extent of other years." 1 Whiskey served to make the Indians more unruly, and i t impoverished them, making i t more d i f f i c u l t to gather new furs, robes, and horses. Baker & Company encountered this problem in 1873 when they tried to establish a trading post on the St. Mary's River in 1873. "The whiskey traders so annoyed them and demoralised the Indians that they were obliged to remove in 1874." The trade was also chaotic. The Indians stole horses in order to trade them for whiskey. By the early 1870s businessmen as farsighted as Baker, the Conrads, and Power probably recog-nized that business associated with permanent settlement, ranching, and government supply contracts represented more secure investments than the whiskey trade. Even before the Mounted Police were dispatched to the North-West, I. G. Baker promoted the settlement of the North-West in a letter to the Dominion government. In this letter he referred to the area as good grazing land, and he recommended the Wood Mountains for farming.^ The essential ingredient for the success of these enterprises suggested by Baker was the establishment of a force which could control the Indians and remove the itinerant whiskey traders. It is no surprise, then, to find 1T. C. Power, letter to Field, Leiter & Co., Chicago, dated Aug. 18, 1869, Power Papers, 178-1. 2Statement of Mr. I. G. Baker of Fort Benton, Montana, in Papers re Liquor Traffic, Glenbow-Alberta Institute, Calgary, Alberta (hereafter GAI). 3 I b i d . 13 Power& Brother and Baker & Company encouraging and supporting attempts by the United States and Canada to bring order to the region. Prom 1873 onward these two Port Benton companies made an effort to make both governments believe that they were not associated with the whiskey traders. In April 1874 Lieutenant Governor Alexander Morris of the North-West Territories interviewed an American in Winnipeg. Morris reported that the man said, "Two American firms from Port Benton which trade there [in the North-West] do not use Liquor in their dealings with the Indians." This informer added that he thought most "American traders would like to see Law and order enforced." 1 There i s l i t t l e doubt that this man was speaking abif Baker & Company and Power & Brother. These were the only two large American traders from Port Benton in the area, and Baker had already implied his opposi-tion to the trade in his statement to^ the Dominion government promoting settlement. Baker had also written the Canadian o f f i c i a l s that "the U. S. Marshal has been active in trying to stop the whiskey t r a f f i c ; but is unable to suppress i t above.[north'.of the forty ninth par a l l e l ] , owing to the [ease of the traders in] crossing the Border." 2 As Baker indicated in this letter to the Canadian government, the United States authorities had begun to take •'•Memorandum of Information given by Mr. Johnstone to Lt. Gov. Morris, April 20, 1874, Papers re Liquor Traffic, GAI. 2Statement of Mr. I. G. Baker of Fort Benton, Montana, Papers re Liquor Traffic, GAI. steps against the whiskey trade in the early 1870s. This was done at the behest of the northern Montana Indian agents. William Ensign, the agent for the Blackfeet, complained that over the period 1867-1873 one quarter of the Blackfeet, Bloods, and Piegans died from the various effects o£ the whiskey' trade. 1 The Indian Bureau and the military took "vigorous" measures against the whiskey trade in 1871 and 1872. In his report for 1872 the Superintendent of Indian Affairs for Montana reported that the trade had "been reduced to very In-considerable dimensions.11 c A. J. Simmons, the Indian agent at the Milk River Agency, summarized the situation in 1872: The whiskey t r a f f i c , formerly carried on so extensively on the Milk River, with i t s utterly demoralizing effects upon the Indians, had been wholly suppressed within the limits of the country attached to this agency. The accomplishment of this was no light task... It was found necessary to c a l l upon the military for assistance, and at times to employ severe remedies, such as the seizure and burning of trading houses, liquors, goods, etc... This t r a f f i c i s s t i l l being extensively engaged in north of the line, In British Territory, by our own citizens and half-breeds from the Red River of the North.3 Simmons referred to the problem of the continuation of the xWilliam T. Ensign, Indian Agent for the Blackfeet, Annual Report for 1873, U. S. Department of the Interior, p. 620. 2 J . A. V i a l l , Superintendent of Indian Affairs for Montana, Annual Report for 1872, U. S. Department of the Interior, pp. 658-659. The reader should bear in mind that V i a l l probably exaggerated this report in order to please his superiors. As used i n this paper i t does provide evidence that the U. S. government had begun attempts to bring order to the region by 1872. 3 A . J . Simmons, Special United States Indian Agent for the Milk River Agency, M. T., Annual Report for 1872, U. S. Department of the Interior, p..661. 15, whiskey trade in Canada. The Indian agents and Power & Brother and Baker & Company benefited l i t t l e from having the trade controlled on only one side of the boundary. Indians continued to steal horses in Montana to trade for whiskey in the North-West. Effective order would exist only when both Canada and the U. S. asserted their authority in the region. With this i n mind, in 1873 the U. S. State Department requested the Dominion government to take steps to end the whiskey trade in the North-West.1 United States Secretary of the Interior Columbus Delano urged the Secretary of State, Hamilton Pish, to go so far as to revise the laws so that Canadian and American authorities could cooperate to supress the liquor trade. Pish forwarded Delano's message to Eden Thornton, the British ambassador in Washington, who, in turn, notified the Governor General, Lord Dufferin.3 The United States government pressure on the Dominion government was augmented by reports from Lieutenant Governor Alexander Morris to Prime Minister John,A. Macdonald. None of this was enough to induce Macdonald to actually organize the mounted police force he had proposed as early as 1869• 1S. W. Horrall, "Sir John A. Macdonald and the Mounted Police Force for the Northwest Territories," Canadian Histori- cal Review 53 (June 1972), p. 197. 2Columbus Delano, letter to Hamilton Pish, dated Nov. 27, 1873, Papers re Liquor Traffic, GAI. 3Eden Thornton, letter to Lard Dufferin, dated Wash-ington, D. C , Dec. 3, 1873, Papers re Liquor Traffic, GAI. 16 He had envisioned the police as a part of the settle-ment process, and settlement of the prairies had not begun by 1873. Macdonald, however, did have the House of Commons pass ±1 May 1873. an enabling act to organize the force, but he did not plan to recruit the police unti l the following year. Then the Pacific Scandal and the consequent erosion of the strength of the Conservative government in 1873 cast the entire scheme of a police force into doubt; because the Liberals, who stood ready to assume power, opposed the con-cept of a federal police force. At this juncture news of the Cypress H i l l s fight reached Ottawa.1 This information, presented to the government by the newspapers as a massacre of Canadian Indians by drunk American whiskey traders, led to the rapid organization of the proposed police force. The Macdonald government had to assert Canadian authority in the North-West in order to protect i t from encroachment by those inculcated with the American violent view of the frontier. 2 Macdonald envisioned a peaceful western development. After the Cypress Hi l l s incident he may have fe l t that the only way to maintain a nonviolent frontier was to dispatch without de-lay the Mounted Police. In the context of this paper the important aspect of the Cypress H i l l s fight is the role which the Baker and Power companies took publicizing i t . As indicated earlier in this paper, Baker and Power were agitating against the whiskey ^•Horrall, "Macdonald and the Mounted Police," pp. 180-192. 2 I b i d . 17 trade by 1873. Presentation of the fight to the public as a massacre of innocent Indians worked to their advantage. Sharp has said that Abel Farwell, one of Power's employees and the main witness, spoke to T. C. Power before he spoke to the Montana press and the U. S. Indian agents. Sharp suggests that Power wanted this fight reported as a murder of the Indians. 1 Sharp's analysis here i s most reasonable. The Cypress H i l l s fight must have emphasized to the Fort Benton businessmen the adverse effects of whiskey on their Indian relations and trade. Power may have hoped that news of a massacre would lead both the U. S. and the Canadian governments to send troops to the West. The thought of lucra-tive military contracts may also have been a factor In Power's actions. After 1873 Power and Baker helped publicize the bad effects of the whiskey trade. Their t e r r i t o r i a l delegate to the U. S. House of Representatives, Martin Maginnis, who represented the interests of Montana's businessmen,2 spoke publicly vehemently denouncing the whiskey trade in Montana and Canada. In 1874 he requested an appropriation for a detective to trace whiskey traders at the Assiniboine ISharp, Whoop-Up Country, p.p. 67-77. Sharp based his conclusion on a report from James Wickes Taylor, the American consul in Winnipeg,'to Secretary of State Hamilton Fish. For another explanation of Power's role see P. Goldring, "Cypress H i l l s Massacre: A Century's Retrospect," Saskatchewan History 26 (Autumn 1973), PP- 81-102. 2For a discussion of the bipartisan group of business-men and politicians as the dominant p o l i t i c a l force in Montana see Clark C. Spence, Terr i t o r i a l Politics and  Government in Montana, 1864-89 (Urbana: University of I l l i n o i s Press, 1975), passim. 18 agency in northern Montana.1 Power and Baker wanted news of such incidents as the Cypress H i l l s fight broadcast widely. 2 They had a common interest i n this type of publicity; the partners in these firms made friends with the authorities in the West on both sides of the international boundary. Their companies cooperated with these authorities and made a profitable business of selling goods to them. The Canadian authorities in the form of the Mounted Police force was dispatched to the West in 1873- By the f a l l of 1874 they had established themselves in the North-West north of Port Benton. Their presence, in addition to the efforts of the American authorities and the desire of the Power and Baker trading houses to control the trade, quickly led to the collapse of large-scale, overt whiskey trading with the Indians in the region. It did not, of course, en-t i r e l y eliminate the whiskey trade. Power, Baker, and the Conrads fully supported the efforts of the Mounted Police to establish order. Power i n -structed his traders to keep whiskey away from their posts and to treat the police well.3 One of Baker's employees, Jerry Potts, served as a guide for the police and led them •'•Martin Maginnis, Proceedings of the House of Repre-sentatives, U. S. Congressional Record. May 9, 1974, p. 3730. 2This statement takes issue with Goldring who be-lieved that Power tried to tone down the report of the fight in order not to draw "attention to the bad effects of the whiskey trade." See Goldring, "Cypress H i l l s Massacre," p. 97. 3power & Bro., letter to J. Kerler, dated July 27, 1874, Power Papers, 179-1, letterpress pp. 127-130. 19 to a number of i l l e g a l whiskey trading posts in 1874 and 1875.1 In 1878 Power's trader at Port Macleod, Thomas Bogy, prosecuted one of that year's two cases In which men were charged with bringing liquor into the North-West.2 The Mounted Police and the Fort Benton merchants looked upon each other as a l l i e s . In his report for 1874 Police Commissioner George A. French referred to Baker & Company as "highly respectable merchants who do not s e l l whiskey."3 French also reported that he received f u l l cooperation in gathering evidence on the Cypress H i l l s incident while he was in Fort Benton in 1874.^ The Mounted Police and the Baker and Power companies viewed each other as complementary. Sharp, Goldring, and those historians such as Schlinberg who believe the American business interest was annexation have failed to recognize or accept Power's and Baker's common desire to see Canadian authority asserted in the Canadian North-West. •••Hugh A. Dempsey, "Jerry Potts: Plainsman," Montana:  The Magazine of Western History 1 7 (Autumn 1 9 6 7 ) , pp. 8 - 1 1 . 2Annual Report of the North-West Mounted Police for 1 8 7 8 , p. 5 0 . 3 G. A. French, Annual Report of the NWMP for 1 8 7 4 , p. 4 7 . In Cecil Denny's account of his days i n the North-West he said the Conrads had given up the whiskey trade "some time previous to our [NWMP] arr i v a l , " Denny, The Law  Marches West, edited by W. B. Cameron (Toronto: Dent and Sons, 1 9 3 9 )» p. 3 9 . This i s further evidence of the Fort Benton firms' attempting to portray themselves as apart from the whiskey trading crowd. ^French, Annual Report of the NWMP for 1 8 7 4 , p. 5 0 . The fact French could laud Baker & Company when he had " f u l l particulars" on the Cypress H i l l s incident Indicates that Power did not use the reporting of the fight to undermine Baker's position in the North-West as Sharp believed. 20 The support of the Mounted Police by the Port Benton merchants was not limited to the f i r s t few years the police were in the West. It continued into the 1880s and 1890s. In 1881 Commissioner A. G. Irvine turned to Baker & Company for help in locating a band of stolen horses which had been taken to Montana.1 After the Riel Rebellion in 1885 Baker & Company gathered information on Gabriel Dumont and the other Metis who had fled to Montana. These reports were forwarded to Lieutenant Governor Edgar Dewdney. In one instance the Mounted Police spy, G. H. L. Bossange, whom the Canadian gov-ernment had sent to investigate the Metis in Montana was unable to obtain the names of the people with whom these Metis corresponded.2 This was the gap which Baker & Company f i l l e d . One of Baker's men who lived near Dumont i n the Judith Basin area reported that Dumont received mail from Riel's secretary, William Jackson, and from Manitoba.3 Three years later when there was a rumor that Crowfoot, the Blackfoot chief, intended to move to Montana, C. E. Conrad investigated for Dewdney and the Mounted Police. Conrad reported that Crowfoot was well aware that Indians received better treatment north of the line 1A. G. Irvine, Annual Report of the NWMP for 1882, pp. 10-11. Irvine pointed out that he turned to Baker & Co. because he received l i t t l e help from the Indian agents. 2G. H. L. Bossange, letter to Commissioner of the NWMP, dated St. John, Dakota, April 22, 1888, Edgar Dewdney Papers, GAI, pp. 1337-1339-J01iver Pichette, letter to Baker & Co. dated Lewis-town, Feb. 1, 1886, Dewdney Papers, GAI, pp. 1274-1277. 21 and that the rumor was hogwash.1 The Montana businessmen supported the police in this manner because the actions of the Mounted Police served their interests by suppressing the whiskey trade, returning stolen horses, and bringing order to the North-West. The Power company agent at Maple Creek, D. W. Marsh, summed up the company's dependence on the police when he said, "The Indian question is getting too mixed to risk goods where there are no police." The River Press, one of the two Port Benton newspapers, also complimented the police: Our Canadian friends across the line have i n -variably done a l l they could to promptly arrest their raiding Indians who have been on this side of the line stealing stock, and promptly returned property to the owners i n every i n -stance where i t could be found.3 The Mounted Police helped the Port Benton companies not only by providing security for business transactions but also by providing a ready market for Power's and Baker's goods. Once the police reached southern Alberta the managers of these companies began currying favor with the police. Colonel James Macleod went to Port Benton for supplies in the IC. E. Conrad, letter to Edgar Dewdney, dated Port Benton, Dec. 27, 1888, Dewdney Papers, GAI, p. 1305. 2D. W. Marsh, letter to T. C. Power, dated Port Walsh, Jan. 27, 1880 [possibly 1881], Power Papers, 106-8. 3"Horse Thieves," River Press, June 15, 1887, p. 1. Granville Stuart, a rancher in the Judith Basin, also lauded the work of the police. See Stuart, Forty Years on the Frontier as Seen in the Journals and Reminiscences of Granville Stuart, edited by Paul C. Phillips (Glendale, Cal.: Arthur H. Clark Company, 1957), pp. 162-163. 22 f a l l o f 1874. Charles Conrad not only arranged f o r the sup-p l i e s ; he a l s o accompanied Macleod back to the p o l i c e en-campment. 1 T h i s was the b e g i n n i n g of a f r i e n d l y r e l a t i o n s h i p between the Conrads and the Mounted P o l i c e . Thomas Bogy, one o f Power's employees, compared t h i s r e l a t i o n s h i p with the one C. A. Broadwater had with the U. S. m i l i t a r y at Port Maginnis: "The C o l o n e l [Broadwater] seems to have as c l o s e a g r i p on these coyotes [at Port Maginnis] as Baker & Co. have on the p o l i c e . " 2 In a c t u a l i t y both Power and the Conrads had a " g r i p " on the p o l i c e . As soon as the p o l i c e e s t a b l i s h e d t h e i r p o s t s , Conrad and Power opened s t o r e s at the s i t e s . 3 The Baker com-pany was awarded the c o n t r a c t to b u i l d Port Calgary f o r the p o l i c e . As soon as the post was completed Baker & Company b u i l t a s t o r e nearby. In g e n e r a l , the a r r i v a l o f the p o l i c e marked the b e g i n n i n g o f an economic boom p e r i o d f o r Port Benton which l a s t e d i n t o the 1880s.1* The two Port Benton companies a n n u a l l y handled as much as t h i r t y m i l l i o n pounds o f f r e i g h t f o r the U. S. and Canadian governments. The Baker company r e p o r t e d that t h e i r b u s i n e s s ran i n t o the m i l l i o n s o f d o l l a r s each year.^ iDenny, Law Marches West, p. 39-2Thomas J . Bogy, l e t t e r to Power & Bro., dated Port Maginnis, June 4, 1881, Power Papers, 106-7-^See Denny, Law Marches West, pp. 61, 76, 85-86. ^Sharp, l".Merchant P r i n c e s , " p. 6. 5w. G. Conrad, "Business o f E a r l y Days at Port Benton," Great F a l l s Tribune, Dec. 16, 1906, p. 12, E l e a n o r Luxton C o l l e c t i o n , Notes re H i s t o r y o f I . G. Baker Company, GAI. View of Calgary, 1883 I. G. Baker & Company store, center foreground Photograph courtesy of Public Archives of Manitoba and Glenbow-Alberta Institute Calgary was started in 1875 by the Mounted Police. They are established on the West side of the Elbow River, just at i t s confluence with the Bow. Baker & Co. have a large post on the West side of the Elbow and south of the Mounted Police Barracks. Our post is on the East side of the Elbow, almost directly op-posite the Mounted Police. A l l three went there in 1875 and nearly in the same month. We have several small buildings about a quarter the size of Baker's. Baker has a large supply of goods on hand, their present stock being about $25,000. We had to buy what we wanted there, owing to there being nothing i n the H. B. Store. 1 Statement by C. T. Bridges, Extracts from Hudson's Bay Company Records, Peigan Post, 1833-1883, GAI. I. G. Baker Store In Calgary, 1882 Photograph courtesy of Glenbow-Alberta Institute I. G. Baker Store in Calgary, 1888 Photograph courtesy of Public Archives of Manitoba and Glenbow-Alberta Institute 25 In this way the presence of the Mounted Police strengthened the economic influence of Power and Baker in the North-West. Chief Factor Richard Hardisty of the Hudson's Bay Company reported in 1874 that "Baker and Coy. [sic] of Benton have sent out large outfits and intend paying very high prices for Robes." Hardisty did not think this would last long because Baker's goods were inferior to the Hudson's Bay Company goods.1 Hardisty's speculation proved inaccurate; the Hudson's Bay traders were not able to compete with the Power and Baker companies before the building of the Canadian Pacific Railway. One person who traveled through Calgary in 1882 reported that the Hudson's Bay Company store had almost no supplies while the Baker & Company store had a stock of goods worth twenty-five thousand doll a r s . 2 Another British v i s i t o r to the region in 1882 came away with the impression that Baker & Company controlled the North-West and proclaimed that they were "energetically 'running'" the area.3 Power & Brother and Baker & Company competed success-fully with the Hudson's Bay Company in Mounted Police and Indian contracting as well as in the commercial and Indian trade. These Fort Benton trading houses controlled the cheap-est supply route,-the Missouri River. The police found that iRichard Hardisty, letter to J. A. Grahame, dated Edmonton, Nov. 3, 1874, Extracts from Hudson's Bay Co. Records, Peigan Post, 1833-1883, GAI. Statement by C. T. Bridges, Extracts from Hudson's Bay Company Records, Peigan Post, 1833-1883, GAI. 3A. Staveley H i l l , From Home to Home (London: Sampson, Low, Marston, Searle, and Rivington, n.d.), p. 215. 26 by using Port Benton they could save f i f t y percent over bringing in goods from Edmonton.1 Sharp detailed the nature 2 and volume of this contracting in his book Whoop-Up Country. Sharp contended that the Baker and Power companies were ruth-less competitors in this contracting. This simply was not the case. Whenever possible these two firms divided the contracts and worked together to f i l l them. They combined to protect themselves and discourage outsiders. In 1875 T. C. Power and the Conrads discussed their companies' re-fusing to s e l l trading outfits to any Indian-trading com-petition. ^  Beginning in the 1870s the two companies f i l l e d some contracts j o i n t l y . 1 In 1874 Power & Brother's business records refer to settling up "the winter's business with Baker & Co."1* They cooperated on a Port Shaw, Montana, supply contract in 1876.5 They discussed their bids for Mounted Police contracts in the 1870s. 6 Then in the 1880s 1Prench, Annual Report of the NWMP for 1874, p. 17. 2See Sharp, Whoop-Up Country, pp. 207-223. 3 T . C. Power, letter to I. G. Baker, dated Fort Benton, Dec. 2, 1875, Power Papers, 180-1, letterpress p. 62. ^Power & Bro., letter to J. Kerler, dated July 27, 1874, Power Papers, 179-1, letterpress pp. 127-130; and T. C. Power, letter to I. G. Baker, dated Fort Benton, Dec. 9, 1975, Power Papers, 180-1, letterpress p. 115. JZ. W. Power, letter to W. G. Conrad, dated Fort Benton, March 20. 1876, Power Papers, 180-1, letterpress pp. 422-425. 6 J . S. H i l l , letter to T. C. Power, dated Fort Benton, March 12, I876, Power Papers, 180-1, letterpress pp. 391-397. H i l l told Power that John Power and Conrad discussed bids before they met with Commissioner Macleod. 27 they began to f o r m a l l y d i v i d e the Canadian and American governments' c o n t r a c t s . In a d d i t i o n to c o o p e r a t i n g on c o n t r a c t s another means of d i s c o u r a g i n g unwanted o u t s i d e r s b e f o r e the r a i l r o a d s were b u i l t was f o r Power and Baker to set low r a t e s f o r them-s e l v e s on the M i s s o u r i steamboats which they c o n t r o l l e d . 1 In a l e t t e r to Baker's agent at Port Benton, the P o r t Benton T r a n s p o r t a t i o n Company i n which T. C. Power h e l d the con-t r o l l i n g i n t e r e s t s a i d t h a t Baker's r a t e was "guaranteed, t h a t i s , no one i s to have a l e s s r a t e from our l i n e than you and o u t s i d e o f o u r s e l v e s [Power & B r o t h e r ] , Murphy Maclay & Co., W. S. Wetzel, J . H. McKnight, and Broadwater & Co., no one e l s e i s to have as good a r a t e by ten per c e n t . . . " 2 T h i s con-t r o l o f the supply route was e f f e c t i v e u n t i l the r a i l r o a d s pushed i n t o Montana and the North-West i n the e a r l y 1880s. The r a i l r o a d s , of course, broke the monopoly Power and Baker had h e l d on the supply r o u t e . T h e i r n a t u r a l response was to draw c l o s e r t o g e t h e r . To t h i s end they agreed to d i -v i d e up the government c o n t r a c t i n g b u s i n e s s . In January 1881 they decided to s p l i t the Montana and Canadian c o n t r a c t s . Power was to b i d h i g h e r than Baker & Company f o r c o n t r a c t s i n the North-West, while the Conrads were to b i d h i g h e r than 1 I n 1874 the two companies combined to b u i l d the steamer, "Benton." See Notes re I. G. Baker & Co., E l e a n o r Luxton, C o l l e c t i o n , GAI. L a t e r when Power's Block "P" L i n e came to dominate the r i v e r t r a f f i c they s t i l l pooled f r e i g h t charges. See, f o r example, Agreement between Baker & Co. and Power & Bro., P e b . l , 1882, Power Papers, 273-42. ^Port Benton T r a n s p o r t a t i o n Company, l e t t e r to Tom Todd, I . G. Baker & Co. agent, dated March 3, 1883, Power Papers, 15-30. 28 Power & Brother on the Montana contracts. In return each was to get one fourth of the other's contract profits. They further agreed that i f any one else obtained part of these contracts, "neither party [was] in any way to assist ln freighting or helping the outside party getting the contract to f i l l i t in anyway whatever either directly or indirectly but to do a l l they [could] to honorably defeat them."1 Part of their deal in 1881 was to eliminate their r e t a i l trade competition i n Canada. Power sold his store and stock of goods at Port Macleod to Baker & Company, and the Conrads sold their stock of goods at Port Walsh to Power & Brother. 2 Needless to say the result of these agree-ments was higher prices. The "people in the Macleod country [got] i t 'bang in the nose' on prices. They could not appreciate having two houses there, when we were there—They probably understand matters a l i t t l e better now."3 This dividing up of the territory was not the result of friendly relations among the owners of these companies. Instead i t was a response to the force of circumstance. Both sides kept their eye on the other; for instance, Power wrote D. W. Marsh to find out what profits Baker & Company was 1Agreement between Baker & Co. and Power & Bro., Jan. 18, 1881, Power Papers, 273-28. ^Ibid. See also Thomas J. Bogy, letter to Power & Bro., dated Port Macleod, Feb. 23, 1881, Power Papers, 106-7; and agreement between Baker & Co. and Power & Bro., Sept. 12, 1881, Power Papers, 273-28. 3Thomas Bogy, letter to T. C. Power, dated Poplar Creek, Montana, Dec. 1/1881, Power Papers, 14-21. 29 making on the contracts. 1 He obviously did not fu l l y trust the Conrads' personal reports. Neither firm was above a shady deal every now and again, and they had good reason to check up on one another. When Marsh went through the total stock of goods Baker & Company had sold to Power's store at Port Walsh, he noted that the Conrads had l e f t more than they promised in total stock. What the Conrads had "neglected" to mention was that "trash [was] way up in the l i s t " of goods l e f t for Power & Brother. 2 The Power-Baker alliance in 1881 was extended in 1882 on similar terms; the only difference was that this year they included a clause stating that they were working against Broadwater.3 The strength of their alliance can be seen in Broadwater's joining in the agreement for the following year.1* Power's business records indicate that agreements to divide up the Canadian and Montana government contracts continued in one form or another until 1892 when the Baker & Company partnership dissolved i t s e l f . 5 1D. W. Marsh, letter to T. C. Power, dated Port Walsh, Feb. 15, 1882, Power Papers, 107-1. p Marsh, letter to Power & Bro., dated Fort Walsh, Sept. 21, 1881, Power Papers, 106-9. •5 JAgreement between Baker & Co. and Power & Bro. for year July 1, 1882, to June 30, 1883, Power Papers, 274-2. ^Articles of agreement among Power & Bro., Baker & Co., and Broadwater, April 12, 1883, Power Papers, 274-2. ^See, for example, the following documents in the Power Papers: Agreement for the year July 1, 1883, to June 30, 1884, 274-2; letter from I. G. Baker to T. C. Power, dated St. Louis, April 19, 1887, 84-4; letter from Baker & Co. to T. C. Power, dated New York, May 21, 1888, 84-4; and letter from T. C. Power to D. W. Marsh, dated Chicago, May 9, 1889, 149-5-3 0 The business activities of T. C. Power & Brother and I. G. Baker & Company suggest some reinterpretation of the attitudes, interests, and practices of frontier businessmen. Sharp said that they operated within the context of an "indi-vidualistic ethic" and that there was a certain "economic shortsightedness" about their a c t i v i t i e s . 1 The evidence presented in the Power company's letters do not support Sharp 1s generalizations. Quite often the Powers and the Conrads acted in collusion; they were more cooperative than individ-u a l i s t i c . In addition, the fact that they were not mere responders but also actors creating opportunities for them-selves indicates their farsightedness. They were successful because they were farsighted and cooperative; these were the characteristics which facilitated their adaptation to the economic changes in the northern Montana-southern Alberta region in the 1 8 7 0 - 1 8 9 6 period. T. C. Power and the Conrad brothers did not resist change in the Canadian North-West by pressuring for annexation of this region by the United States. They were simply not annexationists. Their approach to the "Canadianizing" of the North-West was to adapt their own business practices in such a way as to turn Canadian assertion of control of the region to their own economic advantage. This becomes most clear in their relationship with the Canadian Pacific Railway. 1Sharp, Whoop-Up Country, pp. 2 0 7 - 2 0 9 . CHAPTER II THE RAILWAY, RANCHING, AND FRONTIER BUSINESS The arrival of the Canadian Pacific Railway in southern Alberta in 1883 wrought no immediate and overwhelming changes in the area's economy, social orientation, or p o l i t i c a l t i e to Canada. It also did not diminish the desire of Power and the Conrads to invest money in the Canadian North-West and to promote i t s economic development. In the mid-l880s they increased their Canadian contracting and ranching interests. This i s not to say that the railway had no impact on the region. The construction boom associated with the CPR and the location of the line did alter aspects of the economy, but i t is inaccurate to assign to the railway sole credit for i radical change and to view i t as the harbinger of metropolitan domination of the North-West by eastern Canada. Actually the railway was simply one aspect of the gradual process of the economic development of the southwestern prairie region. A l l of this contradicts what Paul Sharp and others have concluded about the impact of the CPR. Sharp asserted that the railway severed the ties between Montanans and Albertans. According to Sharp, "Settlers on both sides lost the sense of regional unity [after 1883]...their economic and social 31 32 contacts were increasingly casual." 1 Too often the h i s t o r i -cal assessment of the Canadian Pacific Railway has been based upon myths rather than an analysis of actual changes i t brought to an area. Historians who have based their ap-praisal of the impact of the Canadian Pacific upon the nationalist rhetoric of the time have tended to assume that i t brought sweeping change to the North-West. The following statement by C. M. Maclnnes illustrates this kind of thinking: It is almost impossible to overestimate the importance of the construction of the Canadian Pacific Railway in the history of Southern Alberta. Before the railway arrived, the country was so inaccessible, that to develop i t was impossible...The railway at once provided a ready access to the country from a l l parts of the world, and i t passed at one stride from an almost useless wilderness to a valuable f i e l d of investment and development.2 For Maclnnes and other Canadian historians the railway has come to be accepted as a "prerequisite of viable nationality. " 3 This i s partly the result of the influence of H. A. Innis. In the 1920s, when railways were s t i l l viewed as synonymous with progress? Innis concluded that "the completion of the main line of the road was a significant landmark in the spread of c i v i l i z a t i o n throughout Canada."1* Innis 1:idea.. •"•Sharp, Whoop-Up Country, p. 313-316. 2C. M. Maclnnes, In the Shadow of the Rockies (London: Rivingtons, 1930), p. 187-3 H . v . Nelles, Introduction to T. C. Keefer, Philosophy  of Railroads and Other Essays (Toronto: University of Toronto Press, 1972), p. x i . ^H. A. Innis, A History of the Canadian Pacific Railway (Toronto: University of Toronto Press, 1971, f i r s t published 1923), p. 128. 33 was that the railway brought Canadian " c i v i l i z a t i o n " to the West and, at the same time, changed the nature of that " c i v i l i z a t i o n " by tying the nation together. Innis failed to note that important bonds linking the North-West to eastern Canada were forged before the construction of the CPR. Canadian social, p o l i t i c a l , and economic influence in southern Alberta stemmed from two approaches to the West which were unique to Canada—the North-West Mounted Police and the grazing lease system. The process of Canada's extending i t s control over the North-West began with the arrival of the Mounted Police in 1874. They came to the area with hopes of being able to establish order based upon f a i r treatment of the Indian. James Macleod, the Mounted Police Commissioner in 1877, was well aware of the corruption in the United States Indian Department and of the violation of treaties with the Indians by the American settlers. He wanted to set up a different pattern in the Canadian North-West.1 The police officers "came to the North-West determined to mould i t according to their image of what Canadian society should be." These officers intended for Canada to have a West based on law and order and trustful relations with the Indians. This explains in part why historians have had d i f f i c u l t y applying Turner's frontier thesis to Canada. The Canadian approach to the North-West was to transfer social values in order to "'•James Macleod, letter to David Mills, Minister of the Interior, dated Port Macleod, Oct. 27, 1877, Annual Report of the NWMP for 1877, p. 46. 2R. C. Macleod, The NWMP and Law Enforcement, 1873-1905 (Toronto: University of Toronto Press, 1976), p. 81. 34 protect i t from American influence. The Mounted Police made a specific attempt to I n s t i l l Canadian values in the settlers who came to the North-West. Commissioner L. W. Herchmer designed a patrol system in the 1880s and 1890s with the idea that each settler would be visited periodically. His thinking was that by means of these v i s i t s the Americans who settled in the North-West would be convinced that things were different in Canada.1 Two of the major Ideas which the police tried to i n s t i l l in the settlers were that society should defer to an eli t e and that "Canadian society was more orderly and law-abiding than others." 2 This attitude Is borne out by former-policeman Cecil Denny's account of his l i f e in the North-West in the 1870s and 1880s. Denny often compared conditions in the North-West with the situation across the border in Montana. In his opinion "lawlessness was rife...[and] lynchings were frequent" in Montana.^ For comparison Denny referred to the fact that the Indian agents in Canada traveled around with the annuity money but were never robbed.Despite the fact that Denny's statements are from his reminiscences and cannot be accepted at face value, they do indicate that the Mounted Police wanted 1R. C. Macleod, "Canadianizing the West: the Northwest Mounted Police as Agents of the National Policy, 1873-1905," in Essays on Western History, edited by Lewis H. Thomas (Edmonton: University of Alberta Press, 1976), pp. 106-107; and Macleod, NWMP, p. 45. 2Macleod, NWMP, p. 79; and "Canadianizing the West," p. 105. ^Denny, The Law Marches West, p. 139. 11 lb i d . , p. 191/ 35 to perceive the Canadian West as distinct from the American West.1 Denny wrote to Dewdney in 1883 that "in no other country in the world, where many different tribes of Indians, but recently brought under c i v i l i z a t i o n , are livi n g and ranging, does so l i t t l e cattle k i l l i n g and molestation of settlers go on." In Denny's opinion the violence in Canada was not the fault of the Indians but of the few stockmen who insisted upon acting like Montanans by threatening to k i l l p Indians. The success of the Mounted Police in maintaining a different order in the North-West as compared to Montana can be seen in the activities of the Montana businessmen operating in Canada. Por example, D. W. Marsh explained to Power that he could not s e l l cartridge belts at any price, "the government being so s t r i c t in the sale of arms and ammunition that there i s no demand for belts."3 Marsh recog-nized that southern Alberta was no mere extension of Montana. Even before the completion of the CPR "national differences 11 prevailed over the sameness of the physical environment." The ranching frontier in southern Alberta fitted into the social order developed by the Mounted Police. Before -'•Interestingly in 1906 W. G. Conrad looked,back to Montana in the 1870s in a similar vein and described the time he loaded $70,000 into a buggy and drove off alone without fear of robbery. W. G. Conrad, "Business of Early Days at Port Benton," Great Palls Tribune, Dec. 16, 1906, p. 12, in E. Luxton Collection, GAI. 2Denny, letter to Edgar Dewdney, dated Port Macleod, July 10, 1883, Dewdney Papers, p. 1149-1150. ^Marsh, letter to Power & Bro., dated Calgary, March 8, 1886, Power Papers, 129-6. ^Sharp, Whoop-Up Country, p. 206. 36 1880 a large number of the ranchers were ex-policemen.1 After 1881 and the institution of the grazing lease system, the ranching community was dominated by British and eastern Canadian gentlemen. David Breen described the relationship between the police and these ranchers as one of harmony. They worked together to build "an ordered, s t r a t i f i e d , and ' c i v i l i z e d ' community," that i s , a "British-Canadian West" that would stand in contrast to the American West. The "sociai orientation [of these Canadian ranchers] was eastward rather than south-ward. The Canadian approach to ranching in southern Alberta was no carbon copy of the American approach to the Great Plains. The Dominion government's grazing lease system which appropri-ated large parcels of land to individual ranchers was unique. This system, like the Mounted Police, helped to make the region socially, p o l i t i c a l l y , and economically Canadian. Americans had rejected this idea as^"undemocratic" because i t would favor the large cattle enterprises over the small ranchers. !David H. Breen, "The Canadian West and the Ranching Frontier, 1875-1922," Ph. D. dissertation, University of Alberta, 1972, p. 27. 2Breen, "The Turner Thesis and the Canadian West: A Closer Look at the Ranching Frontier," in Essays on Western  History, pp. 152-153-^Breen, "The Mounted Police and the Ranching Frontier," in Men in Scarlet, edited by Hugh A. Dempsey (Calgary: Historical Society of Alberta and McClelland and Stewart West, n.d.), pp. 120-121. ^Robert S. Fletcher, "The End of the Open Range in Eastern Montana," in Montana' Past: Ah Anthology, edited by Michael P. Malone and Richard B. Roeder (Missoula: University of Montana Press, 1 9 6 9 ) , PP- 145-146. 3 7 Montanans expressed their opposition to leases In a memorial passed by the Territorial Legislature and sent to Martin Maginnis to be introduced into the Congressional Record. 1 In addition to the lease system Canadians modified the American approach to ranching by separating the cattle and sheep ranges. 2 Canadian leaseholders, most of whom were from eastern Canada or the British Isles, began with the intention of using the Alberta range to raise purebred stock for the British market. In 1882 Senator Matthew Cochrane, who had collaborated with the Macdonald government in drawing up the lease system, went to great expense to ship to Alberta four polled Angus bulls in order to introduce blooded stock to his range on the Bow River.3 Cochrane's plans influenced some Montana ranchers. Power told his agent at Fort Benton to try to buy two of the bulls when they arrived by steamboat. Power was willing to "go as high as $700 or even $800 for the two."1* Cochrane was unwilling to s e l l , ^ and Power eventually purchased his own •^Martin Maginnis, Proceedings of the House of Representatives, U. S. Congressional Record, Feb. 14, 1881, p. 1567. 2A. M. Burgess, Deputy Minister of the Interior, Annual Report for 1884, 1885 Parliamentary Sessional Papers Vol. XVIII Part 7 No. 13, p. x i i . 3T. C. Power, Letter to Joe H i l l , dated Chicago, April 22, 1882, Power Papers, 147-6. 4 I b i d . 5M. H. Cochrane, letter to T. C. Power, dated Quebec, May 8, 1882, Power Papers, 15-10. Cochrane did s e l l Power a three year-old heifer and a two year-old heifer. 38 Angus b u l l s In eastern Canada. 1 In many respects, then, ranching i n southern Alberta was d i s t i n c t from ranching i n Montana, and In one case, at l e a s t , the Canadian approach led to a change i n ranching technique i n Montana. In sum, Professors Macleod and Breen have already concluded that the p r i n c i p a l agents of the s o c i a l and p o l i t i c a l "Canadianizing" of the North-West were the Mounted Police and the ranchers. These men brought a Canadian value system to the West, and, i n the case of the p o l i c e , they brought Canadian authority and law to the West. Their enforcement of Canadian law helped to t i e southern Alberta and Saskatchewan to eastern Canada economically. The Power and Baker companies appear to have abided by the t a r i f f laws of Canada once the Mounted Police reached the North-West i n 1874. Power & Brother instructed t h e i r trader at Fort Kipp i n southern Alberta to "show [the p o l i c e ] your invoices i f necessary and t e l l them we stand ready to pay any duties the law demands."2 The Influence of the police and the e x i s t i n g •^Duncan C. Plumb, l e t t e r to T. C. Power, dated Toronto, Feb. 3, 1885 Power Papers, 17-8. 2Power & Bro., l e t t e r to John Kerler, dated Fort Benton, July 27, 1874, Power Papers, 179-1, letterpress book pp. 127-130. Power & Bro. did i n s t r u c t Kerler to remove strychnine from a l l invoices, but otherwise they seem to have been i n a position to play i t straight with the p o l i c e . Power personally favored the idea of a protective t a r i f f . At one point he said that the free trade movement would "ruin our northern country." T. C. Power, l e t t e r to A. C. Johnson, dated Helena, March 7, 1888, Power Papers, 149-3. Power also belonged to the American Protective T a r i f f League which helped him get elected Montana's senator i n 1889. Mahlon Chance, Assistant General Secretary, American Pro-tective T a r i f f League, l e t t e r to T. C. Power, dated New York, Sept. 4, 1889, Power Papers, 1-10. 39 t a r i f f structure in 1874 led Power and Baker to experiment with buying and selling goods in eastern Canada. Power's f i r s t attempt was a fiasco because the company to which he assigned his Canadian buffalo robes sold them at a loss. Power referred to the return as "a half price slaughter for over Pour Thousand Robes." He wished that the robes "had burned up before they struck Montreal;" in his view he had been cheated by the Montreal "buffalo r i n g . " 1 Power's i n i t i a l response to this was to determine to pay the duty on the Canadian robes and s e l l them in the United States, 2 but, at the same time, he investigated the possibility of dealing with other Canadian firms. He wrote to W. E. Sanford in Hamilton, Ontario, to request Sanford to investigate the possibility of a market for buffalo robes in that city.3 Power also wrote to T. James Claxton & Company in Montreal requesting them to act as agents on robes sales and to give prices on blankets ordered in Montreal or in England.1* In 1876 Power sold 3000 1Power & Bro., letter to McDonald Moddin & Co., Montreal, dated Port Benton, Nov. 29, 1875, Power Papers, 180-1, letterpress book p. 24. 2T. C. Power, letter to T. Bogy, dated Fort Benton, Nov. 26, 1875, P6wer^Papei?s?^l80^1]y.'.rletterpress book pp. 7-9. The "buffalo ring" may refer to the Hudson's Bay Company's influence in Montreal. The U. S. Congress doubled the duty on imported robes and pelts in I876, so Power must not have been able to follow through with the plan to s e l l in the U.S. 3p0wer & Bro., letter to W. E. Sanford, dated Fort Benton, Nov. 26, 1875, Power Papers, 180-1, letterpress book p. 3. ^Power & Bro., letters to T. James Claxton & Co., dated Port Benton, Oct. 24, and Nov. 26, 1875, Power Papers, 179-3 and 180-1. 40 C a n a d i a n b u f f a l o r o b e s t h r o u g h C l a x t o n . 1 As e a r l y a s 1875 a n d I876, t h e n , t h e U. S. a n d C a n a d i a n t a r i f f s h a d l e d Power and B a k e r t o u s e C a n a d i a n m a r k e t s f o r t h e i r N o r t h - W e s t f u r s a n d b u f f a l o r o b e s . E a r l y I n 1875 Power t h o u g h t o f a way t o a v o i d C a n a d i a n t a r i f f s a n d t o a l l o w h i m t o s h i p e a s t e r n C a n a d i a n g o o d s t o s o u t h e r n A l b e r t a b y t h e N o r t h e r n P a c i f i c R a i l r o a d a n d h i s M i s s o u r i R i v e r s t e a m b o a t l i n e . H i s p l a n was t o p o s t a b o n d w i t h t h e U. S. g o v e r n m e n t a n d t h e n s h i p t h e C a n a d i a n g o o d s a c r o s s t h e U n i t e d S t a t e s . He o u t l i n e d h i s i n t e n t i o n s t o M a r t i n M a g i n n i s a n d a s k e d M a g i n n i s t o h e l p make t h e a r r a n g e -ments . I w i l l go t o W a s h i n g t o n a n d h e l p w o r k i t t h r o u g h f o r we must a c c o m p l i s h t h e s h i p p i n g i n b o n d a r r a n g e m e n t — a s i t w i l l s a v e us c o n s i d e r a b l e money a n d u n l e s s we c a n do i t we c a n n o t c o p e w i t h t h e H udson's Bay Company who s h i p i n t h a t way v i a S t . P a u l . Work i t up M a j [ o r ] and I w i l l s e e a l l y o u r e x p e n s e s a r e p a i d f o r i t w i l l c e r t a i n l y [ b e ] a b i g t h i n g f o r o u r p a r t o f t h e c o u n t r y . The s h i p p i n g i n b o n d p r o p o s a l was a c c e p t e d , a n d Power & B r o t h e r a n d B a k e r & Company f i l l e d p o l i c e a n d I n d i a n s u p p l y c o n t r a c t s w i t h C a n a d i a n g o o d s . 3 The i n t r i g u i n g a s p e c t o f t h i s i s t h a t x P o w e r & B r o . , l e t t e r t o T. James C l a x t o n & Co., d a t e d F o r t B e n t o n , J u n e 13, 1876, Power P a p e r s , 180-2. 2 T . C. P o w e r , l e t t e r t o M a r t i n M a g i n n i s , a s q u o t e d i n S h a r p , " M e r c h a n t P r i n c e s , " p p . 11-12. S h a r p n o t e s t h a t t h i s l e t t e r I s n o t d a t e d b u t he b e l i e v e s i t was w r i t t e n i n e a r l y 1875. S h a r p ' s a s s u m p t i o n i s s u p p o r t e d by t h e e v i d e n c e o f Power & B r o t h e r ' s o u t g o i n g c o r r e s p o n d e n c e . 1875 a p p e a r s t o be t h e b e g i n n i n g o f t h e company's d e a l i n g s w i t h C a n a d i a n f i r m s . ^ S h a r p , " M e r c h a n t P r i n c e s , " p. 11. S h a r p s a y s most o f t h e c a r g o e s f o r t h e N o r t h - W e s t were s h i p p e d i n b ond f r o m e a s t e r n Canada o r E n g l a n d . 41 the economic t i e between southern Alberta and eastern Canada was being formed before Macdonald's National Policy and i t s increase in t a r i f f s . The protective t a r i f f of 1879 only reinforced a preexisting trade pattern. The U. S. t a r i f f on buffalo robes and the enforcement of Canada's pre-1879 t a r i f f duties by the Mounted Police led to Power's doing business with Canadian firms. The 1879 t a r i f f did lead to am increase in the volume of goods Power and Baker purchased in Canada, but this was a quantitative change not a qualita-tive change. The business records of Power & Brother indicate an increase in correspondence and business transactions with Canadian companies after 1879-It i s true that not a l l the goods for the North-West were purchased in Canada. Throughout the period 1875-1893 the Port Benton companies.watched prices closely. When American items could be imported for less than the cost of Canadian goods plus freight, Power & Brother and Baker & Company used American products. In 1881 Marsh considered buying his blankets in the U. S. rather than Canada.1 In 1882 Marsh paid over $46000in t a r i f f charges for goods he imported for the Port Walsh Post. 2 In addition, the annual reports of the Mounted Police refer to duties-collected at Fort Walsh and Fort Macleod. In 1876 the police collected •'•Marsh, letter to Power & Bro., dated Fort Walsh, Nov. 16, 1881, Power Papers, 14-14. 2Marsh, letters to Power & Bro., dated Fort Walsh, Jan. 7, June 26, and Sept. 27, 1882, Power Papers, 107-1, 2, 3. over sixteen thousand d o l l a r s i n customs duties at Fort Macleod and over f i v e thousand dollars at Fort Walsh. 1 Despite the fact that these companies purchased some of t h e i r goods f o r the North-West i n the U. S., they s t i l l c a r ried on a large volume of business with Canadian firms. Power did most of his Canadian purchasing i n Montreal from clothing companies, wholesale grocers, tobacco supply houses, and wholesale hardware firms. The volume of business Power & Brother had i n Montreal can be estimated by t h e i r spring 1882 order from Tees, Costigan, and Wilson. The amount purchased from t h i s wholesale grocery business for t h i s p p a r t i c u l a r spring came to more than three thousand d o l l a r s . In both 1881 and 1882 Power & Brother ordered over two thousand do l l a r s worth of goods from the Montreal company which supplied them with blankets for trade.3 Montreal and eastern Canada, therefore, exerted an economic influence i n the area long before the a r r i v a l of the CPR. This influence F r e d e r i c k White, Annual Report of the NWMP for 1876, p. 25 . Marsh mentions a figure of twenty p e r c e n t f o r duties on blankets i n his l e t t e r to Power of Nov. 16, 1881. Taking t h i s as an average, one could conclude that i n 1881 he im-ported approximately $25,000 worth of goods at Fort Walsh and that i n 1876 the t o t a l import value was about $100,000. For a comparison see the following page and note the t o t a l value of goods Baker & Company supplied under only one Indian contract i n 1881. I f the value of a l l goods Baker and Power supplied under contracts and for t h e i r stores were totaled, one can see that imports from the U. S. constituted only a small portion of the t o t a l volume of goods sold i n the North-West by 1881. Tees, Costigan, and Wilson, l e t t e r s to Power & Bro., dated Montreal March 30, and A p r i l 15, 1882, Power Papers, 120 -1 . 3Memorandums from James Johnston & Co. to Power & Bro., dated Montreal, Sept. 14, 1881, Power Papers, 1 20 -1 . 43 I. G . Baker & Co do D. W. Davis N.-W. Mounted Police.... A. Sibbald Rev. J. McDougall. ...... B. J. Cochrane J. Murray G. F. Wnchler French, Moore & Smith... G . 0. King T . Robinson T. Banbury ?proul & Walsh R. Carman K. D. Graham D. McDougall W. Munro... S. J. Hark Sundry persons Treaty No. 1. For Supp'ics Commission on advances... Supplies Turnips do do. do : do Beef. Supplies Beef and turnips .... Ploughing Ploughing and harrowing. Ploughing Medicines ] boat.: Transport of Indians Material for coffin Freighting Total Expenditure.. Over-expended....... 261,605 77 161 65 27,716 63 1C7 61 90 00 150 00 200 62 277 28 207 45 4,003 15 107 75 757 65 100 00 572 00 355 00 218 94 35 00 135 00 10 00 10,152 69 297,014 22 563,151 80 39,309 68 DBPABTMENT OF INDIAN AFFAIRS, • OTTAWA, 30th Jnne, 1882. EGBERT SINCLAIR, Atcountant.' L. VANKOFGBNET, Deputy Supt.-General of Indian Affairs. S u p p l i e r s o f Goods f o r D e s t i t u t e Indians Under Treaty Seven 1881 Note I. G. Baker & Company's dominant p o s i t i o n . tended to increase yearly as Baker and Power cultivated new Canadian contacts and as the region developed with the begin-nings of the ranching industry. Some historians have overgeneralized i n arguing that there was^a "north-south p u l l of American markets" i n operation i n the late nineteenth century. 1 At least as far as the southern Alberta and Saskatchewan region i s concerned the t a r i f f structure of 1874 was enough to induce an east-west movement of Canadian goods. The business a c t i v i t i e s of the Baker and Power companies benefited the Montreal economy and helped to extend t h i s c i t y ' s metropolitan influence i n t o the North-West. Historians have also misstated the case i n asserting that "Canadians deplored the economic domination of t h e i r plains by the I. G. Baker and T. C. Power f i r m s . " 2 Canadian s e t t l e r s did not object to these companies because the Port Benton supply route meant lower p r i c e s . As far north as Battleford, Saskatchewan, the l o c a l newspaper re-ported i t s pleasure with the "new and cheaper route from eastern markets to Battleford and a l l points to the south, west, and north....The road to Benton i s both shorter and easier to t r a v e l than the road to Winnipeg."3 Although the •'•H. Q. J, Aitken, "Defensive Expansionism: The State and Economic Growth i n Canada," i n Approaches to Canadian  Economic History, edited by Wv T...Eas.ter.br6ok and M. H. Watkins (Toronto: McClelland and Stewart, 1967, t h i s a r t i c l e was f i r s t published i n The State and Economic Growth, 1959), p. 204. I am not disputing Aitken's o v e r a l l thesis that Canada's transcontinental economy i s a p o l i t i c a l creation. p ^Sharp, Whoop-Up Country, p. 310. 3Saskatchewan Herald, Nov. 4, 1878, p. 2. Opposition in the House of Commons complained of "Yankee" firms, 1 the Macdonald government was not hostile. Public p contracting was a "necessity." Privately Macdonald went out of his way to support the Port Benton companies and to maintain their presence in the North-West. When Edgar Dewdney was appointed Lieutenant Governor he was speci f i -cally instructed to arrange for funds to pay the Indians and the police in the North-West through Baker & Company.3 Also, the Macdonald government issued to the Conrads and Power ex-tensive grazing leases in the mid-lSSOs.1* This indicates that the Conservative government was not worried that these com-panies posed a threat to Canada's well-being. By the mid-l880s the railroad was completed. If the Conservative government had been opposed to the economic influence of these Port Benton firms, i t would not have granted them leases which allowed them to extend their economic penetration of the North-West . The above paragraphs summarize the situation in the North-West to 1883. Socially, p o l i t i c a l l y , and economically the area was Canadian. Por this reason the railroad was, in •'-J. Charlton, Dominion of Canada, House Debates, May9, 1883, p. 1102. 2 J . A. Macdonald, ibid. 3 j . s . Dennis, Deputy Minister of the Interior, letter to E. Dewdney, dated Ottawa, May 31, 1879, Dewdney Papers, GAI, pp. I 8 O - I 8 9 . ^Duncan McEachran, Veterinary Surgeon, Annual Report of the Minister of Agriculture for 1886, I887 Sessional Papers Vol.XC Part 10 No. 12, pp. 213-214. McEachran listed W. G. Conrad as a leaseholder for Ranches No. 92 and 240 and T. C. Power as leaseholder for Ranche No. 186. 4 6 reality, neither a p o l i t i c a l nor an economic necessity for the "Canadianization" of a "threatened" transborder region. At the time, though, i t was believed by some to be an essential ingredient for nationhood, and those Canadians who opposed the Power and Baker interests thought the presence of the CPR would eliminate their influence. Occasionally this rhetoric was merely a facade for narrow business inter-ests. Certainly this was the Hudson's Bay Company's posi-tion; they expected that by equalizing the supply route the railroad would allow them to compete in the r e t a i l business with Baker & Company at Calgary.1 Most Canadian historians have assumed that the r a i l -way actually did eliminate American influence in the region. In fact, i t did not. Power & Brother and Baker & Company expanded their activities in the North-West in the mid-l880s. The years during and shortly after the construction of the railway were boom years. This period was followed by several years of stagnation until the arrival of the settlement waves after 1896. The business of the Port Benton companies followed this general pattern during the period 1882-1893• Like other companies the Power and Baker companies benefited from the construction monies spent by the CPR. After the CPR had reached the southern Alberta region Power & ^C. F. Hardisty, letter to James A. Grahame, dated Edmonton, June 20, 1882, HudsonJs Bay Co. Records, Peigan Post, 1833-1883, GAI. 2See, for example, Peter B. Waite, Canada 1874-1896:  Arduous Destiny (Toronto: McClelland and Stewart, 1971), p. 70. Waite asserts that I. G. Baker's relationship with the Mounted Police ended in 1883. Brother obtained a large beef contract from the railway construction company. This i s an excellent example of Power's and his employees' making an opportunity for them-selves from the economic advancement of the North-West. In the spring of 1882 A. P. Samples, Power's cattleman i n Canada, had suggested that there was big money i n s e l l i n g beef to the CPR. Samples t o l d Power to contact the CPR o f f i c i a l s and arrange i t . 1 In the end Samples did the arrang ing i n 1884 by dealing with a man named Ross, one of the men i n charge of the construction work. In keeping with the common business procedures of the day, Samples "had to l e t him [Ross] i n on the deal one t h i r d . " 2 As Samples saw i t giving Ross an inter e s t was a good idea, because t h i s way Ross had a stake i n seeing that the r a i l r o a d expedited d e l i v e r i e s of contract supplies.3 The contract began on May 1, 1884; Power, Samples, and Marsh shared In the p r o f i t s . Once they had t h i s contract requiring them to supply the CPR crews west of Calgary the dominant theme i n Marsh Is and Samples' l e t t e r s to Power was that i t was a hard contract to f i l l . I t was an expensive contract and the CPR was iA. P. Samples, l e t t e r to T. C. Power, dated March 7, 1882, Power Papers, 162-8. 2Samples, l e t t e r to T. C. Power, dated St. Paul, March 24, 1884, Power Papers, 162-8. ^Samples, l e t t e r to T. C. Power, dated B i l l i n g s , A p r i l 28, 1884, Power Papers, 148-3. ^Memorandum of agreement between Samples and Power & Brother and Canadian P a c i f i c Railway, A p r i l 23, 1884, Power Papers, 274-13. 48 consistently slow with, payments.1 The contract was a d i f f i c u l t one in more respects than simply getting cattle delivered to the end of track. At one point Samples said he had to jump from a runaway locomotive. He landed "among the stumps," and, as he put i t , "I landed head over heals [sic] and went spinning down the mountain." Samples was able to report that he suffered no broken bones but that the engine was "dashed to pieces." 2 In f i l l i n g this contract they had to drive cattle through mountain passes. The driv-ing of the cattle worked a l l right with domestic cattle, but Marsh was worried that they would never be able to control wild cattle in the rugged country.3 They solved this problem by slaughtering the wild cattle at Calgary in the winter and shipping and storing the meat frozen.2* The CPR was late with i t s payments to Power & Brother throughout the contract period. Samples said that Ross had been spoiled by "supreme power" and that he always put Samples off when i t came to paying Power & Brother. Samples informed T. C. Power that in order to solve this problem he "just quitely [sic] read the r i o t act to him...and he seams [sic] 1Samples, letters to T. C. Power, dated Calgary, Oct. 15, and Oct. 21, 1884, Power Papers, 162-8, see also Marsh,' letter to Power & Bro., dated Calgary, June 10, 1884, Power Papers, 129-3• 2Samples, letter to T. C. Power, dated Calgary, Oct. 15, 1884, Power Papers, 162-8. 3Marsh, letter to T. C. Power, dated Calgary, June 27, 1884, Power Papers, 16-30. ^Marsh, letter to T. C. Power, dated Calgary, Jan. 2, 1884, Power Papers, 129-3* 49 to have changed his tune since." 1 The contract ran for approximately one year, and in the end the CPR made a l l pay-ments; the Dominion government1s loan to the CPR in 1885 2 made this possible. The value of the project can be seen in the profit of $32,781.73 which Power & Brother showed on this CPR contract.3 This represented a one third share, therefore i t turned out to be a lucrative contract for Power. It i s only one example of how the arrival of the CPR opened to Power new interests in the North-West. The increased development of ranching in southern Alberta after 1883 also brought profits to the Power and Baker companies. Montana was a supply base for stock for the Canadian cattle and sheep ranches. In 1883 Power worked out a deal with McEachran, manager of the Walrond Ranche, where-by McEachran purchased most of Power's Montana herd. McEachran paid $100,000 for this herd.2* As a part of the deal Power obtained an interest In the Walrond Ranche Company.-' This transaction was no isolated incident; the annual reports 1Samples, letter to T. C. Power, dated Minneapolis, Dec. 28, 1884, Power Papers, 162-8. 2 Marsh, letters to T. C. Power, dated Calgary, March 13, and Aug. 27, 1885, Power Papers, 129-4. At the bottom of the letter of Aug. 27 which reported payments of $35,000 and $15,000 coming from the CPR, Power noted: "This i s a good letter." 3power & Bro., letter to T. C. Power, dated Port Benton Sept. 6, 1886, Power Papers, 17-38. ^Power & Bro., letter to T. C. Power, dated Port Benton, July 18, 1883, Power Papers, 16-8. ^T. C. Power, letter to Power & Bro., dated Chicago, April 12, 1883, Power Papers, 148-1. 50 of the Minister of Agriculture show that the shipment of thousands of head of Montana c a t t l e took place i n the 1883-1886 p e r i o d . 1 In the 1880s sheep for Alberta as well as c a t t l e were purchased i n Montana. In 1885 the River Press reported one of these sales of sheep and added that "our market for sheep f o r the next f i v e years w i l l be the North-west." 2 Sales of sheep did continue into the 1890s. In 1890 a man beginning a sheep operation near Maple Creek went to Montana to buy his band.3 i n the 1890s Marsh and his nephew and helper, H. A. Greeley, steered other sheep ranchers to Power & Brother to purchase t h e i r stock.^ Not only were Power and the Conrads s e l l i n g c a t t l e and sheep to Alberta ranchers they also were buying c a t t l e from these ranchers to use i n f i l l i n g contracts i n the North-West. In 1884 I. G. Baker & Company bought a l l the North West Cattle Company's steers which were over two years old. Baker & Company In turn sold most of t h i s herd to Power & Brother. Presumably t h i s was part of the supply Power used to f i l l his CPR contract, and i t re-emphasizes the i n c l i n a t i o n of these two companies to work together for t h e i r mutual ad-vantage. In t h i s case Power agreed not "to buy or ship any ^ e e , for example, J . L. Poett, Veterinary Inspector, Annual Report of the Minister of Agriculture for 1885, 1886  Sessional Papers Vol. XIX Part 7 No. 10, p. 176 2 R i v e r Press, March 11, 1885, p. 1. ^Mrs. James McDougald, "Cypress H i l l s Reminiscences," Saskatchewan History 23' (Winter 1970), p. 29. ^H. A. Greeley, l e t t e r s to Power & Bro., dated Maple Creek, Sept. 3, 1891, Power Papers, 13Q-1. 51 more cattle into the North-West of Canada...and to take what cattle they require of I. G. Baker & Co."1 They, like the other big cattlemen in the North-West, realized that i t would be to their advantage to reduce imports from Montana in the mid-l880s and prevent the range from being overgrazed. In 1885 the two Port Benton firms agreed to buy steers from both Cochrane and McEachran. Baker & Company was to make a specific offer and Power & Brother was to offer a lower price. 2 With this scheme they were able to purchase five hundred head from the Walrond Ranche and three hundred head from the Cochrane Ranche.^ These cows were probably used to f i l l government contracts. The large influx of American cattle companies into southern Alberta did not begin until 1886. Granville Stuart said that the dry range in Montana led some Montana ranchers to take out Canadian leases and move north. This group i n -cluded Con Kohrs and the Powder River Company.The Powder River Company drove eight thousand head to Alberta in 1886.5 Baker & Company also moved two or three thousand head of i t s M^emo agreement Baker & Co. and Power & Bro., May 28, 1884, Power Papers, 274-13. p Memorandum of agreement between Baker & Co. and Power & Bro., dated Montreal, May 10, 1885, Power Papers, 274-22. W^. G. Conrad, letter to T, C. Power, dated Ottawa, June 4, 1885, Power Papers, 16-44. These transactions are recorded in the Walrond Cattle Record Book, 1885-1901, GAI, and in a letter from W. P. Cochrane to J. M. Browning, dated June 22, 1995, Cochrane Ranche Letterbook, GAI. ^Stuart, Forty Years oh the Frontier, pp. 231-233. 5"Town and Country," Lethbridge News, June 11, 1886, p. 3. 52 Montana herd to Canada t h i s year. 1 These companies were searching for new grazing land to avoid the overcrowding 2 on the Great Plains. Power and the Conrads both took out grazing leases i n the North-West i n the mid-l880s. Their doing so indicates that a f t e r the a r r i v a l of the CPR the Power and Baker companies were not merely holding on i n Canada. Instead they were a c t i v e l y pursuing new enterprises i n the area. The presence of the r a i l r o a d and i t s connection to eastern markets actually encouraged rather than discouraged American investment i n the Canadian North-West. The Dominion government Issued at least two leases to T. C. Power, but he was never able to stock these ranges.3 His c a t t l e loss l n 1887 on his Warm Springs Ranch near Lewistown, Montana, was the probable cause for his f a i l u r e to stock his Canadian leaseholdings. In 1886 he had con-tracted with A. P. Samples to place two thousand head of Texas steers on the Warm Springs range.** The following spring Power's foreman reported that not more than one 1,,Town and Country," Lethbridge News, July 3, 1886, p. 3. 2Ernest S. Osgood, The Day of the Cattleman (Chicago: University of Chicago Press, f i r s t published 1929), p. 105. ^See l e t t e r s from Dept. of the I n t e r i o r , dated Ottawa, May 28, July 27, August 5, Oct. 25, 1886, Power Papers, 17-19. Apparently Power did not actually stock these ranges. The l e t t e r of Oct. 25 reminded him that he was behind i n rent payments, and his name does not appear on the l i s t of lesees i n 1888. G. V. Ryley, Clerk of Timber, Mineral and Grazing Lands, Annual Report of the Dept. of the I n t e r i o r for 1888, 1889 Sessional Papers, Vol. XXII Part 12 No. 15, p. 26. ^TviCt7jPoweE«,^le.tter to Power & Bro., dated Chicago, A p r i l 24, 1886, Power Papers, 149-1. 53 hundred were l e f t a l i v e . 1 This type of setback, common throughout Montana in 1887, led to a reorganization and retrenchment in the ranching industry. Few ranchers were able to expand their investment.2 This explains, in part, why.the implementation of the ninety-day quarantine on American cattle by the Canadian government evoked no word of complaint in the River Press in 1887.3 The quarantine which effectively closed off the shipment of Montana cattle to the North-West served the interests of the large^Canadian ranchers by keeping out diseased stock and poor quality Texas steers.2* It prevented the degradation of their herds. In support of the quaran-tine these ranchers simply used the theme of American i n t r u -sion as a means of gaining p o l i t i c a l support for their stance. In an effort to magnify this imagined threat, the manager of the North West Cattle Company wrote to Ottawa in 1887 com-plaining that Americans were attempting to take control of H^". P. Brooks, letter to T. C. Power, dated Lewistown, May 7, 1887, Power Papers, 13A-10. ^Osgood discusses thoroughly this period of "Disaster and Transition," in his book, The Day of the Cattleman, pp. 216-258. 3The River Press reported matter of factly on Aug. 3, 1887, that "A new order has been issued in council prohibiting importation of meat cattle from the United States in Manitoba, Northwest Territory and British Columbia..." There was no editorial comment in 1887. 4 Edwin Allen, Officer in Charge of Cattle Quarantine for Fort Macleod, Annual Report of the Minister of Agricul-ture for 1887, 1888 Sessional Papers Vol. XXI Part 4 No. 4, p. 224. 54 ranching i n southern A l b e r t a . 1 In r e a l i t y t h i s was not an American-Canadian c o n f l i c t but a large rancher versus small rancher issue. The newspaper which was most outraged by the quarantine was the Fort Macleod Gazette. 2 The Gazette complained b i t t e r l y that the end of American imports would lead to stagnation of the southern Alberta economy.3 The large American companies such as the Benton & St. Louis Com-pany, which was owned by the Baker & Company partners and which did stock i t s Canadian lease before 1887» did not oppose the concept of protecting the herds. The Benton & St. Louis was i t s e l f i n the process of developing a thoroughbred herd by t h i s time.1* So although the quarantine was couched i n the rhetoric of a requirement to keep southern Alberta Canadian, the r e a l purpose of i t was to prevent competition and protect a l l of the large, established ranching operations, some of which were American. Neither the a r r i v a l of the CPR nor the i n s t i t u t i o n of the c a t t l e quarantine drove the Power and Baker companies out of southern Alberta and Saskatchewan. In fa c t , as has been 1 F . J . Stimson, l e t t e r to the Dept. of the In t e r i o r , dated Calgary, Sept. 1, 1887, Ranching Papers, GAI. p The editor of the newspaper, C. E. D. Wood, had had to fight i n court to protect his claim to a small ranche against a leaseholder who had t r i e d to evict him. Wood won, but t h i s helps explain his opposition to McEachran and the other large ranchers. J . D. Higinbotham, l e t t e r to Ed and Harry, dated Fort Macleod, March 23, 1885, J . D. Higinbotham Papers, GAI. 3"The Ranching System," Macleod Gazette, Aug. 16, 1888, p. 4. **"Local Notes," River Press, Sept. 21, 1887, P« 6. 55 shown i n t h i s discussion, both Montana companies benefited from these two changes. Their problem i n the late 1880s a f t e r the r a i l r o a d building and ranching booms had subsided was that competition increased but there was no accompanying large i n -flux of s e t t l e r s . There was l i t t l e expansion of the market. This circumstance caused the Power and Baker firms i n the late 1880s and early 1890s to gradually lose t h e i r dominant con-t r a c t i n g and r e t a i l p o s i t i o n i n southern Alberta. In the f i r s t few years a f t e r the a r r i v a l of the CPR they had been able to maintain t h e i r r e t a i l business p o s i t i o n . In 1882 Marsh was quite enthusiastic about the railway. He wrote to Power & Brother at Fort Benton asking them why they did not get "a railway boom;" business was simply excellent for him. 1 But Marsh became d i s i l l u s i o n e d within a few months. Both the CPR and the increase i n competition associated with i t ag-gravated him. The CPR l o s t one of Power & Brother's ship-ments i n 1883, and Marsh wrote that " i t w i l l now probably i n -volve a lawsuit...as they always get a l l they can and keep a l l they get." 2 This problem, though, was common for a l l shippers to southern Alberta. The more important change the railway brought for the Fort Benton companies was that i t s presence allowed eastern Canadian firms to deal d i r e c t l y with the southern Alberta market. 1Marsh, l e t t e r to Power & Bro., dated Fort Walsh, Feb. 8, 1882, Power Papers, 107-1. 2Marsh, l e t t e r to Power & Bro., dated Maple Creek, Nov. 9, 1883, Power Papers, 129-3. 56 The new Canadian merchants who moved into southern Alberta came with the expectation of a land boom to follow in the tracks of the railway. These merchants overstocked themselves. When the settlement rush did not materialize most of the new merchants were forced to s e l l out their merchandise at ruinous prices. Marsh said that before the CPR Power & Brother had been able to pass along high prices to the consumers but that such a practice was not possible after 1883. 1 Marsh summed up the situation succinctly when he said, "There i s a store in the country for every man."2 The circumstances were similiar in Calgary for I. G. Baker & Company in 1884. One of Baker's employees, Prank Crosby, reported that the only thing which was s t i l l l i v e l y was real estate investment, and this collapsed during the summer of 1884.3 The poor business period lasted for a year or two. It was followed by relative stability but low profit margins. In 1886 and 1888 Marsh reported that business in Calgary was f a i r l y good but that he had to s e l l at low prices because of ^Marsh, letter to T. C. Power, dated Maple Creek, June 8, 1883, Power Papers, 129-3. p Marsh, letter to Power & Bro., dated Maple Creek, Aug. 11, 1883, Power Papers, 129-3. 3prank Crosby, letter to John Crosby, dated Calgary, Jan. 6, 1884, Frank Crosby Papers, f i l e 22, GAI. Crosby himself invested in real estate but lost money and eventually moved to Oregon in 1884. Crosby, letter to John Crosby, dated East Portland, Oregon, Oct. 24, 1884, Crosby Papers, f i l e 22. 57 competition. 1 The trend i s reflected i n Marsh's statements of accounts. In l 8 8 l he reported a profit of $12,862.01; in 1882, $24,080.21; in 1887, $34,762.94; and in 1888, $36,548.03. 2 After the f i r s t railway boom period the days of large increases in the company's profits were over, but significantly, Power & Brother did show an increase every year. In the r e t a i l business they were able to at least hold their own in the face of increased competition.3 Baker & Company must also have been able to cope with the changes associated with the railway. They were s t i l l expanding their activities as late as 1887. In this year they bought out a butcher in Lethbridge and set up their own meat store.1* This was in addition to their r e t a i l operation at Lethbridge, Port Macleod, and Calgary. •^Marsh, letters to T. C. Power and Power & Bro., dated Calgary, Jan. 26, Dec. 25, 1886, and Feb. 27, 1888, Power Papers, 129-6 and 7. 2Marsh, letter to Power & Bro., dated Fort Walsh, Nov. 2, 1881, Power Papers, 106-9; letter to Power & Bro., dated Fort Walsh, July 12, 1882, Power Papers, 107-2; and . letter to Power & Bro., dated Calgary, Aug. 15, 1888, Power Papers, 19-l4>: The following year the balance increased by about $3000; see balance sheets Calgary and Maple Creek, Aug. 1, 1889, Power Papers, 62-15. ^The Fort Benton operation of Power & Brother also reported dull trade in the mid-l880s. A. C. Johnson said they were able to hold their "share of the trade," but profits were not high. Johnson offered to accept a cut in salary to help the accounts. Johnson, letter to T. C. Power, dated Fort Benton, Jan. 31, Power Papers, 148-4. ^"Town and Country," Lethbridge News, April 13, 1887, p. 3. Baker & Company's Lethbridge business is another ex-ample of their being in the vanguard of developments. The f i r s t four lots sold after the town was laid out in 1885 were purchased by Baker & Company. J. D. Higinbotham, When the  West Was Young: Historical Reminiscences of the Early  Canadian West (Toronto: Ryerson Press, 1933), p. 109. 58 After 1883 Baker and Power found increased competition in the contracting business as well as in the r e t a i l trade. In 1886 the Lethbridge News announced "keen competition" for supplying beef to the Indian Department; six firms submitted bids. 1 The following year there were forty tenders for gen-eral Indian supplies. 2 The trend in contracting throughout the 1880s was for Baker & Company or the Hudson's Bay Company to dominate in receiving contracts; while, at the same time, the number of Canadian companies supplying goods increased. The railway and efforts by the Dominion government made pos-sible this increase in the number of Canadian contractors. In 1885 the government instituted a policy of accepting bids for only a portion of the total supplies in a contract. This was designed to allow the small firms and the local producers In the North-West to tender successfully.3 Although this policy did not drive the Port Benton companies from the f i e l d , i t did serve to lower the contract prices. In 1886 five companies including Baker & Company divided the contract to supply oats to the Mounted Police. The price was less than two cents per pound, the lowest price ever paid.*1 As with 1"Parliamentary Notes," Lethbridge News, April 22, 1886, p. 2; and May 7, 1886, p. 6. The Indian Department divided the contract for southern Alberta between Baker & Company and a Canadian company. 2"Notes from the Capital," Lethbridge News, May 11, 1887, P. 5, 3Edgar Dewdney, Annual Report of the Department of Indian Affairs for 1885, 1886 Sessional Papers Vol. XIX Part 4 No. 4, p. 142. The accounts listed on the following pages clearly show this trend. '^H'To.wn and Country," Lethbridge News, Sept. 29, 1886, P. 3. 59 Treaty Supplies for 1887 Note how the Treaty Seven contract has been divided among several Canadian companies and I. G. Baker & Company. This can be compared with the s i t u a t i o n presented i n the Treaty Seven report of 1881 on page 43 which shows Baker & Company dominating, with only a few Canadian firms getting a small part of the contract. . G. SsV:»r k O o . . . G. Ea^er 4 Oo.. The PcrUjie Hilling Co i. Y. Gi'monr : . C- ?o-cr k Sro T. G. Pettirjcell G. B^er & Co ' n d ^ a baj Oo f i l l , Ro== t Co [. A. VRCCSOI = . W. Trott ' 'o-a l Bros S'. T. Williams. I. H. Garland rins'.Eg £ HosVms Coiani'a'lnn Btore Oo.... Treaty A'o. 7. JDlcckfoot Rttcrve—North lllach/ooi Reierve. For 325,311 lb:, beef Lz=s—355 hides Bold to Contractor, at $2 each.. Sdulh Blathjool Reserve. For 4~2Jr03 lbs. beef Lzsi—*4B3 bides sold to Contractor, at ?2 cucb . . . . Blacrjoot Reierve Qcn-rjlly. 'o- 2,2t-7 EUC'KJ flonr Tt a supplied under contract. Telscco .Vt z :c;nes.'. G. ~.«V«r i Oo. Wild rice - -12 -rrindo'H' sasbes . . . . Medicine! -T. a 1 co~ for beef -E's-^ets, e'ofTe, sad olber supplies _ Prints, shirts, he, as presents from the Supt.-General., do do do Sarcee Rcltrct. F o r c;,s:a lbi. \ ~ r i . 5T>il 40 33,ft02 78 730 00 47,7E2 90 966 00 5,-IG'J IS f-6 •>Vi 74 2i" *•') I :.0 2'V 15 -18 il) 11 60 I 32 81 67 85 60 00 607 12 131 74 194 80 ! 33,232 78 45,816 BO 7,6(9 62 'soz A Scott. iA I? E V.-MHMo & Bro. He--;--r;on, M.D. ... . G. Pe-.tinrell . C. Pr.-er ft Bro :ijo= Bay Oo »\ . Tro'-t 1. Gilraour - ... ticDoucall Field M. G&rleod --::orj Sa-y Oo L r « ; — 73 h i d e s , nl r f t cb . 5:.-".7 lb?. b<-pf 51,7-'0 23 L » = s - 5 3 hidos. at $1 mcb 116 00 D. iTcDo-friill — . L M S O S A Scott .' 7he Portage Milling Oo Sec*--03 3aj Co _ A. Henderson, M.D ".zi-on 3aj Co 1. 0 . 5=.Ker k Oo J. M. Garland -D. McLeod . . . . €:? rhC'SS " ) = r Ys:c int points Me-~;icinrs -Tobacco applied under contract .'. rimur.-tion and supplies .Vs jiciaes Teapuppiied under contract Me;i"ine= supplied do Contract supplies Tara and Deedles S'.cney Reserve. -c-r 2 5 i ! - 3 lb?, beef $3,370 39 Li=s—37 bides, at $1 each 74 00 72,520 lbs. beef -. $9,533 37 LE S S — 7 9 bides, at $2 eacb 158 00 I. G. Bai-;er k Co The Walrond Rsncbe Co t. G. EsVer & Co. . ., i' 0. a. McililUn 4 Bro ... ' i l . G. Kaiser ft Oo-i'. J =SCKE Hour 10,000 lbs. bscon.. Vaccine points Ammunition and supplies do E'cffe, b'anbet?, f.erge, kc 12 beifers, regards lor loyaltj Pirgan Reserve. For 232,373 lbs. beef 525,572 £8 LE S S - 1 6 1 bides, at $2 each .322 00 211,512 lb3. beef : $17,626 00 Liss—272 bides, at J 2 each 644 00 '•i A.. H Bene/ & Oo . 40 parV..= f.our. _ 9 3 7 . <3o — Gbnrc and tnilk j aos and olber supplies _ 12 bellj bands Carried forward.,y.,.., . . . 7,749 40 4,6*4 23 1,420 50 27 12 101 16 81 51 262 35 1 12 50 9 81 3 60 7 60 212 60 13 52 3,295 29 6,375 37 735 CO 1,190 00 27 12 141 50 160 00 236 67 4T6 00 25,250 88 17,032 00 162 00 2,716 6? 68 48 1 1 00 14,505 6! ; 12,518 05 n<|8,52 9t 61 TO WHOM P A I D . Tbe WftlrGDd P-ancbe Oo Slomt Bros I. G. Biker A Oo.. The Cochrane Ranche Oo Tee Walrond Ranche Oo '.. G. Baker k Co D. H. McMillan. <fc Bro.. T. C. Pi.vre.r <fc Bro W. J. PeUinizell [. G. Baker ft: Oo _ , J. M. Garland Sundry person! . SERVIOE. Brought forward ExriKDiTcas— Cor.clitdsd. Picoan Reiertt—Concluded. Beef for North Aie and fdlowera . Supplies for Red Grow do Blood Rc&crvt, For 452,812 lbs. beef- :.. $52,072 21 LESS—395 hid^s, at $2 each 'iSO 03 253,491 lbs. beef- .." $20,9?4 93 LE3S-218 hides, at $2 each 432 00 317,812 lbs. beef 517,403 63 LKSB—232 bides, at $2 bach -184 00 300 F.acks fionr -2,393 do t Tea and tobacco Medicines, Blood and Piegau Reserves., Tea and tobacco El&nkete, Berge and other supplies Freighting LtiE—Valoe of provisions Iffoed at Bleckfoot Crossing $ cti. l.»8 76 2S6 81 61,232 21 20,652 93 16.941 68 1,215 no 7,043 12 329 17 262 06 116 20 638 47 $ cts. 114,852 98 45.735 24 93,379 74 180 97 269,148 91 12 91 62 the r e t a i l trade government contracting p r o f i t s must have f a l l e n for the Port Benton companies a f t e r 1883. They did receive a large portion of the Indian supply contracts under Treaty Seven through 1889, and Baker & Company received part of the 1891 contract. 1 Yet the volume of goods i n these contracts did not compare to that which they had obtained i n previous years. Despite the lower p o r f i t s , Power & Brother and Baker & Company remained i n business i n Canada throughout the 1880s. They simply s h i f t e d t h e i r supply route to the CPR, and they used t h e i r wagons and teams to d e l i v e r goods from the railway to the p a r t i c u l a r post or agency where they were required. Both Fort Benton companies began using the CPR as t h e i r supply l i n e to the North-West as early as i n 1883. In f a c t , by the summer of 1883 Baker & Company had established a deal with Tees, Costigan, and Wilson of Montreal to ship t h e i r goods by steamer across the Great Lakes to Prince Arthur's Landing and then v i a CPR to the North-West. 2 Using the CPR meant that customs duties and bonding, i f any, had to be arranged at Winnipeg rather than at Maple Creek or Fort Macleod where the 1 I n 1889 Baker & Company received $127,138.30 i n Indian supply contracts. Annual Report of the Dept. of Indian A f f a i r s f o r 1889., 1890 Sessional Papers Vol. XXIII Part 10 No. 12, pp. 48-95- Under Treaty Seven i n 1889 Baker received $70,970.79, i n 1891 they received $570.57. The difference i s explained by Baker's~not being .awarded any beef contracts i n 1891. Annual Report of the Department of Indian A f f a i r s for 1893., 1892 Sessional Papers Vol. XXV Part 10 No. 14, pp. 62-67. 2Marsh, l e t t e r to T. C. Power, dated Maple Creek, June 8, 1883, Power Papers, 129-3. 63 Power and Baker companies were known by the authorities. This meant increased formality and delays which led Marsh to the conclusion that as far as possible a l l goods for the North-West should be purchased in Canada. Customs delays overshadowed any price differences. 1 This illustrates the kind of effect the CPR had. It did not lead to any major shifts in economic t i e ; Power & Brother had been dealing with Canadian firms since 1876. Yet the railway did strengthen the bond between the North-West and eastern Canada. This was a change of degree rather than of kind. The Port Benton companies' ultimate withdrawal from Canadian government contracting in the early 1890s is not explained by the changes brought by the CPR. Several factors contributed to their decision. Certainly the lower profits on contracts and In the r e t a i l business must have influenced their thinking, but an additional factor for I. G. Baker & Company may have been Baker's retirement in early I892. 2 Also, an attempt by Power and the Conrads to build a railway from Port Benton and Helena to Alberta f e l l through in 1889.^ Their chance to reassert themselves in southern Alberta on a 1Marsh, letter to T. C. Power, dated Maple Creek, Oct. 8, 1883, Power Papers, 129-3. Prom March 1883 to March 1884 Power & Brother shipped a total of 592,615 pounds of freight via the CPR. 361,345 pounds came from Winnipeg; the remainder came from Montreal or Chicago. Marsh, letter to T. C. Power, dated Maple Creek, March 27, 1884, Power Papers, 129-3. 2"Of Local Interest," Lethbridge News, Feb. 17, 1892, p. 3. 3This project Is discus'sed more thoroughly in the following chapter of this thesis. 64 new basis was l o s t when t h i s railway project f a i l e d . The com-bination of these factors led Baker & Company to s e l l i t s re-t a i l operation to the Hudson's Bay Company i n I891. 1 S i g n i f i -cantly, Baker & Company closed i t s Port Benton store i n 1891 as w e l l . 2 Even t h i s was not a complete withdrawal from Canada as far as the Conrads were concerned. The Conrads carried on t h e i r ranching, banking, and butchering business i n Alberta a f t e r 1892.3 Power & Brother sold t h e i r Calgary store to Marsh i n 1893. Their motive was c l e a r l y the low margins of return.^ Power had noted on Marsh's 1888 balance sheet that i t was "not a big showing for the money invested." As early as 1885 Power had expressed the Idea that he was not p a r t i c u l a r l y interested i n the merchandise business i n the North-West. He wanted to pursue contracting and beef deals.5 Power made several attempts to s e l l out to Marsh or Baker & Company af t e r 1886, but Marsh was not w i l l i n g to accept the terms u n t i l 1893• The a r r i v a l of the CPR was not the cause of these companies s e l l i n g out t h e i r Canadian r e t a i l holdings. The 1 , ! I . G. Baker & Co.," Lethbridge News, Jan. 27, 1891, p. 3. 2Charles E. M i l l e r , l e t t e r to T. C. Power, dated Port Benton, A p r i l 24, 1891, Power Papers, 150-1. 3"Baker & Co.," Lethbridge News, Jan. 27, 1891, P-3-^Marsh made the actual purchase of the Calgary store i n Jan. 1894; he had sold the Maple Creek post to a Canadian firm i n 1892. Marsh, l e t t e r to Power & Brother, dated Maple Creek, Dec. 20, 1892, Power Papers, 150-4. 5 T. C. Power, l e t t e r to Marsh, dated Helena, Nov. 23, 1885, Power Papers, 129-4. I. G. Baker Store, Lethbridge, Alberta Photograph courtesy of the Glenbow-Alberta Institute I. G. Baker Store, Port Macleod, Alberta, 1 8 7 9 Photograph courtesy of the Glenbow-Alberta Institute 66 key f a c t o r s were the l a c k o f s e t t l e m e n t , the l o n g p e r i o d o f economic stagnation,- and an animosity between James J . H i l l and the F o r t Benton merchants. 1 The s p a r s i t y o f settlement was compounded by the oversupply o f merchandise i n the a r e a , which drove many n e w l y - e s t a b l i s h e d Canadian f i r m s out o f business as w e l l as reduced p r o f i t s f o r Power and Baker. During t h i s same p e r i o d the I n d i a n trade was on the d e c l i n e w i t h the demise o f the b u f f a l o herds. The F o r t Benton com-panies proved themselves w i l l i n g and able to adapt to the CPR as t h e i r supply l i n e f o r Canada, but they were unable to expand business i n an overdeveloped market. The Canadian P a c i f i c Railway d i d not c r e a t e the s o c i a l , p o l i t i c a l , and economic conne c t i o n between the southwestern p r a i r i e s and e a s t e r n Canada. I t d i d tend to strengthen t i e s a l r e a d y i n p l a c e , but i t d i d not b r i n g about major r e o r i e n t a -t i o n . H i s t o r i a n s may have overestimated i t s impact because they have misunderstood the nature o f the American i n f l u e n c e i n southern A l b e r t a . American i n f l u e n c e b e f o r e 1883 was not as great as has o f t e n been assumed. Nor was the American i n t e r e s t which d i d e x i s t severed by a l i n e of t r a c k a c r o s s Canada. ^•A f u l l e x p l a n a t i o n of t h i s c o n f l i c t and i t s e f f e c t on the Power and Baker companies i s presented i n the f o l l o w i n g chapter. CHAPTER III STRUGGLE AND DEFEAT Between 1883 and 1888 the presence of the CPR actually served to strengthen the regional unity between northern Montana and southern Alberta and Saskatchewan. The determin-ing factor i n the withdrawal from Canada of the Power and Baker companies may well have been t h e i r f a i l u r e to thwart James J. H i l l i n his attempt to economically dominate northern Montana. H i l l extended his St. Paul, Minneapolis, and Manitoba Railroad into northern Montana i n 1888. 1 This l i n e connected Montana with St. Paul, Minnesota, and In that way posed a dire c t threat to Fort Benton and i t s merchants. H i l l ' s r a i l -way was a competitor for Power's upper Missouri River steam-boat l i n e to Fort Benton. This placed the two men at logger-heads . In t h i s regard one notes that both the Fort Benton , newspaper and T. C. Power had a completely d i f f e r e n t attitude toward the CPR than they did toward the Manitoba l i n e . Northern Montanans welcomed the a r r i v a l of the CPR i n 1883. They did not conceive of t h i s railway as severing t h e i r t i e s with Canada, and i n some ways i t helped to est a b l i s h new •'•This was the o r i g i n a l name of H i l l ' s l i n e . He changed the name to the Great Northern Railway a f t e r he had b u i l t i t through to the P a c i f i c Coast i n 1893-6 7 68 and stronger economic r e l a t i o n s . Within a year of the con-struction of the CPR, northern Montana ranchers began using i t to ship c a t t l e to the Chicago market. The service must have been s a t i s f a c t o r y , because the volume of these shipments doubled i n 1885. 1 In that year over three thousand head of Montana c a t t l e were shipped east from Maple Creek i n p Assiniboia. The River Press promoted the use of the CPR; this newspaper referred to i t as providing a welcome element of competition i n c a t t l e shipping.3 Montana c a t t l e and sheep were shipped v i a the CPR i n 1886 too; but a combination of the hard winter that year, the ninety-day c a t t l e quarantine, and Jim H i l l ' s r a i l r o a d made i t impractical to use the CPR for ca t t l e shipping a f t e r 1887.1* However, the Fort Benton merchants also used the CPR as a supply l i n e for northern Montana. It provided a comple-ment to Power's steamboat l i n e which was operable only i n the summer when the water i n the Missouri was high. As soon as the CPR contract had been signed i n l 8 8 l , Marsh suggested that Power use the r a i l r o a d to ship goods i n bond to Montana from the eastern United States. Marsh wrote that t h i s would enable him to "turn the tables by having you urging us for your iRi v e r Press, Aug. 19, 1885, P- 2. W. McEachran, Annual Report of the Minister of Agriculture for 1885, 1886 Sessional Papers Vol. XIX Part 7 No. 10, p. 174 He added that another herd of 875 was waiting tS Be. shipped, but that they had not g6ne Out by the date of th i s report. 3River Press, June 25, 1884, p. 4. 4 The Lethbridge News reported that herds of both sheep and c a t t l e were shipped east on the CPR i n the f a l l of 1886. Lethbridge News, Sept. 1, and Sept. 23, 1886, p. 3. } 69 goods.""'' Power did rely on the CPR during the drought summer of 1886 when the Missouri was too low for safe steamboat travel. In this year he used the CPR to ship the corn he needed to f i l l his supply contract at Port Assiniboine, Montana.2 Marsh also proposed that Power purchase oats and flour in Canada to f i l l the U. S. military and Indian supply con-tracts. He quoted to Power the prices in Canada and freight rates to Maple Creek on these commodities. Power was en-thusiastic about Marsh's suggestion, and he noted on Marsh's letter that "you w i l l see that Maple Creek can supply Assiniboine."3 It is unclear how extensively Power followed through on this. Nevertheless, the proposal i t s e l f indicates that the CPR could have served to Increase trade between Montana and the Canadian prairies. This was certainly T. C. Power's view when he wrote to William Van Horne, the CPR construction superintendent, in 1886. Power told Van Home that a r a i l connection between Fort Benton and the CPR would be a lucrative enterprise. Power declared his willingness to construct the line from Fort Benton to the international boundary i f the CPR would meet him there. Power added that this would be a means of defeating., l-Marsh, letter to Power & Bro., dated Fort Walsh, Nov. 10, 1881, Power Papers, 106-9. 2T. C. Power, letter to John H. Charles, dated Dec. 13, 1886, Power Papers, 149-2. By spring 1887 they had sent three tons from Maple Creek to Fort Assiniboine and more was en route. H. A.. Greeley, letter to Power & Bro., dated Maple Creek, March 7, 1887, Power Papers, 129-7. 3Marsh, letter to T. C. Power, dated Maple Creek, Feb. 21, 1884, Power Papers, 129-3-70 1 T. C. Power & Brother's Store, Maple Creek, Saskatchewan, l880's Photograph courtesy of the Glenbow-Alberta Institute H i l l ' s proposal to control the northern Montana freight. 1 Unknown to Power the CPR owners, including Van Home, had financial investments in H i l l ' s St. Paul, Minneapolis, and Manitoba line. Van Home, therefore, had no inclination to defeat H i l l ; and he rejected Power's suggestion. 2 Two years after Power's exchange with Van Home, H i l l had pushed his Manitoba line across northern Montana. The f i r s t routing for this line took i t southwest from the Milk River past Fort Benton to Great Falls. At Great Falls this line met the Montana Central Railroad which H i l l had build be-tween Helena and Great Fa l l s . The track passed along the bluffs above Fort Benton, and only a temporary line was built down to the town i t s e l f which lies along the river about two hundred feet below the bluffs. Although the Fort Benton com-munity was at f i r s t glad to see these tracks in their city, they quickly became disillusioned. Just as the CPR had led to increased r e t a i l competition for Power and Baker in Canada, so too, the Manitoba led to increased home competition for these Fort Benton merchants.3 Also, as had occurred in Canada, increased settlement did not accompany the rise i n r e t a i l competition; and there was a period of economic stag-nation. More importantly, though, the Fort Benton merchants lost direct control over their supply route. H i l l managed to 1T. C. Power, letter to W. C. Van Home, dated Helena, July 6, 1886, Power Papers, 17-19. 2Canadian Pacific Railway Co., letter to T. C. Power, dated July 15, 1886, Power Papers, 17-19. 3power & Bro., letter to T. C. Power, dated Fort Benton, Feb. 16, 1888, Power Papers, 20-13. 72 drive Power out of the steamboat business. H i l l forced the rai l r o a d s which passed through towns on the Missouri River to refuse special freight rates to Power's Benton "P" steam-boat l i n e . 1 The special rates for volume shipping by Power had made the steamboating a p r o f i t a b l e enterprise. In re-sponse to H i l l ' s actions, Power requested the Manitoba l i n e to quote him a freight rate. He received no r e p l y . 2 Apparent-l y , H i l l intended to eliminate steamboat transportation. He succeeded. For a l l intents and purposes there was no steamboating to Fort Benton a f t e r 1890. Once H i l l had closed out his steamboat opposition, his company announced that a l l shippers would pay f u l l rates.3 As Power and W. G. Conrad saw t h i s , the "Manitoba people [were] working f o r themselves, against a l l the country they run through." They were just p l a i n "cold-blooded." 1* Power i r o n -i c a l l y c a l l e d H i l l ' s company "the worst fighters i n America; against competition."5 To free themselves from the grasp of IT. C. Power, l e t t e r to Power & Bro., dated Chicago, May 4, 1888, Power Papers, 149-3- In the spring of 1888 Power did manage to get a temporary freight rate with the Northern P a c i f i c . Both the Milwaukee and the North Western railroads refused rates and c i t e d a possible f i g h t with H i l l as the reason. 2T. C. Power, l e t t e r to J . W. Power, dated Helena, August 14, 1887, Power Papers, 149-3-3p. P. Shelby, General T r a f f i c Manager, Great Northern Railroad, l e t t e r to Power & Bro., dated St. Paul, Jan. 10, 1891, Power Papers, 112-3. **T. C. Power l e t t e r to S. T. Hauser, dated Helena, Jan. 14, 1888, S. T. Hauser Papers, Montana H i s t o r i c a l Society. Power, l e t t e r to A. C. Johnson, dated Helena, May 17, 1889, Power Papers, 149-5- Power had "forgotten" his attempts to lock out competitors i n the 1870s. 73 t h i s oppressor, Power, W. G. Conrad, and their. Helena fri e n d and banker, S. T. Hauser, turned to Alexander T. Gait. Gait had developed the coal mines near Lethbridge, Alberta. The project these men envisioned involved building a railway from Lethbridge to Helena with a branch l i n e to Fort Benton. Power and Conrad must have assumed that t h i s would allow them to make greater use of the CPR as a means of competing with H i l l . Gait had intimated as early as 1885 that he was i n t e r -ested i n building a branch l i n e to Montana. T. C. Power had reacted favorably to t h i s . Even then he was worried that H i l l planned to by-pass Fort Benton i n favor of Great F a l l s . 1 Power suggested that Gait keep his plans quiet but go ahead 2 to b u i l d the r a i l r o a d . Should Power and Gait have been able to circumvent H i l l i n 1885, they s t i l l faced two major ob s t a c l e s — t h e Indians i n Montana and the CPR. The land north of Fort Benton belonged by treaty to the Indians and the government could cancel any r a i l r o a d building projects. The CPR held a monopoly clause which e n t i t l e d the company to cancel any railway projects b u i l t to the south of i t s main east-west l i n e . In 1886 the CPR did, i n f a c t , cancel t h i s f i r s t attempt by Power, Conrad, and Gait to b u i l d from Lethbridge to Montana.3 •^ T. C. Power, l e t t e r to Power & Bro., dated Helena, June 22, 1886, Power Papers, 149-1. 2T. C. Power, l e t t e r to A. T. Gait, dated Helena, Nov. 23, 1885, Power Papers, 148-6. ^"Parliamentary Notes," Lethbridge News, March, 1886, p. 2; and "The Gait Road," i b i d . , A p r i l 30, 1886, p. 1. 74 Two years later, though, two of the obstacles to their railway project were removed. The Dominion government had bowed to western pressure and had purchased the monopoly clause from the CPR.1 In the same year the U. S. Congress reduced the size of the northern Montana Indian reservation. This opened most of the area to settlers and railroads. With two potential blocks removed, Power, Conrad, Hauser, and Gait came to a tentative agreement in the f a l l of 1888 to build a line to Port Benton from Lethbridge.2 The formal agreement was drawn up on February 8, 1889, in St. Paul, Minnesota. These men agreed to form a Fort Benton Construction Company to build the railway. One third of the stock was divided among the Montana partners while the remainder went to Gait and his associates. Conrad and Power also agreed that when the r a i l line was completed they would buy from the Gait mine ten thousand tons of coal per year for Fort Benton. In addition, they agreed, to purchase three hundred thousand tons over a three year period for Helena.3 Both the Canadian and American parties to this agree-ment saw i t as advantageous. The Lethbridge News asserted that the r a i l connection with northern Montana would lead to increased coal production. They also thought that Montana ^This news was welcomed by frontier newspapers in both countries. River Press, March 23, 1887, p. 2; and "The New Railway Scheme," Macleod Gazette, April 4, 1888, p. 4. 2W. G. Conrad, letter to C. E. Conrad, dated New.York, Nov. 20, 1888, Power Papers, 20-13-3Memorandum Agreements (2) made at St. Paul, Minn;, Feb. 8, 1889, and letters (3) to the President, Alberta Rail-way and Coal Co., dated Feb. 8, 1889, Power Papers, 21-1. 75 ranchers and dairymen would make greater use of Alberta's grassland. 1 The River Press was particularly interested in the Gait coal. 2 During the hard winter of 1886-1887 Port Benton had experienced a coal shortage. 3 For this reason a railway connection to the Gait coal mines was especially appealing. The Fort Benton merchants saw the railway between Montana and Alberta as a means of revitalizing Fort Benton, which could have become a r a i l center. Goods could have been shipped in from both Alberta and the Pacific Coast and sold to other points in Montana.1* Power and Conrad may have been aware of a potential market for coal at the Butte, Montana, copper smelters which were burning expensive coal shipped from Wyoming.^ Had this railroad been built in"the manner Power and Conrad had envisioned, an even tighter economic bond may have been created between Montana and southern Alberta; but the plan was foiled by H i l l . The scheme collapsed when Gait discovered he could not obtain f u l l financial support in England for the project. ^'Lethbridge," Lethbridge News, Feb. 5, 1886, p. 1; and "Proposed Railways," ibi d . , Nov. 17, 1886, p. 2. 2"Lethbridge Coal," River Press, May 11, 1887, p. 1. 3Rlyer Press, Feb. 9, 1887, p. 2. ^T. C. Power, letter to L. McCallum, M. P., dated Chicago, May 28, 1886, Power Papers, 19-7. 5A. A. den Otter, "Gait," p. 196. The Alberta Railway connecting Great Falls to Lethbridge cut the price of coal by two thirds in Montana, p. 208. This lasted until duties forced the price to be uncompetitive in the mid 1890s. See den Otter, "Railways and Alberta's Coal Problem, 1880-1960," in Western Canada: Past and Present, edited by Anthony Rasporich (Calgary: University of Calgary and McClelland and Stewart West, 1975). 76 Faced with t h i s setback, Gait, presumably unknown to his partners, met with H i l l i n August 1889. He found H i l l very interested i n the idea of a l i n e from Montana to A l b e r t a . 1 A day or two a f t e r t h i s i n i t i a l meeting between Gait and H i l l , H i l l appears to have offered Gait money and long-term coal purchasing guarantees i f Gait ran the l i n e between Lethbridge and Great F a l l s . Since Gait held the c o n t r o l l i n g interest i n the company, he must have f e l t that i t was his decision to make. H i l l probably convinced Gait that i t was economically advantageous to b u i l d to Great F a l l s . Gait did accept H i l l ' s o f f e r , and he wrote to Hauser saying that his money was no longer needed. Gait i n v i t e d the Montana partners to remain 3 4 involved;- 3 but they wanted the l i n e to go to Fort Benton. Since Gait could not accept these terms and H i l l ' s terms, he chose the more a t t r a c t i v e route and wrote Hauser to close up the Montana part of the company. The railway was b u i l t on H i l l ' s terms i n the summer of 1890. H i l l purchased d a i l y two hundred tons of coal from Alberta to run "his trains on ! A . T. Gait, l e t t e r to Hauser, dated Winnipeg, Aug.. 1 7, 1889, Hauser Papers, 19-7. 2 G a l t , l e t t e r to Hauser, dated Winnipeg, Aug. 9, 1889, Hauser Papers, 19-7• 3lbid. ^Galt wrote T. F. Oakes, President of the Northern P a c i f i c , that Hauser's group was "unwilling to j o i n me i n building to Great F a l l s . " A. T. Gait, l e t t e r to T. F. Oakes, dated Montreal, Aug. 29, 1889, Hauser Papers, 19-7-^Galt, l e t t e r to Hauser, dated New York, Sept. 24, 1889, Hauser Papers, 19-7. 77 h i s newly o r g a n i z e d Great Northern system. 1 H i l l ' s Great Northern Railway was completed i n 1893• I t Included the o l d Manitoba t r a c k to the M i l k River, then i t -cut s t r a i g h t west. T h i s completely cut o f f F o r t Benton. I n t e r e s t i n g l y , the new l i n e made a neat connection a t Shelby, Montana, w i t h the r a i l r o a d G a i t had helped to b u i l d . The Great F a l l s - S h e l b y s e c t i o n o f t h i s r a i l r o a d probably turned out to be the only p r o f i t a b l e s e c t i o n o f the l i n e . The Alberta-Montana r a i l w a y d i d not, i n the end, r e c e i v e the a n t i c i p a t e d use. I t s takeover i n 1912 by the CPR and the GNR2 s i g n i f i e s the f i n a l d e f e a t o f the Conrads and Power to main t a i n t h e i r economic p o s i t i o n i n no r t h e r n Montana and southern A l b e r t a . Jim H i l l thwarted Power and the Conrads i n t h i s e n t e r -p r i s e . His defeat o f the attempt o f these Montana b u s i n e s s -men to c o n t r o l a r a i l c o nnection between t h e i r Canadian trade and t h e i r n o r t h e r n Montana trade f o r c e d them to look elsewhere f o r p r o f i t a b l e investments. Power wrote h i s b r o t h e r i n 1890 t h a t the new r a i l w a y would cut t h e i r t r a de d r a s t i -c a l l y . ^  T. C. Power and the Conrads were f o r c e d to c l o s e out l-den O t t e r , " G a i t , " p. 207. 2 W i l l i a m J . Wilgus, The Railway I n t e r r e l a t i o n s of the  United S t a t e s and Canada (New Haven: Yale P r e s s , 1937), pp. 130-131. Although from a d i f f e r e n t p e r i o d Wilgus' s t a t i s t i c s do p r o v i d e an i d e a o f the amount of f r e i g h t t r a n s p o r t e d n o r t h and south a l o n g t h i s l i n e . Between 1929 and 1934 shipments to the U. S. ranged from 5000 tons to 9500 tons. Shipments to Canada ranged from 200,000 tons to 52,000 tons d u r i n g these y e a r s . See Wilgus, p. 137. 3T. C. Power, l e t t e r to J . W. Power, dated Washington, June 28, 1890, Power Papers, 149 -7-78 their northern Montana and southern Alberta and Saskatchewan businesses by. the drop in revenue which followed H i l l ' s victory. Maybe H i l l ' s actions rather than the CPR and the Canadian t a r i f f s explain the economic separation of Montana from southern Alberta and Saskatchewan in the 1890s. CONCLUSION The attitudes and a c t i v i t i e s of I. G. Baker & Company and T. C. Power & Brother do help to explain the r e l a t i o n -ship between northern Montana and the southwestern Canadian p r a i r i e s . People on both sides of the forty ninth p a r a l l e l desired peace and security. The presence of these f r o n t i e r companies with investments i n both countries contributed to the establishment of order i n the region. Certainly once the Mounted Police arrived, Power, Baker, and the Conrads re-spected Canadian sovereignty. After 1874 the North-West was not an American hinterland. True, the Power and Baker companies made substantial p r o f i t s through Canadian govern-ment contracting. Yet the process of t h e i r f i l l i n g these contracts helped to forge a trading bond between eastern Canada and her North-West. In a broader sense, the study I have presented here suggests a few generalizations about the o v e r a l l relationship between the United States and Canada. Americans, i n general, accept and respect Canadian nationhood. Power, Baker, and the Conrads d e f i n i t e l y did. Canadian historians have too long used American imperialism as an explanation for the course of Canadian hist o r y . This has tended to d i s t o r t t h e i r assessment of the impact of various aspects of Macdonald's National Policy. 79 80 Too many have asserted that the CPR severed American influence i n the southern Alberta and Saskatchewan region. Too many have accepted the view that before 1883 the wealth of the southwestern Canadian p r a i r i e s was drained to the south by the Baker and Power companies. They have overlooked the e s t a b l i s h -ment of a Canadian east-west r e t a i l trade pattern beginning i n 1875. American influence i n the Canadian North-West p r i o r to 1883 was not as great as some have asserted, and American i n -vestment i n the region was not eliminated by the CPR. One must look elsewhere for an explanation of Power's and Baker's withdrawal from Canada. The impact of H i l l ' s Great Northern Railway and the economic stagnation i n both the North-West and northern Montana i n the late 1880s and early 1890s are better explanations for the action of these Montana business-men. No aspect of Macdonald's three-pronged National Policy of the transcontinental railway, the increased t a r i f f , and the rapid settlement of the West led the Baker and Power firms to withdraw from Canada. Far from removing them, the presence of the CPR opened new investment opportunities to them. Macdonald's ul t r a - p r o t e c t i v e t a r i f f merely i n t e n s i f i e d the process whereby these Montana firms acted as middlemen for the Canadian east-west trade. Ironically, the f a i l u r e of the t h i r d aspect of the National P o l i c y — t h e fact that no s e t t l e -ment wave followed the CPR—appears to be a major factor In Power's decision to close out his Canadian r e t a i l operation. 81 I think Macdonald probably knew of the trade pattern present in 1879, but denouncing American business investment and American annexationist designs was a convenient tool for him. This type of denunciation has remained a theme in Canadian p o l i t i c a l and business ci r c l e s . Maybe the time i s ripe for a thorough examination of i t s validity as an ex-planation for the development of Canada as a nation. SELECTED BIBLIOGRAPHY Primary Materials Public Records A Chronicle of the Canadian West: Northwest Mounted Police Report for 1875^ Introduction by S. W. Horrall. Calgary: Historical Society of Alberta, 1975. Commissioners of the Royal North-West Mounted Police. Opening Up the West. 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