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UBC Theses and Dissertations

The Grand Trunk Pacific Railway and British Columbia Lower, Joseph Arthur 1939

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4" 7  The Grand Trunk P a c i f i c and B r i t i s h  Railway  Columbia  by  Joseph A r t h u r Lower  A t h e s i s submitted i n p a r t i a L a f u l f i l m e n t of the requirements f o r the degree of Master of A r t s  i n the Department  The U n i v e r s i t y of B r i t i s h April  1939.  of H i s t o r y .  Columbia  The Grand Trunk p a c i f i c  Railway  by  Joseph A r t h u r Lower  A t h e s i s submitted i n p a r t i a l  fulfilment  of the requirements f o r the degree of Master of A r t s  i n the Department  The U n i v e r s i t y  of B r i t i s h  April  1939  of h i s t o r y .  Columbia  C O N T E N T S Page Preface Chapter I .  1 The  Decade before  the Grand Trunk P a c i f i c  1  Era of p r o s p e r i t y b e g i n n i n g 1896 f a i l u r e of Conservatives - advance under L i b e r a l s - opening o f the northwest plans f o r t r a n s c o n t i n e n t a l s . Chapter I I . N e g o t i a t i o n s l e a d i n g to C o n s t r u c t i o n of the Railway  II  Problems o f the Grand Trunk - e a r l y plans f o r a t r a n s c o n t i n e n t a l - r e s i g n a t i o n of B l a i r - the r a i l w a y agreement - o p p o s i t i o n to the r a i l w a y reasons f o r b u i l d i n g . Chapter III.The B u i l d i n g o f the Railway  55  O f f i c i a l s - the p r a i r i e s e c t i o n - the mountain s e c t i o n - opening of s e r v i c e . Chapter IV. The Grand Trunk P a c i f i c S u b s i d i a r i e s  78  Branch L i n e s - Terminal E l e v a t o r Company - Grand Trunk P a c i f i c E l e v a t o r Company - T e r m i n a l Warehouse Company B. G. Coast Steamships - G. T. P. Dock Company - G. T. P. B. C. C o a l Company - Telegraph Company. Chapter V.  The  Power o f the Grand Trunk P a c i f i c  91  E v i l r e s u l t s of r a i l r o a d s - influence of p o l i t i c s - unscrupulous t a c t i c s o f the r a i l w a y - land s p e c u l a t i o n . Chapter V I . The Romance and S t r u g g l e Building  of. Railway  An immense undertaking - i n f l u e n c e on the country - problems of c o n s t r u c t i o n the b u i l d e r s . 126  Page Chapter V I I .  P r i n o e Rupert  135  Choosing the terminus - K a i e n Island dispute - Indian reserve agreement - s a l e of l o t s - l a t e r r e l a t i o n s between c i t y and r a i l w a y . Chapter ¥111. The Cost of the Grand Trunk P a c i f i c  152  E a r l y e s t i m a t e s - reasons f o r h i g h cost - l o a n s . Chapter IX.  The Last Years of the Grand Pacific  Trunk  E a r l y statements of i t s u l t i m a t e f a i l u r e - e a r l y p r o s p e r i t y - reasons f o r d e c l i n e - stages i n the c o l l a p s e of the r a i l w a y - reasons f o r the f a i l u r e - the v a l u e of the t r a n s c o n t i n e n t a l r a i l w a y - weakness o f the Grand Trunk P a c i f i c - the f u t u r e of Canadian Railways.  161  Appendix I .  Summary o f C o n t r a c t s l e t by the Grand Trunk P a c i f i c Railway Company  Appendix I I . L o c a t i o n and Mileage o f the Grand trunk P a c i f i c L i n e s Appendix III.funded Debt Outstanding December 31,1918 Appendix IV. Comparison of Grand Trunk P a c i f i c and other worth American Railways Bibliography  Index o f Maps To f a c e page Map  1.  The Grand Trunk P a c i f i c as p r o j e c t e d  67  Map  2.  The Grand Trunk P a c i f i c as completed, 1921  91  Map  3.  The L o c a t i o n of P r i n c e Rupert  135  Comparison of r a i l w a y mileage, p o p u l a t i o n , r a i l w a y revenues, and motor v e h i c l e s r e g i s t r a t i o n , 1876 - 1936  173  Chart 1.  i  PREFACE Western Canada has heen b u i l t around three g r e a t r a i l w a y s , the.Canadian Grand Trunk P a c i f i c .  P a c i f i c , the Canadian Northern, and the H i s t o r i a n s have w r i t t e n  accounts o f the f i r s t o f these, but the other  innumerable two, which  lost  t h e i r i d e n t i t y and are being r a p i d l y f o r g o t t e n , have been l a r g e l y ignored. portance  T h e i r s t o r i e s , however, a r e of v i t a l im-  i n the h i s t o r y of Canada, and present e p i c s compar-  a b l e to t h a t of the Canadian P a c i f i c . The the f i r s t  f o l l o w i n g pages a r e an attempt  to t e l l , f o r  time, the s t o r y o f the b u i l d i n g o f the Grand Trunk  P a c i f i c Railway.  i\io attempt  has been made t o d i s c u s s any  s p e c i a l phase nor to prove any theory c o n c e r n i n g the r a i l w a y . The  o b j e c t has been to l a y a f o u n d a t i o n  f o r the study o f  t h i s g r e a t t r a n s p o r t a t i o n system, and t o o r g a n i z e and make a c c e s s i b l e a l l the m a t e r i a l concerning i t .  I f t h i s work opens  a new f i e l d o f r e s e a r c h , i f i t c h a l l e n g e s an i n v e s t i g a t i o n , or i f , at some time, i t a f f o r d s a student w i t h a needed f a c t , i t w i l l have f u l f i l l e d  i t s purpose.  My thanks a r e due to the many people who have generously a s s i s t e d i n t h i s work, e s p e c i a l l y to Miss  Jean  W. S k e l t o n , M.A., and to Dr. W. N. Sage, who has c o n t i n u a l l y helped me with h i s encouragement and a s s i s t a n c e .  THE  GRAND TRUNK PACIFIC RAILWAY  Chapter I - The Decade Before the Grand Trunk P a c i f i c  The year 1896 ended a twenty-three  year downward  sweep of p r i c e s which marked a new phase of world economy*and which brought and  with i t "A c e r t a i n r e s u l t a n t  l a c k of i n i t i a t i v e  discouragement  i n the world of b u s i n e s s . "  year r e c o v e r y was slow but steady u n t i l 1914.  2  From that  In B r i t a i n ,  however, i t was r e t a r d e d s e r i o u s l y by the unaccustomed comp e t i t i o n of f o r e i g n manufacturers  both i n overseas and home  markets; the c l o s i n g of former markets by new t a r i f f s ; and the South A f r i c a n War.  By 1904 the trade of B r i t a i n was s t i l l 3  d e s c r i b e d as 'sluggish",  but by the end of that year s i g n s o f  r e v i v a l were becoming v i s i b l e . In s p i t e of t h i s economic d e p r e s s i o n the decade f o l l o w i n g the C o n s e r v a t i v e v i c t o r y o f 1895 was marked by a B r i t i s h r e v i v a l of i n t e r e s t a l l y i n the Empire. Joseph Chamberlain and  i n the world at l a r g e and e s p e c i -  Under the C o l o n i a l S e c r e t a r y s h i p o f the r e l a t i o n s between the mother-country  the daughter-nations underwent a r a d i c a l change.  .  The  B r i t i s h people r e a l i z e d that they were no l o n g e r along butt the. 1. W i l l i a m s o n , James A., A Short H i s t o r y of B r i t i s h The M a c M i l l a n Co., New York, 1931, 237.  Expansion,  £. Clapham, J . A., An Economio. H i s t o r y o f Modern B r i t a i n , Cambridge, 1938, 5. 3. i b i d , 41, 45.  vewd'myi member o f a p a r t n e r s h i p of n a t i o n s . I't was d u r i n g t h i s Conservative m i n i s t r y that  Britain  conquered the Sudan, drove France out of Fashoda, send Lord Curzon to I n d i a , h e l d the pageants of 1897, 1901, and 1902, fought  the South A f r i c a n War, and attended  ferences/of 1897 and 1902. i n and understanding  the C o l o n i a l con-  As a r e s u l t of t h i s new i n t e r e s t  of the empire, combined with the d e p r e s s i o n  i n B r i t a i n , thousands o f emigrants  left  the B r i t i s h I s l e s to  seek new homes i n the c o l o n i e s beyond the seas. Canada, too, was i n a s t a t e of d e s p a i r Itg* 1896. Here the world d e p r e s s i o n had been accentuated by numerous l o c a l problems.  The e r a which f o l l o w e d the b u i l d i n g of the  Canadian P a c i f i c Railway  had been one of "booms" f o l l o w e d  by d i s a p p o i n t i n g d e p r e s s i o n s .  Drought, f r o s t , and l a c k o f  markets had d i s h e a r t n e d even the most o p t i m i s t i c .  The N a t i o n a l  P o l i c y of the Conservative p a r t y had h u r t both E a s t and West. T h i s p o l i c y had added, f o r example, "About t h i r t y p e r c e n t to the cost of c o t t o n goods, t h i r t y - f i v e percent to the c o s t of c l o t h i n g and f u r n i t u r e , and f o r t y - f i v e percent to the c o s t of a b l a n k e t . "  1  The East had not prospered  the home markets congested In the West the farmer receiving l i t t l e  because i t found  and few markets a v a i l a b l e o u t s i d e .  was s u f f e r i n g from the s t r a i n o f  f o r h i s crops, paying h i g h f r e i g h t r a t e s , and  buying i n a p r o t e c t e d market while s e l l i n g a g a i n s t world competi t i o n . The expected  immigration had f a i l e d  1. Wrong, George M., The Canadians, Toronto, Company L i m i t e d . 1938, 386.  to m a t e r i a l i z e .  The MacMillan  3. Thousands o f young men trekked westward, but found so poor that they moved on to the U n i t e d s t a t e s . siders started  towards Ytfestern Canada, and even  conditions Many out-  registered  f o r homesteads, but l a c k of t r a n s p o r t a t i o n , and the a t t r a c t i o n s o f f e r e d hy the U n i t e d S t a t e s as they passed through that country, h e l d  them i n t h a t c o u n t r y .  In 1874, out of 1,376  homestead e n t r i e s , 890 were subsequently c a n c e l l e d ; i n 1877, out of 845 e n t r i e s , 463 were c a n c e l l e d ; i n 1896, out of 902 e n t r i e s , 400 were cancelled.^"  Faced w i t h such d e p r e s s i n g  f a c t s i t was almost with d e s p a i r that the people turned i n 1896 from the i n e f f i c i e n t C o n s e r v a t i v e l e a d e r s who had succeeded B i r John A. Macdonald Laurier.  t o the L i b e r a l p a r t y , under  S i r Wilfred  But never i n t h e i r w i l d e s t dreams had the people of  Western Canada imagined the change which was to come t o Canada d u r i n g t h i s  regime.  I t was the good f o r t u n e of the L a u r i e r government to be i n o f f i c e d u r i n g a time when the eyes of B r i t a i n and the r e s t o f the world were turned to Canada, and e s p e c i a l l y to Western Canada.  Of p a r t i c u l a r s i g n i f i c a n c e d u r i n g these y e a r s  were the K l o n d i k e Gold Rush o f 1898, the C o l o n i a l  Conferences  of 1897 and 1902, the p a r t i c i p a t i o n o f Canada i n the Boer War, and, a few years l a t e r , the Anglo-Japanese  Agreement.  The a g g r e s s i v e p o l i c y immediately adopted by the L i b e r a l government at t h i s time f o c u s s e d world i n t e r e s t on Canada. L a u r i e r d i d much towards e s t a b l i s h i n g r e c i p r o c i t y between  1. England, Robert, The C o l o n i z a t i o n o f Western Canada, London, 1936, 55.  4. Canada and  other n a t i o n s .  The propaganda o f C l i f o r d  the i m p e r i a l i s m of Chamberlain,  and the e f f o r t s of c o l o n i a l  s o c i e t i e s such as the Emigrants' C o l o n i a l I n s t i t u t e , found which had  Information O f f i c e and  fertile  f o l l o w e d the Boer War.  Sifton,  soil  the  i n the B r i t i s h d e p r e s s i o n  The people of B r i t a i n began  to r e a l i z e that the c o l o n i e s were not r e f u g e s f o r the u n d e s i r able and  the u n f i t , but were lands of o p p o r t u n i t y . C o i n c i d e n t with these events to be a t t r a c t i n g  the  eyes of the world to Canada, three g r e a t i n t e r n a l changes were talcing p l a c e .  These v/ere an advancement i n i n d u s t r y , a move-  ment i n North America towards the northwest, immigration p o l i c y .  and a d e f i n i t e  Each of these, although a c l e a r  i s c l o s e l y i n t e r l o c k e d with the other two;  and  the  division,  cumulative  i n f l u e n c e of the three caused each to grow with e v e r - i n c r e a s ing  r a p i d i t y d u r i n g the L a u r i e r p e r i o d . The f o u n d a t i o n work done by the C o n s e r v a t i v e s i n  t h e i r N a t i o n a l P o l i c y showed r e s u l t s d u r i n g the L i b e r a l val  of power.  for  by 1896  "He  JLaurier] was  inter-  happy i n the hour of h i s coming  the N a t i o n a l P o l i c y had  survived i t s early  days and had f o s t e r e d some prosperous  industries." " 1  i n d u s t r i e s of E a s t e r n Canada t h r i v e d and grew. a p e r i o d of s t a g n a t i o n , began to expand.  The  dark  The  Railways,  after  two most n o t e -  worthy of these are the i n t e r e s t s of James J . H i l l ,  especially  the Great Northern Railway,  and  Canadian Northern Railway.  Pressed by the threatened o p p o s i -  t i o n of these two  the Mackenzie-Mann p r o j e c t ,  great r i v a l s , the Canadian P a c i f i c  1* Wrong, G-eorge M.,  op. c i t . , 389.  the  Railway,  v/hich had added o n l y three hundred m i l e s to i t s system between 1 1890  and 1898, adopted a p o l i c y o f great expansion.  5.  By  b u i l d i n g , purchasing, and amalgamation of both r a i l w a y s and steamship l i n e s i t attempted to m a i n t a i n west..  i t s monopoly i n the  Of e s p e c i a l importance i n t h i s p e r i o d i s i t s c o n s t r u c -  t i o n o f the K e t t l e V a l l e y l i n e i n B r i t i s h Columbia, o f branches i n southern Manitoba and e a s t e r n O n t a r i o , and the e s t a b l i s h ment of a connection with the "Soo" l i n e which gave i t an alternative outlet  to the A t l a n t i c through the United S t a t e s .  These Canadian P a c i f i c roads v/ere of v i t a l  significance  because they were feeders from which the m i n e r a l s  of B r i t i s h  Columbia and the wheat of the P r a i r i e s c o u l d be procured, s u p p l i e d the Canadian P a c i f i c  with a d d i t i o n a l o u t l e t s f o r the  produce of the West, and, f i n a l l y , manufacturing  they  they opened the r i c h  s e c t i o n s o f Ontario and Quebec t o t h i s r a i l w a y .  Because o f t h i s great boom i n r a i l w a y b u i l d i n g , e a s t e r n manufacturers and western farmers  found markets f o r  t h e i r goods, and each complemented the o t h e r .  I n the West,  now that there was a means of t r a n s p o r t a t i o n t o the market, wheat-growing i n c r e a s e d enormously, so that i n 1903 o c c u r r e d a s e r i o u s g r a i n blockade.  Trade and commerce, which had  i n c r e a s e d o n l y 36% i n volume d u r i n g the 18 years 1896,  preceding 2 showed a gain of 107$ i n the seven y e a r s f o l l o w i n g .  1. S k e l t o n , Oscar D., The Railway B u i l d e r s , C h r o n i c l e s of Canada S e r i e s , Y o l . 32, Toronto, 1916, 223. 2. House of Commons Debates ( h e r e a f t e r c a l l e d H.C.D.) August 25", 1903, p. 9628.  Probably the c h i e f f e a t u r e of the L i b e r a l was  i t s immigration p o l i c y .  Under S i r C l i f f o r d  6.  regime  S i f t o n , the  M i n i s t e r of the I n t e r i o r , a well-planned campaign of propaganda and a d v e r t i s i n g v/as c a r r i e d on i n E a s t e r n Canada, U n i t e d S t a t e s , the B r i t i s h  I s l e s , and Europe.  Haryester excursions  were arranged from E a s t e r n Canada, encouraging many to the West.  Thousands came from Europe and, whereas the growth  of p o p u l a t i o n i n Canada d u r i n g the decade of Canadian P a c i f i c Railway c o n s t r u c t i o n averaged l i t t l e more than 1,000 and from 1887  to 1897  about 5,000, the immigrant  mounted to 31,900 i n 1898;  44,543 i n 1899;  per year" ", 1  figures  128,364 i n 1903,  p and i n c r e a s e d u n t i l  1913 when a peak of 402,432 was  Homesteads, which averaged 3,418  per year from 1874  reached. to  1900,  jumped to an average of 22,222 f o r the next f i v e y e a r s . 1896  there were 1,340  In  homesteads i n the North-West; i n 1903  there were 31,383. "The o l d charge that the Hudson's Bay Company delayed the settlement of the Canadian p r a i r i e century i s open to q u e s t i o n .  for half a  Even a f t e r the Dominion of  Canada took over the West, s e t t l e r s d i d not come i n any numbers.  The b u i l d i n g of the Canadian P a c i f i c  1. O l i v e r , Edmund H., 1913, 172.  3. O l i v e r , o p . c i t . ,  Railway brought  Canada and i t s P r o v i n c e s XIX,  2. Canada Year Book 1925, 174.  175.  large  Toronto,  7. i n some s e t t l e r s , but the r e a l rush d i d not begin u n t i l the 1890's when the Americans came n o r t h l o o k i n g f o r f r e e land and European immigrants, who had p r e v i o u s l y come to the u n i t e d S t a t e s , turned  to Canada as the land o f o p p o r t u n i t y . "  1  T h i s movement a c r o s s the American border i s t r u l y amazing.  The former exodus changed to an i n f l u x that f o r some 2  years was g r e a t e r than that of the B r i t i s h .  T h i s sudden t u r n  o f the Americans to Canada was l a r g e l y due to the f a c t  that  the " f r o n t i e r movement" of the U n i t e d S t a t e s had reached i t s end.  The l a s t o f the "great open spaces"  - the Dakotas,  Montana, and to a l e s s extent, Northern Minnesota - had been f i l l e d by s e t t l e r s with a r e s u l t i n g r i s e  i n the value o f l a n d .  U n i t e d S t a t e s ' farms which were s e l l i n g f o r $60 an acre i n 1890  were almost doubled i n p r i c e i n 1898.  3  S e t t l e r s would  not pay $75 to $100 an acre f o r land i n the U n i t e d S t a t e s when many s e c t i o n s of Canada, which were just as good'f could be 4 obtained  f o r as low as f i v e d o l l a r s an a c r e .  The l a n d -  seeking Americans, i n f l u e n c e d undoubtedly by the a d v e r t i s i n g campaign of C l i f f o r d S i f t o n , s o l d t h e i r lands a t a high r a t e and  turned  towards Canada f o r t h e i r homesteads. So  great was t h i s American i n v a s i o n that one w r i t e r  s t a t e d , "Between Calgary and Edmonton one may t r a v e l a l o n g the 1. Sage, Dr. W. N., Canada West o f the Great Lakes, Ch.I, unpublished manuscript. 2. England, o b . c i t . , 68. 3. Burt, A. L., Romance of the P r a i r i e P r o v i n c e s , T o r o n t o , 193J, £52. 4. C h a r l t o n , J . "Another Canadian T r a n s c o n t i n e n t a l " , North American Review, 179. October 1904, 592.  l i n e of r a i l r o a d and f i v e out of every s i x people are Americans The people of E a s t e r n Canada began to f e a r that t h i s great movement would r e s u l t  i n p e a c e f u l p e n e t r a t i o n and the u l t i m a t e  annexation of Western Canada by the United S t a t e s ,  i n 1904  approximately 50,000 Americans moved to Canada from the United S t a t e s , whereas, 2  "Eight y e a r s b e f o r e some 46 Americans moved  i n t o Canada." The  i n f l u x of these thousands of immigrants  r e s u l t e d i n s e t t l e m e n t s b e i n g b u i l t f a r from the e x i s t i n g Canadian P a c i f i c  l i n e s , and a tremendous  i n c r e a s e i n the amount  of g r a i n , p a r t i c u l a r l y wheat, b e i n g produced. was  The c r y i n g need  f o r t r a n s p o r t a t i o n , and the g r e a t r a i l w a y boom was the  r e s u l t of t h i s need.  Undoubtedly the r a i l w a y i n t e r e s t s of  the United S t a t e s would  have responded to t h i s i f they had  not been f o r e s t a l l e d by the Canadian Northernsand Canadian P a c i f i c Railways. The Canadian Northern Railway had i t s i n c e p t i o n i n 1896 when W i l l i a m Mackenzie and Donald Mann purchased the c h a r t e r of the Lake Manitoba and Canal Company.  By means  of F e d e r a l land g r a n t s and P r o v i n c i a l guarantees i t r a p i d l y , and by combining amalgamation  built  with c o n s t r u c t i o n  work, the Canadian Northern c o n t r o l l e d 1200 m i l e s of l i n e by 1902, extending fromoP6rt.rAr.thur, O n t a r i o , to Erwood, Saskatchewan.  In the l a t t e r year i t o b t a i n e d a u t h o r i t y from the  1. Curwood, J . O l i v i e r , "The E f f e c t of the American I n v a s i o n " , The Tvorld's Work, X, No.5, September 1905, 6608. 2. MacFarlane, Knappen T.,"Western Canada i n 1904". Review of Reviews, XXX, No.5, November 1904, 580. Note a l s o the f i g u r e s g i v e n by England, op.cit. ,68: 1897 - 712; 1901 - 5,197; 1903 - 13,435; 1905 - over 40,000.  9. F e d e r a l government to b u i l d  to Montreal,  and  p l e t e a t r a n s c o n t i n e n t a l r a i l w a y with a l i n e f a r to the north of the e x i s t i n g T h i s route was Edmonton, and but  i t was  to the  l i n e of p r a i r i e  Pacific  settlement.  o r i g i n a l l y to pass P r i n c e A l b e r t on the way  to  then through the Yellowhead Pass to Vancouver,  l a t e r changed to take a more d i r e c t  route through the p r a i r i e s . r a p i d , and  planned to com-  on November 24,  and  southern  Expansion i n t h i s s e c t i o n 1905,  Edmonton was  was  reached.  Meanwhile another t r a n s c o n t i n e n t a l l i n e , which promised to become a n a t i o n a l road, was  p r o j e c t e d by a group  i n Quebec c i t y under the l e a d e r s h i p of W i l l i a m P r i c e , lumber merchant.  I t o f f e r e d a route  from coast to  shorter than any other because i t was latitudes.  T h i s road, which was  road was  coast  to b u i l t i n the  high  known as the Trans-Canada  Railway, r e c e i v e d i t s c h a r t e r i n 1895, u n t i l 1901,.when the c h a r t e r was  a  but  little  renewed and  to f o l l o w an almost d i r e c t  v/as done  revised.  The  l i n e from G h i c o u t i m i ,  head of n a v i g a t i o n on the Saguenay R i v e r , to the P a c i f i c P o r t Simpson.  The  l i n e would pass near James Bay  and  the near  north  of Lakes Winnipeg and Winnipegosis to the Peace R i v e r P a s s . Compared with the l i n e of the Canadian P a c i f i c was  3,078 m i l e s , t h i s one  miles.  Moreover, i t was  harbor on James Bay,  and  was  o n l y 2,839, a saving of  248  to have Nottoway, the only deep a l s o P o r t Simpson, one  harbours on the P a c i f i c Coast. p r o v i n c e from G h i c o u t i m i  Railway, which  I t was  of the  finest  a c t u a l l y b u i l t i n Quebec  to S o b e r v a l , and  subsidies  granted  f o r a l i n e s i x t y m i l e s f u r t h e r westward.! highly favorable  Empire, and  by the United  B r i t i s h Opinion  S t a t e s , and  2  from L i v e r p o o l  v i a the U n i t e d S t a t e s by 2200 m i l e s .  Later  developments, such as the b u i l d i n g o f the Hudson Bay and  the development of Northern Ontario and  that the scheme was  was  regarded i t as a l i n k i n the  a method of c u t t i n g the d i s t a n c e  to Yokohama  was  f o r t h i s Trans-Canada Railway, f o r i t o f f e r e d  a l i n e safe from m o l e s t a t i o n all-Canadian.  Public opinion  fundamentally sound, and  Railway  Quebec, show i t would Jprobably  have.been much more s u c c e s s f u l than the r a i l w a y s which caused i t s abandonment. T h i s Trans-Canada p r o j e c t became a b o r t i v e when C h a r l e s M.  Hays announced i n 1902  that the great  r a i l w a y of the East, the Grand Trunk, was i t s l i n e to the P a c i f i c  Coast, and  Canadian  planning  to extend  thus to become another  po?/erful t r a n s c o n t i n e n t a l .  1.  H.C.D. August 27,  1903,  p. 9993.  2.  Although no evidence i s to be found, the Anglo-Japanese A l l i a n c e of 1902 mjji/b have a f f e c t e d B r i t i s h o p i n i o n f a v o r a b l y towards such a r a i l w a y .  Chapter  I I - N e g o t i a t i o n s Leading to C o n s t r u c t i o n of the  The was  Railway  Grand Trunk Railway'Company, c h a r t e r e d i n  the o l d e s t r a i l w a y i n Canada.  Maine, and  Chicago,  I l l i n o i s , but between these  i t s main l i n e passed i n Canada. Southern  I t s termini-were  Portland,  two p o i n t s  through S a r n i a , Toronto, and  Montreal  I t thus occupied the w e a l t h i e s t s e c t i o n of Canada,  O n t a r i o and Quebec.  By a b s o r b i n g almost  all its  competitors, n o t a b l y the Great Western (904 m i l e s ) and Midland  Railway  f o r many y e a r s . mostly  (473 m i l e s ) i t s supremacy was The  i n England,  one-quarter  maintained  s t o c k of the company, which was  was  the  h i g h l y s p e c u l a t i v e , but, while about  of t h i s stock p a i d from f o u r to f i v e p e r c e n t ,  Grand Trunk Railway  i n s t i t u t i o n , and  was  predominantly  and,  sort.  a profit-making  should be p a i d out i n  T h i s meant that very few  r e s e r v e s were accumulated,  i n the l a s t few years of the company, that money which  should have been spent on upkeep and maintenance was over to the s h a r e h o l d e r s . Commission of 1917  In the r e p o r t s of the  turned  Railway  and the Grand Trunk A r b i t r a t i o n of 1921 i t  was  shown that the accounts  -  h.C.D., August 26, 1903.  1  the  t h e r e f o r e the shareholders i n s i s t e d that a l l  r e c e i p t s i n excess of expenditures dividends.  there  held  m a j o r i t y of the s h a r e h o l d e r s r e c e i v e d no dividends of any The  1851,  o f the r a i l w a y had been sormanlpu*'". p.9799.  l a t e d as to render the accounts  presented as w o r t h l e s s , and  that " d i v i d e n d s v/ere p a i d when...there were no earnings able to the payment of such d i v i d e n d s . " which should have been spent  1  applic-  Over 121,000,000  i n maintenance (Turing the twenty  years p r e c e d i n g 1917 had been p a i d on the c a p i t a l of the company.  I n one year alone, 1 9 1 6 , i t p a i d i t s s h a r e h o l d e r s 3  $2,500,000 w h i l e , a t the same time, i t was b e w a i l i n g i t s financial difficulties Although ous,  t o the Canadian government.  the Grand Trunk a t f i r s t had been p r o s p e r -  the c o m p e t i t i o n o f f e r e d by the Canadian P a c i f i c  brought  a n o t i c e a b l e d e c l i n e to i t s b u s i n e s s .  Railway  The Grand  Trunk Railway r e f u s e d an o f f e r to b u i l d the f i r s t t r a n s c o n t i n e n t a l , probably as a r e s u l t of i t s " l o n g - d i s t a n c e c o n t r o l and 4 hand-to-mouth" first  policy.  Moreover, as the West v/as opened, and  the Canadian P a c i f i c Railway and then the Canadian  Northern b u i l t up a great t r a f f i c  on the p r a i r i e s , the Grand  Trunk Railway made no e f f o r t to share i n t h i s new b u s i n e s s . As a r e s u l t , by 1897 i t was i n g r e a t d i f f i c u l t i e s .  Immigrants  v/ere c a r r i e d on i t s l i n e , only to be t r a n s f e r r e d t o the other companies and c a r r i e d westward.  I t thus became l i t t l e more  than a " f e e d e r " of the Canadian P a c i f i c Railway,  a position  i t found both h u m i l i a t i n g and u n p r o d u c t i v e . F r e i g h t and t r a f f i c 1. Annual Report of Railways and C a s a l s , 1 9 2 1 ( h e r e a f t e r c a l l e d Grand Trunk A r b i t r a t i o n ) p. 147 and 1 4 8 . 2. Report of the Royal Commission to Enquire i n t o Railways and T r a n s p o r t a t i o n i n Canada, 1917 [Hereafter c a l l e d Railway i n q u i r y Commission) p. l x x x v i and 8 4 . 3. i b i d . , 8 4 . &. Newell, «3'. P., "A Review of the Grand Trunk Railway A r b i t r a t i o n " , E n g i n e e r i n g News Record, Y o l . X C No.5, F e b . l , 1923. 2 1 1 .  13. from the western p r o v i n c e s , moveover, were f i r s t rival  l i n e s and from them were t r a n s f e r r e d to the Grand  a p r a c t i c e which put dependency felt now it  c a r r i e d on the  the  Trunk,  l a t t e r more than ever i n a p o s i t i o n of  on the other l i n e s .  Furthermore, whereas i t had  secure i n i t s monopoly and s o l i d i t y inSSouthern O n t a r i o , i t r e a l i z e d that the competing roads were g r a d u a l l y hemming  in.  Because of i t s theory that b u s i n e s s should come to the  r a i l r o a d , i t found i t s e l f a prey f o r an a g g r e s s i v e competitor, the Canadian P a c i f i c t h i s way new  Kailway, which b u i l t  to the towns and i n  not o n l y barred the Grand Trunk from s h a r i n g the  business of the West, but a l s o competed f o r the o l d b u s i -  ness, even i n the e s t a b l i s h e d s e c t i o n of the country which^ the Grand Trunk had t r i e d  to monopolize.  In'a desperate e f f o r t to r e c o v e r , the Grand Trunk i n 1897 appointed C h a r l e s M. Hays as g e n e r a l manager of i t s lines.  There i s no doubt that he was  way men  i n JMorth America.  one of the f i n e s t  P r e v i o u s to h i s appointment  railto the  Grand Trunk he had shown h i s a b i l i t y by s a v i n g the Wabash R a i l r o a d System from bankruptcy.  With the e x c e p t i o n of one  year, 1901, he remained with the Grand'i'Trunk Railway u n t i l h i s death on the " T i t a n i c " i n 1912.  i n the f i n a l years o f  h i s l i f e he became the v i c e - p r e s i d e n t and f i n a l l y  president  of the company. Hays began to o v e r h a u l the r a i l r o a d by it  dissecting  and r e c o n s t r u c t i n g i t p i e c e by p i e c e , tie moved the head-  q u a r t e r s of the company from. London, England, to M o n t r e a l . He broke through the net of l i n e s e n c i r c l i n g the Grand  Trunk  14. i n Southern O n t a r i o , and planned new  feeders.  L a r g e l y through  amalgamation, he destroyed much of the o p p o s i t i o n . i t had  Whereas  f o r m e r l y heen s a i d t h a t a Grand Trunk t r a i n would a r r i v e ,  but not on time, the r a i l w a y was  now  noted f o r i t s e f f i c i e n c y .  From the verge of bankruptcy the Grand Trunk Railway r e t u r n e d to i t s p o s i t i o n as a d i v i d e n d paying concern* estimated  ©rand Trunk Railway c a p i t a l  $80,000,000 over 1895.  1  stock was  In December, 1902,  By  1900  i t was  enhanced  f o r the only time  i n i t s h i s t o r y , i t d e c l a r e d a d i v i d e n d on t h i r d  preference  stock. Hays saw maintain  that i f the Grand Trunk Railway were to  i t s s t r e n g t h , i t must share  to be gained  by the  i n the wealth v/hich  t r a n s p o r t a t i o n of goods and  tween E a s t e r n and ?,/estern Canada.  He  people  was  be-  stated,  We are today h a n d l i n g from f i f t e e n to twenty m i l l i o n bushels of g r a i n , which comes a c r o s s the lakes from Lake S u p e r i o r , down to our p o r t s , f e e d i n g the whole Grand Trunk system throughout O n t a r i o , and thus c o n t r i b u t i n g • a very l a r g e p o r t i o n of our e a r n i n g s . We cannot h o l d to that system i f we do not take some means of f a s t e n i n g i t to us. That busi n e s s today i s g i v e n to our competitors. Hence h i s plans f o r a new  t r a n s c o n t i n e n t a l l i n e which would  connect the Grand Trunk l i n e s with the West. Hays expected that the o p p o s i t i o n to h i s scheme would be  s t r o n g , e s p e c i a l l y from the other r a i l r o a d s .  aged by S i r W i l f r e d L a u r i e r , however, and  Encour-  c e r t a i n of h i s  1. Carman, A l b e r t R., "Charles M e l v i l l e Hays", Canadian Magazine, May 1903, 17. 2. P a t t e r s o n , N., "The Grand Trunk P a c i f i c " , Canadian Magazine, V o l . XXVI. A p r i l 1906, 510.  support, he s e c r e t l y prepared through  his plans.  Agents were sent  Canada to d i s c o v e r the a t t i t u d e o f the  s e c t i o n s towards such a scheme, and  different  to spread propaganda.  When  t h i s had been done n e g o t i a t i o n s v/ere q u i e t l y entered i n t o with the government.  On November 2, 1902,  a p e t i t i o n was  sent  c o n f i d e n t i a l l y to S i r W i l f r e d L a u r i e r with the s i g n a t u r e s of George A. Cox,  Charles M.  Hays, and 7/illiara Wainwright,  suggesting that a r a i l w a y known as the Grand Trunk P a c i f i c should be  b u i l t from North Bay to the P a c i f i c .  a p p a r e n t l y was  sent to determine the a t t i t u d e of the  ment and f o r almost those  and  two years was  i n the c a b i n e t .  Railway,  This  letter govern-  not r e v e a l e d t o any  By agreement with the  except  Intercolonial  i t o f f e r e d an a l l - B r i t i s h l i n e from ocean to ocean,  i n r e t u r n suggested  a cash subsidy of $6,400 per mile  p l u s a grant of 5,000 a c r e s of land per m i l e , payment f o r the c a r r i a g e of m a i l s at the same r a t e as that b e i n g r e c e i v e d by the Canadian P a c i f i c Railway, m a t e r i a l s f o r c o n s t r u c t i o n which could not be o b t a i n e d i n Canada t o be admitted  free,  a l l appurtenances f o r c o n s t r u c t i n g and working of the road to be  rail-  f r e e from taxes f o r e v e r , and a l l land h e l d by  the  company i n the North West T e r r i t o r i e s to be tax f r e e f o r twenty y e a r s .  In b r i e f t h i s would have meant a cash  of approximately  $15,948,000 and  12,460,000 a c r e s .  land grants  I f a value i s set to t h i s  subsidy  totalling land at three  d o l l a r s per a c r e , i t s t o t a l v a l u e would be $37,380,000. should be noted  that i n s p i t e of the phrase  the proposed r a i l w a y would have been 1,000  It  "ocean to ocean", m i l e s from the  Atlantic  Ocean.  The o f f e r was r e f u s e d by S i r W i l f r e d  and h i s c a b i n e t , and other p l a n s were f o r m u l a t e d .  Laurier  As a r e s u l t ,  on November 24, 1902, Mr. Hays made a bare announcement that a new company was  to be formed, which was  dependent of the e x i s t i n g  to be e n t i r e l y i n -  Grand Trunk Railway, but which  to have e x c l u s i v e t r a f f i c arrangements w i t h i t . purpose was  adopted by  Canadian P a c i f i c Railway i n the e a r l y s e v e n t i e s but sub-  sequently abandoned. the  announced  t o . o b t a i n the f r e i g h t both to and from the West,  and the route would probably f o l l o w that f i r s t the  The  was  Moreover, he s t a t e d , "The o b j e c t of  company i s to get a f i r s t c l a s s r o u t e , r a t h e r than to  touch the present c e n t e r s of p o p u l a t i o n . "  L a t e r he added  that one of the most important f e a t u r e s was the proposed trade v/ith the O r i e n t ,  and the f a i l u r e of t h i s to develop  has o f t e n been given as one of the main reasons f o r the e v e n t u a l f a i l u r e of the r a i l w a y to succeed f i n a n c i a l l y . Because of the s e c r e c y of the p r e p a r a t o r y work, the  announcement of t h i s " e x t e n s i o n of the Grand Trunk" was  "regarded with some l i t t l e , s u r p r i s e by the average r e s i d e n t 4 of the Dominion."  There had a p p a r e n t l y been no demand f o r  such a r a i l r o a d , and t h i s p o i n t was s t r e s s e d by the opponents 1. H.C.D. May 26, 1904. 3634. Speech by Hon. Mr. F i e l d i n g . See a l s o the l e t t e r by W. H. B i g g a r to the Railway Enquiry Commissicbn, 1917, p . x x v i i . 2. Vancouver D a i l y P r o v i n c e , November 24, 3. i b i d . , February 27,  1903.  4. i b i d . , e d i t o r i a l , November 25,  1902.  1902.  of the scheme.  As w i l l be shown l a t e r , however, the demand soon  grew, probably l a r g e l y as a r e s u l t of the e a r l y propaganda and o r g a n i z a t i o n of hays. The announcement was very b r i e f , and because of i t s l a c k of d e t a i l rumors were numerous.  An example  of t h i s i s  shown i n the Vancouver D a i l y P r o v i n c e which s t a t e d i n i t s heading over Hays  1  announcement that the r a i l r o a d would prob- -  a b l y terminate i n Vancouver.  A statement by F.M.  t h i r d v i c e - p r e s i d e n t o f the company, was  Morse,  very l i t t l e  clearer.  He s t a t e d that a l t h o u g h the r a i l r o a d would probably be b u i l t from Gravenhurst or North Bay to Winnipeg, no plans had been formulated west of that c i t y .  Other e a r l y rumors were that  the road would be completed w i t h i n f i v e years a f t e r the surveys, that i t would organize t r a n s - P a c i f i c  steamship l i n e s ,  that J . P i e r p o n t Morgan and other American, i n t e r e s t s had suggested f i n a n c i n g the scheme,  1,  that  i t was e i t h e r to annex  or t o amalgamate with the Canadian Northern, and t h a t i t was to be b u i l t v/ith an absence of government  bonuses of any k i n d .  In s p i t e of i t s d e n i a l s e v e r a l times by both p a r t i e s , the most p e r s i s t e n t rumor was  that concerned with the Canadian Northern.  I t was probably caused by the f a c t  that S i r W i l f r e d  Laurier  d i d arrange meetings between Hays and Mackenzie i n 1902 and 2 1903,  which a p p a r e n t l y S a i l e d because of the e x c e s s i v e demands  of the Canadian Northern.  3  1. Vancouver D a i l y P r o v i n c e , Jan. 27, 1903. 2. Thompson, Norman and Edgar, Major J . H., Canadian Railway Development From E a r l i e s t Times, Toronto, 1933, 233. 3. Note the comment of Robert Borden,"At double the p r i c e the Grand Trunk would have been f o r t u n a t e to escape i t s d i s r a s t r o u s e n t e r p r i s e . " Borden, Henry, Robert L a i r d Borden, H i s Memoirs ( H e r e a f t e r c a l l e d Borden's Autobiography ), " Toronto, 1938, 109.  The  belief  that there  were to be no bonuses was  d e f i n i t e l y c o r r e c t e d about a week a f t e r ment.  the o r i g i n a l announce-  Under the headings, "The Grand Trunk a f t e r  everything  that i s n ' t n a i l e d and padlocked - Mr. Morse l e t s c a t out of bag  - T h i s t r a n s c o n t i n e n t a l scheme hot a p h i l a n t h r o p i c  prise,"  the Vancouver D a i l y P r o v i n c e  as s a y i n g ,  enter-  quoted Mr. P. M. Morse  "Of course we w i l l ask the government f o r s u b s i d i e s ,  the same as have been granted to other  lines.  The Canadian  Northern and Canadian P a c i f i c r e c e i v e d l a r g e s u b s i d i e s and we w i l l n a t u r a l l y ask f o r the same t h i n g . " The  1  o r i g i n a l plan was simply an e x t e n s i o n  of the  Grand Trunk Railway from North Bay westward t o P o r t  Arthur, p  and purchase of the Canadian Northern from t h i s p o i n t . ever, a p p a r e n t l y  the l a t t e r would not consider  p l a n was r e v i s e d . extension  How-  t h i s , and the  The Grand Trunk r e s o l v e d t o b u i l d  i t s own  to the P a c i f i c Coast.§ T h i s new l i n e was o r i g i n a l l y  to pass north o f Lake Winnipeg, but was changed to enter Winnipeg.^ serve  B e l i e v i n g that a s u b s i d i z e d r a i l w a y ,  which would  the s p a r s e l y populated west, but would be l a r g e l y  f o r by the more s e t t l e d  paid  east, would be opposed s t r o n g l y , and  hoping to win the Quebec, supporters  of the Trans-Canada  Railway to t h i s scheme and thus e l i m i n a t e  one o f the two  s u b s i d i e s v/hich i t had promised, the government f o r c e d the company to b u i l d  from Quebec i n s t e a d of from North Bay.  company r e a l i z e d  that i t must agree t o t h i s p l a n i f i t were  1. Vancouver D a i l y P r o v i n c e , 2. H.C.D. 1905,p.9156. 4.  i b i d . , 1903,  The  December 1, 1902. 3. i b i d . , August 19,1903,p.9198.  p.9199 and 1904,  p.2313.  to r e c e i v e government a s s i s t a n c e and the  change.  f o r t h i s reason  accepted  1  I t had been expected that the i n h a b i t a n t s of Quebec, who  were d i s c o n t e n t e d  b u i l t to Montreal,  because the other  would support  large r a i l w a y s  the government i n i t s e f f o r t s  to make that c i t y the terminus of the new f o r g e t the Trans-Canada,  had  r a i l w a y and  would  T h i s scheme came to naught, however,  when the M a r i t i m e s demanded that the r a i l w a y be b u i l t  to  them.  to  The  government v/as f o r c e d to lengthen  the  line  2 Moncton,  which was  felt  to be  ment set f o r t h by H a l i f a x and the terminus.  the o n l y s o l u t i o n to the  S t . John, both of which wanted  I t can be e a s i l y  seen how  t h i s r a i l r o a d became  a " P o l i t i c a l , r a t h e r than a p r a c t i c a l r a i l w a y , or a railway." " Aside l  argu-  business  from t h i s argument over the e a s t e r n  terminal,  the only other f a c t s of importance i n the p l a n were that i t was  to go  to the n o r t h e r n P a c i f i c c o a s t , and  have a c a p i t a l i z a -  t i o n of §75,000,000. As Hays had and  persistent.  The  expected, the o p p o s i t i o n was  a t t a c k centered  i s s u e s - t h a t the e a s t e r n was  terminus of the  at P o r t l a n d , Maine, while any  all-Canadian especially,  around two  new  strong  important  Grand Trunk Railway  r a i l w a y should be  l i n e v/ith i t s terminus a t a Canadian p o r t , that there  The  should  be no  most o u t s t a n d i n g  and  subsidy  of any  an and,  kind.  p e r s i s t e n t opponents  a g a i n s t the scheme, w i t h the e x c e p t i o n 1. Jackman, W.T., Economic P r i n c i p l e s Toronto, 1935, 30. 2. H.C.D., June 22, 1903, p. 5175.  of the o p p o s i t i o n i n of  Transportation,  parliament,  were the Quebec i n t e r e s t s behind the proposed  Trans-Canada Railway, James J . H i l l of the Great Northern K a i l way,  S i r Thomas Shaughnessy, p r e s i d e n t  of the Canadian P a c i f i c  Railway, and Mackenzie and Mann of the Canadian Northern 1 way.  These men  s t a t e d that there were a l r e a d y  continentals projected,  f r e e from competition and  t h a t , i f the  be  able  that the r a i l w a y v/ould open new  f o r e would have to e x i s t many years before o b t a i n much revenue, and  to support  lands and  as had  plan there-  been given  was  to e i t h e r  other  railway.  months f o l l o w i n g the o r i g i n a l announcement are  some of the most i n t e r e s t i n g and  p u z z l i n g i n the h i s t o r y of  I t has been shown that the o r i g i n a l  of the Grand Trunk had been enlarged 1.  itself.  i t could expect to  the Canadian P a c i f i c , Canadian Northern or any  the r a i l w a y .  of the  that because o f t h i s f a c t i t  e n t i t l e d to as much a s s i s t a n c e  The  incurred,  country were f a r enough advanced to warrant  As opposed to these arguments, the supporters out  been  should be g i v e n a p e r i o d  because of the r i s k s they had  another t r a n s c o n t i n e n t a l , i t should  pointed  enough t r a n s -  that the e a r l i e r r a i l w a y s had  b u i l t through u n s e t t l e d c o u n t r y and  Rail-  "extension"  into a transcontinental,  Mr. Borden s t a t e s : " S i r W i l l i a m Mackenzie c a l l e d i n t o play h i s f u l l energy and r e s o u r c e f u l n e s s to prevent an i n v a s i o n of western t e r r i t o r y t h a t might prove d i s a s t r o u s to the Canadian N o r t h e r n . But Mr. Hays' p r o j e c t appealed very s t r o n g l y t o . S i r W i l f r e d . Mackenzie t o l d me that he had the Government's promise to hear him f u r t h e r before f i n a l l y e n t e r i n g i n t o the Grand Trunk agreement. This promise was e i t h e r f o r g o t t e n or d i s r e g a r d e d . " This statement i s t y p i c a l of the c o n t r a d i c t o r y evidence which i s t o be found r e p e a t e d l y i n t h i s problem. One p a r t of i t suggests c o n s p i r a c y , the other leads to the b e l i e f that Mackenzie would do nothing u n t i l he had heard from L a u r i e r Borden's Autobiography, 111.  to  be b u i l t by the Grand Trunk P a c i f i c Railway Company, and 1  that i t would c a r r y goods f a r to the n o r t h of the parent company and to a p o r t f a r north of P o r t l a n d .  On June 4, 1903,  a f t e r b e i n g before the r a i l w a y committee f o r seven days, the b i l l passed that body. the It  On June 22 Mr. Borden complained i n .  House o f Commons about the high c a p i t a l i z a t i o n o f the road was a p p a r e n t l y about t h i s time t h a t r a d i c a l changes were  made i n the p l a n s .  On June 29 the Ottawa J o u r n a l s t a t e d  that,  a f t e r a meeting of S i r Y/ilfred L a u r i e r , S i r W i l l i a m Mulock, C l i f f o r d S i f t o n , C h a r l e s Hays, and W i l l i a m Wainwright, i t was t o be a r a i l w a y a s s i s t e d by the government ,awho v/ould g have the r i g h t to purchase i t i n 30 y e a r s .  On J u l y 3 the  Toronto Globe p u b l i s h e d an a r t i c l e which was very c l o s e to being the f i n a l agreement.  Prom t h i s we must judge that  about the end of June very r a p i d a l t e r a t i o n s were made to the  o r i g i n a l plans before they were presented to p a r l i a m e n t . The government was s t i l l  s e c r e t i v e , however, and  the  next i n c i d e n t was the agreement of the L i b e r a l caucus to  the  b i l l on J u l y 9, f o l l o w e d by the r e s i g n a t i o n of the  M i n i s t e r of Railways and Canals, Mr. B l a i r .  T h i s was tendered  1. F i f t e e n years l a t e r the Grand Trunk o f f i c i a l s blamed t h e i r t r o u b l e s to t h i s change from the o r i g i n a l p l a n s : " I t i s not a n a t u r a l c o n n e c t i o n of the Grand Trunk Railway." Railway I n q u i r y Commission, 1917, 76. 3- H.C.D., June 30, 1903, 5734. 3. i b i d . , 1903, p. 5893.  22. on J u l y 10 but  was  not announced u n t i l J u l y 15.  another example of the apparent u n c e r t a i n t y and  f u r t h e r implies  s e c r e t as  that  opposition  felt  presented h i s t o r i a n s with one  B l a i r claimed that he  i n t e r c o l o n i a l , to the c o n s t r u c t i o n  of a  was  in  transcontinental  i n favor  to the Grand Trunk Railway, and  not  declared 2  of a government c o n t r o l l e d r a i l w a y .  been i n c l u d e d  "pique not p r i n c i p l e " , because  that, as M i n i s t e r of Railways, he had  Such a b e l i e f would n a t u r a l l y r e s u l t i n h i s Later  that  It  i n the o r i g i n a l arrangements  i n the year B l a i r was  and  been s l i g h t e d . resignation.  appointed to the  chair-  manship of the newly formed Railway Commission, "the most important p o s i t i o n w i t h i n i t s [the Government 'sj resigned  t h i s p o s i t i o n on October 18,  r e s i g n a t i o n there  has  1904.  gift."  Since the  been a p e r s i s t e n t attempt to  He latter  discover  other reasons f o r both h i s r e s i g n a t i o n s , but more p a r t i c u l a r l y f o r the f i r s t . persisted.  Implications  have been numerous and  Sometimes these are  1.  h.C.D. , 1903,  2.  ibid.,  3.  Borden's Autobiography,  stated  L e t t e r to L a u r i e r , 1903, 131.  three  have  i n d i v i d u a l l y , but more  6735 and 10.0119. 6745.  of  building  through an unknown country, to the too-generous treat-  a l s o have been caused by  he had  as  to b u i l d i n g another government road to p a r a l l e l  ment b e i n g given  may  government  and most i n t r i g u i n g problems i n the  of the Grand Trunk P a c i f i c .  he was  is  possible.  the most d i f f i c u l t  railway  of the  delay  i t wished to keep n e g o t i a t i o n s  T h i s r e s i g n a t i o n has  the  This  1  o f t e n they are c l o s e l y  connected as a " p l o t " .  B r i e f l y they  were: that B l a i r had agreed t o j o i n the C o n s e r v a t i v e p a r t y , that he was i n f l u e n c e d by some f i n a n c i a l group, and that he was c l o s e l y  connected v/ith the Mackenzie-Mann The  interests.  f i r s t b e l i e f was a rumor t h a t B l a i r was t o  r e c e i v e the p o r t f o l i o o f M i n i s t e r of Railways under the Cons e r v a t i v e s but t h i s  i s denied by S i r Robert B o r d e n .  1  The  i n f l u e n t i a l f i n a n c i a l group was unknov/n, but i t was s t a t e d that B l a i r had r e c e i v e d between $20,000 and $50,000 on the day hf h i s r e s i g n a t i o n .  The most common b e l i e f was that  he was i n some way connected with the Canadian Northern interests.  The Vancouver  D a i l y Province, in.an e d i t o r i a l  on the day of h i s r e s i g n a t i o n from the -commission,  states:  I t i s understood that he w i l l be p r o f e s s i o n a l l y employed by one of the l e a d i n g r a i l w a y companies . . . . t h i s would lead to the f a i r i n f e r e n c e that i t i s the Canadian Northern Railway which has demons t r a t e d to the Honourable Mr. B l a i r that h i s conn e c t i o n with that r a i l w a y would be much more p r o f i t able than the chairmanship of the Railway Commission • •• •  The i n f e r e n c e that Mr. B l a i r ' s r e s i g n a t i o n may be t r a c e d to Mackenzie and Mann i s supported by Mr. B l a i r ' s remarks i n accouncing h i s r e s i g n a t i o n , and a l s o by the f a c t that h i s c o n n e c t i o n with the Canadian Northern as l e g a l a d v i s o r v/ould i n no means c o n f l i c t with the sentiments he expressed regarding the Grand Trunk P a c i f i c when he l e f t the c a b i n e t . In support of t h i s  theory were the words o f B l a i r  i n a memorandum w r i t t e n on December 2, 1902, "The undersigned has long held the o p i n i o n  that a p o r t on Georgian Bay should  be reached by the I n t e r c o l o n i a l , 1. Borden's Autobiography, 131.  and thus a c o n n e c t i o n had  with the Canadian Northern.... The g l a d l y co-operate  Canadian Northern  with the government r a i l w a y . "  The best account  group i s that g i v e n by Dr. C D . S k e l t o n ? r e s i g n a t i o n i n these words, "The i n the e a r l i e r stages and  r e t i r e m e n t was  the Mackenzie-Mann He  explains B l a i r ' s  reason f o r thus i g n o r i n g  the u l t i m a t e reason f o r the  simply t h a t , , i n view of the c h a r a c t e r and  ambitions of some of the men f r i e n d , S i r W i l f r e d was He was  1  of the combined c o n s p i r a c y of  C o n s e r v a t i v e s , f i n a n c i a l i n t e r e s t s , and  him  who  had made Mr.  Blair  their  not prepared to c o n f i d e i n him....  determined, that there should be no P a c i f i c The  would  Scandal."  " c o n s p i r a c y " , however, i s not f u l l y  3  "proven"  u n t i l Dr. S k e l t o n presents a r e p o r t from Edward F a r r e r to Laurier.  B r i e f l y , the p l o t was  as f o l l o w s :  The moving s p i r i t s were David R u s s e l l , a w e l l - t o do promoter of S t . John and M o n t r e a l ; J . N. G r e e n s h i e l d s , a l i b e r a l lawyer of Montreal, who  was  s o l i c i t o r f o r Mackenzie  and Mann; Hugh Graham, the p r o p r i e t o r of the M o n t r e a l S t a r , and a strong opponent of the L i b e r a l p a r t y ; and A r t h u r sere.au..  T h e i r purpose,  concerned,  was  at l e a s t so f a r as the f i r s t  Ban-  two were  to secure c o n t r o l of the ne?/ government i n order  to unload bankrupt  r a i l w a y s upon i t ,  and  to secure f a t con-  t r a c t s f o r government r a i l w a y c o n s t r u c t i o n ; other r a i l w a y i n t e r e s t s of more permanent c h a r a c t e r "would be  served".^  1. Canadian Annual Review (Hereafter c a l l e d CA.R.),1904, 2. S k e l t o n , O.D., Toronto, 1921, 3. i b i d . , 190.  224.  L i f e and L e t t e r s of S i r W i l f r e d L a u r i e r , 190-216. 4. Does t h i s mean the Canadian Northern-?'  Mr. F a r r e r makes a long l i s t  of aims and o b j e c t s , i n c l u d i n g the  following: A. t o defeat the government P a c i f i c scheme.  and hang up the Grand Trunk  B. to make B l a i r I t h e M i n i s t e r of Railways under Borden. G. t o lease the I n t e r c o l o n i a l . D. t o b r i n g about the purchase by the government of the Canadian Northern l i n e s west o f Lake S u p e r i o r . E. Grand Trunk P a c i f i c was t o be suspended i n d e f i n i t e l y on the ground t h a t t h e surveys d i d not warrant the c o n s t r u c t i o n of the l i n e . . . t h e country t r a v e r s e d b e i n g too poor. The f i r s t  two steps i n the accomplishment of t h i s  p l o t were the r e s i g n a t i o n of B l a i r , who v/as to take the stump a g a i n s t the L i b e r a l Government, and the purchase of the newspaper "La P r e s s e " , which v/as t o be turned a g a i n s t the government.  The newspaper was owned by the honorable T r e f f l e  Berthiaume and was s o l d , "$10,000 out o f $240,000 through the Tories."  (coming)  Bank, o f which a l l the d i r e c t o r s were  Moreover, Berthiaume t o l d Thomas Cote", the managing-  e d i t o r , that Mackenzie and Mann were the c h i e f p a r t i e s i f not the s o l e p a r t i e s f o r whom G r e e n s h i e l d s and R u s s e l l were .acting.  Cote was f u r t h e r t o l d t o take h i s i n s t r u c t i o n s from  a Mr. M e l v i l l e o f Boston, whom he r e c o g n i z e d as an a s s o c i a t e of Mackenzie and Mann.  The f i n a l proof o f the i n f l u e n c e o f  Mackenzie and Mann i n the purchase o f t h i s newspaper i s a l e t t e r dated January 18, 1905, i n which they "admit p r o c u r i n g the m a j o r i t y o f the s t o c k .  1  As regards the B l a i r r e s i g n a t i o n , i t was s t r e s s e d 1. S k e l t o n , o p . c i t . , 209.  that R u s s e l l was to i n f l u e n c e B l a i r to do t h i s , and he i s given credit  i n the conspiracy o f so doing.  I t i s p o i n t e d out, more-  over,  that B l a i r v/as i n t e r e s t e d before  this  i n sundry  stock  market s p e c u l a t i o n s j o i n t l y with Mr. R u s s e l l . T h i s then was the " c o n s p i r a c y " , but f o r some it  f a i l e d to explode.  The newspaper was purchased and B l a i r  r e s i g n e d , but "La P r e s s e " d i d not t u r n Conservative neither attacked important  reason  the L i b e r a l  and B l a i r  p a r t y nor d i d he r e c e i v e the  appointment he was supposed t o have been promised.  What happened to cause t h i s f a i l u r e ?  Agnes c. Laut  1  gives  the only account i n her p i c t u r e s q u e , but, u n f o r t u n a t e l y , unconvincing  style.  After stating  t h a t she has f i r s t  hand  i n f o r m a t i o n t h a t Mackenzie and Mann were i n t e r e s t e d i n the purchase of "La P r e s s e " ,  (but, u n f o r t u n a t e l y , she does not  say the same about B l a i r ' s  connection),  she s t a t e s :  "La Presse".'. .was to f i r e the f i r s t guns. At the l a s t minute, when the a r t i c l e had been s e t up i n type, a l o y a l f o l l o w e r of L a u r i e r , an e d i t o r on the s t a f f , went down i n the basement t o i n k i t . I t was never printed. I t was not even p i e d . At the l a s t second i t was chopped to p i e c e s by L a u r i e r ' s f r i e n d , and Mr. B l a i r ' s open a t t a c k f a i l e d t o come o f f . That i s how, perhaps, the Canadian Northern i s not the Grand Trunk P a c i f i c . " 2  How much was B l a i r  i n v o l v e d i n the eonspiracyE  W r i t e r s such as the two we have quoted imply very deep, and thus a g e n e r a l b e l i e f  that he was i n  i s h e l d that he "resigned  i n an attempt to b e t t e r h i s own p o s i t i o n as w e l l as to wreck Laurier.  The whole s i t u a t i o n ,  however, i s one of. i n s i n u a t i o n s  1. Robert Borden i n h i s Autoblography s t a t e s , "The c o n j e c t u r e s ...as to a plot...were e n t i r e l y groundless so f a r as I was aware." p.131. 2. Laut, A.C., "The R a i l r o a d l i g h t f o r the Canadian Northwest", World's Work, May 1909, 11603.  and  i n f e r e n c e , but not o f proof.  B l a i r denied he r e c e i v e d any  money f o r h i s r e s i g n a t i o n , and no proof has been forthcoming to prove connected  otherwise.  In no p l a c e has i t been proven  that he  was  with e i t h e r the Mackenzie-Mann i n t e r e s t s or the Con-  servative party.  A d m i t t i n g the connection of Mackenzie and  Mann with the p l o t o u t l i n e d above, at no p o i n t i s i t shown that B l a i r was  connected,  except f o r an e a r l i e r  association  i n a business d e a l , with R u s s e l l . B l a i r ' s c r i t i c s have f a i l e d to prove,at any h i s c o n n e c t i o n with the Canadian Northern Railway servative party.  A study of h i s l i f e  time,  or the Con-  l e a d s to the c o n c l u s i o n  that the p o s s i b i l i t y of such a connection i s not o n l y improbable but even r i d i c u l o u s . was  Although  i n h i s youth a Tory,  f o r years the l e a d e r of the L i b e r a l p a r t y as o p p o s i t i o n  i n Nova S c o t i a , and from the years 1883 prime m i n i s t e r of that p r o v i n c e . 1896  he  to 1896  he was  actually  He r e s i g n e d that p o s i t i o n i n  to accept the p o r t f o l i o of M i n i s t e r of Railways  in Laurier  c a b i n e t , and h e l d that p o s i t i o n u n t i l h i s r e s i g n a t i o n .  As a  member e l e c t e d by St. John, i s i t not most p o s s i b l e t h a t he opposed the Grand Trunk P a c i f i c because i t would with the I n t e r c o l o n i a l , as he s t a t e d ? proposed  interfere  More important,  the  road not only f a i l e d to terminate a t St.John,  but  a c t u a l l y o f f e r e d a s e r i o u s t h r e a t to the w e l f a r e of that c i t y c i t y because of the Grand Trunk t e r m i n a l s i n Maine. be expected  Could  he  to betray h i s c o n s t i t u e n c y i n such a f l a g r a n t  manner? Furthermore,  had he been a member of a C o n s e r v a t i v e  1  p l o t , would he have w r i t t e n to L a u r i e r , " d e c l a r i n g that h i s a l l e g i a n c e to the L i b e r a l p a r t y on g e n e r a l p a r t y p o l i c y s t i l l unshaken"?  Would he have been o f f e r e d the chairmanship  1.  of the newly-formed  Railway Commission?  Would he have a c t i v e l y  supported the H o n o r a b l e L. j . Tweedie, premier o f New from 1900  was  to 1907?  Brunswick  I f he were so c l o s e l y l i n k e d with the  Canadian Northern, would he lave acted as c o u n s e l f o r the Canadian P a c i f i c  i n the s t r u g g l e with B r i t i s h Columbia  over  f r e i g h t r a t e s i n 1906? B l a i r ' s c r i t i c s have f a i l e d to prove an u l t e r i o r motive behind h i s r e s i g n a t i o n .  They have f a i l e d  t o prove h i s  connection w i t h the C o n s e r v a t i v e s , Canadian N o r t h e r n or any " f i n a n c i a l group".  interests,  Faced with t h i s l a c k of p r o o f , and  remembering h i s c o n s t i t u e n c y , we must accept B l a i r ' s reasons at t h e i r face v a l u e . With the announcement of the M i n i s t e r of Railway's r e s i g n a t i o n , the new I t was  to be b u i l t  p l a n s f o r the r a i l w a y were d i s c l o s e d .  i n two d i v i s i o n s , one e a s t of Winnipeg,  to  be b u i l t by the government and to be known as the N a t i o n a l T r a n s c o n t i n e n t a l , one west of Winnipeg Grand Trunk P a c i f i c  to be known as the  Railway.  L i t t l e more than t h i s bare o u t l i n e was  known u n t i l  1. Standard D i c t i o n a r y of Canadian Biography - a r t i c l e on p. 51 about B l a i r i s based on " p r i v a t e " knowledge". 2. Vancouver  D a i l y P r o v i n c e , Feb. 24,  1906.  3. I t w i l l be noted that P r o f e s s o r G. P. de T. Glazebrook a p p a r e n t l y agrees with t h i s c o n c l u s i o n , f o r i n h i s r e c e n t book, A H i s t o r y of T r a n a p o r t a t i o n in. Canada',' Toronto ,1938, he s t a t e s , " I t has been a s s e r t e d that B l a i r was more v f r i e n d l y to the Canadian Northern than the Grand Trunk'." (P325)  J u l y 30, when S i r -Wilfred L a u r i e r , having signed the agreement with the Grand Trunk P a c i f i c on the day b e f o r e , presented bill  to the House. I t i s d i f f i c u l t  to see why  much s e c r e c y and a l t e r a t i o n before the b i l l p a r l i a m e n t , and why session. to  t h e , . b i l l was  so  brought  late  to  i n the  Were the Grand Trunk o f f i c i a l s u n w i l l i n g to b u i l d  Moncton, or d i d they r e f u s e to accept the l o n g unproduc-  by the government?  How  Cox?""-  e x p l a n a t i o n was  Quebec u n l e s s i t was  much i n f l u e n c e had  the f o r m a t i o n of the p l a n s ?  Senator  the Grand Trunk by  There are no r e c o r d s of the reasons, and  no  given.  the r e s o l u t i o n was  What was  built  the p a r t p l a y e d  been made there was  was  was  presented-so  t i v e s t r e t c h between Winnipeg and  in  there was  the  Apparently,  great haste  once the agreement  had  to b r i n g i t to the House, f o r  not put on the order papers beforehand,  customary, and the l e a d e r of the o p p o s i t i o n was  as  not g i v e n  a copy u n t i l a f t e r the prime m i n i s t e r ' s opening  speech. "Sir.  W i l f r e d d i d not extend the c o u r t e s y of g i v i n g me  i n advance  a copy of the b i l l  which he handed a c r o s s the f l o o r of the  House at the c o n c l u s i o n of h i s s p e e c h . . . r e s e n t i n g r a t h e r s t r o n g l y what I  regarded as unusual  discourtesy, I  spoke  p at  considerable length i n reply.v  1. Senator Cox was the o u t s t a n d i n g f i n a n c i e r of Canada a t t h i s time. He was a member of the Grand Trunk and Grand Trunk P a c i f i c d i r e c t o r a t e s . He v/as p r e s i d e n t of the Canadian Bank of Commerce, and i t i s s i g n i f i c a n t t h a t , i n the words of Dr. Chester M a r t i n , " I t v/as common knowledge t h a t the Grand Trunk Railway was not p e r m i t t e d to go i n t o bankruptcy because i t would have i n j u r e d the 'Canadian Bank of Commerce." The C o n s e r v a t i v e p a r t y were so c e r t a i n of h i s i n f l u e n c e that i t based many of i t s a t t a c k s on the byword, "Cox can't wait." c f . H..C.D. , 1903 pp. 9593';,.: 10434 and 11864. 2. Borden's Autobiography,  112.  The  c o n t r a c t between the Grand Trunk P a c i f i c  and the government was signed on J u l y 2 9 , 1 9 0 3 .  Railway  The ne?/ plans  n e c e s s i t a t e d the p a s s i n g of two a c t s of p a r l i a m e n t , i n 1 9 0 3 , 1 both o f which were amended i n 1 9 0 4 .  The f i r s t  o f these i s  known as, "Ah A c t to Incorporate the Grand Trunk P a c i f i c Railway company," and the o t h e r , "An A c t r e s p e c t i n g the cons t r u c t i o n o f a N a t i o n a l T r a n s c o n t i n e n t a l Railway." are  So c l o s e l y  these connected that i t i s n e c e s s a r y to study both to  understand f u l l y The  either.  first  of these two a c t s ,  in i t s revised  form,  was presented t o the House o f Commons on J u l y 3 0 , 1 9 0 3 , and the debate  l a s t e d u n t i l August  from A p r i l 4 to May 6 ,  10.  1904.  The m o d i f i c a t i o n a were debated I t begins with a preamble  stating  t h a t , "The u n d e r t a k i n g contemplated would be f o r the g e n e r a l advantage  of Canada."  The most important men who compose the  company, a-nd who are appointed p r o v i s i o n a l d i r e c t o r s are l i s t e d as f o l l o w s :  S i r C h a r l e s R i v e r s Wilson, G.C.M.G.,C.B.;  Lord Welby, G.C.B.; John A. Glutton-Brock; Joseph  Price;  A l f r e d W. Smithers, a l l of London, England; the Honourable George A..Cox; H. M. P e l l a t t , E. R. Wood, a l l of Toronto; 2 the Honourable  Y / i l l i a m Gibson^of B e a m s v i l l e , O n t a r i o ; J . R.  Booth o f Ottawa; honourable h. B. R a i n v i l l e , C h a r l e s M. Hays, 1. S t a t u t e s 1 9 0 3 . c h . 1 2 2 . 3 Ed. V I I . " 1 9 0 3 . ch. 7 1 . 3 Ed. V I I . " 1 9 0 4 . ch. 8 0 , a Ed. V I I . « 1 9 0 4 . ch. 2 4 . 4 Ed. ¥ 1 1 . S e s s i o n a l Papers 4 Ed.VII, no. 37 - Supplemental agreement. 2.  Senator Gibson was one of. Canada's foremost c o n t r a c t o r s and was v e r y a c t i v e i n p u b l i c works. He was a l s o p r e s i d e n t o f the Bank of Hamilton.  Frank W. Morse, W i l l i a m Wainwright, a l l of M o n t r e a l ; B e l l of B e l l e v i l l e . The to  and John  1  head o f f i c e was to be i n Canada.  The company was  have a c a p i t a l stock of $45,000,000 (not $75,000,000 as i n  the f i r s t  p l a n ) , i n shares of $100, but no one was to have  more than t e n percent  of the shares  subscribed.  $20,000,000 of  t h i s stock might be i s s u e d i n p r e f e r e n t i a l stock, and the r e mainder i n common s t o c k .  When §$2',000,000 worth of stock had  heen s u b s c r i b e d , the p r o v i s i o n a l d i r e c t o r s were t o c a l l ing  of the s t o c k h o l d e r s which was to e l e c t not l e s s than  and  not more than f i f t e e n d i r e c t o r s .  a meetnine  When the a c t was amended  the s u b s c r i p t i o n t o t a l was changed to $1,000,000 which was to be p a i d i n t o a c h a r t e r e d bank along with  20$ i n t e r e s t .  To p r o t e c t  the government, one d i r e c t o r , who would have a l l the r i g h t s and p r i v i l e g e s of an o r d i n a r y d i r e c t o r , but no shares, appointed  was to be  and p a i d by i t . The  "Line of Railway" c l a u s e s t a t e d that the company  might l a y out, c o n s t r u c t , and operate f o u r f e e t , e i g h t and one-half  a r a i l w a y of a gauge  inches from Moncton through the  center of New Brunswick to a p l a c e i n the p r o v i n c e  of Quebec  near the c i t y o f Quebec, thence north-west to the bounday of O n t a r i o within, f i f t y m i l e s of Lake A b i t i b i ,  n o r t h of Lake  N i p i g o n to Winnipeg, near B a t t l e f o r d , Edmonton, and Dunvegan, or by such other more f e a s i b l e route l o c a t e d l a t e r t o Peace, P i n e , or other pass, p o i n t s on the P a c i f i c  to P o r t Simpson, Bute I n l e t , o r coast.  other  Branches were t o be b u i l t  to a  p o i n t near North Bay or i M i p i s s i n g J u n c t i o n , to Montreal, t o 1. For a Canadian company the E n g l i s h r e p r e s e n t a t i o n was very powerful.  Fort William, Port Arthur,  or any  other Canadian S o r t on Lake  S u p e r i o r , to Brandon, Regina, P r i n c e A l b e r t , and r e s p e c t i v e l y , and  Calgary  from a p o i n t i n B r i t i s h Columbia to Dawson  i n the Yukon T e r r i t o r y .  Should the N a t i o n a l  Transcontinental  be b u i l t by the government, the Grand Trunk P a c i f i c would have the r i g h t of b u i l d i n g branch l i n e s from i t . There were to be f i v e s e c t i o n s of the  railway:  E a s t e r n , Quebec, Woodland, P r a i r i e , and Mountain. i s added to the e f f e c t Prairie  that i t i s to have, "Regard that  s e c t i o n , except f o r s a t i s f a c t o r y reasons,  c o n s t r u c t e d at such a d i s t a n c e g e n e r a l l y not m i l e s from any The  way  A proviso  w i l l be shown l a t e r , but  be  l e s s than t h i r t y  other main l i n e of r a i l w a y a l r e a d y  i n which t h i s l a t t e r c l a u s e was  shall  the  constructed."  flagrantly violated  i t should be noted that i n d i s r e g a r d -  i n g t h i s p r o v i s o the r a i l w a y shows t h a t i t must have been very i n f l u e n t i a l with the L i b e r a l government, and, close to other l i n e s the r a i l w a y f a i l e d o b j e c t s - the opening of the new  country  that i n b u i l d i n g  i n one  of i t s primary-  at the  north.  Bonds, debentures, or other s e c u r i t i e s might i s s u e d to the amount of $30,000 per m i l e i n the three s e c t i o n s , $20,000 per m i l e i n the p r a i r i e s , and mountains, but might only be  These f i g u r e s are  i s s u e d i n p r o p o r t i o n to the construct  i n t e r e s t i n g because they l e a d to the  d i s c u s s i o n as to the cost of the road. expect these  eastern  $50,000 i n the  amount of r a i l w a y c o n s t r u c t e d or under c o n t r a c t to be ed.  be  Did the government  f i g u r e s to approximate the c o s t , were they set  as a maximum, or were they  simply a r b i t r a r y ?  under t h i s clause were to be a f i r s t  Bonds i s s u e d  charge upon the s e c t i o n  of the r a i l w a y might a l s o he property value.  i n r e s p e c t to<3 which they were i s s u e d . issued by  the r a i l w a y on v e s s e l s or any  t h a t i t might o b t a i n , but were not The  company a l s o had  The  being  of two  and  d o l l a r s per acre  might develop lands i n i t s v i c i n i t y .  I t was  to a i d s e t t l e r s , a c q u i r e or lease running  other  the^ r a i l w a y was w i t h i n two r a i l w a y was  and  g i v e n the power  r i g h t s over  other  c o l l e c t t o l l s , and possess shares i n  s t a t e d that i f the c o n s t r u c t i o n of  not commenced and  not  f i n i s h e d and  put  i n o p e r a t i o n w i t h i n seven  the act would be n u l l and  December 1,  $3,000,000 expended on i t .  years a f t e r the p a s s i n g of the a c t , or i f the  agreement i n 1904  void.  By a supplemental  t h i s time f o r completion was  1911.  On December 5,  made, the p r a i r i e and  i t s line,  types of o r g a n i z a t i o n s , such as mines or lumber f i r m s . A f i n a l clause  years,  i n the  or lease v e s s e l s , wharves,  such a c c e s s o r i e s along  roads, b u i l d b r i d g e s , and  their  given.  r a i l w a y might own  h o t e l s , telegraphs,  other  a u t h o r i t y to i s s u e mortgages on  land-grant feonds to the extent event of a land subsidy  to exceed  Bonds  1911  another e x t e n s i o n  s e c t i o n being allowed  Transcontinental  Aet  Railway" was  2,  1904.  1914.  debated i n the House from  There are two  1903,  and  the amendment from  I t i s c l o s e l y connected with  Grand Trunk P a c i f i c B i l l , and the same.  1912  r e s p e c t i n g the c o n s t r u c t i o n of a N a t i o n a l  September 2 u n t i l September 30, A p r i l 26 to May  was  u n t i l December 1,  the mountain s e c t i o n u n t i l December 1, "The  extended to  the d i s c u s s i o n over i t was  s e c t i o n s to t h i s b i l l ,  the much  onacealing  with the c o n s t r u c t i o n of the N a t i o n a l T r a n s c o n t i n e n t a l the  other being  an agreement between the  Kailway,  government and  the  Grand Trunk P a c i f i c Railway Company. As the N a t i o n a l T r a n s c o n t i n e n t a l Railway Act  is  concerned with the r a t i f i c a t i o n of the agreement between the government and to  study  the Grand Trunk P a c i f i c  t h i s agreement f i r s t .  Railway, i t i s b e t t e r  I t begins  by g i v i n g a  of names of the d i r e c t o r s o f the Grand Trunk P a c i f i c Company, which i s s i m i l a r t o the l i s t e x c e p t i o n of those men  who  were three  Railway  already g i v e n , with  the  were members of the government  and  who, as such, c o u l d not share These men  list  i n a c o n t r a c t with the government.  senators, Cox,  Gibson and  Rainville.  In  the l o n g preamble to the a c t i t i s s t a t e d that the reasons f o r b u i l d i n g the r a i l w a y are to b r i n g r a i l w a y f a c i l i t i e s to great areas  of Canada l a c k i n g them, to serve  expanding trade commerce, to open and to  promote i n t e r n a l and  The the two  develop the northern  zone,  to b u i l d a .road from ocean to  i n Canadian t e r r i t o r y . t r a n s c o n t i n e n t a l r a i l w a y was  d i v i s i o n s c a l l e d " E a s t e r n " and  p o i n t between Moncton and Western d i v i s i o n was  the P a c i f i c was  subdivided  E a s t e r n d i v i s i o n was  as soon as p o s s i b l e , and  to be  to be d i v i d e d i n t o  "Western"\ Winnipeg.  dividing  The  i n three s e c t i o n s .  c o n s t r u c t e d by the government  the Western d i v i s i o n by  Trunk P a c i f i c Railway Company.  The  i n t o the P r a i r i e and Mountain  s e c t i o n s , w h i l e the Eastern d i v i s i o n was The  the r a p i d l y  f o r e i g n trade, to develop commerce  through Canadian p o r t s , and ocean e n t i r e l y  the  the Grand  When the E a s t e r n d i v i s i o n  was  35. completed i t was  to be leased and  operated  by the Company f o r  f i f t y y e a r s , with the o p t i o n of renewing the l e a s e f o r f i f t y years.  T h i s would mean the c o n t r o l of a new  e n t a l r a i l w a y under one years the l e s s e e was  c o n t r o l l i n g body.  another  transcontin-  For the f i r s t  to pay only "working e x p e n d i t u r e s " and f o r  the remainder of the term three percent of the "cost of t i o n " above the  "working e x p e n d i t u r e s " .  d u r i n g the f i r s t  Should  the  years, but to  the company d i d not have to pay  earnings  less  f o r these  By. t h i s clause i t was  was  possible  the r a i l w a y to r e n t t h i s d i v i s i o n f o r ten years f o r only For the p r o t e c t i o n of the company  the s p e c i f i c a t i o n s of the E a s t e r n d i v i s i o n were to be them and  approved before The  submitted  the commencement of work.  l o c a t i o n of the Western d i v i s i o n was  cmmpleted by December 1, 1908.  The  company was  c o n s t r u c t and equip t h i s d i v i s i o n and m a i n t a i n not  three  be accumulated and added t o the cost of c o n s t r u c t i o n , and  "working e x p e n d i t u r e s " .  to  than  i f t h i s were done the i n t e r e s t of these years  i n t e r e s t to be p a i d on i t . for  construc-  three years of the r e n t a l p e r i o d . ( t h a t i s  from the e i g h t h to the t e n t h years i n c l u s i v e ) be three p e r c e n t ,  seven  to be  t o l a y out, a  standard  i n f e r i o r t o that of the main l i n e of the Grand Trunk  Railway between Montreal  and  Toronto  as f a r as p r a c t i c a b l e ,  with the e x c e p t i o n of d o u b l e - t r a c k i n g .  =The company was  d e p o s i t w i t h i n t h i r t y days the sum  o f $5,000,000 as  on which the government was  i n t e r e s t at three  T h i s i n t e r e s t was Se.ss. Papers 37  to pay  waived by the Grand Trunk P a c i f i c . ( a ) , 1904.  to  security, percent. 1  L e t t e r Hays .to F i e l d i n g l  The  36. deposit was to be r e t u r n e d when the Western l i n e was completed, and had been s u p p l i e d with r o l l i n g stock to $15,000,000, even i f the E a s t e r n d i v i s i o n should not be completed. the  company would r e s u l t  D e f a u l t of  i n f o r f e i t u r e of the d e p o s i t .  Because of the terms of l e a s e , i n which the company was to pay only working expenditure f o r seven years and i n t e r e s t on the cost of c o n s t r u c t i o n f o r the remainder of the term, these two phrases "working e x p e n d i t u r e " and "cost of c o n s t r u c t i o n " were d e f i n e d f u l l y .  On the q u e s t i o n of duty,  i t was s t a t e d that no cost was to be added i f the government imported the goods, but i t would be charged t o c o n t r a c t o r s .  The  company agreed to supply modern and complete r o l l i n g stock t o the  Western d i v i s i o n to the value o f $15,000,000 and to the  E a s t e r n d i v i s i o n to the value of $5,000,000.  I t a l s o guaranteed  proper maintenance of the E a s t e r n s e c t i o n d u r i n g r e n t a l  period.  The c a p i t a l stock of the company was s e t a t $45,000,000 of which not more than $20,000°,000 was p r e f e r r e d and not l e s s than $25,000,000 was common.  The Grand Trunk Railway  was t o hold a l l the common stock except f o r 1,000 shares which were to be h e l d by the d i r e c t o r s .  In 1904 t h i s c l a u s e was  amended to permit the Grand Trunk' Railway t o dispose o f the stock "provided i t s h a l l continue t o h o l d . . . a m a j o r i t y o f the  said  stock."  T h i s was never done, and the Grand Trunk  held a l l the stock f o r which i t p a i d a "nominal sum". The government  1  guaranteed p r i n c i p a l and i n t e r e s t  of the bonds i s s u e d by the company up to 75$ o f the amount of 1. Railway i n q u i r y Commission 1917, xxv.  c o n s t r u c t i o n i n each d i v i s i o n , but the p r i n c i p a l  amount  was  not to be i n excess of $13,000 per m i l e on the p r a i r i e  section,  and $30,000 per mile on the mountain s e c t i o n .  the  company attempted was  to have the r e s t r i c t i o n s  In 1904  removed but  this  done only i n the mountain s e c t i o n , where the government  set no l i m i t on the t o t a l c o s t . ible for interest  The company was  on the bonds i n the p r a i r i e  t h e i r date of i s s u e , and the government was  to be  respons-  s e c t i o n from  to pay the  interest  on the bonds of the mountain s e c t i o n f o r seven years a t not over three p e r c e n t .  The g>vernment agreed to extend t h i s f o r  three y e a r s , but a l l i n t e r e s t capitalized  and  d u r i n g t h i s p e r i o d was  i n t e r e s t p a i d on i t by the company f o r the  ensuing f o r t y y e a r s .  The amended agreement s t a t e d that the  company was  to be allowed f i v e years of g r a c e , and  t r u s t e e was  to be appointed who  and share the p r o f i t s held.  The  then a  would take care of the road  i n p r o p o r t i o n to the amount of bonds  second s e r i e s  were guaranteed  t o be  of bonds, that i s the  remainder,  by the Grand Trunk P a c i f i c Company.  F i n a l c l a u s e s of the agreement s t a t e that a l l s u p p l i e s f o r the Western d i v i s i o n Canadian  s h a l l be obtained  from  producers, i f p o s s i b l e , and that a l l f r e i g h t  s p e c i f i c a l l y routed s h a l l be c a r r i e d  entirely  in  not  Canadian  t e r r i t o r y and to a Canadian p o r t . The main body of the N a t i o n a l T r a n s c o n t i n e n t a l B i l l began with a summary o f the agreement w i t h the Grand Trunk P a c i f i c Railway, r a t i f i e d  the agreement, o u t l i n e d  the  types of bonds, and gave the power to the GrandTTrunk Railway  to  acquire, s e l l ,  P a c i f i c Kailway. set  and guarantee the bonds of the Grand  Trunk  The Grand Trunk Railway's o b l i g a t i o n s were  out as the guaranteeing of the remainder o f the' Grand  Trunk  P a c i f i c bonds a f t e r the government have guaranteed 75$, and the a c q u i r i n g of $24,900,000 common stock i n the o t h e r company. The E a s t e r n d i v i s i o n , which was T r a n s c o n t i n e n t a l Railway, was  known as the N a t i o n a l  to be b u i l t by the government.  The work o f c o n s t r u c t i o n and o p e r a t i o n was to be i n the hands of  a commission appointed by the government.  At f i r s t  were three commissioners, but t h i s number was  there  increased i n  1904 to f o u r , one each from the M a r i t l m e s , Quebec, O n t a r i o , and  the West.  They were to be appointed by the Governor-  General i n O o u n c i l , which group a l s o appointed a s e c r e t a r y and c h i e f e n g i n e e r . by the commission, could h o l d an o f f i c e  A l l other appointments were to be made N O member o f the Canadian p a r l i a m e n t with emolument under the  Its  power was  to end when the Western  was  complete and open f o r t r a f f i c .  1  commission.  d i v i s i o n of the r a i l w a y The commissioners were to  o b t a i n funds f o r the p r o j e c t by i s s u i n g debentures to the M i n i s t e r of Finance, which would be r e p a y a b l e f i f t y y e a r s a f t e r J u l y 1, 1903, with i n t e r e s t a t three p e r c e n t p a i d semiannually.  The  i n t e r e s t on the government l o a n f o r t h i s r a i l w a y  was not to exceed three and o n e - h a l f p e r c e n t . The Grand Trunk P a c i f i c B i l l was time on August  read the  third  10, 1903, and the N a t i o n a l T r a n s c o n t i n e n t a l  1. I t was b e l i e v e d that by that time the N a t i o n a l T r a n s c o n t i n e n t a l Railway would be completed, but t h i s proved to be an e r r o r .  B i l l on August  30.  They both r e c e i v e d the  assent on October 24 of that year. b i l l s were passed f i n a l l y  on May  Governor-General's  The amendments to both  27, 1904.  The d i s c u s s i o n i n  p a r l i a m e n t , e s p e c i a l l y on the N a t i o n a l T r a n s c o n t i n e n t a l was  long and verbose.  Bill  Much i r r e l e v a n t m a t e r i a l was i n t r o d u c e d ,  and much r e p e t i t i o n was  included.  The debate d i v i d e d  itself  i n t o three main s e c t i o n s , an a l t e r n a t i v e p o l i c y o f f e r e d by R. A. Borden,  Mr.  the l e a d e r of the o p p o s i t i o n ; c r i t i c i s m s of the  government p o l i c y ; and the answers which the L i b e r a l p a r t y presented to t h e i r  critics.  The a l t e r n a t i v e p o l i c y by Mr. Borden"'' suggested that the I n t e r c o l o n i a l Railway should be extended  to Georgian  Bay ay the a c q u i s i t i o n of the Canada A t l a n t i c Railway and b u i l d i n g of any necessary l i n k s .  the  This.would keep an a l l -  Canadian c o n n e c t i o n from east to west, would make, the I n t e r c o l o n i a l a p r o f i t - m a k i n g road, and would mark a p r o g r e s s i v e step i n government ownership. was  As the Canadian P a c i f i c  c a r r y i n g o n l y about o n e - f i f t h of i t s p o s s i b l e  capacity  from North Bay t o F o r t W i l l i a m t h i s s e c t i o n should be by the government and  Railway  purchased  j o i n e d to the i n t e r c o l o n i a l , w i t h running  r i g h t s f o r the f o u r great Canadian r o a d s .  T h i s would save the  c o n s t r u c t i o n of another l i n e through the d i f f i c u l t  and  un-  p r o d u c t i v e s e c t i o n n o r t h of the Great Lakes, which c o u l d not H-.C.D. , August  1  18, 1903.  pp.8961 - 9006..  2. Borden s t a t e s the Canadian P a c i f i c had agreed to s e l l . Borden's Autobiography, 114, f o o t n o t e .  40.  hope t o compete with the water t r a n s p o r t of g r a i n s , o f f e r an a l l - y e a r o u t l e t f o r the p r a i r i e s .  1  and would  To r e l i e v e the  c o n g e s t i o n between Winnipeg and Fort W i l l i a m the government should give a s s i s t a n c e to both the Canadian P a c i f i c and Canadian Northern Railways towards the improvement c o n d i t i o n that the government  of t h e i r l i n e s , on  c o n t r o l t h e i r r a t e s , and running To  r i g h t s be g i v e n t o the i n t e r c o l o n i a l and Crand Trunk.  complete the t r a n s c o n t i n e n t a l l i n e a s s i s t a n c e should be g i v e n to the Grand Trunk Railway to b u i l d a l i n e , which would extend f a r n o r t h of the proposed Grand Trunk P a c i f i c which the government  to Edmonton, on  should have complete c o n t r o l of r a t e s ,  and from there the Canadian Northern and Grand Trunk P a c i f i c were to amalgamate to b u i l d one l i n e through B r i t i s h Combined  Columbia.  with t h i s scheme was to be a thorough r e b u i l d i n g  and equipping of the Georgian Bay and A t l a n t i c p o r t s .  The value  of these p r o p o s a l s , as Borden p o i n t e d out, would be the development r a t h e r than the t h r o t t l i n g of the the use of l a k e s and i n l a n d waterways  intercolonial,  as a complement of the  r a i l w a y system, the opening of new country, e s p e c i a l l y i n the p r o d u c t i v e west, and an a l l - C a n a d i a n road which d i d not o f f e r c o m p e t i t i o n to those a l r e a d y e x i s t i n g , as w e l l as an immense saving i n the d u p l i c a t i o n of l i n e  through the then unproduc-  t i v e Canadian S h i e l d . Borden's f o l l o w e r s added l i t t l e 1.  e l s e to h i s p l a n ,  1 9 0 3 , p. 7 7 1 0 . I t i s shown that the cost from P o r t A r t h u r to M o n t r e a l was 1 2 cents by the Canadian P a c i f i c and 6 cents by boat f o r each b u s h e l . In f a i r n e s s to Borden i t must be noted that he s t r e s s e d the r a i l w a y as an ALL-YEAR route and that the i d e a of only one r a i l w a y n o r t h of the Great Lakes would have probably been sound. Note H.0.D.  other than to p o i n t out that the government's scheme o f f e r e d s e r i o u s c o m p e t i t i o n to the canal system of Canada, which had cost the country §7,000,000.  The  government, l e d by  Clifford  S i f t o n , condemned the p l a n because i t would c o n f i n e the Grand Trunk Railway  to two  p r o v i n c e s and would not a f f e c t i t s  American o u t l e t , would leave 1200  m i l e s of n o r t h e r n O n t a r i o  and  Quebec unopened, i n v o l v e d a longer route than the government project,  1  would m i s l e a d  the western farmers by s t a t i n g that  they were g e t t i n g a government road, and would cost much more than the o r i g i n a l p l a n . noted  that i t was  p a r t y who,  In f a i r n e s s to t h i s p l a n i t must be  never considered s e r i o u s l y by the  v/ith t h e i r m a j o r i t y , r u t h l e s s l y pushed the  scheme through The  original  the House. c h i e f o p p o s i t i o n to the b i l l s as presented  the government arose from the haste and p l a n , the questionable need of another way,  Liberal  incompleteness  by  o f the  transcontinental r a i l -  the i n a b i l i t y to give eiien an approximate estimate  L a u r i e r ' s r e p l y , "I b e l i e v e . . . r a i I w a y s can compete f u l l y with water r o u t e s . " p.10542.  of  success-  1. A pamphlet, The Grand Trunk P a c i f i c Railway, no p r i n t e r , no date, i s s u e d by the L i b e r a l p a r t y showed the f o l l o w i n g Government scheme: Winnipeg - Quebec 1,475 m i l e s Quebec - Moncton 400 " Moncton - H a l i f a x 186 " Total 2,061 m i l e s Borden scheme: Winnipeg - F o r t W i l l i a m (C.P.R.) 426 m i l e s Ft. William Sudbury (C.P.R.) 555 » Sudbury-Scotia J e t ( t o be b u i l t ) 105 " S c o t i a J e t . - Coteau (C.A.R.) 294 " .Coteau - Montreal (G.T.R.) 39 " Montreal- H a l i f a x (I.C.R.) 837 " Total 2,256 m i l e s  the c o s t , the competition  i t o f f e r e d to the I n t e r c o l o n i a l ,  the  i g n o r i n g of the waterways, the dubious i n f l u e n c e of the Grand Trunk Railway, and  the c o s t to the government.  Later devel-  opments v/ere to show that each c r i t i c i s m v/as j u s t i f i e d , the L i b e r a l p a r t y r e f u s e d to be  but  swayed from i t s o r i g i n a l  pro-  ject. The shown.  haste  I t seemed i s i f the government had  l i n e a c r o s s the map influence, out  with which the p l a n s were made has  1  of Canada, with an eye  and determined to b u i l d  the e n t i r e debate there was  as to the r o u t e , type grades and  drawn a  to p o l i t i c a l  the road t h e r e .  a s u r p r i s i n g ignorance  The r e s u l t  b r i d g e s , passes,  and  shown  such  i s that the estimated  expected r e s u l t s are a l s o i n d e f i n i t e , and  S e c t i o n w i t h i n ten m i l l i o n s . 2 c h a l l e n g e , " says Borden.  costs  None of them accepted  Eastern the  True, the Canadian P a c i f i c  Railway  i n j u s t such a haphazard way  but  i t had had  ' d e f i n i t e s e c t i o n o f * t h e west as a terminus,  and  one  primary o b j e c t s was need f o r haste  to j o i n t h i s t o Canada.  i n the b u i l d i n g o f the new  Was  the suddenness with which they  the b i l l  to the need of a r a i l w a y  r i d i c u l e s this idea. 1. I n f r a , Chapter  "The  2. Borden's Autobiography, p.  173.  such  The presented  immediately. Borden  t r a n s p o r t a t i o n q u e s t i o n had  IV.  a  of i t s  there  railway?  L i b e r a l s explained to be due  and  therefore diverse.  "T challenged any m i n i s t e r to s t a t e the cost of the  had been b u i l t  Through-  of c o u n t r y t t o be c r o s s e d , p o s s i b l e  curves, necessary  essential facts.  simply  been  been  with them seven y e a r s , " he they had  states.  d e l i b e r a t e l y d e c l a r e d and  " A f t e r long  consideration  announced that no  c o n c l u s i o n c o u l d be reached without a thorough and s i v e i n q u i r y i n t o the whole q u e s t i o n . and  no r e p o r t had been made.  v i t a l and  e s s e n t i a l , the  r e p o r t were a b s o l u t e l y  comprehen-  F i v e months had  passed  Although h&B«FiQ.ded as a b s o l u t e l y  commission and disregarded."  A f t e r the b i l l was  such  i t s i n q u i r y and  1  passed s i x months elapsed  before  the government began i t s surveys. F o r t u n a t e l y the grades curves which i t had first  promised were not i m p o s s i b l e ,  these were not by any means a c e r t a i n t y .  but  Later  and  at events  would seem to show that the r e a s o n f o r haste was  due  pressure  excellence  of the Grand Trunk o f f i c i a l s and  to the  to  the  of the r a i l w a y as an e l e c t i o n p l a t f o r m . It was  i s s u r p r i s i n g how  f o r t h i s road before  little  a c t u a l demand  the Grand Trunk Railway and  L i b e r a l p a r t y announced i t . Manitoba was  probably  there the  more  i n t e r e s t e d i n the development of the Canadian N o r t h e r n and routes  i n t o the U n i t e d  States.  The  North-west T e r r i t o r i e s  were f i g h t i n g f o r p r o v i n c i a l s t a t u s , and,  as f a r as r a i l w a y s  were concerned, were watching the growth of the Northern, which was  c l o s e r and  the  -  Canadian  seemingly more r e a l .  British g  Columbia and  was  feadcwatchedefive  governments i n o f f i c e i n f i v e  i n a p e r i o d of government i n e f f i c i e n c y ,  and i n s e c u r i t y . On January 5, 1903, 1. Borden's Autobiography, 113.  years,  corruption,  Premier E. G. P r i o r of  2. Premiers J . H. Turner, C. A. Semlin, J . M a r t i n , J . Dunsmuir, E. G. P r i o r .  B r i t i s h Columbia s t a t e d , "I do not approve of g i v i n g a s s i s t a n c e to the scheme to run a r a i l w a y t o P o r t Simpson, thus b u i l d i n g up a r i v a l  c i t y to Vancouver, V i c t o r i a , and  As l a t e as August 11,  1903,  p u b l i c o p i n i o n soon turned  a l scheme, and  demand t h i s  i n f a v o r of the  even Premier P r i o r , who  transcontinent-  probably  saw  a l a t e r meeting with L a u r i e r and Hays i s r e p o r t e d to a i d the r a i l w a y , b u t ,  f i n a n c i a l s t a t e of the p r o v i n c e ,  evid-  legislation."  s t a t e d that he f a v o r e d a r a i l w a y to open the n o r t h ,  promised l a n d grants  cities."  B l a i r s t a t e d , "There i s no  ence that the people of t h i s country But  other coast  the  trend,  and  3  to have  because of  no money.^  at  the  In s p i t e of the  powerful o p p o s i t i o n , e f f e c t i v e propaganda had  aroused enthus5  iasm f o r the r a i l w a y before the need of the r a i l w a y people; i t was How  the year had  that presented  the route and  a problem to  much would the r a i l w a y c o s t ?  T r a n s c o n t i n e n t a l Railway, and  percent  interest.  r e n t , but a f t e r t h i s was  to pay  f o r the  to do t h i s could  For  seven years  percent.  1. Vancouver D a i l y P r o v i n c e ,  January 5,  2. H.C.D., August 11,  8419.  cont-  National  i s s u e bonds up to three  i t received  to be p a i d three percent  of c o n s t r u c t i o n , a l o s s of one-half  1903,  not  the  Under the  to $30,000 per m i l e , on which i t c o u l d pay  one-half  I t was  cost.  r a c t s agreed upon the government was  up  passed.  no  of the  It paid  and  cost  the  1903.  3. Vancouver D a i l y P r o v i n c e , January 30, 1903,report o f meeting 4 . i b i d . , February 2, 1903. • » 5.The d i s c o n t e n t f o l l o w i n g the A l a s k a Award of 1903 must have i n f l u e n c e d p u b l i c o p i n i o n i n Canada f o r a t r a n s c o n t i n e n t a l to connect the north country more s e c u r e l y to the Dominion. ( a t  Y a l e  2  i n t e r e s t on t h e c o s t o f t h e M o u n t a i n s e c t i o n f o r s e v e n y e a r s . I t g u a r a n t e e d 75$ o f t h e G r a n d T r u n k P a c i f i c c o n d i t i o n that the P r a i r i e $13,000 p e r m i l e .  mean t h a t t h e g o v e r n m e n t  not supposed t o  w o u l d pay a n y o f t h e m .  The G r a n d T r u n k P a c i f i c  R a i l w a y was  t o have  c a p i t a l o f $45,000,000.  I t p a i d r e n t on t h e E a s t e r n  when i t was b u i l t ,  seven y e a r s .  years' interest  after  on t h e b o n d s  none on t h e P r a i r i e .  I t received  a  section,  seven  f o r the Mountain s e c t i o n , but  The g o v e r n m e n t , h o w e v e r , g u a r a n t e e d  75$ o n t h e b o n d s o f b o t h s e c t i o n s , w i t h t h e p r o v i s o t h a t Prairie  s e c t i o n must n o t e x c e e d $13,000 p e r m i l e .  y e a r s w h i c h t h e government began a f t e r  on  s e c t i o n d i d n o t c o s t more t h a n  G u a r a n t e e i n g bonds was  1  R a i l w a y bonds,  The  the  seven  g r a n t e d on the M o u n t a i n s e c t i o n  t h e r o a d was c o m p l e t e d . The  of the bonds  Grand Trunk K a i l w a y g u a r a n t e e d t h e r e m a i n d e r  i s s u e d by t h e Grand Trunk P a c i f i c ,  w h i c h i t was  t h e n e s t i m a t e d m i g h t be a s h i g h a s $ 2 0 , 0 0 0 , 0 0 0 on t h e P r a i r i e and $ 5 0 , 0 0 0 , 0 0 0 on t h e M o u n t a i n s e c t i o n .  In return i t re-  c e i v e d a p p r o x i m a t e l y $ 2 5 , 0 0 0 , 0 0 0 o f common s t o c k i n t h e Grand Trunk P a c i f i c ,  and no p r o v i s o was made t o s e t t h e p r i c e  i t must p a y f o r t h i s . not r e a l i z e  the f u l l par v a l u e .  d i s p o s e o f some o f t h i s all  Laurier admitted 2  that t h i s stock would  The G r a n d T r u n k  could  s t o c k b u t must h o l d t h e m a j o r i t y a t  times. It  c a n be s e e n t h a t t h i s a g r e e m e n t  l e f t much s c o p e  1. The C a n a d i a n N o r t h e r n on t h e p r a i r i e s was e s t i m a t e d a t b e t w e e n $18,000 and $19,000 p e r m i l e a t t h i s t i m e . H.C.D. 1 9 0 3 , 5143 and 7 8 4 4 . 2. - I b i d . , 5 1 5 9 .  i n i n t e r p r e t a t i o n , and the c o n j e c t u r e s r a i l w a y were very d i v e r s e .  at the cost of the  Mr. Borden s t a t e d that i t would  cost the government between $155,000,000 and §171,OOO,OOO, depending on the p r i c e f o r which the bonds s o l d . L a u r i e r estimated  1  S i r Wilfred  only $13,000,000 which by a p e c u l i a r c o i n c i -  dence e q u a l l e d the n a t i o n a l s u r p l u s of 1903, and t h e r e f o r e i t could be b u i l t estimated  without the people paying  cost was obtained  by reckoning  government v/as to pay f o r seven years and the N a t i o n a l T r a n s c o n t i n e n t a l . was the o n l y a c t u a l subsidy  one d o l l a r .  2  This  the i n t e r e s t which the  on the Mountain s e c t i o n L a u r i e r s t a t e d that  the r a i l w a y would r e c e i v e .  i n g of the cost of the t r a n s c o n t i n e n t a l he says, t o t a l of the money to be paid by the government  "The  this Speak-  sum  f o r the  construe  t i o n o f that l i n e of r a i l w a y from Moncton to the P a c i f i c be...$13,000,000, and not a cent more." i n the estimates  was the r e s u l t  3  T h i s wide d i f f e r e n c e  of i n s u f f i c i e n t  d i f f e r e n t d e f i n i t i o n s of "cost to the people". National Transcontinental Borden estimated  4  will  i t is sufficient  date, and the On the  to s t a t e that  the cost at between $117,750,000 and  $130,000,000 and A c t i n g - M i n i s t e r of Hallways, Mr. F i e l d i n g , 1. G.A.R. , 1904,  75.  2. H. C. D. 1903, 7691j see a l s o F i e l d i n g estimate 5.ibid.,  p.8588.  7691.  4.C.A.R. 1904, 96. . George T a y l o r as f o r each f a m i l y , and $©00,000 f o r  Note a l s o the estimate on page 97 by $25 f o r each i n d i v i d u a l i n Canada, $125 $1500 each v o t e r , $100,000 each township, each c o n s t i t u e n c y .  at $71,156,975, ^](inotc i n c l u d i n g |2,384,246 f o r the Quebec b r i d g e ) , and the t o t a l a c t u a l cost was $159,881,197, which i s almost three  times the government's  estimate.  On the Grand Trunk P a c i f i c proper, F i e l d i n g estimated that the P r a i r i e  s e c t i o n would cost  the government  nothing,  while the Mountain s e c t i o n would cost only the i n t e r e s t f o r seven years,  a t o t a l of $2,334,575.  the P r a i r i e  Borden estimated the cost of  s e c t i o n might be as h i g h as $13,060,000, and the  Mountain s e c t i o n $28,000,000, f o r a t o t a l o f $41,060,000. • T h i s d i f f e r e n c e i s due t o the f a c t that Borden i n c l u d e d the cost of the government figure  guarantees.  i n the o p p o s i t i o n ' s  Wot the l e a s t important  statement was the d i f f e r e n c e i n 2  i n t e r e s t of one-half  percent,  v/hich amounted to $18,850,000.  At the same time that S i r W i l f r e d L a u r i e r was p r o m i s i n g Canada a t r a n s c o n t i n e n t a l r a i l w a y Charles  Rivers-Wilson,  president  was p a c i f y i n g the s t o c k h o l d e r s  f o r $13,000,000,  of the Grand Trunk Railv/ay,  by d e c l a r i n g t h a t  their  guarantee was only f o r £2,968,000, p l u s i n t e r e s t amounting to £118,720, which was not to accrue u n t i l e i g h t years a f t e r the b e g i n n i n g of the c o n t r a c t ,  and Charles M. Hays was showing  the same group that with t h i s e i g h t years, years without i n t e r e s t , p l u s  p l u s the seven  the three y e a r s e x t e n s i o n , the  Grand Trunk P a c i f i c would not become a burden on the Grand Trunk f o r eighteen  years.  One of the most b i t t e r l y fought d i s c u s s i o n s 1. H.C.D., 1903, 3626. « G>A*R. 1904, 96. 3. i b i d . , 71.  2  centered  48.  on the i n t e r c o l o n i a l Railway. I n t e r c o l o n i a l was  I t was  p o i n t e d out that the  p r i m a r i l y a m i l i t a r y road, and had never been  intended as the f i n a l l i n k of a t r a n s c o n t i n e n t a l . True, i t was  an a l l - C a n a d i a n road, as opposed to the Canadian P a c i f i c ,  which c r o s s e d Maine, and gave the L i b e r a l s the o p p o r t u n i t y to draw the red h e r r i n g of "bonding p r i v i l e g e " support of the new approximately  road, but the proposed new  180 m i l e s s h o r t e r .  1  i n their  road was  also  There would be l i t t l e  f o r c o m p e t i t i o n , f o r only at the t e r m i n i were the two  cause  roads  w i t h i n t h i r t y m i l e s of each other. The p l a n was  i n f l u e n c e of the Grand Trunk Railway  always a source of d i s t r u s t and f e a r .  The  i n the  directors  of the two companies were much the same, so t h a t i t was s a i d that the names of the two The o l d e r r a i l w a y was andntherefore  often  r a i l w a y s were synonomous.  to hold a c o n t r o l l i n g p a r t of the  to c o n t r o l the other's p o l i c i e s .  new  2  stock,  In the two  or  three years f o l l o w i n g the g r a n t i n g of the c h a r t e r these f e a r s were to be  accentuated. Lt was  obvious from the f i r s t  c o n t i n e n t a l scheme was  that the new  Trans-  an attempt to b e t t e r c o n d i t i o n s f o r  1. The bonding p r i v i l e g e had- become a source o f much d i s c u s s i o n since a l e t t e r about t h i s time from S i r Andrew Carnegie to the London Times t h r e a t e n i n g i t s withdrawal i f the . p o l i c y of i n t e r - i m p e r i a l trade preference was continued. C l e v e l a n d had a l s o threatened t h i s i n the United States e l e c t i o n s of 1888. During the Great War the Canadian P a c i f i c was f o r c e d to route goods through the other l i n e s f o r a short time. See S k e l t o n , O.P., L i f e and L e t t e r s of S i r W i l f r e d L a u r i e r , I I , 192. 2'. The Grand Trunk d i r e c t o r s i n December 1903 i n c l u d e d S i r C h a r l e s R i v e r s - W i l s o n , A. W. Smithers, J . A. Glutton-Brock, Joseph P r i c e and Lord Welby.  the Grand Trunk Railway. was  From i t s v e r y i n c e p t i o n the new  line  considered as a f e e d e r f o r the e s t a b l i s h e d parent company.  The requirements  of the government had f o r c e d the r a i l w a y to  change i t s o r i g i n a l " p l a n s , but when C h a r l e s R i v e r s - W i l s o n s t a t e d that the p l a n meant a p a r t n e r s h i p with the government, the remark was  not r e c e i v e d with favor i n Canada.  The  connection of a l a r g e b u s i n e s s venture such as t h i s with the government i s bound to arouse doubt among the masses of the people as to i t s value and honesty, e s p e c i a l l y when such a company i s f e l t  to be i n t e r e s t e d  i n the U n i t e d S t a t e s .  The trend of the Grand Trunk towards the U n i t e d S t a t e s i s very obvious. The  C h a r l e s M. Hays was  t e r m i n i of the r a i l w a y were the A t l a n t i c  an  American.  seaboard of  the U n i t e d S t a t e s , e s p e c i a l l y a t P o r t l a n d , Maine, where the company had spent some $20,000,000 on f a c i l i t i e s , Illinois,  on Lake M i c h i g a n .  and  Chicago,  D u r i n g the e a r l y p a r t of the  surveys repeated p e t i t i o n s were sent to the government comp l a i n i n g of the number o f a l i e n s  (that i s , Americans) b e i n g  employed b y the Grand Trunk P a c i f i c , and  i n s p i t e of the r e p o r t  of Mr. Hays that 96$ were e i t h e r Canadian  or B r i t i s h  citizens,  the r e p o r t of Judge Winchester,  who  was  gate the charge, s t a t e s , "There  was  no earnest endeavor made  to  o b t a i n Canadian  engineers...had  appointed to i n v e s t i -  such an e f f o r t been made  there would have been no d i f f i c u l t y i n obtainingea s u f f i c i e n t number capable....There to  was,  however, a very earnest d e s i r e  o b t a i n American engineers f o r the work and  i s some cases  a p p l i c a t i o n s were made to the heads of other r a i l w a y  com-  panies  to r e l i e v e men f o r the purpose."  Grand Trunk P a c i f i c  I n f a i r n e s s to the  i t must be admitted that i n some s e c t i o n s ,  such as the Skeena R i v e r , Canadian engineers  were employed,  but throughout the h i s t o r y of the r a i l w a y the complaints are so numerous that i t must be accepted i t y o f the higher  as a f a c t  t h a t the major-  o f f i c i a l s were Americans.  I t was p o i n t e d out that the proposed route  of the  Grand Trunk P a c i f i c would b r i n g g r a i n from between 400 and 600 m i l e s n o r t h o f the American border to Winnipeg, which was o n l y 45 m i l e s away,  From there  o b t a i n f a c i l i t i e s to the United Grand Trunk terminus.at  Chicago,  i t was a s i n g l e step to  States and from there  to the  i n 1906 an appasent move  i n t h i s d i r e c t i o n was taken with the o b t a i n i n g o f c o n t r o l of the Wisconsin C e n t r a l Railway by the Grand T r u n k .  2  There  was no reason why, at the end of f i f t y years , the Grand Trunk P a c i f i c should Transcontinental  not permit i t s lease on the N a t i o n a l  to l a p s e , and d i v e r t I t s t r a f f i c through the  American channels. In 1909 occurred  another i n c i d e n t which  strength-?  ened the b e l i e f o f some people i n the c o m p l i c i t y of the Grand Trunk o f f i c i a l s with U n i t e d  States i n t e r e s t s .  r e s i g n a t i o n of v i c e - p r e s i d e n t F. W« Morse.  T h i s was t h e  I t was s t a t e d  that he was f o r c e d t o r e s i g n because, "The L i b e r a l caught him ' g r a f t i n g ' and that h i s ' g r a f t ' t o t a l l e d  party $2,000,000.  I t was f u r t h e r i m p l i e d that most of t h i s money went to 1. S e s s i o n a l Paper, 36 ( a ) , 1905, 64. 2. H.C.D.., June 12, 1906, 5137.  51. Americans.'''  Although  there i s no proof to s u b s t a n t i a t e t h i s  a c c u s a t i o n , and t h e r e f o r e i t cannot be  considered M e ,  presents an i n t e r e s t i n g contemporary b e l i e f  it  i n the i n f l u e n c e of  Americans on the company. I t has been shown t h a t the o r i g i n a l plans of the Grand Trunk P a c i f i c had undergone s e v e r a l changes when they were presented not agreeable  to the government.  The proposed c o n t r a c t  to the r a i l w a y and was  r e v i s e d i n 1904.  was  In  p r o p o s i n g the a l t e r a t i o n s to t h i s agreement, C h a r l e s R i v e r s Wilson wrote to L a u r i e r as f o l l o w s : I have been confronted with many d i f f i c u l t i e s i n b r i n g i n g my c o l l e a g u e s to accept the view wMch I e n t e r t a i n on the g e n e r a l m e r i t s of the scheme.... I t has always seemed to me that the Government of Canada and the Grand Trunk Railway Company, b e i n g i n p o i n t of f a c t p a r t n e r s i n the e n t e r p r i s e , . . . the former a c t u a t e d by c o n s i d e r a t i o n of N a t i o n a l p o l i c y , the l a t t e r by the n e c e s s i t y f o r s e c u r i n g I t s share i n the growing p r o s p e r i t y of the north-west....too l a r g e a p o r t i o n has been imposed on the Grand Trunk Company....I t h i n k t h i s s h i f t i n g o f the balance was caused by the extreme, and I must say, i n many r e s p e c t s u n f a i r , o p p o s i t i o n met with i n the House. The o b j e c t of the amendment i s to a l l a y any p o s s i b l e apprehensions of our s h a r e h o l d e r s . 2  The  f e e l i n g o f the people as a whole was  that the  Grand Trunk r e c e i v e d the b e t t e r p a r t o f the b a r g a i n , i n that they had  l e f t the unproductive  area n o r t h of Lake S u p e r i o r  to the government, while the Grand Trunk P a c i f i c drew the mediate t r a f f i c  of the west.  The  Grand Trunk had  twice  before  r e f u s e d to b u i l d the s e c t i o n n o r t h of Lake S u p e r i o r before Canadian P a c i f i c undertook to do i t , 1. P r i n c e Rupert Empire, A p r i l 24,  3  and  seemed to be  im-  the  attempt-  1909.  2. S e s s i o n a l Paper 57 ( a ) , 1904. 3. Makers of Canada S e r i e s X, "Lord S t r a t h c o n a " bp John McNaughton, 1926, p.302.  i n g to elude i t a g a i n , e s p e c i a l l y i n view of the f a c t was  reported that  linei  1  the Canadian P a c i f i c l o s t  that i t  $1,000,000 on i t s  I t was f e a r e d , with good r e a s o n , that the Grand Trunk  P a c i f i c had no i n t e n t i o n of u s i n g t h i s l i n e , and t h i s  belief  was accentuated on October 1, 1905, when the Grand Trunk Railway purchased the Canada A t l a n t i c  Railway.  With t h i s they  a l s o gained the Canada A t l a n t i c Transport company, which operated a f l e e t  of f r e i g h t steamers on the Great Lakes, and  a f f o r d e d a connection between the Grand Trunk and Grand Trunk P a c i f i c without the use of the N a t i o n a l T r a n s c o n t i n e n t a l , and by ammuch more d i r e c t r o u t e .  T h i s was  the r a i l w a y ,  incident-  a l l y , which Borden had suggested the government should purchase, but which had been considered too e x p e n s i v e . In b r i e f there are three u n d e r l y i n g f a c t o r s which i n f l u e n c e d the b u i l d i n g o f the Grand Trunk P a c i f i c Railway, and each had a major share i n c a u s i n g not o n l y the c o n s t r u c t i o n but a l s o the u l t i m a t e f a i l u r e  of the r o a d .  These three are  the optiraism of the times, the n e c e s s i t y o f the Grand Trunk Railway to reach the West, and the i n f l u e n c e o f p o l i t i c s and vested i n t e r e s t s . is  to be f e l t  Throughout the e n t i r e e a r l y  negotiations  the pressure o f s t r o n g i n f l u e n c e s , which are  apparent only i n a fe?/ s c a t t e r e d p l a c e s .  The  indefensible  e x t e n s i o n eastward to Quebec and Moncton was p u r e l y a p o l i t i c a l gesture.  The p r o j e c t was on s e v e r a l occasions a f t e r  this  r e f e r r e d to as L a u r i e r ' s "$200,000,000 ocean to ocean vote catcher",  2  and i t was remarked that the road was  1. H.C-.B. 1903, 9691.  2. i b i d . ,  10378.  not buildfc  to c a r r y g r a i n as much as i t was to c a r r y e l e c t i o n s . with which the b i l l was pushed through parliament, delay  The haste  and the  i n s t a r t i n g cons t r u e t i o n , a s w e l l as the p e r i o d o f u n c e r t -  a i n t y i n the e a r l y months o f 1904,  1  both lead to the c o n c l u s i o n  that these statements had a sound b a s i s .  Was B l a i r ' s r e s i g n -  a t i o n a s i g n of one man's disagreement with the c a b i n e t , or were there others who submitted to the w i l l of the m a j o r i t y ? How e f f e c t i v e was the lobbying which accompanied the b i l l , and how much i n f l u e n c e had Senator Gibson, one o f the foremost contractors  i n the Dominion, and Senator Cox, the outstanding  f i n a n c i e r i n Canada a t the time? Canadian P a c i f i c proposal  came before  B e l l s t a t e d t h a t , "The  the Railway Committee with a  to b u i l d a l i n e from Y/innipeg  to Edmonton, some 700  miles...and they d i d not ask one d o l l a r a s s i s t a n c e .  They met  with such discouragement that they withdrew the b i l l . " was the government so opposed to t h i s ?  2  YThy  Yftiat o f f e r of the  Winnipeg Board of Trade caused the r a i l w a y  t o pass that  city?  3  1. B . A . R . , 1904, 17: "At the b e g i n n i n g of 1904 i t was g e n e r a l l y assumed that the government were not q u i t e c e r t a i n whether they should take the Grand Trunk P a c i f i c c o n t r a c t to the people f o r approval without a w a i t i n g the expected r e v i s i o n of i t s terms, or hold another S e s s i o n , r e v i s e the c o n t r a c t ... and then appeal to the country." 2. H.C.D. 1904, 2314. 3. i b i d . , 2314.  F. W. Morse spent s i x weeks i n V i c t o r i a while Assembly was he wanted and  the  Legislative  i n s e s s i o n there but f a i l e d to r e c e i v e the threatened  to b u i l d  the r a i l w a y  subsidy  e n t i r e l y from  the  east as a r e s u l t , but the Canadian Northern o f f i c i a l s were r e c e i v e d r e a d i l y by the same government a few The Grand Trunk P a c i f i c was now,  the b u i l d i n g  was  faulty.  not as yet been determined, and  years  b u i l t and,  later. as we  But where the f a u l t l i e s w i l l not be  know has  known u n t i l much  more of the f o g v/hich enshrouds i t s o r i g i n has been c l e a r e d away.  55.  Chapter  III.  On August 10,  The  B u i l d i n g of the  1904,  Railway  as a meeting' i n London, the  -stockholders of the Grand Trunk P a c i f i c Railway  Company  e l e c t e d t h e i r d i r e c t o r s to take the p l a c e s of the d i r e c t o r s appointed new  provisional  at the i n c o r p o r a t i o n of the company.  d i r e c t o r s were Charles M.  Hays, F. W. Morse, W. H.  and W i l l i a m Wainwright of M o n t r e a l ; S i r C h a r l e s the Right Honourable Lord Welby, A. W.  Biggar,  Rivers-Wilson,  Smithers,  J . A. G l u t t o n -  Brock, and C o l o n e l F i r e b r a c e of London, England; able George A. Cox  The  the honour-  and E. R. Wood o f Toronto; H. A. A l l a n  and  E. B. G r e e n s h i e l d s of Montreal; J . R. Booth of Ottawa; and John B e l l of B e l l e v i l l e .  The  o f f i c e r s appointed were C h a r l e s  M. Hays, p r e s i d e n t ; F. W. Morse, v i c e - p r e s i d e n t ; and W i l l i a m Wainwright, second v i c e - p r e s i d e n t .  The e x e c u t i v e  committee  c o n s i s t e d of C h a r l e s M. Hays, the Honourable George A.  Cox,  F. W. Morse, and Y f i l l i a m Wainsrright. On August 11 the c h i e f engineer c o n t i n e n t a l Railway of Toronto.  The  Commission was  fidrtthe  Trans-  announced as ri. D. Lumsden  same day I".-.. Premier Parent  was  named as the  r e p r e s e n t a t i v e of the Canadian government on the Grand Trunk P a c i f i c board of d i r e c t o r s . Under the p r o v i s i o n a l d i r e c t o r s much work v/as done i n s u r v e y i n g both the E a s t e r n and Western d i v i s i o n s d u r i n g the jspidfcjnig of 1903.  T h e i r work i n the former d i v i s i o n  l a t e r s o l d to the government to be used on the iMational  was  56. T r a n s c o n t i n e n t a l Railway f o r $ 3 5 2 , 3 7 9 , 5 2 , Grand Trunk P a c i f i c  and a f t e r t h i s the  1  concentrated on the Western d i v i s i o n , f o r  which i t was r e s p o n s i b l e .  Geographically this d i v i s i o n  falls  i n t o two n a t u r a l s e c t i o n s , which were known as the p r a i r i e s e c t i o n and the mountain which was begun f i r s t ,  section.  I t was  the former of these  and which was completed long b e f o r e  the o t h e r . On the p r a i r i e s i t was understood from the b e g i n n i n g that the new  l i n e was  to pass f a r n o r t h of the e x i s t i n g  r a i l w a y s , but, i n s p i t e o f a l l the e a r l y promises, the Grand Trunk P a c i f i c was b u i l t due westward from Winnipeg to Portage l a P r a i r i e , p a r a l l e l i n g the other two r a i l w a y s , and from there i n almost a s t r a i g h t  l i n e to Edmonton, between the Canadian  P a c i f i c and Canadian Northern.  T h i s f a c t alone shows that the  Grand Trunk P a c i f i c was more i n t e r e s t e d i n o b t a i n i n g b u s i n e s s than i n opening and d e v e l o p i n g the c o u n t r y . it  In other words,  was a money-making scheme more than a n a t i o n - b u i l d i n g  project. I f a l i n e i s drawn on the map  from Portage l a  P r a i r i e to Edmonton i t w i l l be seen that i t f o l l o w s the n a t u r a l ;g'@>0|£ra3Shical phenomena a c r o s s the Great C e n t r a l P l a i n between those o t h e r two n a t u r a l d i v i s i o n s i n North America, the Canadian S h i e l d and the Rocky Mountains.  This line c l o s e l y  J  f o l l o w s the i s o t h e r m i c l i n e s , p a r a l l e l s the southern boundary of the Canadian S h i e l d , l i e s i n the s o - c a l l e d " p a r k l a n d " and " b l a c k - s o i l " b e l t s , f o l l o w s the s e c t i o n which lends i t s e l f 1. H.C.D., d u l y 13, 1905,  9490.  most r e a d i l y to the growth of both Marquis and Reward wheat, and  c l o s e l y i n d i c a t e s the r o u t e s used by the e a r l y  and  s e t t l e r s on the p r a i r i e s .  travellers  In other words, the Grand Trunk  P a c i f i c f o l l o w e d the most n a t u r a l route from e a s t to west and passed  through the most f e r t i l e  s e c t i o n of the Great  plains  area i n Canada. Communication between Winnipeg and Edmonton had been e s t a b l i s h e d long before the r a i l w a y e r a . t r a d e r s had  The e a r l y f u r -  t r a v e l l e d t h i s road from the time o f the " p e d l a r s " ,  but t h e i r route had been c i r c u i t o u s , f o l l o w i n g Lake Winnipeg and the Saskatchewan R i v e r .  T h i s route was  f o l l o w e d almost  e n t i r e l y d u r i n g the times of the "canot du nord", and them by the "York boats". for  t h i s system was  No  after  s u c c e s s f u l means of c o m p e t i t i o n  evolved u n t i l about 1860,  when the Hudson's  Bay Company e s t a b l i s h e d the Northern packets, a brigade o f dog teams, -for the winter l o a d s . the f i r s t second  T h i s was  i n three sections,  running from the Red R i v e r to Norway house, the  to C a r l t o n , and  the t h i r d to Edmonton.  As  they  f o l l o w e d the Lake Winnipeg-Saskatchewan R i v e r route  still  they  can be considered as l i t t l e more than a w i n t e r s u b s t i t u t e f o r the o l d e r method of c a r r y i n g goods. The f i r s t ently i n a f a i r l y Red River c a r t .  In 1873  consist-  d i r e c t l i n e from Winnipeg to Edmonton was In 1863  hundred people used Rockies.  type of t r a n s p o r t a t i o n to t r a v e l  the Overland e x p e d i t i o n of over  the  two  these c a r t s to the f o o t h i l l s of the  i t was  F o r t Garry f o r Edmonton.  estimated that about 150 c a r t s There was  left  a w e l l marked t r a i l between  58. the two c i t i e s , which was a d i s t a n c e of about 600 m i l e s .  The  t r a v e l l e r s u s u a l l y t r a v e l l e d d i r e c t l y westward t o the present s i t e of Portage monton.  l a P r a i r i e , and thence  n o r t h w e s t e r l y to Ed-  I t was a l o n e l y t r i p with very few i s o l a t e d  ments to pass on the way.  settle-  The journey was so slow that the  guides made o n l y one t r i p d u r i n g the summer. After surrendered  1869, when the Hudson's Bay gompany  i t s r i g h t s to the T e r r i t o r i e s , communication a c r o s s  the p r a i r i e s made a r a p i d advance, and much was l e a r n e d about this hitherto isolated opening  country.  The most important  step i n  the west was the b u i l d i n g o f the Canadian P a c i f i c  Railway.  When i t was f i r s t  p r o j e c t e d , surveying was done and  much was d i s c o v e r e d about the p r a i r i e c o u n t r y . famous cf the surveyors v/as S i r Sanford Fleming.  The most He favored  a route much to the north o f t h a t adopted by the Canadian P a c i f i c , and i n 1871 made a t r i p through Winnipeg to the Yellowhead Pass.  the t e r r i t o r y from  T h i s journey was l a r g e l y  r e s p o n s i b l e f o r the r e a l i z a t i o n of the value o f the land throughout settlement.  that section,and thus i n c r e a s e d the growth of I t a l s o had a great i n f l u e n c e i n t h e b u i l d i n g  of the Government t e l e g r a p h from Winnipeg to Edmonton between the years 1874 and 1879. From t h a t time u n t i l  the Grand Trunk P a c i f i c was  b u i l t , there was much e m i g r a t i o n to the p r a i r i e s , . a n d much survey work was done, so that L a u r i e r was able t o s t a t e q u i t e truthfully,  "There a r e mountains of i n f o r m a t i o n . "  1. H.C.D. 1903, 12651.  See page 10672 f o r l i s t  1  Unfortunately  of reports.  f o r the r a i l w a y t h i s v a s t amount of i n f o r m a t i o n was o f a very d i v e r s e nature, and, when the a c t u a l work o f surveying f o r a railway was begun, i t was d i s c o v e r e d that very l i t t l e  of i t was  of use. The Grand Trunk P a c i f i c was f o r c e d , t h e r e f o r e , to survey the a c t u a l route i n d e t a i l before beginning the a c t u a l c o n s t r u c t i o n of the r o a d . The reconnaisance 1903,  surveys began i n the s p r i n g of  when from f i f t e e n to twenty p a r t i e s were i n the f i e l d .  S t r e s s was l a i d on the f a c t that the road must have a maximum grade  of \ of ±f , 0  which means 21.12 f e e t p e r m i l e ,  1  and a  maximum curvature of 4 ° , which i s the arc of a c i r c l e with a r a d i u s of 1432.5 f e e t .  Many p r o t e s t s r e g a r d i n g the employment  of American engineers were proven i n v e s t i g a t i o n o f Judge Winchester. Hays s t a t e d t h a t  t o be l a r g e l y t r u e by the On October  21, 1904,  the t e r r i t o r y had been " p r e t t y w e l l  by the reconnaisance  covered"  3  surveys.  I t was shortjfcy a f t e r t h i s that there were rumors that the road would not be b u i l t because the Grand Trunk P a c i f i c was d i s s a t i s f i e d with the terms.  T h i s was probably  an e l e c t i o n "gag", f o r on.December 17 the company d e p o s i t e d £1,000,000 of guaranteed  stock as i t had agreed to do i n the  charger, and on December 24 i t gave reassurance  that the road  1. Note the value of good grades as g i v e n i n H.C.D. 1903, p.9837. "A locomotive which would draw 250 tons on the l e v e l would o n l y be able to draw 125 tons on .4$ g r a d i e n t ; 71.43 tons on a 1$ g r a d i e n t ; and 68.5 tons on a 1.2$ g r a d i e n t . " 2. supra, 49. 3. H.G.D.1905, 14648.  would be b u i l t .  The  deposit of s e c u r i t i e s  caused some c r i t i c i s m , and was  significance.  on March 9, 1904.  opened the f o l l o w i n g day  T h i s parliament  considered  Grand Trunk P a c i f i c Bailway Company B i l l Transcontinental  i s not  without  and the  lack of settlement  of the r a i l w a y presented ors'  than the p r a i r i e s .  is  the b a r r i e r presented  National  of the  country  the Mountain s e c t i o n  much more of a problem to the  survey-  On the e a s t e r n margin of: t h i s s e c t i o n by the Rocky Mountains, v/hich at  Mount Robson r e a c h a height  of over 12,800 f e e t , and  an average width of s i x t y m i l e s . d i r e c t i o n and  They extend i n a  which have  general  decrease towards the n o r t h ,  passes i n the r e g i o n under i n v e s t i g a t i o n , much lower than Next to these  mountain t r e n c h , occupied  by  stretches a terraced the Upper F r a s e r and  The  It  those  Canoe R i v e r s .  F r a s e r flows southward through the  P l a t e a u , a region, of mountains, f l a t s ,  with  inter-  West of t h i s i s the Cariboo Range, around which the River bends.  the  Bill.  and a l s o because of the  f a r t h e r south.  The  the amendments of  Because of the mountainous nature  north-westerly  cash  as a r e s u l t a d e p o s i t of $5,000,000  acknowledged by the Bank of Montreal  f a c t that parliament  instead of  Fraser Interior  l a r g e l a k e s and  rivers.  i s j o i n e d at F o r t George by i t s t r i b u t a r y the Nechako.  F a r t h e r to the west are the Babine Range and B u l k l e y Mountains. These are broken by the Skeena R i v e r and Bulkley.  F i n a l l y there  i t s tributary  the  i s the g r a n i t i c Coast Range, w i t h peaks  almost 8,000 f e e t high i n t h i s r e g i o n , steep h i g h c l i f f s , torrential rivers.  and  T h i s s e c t i o n of the country was much l e s s known than the p r a i r i e s .  The f u r - t r a d e r s , i t i s t r u e , had b u i l t  f o r t s at  McLeod Lake, S t u a r t Lake, and P r a s e r Lake as e a r l y as 1805 and 13 1806,  and many more during the ensuing years.  They had d e v e l -  oped r o u t e s to these f o r t s a c r o s s the mountains and to the sea at the southern end o f the present p r o v i n c e . Pacific  surveyors had explored the passes  c a r e f u l l y , and as a r e s u l t S i r Sandford  The Canadian  through  the mountains  Fleming had d e f i n i t e l y  f a v o r e d the Yellowhead above a l l other passes  through  the Hockies  As a r e s u l t of these i n v e s t i g a t i o n s and the work of the e a r l y f u r - t r a d e r s i t might be s a i d that the d i s t r i c t  east o f F o r t  F r a s e r was well-known i n a g e n e r a l way, but west of t h i s p o i n t the country was l a r g e l y u n s e t t l e d and almost  unknown.  This i s  one of the reasons f o r the i n d e f i n i t e n e s s o f the o r i g i n a l Grand Trunk P a c i f i c  charger, which names the terminus  Simpson or some other p o i n t on the P a c i f i c  as "Port  Coast."  Reconnaisance surveys iiere c a r r i e d out i n 1903 by the Grand Trunk P a c i f i c , but the r o u t e was not d e c i d e d f o r some time.  T h i s l e d to many.rumors, and any group of surveyors  was suspected doubtedly  as b e i n g the f o r e r u n n e r s o f the r a i l w a y .  the Grand Trunk P a c i f i c  Un-  1  o f f i c i a l s were s e c r e t l y  making t h e i r plans and c a r r y i n g out i n v e s t i g a t i o n s i n many s e c t i o n s of the province i n o r d e r t o determine the best The  year 1904 was apparently without  the b u i l d i n g o f the Grand Trunk P a c i f i c , except  route.  incident i n f o r the  1. See Vancouver D a i l y P r o v i n c e , October 9, 1903 f o r r e p o r t on surveyors a t P o r t Simpson.  reconnaisance surveys, foundation  work was  but i n a c t u a l f a c t much necessary  completed.  On May  4 the p r o v i n c i a l  cabinet of B r i t i s h Columbia agreed on K a i e n I s l a n d as the terminus, but t h i s was  not known f o r almost two  August 11 a tour of the west was  years;  begun by a number of  officials  of the company, i n c l u d i n g Messrs. Wainwright, B i g g a r , and Hays; and  on December 17 i t was  group of shares i n the  company had  Speyer and Company of New and  Sons.  The  Cox,  announced t h a t the  York and  were f i n i s h e d , and  By the end  i n 1905  first  been purchased by Messrs. London, and  N. M.  Rothschild  shares were-ssubscribed ten times over,  r e a l i z e d $14,600,000.  on  and  of the year the p r e l i m i n a r i e s  the a c t u a l work of c o n s t r u c t i o n  was  begun. There are f i v e stages  i n the b u i l d i n g of a r a i l w a y ;  the p r e l i m i n a r y survey; the d e t a i l e d survey, which determines the r o u t e ; the c o n s t r u c t i o n of the r i g h t of way, of c l e a r i n g and making a l e v e l road-bed; the  v/hich c o n s i s t s  l a y i n g of  the  t r a c k , or, as i t i s commonly c a l l e d , the ' ' s t e e l " , a f t e r which t r a i n s may work; and  run on the road f o r the a i d i n g of the c o n s t r u c t i o n ' b a l l a s t i n g , which means the f i l l i n g o f the  between the s l e e p e r s with g r a v e l a r completed r e g u l a r s e r v i c e may The  be  rubble.  i n c l u d e s the P r a i r i e S e c t i o n and  was  The  begun i n three  sections,  l i n e from Winnipeg westward, and  the l i n e from P r i n c e Rupert eastward.  Mountain s e c t i o n .  Jester t h i s i s  inaugurated.  Grand Trunk P a c i f i c was  the F o r t W i l l i a m branch, the  space  The  second o f these  the e a s t e r n h a l f of  the  a c t u a l d i v i d i n g p o i n t between the  s e l e c t e d by. Collingwood S c h r e i b e r  and  E . B. E e l l i h e r  two on  63. November 21, which was  1907.  It was  to be  the east bank of Wolf Greek,  129 m i l e s east of the summit of the Yellowhead  about 120 m i l e s west o f Edmonton. h i g h e r than Edmonton and 840 Sir  of 1906  creased pleted  The  l a s t l i n k was  and  and  begun on. November 28.  not completed u n t i l 1911.  The  first  Prairie  was  incom-  bridge  the r e g u l a r passenger  much slower,  From then i t was  and  p o s s i b l e to  from the western prov-  Lakes.  sod west of Winnipeg was  •Hilly Manitoba, on August 28,  T h i s was  The N a t i o n a l T r a n s c o n t i n e n t a l  ship goods on the Grand Trunk P a c i f i c inces to the head of the Great  the  the l i n e was  l i n e from S u p e r i o r J u n c t i o n to Winnipeg was was  By  the K a m i n i s t i q u a  completed on October 24,  s e r v i c e was  sod on the E o r t  J u n c t i o n branch i n September 1905.  i n the f o l l o w i n g year,  i n 1908.  which was  the f i r s t  e i g h t y - n i n e m i l e s were completed.  to 200  feet  f e e t below the Yellowhead.  W i l f r e d L a u r i e r turned  William-Superior end  Wolf Creek i s 665  and  1906.  The  turned  road  at Sand  to Portage l a  p r o j e c t e d that summer, and brought a strong p r o t e s t  from the Canadian P a c i f i c . Railway.  T h i s p e t i t i o n was  August 18,  some 300 m i l e s west of  1905,  and  s t a t e d "...For  Winnipeg i t i s simply designed l i n e s , and  to e x i s t i n g  i n no p a r t of that d i s t a n c e does the l o c a t i o n of  the Grand Trunk P a c i f i c  show that they sare more than s i x m i l e s  from the e x i s t i n g l i n e s . "1 although  as a competitor  dated  T i i e  p  r o  t st e  was  u n a v a i l i n g , however, f o r  the c o n t r a c t of the Grand Trunk P a c i f i c  s t a t e d that  2 i t was 1  '  not  to be w i t h i n 30/  C. A. R.,1905,  548.  m i l e s of the e x i s t i n g r a i l w a y 2. supra,  32.  lines,  the l a t t e r r a i l w a y had 1907  the ear of the government.  22,  the c o n t r a c t f o r t h i s s e c t i o n v/as l e t to Messrs. T r e a t  and Johnson, and the road was The  completed  i n November  p r o j e c t e d i n 1905,  Almost  the e n t i r e  and the p l a n and p r o f i l e of the  r e c e i v e d the a p p r o v a l of the government i n 1907. c o n t r a c t was  1907.  survey of the l i n e on the. p r a i r i e s presented  d i f f i c u l t i e s and progressed r a p i d l y . was  On June  l e t on February 24, 1906,  The  few  section line  first  to MacDonald, M c M i l l a n  and Company of Winnipeg f o r 245 m i l e s west of Portage l a P r a i r i e , approximately Touchwood H i l l s ;  and the c o n t r a c t f o r  the next 140 m i l e s , approximately to Saskatoon, the Canadian White P i n e Company of M o n t r e a l . Edmonton, 517 m i l e s , was Company.  1  In 1906  was. g i v e n to  The  l i n e to  c o n t r a c t e d by F o l e y , L a r s o n and  an order f o r 50,000 tons of s t e e l  was  awarded to the Lake S u p e r i o r S t e e l C o r p o r a t i o n . The work of c o n s t r u c t i o n on the p r a i r i e s was p a r a t i v e l y simple.  com-  By the end of 1906 MacDonald, M c M i l l a n  and Company had done 75$ o f t h e i r g r a d i n g and 60$ of the necessary  culverts.  Some of the work proved more d i f f i c u l t  than expected, however, and the Grand Trunk P a c i f i c Company v/as f o r c e d to r e l i e v e  them of some of the more d i f f i c u l t  s e c t i o n s such as that near M i n i o t a and The c o n t r a c t f o r the l a t t e r was  i n the Qu'Appelle  Valley  sublet to Messrs. Treat and  Johnson. One  of the g r e a t e s t causes of delay was  e s s i t y of b u i l d i n g b r i d g e s and c u l v e r t s . 1. For a complete  list  On the  the  nec-  prairie  of c o n t r a c t o r s see Appendix I .  s e c t i o n ••the-re were e l e v e n s t e e l and concrete b r i d g e s The l a r g e s t were a t Saskatoon, Edmonton,Battle Bar on the North Saskatchewan,  built.  65.  R i v e r , Clover  the A s s i n i b o i n e at Lazare ,  and a l s o at Portage l a P r a i r i e , the South Saskatchewan, R i v e r , and a c r o s s the M i n i o t a branch of the Canadian Railway.  ,  Pembina  Pacific  E s p e c i a l l y noteworthy were the B a t t l e R i v e r B r i d g e ,  2,770 f e e t long and 180 f e e t h i g h ; the South  Saskatchewan,  1510 f e e t long; and the Pembina R i v e r , 820 f e e t long and feet high.  200  The bridge c o n t r a c t o r s were the Canadian Bridge  Company, Messrs. John Gunn and Company, and Charles  May.  Grading was pushed along v e r y r a p i d l y and the e n t i r e p r a i r i e s e c t i o n to Wolf Creek was completed i n December  1908.  Track l a y i n g was much slower, being h e l d up i n the e a r l y stages by a shortage of t i e s , Great d i f f i c u l t y  and l a t e r by a shortage o f s t e e l .  was found i n s u p p l y i n g m a t e r i a l s b e f o r e the  s t e e l was  l a i d and even then the sbsenee o f b r i d g e s was a  handicap.  These two problems were overcome by b u i l d i n g  waggon roads and temporary b r i d g e s . problem was b r i n g men  the shortage of men.  The most  difficult  Even were the r a i l w a y to  from Europe many of them l e f t to take up  homesteads,  to work as farm hands, or t o j o i n the other r a i l r o a d s . Little the  s t e e l was  l a i d i n 1906.  By the middle of 1907  r a i l s had reached R i v e r s , Manitoba, and by the end o f the  year almost Saskatoon. Wainwright  By the end of 1908  they had passed  and were about 100 m i l e s from Edmonton.  In 1909  they reached Edmonton, and the f o l l o w i n g y e a r completed the p r a i r i e s e c t i o n to Wolf Creek. 1. c f . S e s s i o n a l Paper 20, P a r t IV,  1915.  Passenger s e r v i c e was inaugurated soon a f t e r the s t e e l was l a i d .  So urgent was the need f o r sending wheat  from the new d i s t r i c t s around t h e r a i l w a y t h a t , although the road was not o f f i c i a l l y opened, o f t e n c o n s t r u c t i o n t r a i n s would r e t u r n w i t h l o a d s .  The opening of t r a f f i c along t h e  l i n e was begun on J u l y 30, 1908, when the f i r s t  passenger  t r a i n from Winnipeg c a r r i e d 19 passengers, i n c l u d i n g F. W. Morse, to Portage l a P r a i r i e .  On September 21 a t r i - w e e k l y  s e r v i c e to Watrous was inaugurated, w i t h an e x t e n s i o n t o Wainwright twice a week. November 23.  The l a t t e r was made t r i - w e e k l y on  By the end o f the year t r a i n s were c a r r y i n g  passengers t o Hawkins, Saskatchewan, 680 miles but the r e g u l a r s e r v i c e had not begun. first 215  from Winnipeg,  On June 14, 1909 the  passenger t r a i n a r r i v e d a t Scott w i t h s i x coaches and  passengers, and on J u l y 14, 1909, t r a n s p o r t a t i o n was  extended t o Edmonton, r e g u l a r s e r v i c e beginning September 22. On June 3, 1910 d a i l y passenger s e r v i c e began, c u t t i n g f o u r hours o f f the Canadian Northern time from Edmonton t o Winnipeg. On J u l y 18, 1910, s e r v i c e was extended to Edson, b e g i n n i n g r e g u l a r l y on February 12, 1911.  Edson was the f i r s t  division-  a l p o i n t west o f Edmonton end i n the mountain s e c t i o n . The  mountain s e c t i o n was begun from b o t h ends.  The  e n t i r e s t r e t c h was under c o n t r a c t to F o l e y , Welch and Stewart, or t h e i r a s s o c i a t e s , Foley B r o t h e r s * s u b l e t most of the work.  Larson and Company, who  T h i s p o l i c y caused some c r i t i c i s m  on t h e grounds that the s u b - c o n t r a c t o r s i n f e r i o r quality.' ' 1  LI.  were h i r i n g men of  A f t e r much p r e l i m i n a r y surveying  H.C.D. February 25, 1909, 3939.  had been  done the l o c a t i o n o f a r o u t e was begun i n 1907, under Fry,  Engineer  and t h e a c t u a l r o u t e was l o c a t e d by November, 1908. The g r e a t e s t problems to f a c e the s u r v e y o r s were t h e  pass through the Rocky Mountains and the route a c r o s s the Berkley M o u n t a i n s .  1  In t h e former case there were many passes , 2  but the c h o i c e f i n a l l y narrowed t o three, t h e Peace R i v e r , Pine R i v e r , and Yellowhead.  The Yellowhead was f i n a l l y  but f o r f e a r of the c o m p e t i t i o n from the Canadian t h i s c h o i c e was kept s e c r e t f o r some time.  chosen,  Northern  Two l a r g e and  w e l l - a d v e r t i s e d p a r t i e s were sent t o t h e other two passes, while a s m a l l s e l e c t group d i d the a c t u a l work i n the Y e l l o w head. Another problem was the choice between two routes from Aldermere to Copper R i v e r .  One of these was v i a the  Telkwa R i v e r and Zymoet R i v e r to the Skeena, t h e other was to f o l l o w the B u l k l e y t d i t s junction w i t h the Skeena a t Hazelton.  The former route was about 80 m i l e s s h o r t e r and  was f a v o r e d by T a y l o r , the engineer  i n charge of t h i s  district,  but p r e s s u r e from the p r o v i n c i a l government r e s u l t e d i n the l a t t e r being chosen.  I t was shown that t h i s r o u t e would open  up t h e a g r i c u l t u r a l s e c t i o n near Hazelton and a l s o the northern mines, e s p e c i a l l y those of t h e Babine Range, a f f o r d an o u t l e t to t h e Babine and K i s p i o x V a l l e y s , and, f i n a l l y ,  afford a  1.  The l a c k of i n f o r m a t i o n about t h i s country can be r e a l i s e d by the s t o r y which r e l a t e d how the l o c a t i n g engineers d i s c o v e r e d a band o f I r o q u o i s h i g h up i n the Yellowhead who had no knowledge of the happenings of the p r e v i o u s century, c f . Warman, Cy« "Railway C o n s t r u c t i o n up to Date", Canadian Magazine, June 1911, Vol.XXXVII, 398.  2.  see Map 1 f o r the a l t e r n a t i v e r o u t e s .  s a t i s f a c t o r y j u n c t i o n f o r the r a i l r o a d t o Dawson.  This  rail-  road would f i n d a n a t u r a l route to the north from t h a t point through the K i s p i o x and Nass R i v e r v a l l e y s . The work was  s u b - l e t by the c o n t r a c t o r s i n s m a l l  s e c t i o n s , most of which were l e s s than f i v e m i l e s l o n g .  Many  of the s u b - c o n t r a c t o r s o b t a i n e d s e v e r a l s e c t i o n s , however. These s u b - c o n t r a c t o r s were as f o l l o w s : R. Ross and G.  A.  C a r l s o n ; A. L, McHugh; C r a i g B r o t h e r s ; John E. Bostrom; Angus S t u a r t ; N e i l K e i t h ; McDonald and M c A l l i s t e r ; M.  Sheedy; Smith  B r o t h e r s ; Stano and Harstone; P r i n c e Rupert C o n s t r u c t i o n Company; Dan  Stewart; F r e d Peterson; Norman McLeod; Dan  Washtock and  Company; D. A. Rankin; Freberg and  Horrigan;  Stone;  Boie  B r o t h e r s and Stone; Joe Amantea; K e r r and Company; Backus and Company; P. Salvus; Ross and McCaull; Ferguson Company; Moran and  Chiene; Bostrom and K u l l a n d e r ; Duncan Ra&s; Johnson,  Carey, and Helmers; J . A. Mackenzie and  Company; Lund, Rogers  and Company; Hogan C o n s t r u c t i o n Company; C a r l t o n and Burns and  Jordan;  Griffin;  John B o s t i c k ; Bates, Rogers C o n s t r u c t i o n  Company; Siems Carey and Company; A r c h i e McDougall; Sheedy and Paget; and Magoffin and The  Berg.  base of o p e r a t i o n s f o r the e a s t e r n end of the  mountain s e c t i o n was  Edmonton.  S u p p l i e s were c a r r i e d from  there to the d i f f e r e n t bases w i t h e r by c o n s t r u c t i o n t r a i n or >^ by wag©an„  The c o n s t r u c t i o n t r a i n was  a b l e t o run over  the  t r a c k s as soon as they were l a i d , and, because i t c o u l d not average over e i g h t m i l e s an hour, was  nicknamed "the  Flier".  The wagons were used to c a r r y s u p p l i e s to those camps which were beyond the "end  of s t e e l " .  The  customary p r i c e f o r  h a u l i n g was  f i v e cents a pound, with no allowance  There were about 600  teams working through  f o r distance  the Rocky Mountains  t w o - t h i r d s of which were p r i v a t e l y owned. Another common method of o b t a i n i n g s u p p l i e s was steamer from Seda Greek up the F r a s e r t o the F. W.  Stewart  had two  "end  steamers i n o p e r a t i o n which  of  by  steel".  had  e a r l i e r been used on the Skeena f o r the l i n e from P r i n c e Rupert.  They were the "Operator'and  a c a p a c i t y of 175  the Conveyor,. each with  t o n s , and powerful enough to push a scow  w i t h a 90 ton steam s h o v e l a g a i n s t the c u r r e n t }  These were  not as s a t i s f a c t o r y as the teams, however, as they c o u l d o n l y be operated when the r i v e r was  high.  In 1912,  because of the  l i g h t s n o w f a l l , they were used f o r only three weeks. One  of the most i n t e r e s t i n g phenomena of r a i l r o a d  b u i l d i n g i s the "end  of s t e e l " v i l l a g e .  One  w r i t e r has  d e s c r i b e d that of the Grand Trunk P a c i f i c as f o l l o w s : The "end of s t e e l " v i l l a g e was b u i l t around the "Pioneer", the mechanical t r a c k - l a y e r - an u n g a i n l y overgrown box c a r w i t h weird semi-human arms. The v i l l a g e i s always, three m i l e s from the end of s t e e l . That three m i l e s ^la p o s i t i v e l y the o n l y r e s t r a i n t i t knows; f o r ?/ithin t h a t d i s t a n c e of the end of s t e e l the c o n t r a c t o r has complete l e g a l c o n t r o l i n u n s e t t l e d districts. And knowing the h e l l that l i v e s i n those shacks he pushes them to the extreme o f h i s a u t h o r i t y . An "end oS s t e e l " v i l l a g e i s made up of booze, 1. Vancouver D a i l y P r o v i n c e , February 10, 1911, has an i n t e r e s t i n g account toy J.G.Quinn, o f the F o r t George Tribune. He says, "We have now s i x steamers on the Upper F r a s e r . The l a r g e s t and the best i s the B.X. The others are the C h i l e o , which may be a t o t a l l o s s as she was caught on her l a s t t r i p a short d i s t a n c e below Cottonwood Canyon.,..The o t h e r wrecked boat i s the o l d C h a r l o t t e , which had s e v e r a l mishaps l a s t summer. The other steamboats,are the C h i l c o t i n , the Quesnel, and the l i t t l e F r a s e r . " 1  ~~  70 b i l l i a r d s , and b e l l e s . I t i s t h e home o f t h e i l l i c i t l i q u o r t r a f f i c o f c o n s t r u c t i o n ^ t h e l o c a t i o n o f enough pool t a b l e s to stock a large c i t y , and the residence o f women who n e v e r e l s e w h e r e e n j o y e d s o much f r e e d o m . Three-quarters of the shacks are restaurants i n f r o n t for about s i xf e e t . The r e s t a u r a n t i s m e r e l y an o u t ward p l a u s i b l e excuse f o r the e x i s t e n c e o f the shack. Back o f t h e l i t t l e counter i s t h e p o o l room...and then t h r o u g h a s m a l l doorway, up a s h o r t f l i g h t o f s t a i r s that breathe exclusiveness and p r i v a c y i s the r e a l o b j e c t o f e x i s t e n c e - t h e c a r d room. Free bunk houses a r e t h e p r o v i s i o n o f t h e contractt o r s f o r t h e . d i s a b l e d , h e l p l e s s b o h u n k who h a s s p e n t the evening and e v e r y t h i n g e l s e i n t h e other shacks. A t M i l e 50 B . C . t h e r e w a s e v e n a b a t h h o u s e b u t i t f a i l e d ignomirdbusly b u t not u n e x p e c t e d l y . At Fitzhugh, which i s w i t h i n the province of A l b e r t a , t h e l i d was k e p t c l o s e d a l i t t l e b y the mounted p o l i c e , but t h e i r j u r i s d i c t i o n ended a t t h e b o r d e r o f B r i t i s h Columbia, and t h e r e a t t h e summit, r i g h t on t h e b o u n d a r y , t h e d o o r s were opened w i d e , a n d down t h r o u g h m i l e s 17, 29, a n d 50 t h e y r e m a i n e d t h a t way. M i l e JB9c!.hadrapreputation o f w h i c h i t s i n h a b i t a n t s r e f u s e d t o be p r o u d . . . . A s p e c i a l c o l l e c t i o n o f s h a c k s grew u p a t t h e w e s t e r n edge o f t h e p a s s , on t h e s i t e o f t h e T e t e Jaune C a c h e I n d i a n v i l l a g e . . . an o l d n e g r e s s r a n t h e town..,. An "end of - s t e e l " v i l l a g e i s a d i s g r a c e b u t T e t e J a u n e was i n d e s c r i b a b l e . 1 Work f r o m t h e e a s t e r n started  i n t h e autumn  progress bridges spans,  past  Wolf  a n d a deep a n d was  river  bridge  high;  while  removal  652  1.  but f o r over  because  The W o l f  feet  a n d 127  spans,  Creek feet  a n d was  1066  mile  between them  o f 130,000 c u b i c  feet  of earth.  regular  t h e McLeod  feet  waterways  to culminate and Athabasca  had s i x  the Mcleod long  and  118  n e c e s s i t a t e d the  i s broken  a n d low h i l l s ,  which  i n the "divide", a Rivers.  little  large  bridge  high;  division  made  o f two  Creek westward t h e country  by meandering sequence  a year  of t h e need  cutting. long  o f t h e mountain  the one-half  extensively  between  Creek  had eight  From Wolf  in  o f 1909,  side  I n t h e 100  up rise  ridge miles  F o r t G e o r g e H e r a l d , Sept,20,1913 - a r t i c l e b y W . L a c e y copied from the R a i l r o a d and Current Mechanics.  May,  west of Wolf Greek, before the bridges,which before the s t e e l was of men  necessary  l a i d , were f i n i s h e d , about twenty gangs  worked i n d i f f e r e n t s e c t i o n s c o n s t r u c t i n g the r i g h t  of way.  On August 3, 1910  Wolf Greek b r i d g e was  and by March,1911, a l o n g bridge of 14 l e n g t h of 802 was  were  f e e t , was  l a i d f o r 65 m i l e s .  finished  spans w i t h a t o t a l  completed at P r a i r i e Creek and The road here i s a l s o v e r y  track  difficult,  f o l l o w i n g the Roche M i e t t e and M i e t t e R i v e r v a l l e y to the Yellowhead Pass. understood,  The  d i f f i c u l t y o f the b u i l d i n g eaa  be  when i t i s r e a l i z e d that t h i s r i v e r f a l l s  400]  f e e t i n 17 m i l e s , which i s over 23-g- f e e t to the m i l e , where as e the r a i l w a y grade does not exceed 21 f e e t a m i l e .  There were  a l s o s e v e r a l other l a r g e b r i d g e s b u i l t before the pass reached,  was  the l a r g e s t being the Athabasca River, which had  three spans of 225  f e e t each.  The  summit, which marks t h e  B r i t i s h Columbia boundary and i s 129 m i l e s from Wolf Creek, was  reached  by s t e e l on November 15, A f t e r the summit was  1911.  passed, the road f o l l o w e d the  Tete Jaune gorge f o r about t h i r t y miles to the headwaters of F r a s e r at Moose l a k e .  S t e e l reached  t h i s p o i n t i n March  and a t r i - w e e k l y s e r v i c e began i n August.  1912,  From t h i s p o i n t  the c o n s t r u c t i o n was  much s i m p l e r , s u p p l i e s being  by the r i v e r boats.  Although  the country was  obtained  not so  difficult  to b u i l d through as the a c t u a l Rockies, the "gumbo" or c l a y e y mud  which i s found throughout t h i s s e c t i o n was  problem.  By A p r i l 12, 1913  R i v e r , where a b r i d g e 850  the s t e e l reached  f e e t long was  a great the Raushuswap  b u i l t , and  l a t e r passenger t r a i n s were running to Tete  two  months  Jaune Cache.  On  72. November 25 the r a i l w a y c r o s s e d the F r a s e r f o r the t h i r d time near the present  s i t e o f Hansard, and by the end o f the year was  at Willow R i v e r .  By January 12, 1914 s t e e l had a r r i v e d a t  the F r a s e r across from F o r t George, and on January 27 the t r a c k l a y e r c r o s s e d on a temporary bridge which was d e s t r o y e d by i c e the same day.  The b r i d g e across the r i v e r at t h i s  p o i n t , which had been begun on August 31, 1912,  was completed  on March 7, 1914, and P r i n c e George thus became connected with the east by r a i l . end of March the present  Progress  from then was r a p i d .  By the  s i t e o f F i l m o r e was r e a c h e d , and on  A p r i l 7, t h e l a s t spike was d r i v e n by R. B. E e l l i h e r , t h e c h i e f engineer,  about two miles east o f Nechako c r o s s i n g .  Although no great ceremony was h e l d at t h e time, 1500 people attended  the d r i v i n g of the l a s t The  difficulties.  spike.  P a c i f i c Coast end of the road presented The f i r s t  s u i t a b l e terminus.  many  of these was the problem o f a  The o r i g i n a l c o n t r a c t had mentioned P o r t  Simpson, but i t was understood t h a t t h i s would not be used i f a b e l t e r p l a c e -could be l o c a t e d . best l o c a t i o n would be on Kaien known as Tuck's I n l e t .  Surveys showed t h a t the  I s l a n d on a s m a l l  However, the o l d Admiralty  inlet chart  showed a rock i n the harbor which would be a s e r i o u s o b s t a c l e to n a v i g a t i o n .  A new survey  f a i l e d to l o c a t e t h i s impediment,  and as a r e s u l t t h e i s l a n d was s e l e c t e d as t h e western terminus of the Grand Trunk P a c i f i c . was  g i v e n to i t as a r e s u l t  railway.  The name P r i n c e Rupert  of a competition  sponsored by the  F i v e thousand answers were r e c e i v e d , the winner being  Miss E l e a n o r MacDonald of Winnipeg, who $250.  r e c e i v e d a p r i z e of  The a d v e r t i s i n g r e c e i v e d was cheap at the p r i c e . The i s l a n d o f K a i e n i s s e p a r a t e d from the mainland  hy a channel known as the Z a n a r d i Rapids, because the t i d e s flow through i t a t a r a t e of from 12 t o 14 m i l e s an hour. The problem of b r i d g i n g t h i s was fall  accentuated hy the r i s e  and  of the t i d e , which at times was as h i g h at 26 f e e t .  f i n a l b r i d g e across t h i s 645 f e e t .  I t was  The  channel had s i x spans and t o t a l l e d  not completed u n t i l J u l y 1910, and as a  r e s u l t caused much d e l a y i n the l a y i n g of s t e e l . The f i r s t  sod was  t u r n e d at P r i n c e Rupert on  7, 1908, a month a f t e r the f i r s t western end were l e t . was  May  s u b - c o n t r a c t s f o r the  The b u i l d i n g of the f i r s t  i n f l u e n c e d l a r g e l y by the p o l i c y of the Grand  100 m i l e s Trunk  P a c i f i c of buying p r o f i t a b l e c h a r t e r s f o r m e r l y i s s u e d t o other r a i l w a y s .  In B r i t i s h Columbia  two  roads were taken  by them, the n o r t h e r n , P a c i f i c and Omineca on March 20. , 1905, and the Vancouver, Western  and Yukon Railway, one of James  J. H i l l ' s e n t e r p r i s e s i n August  1907.  C o n s t r u c t i o n began a t Copper River!; where t h e former of these two roads would meet the Skeena i f i t were b u i l t from K i t i m a t .  The b e g i n n i n g of the work, and the back-  ground of the purchase of the N o r t h e r n , P a c i f i c and Omineca, is  d e s c r i b e d i n the P r i n o e Rupert "Empire" of August 24,  as f o l l o w s : C o n s t r u c t i o n work has been s t a r t e d on the K i t i m a t branch o f the Grand Trunk P a c i f i c a t the mouth o f 1. Then commonly known as "Newtown".  1908,  73.  Copper River....The K i t i m a t branch i s being b u i l t under a c h a r t e r granted by the p r o v i n c i a l l e g i s l a t u r e s e v e r a l years ago....The company t h a t obtained t h i s c h a r t e r a l s o r e c e i v e d a promise of a cash s u b s i d y of $5,000 a m i l e , p r o v i d e d $100,000 i n c o n s t r u c t i o n work was expended b e f o r e a s p e c i f i e d date t h i s y e a r . The Grand Trunk P a c i f i c purchased t h e c h a r t e r i n 1905, and i n order to get the cash subsidy have l e t a c o n t r a c t to "Jack" Stewart and h i s a s s o c i a t e s . N i n e t y men w i t h horses and s u p p l i e s were unloaded at P o r t E s s i n g t o n on August 13, and went by the steamer Northwest up the Skeena to Copper River .Mouth. The  185 m i l e s from P r i n c e Rupert to Hazelton i s  the most d i f f i c u l t pieee of engineering i n the e n t i r e r a i l r o a d . In 120 m i l e s the Skeena drops about 1,000 it  one  f e e t , wi i c h makes  of the most r a p i d l y running waterways on the c o a s t .  The l a s t 60 m i l e s are t i d a l , which i n c r e a s e d the problems of  construction.  through almost  The r a i l w a y f o l l o w s the banks o f the r i v e r  s o l i d rock f o r about 60 m i l e s , when i t reaches  the "Hole i n the W a l l " . avalanches  Moreover, i n these mountains,  and rock s l i d e s c o n s t i t u t e formidable  a g g r e s s i v e menaces.  In 1911  and  snow s l i d e s were so e x c e s s i v e  that a t u n n e l between 1400/ and 1600  f e e t long was  mile 44 i n an attempt to escape the danger,  driven at  F u r t h e r up  the  r i v e r i s K i t s e l a s Canyon, which n e c e s s i t a t e d three t u n n e l s of 400,  700,  and 1100  feet respectively.  In the f i r s t  211  m i l e s of railway there were 13 t u n n e l s , t o t a l l i n g 8,886 f e e t . When the r a i l w a y c r o s s e d the r i v e r 13 m i l e s below Hazelton a b r i d g e which had s i x spans and t o t a l l e d 930 f e e t was  needed.  One  and  c u t In t h i s s e c t i o n of the r o a d was  took almost  26 months to complete.  So d i f f i c u l t was  route t h a t over 12,000 m i l e s of t r i a l run t o l o c a t e 186  m i l e s of t r a c k .  6600 f e e t long  l i n e s " and  the  surveys were  C o n s t r u c t i o n of the f i r s t o f 100  two s e c t i o n s , the  miles to Copper R i v e r , and the second o f 140  Aldermere, was  begun i n many p l a c e s .  the Zanardi Rapids, and  S t e e l was  first  miles to  delayed  by  the m a t e r i a l s were c a r r i e d to the  camps by means of shallow-draught,  stern-wheeled steamers.  There were f i v e of these, the H e n r i e t t a , Port  Simpson,  D i s t r i b u t o r , Omineca and Conveyor, a l l owned by F o l e y , Weleh and Stewart.  In 1909  S p r a t t shipyards  another steamer was  in Victoria.  but were of l i t t l e use estimated  b u i l t at the  They were used i n the  i n the w i n t e r .  T h e i r speed  simmer,^  was  at 14 m i l e s an hour, but because o f the c u r r e n t  the r i v e r t h i s v a r i e d , so t h a t whereas i t took from f i v e e i g h t days to reach H a z e l t o n , the made i n f o u r t e e n hours. t h a t i t was  necessary  wharf had  the grading  On  and c u l v e r t s were  been l a i d , and no s t a t i o n s or b u i l d i n g s  J u l y 31, 1910,  the f i r s t  road. construction t r a i n  c r o s s e d the Zanardi b r i d g e , and from t h i s time on t r a i n s g r e a t l y a s s i s t e d the work. l a i d f o r 70 m i l e s , and  2.  cables.  m i l e s east of P r i n c e Rupert, the  of any k i n d had been b u i l t along the  these  By September s t e e l  C.C.Van A r s d o l l ,  '.In the summer of 1911 i t was 5,662 tons of f r e i g h t . :  strong  been b u i l t at that c i t y , but only about seven  m i l e s of t r a c k had  1.  so  to h a u l the boats a g a i n s t i t by  completed f o r almost 100  to  r e t u r n journey c o u l d be  Sometimes the c u r r e n t was  By March 31, 1910  of  2  the c h i e f  estimated  t h a t they  was  engineer carried  Van A r s d o l l was g e n e r a l l y nick-named " f o u r - t e n t h s Van" because of h i s i n s i s t e n c e of t h i s percent: of g r a d e .  of  the mountain  Hazelton.  s e c t i o n , had moved h i s headquarters to  New  At the same time l o t s were o f f e r e d f o r s a l e i n  E l l i s o n , the f i r s t  townsite to be a o l d east of P r i n c e Rupert,  S t e e l went l i t t l e f a r t h e r that year because  of the K i t s e l a s  Canyon, where the t u n n e l s were not completed on January  20,  1912. By March 1912  the r a i l s had reached SkeBna c r o s s i n g  where they were a g a i n f o r c e d to w a i t f o r the b u i l d i n g of the bridge.  Meanwhile t r a i n s were run on the f i r s t  p a r t of the  r a i l w a y and passengers took a boat a c r o s s the Skeena to the remainder of the t r a c k .  In September, 1911, arrangement  was  made w i t h t*he Hudson's Bay Company and F o l e y , Welch and Stewart, by which boats met to  the t r a i n s and i t was  possible  buy a through t i c k e t almost to H a z e l t o n . In  the s p r i n g o f 1912  t r a c k l a y i n g was  r a p i d l y , and i n s p i t e of the f a c t t h a t there was ground, 30 m i l e s were l a i d i n s i x weeks. Skeena b r i d g e was  completed.  In August  pushed  ahead  snow on the  On March 31 the the t r a c k s had reached  Sealy G u l c h , where one of the l a r g e s t b r i d g e s , w i t h a l e n g t h of  900 f e e t , was  which was  built.  T r a i n s were run t r i - w e e k l y to S e a l y ,  a s t a t i o n b u i l t at t h a t time about  from H a z e l t o n .  three m i l e s  F r i c t i o n between H a z e l t o n and the Grand  Trunk  P a c i f i c caused t r a i n s to s t o p at Sealy i n p r e f e r e n c e to the o l d e r town, and t r a i n s d i d not e n t e r New point u n t i l January 10,  Hazelton as a s t a t i o n  1913.  From t h i s time on progress was  steady.  On February  28 t r a i n s were running r e g u l a r l y to Porphyry Greek. 23 s t e e l reached Telkwa.  In September i t was  On  at Decker  May Lake,  and by the end o f the y e a r reached Burns l a k e . 1914, met  By March 15,  s t e e l had reached F r a s e r Lake, and on A p r i l 5, 1914, i t  the s t e e l from the e a s t .  The f i r s t through t r a i n reached  P r i n c e Rupert on A p r i l 8, 1914. Regular passenger t r a f f i c months.  d i d not s t a r t f o r s e v e r a l  On August E4 f r e i g h t t r a i n s hegan a r e g u l a r r u n , and  on September 6, 1914 , passenger t r a i n s began a r e g u l a r schedule from P r i n c e Rupert to  Winnipeg.  With the b e g i n n i n g o f r e g u l a r t r a i n s e r v i c e the a c t u a l c o n s t r u c t i o n o f the Grand Trunk P a c i f i c Railway might be c o n s i d e r e d as completed to  , a l t h o u g h there was s t i l l much  be done such as the improvement o f road-beds, the c o n s t r u c -  t i o n of s i d i n g s , and the replacement o f temporary  bridges.  The u n d e r t a k i n g had proven t o be much g r e a t e r than i t s o r i g i n a t o r s had expected.  I t began i n a p e r i o d of boom,  p r o s p e r i t y and peace, but i t f i n i s h e d i n a time o f gloom, depression,and war.  The i n s p i r e d v i s i o n o f L a u r i e r , which  had been expected to do g r e a t t h i n g s f o r Canada, was p r o v i n g i t s e l f to be a m i l l s t o n e around the neck o f the government of  Borden, and as the next few years p r o g r e s s e d i t was t o  become a s t i l l g r e a t e r hindrance to t h e e n t i r e c o u n t r y .  Chapter IV. The Grand Trunk P a c i f i c S u b s i d i a r i e s  Before  the c o n s t r u c t i o n o f t h e main l i n e of the  r a i l w a y had been s t a r t e d t h e grand Trunk P a c i f i c Railwqr begun the f o r m a t i o n  of s u b s i d i a r y companies.  had  The f i r s t o f  these was the Grand Trunk P a c i f i c Branch L i n e s Company. The o p p o s i t i o n i n parliament  was l o u d i n i t s c r i t i c i s m o f t h i a  o r g a n i z a t i o n , c r i t i c i s m s v a l i d not o n l y f o r t h i s s u b s i d i a r y but f o r the others that were formed l a t e r . It was p o i n t e d out t h a t , before  the Grand Trunk  P a c i f i c had b u i l t a mile of r a i l w a y , the same men who formed i t had approached parliament  w i t h the o b j e c t of forming  another company which wished to b u i l d of r a i l w a y as branch l i n e s ,  approximately  4800 miles  I t had a l r e a d y been agreed i n  the o r i g i n a l c o n t r a c t o f the parent  company t h a t i t might  b u i l d branches from the N a t i o n a l T r a n s c o n t i n e n t a l t o Montreal,, North Bay, and the head o f Lake S u p e r i o r , and from i t s main l i n e to Brandon, Regina, P r i n c e A l b e r t , C a l g a r y , and Dawson, This new company d e s i r e d t o b u i l d other l i n e s . it  these  and a l s o a number o f  The advantage of t h i s new o r g a n i z a t i o n was t h a t  d i d not have to r e s p e c t the p r i n c i p l e  advanced when the  Grand Trunk P a c i f i c was formed o f not p a r a l l e l i n g r a i l w a y s w i t h i n a d i s t a n c e of 30 m i l e s . p o i n t e d out by the Conservative  other  I t was f u r t h e r  p a r t y that the forming o f t h i s  new company would enable the Grand Trunk P a c i f i c Railw^r  •1, See Map 1.  1  Com-  79. pany to a v o i d some of t h e i r o b l i g a t i o n s by t r a n s f e r r i n g t h e more p r o f i t a b l e  s i d e s of r a i l w ^ r  c o n s t r u c t i o n to t h i s  concern.  The A c t t o Incorporate the Grand Trunk P a c i f i c Branch Line Company  lj  passed  i t s t h i r d r e a d i n g on June 30, 1906,  and r e c e i v e d the Royal Assent  on J u l y 13,  I t s shareholders  i n c l u d e d C h a r l e s M, Hays, F i W. Morse, W i l l i a m Wainwright, f . H. B i g g a r , and D'Arcy Tate.  The c a p i t a l l s t o c k was  $50,000,000 of which $20,000,000 might be i s s u e d a s p r e f e r e n c e . A l l the common stock was h e l d by the Grand Trunk P a c i f i c Railway use  i n c o n s i d e r a t i o n of t h e supply of r o l l i n g  stock f o r -  on the branch l i n e s , except 1,000 shares which were t o  go t o the d i r e c t o r s . There were to be about 4800 m i l e s of branch which were l a t e r i n c r e a s e d to 7,509 m i l e s .  lines,  In 1908 l e g i s l a -  t i o n was passed which s t a t e d t h a t the l i n e s must be begun w i t h i n two y e a r s and f i n i s h e d i n f i v e . branch  There were eighteen  l i n e s i n the o r i g i n a l a c t , but t h i s number was i n -  creased u n t i l by the end of 1909 the company had c h a r t e r e d 22 branches,  5 i n t h e e a s t e r n d i v i s i o n and 17 i n the W e s t e r n .  A study of these branches shows t h a t they were b u i l t purpose of g a i n i n g t r a f f i c  1  f o r the  from the l a r g e r e s t a b l i s h e d c e n t e r s  of p o p u l a t i o n and t o break the monopolies h e l d by the o t h e r r a i l w a y s , e s p e c i a l l y the Canadian P a c i f i c . The Branch Line Company c h a r t e r also g&ve wide powers i n r e f e r e n c e to steamers, docks, t e l e g r a p h s , h o t e l s , and other matters, but these powers were not u t i l i z e d because 1. H.C.D. December 13, 1909, 1366.  these a c t i v i t i e s were p r o v i d e d f o r by o t h e r s u b s i d i a r y companies. The branches which the company were g r a n t e d power to b u i l d were completed i n o n l y a few i n s t a n c e s , but t o a p p r e c i a t e the  thoroughness by which the o f f i c i a l s hoped to g a i n a f o o t -  h o l d throughout the e n t i r e country i t i s necessary t o g l a n c e at  the e n t i r e s l a t e .  A number of the branches were to be  from the N a t i o n a l T r a n s c o n t i n e n t a l to the eastenn c e n t e r s . From a p o i n t near Edmunston on the N a t i o n a l Railway a branch was  to be b u i l t  Frem Montreal a l i n e was  Transcontinental  to R i v i e r e du Loup, Quebec.  to be b u i l t  through J o l i e t t e  to a  p o i n t on the N a t i o n a l T r a n s c o n t i n e n t a l near Waymantaehi, Quebec Another l i n e was  to j o i n Montreal d i r e c t l y w i t h the main  line.  Two branches were to j o i n the N a t i o n a l T r a n s c o n t i n e n t a l i n O n t a r i o , one from Ottawa and one from O r i l l i a . was to  A belt  line  to be b u i l t around Winnipeg, aa d a branch from that the southern boundary of Manitoba.  A giort  l i n e was  be b u i l t from the main l i n e of the Grand Trunk P a c i f i c Neepawa, Manitoba. the  From Brandon a l i n e was  southern boundary  to to  t o be b u i l t to  of the p r o v i n c e , and another l i n e , vii i c h  o b v i o u s l y would p a r a l l e l b u i l t to Regina.  city  the Canadian N o r t h e r n , was t o be  On A p r i l 30, 1909, a p p r o v a l was g i v e n to  a l i n e p r o j e c t e d from Regina to Moosejaw which c o n t i n u e s the paralleling line to  o f the o t h e r r a i l w a y s .  (Melville) a line  From a p o i n t on the main  to Yorkton was  the Hudson Bay near F o r t C h u r c h i l l .  l i n e was  l a t e r t o be extended The f i r s t p a r t of t h i s  surveyed by R. P. Graves, and b u i l t  Another l i n e from M e l v i l l e  was  i n 1909 and  1910.  begun towards Regina i n 1909,  81. r e a c h i n g as f a r as B e l c a r r e s i n t h a t y e a r . extend t h i s l i n e to the southern boundary  I t was planned to of  Saskatchewan,  Another branch was to be b u i l t from the main l i n e (Young) to P r i n c e A l b e r t , and t h i s  r o u t e was approved by the  M i n i s t e r of Railways on June 21, 1909,  A branch which was to  be b u i l t from S c o t t to B a t t l e f o r d was surveyed by D. Bergen, but  not b u i l t .  Tofield  One  o f the most important branches was  to G a l g a r y , and thence to the southern boundary o f  Alberta,  1  The road as f a r as Galgary was  McArthur and Company o f Winnipeg i n 1907 i n 1913.  from  c o n t r a c t e d to J . D. an.d was  completed  I t i s another l i n e which i n t e r f e r e s w i t h the Can-  adian P a c i f i c , , and a f t e r the f o r m a t i o n of the Canadian N a t i o n a l Railways was  j o i n e d to the Canadian Northern l i n e  toon to C a l g a r y .  from Saska-  On September 6, 1913, an en nouneement was  made c o n c e r n i n g a l i n e which was  p r o j e c t e d from C a l g a r y  through Moose jaw, Medicine Hat, and the Crow's Nest country to B r i t i s h Columbia.  I t i s obvious that a l l the l i n e s i n  southern A l b e r t a would ha1?e been a d r a s t i c Pacific  monopoly i n t h a t  blow at the Canadian  territory.  Another s h o r t l i n e was  to be b u i l t to any p o r t on  the, Bay of Fundy, thus completing the N a t i o n a l to the A t l a n t i c .  Transcontinental  In B r i t i s h Columbia branches were a u t h o r i s e d  to Dawson from some p o i n t on the main l i n e  (probably near  H a z e l t o n ) , another along the west coast of Vancouver  Island,  and a t h i r d to j o i n Vancouver t o the P a c i f i c , Omineca and Northern Railway, which was l i n e o f the Grand Trunk  another way o f s a y i n g the main  Pacific.  1, On t h i s l i n e , near Camrose, A l b e r t a , i s the b i g g e s t wooden bridge i n Canada. See S p e c i a l Committ of Senate to Enquire i n t o the Serious Railway C o n d i t i o n s , 1938 , (He r e af t e r g&ejf er*e d to as Senate I n v e s t i g a t i o n ) 120"5~!  This l a s t branch was not b u i l t , but i t gave to the P a c i f i c  Great E a s t e r n , which was begun i n 1912 and  continued s p a s m o d i c a l l y u n t i l 1921. this railway  rise  The a c t which i n c o r p o r a t e d  was between the government; and F o l e y , Welch and  1  Stewart, and between F o l e y , Welch and Stewart and the Grand Trunk P a c i f i c Railway Company. 2 Vancouver to P r i n c e Ge,orge, Trunk P a c i f i c the  The r o a d was to be b u i l t from  and i t was agreed that the Grand •>  should have the f i r s t o p t i o n of purchase and  running r i g h t s on the l i n e .  The P a c i f i c  Great E a s t e r n  would r e c e i v e a guarantee o f i t s bonds f o r 135,000 per m i l e . The i n t e r e s t  on these bonds was to be 4$.  The i n c o r p o r a t o r s  i n c l u d e d three c o n t r a c t o r s , and among o t h e r s , B Arcy ?  who was a l s o a d i r e c t o r on the Grand Trunk P a c i f i c L i n e s Company.  Tate,  Branch  Obviously the P a c i f i c Great E a s t e r n was t o be  a s u b s i d i a r y o f the Grand Trunk P a c i f i c , b u t , because o f the d i f f i c u l t i e s which both r a i l w a y s l a t e r encountered, i t was not  purchased by the other company.  I t became an u n p r o f i t -  a b l e v e n t u r e , and the c o n t r a c t o r s were f o r c e d t o r e l i n q u i s h t h e i r r i g h t s to the B r i t i s h Columbia government, which has c o n s i s t e n t l y l o s t immense sums of money on i t . There i s a b e l i e f  ihasome q u a r t e r s that i t was the  i n t e n t i o n o f the Grand Trunk P a c i f i c  to use t h i s l i n e as a  means o f d e r i v i n g much business from Vancouver and the other southern p o r t s o f B r i t i s h Columbia, a b e l i e f which would not 1. B r i t i s h Columbia S t a t u t e s , 1912, Ch. 34 and 36. 2. c f . L o c a t i o n and Mileage of Railways of Canada, Dominion Bureau,of S t a t i s t i c s , T r a n s p o r t a t i o n Branch, 1924. p. 20. The road was completed.from North Vancouver 1o W h y t e c l i f f e , and from Squamish to Quesnel, B.C. , a t o t a l of §61,2? • m i l e s .  83. be i n c o n s i s t e n t w i t h the p o l i c y of the r a i l w a y .  I t has been  a s s e r t e d t h a t the Grand Trunk P a c i f i c Railway bought mueh o f the l a n d near W i l l i a m ' s Lake, a i d the c o n c l u s i o n from t h i s i s that i t was  the i n t e n t i o n of the r a i l w a y to make that  city,  r a t h e r than P r i n c e George, the g r e a t r a i l w a y c e n t e r o f northern B r i t i s h Columbia.  Some even a s s e r t that the aim was  to b u i l d d i r e c t l y eastward from W i l l i a m ' s Lake to the Y e l l o w head, which would have meant making the main l i n e of the Grand Trunk P a c i f i c terminate at Yancouver, and the l i n e to P r i n c e Rupert would have become a secondary l i n e , i f i t was not abandoned a l t o g e t h e r .  As no r e c o r d s e&ist of t h i s  scheme, n o t h i n g can be proven to s u b s t a n t i a t e these c l a i m s . They must be accepted as p o s s i b l e , but l i t t l e 1 can be  more than that  said. By the P a c i f i c Great E a s t e r n the B r i t i s h  government gave i n d i r e c t a s s i s t a n c e to the Grand P a c i f i c Branch L i n e s Company. e s p e c i a l l y Saskatchewan,  d i d much to encourage i t as w e l l .  the Grand Trunk P a c i f i c Saskatchewan T h i s company was  Trunk  The o t h e r two western p r o v i n c e s ,  In 1909, by an arrangement w i t h the Saskatchewan  formed.  Columbia  government,  Railway Company was  to b u i l d 475 m i l e s of l i n e , 150 i n  1910 and the remainder by 1912.  The l i n e s from M e l v i l l e  to Regina and from M e l v i l l e to Canora, were t o be completed by 1910.another l i n e s i n c l u d e d one from nesr Saskatoon, approximately 95 m i l e s , to B a t t l e f o r d ; from Watrous 75 m i l e s to Swift Current and thence 50 more m i l e s to Weyburn; and . 1. Both Dr. Robie L. R e i d and Dr. Kaye Lamb, p r o v i n c i a l l i b r a r i a n , v e r i f y t h i s rumor.  from M e l v i l l e 75 m i l e s to Watrous.  The Saskatchewan govern-  ment guaranteed the bonds of the company which p a i d 4%, f o r $13,000 per m i l e , the bonds being i s s u e d f o r t h i r t y y e a r s from 1909.  In 1912 an a d d i t i o n a l 90 mines were guaranteed  and secured by a f i r s t mortgage on the l i n e s o f the Grand Trunk P a c i f i c Branch L i n e s Company as w e l l as another 335 m i l e s on the Grand Trunk P a c i f i c  Saskatchewan Railway Company.  A l t o g e t h e r the Saskatchewan government has guaranteed £1,792,000 worth of 4$ bonds on 670 m i l e s o f Grand Trunk P a c i f i c Saskatchewan Railway Company. The A l b e r t a government to  that of Saskatchewan.  guarantee, w h i l e i t was  acted i n - a s s i m i l a r manner  The c h i e f d i f f e r e n c e was  s e t at $13,000 per m i l e , might be  i n c r e a s e d to $15,000 i f the government the  that the  so d e s i r e d .  A l b e r t a government guarantees £500,000 of f i r s t  Today mortgage  4$ bonds, r e p r e s e n t i n g a t o t a l of 670 m i l e s on the A l b e r t a l i n e s , as w e l l as £238,600 worth of 4$ f i r s t mortgage  bonds  on the A l b e r t a branch from B i e k e r d a l e to the (goal mines. On t h i s l a t t e r p i e c e of l i n e the A l b e r t a government guaranteed 58 miles at $20,000 per m i l e . With the f o r m a t i o n of the Branch L i n e s Company and i t s v a r i o u s s u b s i d i a r i e s , the Grand Trunk P a c i f i c was to  able  continue b u i l d i n g on the p r a i r i e s f o r s e v e r a l years a f t e r  the  main l i n e was complete.  ing  l i n e s were under c o n s t r u c t i o n : 93 m i l e s from Regina t o  Moose jaw,  For example, i n 1911 the f o l l o w -  90 m i l e s from Regina to the i n t e r n a t i o n a l boundary,  120 m i l e s from Young to P r i n c e A l b e r t , 50 m i l e s from Oban to  B a t t l e f o r d , 124 m i l e s from M i r r o r t o C a l g a r y , 50 m i l e s  from B i g g a r  to the i n t e r n a t i o n a l boundary, 58 miles By the end  B i c k e r d a l e to the c o a l mines.  from  of the year t r a i n s  were o p e r a t i n g on two branches, from T o f i e l d t o M i r r o r , and from Ganora through Yorkton and M e l v i l l e t o Regina.  This  was a t o t a l of 221 m i l e s . The  Grand Trunk P a c i f i c Branch Line Company w i t h  i t s connections  was the most important s u b s i d i a r y of the  Grand Trunk P a c i f i c Company.  There were s e v e r a l  s u b s i d i a r i e s which a l s o p l a y e d  other  an important p a r t i n the d e v e l -  opment of the t r a n s c o n t i n e n t a l . Gn June 12, 1906 the Grand Trunk P a c i f i c E l e v a t o r Company was formed*  Terminal  I t s c a p i t a l stock was |5,000,000,  of which $501,000 was i s s u e d i n 1906 and owned by the Grand Trunk Railway Company.  The purpose o f t h i s  was the e r e c t i n g and o p e r a t i n g Superior  organization  o f an e l e v a t o r on the Lake  t e r m i n a l of the r a i l w a y .  On November 18, 1908, the  c o n t r a c t f o r the e l e v a t o r to be b u i l t a t F o r t W i l l i a m was given 14,  to the Canadian Stewart Company of Montreal.  On A p r i l  1910, by an a c t o f the f e d e r a l government, the Grand  Trunk Railway Company was a u t h o r i z e d to a c q u i r e and dispose of the s t o c k s  of the company.  C l o s e l y a l l i e d to t h i s was the Grand Trunk P a c i f i c E l e v a t o r Company L i m i t e d , which was i n c o r p o r a t e d December 24,  1908.  of $100.  I t had $1,000,000 worth of stock  i s s u e d i n shares  I t s purpose was to "lease the t e r m i n a l  elevator  and warehouse to be e r e c t e d on the Grand Trunk P a c i f i c at F o r t W i l l i a m , O n t a r i o . " to be 3,500,000 bushels?,,  grounds  The c a p a c i t y of t h i s e l e v a t o r was and the c o s t of c o n s t r u c t i o n , which  was  l a t e r extended by $581,000, was  86.  to be $1,248,000.  On J u l y 22, 1912, the Grand Trunk P a c i f i c  Terminal  Warehouse Company was formed w i t h the o b j e c t o f b u i l d i n g a c h a i n of warehouses  i n M o n t r e a l , Toronto, F o r t  William,  Winnipeg, Edmonton, Vancouver and P r i n c e Rupert.  Its capital  was $10,000,000, of which o n e - h a l f was  to be i s s u e d immediately.  By &he  of Saskatchewan had  end of the month the government  guaranteed a d d i t i o n a l bonds f o r t e r m i n a l s i n Regina, Saskatoon, Moose jaw, P r i n c e l l b e r t , One  and S w i f t Current.  of the most a c t i v e and v a l u a b l e o f the Grand  Trunk P a c i f i c ' s s u b s i d i a r i e s was the Grand Trunk P a c i f i c Town and Development  Company L i m i t e d .  I n c o r p o r a t e d August 2,  1906,  under t h i s name, i t changed to the Grand Trunk P a c i f i c Development  Company on January 20, 1910.  from the Canadian government  I t agreed to buy  135 t r a c t s o f l a n d v/hich  included  19,931 a c r e s o f crown l a n d s , at a p r i c e of three d o l l a r s an a c r e , and to give the government  one-quarter o f the net proceeds  of s a l e s or r e n t a l s f o r townsite p u r p o s e s .  1  These were to be  along the r a i l w a y where they would be most a v a i l a b l e f o r town s i t e s .  I t was  a l s o p e r m i t t e d to buy 11,279.81 aeres  of unpatented homestead ment $1.00  l a n d s , f o r which i t p a i d the govern-  p e r acre and i n a d d i t i o n p a i d the homesteader the  amount demanded i n each c a s e . were Indian  reservations.  A t h i r d type of l a n d purchased  2  !•  g»0»P« January 17, 1910,  1966.  2.  I b i d . , January 25, 1911, 2366.  87. The e n t i r e stock o f t h e company was held, and guaranteed by the Grand Trunk P a e i f i o Railway.  The t o t a l value  o f i t s stock was $5,000,000, of which $3,000,000 o f common stock was i s s u e d and $2,000,000 o f p r e f e r r e d stock was n o t issued.  The Grand Trunk P a c i f i c Railway Company owned  29,990 shares of t h e p a i d up s t o c k and the remaining 10 were d i v i d e d e q u a l l y among the f i v e d i r e c t o r s , C h a r l e s M. Hays, E. J . Chamberlain, Wm. Wainwright, W. H. B i g g a r , and E . H. Fitzhugh,  The purpose of the company was t o a c q u i r e l a n d  and l a y out t o w n s i t e s , promote mining, operate tramways, and to develop other r e l a t e d p r o j e c t s .  I t was v e r y a c t i v e i n  northern B r i t i s h Columbia, p a r t i c u l a r l y around P r i n c e Rupert, New H a z e l t o n , F o r t F r a s e r and F o r t George.  One ©f i t s  l a r g e s t s a l e s was a t r a c t of 764 a c r e s near P r i n c e Rupert which were s o l d t o Moreton F r a n c i s and S i r Edgar V i n c e n t of England f o r $217,500, which was almost ten times the o r i g i n a l cost One  price. o f the fundamental reasons f o r the c o n s t r u c t i o n  of the Grand Trunk P a c i f i c Railway had been the development of trade w i t h the O r i e n t .  In c o n n e c t i o n w i t h t h i s the  promoters of the company had hopes f o r the development t r a n s - o c e a n i c steamship s e r v i c e .  of a  The B r i t i s h Columbia c o a s t  s e r v i c e was expected to be the b e g i n n i n g o f t h i s great  steam-  s h i p system, f o r i n 1909 Captain C. H. N i c h o l s o n was a p p o i n t e d manager and o r g a n i z e r o f the P a c i f i c f l e e t and i t s e x t e n s i o n to China and Japan. The f i r s t mention r e g a r d i n g the development  of a  coast steamship s e r v i c e i s found i n theaWi-nnlpeg Free Press  of September  5, 1908, which s t a t e s , "The Grand Trunk P a c i f i c  purchased 280 f e e t o f water f r o n t between the A l a s k a  steam-  s h i p wharf and the marine and f i s h e r i e s dock f o r ovear $100,000 from C l i f f o r d W. Brown i n V i c t o r i a . " The Grand Trunk P a c i f i c  Coast Steamship Company  developed a r e g u l a r coast s e r v i c e f o r many y e a r s . of t h e i r f l e e t was  The f i r s t  the P r i n c e Rupert, which was b u i l t  by  Swann and Hunter of Newcastle, England.  I t made i t s maiden  t r i p to P r i n c e Rupert on June 16, 1910.  Two other s h i p s ,  the P r i n c e George and the P r i n c e A l b e r t entered the s e r v i c e sooqi. a f t e r .  The three v e s s e l s were a l i k e , being o i l burners  of 2,850 t o n s , w i t h a l e n g t h of 306 f e e t , a beam of 42 and being capable of 18 knots per hour.  A regular  feet,  service  was maintained d u r i n g the y e a r from Taeoma, S e a t t l e , and Vancouver t o P r i n c e Rupert.  In 1911 the s e r v i c e was extended  to Stewart, A l a s k a , and f o r the years 1916, 1917, and a summer s e r v i c e was operated to Skagways  1918  On November 12,  1909, an agreement was made w i t h the dominion government f o r a steamer to run to the Queen C h a r l o t t e I s l a n d s ifasom P r i n c e Rupert. of $200 a t r i p .  For t h i s the government  was  to g i v e a subsidy  During the w i n t e r a f o r t n i g h t l y s e r v i c e  maintained and during the summer a weekly.  was  The c o n t r a c t  was t o l a s t u n t i l March, 1915. When the Grand Trunk P a c i f i c became a p a r t o f the Canadian N a t i o n a l Railways t h i s steamship l i n e v/as maintained.  At present i t c o n s i s t s of f i v e v e s s e l s  which maintain an a l l - y e a r s e r v i c e from Vancouver to P r i n c e Rupert and from Vancouver and P r i n c e Rupert to the Queen Charlotte Islands.  In 1930 a summer s e r v i c e started to operate  to A l a s k a and i s s t i l l  i n operation.1  In 1910 an attempt was made to invade the Vancouver, Victoria,and Seattle triangle service.  The Grand Trunk  P a c i f i c Coast Steamship Company operated a twice weeklys e r v i c e i n summer and a weekly s e r v i c e i n w i n t e r on t h i s run from 1910 to 1923.  In August, 1930, an attempt was made to  r e v i v e t h i s s e r v i c e hy the P r i n c e David, hut the venture ended on September 15, 1931, a s i t was  fel'Jt .that t h e r e  was  not enough t r a f f i c t o warrant i t s competing w i t h the Canadian P a c i f i c Coast Steamships. C l o s e l y connected with these steamships was the Grand Trunk P a c i f i c Dock Company, of S e a t t l e .  In 1909 i t  l e a s e d a dock known as the F l y e r Dock on R a i l r o a d Avenue between Madison and Main s t r e e t s i n S e a t t l e from the Commercial Company. Here i t agreed to b u i l d a concrete dock to the :  value of $250,000, During 1904 and 1905 there was much i n t e r e s t c a p i t a l i s t s i n the B u l k l e y and Telkwa d i s t r i c t s .  by  The Grand  Trunk a c q u i r e d 17 ,000 acres of l a n d i n t h i s s e c t i o n and formed the Grand Trunk P a c i f i c B r i t i s h Columbia Coal Company.  This;  company c o n t r o l l e d 12 s e c t i o n s o f l a n d a l o n g s i d e the r a i l w a y about 16 m i l e s from Hazelton.  Here i t d r i l l e d three  tunnels,  from which i t s u p p l i e d c o a l to the B r i t i s h Columbia s e c t i o n of the r a i l w a y .  There, were about 100 s h a r e h o l d e r s who  met  a n n u a l l y i n Vancouver. In 1906 was formed the Grand Trunk P a c i f i c  Telegraph  Company, w i t h a c a p i t a l o f $5,000,000 and s t o c k guaranteed by 1. Senate I n v e s t i g a t i o n , p. 966 and 1103 to 1106.  the Grand Trunk P a c i f i c R a i l r o a d .  I t had a very broad c h a r t e r ,  i t s main purpose b e i n g t o b u i l d a t e l e g r a p h l i n e a l o n g s i d e the r a i l w a y , but i t c o u l d a l s o a c q u i r e c a b l e l i n e s , w i r e l e s s telegraphs,and  similar u t i l i t i e s .  telephones,  I t inaugurated a  s e r v i c e between Winnipeg and P r i n c e Rupert on November 21, 1914. These many s u b s i d i a r i e s permitted Pacific  the Grand Trunk  t o escape many o f i t s o b l i g a t i o n s , and thus to do  many t h i n g s not i n the o r i g i n a l  charter.  The Grand.Trunk  P a c i f i c Railway h e l d the c o n t r o l i n a l l o f them, and they -enabled  the railway company to i n c r e a s e i t s g r a n t s and  s u b s i d i e s enormously.  I t was shrewd company promoting,' but  the boom broke i n 1913 and the r a i l w a y found i t s s u b s i d i a r i e s to be detriments  i n s t e a d o f the hoped-for a s s e t s .  91  Chapter V. The  The  Power o f the Grand Trunk P a c i f i c  b u i l d i n g of railways  i n North America has  had  - four e v i l r e s u l t s : the e x p l o i t a t i o n of the l a b o r i n g c l a s s ; the b u i l d i n g of c i t i e s with crowded.unsanitary c o n d i t i o n s ; c o r r u p t i o n of p o l i t i c s and morals; and  the f o r m a t i o n  fortunes  by which the d i s t r i b u t i o n of wealth was  uneven.  The  Grand Trunk P a c i f i c was  other r a i l w a y s . are  of  large  made more  no d i f f e r e n t from  Throughout i t s e n t i r e p e r i o d o f  the  construction  complaints from the l a b o r e r s about the wretched accommo-  d a t i o n , poor food, h i g h r a t e of m o r t a l i t y , and d i d b r i n g about the b u i l d i n g and must be n o t i c e d ,  low wages.  It  development of c i t i e s , but i t  i n f a i r n e s s to the r a i l w a y ,  i t s c i t i e s were planned before the  the  any  that some of  of the l o t s were s o l d  e v i l s of overcrowding were overcome.  T h i s was  not  from a humanitarian p o i n t of view, however, but from  and  done  the  p o i n t of view of the p r o f i t s to be made from these developments.  As regards the c o r r u p t i n g i n f l u e n c e of the  on p o l i t i c s much has but  even then the  years.  been s a i d , and much more can  be shown,  t a l e w i l l be f a r from complete f o r many  F i n a l l y , there  i s no doubt that the r a i l w a y  money-making scheme, and  the f i e l d and "Anyone who  was  a  that not o n l y were f o r t u n e s made by  those connected with the r a i l w a y , but other entered  railway  speculators  e i t h e r made or l o s t huge sums o f money. i n v e s t i g a t e s the genesis  r a i l w a y s of Canada," says B i g g a r ,  " w i l l be  of the e a r l y  impressed by  the  number o f members of parliament  who, while p u b l i c l y  the b u i l d i n g of r a i l w a y s f o r the s o l e purpose of the resources roads. end,  o f the country, obtained  personal  advocating  developing  c o n t r o l o f the  They p r o s t i t u t e d t h e i r p o s i t i o n s i n parliament  to t h i s  and used not t h e i r own cash but the p u b l i c money and c r e d i t  wherewith to c o n s t r u c t  the l i n e s , and then took to themselves  the p r o f i t s d e r i v e d by p u b l i c funds."^ The  Grand Trunk P a c i f i c Railway was a L i b e r a l  p r o j e c t , and i t became a r e c o g n i z e d  f a c t t h a t , " A f t e r 1902,  r  ?  • r a i l w a y s are out p o l i t i e s ' became true once more."" p o l i t i c a l g r a f t has never been proven i n connection Grand Trunk P a c i f i c  Although  w i t h the  Railway, i t s i n f l u e n c e on p o l i t i c s , and  the i n f l u e n c e of p o l i t i c s on i t , are to be found again and again.  The b u i l d i n g of l i n e s through as many c o n s t i t u e n c i e s  as p o s s i b l e , the i n f l u e n c e i n e l e c t i o n s , and the o p p o s i t i o n o f the government to other r a i l w a y s are a few of the more obvious i n d i c a t i o n s of p o l i t i c s .  "The campaign pamphlets  c i r c u l a t e d by the L i b e r a l o r g a n i z a t i o n i n the East  set forth  a p o l i c y a b s o l u t e l y d i f f e r e n t from that they s e t f o r t h i n the West."  3  Under S i r John A. MacDonald the C o n s e r v a t i v e had  been r e s p o n s i b l e f o r the Canadian P a c i f i c  party  Railway.  "That r a i l w a y , s t r o n g l y opposed by the L i b e r a l s , had proved to be an enduring monument to the f o r e s i g h t and e n t e r p r i s e of a Conservative administration. In these l a t e r days of development and p r o s p e r i t y i t was a n t i c i p a t e d that another great t r a n s c o n t i n e n t a l r a i l w a y , extending on Canadian t e r r i t o r y from A t l a n t i c 1. Biggar, E. B., The Canadian Railway Problem, Toronto,1917, 69. 2. S k e l t o n , Oscar D., L i f e and L e t t e r s o f S i r W i l f r e d L a u r i e r , Toronto, 1921, 185. 3. Borden's Autobiography, 121.  to P a c i f i c , would prove to be an even more monument to a L i b e r a l a d m i n i s t r a t i o n .  93.  conspicuous  1  At f i r s t Laurier. hoped to amalgamate the Grand Trunk P a c i f i c project, with the Canadian Northern,  and  in this  a t r a n s c o n t i n e n t a l f a r g r e a t e r than the f i r s t . adian Northern were c l o s e l y  was  a p r o f i t - m a k i n g scheme, and  t i e d to the C o n s e r v a t i v e p a r t y ,  negotiations f a i l e d .  In 1903  way  to c r e a t e  But  the Can-  the  officials  AS a r e s u l t  the government, " t r i e d to  the  buy  the Manitoba l i n e s but they could not get t o g e t h e r . . . t h e y  had  meeting a f t e r meeting, w i t h them, but the best terms they c o u l d get were that they assume a l l o b b l i g a t i o n s , t h i n g e l s e , and  a l l bonds, and  every-  give $25,000,000 f o r the common stock of that  l i t t l e bunch of l i n e s up around W i n n i p e g . "  2  Balked by these e x c e s s i v e demands, L a u r i e r d e t e r mined to b u i l d an e n t i r e l y  separate road with the  of the Grand Trunk o f f i c i a l s . support  This e n t a i l e d  f a r to the n o r t h the l i n e was  Instead of running  b u i l t on the p r a i r i e s between  the Canadian n o r t h e r n and Canadian P a c i f i c . been the o r i g i n a l i n t e n t i o n not to o f f e r  est  much government  of p o l i c i e s which were d e f i n i t e l y opposed to the  o r i g i n a l scheme of the Grand Trunk P a c i f i c .  existing  cooperation  l i n e s , p e r m i s s i o n was  Whereas i t had  c o m p e t i t i o n to  g i v e n to b u i l d  c i t i e s on the p r a i r i e s , and by t h e i r  to a l l the  o r i g i n a l plans  Grand Trunk P a c i f i c Branch L i n e company would have  largthe  paralleled  the Canadian P a c i f i c a t a d i s t a n c e o f not more than t e n m i l e s 3 fromr.WInnipeg to~ C a l g a r y , Two  and probably  to the crow's Nest.  examples of p a r t i a l i t y to t h i s road are o u t s t a n d i n g .  1. Borden's Autobiography,109. 3. H.C.D. 1906.  2. Kailway  June 18, 5470 -1.  1 9 1 7  »  8 0  Inquiry •  In  (jommiasion,  1905  the Canadian P a c i f i c Kailway p e t i t i o n e d the government  t o p r o t e s t the p a r a l l e l i n g of l i n e s between Portage l a P r a i r i e and Winnipeg, e s p e c i a l l y Grand Trunk P a c i f i c  as, i n some p l a c e s , the "proposed-  l i n e s would be w i t h i n 9 or 10 m i l e s of  branches of the Canadian P a c i f i c Kailway." " 1  were o v e r r u l e d judgment  on a l l e g e d l e g a l grounds."  s t a t e d , "There i s no l i m i t a t i o n ,  thirty miles."  3  On June 1, 1911,  The  "objections  Furthermore, the  2  i n f a c t , as to the  the Board of Kailway  Commissioners r u l e d t h a t the Grand Trunk P a c i f i c would not carry freight  over i t s l i n e through the Yellowhead to Northern  B r i t i s h Columbia.  T h i s was a blow to the Canadian Northern,  as i t had intended  to have i t s c o n s t r u c t i o n m a t e r i a l s  by the Grand Trunk P a c i f i c through t h i s  carried  s e c t i o n and thus cut  down much of i t s expense. But i f the L i b e r a l Government t r i e d t o hinder  the  Canadian P a c i f i c Railway, t h a t powerful o r g a n i z a t i o n r e c i p r o cated.  The f o l l o w i n g l e t t e r t o L a u r i e r concerning  e l e c t i o n s on the p r a i r i e  i n 1905  the  shows t h i s :  You are no doubt aware i n a general way of the a t t i t u d e of the Canadian P a c i f i c Railway i n both p r o vinces, i n the c o n s t i t u e n c i e s of B a n f f , Calgary,and G l e i c h e n i n t h i s p r o v i n c e , the Canadian P a c i f i c Kailway had p r a c t i c a l l y charge of the .campaign and every i n f l u e n c e they could use, f a i r or u n f a i r , was brought t o bear on the L i b e r a l s . The i n f l u e n c e of the Canadian P a c i f i c Railway can be f e l t , a l s o , i n every p o i n t i n Saskatchewan province where they had p u l l . They have shown t h e i r hands... and I would make i t war to the k n i f e from t h i s o u t . 4  1. S e s s i o n a l Paper 2 0 ( c ) , 1907, 2. C.A.R. 1905, 548. —  79.  4. S k e l t o n ,  (footnote).  0. D.,  Q p . c i t . , 244  3. S e s s i o n a l Paper 80.  20(c),1907  F o r t u n a t e l y f o r t h e Grand Trunk P a c i f i c Railway, the L i b e r a l s h e l d an overwhelming m a j o r i t y i n the f e d e r a l house u n t i l 1911 when the Conservative gained power. built  1  government under Robert Borden  By t h i s time the r a i l w a y was so near to b e i n g  that he could do n o t h i n g but f i n i s h i t .  to hinder  Had he wished  i t , he was f a c e d by the f a c t t h a t p r a c t i c a l l y the  only s e c t i o n incomplete  was i n B r i t i s h Columbia, which had  remained f a i t h f u l l y c o n s e r v a t i v e had begun.  T h i s does not mean that the f e e l i n g between the  Conservatives friendly.  from the time the r a i l w a y  and the Grand Trunk P a c i f i c was at any time  S i r Robert Borden s t a t e s , "I r e f e r r e d t o the  a c t i v e and a n t a g o n i s t i c i n t e r v e n t i o n o f the Grand Trunk R a i l way a g a i n s t our p a r t y i n 1908, and emphasized s t r o n g l y t h a t we d e s i r e d ho q u a r r e l with any great c o r p o r a t i o n i n Canada; but t h a t i f such a c o r p o r a t i o n d e s i r e d to a t t a c k and p e r s i s t i n a t t a c k i n g our p a r t y we were prepared  to meet them and to  press the q u a r r e l to the b i t t e r end....Subsequently Mr. Wainwright, P a r l i a m e n t a r y  Representative  of the Grand Trunk  Railway, c a l l e d and suavely i n q u i r e d i f I intended  to a l l u d e  to h i s company, p r o t e s t i n g a t the time that my s u s p i c i o n s were e n t i r e l y unfounded.  He r e c e i v e d l i t t l e comfort out o f our  2 interview." Two o f the western p r o v i n c e s maintained  Liberal  governments while the r a i l w a y was being c o n s t r u c t e d , and t h e r e 1. Note: i n 1911 S i r W i l l i a m Van horne spoke on Montreal p o l i t i c a l p l a t f o r m s a g a i n s t the L i b e r a l p a r t y . 2. Borden's Autobiography, 315.  f o r e d i d a l l i n t h e i r power to advance the p r o j e c t .  In the  o t h e r s , B r i t i s h Columbia and Manitoba, S i r Richard McBride s u c c e s s f u l l y fought  the r a i l w a y and f o r c e d i t to b u i l d from  the west, while Mr,  R o b l i n was  f o r t u n a t e i n h o l d i n g the  key  p o s i t i o n f o r the b u i l d i n g of a t r a n s c o n t i n e n t a l . In both p r o v i n c i a l and many charges of g r a f t .  "The  f e d e r a l governments were  r e l i a n c e upon -the p u b l i c t r e a s u r y  ...brought i n t o Canadian p o l i t i c s the most c o r r u p t i n g s i n g l e f a c t o r i n Confederation  times, apparent i n campaign c o n t r i b u -  t i o n s , advance i n f o r m a t i o n as to l o c a t i o n of l a n d d e a l s , f r e e passes for members and - the whole 'long t r a i l ,  t h e i r f a m i l i e s , the buying 1  i n Mr.  Bennett*s phrase,  ary c o r r u p t i o n , of l o b b y i n g , of degradation  of  of newspapers, 'of- p a r l i a m e n t -  parliamentary  i n s t i t u t i o n s , of the l o w e r i n g of the morals of p u b l i c In every p r o v i n c e f e l t , and  i n almost every one  political  scheming,  life.'"  the i n f l u e n c e of the r a i l w a y were scandals  1  was  or charges o f  i n the Maritimes the r e s i g n a t i o n of B l a i r  as M i n i s t e r of Railways, and  the choice of Moncton as  terminus ga?©eexamples of the i n f l u e n c e o f p o l i t i c s . be noted as a r e s u l t of t h i s , S t .  the I t might  John f o l l o w e d B l a i r i n  opposing the L i b e r a l Scheme and e l e c t e d a C o n s e r v a t i v e In Quebec p r o v i n c e ,  i t was  the p r e s s u r e  in  1904.  from Quebec  c i t y which r e s u l t e d i n the r a i l w a y p a s s i n g through t h a t  city  1. S k e l t o n , P.P.,op.cit., 419. Note: On January 26, 1939, on the o c c a s i o n of h i s f a r e w e l l speech to Canada d e l i v e r e d at St.John, New Brunswick, Mr. Bennett r e f e r r e d to the problem of r a i l w a y s and patronage as one of Canada's four great problems.  i n preference, to. Montreal.. r e s i g n a t i o n of B l a i r , Canadian Northern  In the scandal connected  with the  the attempt o f the C o n s e r v a t i v e s and the  i n t e r e s t s to oust L a u r i e r hy the purchase  of "La P r e s s e d has been shown.  I n 1907 a more f l a g r a n t  1  charge  of g r a f t was i n v e s t i g a t e d i n what i s known as the " A s s e l i n Case."  2  O l i v a r A s s e l i n was the e d i t o r of a newspaper, Le  N a t i o n a l i s t e , which charged Prevost and Turgeon, two members of the p r o v i n c i a l c a b i n e t , o f c o n n i v i n g with a B e l g i a n s y n d i c a t e under Baron de l ' E p i n e .  T h i s group was t o purchase l a r g e  areas i n the A b i t i b i r e g i o n on the supposed r o u t e o f the Grand Trunk.Pacific.  They were to be s o l d the land f o r one d o l l a r  an a c r e , o f which seventy cents was to go to the p u b l i c t r e a s u r y and t h i r t y cents was t o be g i v e n to campaign  funds.  In the t r i a l the j u r y s p l i t with a vote of s i x f o r each s i d e . . The  charges  were unproven, i t i s t r u e , but the r e s u l t i n g  judgment was f a r - f r o m s a t i s f a c t o r y , and P r e v o s t r e s i g n e d h i s p o r t f o l i o o f M i n i s t e r o f Mines, Lands and F i s h e r i e s . i n Ontario the L i b e r a l s , under Ross, i n 1904 granted  the Grand Trunk P a c i f i c  $2,000 p l u s 6,000 a c r e s o f r  land f o r each m i l e b u i l t on the branch  l i n e to Fort William  from the N a t i o n a l T r a n s c o n t i n e n t a l Railway. mileage  As the t o t a l  was about 200 m i l e s t h i s grant meant a t o t a l  of $400,000 and 1,250,000 a c r e s of l a n d .  The r a i l w a y  subsidy agreed  to c e r t a i n c o n d i t i o n s such as the p r o c u r i n g o f s e t t l e r s , but i n r e t u r n f o r the c a n c e l l a t i o n o f t h i s c l a u s e the company l a t e r surrendered  525,000 a c r e s .  2  A f u r t h e r p r o v i s o i n the  1. supra, 24, 25. 2. L o v e t t , i i . A.. Canada and :tne Grand Trunk, 1924, p. 161.  agreement j.dded  that u n t i l t h e company had l o c a t e d i t s l a n d s  a d i s t r i c t 36 m i l e s broad settlement.  98.  and 200 m i l e s l o n g was c l o s e d to  On the l a n d s granted  the Grand Trunk P a c i f i c was  . g i v e n a l l the m i n e r a l s and a l l timber worth n o t i n g that t h e p o l i c y  except p i n e .  It is  of p e r m i t t i n g r a i l w a y companies  to choose t h e i r lands was a b o l i s h e d i n the U n i t e d S t a t e s some years b e f o r e , and companies there were f o r c e d to take without  choosing  the best p o r t i o n s .  lands  In 1905 the C o n s e r v a t i v e s ,  l e d by Whitney, swept the p r o v i n c e , and from t h i s time u n t i l the completion o f the road the C o n s e r v a t i v e s were i n power. f u r t h e r s u b s i d i e s were granted, nor were any branch  No  lines built  in this province. In Manitoba the C o n s e r v a t i v e p a r t y maintained a c l e a r m a j o r i t y d u r i n g these y e a r s .  I t was a government which  favoured much r a i l w a y b u i l d i n g , and Premier R o b l i n i s r e c o g n i z e d as c l o s e l y 1901  connected  w i t h the Canadian Northern.  In  the Manitoba government r e q u i r e d a 999 year l e a s e a t a  payment of $300,000 a year of the 354 m i l e s i n Manitoba which belonged  t o the Northern P a c i f i c Railway.  then l e a s e d to the Canadian Northern  Railway.  doubt R o b l i n favoured the Canadian Northern especially  with guarantees,  obtained lowered r a t e s . Manitoba branch The  These l i n e s were 1  There i s no  i n many ways,  and i n r e t u r n he demanded and  It i s significant  that there was no  l i n e s u b s i d i a r y to the Grand Trunk P a c i f i c . p r o v i n c e s of A l b e r t a and Saskatchewan were n o t  1. F o u r n i e r , L. T., Railway N a t i o n a l i z a t i o n i n Canada, Toronto 1935, 32.  formed u n t i l 1905. ments.  The  In t h a t year both e l e c t e d L i b e r a l  premier o f Saskatchewan was  remained i n o f f i c e while the r a i l w a y was premier of A l b e r t a was because of a s p l i t  A.'C.  govern-  Walter S c o t t  who  being b u i l t .  Rutherford u n t i l  1910,  The  when,  i n the p a r t y , A. L. S i f t o n succeeded  him.  -These governments a s s i s t e d . t h e r a i l w a y i n a l l c o n c e i v a b l e ways, not the l e a s t of which was Branch L i n e Company, and  the f o r m a t i o n o f the  the Saskatchewan Branch L i n e Company.  A l t o g e t h e r these governments guaranteed mortgage bonds.  Alberta  f16,786,440 of  first  In c o n n e c t i o n with these p r o v i n c e s i t must  be remembered that the Canadian  P a c i f i c Railway  was  very  powerful i n the south, and the i n f l u e n c e o f the r a i l w a y s i n p o l i t i c s i n these p r o v i n c e s i s very marked.  An  interesting  example i s c i t e d i n the P r i n c e A l b e r t H e r a l d i n 1908 town which had been h e l d back f o r years and  of a  s i d e t r a c k e d by  the  Grand Trunk P a c i f i c , because i t voted C o n s e r v a t i v e . " 3  In no p r o v i n c e was Trunk P a c i f i c  the antagonism between the Grand  and the government so obvious as i n B r i t i s h  Columbia d u r i n g the e a r l y years of the company's l i f e . government there was  The  C o n s e r v a t i v e under the l e a d e r s h i p of  S i r R i c h a r d McBride d u r i n g the e n t i r e p e r i o d of b u i l d i n g . e a r l y as Mei?ch 3, 1903, "The. p r o v i n c e was  now  the V i c t o r i a C o l o n i s t  stated that,  being punished by the government at  Ottawa and the r a i l w a y f o r presuming to have a C o n s e r v a t i v e government•"  2  1. C.A.R. 1908,  202  2.  C i A . R . 1903,  373  As  100. The people as a whole f a v o r e d the r a i l w a y and t h e r e f o r e the p r o v i n c i a l government it  could not oppose i t , but  could endeavor t o make the terms as onerous as p o s s i b l e and  check the o f f i c i a l s , of the r a i l w a y i n any way p o s s i b l e w i t h out endangering the b u i l d i n g of the road.  Two e d i t o r i a l s i n  the P r i n c e Rupert Empire are e n l i g h t e n i n g , the one beacuse i t l e a v e s no. doubt i n the mind o f the reader as to the p o l i t i c a l a f f i l i a t i o n s o f the newspaper,  and the other because i t sum-  marizes the a t t i t u d e of the p r o v i n c i a l governments to t h e railway.  On June. 12, 1909, i s to be found t h i s t e r s e b u t  d e f i n i t e remark, " E v e r y t h i n g the Grand Trunk Railway has done west o f Winnipeg has been done i n a h e l l of a way," and the other statement, w r i t t e n on May 1, 1909, r e a d s , "Mackenzie and Mann have announced  that they w i l l extend to Vancouver.  I t i s g e n e r a l l y supposed that a d e a l has been arranged w i t h Premier McBride.  Mackenzie and Mann a r e s o l i d with the gov-  ernment of O n t a r i o , which i s C o n s e r v a t i v e . government  Theyown the  of Manitoba, which i s C o n s e r v a t i v e .  of B r i t i s h Columbia i s C o n s e r v a t i v e , hence The f i r s t  The government  friendly."  statement i s too p r e j u d i c e d , as there i s  no doubt the Grand Trunk P a c i f i c d i d some f i n e work i n the west,but, as w i l l be shown i n the next few pages, they a l s o d i d some that was f a r from c r e d i t a b l e . When t h e a c t u a l c o n s t r u c t i o n of the r o a d was begun it  was d i s c o v e r e d , much to the dismay of B r i t i s h Columbia,  that there was no clause which f o r c e d the r a i l w a y to b e g i n at the western end. T h i s meant that the e n t i r e l i n e  could  be b u i l t  from Winnipeg westward, which would not only delay  the c o n s t r u c t i o n i n B r i t i s h Columbia, but would a l s o mean a great l o s s o f business to the people of the p r o v i n c e , especi a l l y i n the c i t i e s of the southern c o a s t . Pacific  The Grand Trunk  sought t o use t h i s f a c t to b l a c k m a i l Premier McBride  and the government, and to make them g r a n t e i t h e r a l a r g e cash s u b s i d y or land g r a n t . Assembly was  In 1905, while the L e g i s l a t i v e  s i t t i n g , F. W. Morse, v i c e - p r e s i d e n t o f the com-  pany, spent f i v e weeks i n V i c t o r i a , o b v i o u s l y A p p a r e n t l y h i s demand was  lobbying.  a grant of 15,000 a c r e s per m i l e to  abut on the r a i l w a y , which the company agreed to s e l l a t the p r i c e s asked by the government, namely $1.00, $2.50, and $5.00 an a c r e .  1  As i t was estimated that there were roughly  400  m i l e s o f l i n e i n B r i t i s h Columbia, the grant under these terms would have t o t a l l e d 6,000,000 a c r e s .  The government  told  him p l a i n l y that he would r e c e i v e no subsidy, whereupon  he  remarked, "I am s o r r y that the people o f B r i t i s h Columbia have not s i g n i f i e d a d e s i r e to co-operate wrth u s . "  2  i n March  23  the government r e a f f i r m e d i t s a t t i t u d e by o f f i c i a l l y announcing that there would be no s u b s i d i e s at a l l from v i c t o r i a d u r i n g that s e s s i o n .  T h i s was t e n days a f t e r Morse's naive statement  that the r®ailway intended to b u i l d from e a s t to west, but would s t a r t  i n the west i f i t obtained a good subsidy from  B r i t i s h Columbia.  Could a n y t h i n g "savor more o f a holdup"  than t h i s statement?  To the c r e d i t o f R i c h a r d McBride, i t must  1. Vancouver D a i l y P r o v i n c e , March 11, 2. Vancouver World. February 27, 1905.  1905.  102. be r e a l i z e d and  that he  found a way  was  not stampeded by  the t h r e a t s of Morse,  to o b t a i n the r a i l w a y without  submitting  to  h i s demands. F o i l e d i n h i s demands, Morse p e t u l a n t l y l e f t province cover  the  determined not to b u i l d the l i n e from the west.  the obvious reason, he  i s s u e d t h i s statement to  Winnipeg Free P r e s s on March 27, to begin at the western end, power, b r i d g e and  1905,  To  the  " I f c o n s t r u c t i o n were  a l l the r o l l i n g stock, motive  t r a c k m a t e r i a l s would have to be shipped  the coast over a r i v a l road and of s e v e r a l hundred m i l e s .  to  sent n o r t h by water a d i s t a n c e  Again i f the l i n e were b u i l f from  the east to the west, settlement  would f o l l o w the l i n e , which  would be a revenue producer as f a s t as i t was  constructed."  T h i s i s very p l a u s i b l w t a l k , but not p l a u s i b l e enough to hide the r e a l  reasons.  Premier McBride, however, found h i m s e l f i n a difficult but had It  position.  lost  Apparently  he had  saved the  land  the agreement of the r a i l w a y to b u i l d  from the west.  speaks much f o r the p o s i t i o n he h e l d t h a t he was  s u c c e s s f u l i n the e l e c t i o n s of 1906.  grant  again  however, a weapon soon  appeared by which he could f o r c e the r a i l w a y to b u i l d from the P a c i f i c end.  I t was  t r y i n g to o b t a i n p o s s e s s i o n  o e r t a i n I n d i a n r e s e r v e s , e s p e c i a l l y fchose near Kaien and  to do t h i s i t must have the consent of the  government.  T h i s was  end. 1.  The  528.  success-  begun from the B r i t i s h Columbia  f i n a l agreement was  C.A.R., 1908,  Island,  provincial  the weapon which McBride used  f u l l y , so that the road was  of  signed February 28,  1908.  1  By  it  the Grand Trunk P a c i f i c Railway r e c e i v e d 32,000 a c r e s on  the Tsimpsean r e s e r v e , f o r which i t p a i d $2.50 an a c r e .  1  The  land was to be s u b - d i v i d e d and the company was t o pay t h r e e q u a r t e r s of the cost of s u b d i v i d i n g .  The company f u r t h e r  agreed t o buy s u p p l i e s i n l o c a l markets i f p o s s i b l e . the p r o v i n c e conceded the r i g h t  For t h i s  of way, not exceeding 100  f e e t i n width, from the border to the c o a s t , and gave exempt i o n from t a x a t i o n u n t i l December 31, 1921.  There was an  understanding that the r a i l w a y was t o s t a r t b u i l d i n g from the west c o a s t .  T h i s agreement  meant a grant o f approximately  1,000,000 a c r e s o f l a n d , which was f a r below the 6,000,000 adked by Morse i n 1905. Although McBride had f o r c e d the Grand Trunk P a c i f i c to agree t o his. demands, and had i n s i s t e d on the r a i l w a y b e i n g built  i n B r i t i s h Columbia, he p r e f e r r e d the Canadian Northern  Railway, and encouraged '1$ by h i s f a v o r a b l e a t t i t u d e .  Before  the e l e c t i o n of 1909, McBride entered i n t o n e g o t i a t i o n s with the Canadian Northern and h i s a c t i o n s p r e s e n t an i n t e r e s t i n g c o n t r a s t to h i s treatment o f Morse and the Grand Trunk P a c i f i c He s t a t e d , "The government w i l l welcome any f a i r and e q u i t a b l e arrangement  between the Canadian Northern and t h i s p r o v i n c e .  I t i s a t h o r o u g h l y Canadian system, c o n t r o l l e d by Canadians, I t has done a great d e a l f o r the farmers of Manitoba, Saskratchewan,  and A l b e r t a , and may do a great d e a l f o r B r i t i s h  Columbia.  A s s i s t a n c e w i l l be n e c e s s a r y but the i n t e r e s t s  1.  By the law of B r i t i s h Columbia one-quarter of t h i s r e v e r t e d back t o the p r o v i n c e .  land  104. and r i g h t s of the p r o v i n c e w i l l be s e r v e d . "  1  Donald Mann was  at t h i s time i n V i c t o r i a , aid, without any waste o f time, negot i a t i o n s at once proceeded.  By the agreement  the B r i t i s h  Columbia government guaranteed $21,000,000 f o r 600 m i l e s of line.  R. G. Tatlow, the M i n i s t e r o f F i n a n c e , and F. J . F u l t o n ,  the Commissioner of Lands, r e s i g n e d because they p r o t e s t e d that p r o v i n c i a l a i d was unnecessary as the Canadian Northern would b u i l d to the coast anyway.  As i n the case of the  Grand Trunk P a c i f i c agreement, the terms were kept s e c r e t u n t i l public opinion forced t h e i r  publication.  While they supported the Canadian Northern, McBride and the people of B r i t i s h Columbia d i d not discourage the Grand Trunk P a c i f i c , because they r e a l i z e d  that i t was a  necessary step towards the f u l l development of the p r o v i n c e . In 1909 McBride s a i d , "By no means do I approve of the r e c k l e s s and u n b u s i n e s s l i k e p o l i c y of the f e d e r a l government with regard to t h i s company. B r i t i s h Columbia.  N e v e r t h e l e s s we welcome the l i n e here i n The i n t e r e s t s of the Grand Trunk P a c i f i c  p are almost i d e n t i c a l w i t h the i n t e r e s t s o f the p r o v i n c e . " There was never the c l o s e n e s s between B r i t i s h Columbia and the Grand Trunk P a c i f i c  that there was with the other r a i l w a y ,  l a r g e l y because the n o r t h e r n r a i l w a y was a L i b e r a l while B r i t i s h Columbia was a C o n s e r v a t i v e p r o v i n c e . people d i d not f o r g e t that S i r W i l f r e d L a u r i e r had  project, The sacrificed  the B r i t i s h Columbia seats i n the f e d e r a l house d u r i n g the e l e c t i o n s of 1908 because he would not support the e x c l u s i o n 1. C. A. R. 1909, 587. 2. Vancouver D a i l y P r o v i n c e , January 26, 1909.  of  O r i e n t a l s which would have compromised  h i s imperial policy.  Moreover, the L a u r i e r government had shown t h e i r  antagonism  towards the western p r o v i n c e when they " d e c l i n e d  to have any  share i n t h e . . . e x t e n s i o n through B r i t i s h Columbia to the coast With the e l e c t i o n of the C o n s e r v a t i v e s under Robert Borden to powsr i n the f e d e r a l house  i n 1911,  Columbia &nd Manitoba r e c e i v e d t h e i r rewards.  British  Both R i c h a r d  McBride and R o b l i n d e c l i n e d p o s i t i o n s i n the c a b i n e t .  Large  loans were made d u r i n g the next few years to enable the way  to f i n i s h .  extension.. .in  "A cash subsidy was 1913 i t  granted to B r i t i s h  railColumbi  [the f e d e r a l government voted a  cash subsidy of $15,645,000 on the d i s t i n c t understanding  p that t h i s would make i t p o s s i b l e t o complete the r o a d . " The McBride government a l s o proved much more g r a c i o u s i n guaranteeing the bonds of the Grand Trunk P a c i f i c .  With  this  a s s i s t a n c e the r a i l w a y was enabled to complete i t s main l i n e in B r i t i s h  Columbia. From the b e g i n n i n g to the end the Grand T u n k r  P a c i f i c p r e s e n t s a s o r d i d p i c t u r e of p o l i t i c a l patronage. Begun as a L i b e r a l scheme, i t was completed under the Cons e r v a t i v e s , and both p a r t i e s used i t f o r t h e i r own  ends.  P r o v i n c e by province the same s t o r y i s to be seen.  The  rail-  way must be c o n s t r u c t e d to please the adherents o f the p a r t y i n power, i t must be used as a p o s s i b l e source of new  con-  s t i t u e n c i e s , and i t must be used as a weapon to inconvenience the  opposition.  1. S k e l t o n , 0. D., 2. i b i d . . 420.  The great u n d e r l y i n g problem f a c i n g those op.cit.,  420.  106. who t r i e d t o save the r a i l w a y i n i t s d e c l i n e was the rescue o f the r a i l w a y from p o l i t i c s and o f p o l i t i c s from t h e r a i l w a y . The  r a i l w a y s o f Canada were b u i l t f o r p r o f i t - m a k i n g ,  and many schemes were i n t r o d u c e d by which these p r o f i t s c o u l d be  increased.  In t h i s r e s p e c t the Grand Trunk P a c i f i c  w e l l to the f o r e .  I t was unsurpassed  scrupulousness o f i t s methods. seemed to v i s u a l i z e  i n the v a r i e t y  stands  and un-  The promoters of t h i s scheme  the whole of western Canada as t h e i r  h u n t i n g ground, to be ensnared  and robbed  at w i l l .  At times  the r a i l w a y was not averse t o going beyond t h e law, undoubtedly f e e l i n g that with i t s p a r l i a m e n t a r y support i t would not be checked.  As a r e s u l t many complaints were made r e g a r d i n g  i t s actions.  I n 1911 i t was brought  t o the a t t e n t i o n o f the  Railway Commissioners that the Grand Trunk P a c i f i c had c r o s s e d 80 highways i n A l b e r t a without the Board's consent, i n s p i t e of the f a c t  that the p e n a l t y f o r t h i s o f f e n c e was l e g a l l y a  f i n e of $25.00 f o r each o f f e n c e .  1  A s i m i l a r case to t h i s  was the p r o t e s t to the commissioners by the c i t i z e n s of North Edmonton r e g a r d i n g the c l o s i n g  of the Fort Saskatchewan T r a i l .  The r a i l w a y had c l o s e d the t r a i l by b u i l d i n g a c r o s s i t . The Brand Trunk P a c i f i c had progressed the consent of the Board  in this  section  without  and without p r e s e n t i n g p l a n s ,  omissions of which v/ere both i l l e g a l .  o^nis  N e g o t i a t i o n s continued  f o r three years before the Grand Trunk P a c i f i c gave s i g n s o f actually  a g r e e i n g t o the r e q u e s t s of the Board and the c i t i z e n s .  1. The Aldermere I n t e r i o r News, A p r i l 7, 1911.  107. However, the agreement d i d not come soon enough to prevent commissioners handing down a judgment. of C h i e f Commissioner Mabee, who  T h i s was  the  i n the words  at a l l times appeared to have  •no f e a r of the Grand Trunk o f f i c i a l s , and demnation bears p a r t i a l r e p e t i t i o n .  He  whose s t r o n g conbegins,  "This d e a t h bed repentance never appeals to me s t r o n g l y , " and continues, "I am f o r c e d to say I t h i n k t h i s matter i s q u i t e i n l i n e with many other ma matters t h a t your company has had w i t h the Railway Board, and I t h i n k i t i s high time that some steps should be taken to f i n d out whether the e n g i n e e r i n g department o f the Grand Trunk P a c i f i c i s s u b j e c t to the Railway A c t , or whether i t has a procedure unto i t s e l f u n c o n t r o l l e d by the law t h a t the other companies are supposed to be governed by....Your road i s there i l l e g a l l y . . . a new order r e q u i r i n g the r a i l w a y to f i l e w i t h i n t h i r t y days d e t a i l e d p l a n s and complete i t w i t h i n t h i r t y days a f t e r approval. The p e n a l t y f o r f a i l u r e s h a l l be $100 a day f o r every day's d e f a u l t . . . a n d I w i l l undertake to see i t w i l l be imposed and e n f o r c e d . " ! In 1908  the m u n i c i p a l i t y of M i n i o t a . i n Manitoba  asked that the Grand Trunk p a c i f i c put  i n overhead i n s t e a d  o f l e v e l c r o s s i n g s , because a t that p o i n t the r a i l w a y runs f o r a mile was  through a deep cut arid t r a i n s  f u r t h e r pointed  out  Grand Trunk P a c i f i c had  could not be seen.  that i n i t s second c r o s s i n g  It  the  d i v e r t e d the highway without  securing  2 a u t h o r i t y from the M u n i c i p a l i t y In 1908  first.  F o r t W i l l i a m p r o t e s t e d at the d e s i r e o f  the r a i l w a y to run a l a r g e spur; t r a c k along Weebing Avenue. For  i t s case the c i t y s t a t e d t h a t the only r e a s o n the  Trunk P a c i f i c along i t had  gave f o r wanting the s t r e e t was been reserved  for industrial  1. S e s s i o n a l Papers 2 0 ( c ) , 1913,  330  2. Winnipeg Free P r e s s . September 14,  t h a t the  s i t e s and  --338. 1908.  Grand land  i t wanted  to get the b u s i n e s s from them. owners of the property p r i v a t e property  I t was  shown, however, t h a t the  had a l r e a d y r e s e r v e d  a r i g h t of way  along  f o r the purpose of l a y i n g a spur t r a c k , and  that the p l a n of the r a i l w a y would p r a c t i c a l l y keep the c i t y away from the r i v e r  frontage.  1  Another p r o t e s t which r e v e a l e d escape from the s p i r i t way  of the o r i g i n a l c o n t r a c t of the  came from the C e n t r a l Saskatchewan  protested  an i n t e r e s t i n g l e g a l  that the s e r v i c e was  Boards of Trade,  not adequate.  t h i s the Railway Commission p o i n t e d  out that  u n t i l the western d i v i s i o n should  who  In r e p l y to the Act s t a t e d  that "period of c o n s t r u c t i o n " means the time which elapse  rail-  should  be completed,  and  u n t i l the end of that time the r a i l w a y d i d not have to open for  traffic.  I t had r e c e i v e d p e r m i s s i o n  to c a r r y  settlers  and t h e i r e f f e c t s on the c o n s t r u c t i o n t r a i n s , and a l s o to run a t r i - w e e k l y s e r v i c e of mixed t r a i n s , but passenger t r a i n s were not r e q u i r e d .  regular  In s p i t e of t h i s  the  r a i l w a y was abusing i t s p r i v i l e g e of c a r r y i n g s e t t l e r s by 2 running e x c u r s i o n  t r a i n s to the  east.  "An e n l i g h t e n i n g p i c t u r e o f the methods of the Grand Trunk P a c i f i c from Saskatoon.  i n crushing  i t s s m a l l c o m p e t i t o r s comes  Here the company had an agreement with a  -bus company f o r the e x c l u s i n e r i g h t of p i c k i n g up f a r e s from its station.  E. A. P u r c e l l , an independent cab d r i v e r ,  attempted to o b t a i n passengers t h e r e , and 1. Winnipeg Free P r e s s , J u l y 21, 1908. 2. S e s s i o n a l Papers 20 ( c ) , 1911,  312.  the company agent  109 used s e v e r a l methods to prevent h i s s u c c e e d i n g . P u r c e l l was  not allowed to back up  f o r c e d any p r o s p e c t i v e to him.  of h i s cab  first  to the s t a t i o n p l a t f o r m ,  passengers to walk 100  L a t e r the agent p i l e d up  At  t r u c k s and  Wich  f e e t through  mud  baggage i n f r o n t  so that customers were f u r t h e r i n c o n v e n i e n c e d .  P u r c e l l protested  to the Railway Commission, and,  in giving  the d e c i s i o n i n h i s f a v o r , Judge Mabee commented, "Nobody but  your company t r i e s to do  i l l e g a l t h i n g s a l l the time.'*  These are a s c a t t e r e d few  examples, but  1  they are  t y p i c a l of the high-handed a c t i o n o f the Grand Trunk P a c i f i c . In other ways t h e i r methods of making money were even more impudent.  An e x c e l l e n t example of t h i s i s the expense account  submitted to the government on June 30, claimed  to have spent $986,293, but  Shannon, d i s a l l o w e d  Mr.  S c h r e i b e r , however, o v e r r u l e d him and  was  railway  The  government engineer, allowed the whole  Some of the f i g u r e s i n c l u d e d i n t h i s estimate,  supposed to be  which  the "cost of c o n s t r u c t i o n " , were $26,000  f o r l e g a l expenses and  |46,000 f o r t e r m i n a l  $20,000 went to Mr. Morse and whom we  The  the government a u d i t o r ,  Mr.  olaim.  $162,000.  1905.  land, of v/hich  $26,000 to P e t e r L a r s e n (of  a h a l l hear l a t e r i n the K a i e n I s l a n d d i s p u t e , but  supposedly gained nothing disallowed  from that d e a l ) .  who  Other f i g u r e s  by Shannon i n c l u d e d |3,000 as the expenses of  Morse and Hays f o r a t r i p to the P a c i f i c c o a s t , month f o r a clergyman's s e r v i c e s , |325  to Mr.  |125  per  Wainwright f o r  1. p r i n c e Rupert D a i l y News, December 29, 1911. t r e a t e d f u l l y i n S e s s i o n a l Paper 2 0 ( c ) , 1913,  The case i s p. 352.  " a d v e r t i s i n g " (of which there  i s no r e c o r d ) , $1,132 f o r Hays*  t r i p to England, §4,661 f o r the s a l a r i e s of the London o f f i c i a l (most of whom were r e a l l y Grand Trunk o f f i c i a l s ) , for  d i r e c t o r s * f e e s , and  so on.  The  $2,433.33  f i r s t estimate  was  drawn hy the company, a f a c t which the Conservatives loud to c r i t i c i s e , and a second statement was Shannon s t i l l d i s a l l o w e d f70,000.  with-  were  i s s u e d , o f which  I t i s s m a l l wonder that  Walker, the s e n i o r a u d i t o r of the Grand Trunk P a c i f i c , for  the Mediterranean i n the middle of the  left  investigation.  It  i s s i g n i f i c a n t , too, that S c h r e i b e r , a L i b e r a l appointee, let  the f i r s t estimate  permitted imate  pass, and  that the L i b e r a l p a r t y  the Grand Trunk P a c i f i c to withdraw the f i r s t e s t -  entirely.  1  Although the r a i l w a y f a i l e d f l e e c e the government, i n 1911  i n t h i s attempt to  they were more s u c c e s s f u l .  -As the r e s u l t of a d e c i s i o n of the Railway Commission ing  regard-  an i n t r i c a t e p o i n t connected with the Grand Trunk P a c i f i c  Act of 1904,  the r a i l w a y was  T h i s sum  no connection  granted  had  awarded the sum  of $10,080,000.  with the s u b s i d i e s which were  from time to time, and was  therefore p r a c t i c a l l y a  gift.  As i n a l l r a i l w a y b u i l d i n g , most of the money was made from land s p e c u l a t i o n . the Grand Trunk P a c i f i c and  I t must not be understood that i t s s u b s i d i a r i e s were the  only  ones to make f o r t u n e s by t h i s method as a r e s u l t of the Many other o r g a n i z a t i o n s and 1. r i . C  D. March 20,  1907,  v  railwsy  i n d i v i d u a l s attempted to take .• 5027 f f .  2.. C.A.R.1912, 124. The exact wording of the award w i l l be found quoted at t h i s p l a c e , but i s too i n t r i c a t e f o r t h i s study.  111. advantage of the r i s i n g v a l u e s  of l a n d , and  heavy throughout the whole area Brewster, a man of g r a f t ,  who  was  served  speculation  by the r o a d .  noted f o r h i s honesty and  summarized the extent  i n B r i t i s h Columbia alone up  to which t h i s had  to 1914  was  h.  G.  intolerance been done  as f o l l o w s :  A l o n g the l i n e s of the Grand Trunk P a c i f i c and P a c i f i c Great E a s t e r n , 144 s y n d i c a t e s have secured 1,284,720 acres of the best a g r i c u l t u r a l l a n d s . . . . These are h e l d by s p e c u l a t o r s . 67 of these s y n d i c a t e s average 15,000 acres each. The government r e c e i v e s from these a l i e n a t e d lands...about enough to run the government f o r about f i v e months. We get o n l y $450,000 taxes from the l a n d , whereas at f o u r percent i t ought to b r i n g over #1,000,000 a year. 1  Another r e p o r t ural One  t e l l s t h a t , "A l a r g e p o r t i o n of the  lands along  the  l i n e are  Winnipeg s y n d i c a t e  There i s a tax of 25  to $20  cents  an a c r e . "  l a r g e nor as g r a s p i n g  speculators.  took 35,000 a c r e s at e i g h t  2  dollars....  per annum per acre on w i l d  however....The p r i c e r e a l i z e d from $12  i n the hands of  agricult-  from the s a l e of lands  i s often  None of these s p e c u l a t o r s were as  as the Grand Trunk P a c i f i c .  I t i t s attempts to g a i n a p r o f i t from land l a t i o n , the r a i l w a y faced s e v e r a l problems. competition grants  of other  land,  specu-r  These were  s p e c u l a t o r s , the o b t a i n i n g  the  of land  from,the governments, the d e a l i n g w i t h thos.e i n d i v i d -  u a l s or groups who wanted, and achieving  already  owned the land which the  railway  the marketing of t h e i r s i t e s f o r h i g h p r i c e s .  these r e s u l t s , the company had  i n t h a t i t knew where the r a i l w a y was  one  great  to r u n , and  1.  P r i n c e Rupert D a i l y News, A p r i l 4,  2.  Winnipeg Free P r e s s , August 27,  1914.  1910.  In  advantage i t had  the  112. power of c r e a t i n g s t a t i o n s i n p l a c e s s u i t a b l e to i t s needs. Sometimes  the l i n e ran through, o r c l o s e t o , a settlement  that was a l r e a d y i n e x i s t e n c e before the r a i l w a y was and i n t h i s  begun,  case the problem was to gouge as l a r g e an amount,  i n e i t h e r land or money, from the m u n i c i p a l i t y as p o s s i b l e . At other times the r a i l w a y wished to e n t e r some c i t y which was a l r e a d y e s t a b l i s h e d , and i n t h i s  case the problem was to  m a i n t a i n a b l u f f that i t would not b u i l d r e c e i v e d a subsidy.  there u n l e s s i t  Many examples are to be found of the  g r a n t i n g of s u b s i d i e s to the r a i l w a y by m u n i c i p a l i t i e s , or the "squeezing** of those which were slow i n p a y i n g .  Examples  can a l s o be found o f methods of p e r s u a s i o n which were  little  more than p o o r l y - d i s g u i s e d b l a c k m a i l . One o f the f i r s t  towns which would n a t u r a l l y  expect to be on the Grand Trunk P a c i f i c was Brandon, Manitoba, e s p e c i a l l y i n view of the f a c t that i t s member was 1 S i f t o n , and he had p r a c t i c a l l y promised i t . w e l l to observe what a c t u a l l y did happen  Clifford  But i t i s  there.  In 1905 and 1906 F. W. Morse t r a v e l l e d through Western Canada a s c e r t a i n i n g the a t t i t u d e of the d i f f e r e n t c i t i e s towards the Grand Trunk P a c i f i c , o r , i t would be more t r u t h f u l to say, the o f f e r s of the d i f f e r e n t c i t i e s to the r a i l w a y . A p p a r e n t l y most of them were amenable, but Brandon, probably t r u s t i n g the word o f S i f t o n , proved s t u b b o r n .  The  r e s u l t was the statement of Morse on August 8, 1906, which i s a p o o r l y d i s g u i s e d t h r e a t , t h a t the coming of the r a i l w a y 1.  H. C. D., March 27, 1912, 6324  113. to Brandon would depend on the improved a t t i t u d e of the as at that time i t was i n the way  the only western town throwing o b s t a c l e s  of railway entrance.  or e l s e had  The  1  c i t y proved o b s t i n a t e ,  too much f a i t h i n the words of a p o l i t i c i a n ,  the r e s u l t was  and  that because of the " l a y of the l a n d and  g e n e r a l d i r e c t i o n of the road,"  the same a t t i t u d e ) , and  branch l i n e had been b u i l t brought pressure  the  the main l i n e d i d not pass  2  through Brandon (a l e s s o n to any had  citizens,  other  towns which might have  three years to the town.  l a t e r not even a In J u l y 1909  Brandon  to bear upon the r a i l w a y i n an attempt to  have the t e n miihe branch l i n e b u i l t from J u s t i c e by 3  that  v  autumn  o n l y to l e a r n two  [The Grand Trunk PacifiCjf  months l a t e r t h a t , " I t i s our poJ.ioy policy  to b u i l d a road  the bonds are guaranteed, and on t h i s account we b u i l d i n t o Brandon t h i s f a l l . " ^  The  l i n e was  f i r s t where will  built  not  in  1910,  but d i d not prove to be as v a l u a b l e as the c i t y  expected  because i t was  chief obstacle  was  not b u i l t  through the c i t y .  The  the b u i l d i n g of a b r i d g e a c r o s s the A s s i n i b o i n e R i v e r .  In 1912  the f e d e r a l government i n t e r c e d e d , and  subsidy on both l i n e and b r i d g e . that the r a i l w a y was  t o o b t a i n 15$  The  granted a.  o r i g i n a l agreement  of the amount spent  b r i d g e as long as t h i s does not exceed $20,000, but 1  «  C. A. B.  1906,  the  i n an  112.  2.  ibid.  3.  Winnipeg Free F r e s s , J u l y 28,  4.  CM.  t  oh  was  112. 1909.  Hays,.quoted i n Winnipeg Free P r e s s , September 6,1909.  attempt to s e t t l e the d i f f e r e n c e between the c i t y and the r a i l w a y the c o n t r a c t was changed to 2.5$ of the cost of the b r i d g e w i t h no l i m i t a t i o n on the t o t a l .  Thus, a g a i n ,  1  after  a wait o f s i x y e a r s , the Grand Trunk P a c i f i c emerged from the s t r u g g l e w i t h an e x c e l l e n t  c o n t r a c t f o r i t s e l f , and Brandon  was f o r c e d to s u f f e r f o r i t s "stubbornness". Most c i t i e s v/ere not as d i f f i c u l t ever, and d i d co-operate w i t h t h e r a i l w a y .  as Brandon-, howThose c i t i e s which  hoped t o be d i v i s i o n a l p o i n t s or t e r m i n i 'were e s p e c i a l l y f o r a bonus. and Edmonton.  liable  Three e x c e l l e n t examples a r e F o r t William^Regina,• The terminus on Lake S u p e r i o r had been  very vague by the c h a r t e r , and the c i t y the award was F o r t W i l l i a m .  left  to be honoured with  The terminus was made at M i s s i o n  I s l a n d on March 30, 1905, which enabled the r a i l w a y t o have 7 m i l e s o f water f r o n t a g e , and f o r t h i s the c i t y p a i d a bonus of $300,000 i n i n s t a l l m e n t s , 1600 a c r e s which were to be exempt from m u n i c i p a l t a x a t i o n f o r 15 years, the r i g h t s of c l o s i n g up and u s i n g c e r t a i n s t r e e t s , and $50,000 towards the Kaministiq.ua B r i d g e .  I n Regina an agreement was made between  the c i t y and the Grand Trunk P a c i f i c Branch L i n e s Company i n 1912.  I n r e t u r n f o r making t h i s a d i v i s i o n a l p o i n t , and  b u i l d i n g a s t a t i o n and h o t e l c o s t i n g $1,000,000, t h e c i t y bestowed on the r a i l w a y a r i g h t  of way and a grant o f land.  In.1905 the company agreed t o make Edmonton a d i v i s i o n a l p o i n t between Winnipeg and the c o a s t , f o r which i t r e c e i v e d a cash bonus of $100,000 and other c o n c e s s i o n s .  In the  f o l l o w i n g year the Grand Trunk P a c i f i c agreed to purchase 1. H.C.D., March 26, 1912, 6060.  800  a c r e s o f land i n the A l b e r t a c a p i t a l f o r yards,  station  grounds, and so f o r t h , and the c i t y c o u n c i l granted  a bonus  of $400,000 i n cash or debentures as w e l l as c e r t a i n exemption from t a x a t i o n . In B r i t i s h Columbia the r a i l w a y found the land much more d i f f i c u l t was  I n d i a n r e s e r v e , and as the land s p e c u l a t o r s had been very  active, was  to o b t a i n than on the p r a i r i e s as much of i t  wear the j u n c t i o n of the F r a s e r and Nechaco R i v e r s  the o l d settlement  of F o r t ..George.  When the r a i l w a y  approached t h i s point i t d i s c o v e r e d t h a t the N a t u r a l Resources S e c u r i t y 'company, an o r g a n i z a t i o n i n f l u e n c e d by George Hammond o f Vancouver, c o n t r o l l e d about  2,po seres J  i n the t o w n s i t e .  In  an e f f o r t t o escape from t h i s group the r a i l w a y attempted to purchase an Indian reserve north-east b u i l d i t s own townsite George.  1  o f F o r t George and to  t h e r e , which was t o be named P r i n c e  On A p r i l 29, 1910, i t p u b l i s h e d  papers a p l a n o f the new townsite  i n the l o c a l news-  showing the r a i l w a y  passing  through the Indian r e s e r v e , and with the s t a t i o n i n t h i s section.  However, owing perhaps to the i n f l u e n c e of -Hammond's  a s s o c i a t e s , the Indians proved l o a t h to s e l l . were c a r r i e d on through Dr. John B c D o u g a l l ,  Negotiations  an o f f i c i a l o f  the Indian department a t Ottawa, and the Grand Trunk P a c i f i c o f f e r e d $68,000 to the Indians  f o r the abandonment of t h e i r  r e s e r v e , and an a d d i t i o n a l $10,000 to enable them t o buy new land.  As the r e s e r v e t o t a l l e d 1,300 a c r e s the p r i c e was  approximately  $50 p e r a c r e .  The I n d i a n s , however, r e f u s e d t o  1. Nicknamed i n advertisements "The Winnipeg o f B r i t i s h Columbi There i s an i n t e r e s t i n g account o f F o r t George i n t h e Vancouver D a i l y P r o v i n c e , August 4, 1911.  116. s e l l , and the reason was given t e r s e l y i n the phuase o f one o f them who i s r e p o r t e d t o have s a i d , "White man ketchum r e s e r v e •'$50 an a c r e , solium l o t $50; Indian dam f o o l s e l l u m . "  Apparent-  1  l y even the ignorant n a t i v e s were l e a r n i n g from the white man. F u r t h e r o f f e r s were made hy t h e company, and they now approached the Indians through Father Coco l a .  Gradually  they began to adopt a f a v o r a b l e a t t i t u d e towards the company's p r o p o s a l s , u n t i l f i n a l l y the r e s e r v a t i o n bee^ae d i v i d e d into, two  groups, one l e d hy C h i e f L o u i who d e s i r e d to s e l l ,  other hy Joseph Quail.  and the  A f t e r much p a l a v e r i n g , the former  group proved s u c c e s s f u l , and i n February an agreement was made by which the r a i l w a y agreed t o pay $15,000 a year f o r t e n y e a r s , and g i v e the Indians a new reserve o f about 750 acres 15 m i l e s east o f P r i n c e George. first  This was more than double the  o f f e r of the r a i l w a y . Now the Grand Trunk P a c i f i c found i t s e l f  opposed  by the N a t u r a l Resources S e c u r i t y Company, which had bought most of the a v a i l a b l e l a n d i n the d i s t r i c t from the o r i g i n a l s e t t l e r s , i n 1907. When the crown grants were i s s u e d to the railway, i t protested  that i t had not been g i v e n the s e c t i o n  c o n t r o l l e d by the other company, but the p r o v i n c i a l Department o f Lands upheld .was  the o r i g i n a l s e t t l e m e n t s .  T h i s land  s u b d i v i d e d by the N a t u r a l Resources S e c u r i t y Company and  developed so t h a t both the p o p u l a t i o n and number of b u i l d i n g s grew. When the Grand Trunk P a c i f i c Development Company, 1. P r i n c e Rupert O p t i m i s t , December 27, 1910.  the s u b s i d i a r y which the r a i l w a y used f o r the e x p l o i t a t i o n o f t o w n s i t e s , met a s i t u a t i o n l i k e t h i s , to give the owners 50$ i n t e r e s t  i n the townsite  f o r a c l e a r deed to t h e i r p r o p e r t y . a s s o c i a t e s r e f u s e d these  terms,  i t s g e n e r a l p o l i c y was  1  i n exchange  But Hammond and h i s  The r a i l w a y t h e r e f o r e  deter-  mine d to b u i l d i t s s t a t i o n f a r t h e r e a s t than i t had o r i g i n a l l y planned. ordered  Hammond p r o t e s t e d t o the Railway Commission and i t t h a t the s t a t i o n should be b u i l t a t the west end of  the r e s e r v e .  However, the Grand Trunk P a c i f i c appealed  d e c i s i o n and i t was r e v e r s e d ,  this  so that the s t a t i o n was b u i l t  at P r i n c e George, on the e a s t e r n end of the r e s e r v e . A f t e r t h i s the r a i l w a y proceeded with the development of the s i t e . things.  I t planned a $200,000 h o t e l among other  The l o t s were a u c t i o n e d  i n Vancouver and Edmonton i n  September, 1913. A t o t a l o f 1,175 l o t s were s o l d f o r a t o t a l sum  o f $1,293,135.  was  $10,200.  The lowest p r i c e p a i d was $120, the highest  Hazelton r a i l w a y company.  presented  a v e r y s i m i l a r problem t o the  Here a g a i n was an e s t a b l i s h e d  settlement,  but i t was not on the p r o j e c t e d l i n e of the r a i l w a y as i t was  on the n o r t h s i d e of the BuStkley R i v e r and the r a i l w a y  intended  to f o l l o w the southern  bank.  The south bank o f the  r i v e r was a t t h a t time commonly known as T a y l o r s v i l l e , but upon the purchase o f 640 acres by Robert K e l l y f o r $100,000 i t was spoken o f as the " K e l l y L o t " .  The land a d j o i n i n g  t h i s s i t e was c o n t r o l l e d by the Northern i n t e r ! or Land Company 1. Omineca H e r a l d , May 16, 1913.  on September 1, 1911.  K e l l y and  and  New  named the townsite  the land company amalgamated  Hazelton,  "the Spokane of Canada".  They immediately put l o t s on the market a t p r i c e s v a r y i n g from §150  to #500. On September 24,  1907,  the Railway Commission  given i t s s a n c t i o n to a s i t e f o r a s t a t i o n at New  Hazelton  chosen by the c h i e f engineer of the r a i l w a y company. acres of land were a l l o t t e d and  yards.  But  Railway, and t h i s was  t h i s d i d not  refused  i t was  i t a l s o had  point 851,  s a t i s f y the Grand Trunk P a c i f i c  i t proceeded to the west.  L o t s were a d v e r t i s e d  which i t named South H a z e l t o n .  to the Railway Commission, and  Hazelton.  The  When Ellison,  there, but  railway  i t s e f f o r t s towards the e x p l o i t a t i o n of a  three m i l e s to the east of New  1911,  at  E l l i s o n on a curve,  too heavy a grade f o r a s t a t i o n .  on December 19,  townsite.  to e x p l o i t a townsite  found t h a t not only was  company then turned  29.03  f o r the s t a t i o n  i t demanded a l a r g e r part of the  about three m i l e s but  i n the townsite  had  Hazelton,  known as l o t  T h i s a c t i o n was  appealed  judge Mabee gave h i s d e c i s i o n  that the s t a t i o n must be b u i l t at  New  i n making t h i s d e c i s i o n he s a i d ,  i t i s a p u b l i c scandal that a r a i l w a y c o r p o r a t i o n should go about the country and o b t a i n conveyances o f t h i s kind under f a l s e p r e t e n c e s , i f a private i n d i v i d u a l had done what t h i s company has done, he would probably land i n the p e n i t e n t i a r y . At any r a t e he ought to be i n a p e n i t e n t i a r y . The land was obtained through the g r o s s e s t d e c e i t on the p a r t of the r e p r e s e n t a t i v e s of t h i s company, and i t i s a b r e a c h of f a i t h of the worst c h a r a c t e r that they should attempt to repudiate t h e i r c o n t r a c t . 1. S e s s i o n a l Paper 2 0 ( c ) ,  1913,  373.  119. The  Grand Trunk P a c i f i c Town and Development Company  the d e c i s i o n of the commissioners, and on May Governor-General mis sionersaahd  appealed  11, 1912,  the  i n C o u n c i l c a n c e l l e d the order of the comsent i t hack to them f o r r e c o n s i d e r a t i o n .  June 22, the Railway  Sommission repeated  that the s t a t i o n should be b u i l t at New  On  i t s former d e c i s i o n Hazelton.  Thus balked the Grand Trunk P a c i f i c , d i d i t s b e s t to boost i t s own ton.  h o l d i n g s and  to r e t a r d the p r o g r e s s of New  On November 29, 1912,  a p r o t e s t was  Commission s t a t i n g t h a t the r a i l w a y was  sent to the  t h e r e , and going back.  I t was  Hazelton,  then the  t u r n i n g around  H a z e l t o n , and even a f t e r  that i t d i d not h u r r y t o e r e c t the b u i l d i n g . harass f u r t h e r the town the r a i l w a y delayed  In order to f o u r c a r l o a d s of  being sent to c o n s t r u c t a b r i d g e  across  the B u l k l e y to H a z e l t o n , so that the work on t h i s had stopped no*  f o r some time.  trains  December 20 b e f o r e the r a i l w a y  f i n a l l y chose i t s s t a t i o n s i t e a t New  timber which was  Railway  unloading a l l i t s  t r a i n s at S e a l y , three m i l e s to the west, and were running empty to the "Y?* at New  Hazel-  Thus was New  to; be  H a z e l t o n punished  for  "co-operating'* with the r a i l w a y . These two  c i t i e s , P r i n c e George and New  Hazelton,  are notable i n the development o f the Grand Trunk P a c i f i c s i n c e they show the r u t h l e s s n e s s and covetousness who  built  i t , and r e v e a l t h a t i t was  s p i r i t " which imbued the men cons true t i o n .  who  of  those  not a l t o g e t h e r a " n a t i o n a l  sere responsible f o r i t s  Can  Canada owes much to the Grand Trunk P a c i f i c  Railway,  and  i t s i n f l u e n c e i n the e a r l y y e a r s of the  was  tremendous.  twentieth  I t i s unfortunate that such a g r e a t  which d i d so much towards the opening and  century organization,  development of  Dominion, should have used i t s s t r e n g t h so s e l f i s h l y . company which might have l e f t knowledge that i t had s i n g l e group, l e f t c o r r u p t i o n , and  as a monument to i t s e l f  A the  done more good f o r Canada than any  itself  i l l - u s e d power.  bankrupt?  people whom i t had with i t s e v i l s ?  other  i n s t e a d a s o r d i d memory of e x p l o i t a t i o n , Does i t not  seem  justice  that an o r g a n i z a t i o n which used the methods of t h i s one find  the  But  i s i t not  wronged should  lamentable that the  very  be f o r c e d to burden themselves  I t i s only to be hoped t h a t the f u t u r e  recompense the people of Canada f o r t h e i r making t h i s l i n e a great r a i l w a y and the development of the n a t i o n ' s  should  an  s u f f e r i n g s by  will yet  important f a c t o r i n  u n i t y and  prosperity.  Chapter  VI.  The Romance and  S t r u g g l e o f Railway B u i l d i n g  In i t s magnitude, the d i f f i c u l t i e s which i t f a c e d , and  the romance of i t s h i s t o r y , the b u i l d i n g of the Grand  Trunk P a c i f i c Railway  c h a l l e n g e s the i m a g i n a t i o n .  a c o l o r f u l e p i c of s t r u g g l e , danger, and with the t a l e of any of the great r a i l w a y The was  I t presents  suspense, comparable ventures.  a c t u a l c o n s t r u c t i o n o f the Grand Trunk P a c i f i c  an immense tasTr and r e q u i r e d the f i n e s t type of  i z a t i o n and p l a n n i n g .  I t s main l i n e was  Winnipeg t o P r i n c e Rupert,  1758  organ-  m i l e s long from  a tcememdous undertaking f o r a  young country with a p o p u l a t i o n of l e s s than s i x m i l l i o n ^  and  two  other great r a i l w a y s i n the process of c o n s t r u c t i o n .  It  was  b u i l t i n ten years, which means an average o f one-half a  m i l e each day. and  As many as 10,000 men  worked on i t at one  in..1913 B r i t i s h Columbia alone had  steamshovels and over 600 being b u i l t through  time,  6,500 employees.  24  teams were used when the road  was  the Yellowhead.  Almost 300 new  towns and  v i l l a g e s s a n d m i l l i o n s of acres of a g r i c u l t u r a l land were opened by i t .  S e c t i o n s , with b u i l d i n g s , were marked o f f  every twelve m i l e s i n the p r a i r i e s and every  seven i n the moun-  1. - A r t i c l e by'W.W.Swanson i n The Economic Review, September 1917, g i v e s the f o l l o w i n g f i g u r e s of persons per m i l e o f r a i l w a y : Canada 185; A r g e n t i n e 274; U n i t e d S t a t e s 400; U n i t e d Kingdom 2,000; R u s s i a 4,000. p. 690. ;?  tains.  There were 34 s t e e l and  concrete b r i d g e s of which 26  were i n the Mountain S e c t i o n , 13 tunnels t o t a l l i n g 9,000 f e e t , and 7 snowsheds with a t o t a l o f 1700  feet.  b a l l a s t e d to the depth of 18 i n c h e s , and  The road bed  was  the r a i l s weighed  80 pounds per yard, an e x c e p t i o n a l l y h i g h f i g u r e f o r North America.  The  t r a c k s c r o s s s t h e Canadian P a c i f i c Railway  times and the Canadian Northern  seven.  Besides  six  the r a i l w a y  c o n s t r u c t i o n there were fences b u i l t along both s i d e s and t e l e g r a p h l i n e p a r a l l e l i n g the e n t i r e r o u t e . Car Company of M o n t r e a l , which had  The  Canadian  the c o n t r a c t f o r r o l l i n g  Stock, turned out 8 cars each working day f o r f i v e a t o t a l of 12,000 f r e i g h t and 250 C h a r l e s M. Hays had road  passenger.cars.  a road w i t h a maximum grade of i  4 degrees, Although  years,  1  s t r e s s e d the f a c t that the  should have a minimum grade and  a r i s e of 21.12  c u r v a t u r e , h i s aim  being  of one p e r c e n t , which means  f e e t per m i l e , and a maximum curvature of  which means a c i r c l e w i t h a r a d i u s of 1432.5 f e e t .  t h i s was  not achieved the r e s u l t was  c l o s e i n view of the Mafctle that was Mays made h i s demands.  surprisingly  known of the route when  the f i n a l maximum grade was  tenths, of one  percent a g a i n s t t r a f f i c  tenths of one  percent a g a i n s t that going west, a r i s e  26.4  a  f e e t per m i l e , except f o r one  going east and  fourfiveof  s t r e t c h on the Rocky  Mountains near Tete Jaune Cache, where f o r 19 m i l e s the grade against t r a f f i c  going east i s one p e r c e n t .  There was  curve on the p r a i r i e s over three degrees except 1. L o v e t t , K. Jp. op. c i t . , i s s u e d i n 1906.  164.  T h i s was  i n the  no cities  a $10,000,000 c o n t r a c t  123. of Edmonton, which had f o u r curves over t h i s f i g u r e , and Winnipeg, which had one. was s i x degrees.  In the mountains the maximum curve  When i t i s r e a l i z e d  that the e x i s t i n g  trans-  c o n t i n e n t a l s at that time ranged .up "to four p e r c e n t , o r 208 f e e t per m i l e of r i s e , the Immensity of the t a s k can be f u l l y realized. The advantage  which t h i s c o n s t r u c t i o n gave the  Grand Trunk P a c i f i c over o t h e r roads i s o u t s t a n d i n g . Por example, a t r a i n which could draw 250 tons on the l e v e l  could  draw 125 tons on a f o u r tenths p e r c e n t g r a d i e n t , 71.43 tons .on a one percent g r a d i e n t , and o n l y 62.5 tons on a one and two-tenths p e r c e n t t g r a d i e n t .  1  The gross c a p a c i t y o f an  engine on the Santa Fe Railway was 376 tons, the Union 2  Pacific  572 tons, but on the Grand Trunk P a c i f i c  2,014 t o n s .  A  freight  could c a r r y f o u r  t r a i n on the Grand Trunk P a c i f i c  times as heavy a l o a d as i t c o u l d on the Great Northern, Northern P a c i f i c , or union P a c i f i c , f i v e times as much as on the  Santa Fe, and seven times as much as on the 'Canadian  Pacific.  I n r e g a r d to t h i s C h a r l e s M. Hays s t a t e d , "The  interest  on the cost o f such a l i n e w i l l be r e t u r n e d to us  ten  times and over i n economy of o p e r a t i o n and the i n c r e a s e d 4 s a f e t y of our passengers. 1. H.Q.P. August 27, 1903, 9836. 2. Cameron, Agnes Deans^n. "Cock 0' the North", Westward Ho Magazine, Y, October 1909, 624. 3. The " B i g H i l l " between Hector and F i e l d on the K i c k i n g Horse Pass Railway r i s e s as much as 4.4 p e r c e n t , which i s 232 f e e t per m i l e . The c o n s t r u c t i o n of the Grand Trunk P a c i f i c was l a r g e l y r e s p o n s i b l e f o r the b u i l d i n g o f two s p i r a l tunnels here by the Canadian P a c i f i c i n 1909. One was 2800 f e e t long, the other 3200 f e e t , and the cost was |1,250,000.  The whole cannot  i n f l u e n c e o f the r a i l w a y on the country as a  be over-emphasized.  I t a f f o r d e d an o u t l e t f o r  the wheat of the p r a i r i e s and the goods of the e a s t . was  one of the most important  of s e t t l e r s t o Canada. people l e f t Canada,  1  cannot  f a c t o r s i n a t t r a c t i n g thousands  In 1908  i t was  estimated that 72,000  the U n i t e d S t a t e s alone to seek f r e e farms i n  and although i t must be admitted  P a c i f i c was  This  that the Grand Trunk  not the primary cause of t h i s i n f l u x i t s i n f l u e n c e  be d i s r e g a r d e d .  F o r example, on March 27, 1909,  the  Winnipeg-Free P r e s s r e p o r t e d , ''Five car l o a d s of s e t t l e r s Portage two  left  f o r the west yesterday on the Grand Trunk P a c i f i c ,  t r a i n s l o a d s w i l l go e a r l y next month."  So g r e a t was  and the  n e c e s s i t y of t r a n s p o r t a t i o n f o r the s e t t l e r s t h a t the r a i l w a y obtained p e r m i s s i o n t o c a r r y them on the work t r a i n s before the road was  a c t u a l l y opened f o r t r a f f i c .  The  significance  of t h i s g r e a t immigration movement can be r e a l i z e d from f i g u r e s showing the t o t a l immigration  the  i n t o Canada f o r the  2 s i x years commencing 1908.  Most of these people  settled  i n the west and towns sprang up l i k e mushrooms. Wainwright, 4.(from p r e v i o u s page) Winnipeg Free Press,December 5, 1908. The t r u t h of h i s statement has been amply c a r r i e d out s i n c e the road was b u i l t . The i n v e s t i g a t i o n h e l d by the Senate i n 1938 shows t h i s r e p e a t e d l y . An e x c e l l e n t example i s to be found on p. 635 of the r e p o r t . 1. Cameron, D. C.,  o p . c l t . , 627 .  2. c f . C a r r o t h e r s , W., .A., London, 1929, 316..  E m i g r a t i o n from the B r i t i s h  Isles,  which was these two  put on the market J u l y 1, 1908,  "boom" towns.  l i v e r y s t a b l e s , two  drug  hardware s t o r e s , three d o c t o r s , and a r e s i d e n t  p o p u l a t i o n of 300.  u n f o r t u n a t e l y many of these  much l i k e mushrooms.  They sprang up o v e r n i g h t  towns were too during  the  boom, but when the ensuing  d e p r e s s i o n h i t the country,  the s p e c u l a t o r s had milked  the g u l l i b l e dry, they d e c l i n e d  and  of  In two months i t had f i v e g e n e r a l s t o r e s ,  h o t e l s , f i v e lumber yards, two  s t o r e s , two  i s a t y p i c a l one  became unimportant.  Such c o l l a p s e s are one  and  of the  great  e v i l s of r a i l w a y b u i l d i n g and prove a great handicap not to the u l t i m a t e success of the r a i l w a y but a l s o to the as a whole and The  to i t s c r e d i t  The  the  which i t has  agricultural  great demand f o r lumber, t i e s ,  and p o l e s caused a boom i n B r i t i s h Columbia m i l l s . n o r t h the r a i l w a y enabled  country  abroad.  r a i l w a y d i d more than b u i l d up  s e c t i o n s o f the p r a i r i e s .  only  In  the  P r i n c e Rupert to s h i p the f i s h , f o r  s i n c e become famous, a c r o s s the  continent.  S h i p p i n g on the P a c i f i c coast f l o u r i s h e d as never b e f o r e .  The  need o f . c o a l r e s u l t e d i n the opening o f the c o a l mines i n the Rockies south  of Edson and a l s o i n the B u l k l e y v a l l e y .  the l a t t e r p l a c e the Grand Trunk P a c i f i c was the surveying of much, of the country i t s t r i b u t a r i e s the Mud  and  In  responsible f o r  around the Telkwa and  Goat Creeks, which r e s u l t e d i n  the development of the mines of that s e c t i o n . In a l l p a r t s of the continent by t h i s new  road.  The  i n t e r e s t was  aroused  i n d u s t r i e s of the e a s t hummed with  the manufacturing of goods which were needed i n the new  west.  So great was  the demand f o r s t e e l that the m i l l s of O n t a r i o  Nova' §cotia were not a b l e t o keep up w i t h the manufacturers  the demand.  of the east and o f England  Moreover  watched keenly  the b u i l d i n g of a l i n e which would cut 500 m i l e s from the by Vancouver to Yokohama and Francisco.  1500  U n f o r t u n a t e l y i t was  and  from the r o u t e through  route San  not shown at the time t h a t ,  although Grand Trunk P a c i f i c r o u t e was Ifehis much s h o r t e r , there were 500 m i l e s of a d d i t i o n a l land h a u l , which more than nullified  the advantages of the s h o r t e r d i s t a n c e . i n c o n j u n c t i o n with the r a i l w a y the Grand Tnunk  P a c i f i c were r e s p o n s i b l e f o r a boom i n the b u i l d i n g t r a d e s . Hundreds of s e c t i o n houses, s e c t i o n men's homes, f r e i g h t and other such b u i l d i n g s were n e c e s s a r y . d i v i s i o n a l p o i n t s , round houses and  1  at Transcona,  2  which was  built  There were a l s o , at  other b u i l d i n g s necessary  f o r the maintenance of the r o l l i n g s t o c k . was  sheds,  The  l a r g e s t of these  i n the m u n i c i p a l i t y of  S p r i n g a t e , s i x m i l e s east of Winnipeg, by the Grand Trunk. 3 P a c i f i c and N a t i o n a l T r a n s c o n t i n e n t a l t o g e t h e r . The t o t a l 1.  One  Regina,  f i r m of c o n t r a c t o r s , Smith B r o t h e r s and Wilson, built  of  f o r t y s t a t i o n houses.  2.  Winnipeg Free P r e s s , September 19, 1908, account of t h i s u n d e r t a k i n g .  has a f u l l page  3.  H.G.D. February 15, 1909, 1070. A sample of the type o f g r a f t that was being done i s r e v e a l e d here i n regard to these t e r m i n a l s . I t was shown that the p r o p r i e t o r s , J.H. Kern and F.C.Mathews, had purchased the l a n d a very s h o r t time before and were a s k i n g the government f o r twice the amount which they had p a i d . They o r i g i n a l l y asked f o r $300 an a c r e , but were only p a i d $277.50, which r e s u l t e d i n a p r o f i t to them of $100,000.  cost was $5,000,000, of which the Grand Trunk P a c i f i c $3,500,000.  The shops were opened i n January 1913.  time there were 3,000 men employed  paid At that  i n them..  Many other noteworthy b u i l d i n g s were e r e c t e d by the Grand Trunk P a c i f i c Railway.  The MacDonald  H o t e l at Edmonton,  the S e l k i r k H o t e l i n Winnipeg, which was c o n t r a c t e d Ey George A. P u l l e r Company of M o n t r e a l f o r $1,500,000, the h o t e l at P r i n c e Rupert, and the $200,000 h o t e l at P r i n c e George, which was b u i l t by H a l i b i r d and Roche of Chicago.  Many f i n e depots  were b u i l t , those a t Regina and Winnipeg b e i n g b u i l t by the Canadian Northern and Grand Trunk P a c i f i c Winnipeg cost o f $1,000,000.  1  together.  That i n  As the e a r l y b i t t e r n e s s between  these two r a i l r o a d s wore o f f , both evinced a marked tendency to co-operate.  T h i s was shown i n the l i n e  through Edmonton  and a l s o on a s t r e t c h o f 12 m i l e s of t r a c k about twenty m i l e s west of the Yellowhead.  I n t h i s s e c t i o n the Grand Trunk  P a c i f i c b u i l t a double t r a c k and the other r a i l w a y r e n t e d  it.  The d i f f i c u l t i e s which the Grand Trunk P a c i f i c had to overcome were numerous and at times s e r i o u s .  The f i r s t  problem was the shortage o f s t e e l , and E. J . Chamberlain attributed., the d e l a y i n c o n s t r u c t i o n d u r i n g 1911 to the f a i l u r e of the S a u l t S t e . Marie and Nova S c o t i a s t e e l m i l l s t o d e l i v e r the r a i l s , c l a i m i n g that they were 18,000 tons short of t h e i r requirements.  The most important d i s t u r b a n c e s , however, were  caused by the problems of l a b o r , the shortage of men, and the unrest of the workers. !• H. C. P., 1907, 5512  138. From the b e g i n n i n g the shortage o f men was seriously.  The competition  from the other  railway  felt  companies,  as w e l l as the farmers, and the a t t r a c t i v e n e s s of f r e e homesteads caused great d e l a y  i n the b u i l d i n g o f the r a i l w a y .  1909 i t was estimated that the railwayywas 3,500 men and  i n 1910 the number had i n c r e a s e d .  In  short,  I t was i n that y e a r  that W. Stewart was sent from Montreal to S c o t l a n d  with  powers to spend $1,000,000 to o b t a i n 5,000 laborers.,  By 1912  the shortage was not so g r e a t , but on November 30 o f t h a t year S c h r e i b e r  s t a t e d that the Balkan wars were drawing many  men from the country and causing when work was concentrated age  was not so keenly  another s h o r t a g e .  1  i n the Mountain S e c t i o n ,  In 1913, the s h o r t -  felt.  As s e r i o u s as the shortage of l a b o r was the unrest among the men.  The men were employed through employment  agencies i n the east which, because the men were given t r a n s p o r t a t i o n and q u a r t e r s rates.  on a r r i v a l , charged  N a t u r a l l y the men were d i s c o n t e n t e d .  p r o t e s t s were that the accommodation and food  free  exorbitant  Their chief were poor, the  hours long, the machinery used d e f e c t i v e , that the wages were low,  that there were too many a c c i d e n t a l deaths, and that  f a v o r i t i s m was shown.  Most of these charges werepprobably  t r u e , e s p e c i a l l y where the work was being done by s m a l l  sub-  c o n t r a c t o r s , but they were probably aggravated by the f o r t u n a t e p o s i t i o n i n which the men found themselves because o f the s h o r t age  of labor,  undoubtedly a l a r g e number of men were k i l l e d  1. F o r t George H e r a l d ,  November 30, 1912.  on  the road,  but i t must be a l s o noted  that the number of a c c i d e n t  a l deaths on the Grand Trunk P a c i f i c was government-built  not as h i g h as  National Transcontinental.  the  The most s e r i o u s  charge of t h i s type occurred i n b l a s t i n g the K i t s e l a s  tunnels,  where e i g h t men were blown up i n a week.  officials  The  railway  blamed the unrest on the I n d u s t r i a l Workers of the World, commonly knbwnflas the I.W.W., which was  at that time  much t r o u b l e throughout the c o n t i n e n t , but  causing  t h i s charge was  never proven. S t r i k e s were numerous. hundred men  On March 13,  walked out from the Ross and M c C a u l l  1909, one contract  near P r i n c e Rupert, c l a i m i n g that wages f a r t h e r i n l a n d were higher.  In J u l y of the same y e a r , a s t r i k e o f trainmen on  the l i n e occurred and l a s t e d f o r about three weeks. ember 28,  1910,  a magistrate  i n Edmonton, examining/the  of s i x l a b o r e r s , s t a t e d that the treatment on the r a i l w a y was  abominable.  i n 1911  On May  and  1912.  walked out f o r more pay. boilermakers when i t was  claims  o f the men working  S t r i k e s became more numerous 1911,  two hundred men near A i x  In October, the m a c h i n i s t s  and  demanded 41 cents per hour and went on s t r i k e refused.  47 cents an hour. the r a i l w a y . Hazelton  19,  On Sept-  quit.  In 1912  they were awarded 45 cents  In J u l y 1912  o c c u r r e d the l a r g e s t  s t r i k e on  I t began when between 2,000 and 3,000 men They were- j o i n e d a week l a t e r by 10,000  on the e a s t e r n end of c o n s t r u c t i o n . on the I.W.W. and  The  s t r i k e was  and  near men  blamed  tropps were sent from Edmonton to p r o t e c t  the company's p r o p e r t y .  T h i s was  probably  strongly influenced  1. There i s no data on the number. The t o l l from those who t r a v e l l e d by r a f t s down the f r a s e r i s e x c e p t i o n a l l y h i g h a c c o r d i n g t o eye-witnesses.  130. by the unrest i n the southern r a i l w a y s where a s e r i e s of s t r i k e s o c c u r r e d about t h i s time, but was  a l s o most l i k e l y caused by  g r i e v a n c e s a g a i n s t the Grand Trunk P a c i f i c . In an e f f o r t  to overcome these  1  difficulties  e f f o r t s were p u t . f o r t h - b y the r a i l w a y o f f i c i a l s to cheap l a b o r .  One  More s e r i o u s was 1909  scheme was  to import men  great  import  from S c o t l a n d .  the attempt to import A s i a t i c s .  In March  s i x t y Russian moujiks a r r i v e d from S i b e r i a , the  contingent of a l a r g e r number who  just  first  were r e p o r t e d to have been  brought by the Grand Trunk P a c i f i c .  2  These were not  given  the n o t o r i e t y which the O r i e n t a l i m p o r t a t i o n s r e c e i v e d .  The  MaBride government fought u n c e a s i n g l y a g a i n s t O r i e n t a l s , but the L i b e r a l government i n Ottawa would not a s s i s t i n the e x c l u s i o n of Japanese. of 1907  On the day before  the f e d e r a l e l e c t i o n s  the Vancouver D a i l y Province p u b l i s h e d the f o l l o w i n g  report: The Union Supply and C o n t r a c t i n g Company, L i m i t e d (in r e a l i t y the Grand Trunk P a c i f i c . . . a s i t s manager i s Mr. E. G. R u s s e l l , who i s the c o n f i d e n t i a l agent o f the Grand Trunk P a c i f i c on the c o a s t , and i t s s t o c k h o l d e r s are s a i d to be members of the l o c a l L i b e r a l machine) - has, i t i s understood, entered i n t o an arrangement to f u r n i s h through one of the l a r g e s t l a b o r f i r m s i n Tokyo, Japan, at l e a s t 50,000 c o o l i e Saps d u r i n g the year. T h i s i s o b v i o u s l y a p o l i t i c a l move, and s u c c e s s f u l as McBride swept the p r o v i n c e . much t r u t h i n the charge,  was  That there  very was  however, can be seen by the a t t i t u d e  1. I t i s impossible to o b t a i n a complete l i s t of the l a b o r t r o u b l e s of the Grand Trunk P a c i f i c . As i t was a p r i v a t e company no r e c o r d of i t s s t r i k e s was kept by the f e d e r a l government. 2. H.C.D. February 25, 1909. An eyewitness had t o l d me there were "hundreds of Russians" employed.  of L a u r i e r towards O r i e n t a l e x c l u s i o n and by the statements of s e v e r a l of the Grand Trunk P a c i f i c o f f i c i a l s .  Gollingwood  S c h r e i b e r , the c h i e f engineer f o r the government on the grand Trunk P a c i f i c ,  s t a t e d i n October,1907, "That  Japs, but the people "The  i s why we want  w i l l not l e t them come i n , " and i n 1909, 1  mountain s e c t i o n of the Grand T^unk P a c i f i c w i l l never be  built,  at l e a s t not u n t i l you are grey-headed, u n l e s s the  c o n t r a c t o r s a r e allowed to get i n other than white l a b o r e r s . Of t h i s I am f i r m l y c o n v i n c e d . "  2  S i r Charles Rivers-Wilson  s a i d , "The temporary employment of three or f o u r thousand A s i a t i c s would save two o r three years....At the end they could be tatcen back to the O r i e n t . " statement  of Kays a t P r i n c e Rupert,  F i n a l l y there i s the " I t i s a question o f  l a b o u r . . . . I am not s a y i n g your government i s doing  anything  i n t e n t i o n a l l y to stop labour coming i n , but I t h i n k i n t h e d e s i r e t o keep out the s o - c a l l e d u n d e s i r a b l e s they are r e a l l y 4 keeping out many good men." In surveying t h i s g r e a t e n g i n e e r i n g wonder we must admire the f o r e s i g h t and the w i l l o f the men who were r e s ponsible f o r i t s construction.  Above a l l ,  of course,  credit  goes t o C h a r l e s M. Hays, who succeeded S i r C h a r l e s R i v e r s Wilson as p r e s i d e n t on October 12, 1909. The a b i l i t y of t h i s man, who brought the Grand Trunk from the verge  o f bank -  ruptcy and was r e s p o n s i b l e f o r the moving of the e x e c u t i v e of » 0«A.R., 1907, 159. 2. Winnipeg Free Press,Sept.13, 1909. 1  3. i b i d . October 13, 1909. 4. P r i n c e Rupert. O p t i m i s t , October 25, 1910.  that r a i l w a y from London to Canada, i s t o be seen f u l l y b u i l d i n g o f the Grand Trunk Eac'ifi;c.  i n the  I t was he who had most  to do with the o r i g i n a l p l a n n i n g of the road, the s e t t i n g of the grades and curves, the r a i s i n g of f i n a n c e s , and a l l the important d e c i s i o n s as to the p o l i c y of the r a i l w a y .  Unfort-  u n a t e l y he was drowned on the T i t a n i c d i s a s t e r o f A p r i l 1912.  16,  On the morning of A p r i l 25, 1912, h i s death was marked  throughout Canada by a f i v e minute s i l e n c e over the e n t i r e Grand Trunk System at 8:30.  An i n t e r e s t i n g problem, whioh  will  never be s o l v e d , i s to determine whether o r not he foresaw the f i n a n c i a l r u i n which was ahead of the Grand Trunk P a c i f i c . Undoubtedly he must have r e a l i z e d that the r a i l w a y was  getting  i n t o very s e r i o u s d i f f i c u l t i e s and Itawould be s u r p r i s i n g i f a man if  of such p e r s p i c a c i t y d i d not r e a l i z e t h a t r u i n l a y ahead  the p o l i c i e s o f the o f f i c i a l s d i d not change. lie was succeeded to the p r e s i d e n c y by Edson J .  Chamberlin, the v i c e - p r e s i d e n t , who was knighted f o r h i s work on September  9, 1913, and who  completed the b u i l d i n g of the  road. The c o n s t r u c t i o n of the r a i l w a y was Gollingwood S c h r e i b e r , who was  s u p e r v i s e d by  c h i e f engineer f o r the govern-  ment, and was the o v e r s e e r f o r a l l m a t t e r s p e r t a i n i n g Western D i v i s i o n .  to the  He was appointed February 25, 1907, and kept  an e x c e l l e n t check on a l l the work.  The s u p e r v i s i n g  officer  of the e n t i r e Western D i v i s i o n f o r the Grand Trunk P a c i f i c was B. B. K e l l i h e r .  The a c t u a l c o n s t r u c t i o n o f t h i s  was under c h i e r engineer C. C. Van A r s d o l l , who  was  section nick-  133 named "Four-tenths Van" because o f h i s attempts to o b t a i n a f o u r - t e n t h s o f one percent grade, and who was honored by having the town of V a n a r s d o l named a f t e r him. Three c o n t r a c t o r s stand out i n the c o n s t r u c t i o n of the Grand Trunk P a c i f i c Railway.  These were the F o l e y B r o t h e r s ,  Welch, and Stewart, who b u i l t the e n t i r e l i n e from Saskatoon to P r i n c e Rupert.  Timothy F o l e y and M. H. F o l e y were w e l l -  known c o n t r a c t o r s from S t . P a u l , Minnesota, who were known i n Canada through t h e i r work on the Canadian P a c i f i c the f i r s t to b u i l d  few y e a r s o f i t s c o n s t r u c t i o n .  Railway i n  They had a l s o helped  the Great n o r t h e r n and were i n t e r e s t e d i n the Can-  adian Northern. from Spokane.  P a t r i c k ?lelch was another well-known  contractor  John Stewart was the best known o f the f o u r .  He was a Canadian and was a f f e c t i o n a t e l y b a l l e d  "Jack'? Stewart  by the workers, w i t h whom he seems to have been on the best of terms.  He died i n Vancouver  i n November 1938.  These a r e the men who w i l l be remembered f o r t h e i r work i n b u i l d i n g the Grand Trunk P a c i f i c .  There were thousands  o f o t h e r s , however, without whom the r a i l w a y would never have been b u i l t .  Most of these a r e now f o r g o t t e n , but legends  have grown up around a few and have l e n t them a p i c t u r e s q u e ness.which w i l l grow with time.  P r o b a b l y , o f a l l the myriad  of workers, none has l e f t a more c o l o r f u l s t o r y than B i g Julia.  He was j u s t a common l a b o r e r , but he i s remembered  as the strongest land b i g g e s t man on the r a i l w a y .  C a r e f r e e and  happy-go-lucky, he i s symbolic o f t h e type o f men who r i s k e d t h e i r l i v e s d a i l y i n order to l a y two l i n e s of s t e e l  across  a wilderness.  Has any t a l e of f i c t i o n a more c o l o r f u l  and a more p i t i f u l ending?  figure,  A swaggering g i a n t , he became  entangled with one of the many women who were to be found aloni the l i n e , and as a r e s u l t was k i l l e d  i n a brawl by a b a r b e r .  As p a s s i n g and unimportant as he were the braggadocio and l a w l e s s n e s s which marked the e a r l y c o n s t r u c t i o n of the Grand Trunk P a c i f i c Railway, and i n B i g J u l i a may be seen the irresponsible ruthless l i f e years but were soon  o f the l a b o r e r s who s t r u g g l e d f o r  forgotten.  Chapter V I I .  The  Prince Rupert  s t o r y of the b u i l d i n g of the Grand Trunk  P a c i f i c Railway would not be complete without account of the b u i l d i n g of P r i n c e Rupert. . 1  i n c l u d i n g an  I t was planned and  b u i l t by the r a i l w a y and i s s t i l l p r i m a r i l y important i s i s the terminus of the road.  because  I n c e p t i o n , growth, and p r o s -  p e r i t y a r e a l l dependent on the r a i l w a y .  More t h a n t h i s , i t  p r e s e n t s a t y p i c a l p i c t u r e o f the methods of e x p l o i t a t i o n used by the r a i l w a y and the r e s u l t i n g Kaien  scandals.  I s l a n d , on which P r i n c e Rupert i s s i t u a t e d ,  was f o r many years b e l i e v e d to be part of the Tsimpsean Peninsula.  T h i s p r o j e c t s about 3 5 m i l e s n o r t h - w e s t e r l y  the mouth of the Skeena R i v e r ,  wear i t s n o r t h e r n  from  end i s  P o r t Simpson, the o r i g i n a l l y suggested terminus o f the railway.  About 2 0 m i l e s south  of this place  i s a long  known f o r m e r l y as Tuck's I n l e t , but now as Tuck I n l e t . I s l a n d i s s i t u a t e d at the mouth of t h i s i n l e t .  inlet Kaien  A few m i l e s .  f u r t h e r west i s Digby I s l a n d , which serves as a p r o t e c t i o n f o r K a i e n from the rough waters o f the P a c i f i c . Rupert i s s i t u a t e d on the s t r a i t between these  Prince two i s l a n d s .  For many years because o f an e r r o r i n the A d m i r a l t y c h a r t s , i t was b e l i e v e d that the harbor was rendered by a l a r g e o b s t r u c t i o n .  useless  Charles M. Hays i s g i v e n the c r e d i t  1. P r i n c e Rupert was the f i r s t c i t y i n Canada to be planned on paper before a s i n g l e b u i l d i n g was c o n s t r u c t e d .  of* i n s i s t i n g on a resurvey the A d m i r a l t y to  which r e s u l t e d i n the d i s c o v e r y  that  chart was i n e r r o r and that no such impediment  the harbor e x i s t e d . It  i s not c e r t a i n when Kaien  the terminus of the r a i l w a y .  I s l a n d was s e l e c t e d as  On A p r i l 30, 1904, a s e c r e t  ©rder-in-Council was passed by the B r i t i s h Columbia government by which an agreement was made with the Grand Trunk P a c i f i c Railway.  T h i s b i l l was approved on May 4, 1904, but f o r some  undetermined reason, was kept a s e c r e t u n t i l the s p r i n g o f 1906 At t h a t time, because of the i n s i s t e n c e o f the o p p o s i t i o n , a S e l e c t Committee was appointed  to enquire  i n t o the a c q u i s i t i o n  of lands near Kaien I s l a n d by the Grand Trunk P a c i f i c Company or other p e r s o n s .  1  Railway  The committee c o n s i s t e d of J . A.  Macdonald, J . F. Garden, E. H. Young, W. R. Ross, and C. W. Munro.  Although no c o r r u p t i o n o f the government was proven,  the i n v e s t i g a t i o n d i d not prove a l t o g e t h e r s a t i s f a c t o r y . had been h i n t e d , and the p u b l i c f e l t there was probably  some f i r e .  Much  t h a t where there was smofee  S e v e r a l important  n o t a b l y Morse and Larsen, were absent.  witnesses,  The committee was  d e c i d e d l y p r e j u d i c e d , as the m a j o r i t y o f the members were strong C o n s e r v a t i v e s ,  and the f o l l o w i n g q u o t a t i o n from the  V i c t o r i a D a i l y Times, which i s o b v i o u s l y b i a s e d a g a i n s t both the government and the committee, p r e s e n t s , form, a b e l i e f which was g e n e r a l ,  i n an extreme  "The government showed  unmistakably t h i s morning that they a r e prepared  to burk the  i n q u i r y to the f u l l e s t e x t e n t .  members o f  She Conservative  1. J o u r n a l of the L e g i s l a t i v e Assembly, 3. C. Appendix,lxvi i .  1906,  the committee are  l e n d i n g themselves to every device  the evidence back.  The  chairman, J . F. Garden, showed h i s  p a r t i z a n s h i p t h i s morning...."^ be p o i n t e d  out  i n c l u d e d A. H. had  In support of t h i s  i t should  that the o r i g i n a l appointment o f the  committee  B. Macgowan and  s u b s t i t u t e d f o r these two  tives.  Obviously  W i l l i a m Hanson, but Garden and  the committee was  In b r i e f was  to keep  the  premier  Young, both Conserva-  "packed".  the s e c r e t agreement of A p r i l 30,  made between the government, represented  by  1904,  the Honorable  „R. F. Green, and E. -V. Bodwell,. a c t i n g f o r Peter  Larsen.  By  it  of $1.00  per  the government granted 10,000 acres at a cost  a c r e , with the f o l l o w i n g r e s e r v a t i o n s : one-twentieth of land was  reserved  a l l minerals for  and  f o r roads, b r i d g e s , water p r i v i l e g e s ;  and  other p u b l i c  the r i g h t  reverted  lots.  laid  out  to take m a t e r i a l s  (by B r i t i s h Columbia law  to the crown); not  frontage;  and  l e s s than 1,000  one-quarter of the land not  this  fraction  f e e t o f water d i v i d e d i n t o town  2  P e t e r Larsen was railway States.  c o n t r a c t o r , and He  was  a very  wealthy man,  an  extensive  a wholesale merchant of the  a s s o c i a t e d Y/ith James Anderson o f  united  Victoria,  who  d i d most of the a c t u a l work i n B r i t i s h Columbia f o r  The  l a t t e r s home i n V i c t o r i a  the  s t r a i t between Digby and K a i e n I s l a n d s .  T  had  H.  C. P.,  January 21,  1907,  him.  the same name, Lima, as  1. V i c t o r i a D a i l y Times, F e b r u a r y 8, »  utilities  p u b l i c works without c o s t ; one-quarter of the town l o t s  that might be  2  the  1792.  1906.  The  general  belief  138. was  that he was  capital  the spokesman o f a group of s p e c u l a t o r s i n the  c i t y , some of whom..were members o f the government. Larsen then went to M o n t r e a l and made a d e a l with  Hays and Morse by which the Grand Trunk P a c i f i c was $40,000 to Larsen f o r the g r a n t .  to  pay  Larsen, however, r e f u s e d t h i s ,  s t a t i n g t h a t he d i d not want immediate g a i n , but r a t h e r d e s i r e d to e s t a b l i s h a f r i e n d l y connection with the r a i l w a y company i n the hope of a c q u i r i n g b u s i n e s s whenever the a c t i v e should commence.  operations  Por t h i s reason he s o l d the r i g h t s to the  r a i l w a y f o r $10,000, which he had p a i d the government, p l u s $8,000 which he had  spent on surveys of the d i s t r i c t ,  p a i d Anderson the $100,000 p l u s a s a l a r y , allowance expenses, o n e - s i x t e e n t h i n t e r e s t .South P o r p o i s e I s l a n d s and and a l s o about f i v e from the c o a s t . submitted  ae  for  i n the l a n d s on North  other p l a c e s contiguous  then  and  to Kaien,  square m i l e s of c o a l lands some d i s t a n c e  I t w i l l be noted  that the expense  account  to the f e d e r a l government by the r a i l w a y allows  P e t e r Larsen $26,000 f o r " t e r m i n a l l a n d " . 1  1  Apparently  he  d i d e s t a b l i s h a " f r i e n d l y c o n n e c t i o n " with the company. In the i n v e s t i g a t i o n , which was,  as s t a t e d above,  f a r from s a t i s f a c t o r y , many i n t e r e s t i n g f a c t s were brought •to l i g h t .  I t was  were conducted and  shown t h a t much o f the e a r l y n e g o t i a t i o n s  i n p r i v a t e homes, e s p e c i a l l y that of Anderson,  in private offices.  of the d i s c u s s i o n s .  Green even went to S e a t t l e f o r some  Anderson showed a tendency to d e l a y  i n appearing before the committee, s t a t i n g t h a t a c l o s e 1.  supra,  109.  139. personal  f r i e n d had  the end.  He  "-Just d i e d , and  produced books and  from complete, and  was  not c a l l e d u n t i l almost  cheque stubs,  the remainder c o u l d not be  t i o n s were r i f e at the time concerning Mrs. Anderson and  but they were f a r  Green, and much was  the  found.  intimacy  Insinuaof Mr.  made of the f a c t  and  that  s e v e r a l times Green had been e n t e r t a i n e d at the Andersons' home. ..The- Andersons were so  incensed  by these a t t a c k s  that they c a l l e d  upon the e d i t o r of the V i c t o r i a Times to p r o t e s t i n which t h e i r name was .Anderson l e f t  being used.  A few  the manner  days l a t e r  Mrs.  Victoria.  Soon a f t e r the agreement of A p r i l 30,  1904,  Bodwell  became s o l i c i t o r f o r the Grand Trunk P a c i f i c Railway, but apparently  he had  no connection  with them while he was  i n g the e a r l y agreements w i t h the government. change he d e a l t as the r e p r e s e n t a t i v e the government. had  protested  I t was  against  government should one,  but  of one  of the r a i l w a y  terms at f i r s t ,  government, and ernment was  Fulton,  claiming that  r e c e i v e f i v e d o l l a r s an a c r e  instead  the of  Premier McBride supported the a c t i o n s o f the e s p e c i a l l y s t r e s s e d the f a c t that the gov-  to have the f i r s t c h o i c e  that i t had  f o r their 25$  and  3,000 f e e t .  Morse wired h i s i n a b i l i t y to appear because of the of b u s i n e s s ,  since Hays was  As P e t e r  o f the  i n s i s t e d that the water f r o n t should  d i v i d e d i n t o a l t e r n a t e s e c t i o n s of 1,000  ill.  with  f o r some unknown reason he l a t e r agreed to the p r i c e  dollar.  l a n d , and  After this  shown that the Honorable Mr.  the  arrang-  Larsen was  i n England and  pressure  Wainwright  was  a l s o absent the i n v e s t i g a t i o n  be  go  l a c k e d many important  facts.  When the r e p o r t was  presented there  m a j o r i t y r e p o r t by Messrs. Garden, Young, and two  were those who  had been appointed by  were two Ross (the  d i v i s i o n , and order and  The  1  r e p o r t was  i t was  therefore  The m a j o r i t y  not  a  opposition,  accepted by a s t r i c t  agreed that the m i n o r i t y i t was  first  the premier) and  m i n o r i t y r e p o r t by Macdonald, the l e a d e r o f the and P a t e r s o n .  parts, a  party  r e p o r t was  out of  recorded.  r e p o r t was  the government a c t i o n s , as w e l l as  a complete exoneration  of  the other p a r t i e s concerned..  Nothing proved that any member (£ the government r e c e i v e d anyt h i n g from the nothing  land s a l e , and  i n c l u d e s the f o l l o w i n g (1) The  r e p o r t was  T h i s was  • that time was the point  little  was  Larsen.  much more d e f i n i t e  and  points  grant  e s t a b l i s h e d October 12,  and  s t a t e d that there  wrong with the a c t i o n s of Anderson and The m i n o r i t y  Island.  i t was  had been made from a p r o v i n c i a l 1891,  l a r g e l y due  but  reserve  t h i s d i d not extend t o K a i e n  to the f a c t that the i s l a n d at  supposed to be p a r t of the Tsimpsean P e n i n s u l a , . i s t h e r e f o r e , w h i l e t e c h n i c a l l y c o r r e c t , of  importance. (2) A p p l i c a t i o n s to the government were not  s i d e r e d on t h e i r m e r i t s . p a r t i z a n s h i p and  This i s a clear accusation  con^  of  politics.  (3) The  government had  not d e a l t d i r e c t l y with the  Grand Trunk P a c i f i c Railway Company, but on  the c o n t r a r y  had  1. For some unstated reason P a t e r s o n took the p l a c e of Munro a f t e r February 12. 2. Vancouver Daiifey P r o v i n c e ,  March 8,  1906.  d e a l t with a band of adventurers  (male and female') who had  a p p l i e d f o r the lands f o r p u r e l y s p e c u l a t i v e purposes,  t o the  knowledge of the government; that the government had no communication, .©Ither v e r b a l o r w r i t t e n , v/ith any r e p r e s e n t a t i v e of the Grand Trunk P a c i f i c p r i o r to the p a s s i n g of the Orderi n - C o u n c i l o f May 1904; and that the telegram of A p r i l 29, which was presented as evidence merely  i n the i n v e s t i g a t i o n , was  a move i n the game t o enable  t h e s p e c u l a t o r s t o contend  that they could c a r r y out the o r i g i n a l i n t e n t of p r o c u r i n g the establishment of the Grand Trunk P a c i f i c terminus on the lands and to give the government a pretence, a very specious one, that they had heard i n an i n d i r e c t way, i f not i n a d i r e c t way from the Grand Trunk P a c i f i c , (4) The government had p l a c e d i n the hands o f Anderson and Larsen one o f t h e most v a l u a b l e p u b l i c  assets  of the province f o r a b a r t e r with the Grand Trunk P a c i f i c , and Anderson had succeeded  i n g e t t i n g an agreement with the  Grand Trunk P a c i f i c to pay h i m s e l f and Larsen f40,000 f o r the concession.  There was no s a t i s f a c t o r y evidence  g i v e n to show  the u l t i m a t e f a t e of the f40,000 agreement. (5) The government had no r i g h t to g r a n t l a n d without the assent of the L e g i s l a t u r e . (6) The government took no s t e p s to decide whether the grant was i n $he p u b l i c Green admitted  interest.  In the I n v e s t i g a t i o n  t h a t t h e government had made no i n v e s t i g a t i o n  of any p o i n t which might be s u i t a b l e f o r a p o r t , harbor, or townsite•  142 (7) The p r o v i s i o n f o r the d i v i d i n g of the f o r e s h o r e enabled the Grand Trunk P a c i f i c  to p l a c e the t e r m i n a l so as to  i  render the government s e c t i o n almost w o r t h l e s s . (8) Secrecy enabled L a r s e n and Anderson to o b t a i n other contiguous l a n d . In support of t h i s i t was had  shown that Anderson  r e c e i v e d s e c t i o n s i n d i v e r s e p i e c e s of l a n d neat the townsite. The  i n v e s t i g a t i o n c r e a t e d a g r e a t s e n s a t i o n i n the  p r o v i n c e as a whole, and e s p e c i a l l y i n V i c t o r i a . I t was* indeed, very u n s a t i s f a c t o r y , and proved l i t t l e it  of v a l u e . To many people  seemed as i f "Garden, Young, and Ross,were p l a c e d upon the  committee f o r the purpose  o f e x o n e r a t i n g the c h i e f  and the government, and they have succeeded Although the evidence  commissioner 1 i n t h e i r duty."  i n the i n v e s t i g a t i o n was  incomplete,  and  the r e p o r t had not r e s u l t e d i n a unanimous e x o n e r a t i o n of the government, the o p p o s i t i o n had f a i l e d to prove c o r r u p t i o n . The r e s u l t l e f t  doubts  i t s charges of  i n the minds of many people ,  but, without a d d i t i o n a l evidence, the f i n d i n g s of the m a j o r i t y '  must be  x  accepted.  The next step to purchase begun by the Grand Trunk P a c i f i c  l a n d near P r i n c e Rupert i n 1906.  On February 5  was N  n e g o t i a t i o n s opened at Old M e t l a k a t l a between E . G . R u s s e l l , r e p r e s e n t i n g the company, and the Indians who  owned the  r e s e r v a t i o n on Digby and K a i e n I s l a n d s and on the Tsimpsean P e n i n s u l a . A l s o present were Bishop Du Vernet and the I n d i a n Agent, Morrow.  The n e g o t i a t i o n s l a s t e d f o r f i v e  days ,  .1. V i c t o r i a D a i l y Times, March 8 , 1906. 2.Because of h i s p o s i t i o n , R.F. Green was the f o c u s of the i n s i n u a t i o n s of the o p p o s i t i o n . The i n v e s t i g a t i o n f a i l e d to d i s c o v e r any f a c t s which upheld these charges, and the i m p l i c a t i o n s concerning the c h a r a c t e r of Green must-be recognized as f a l s e . t  142. (7) The enabled render  p r o v i s i o n f o r the d i v i d i n g of the  the Grand Trunk P a c i f i c  to p l a c e the  the government s e c t i o n almost (8) Secrecy  other contiguous  enabled  land.  foreshore  t e r m i n a l so as to  worthless.  Larsen and Anderson to o b t a i n  In support  of t h i s i t was  shown that  Anderson had r e c e i v e d s e c t i o n s i n d i v e r s e p i e c e s of land near the  townsite. The  the province indeed,  i n v e s t i g a t i o n c r e a t e d a great  as a whole, and  sensation i n  especially in Victoria.  very u n s a t i s f a c t o r y , and  proved l i t t l e  It  was,  of v a l u e .  To  many people i t seemed as i f IGarden, Young, and Ross, were, p l a c e d upon the committee f o r the purpose of e x o n e r a t i n g c h i e f commissioner and in their duty."  1  the government, and  Although the r e p o r t had  the  they have succeeded failed  to prove  any  s i g n o f c o r r u p t i o n or p e r s o n a l g a i n i n the government, i t s incompleteness,  combined at the end with the r e s i g n a t i o n of  Green as M i n i s t e r of P u b l i c Works, r e s u l t e d i n a f e e l i n g doubt and m i s t r u s t by the m a j o r i t y of the The was  of  people.  next step to purchase land near P r i n c e Rupert  begun by the Grand Trunk P a c i f i c i n 1906.  On  February  5 n e g o t i a t i o n s opened at Old M e t l a k a t l a between E . G. R u s s e l l , r e p r e s e n t i n g the company, and s e r v a t i o n on Digby and Kaien Peninsula.  A l s o present  I n d i a n Agent, Morrow.  the Indians who  I s l a n d s and on the  were Bishop Du Vernet  The  owned the  Tsirapsean and  the  negotiations lasted for f i v e  1. V i c t o r i a D a i l y Times, March 8,  1906.  re^  days,  143 R u s s e l l wished to buy the whole r e s e r v a t i o n f o r $5.00 per a c r e , but  the I n d i a n s r e f u s e d and demanded $10.00.  The agreement  was signed on Saturday, February 10, and by i t the Indians agreed to s e l l 13,519 acres at a p r i c e o f $7.50 each.  On  March 28, 1906, the Grand Trunk P a c i f i c a p p l i e d to the Department o f Indian A f f a i r s f o r the r i g h t to purchase t h i s land. I t took much longer, however, to make an agreement with the B r i t i s h Columbia government, f o r i t was  determined  to use i t s power of v e t o as allesrer t o f o r c e s e v e r a l ions from the r a i l w a y .  1  concess-  T h i s a t t i t u d e not o n l y caused a  q u a r r e l with the Grand Trunk P a c i f i c , but a l s o r e s u l t e d i n a decided  s t r a i n between the C o n s e r v a t i v e  government of B r i t i s h  Columbia and the L i b e r a l government at Ottawa.  In the ex-  change of l e t t e r s R i c h a r d McBride showed h i m s e l f e q u a l to the pressure  from Ottawa,  i n one i n s t a n c e he wrote, "I beg to  s t a t e that the a c t i o n of the F e d e r a l government i n connection with I n d i a n r e s e r v a t i o n s i n B r i t i s h Columbia has been so uns a t i s f a c t o r y o f elate t h a t , as at present a d v i s e d ,  this  government does not i n t e n d to enter i n t o any other f u r t h e r arrangements w i t h the Indian a u t h o r i t i e s . "  2  Had t h i s been  done i t would have been a great blow to the r a i l w a y plans*, but 1. supra,  103.  2. Correspondence between the government of Canada and, the government of B r i t i s h Columbia r e l a t i n g to the A p p l i c a t i o n of the Grand Trunk P a c i f i c Railway-Company to a c q u i r e a p o r t i o n of the M e t l a k a t l a Indian Reserve, B. C. Government P r i n t i n g Bureau, 1908. The above q u o t a t i o n was w r i t t e n on March 3, 1907.  i t was way  only p a r t of the game by which McBride f o r c e d the  to b u i l d from the west and agree to h i s other demands.  agreement with the B r i t i s h Columbia government was February  28, 1908,  the I n d i a n s .  over two  ment by law. s i t e was  signed  on  By i t the p r o v i n c e r e c e i v e d $2.50 an a c r e , as w e l l  The  to be  to the  completed by October 1, 1908.  p r o v i n c e agreed  govern-  survey of 2ij000 acres of P r i n c e Rupert townI t was  approved,by the Commissioner of Lands and Works, and  surveyor.  The  years a f t e r the agreement with  as the quarter of the land t h a t was reconveyed  one  rail-  to pay one-quarter The  of the eost and  to be the  to appoint  province v/as to r e c e i v e every f o u r t h  feet of waterfront.  1,000  A l l land o u t s i d e of the township area,  whether i t be the o r i g i n a l 10,000 acre grant or the  new  13,519 acre allowance,  was  1,000  f e e t wide, or i n t o 40 acre b l o c k s , by  feet  long by 150  October 1, 1909.  to be d i v i d e d i n t o water frontage  S t r e e t ends which r a n i n t o the sea were  always to remain open to the p u b l i c .  The r a i l w a y agreed  not to e x p r o p r i a t e any water f r o n t a g e belonging The  company obtained a 60 f e e t right-of-way  and  i t was  to the p r o v i n c e .  on Kaien I s l a n d ,  r e q u i r e d to s t a r t c o n s t r u c t i o n work a t P r i n c e  Rupert by June 1, 1908,  and work c o n t i n u o u s l y eastward.  This  c l a u s e and the c l a r i t y with which i t i s worded, so t h a t there iB no p o s s i b i l i t y of the r a i l w a y b e g i n n i n g at P r i n c e Rupert and then not C o n t i n u i n g s t e a d i l y eastward, speaks w e l l f o r the astuteness o f R i c h a r d McBride and  shows that he d i d not  anything to the good i n t e n t i o n s o r honesty Pacific.  leave  of the Grand Trunk  Three other minor c l a u s e s s t a t e d t h a t the r a i l w a y  145. company must buy pay  i t s s u p p l i e s i n the p r o v i n c e  the p r e v a i l i n g wages f o r l a b o r , and  exempt on these lands u n t i l The was  1921.  i f p o s s i b l e , must  t h a t i t was  to be  tax  1  f i n a l agreement with the Grand Trunk; P a c i f i c  a v e r y d e s i r a b l e one f o r B r i t i s h Columbia, and due  credit  must be g i v e n to S i r R i c h a r d McBride f o r the manner i n which he fought the company and o b t a i n e d t h e i r consent demands.  He played them at t h e i r own  r e s u l t of h i s work i t was  determined  to h i s  game, and won.  As  a  that the r a i l w a y would  not have a s t r a n g l e - h o l d on P r i n c e Rupert as the Canadian P a c i f i o had obtained  i n Vancouver, t h a t the businessmen and  workers of the p r o v i n c e would be p r o t e c t e d , and r a i l w a y must b u i l d from the B r i t i s h Columbia  that the  end.  As a r e s u l t of these agreements the Grand Trunk P a c i f i c Railway  c o n t r o l l e d 22,519 a c r e s .  These c o n s i s t e d of  12,579 acres on K a i e n I s l a n d , 6,700 acres on Digby I s l a n d , and  4,240 a c r e s on the Tsimpsean P e n i n s u l a .  I t a l s o con-  t r o l l e d about 50 acres on e i g h t small i s l a n d s nearby. P r i n c e Rupert began w i t h the Grand Trunk P a c i f i c Railway.  In 1906,  when the f i r s t  survey p a r t y a r r i v e d  on  Kaien I s l a n d , there were about 15 small b u i l d i n g s b u i l t the townsite, and on November 23 of that year the post was  opened.  on office  An attempt was made by the r a i l w a y to prevent  people  s e t t l i n g i n the new  sold.  An  c i t y before i t was  planned  and  i n t e r e s t i n g example i s John Houston, a p o l i t i c i a n  from Nelson, B r i t i s h Columbia, who  attempted to p u b l i s h a  1. P r i n c e Rupert Empire, March 7,  1908  146. newspaper t h e r e .  His first  and mailed to P r i n c e Rupert.  few i s s u e s were p r i n t e d i n Vancouver When he f i n a l l y  landed h i s  p r e s s e s i n the l a t t e r c i t y , they were s e i z e d and l o c k e d up by the r a i l w a y company, i n an attempt e s t a b l i s h m e n t s , but the  to prevent  independent  s h e r i f f f r e e d them and the  paper o f P r i n c e Rupert, The Empire, was begun.  first  news- •  In i t s f i r s t  e d i t i o n i s g i v e s a n i n t e r e s t i n g p i c t u r e of t h e town a t t h a t time. N o n e of the land has b e e n s u b d i v i d e d i i h t o l o t s and b l o c k s . No person has been allowed t o l o c a t e on i t , and there i s n e i t h e r a h o t e l nor l o d g i n g house. Traders are discouraged by the G r a n d T r u n k P a c i f i c . There a r e . however, l o c a t e d the C a n a d i a n Bank of Commerce, two hardwares, one d r u g g i s t , two d o c t o r s , one barber, one butcher, and two c o n s t r u c t i o n comp a n i e s . The customs and post o f f i c e a r e i n t e n t s . The Grand Trunk P a c i f i c i s represented b y James H . BaCon, the harbor engineer, and <j. ti. P i l l s b u r y , the a s s i s t a n t e n g i n e e r . The Church o f England i s under Bishop Du Verney, but the P r e s b y t e r i a n church has not been permitted to l o c a t e . The t o t a l p o p u l a t i o n is 123 whites, 15 J a p s , 3 Indians and 9 Chinese. There are 14 white women and 11 c h i l d r e n . 2  The f i r s t was  sod on the  western  e n d of the r a i l w a y  turned on May 7, 1908. Surveying of the townsite w a s  done d u r i n g the y e a r .  On October  19 the p r o v i n c i a l government  concluded arrangements w i t h the Grand Trunk P a c i f i c Town a n d Sevelopment Company by which i t agreed for  to advance |200,000  three years a t 5$ f o r the improvement o f the t o w n s i t e .  3  1. T h i s i s probably a r e f l e c t i o n of the i n f l u e n c e o f Senator Cox, who was p r e s i d e n t of the bank a t that time. 2. P r i n c e Rupert "Empire, J u l y 20, 1907. A l l the people i n the town a r e t o be found l i s t e d i n t h i s i s s u e . Another e a r l y d e s c r i p t i o n o f the town i s t o be found i n the Vancouver D a i l y P r o v i n c e , January 19, 1907, 42. 3. P r i n c e Rupert  Empire, October  24, 1908  147. There was  some d i s c u s s i o n of the survey i n the L e g i s l a t u r e  on February 21,  1909,  when i t was  shown t h a t a sum  of $280,000  •had been set a s i d e f o r t h i s , which was  an average o f $15,00 per  acre as compared to $.25  other p a r t s of the  province.  f o r surveying  1  During the p e r i o d of n e g o t i a t i o n s a s u b t l e v e r t i s i n g campaign was  c a r r i e d on to acquaint  chasers w i t h the o p p o r t u n i t i e s was  i n magazines and  newspapers, and  center f o r the Orient was  misstatement p u b l i s h e d  was  ad-  probable  of P r i n c e R u p e r t .  chosen as t h e o r e s u l t f o f a c o n t e s t ,  trade  1  The name  the harbor was  the f u t u r e of the stressed.  The  pur^-  praised  c i t y as a  most g l a r i n g  that the r a i n f a l l was  13  inches  N  f o r the year 1908, little  was  when i t should have been 13 f e e t .  known of t h i s s e c t i o n o f the country at that time t h a t  t h i s e r r o r probably went u n n o t i c e d On May  29,  1909,  by most of the  readers.  with about 2,000 s p e c t a t o r s ,  a u c t i o n of l o t s commenced i n Vancouver under C. S. s a l e l a s t e d f o r f i v e days i n Vancouver and two 2400 l o t s were s o l d , one-half ernment and  the other-to  S e a t t l e bought the 50 by  100  first  the  company.  lot.  The  to be paid  the  Rand.  The  in Victoria.  of which belonged to the  f e e t v/as $16,500 f o r the  Second S t r e e t s . was  So  gov-  Westhaven Brothers  of  record p r i c e for a l o t corner  of McBride  Terms were one-quarter cash and  and  the remainder  i n three years or l e s s with i n t e r e s t at s i x  1. 1'innipeg Free P r e s s , February 25, 1909. c f . L e g i s l a t i v e J o u r n a l s B.C., February 25, 1909, r e s o l u t i o n 189. 2. Laut, Agnes, " R a i l r o a d F i g h t f o r Canada", The WorId's Work, May 1909. p.11600. T h i s a r t i c l e g i v e s an e x c e l l e n t account of e a r l y P r i n c e Rupert and the t r a c k b u i l d i n g near i t .  148. percent.  S e v e r a l l o t s were r e s e r v e d  f o r purchase hy p r i v a t e  s a l e , and i t was announced on June 18, 1909, that the p a r t i e s who had r e s e r v e d  these were to pay almost double the amount  1 agreed on. In May 1909 the f i r s t m u n i c i p a l and  Fred Stork was e l e c t e d mayor.  e l e c t i o n was h e l d ,  The assessment of the c i t y  was s e t a t $1.5,330,166-, of which the Grand Trunk P a c i f i c was r e s p o n s i b l e f o r $7,728,450. The vigorously.  r a i l w a y company p r o t e s t e d t h i s assessment  I t was ppintededut that 340 acres of t h i s  property  could not be s o l d u n t i l 1963 under the terms of the Dominion Act and to c o n f i r m  to the bond mortgages.  C h a r l e s M.. Hays  suggested that the c i t y t a x the r a i l w a y o n l y $6,000 f o r 15 y e a r s . - When the c o u n c i l proved stubborn the Grand Trunk P a c i f i c r e s o r t e d to i t s u s u a l t h r e a t e n i n g methods.  Hays  spoke 6 f P o r t Simpson d u r i n g the n e g o t i a t i o n s , and the imp l i c a t i o n was an obvious t h r e a t .  Moreover the r a i l w a y  announced that i t d i d not i n t e n d to b u i l d a h o t e l and to make other pointed and  improvements under the circumstances.  out t h a t F o r t W i l l i a m had granted  I t was  a subsidy o f $300,000  t a x exemption f o r 15 years and t h a t Edmonton l i k e w i s e  had been l i b e r a l . stated:  I n two l e t t e r s to the c i t y  c o u n c i l Hays  "Our next important work on hand i s a f l o a t i n g d r y -  dock, but I do not wish to take any f u r t h e r steps  i n con-  n e c t i o n with t h i s work u n t i l the q u e s t i o n of t a x a t i o n has been disposed  of,"  3  and, "The land cannot be s o l d and t h e r e f o r e  1. P r i n c e Rupert D a i l y News, June 18, 1909. 2. P r i n c e Rupert O p t i m i s t , September 6, 1910. 3. i b i d . , Sept. 9, 1910. L e t t e r dated June 28, 1910.  does not p a r t i c i p a t e i n i n c r e a s i n g value as o t h e r p r o p e r t y . . . . The p o i n t that I t h i n k you and your c o u n c i l are o v e r l o o k i n g i s whether you s h a l l o f f e r inducement  f o r f u r t h e r e x p e n d i t u r e s on  the p a r t o f the Grand Trunk P a c i f i c Railway, or whether  you  w i l l he content with what you have at the p r e s e n t time."" " 1  Smithers spoke t h r e a t e n i n g l y o f , "The m i l l i o n d o l l a r which P r i n o e Rupert might have h a d . "  hotel  2  In November 1910 the c i t y a s s e s s o r quoted the tax expected from the r a i l w a y as $101,497.50; the Board of Trade suggested a compromise of $15,897.50.  Hays o f f e r e d $5,000  per annum f o r twenty years i n l i e u of a l l taxes payable during that p e r i o d , i n c l u d i n g a l l  l a n d s o l d or l e a s e d by the r a i l w a y ,  and i n r e t u r n i t would donate s i t e s f o r a c i t y h a l l ,  reservoir  3 and cemetery, to the c i t y . The f i n a l agreement it  was made on June 8, 1911.  the r a i l w a y agreed to pay $15,000 i n taxes f o r 1910  f o r the next 10 y e a r s .  The c i t y was  By  and  to r e c e i v e 100 f e e t o f  waterfront from the r a i l w a y and another 100 f e e t from the B r i t i s h Columbia government, as w e l l as 58 o t h e r p i e c e s of land.  The Grand Trunk P a c i f i c agreed to s t a r t a $20,000,000 4  drydock and other work immediately,  Work was begun on the  drydock on J u l y 7, and w i t h i n the next two months on the s t a t i o n and  round-house. In 1907 the Grand Trunk P a c i f i c Inn was b u i l t a t  K n o x v i l l e on Rupert Road, and 1912 was moved to a new s i t e on 1. P r i n c e Rupert Optimist.September 9, 1910. L e t t e r dated J u l y 20, 1910. 2. i b i d . , September 17, 1910. 3. i b i d . , November 4, 1910. L e t t e r dated October 26, 1910. 4. i b i d . , June 8, 1911.  150. Center S t r e e t . in  1913.  v/ith 15  I t burned on December 14,  On August 4, s t o r i e s and  1913,  1912,  and  a l a r g e h o t e l , valued  w i t h 50 rooms was  contracted  was  rebuilt  a t |2,000,000  to  Archie  McDougall. The waterfront,  hut  r a i l w a y attempted t o l a y a t r a c k around the c o u n c i l p r o t e s t e d .  However, they  drew the p r o t e s t on being assured that the filled The  only as f a r as the  s i t e of the c o l d storage  Grand Trunk P a c i f i c took no  f i l l e d past  l a y s would  them to Seal Cove.  be  plant.  I t was  not  u n t i l too  been done.  c i t y has been.handed a gold b r i c k . "  1  late  said,  Another s i m i l a r  example of t h i s d i s r e g a r d f o r the r i g h t s of others by  the  i s shown i n the p r o t e s t which s i x P r i n c e  Rupert companies presented to the Railway Commission. complained t h a t , while they had 2 Cameron Bay  f o r some years,  i t by a s o l i d embankment. P a c i f i c had but  been l e s s e e s o f land  the r a i l w a y company had  I t was  not r e c e i v e d a p p r o v a l  i n s p i t e of t h i s had  r a i l w a y was  and  Alderman P'arcy  Tate summarized t h e i r f e e l i n g s i n the matter when he  Grand Trunk P a c i f i c  with-  n o t i c e of t h i s agreement  that the c o u n c i l r e a l i z e d what had  "The  the  They on blocked  shown t h a t the Grand Trunk f o r t h i s s e c t i o n of the  i l l e g a l l y begun to c o n s t r u c t  it.  road, The  ordered to leave an opening 30 f e e t wide to  permit the passage of  scows.  3  1. P r i n c e Rupert D a i l y Hews'? J u l y 4,  1911.  2. There seems to be a number of names f o r t h i s i n d e n t a t i o n , such as Cameron Bay, Cow Creek, Cow Bay, and Market Cove. 3. S e s s i o n a l Paper 1913,  J2Q  C o ) , 295.  151 A s i m i l a r case o c c u r r e d on the P r i n c e Rupert west l i n e , where the company had proceeded could not complete "The  without p e r m i s s i o n but  the work without i t .  I t was found  that,  r e q u i r i n g of the a p p r o v a l of the route map by the  M i n i s t e r o f Railways, the r e q u i r e d p l a n , p r o f i l e ,  and book of  r e f e r e n c e to be prepared and f i l e d with the Board, were a l l overlooked by the company.  Instead of p r o c e e d i n g as the law  r e q u i r e d , work was commenced and stone f i l l s  were c o n s t r u c t e d  across t i d a l l a n d s , and a c c e s s from the harbor to the l o t s o f sewrarl persons, i n c l u d i n g a s a w m i l l , was cut o f f .  1  Thus i t may be seen t h a t P r i n c e Rupert owes much, both good and bad, to the Grand Trunk P a c i f i c ,  but the r a i l -  way a l s o owes much to the c i t y . 2  What had aeen a u s e l e s s bay  in  The h i s t o r y of t h i s  1903 became a c i t y by 1910.  shows more c l e a r l y Grand Trunk P a c i f i c  change  than i n any other p l a c e the a t t i t u d e o f the Railway - i t s p o l i t i c a l i n f l u e n c e , the  rumors of g r a f t , i t s money-making methods, and i t s b l a c k m a i l ing  system.  The Grand Trunk P a c i f i c  but i t was with a s e l f i s h motive  Railway made P r i n c e Rupert,  and by dubious methods. Todj^r,  as the c i t y t r i e s to develop, i t need f e e l l i t t l e towards the company which gave i t b i r t h .  1.  S e s s i o n a l Paper 20(c) 1915, 294.  2*  The p o p u l a t i o n 1907 1908 1909 1910 1920  grew as f o l l o w s : - 150 - 650 - over 2,000 - 5,000 - 6,900  gratitude  152.  Chapter ¥ 1 1 1 . The Cost  of the Grand Trunk P a c i f i c  To an economist the f i n a n c i n g and mounting c o s t s of the Grand Trunk P a c i f i c Railway o f f e r  a wide and f e r t i l e  f i e l d f o r e x p l o r a t i o n , but to one who i s not an economist the intricacies  o f o b t a i n i n g money f o r the r a i l w a y are much too  i n v o l v e d to be thoroughly  understood.  So important i s t h i s  phase i n the f a i l u r e o f the r a i l w a y , however, t h a t i t cannot be ignored  i n any t h e s i s on the Grand Trunk P a c i f i c .  The  h i s t o r y o f the r a i l w a y r e v e a l s how the o r i g i n a l estimates  were  f a r f r o m c o r r e c t , and i t i s p o s s i b l e to t r a c e the reasons f o r the mounting c o s t s through the y e a r s . In the o r i g i n a l c o n t r a c t f o r the c o n s t r u c t i o n of the r a i l w a y the suggested f i g u r e s f o r the c o s t , which i t was expected the government would guarantee, were $30,000 a m i l e on the N a t i o n a l T r a n s c o n t i n e n t a l ,  $13,000 on the p r a i r i e  s e c t i o n , and $30,000 on the mountain s e c t i o n . the f i g u r e s amounted to roughly  I n 1914 and 1915  $88,500 per m i l e f o r the  N a t i o n a l T r a n s c o n t i n e n t a l , $145,180 f o r the p r a i r i e s e c t i o n , and between $97,035 and $102,975 f o r the mountain s e c t i o n . 1918 the average cost of. a l l the Grand Trunk P a c i f i c estimated  at over $73,000 p e r m i l e . The  1  In  l i n e s was  2  enormity of t h i s cost can best be a p p r e c i a t e d  !• H. C. D. 19.14, February 19, 922. 2. Jackman, W. T., Economic P r i n c i p l e s o f T r a n s p o r t a t i o n , Toronto, 1935, 42.  by a comparison with the c o s t s of other  Canadian r a i l w a y s .  The  cost of road and equipment of the Canadian N o r t h e r n was estimated at ;i?43,786 per m i l e , but that of the Grand Trunk Pacific  was $85,276.  1  The funded debt of the Canadian P a c i f i c  was f18,000 per m i l e , that o f the Canadian Northern was $32,588 but  that of the Grand Trunk P a c i f i c was $73,000.  2  In 1903 S i r W i l f r e d L a u r i e r had i n t r o d u c e d the Grand Trunk P a c i f i c be g r e a t e r  scheme by s t a t i n g that the cost would not  than §13,-000,000 to the country f o r the e n t i r e ,  transcontinental railway.  Robert Borden i n r e p l y estimated  the cost a t the "extreme" f i g u r e o f $13,000,000 f o r the p r a i r i e s and $28,000,000 f o r the mountains.  rhe Grand Trunk  P a c i f i c Railway was c a p i t a l i z e d i n the o r i g i n a l $45,000,000.  The N a t i o n a l T r a n s c o n t i n e n t a l  contract at  Railway had been  estimated at $61,415,000, but the a c t u a l cost was $159,881,197.' T&e a c t u a l cost of the Grand Trunk P a c i f i c  i s more  to determine, because of the number of s u b s i d i a r y and other  i n t e r e s t s which i t had.  might be best  difficult companies  The t o t a l c o n s t r u c t i o n  taken a t a f i g u r e of $113,612,011.  4  cost  Altogether  the r a i l w a y had cost approximately three times the o r i g i n a l estimate. 1. Railway I n q u i r y Commission, 1917, x i i i . 2. Jackman, o p . . c i t . , 42-44. 3. Railway I n q u i r y Commission, 1917, x x i i i . 4. i b i d . , 56. The d e t a i l e d summary i s as f o l l o w s : Main l i n e , p r a i r i e , $27,801,998 Malin l i n e , mountain, 65,782,278 Branch L i n e s Co. 19,849,778 Saskatchewan Railway 17 7,957  154 T h e reasons f o r t h i s enormous i n c r e a s e were numerous. The c o m p e t i t i o n which ein sued from the b u i l d i n g of the Northern and the development  of the Canadian P a c i f i c caused the  cost of m a t e r i a l s and l a b o r to s k y - r o c k e t .  I n 1909  p o i n t e d out that l a b o r e r s ' wages, which were $1.25 per day i n 1903,  were then I2.25.  1  i t was to  Oh the mountain  $1.50  s e c t i o n the  wages soared to $3.50 per day and even then the men 2 work s a t i s f a c t o r i l y .  Canadian  would not  T i e s had i n c r e a s e d from between 25 and  28 cents to 50 and 60 c e n t s , and even at that p r i c e were s c a r c e . Timber  f o r c u l v e r t and t r e s t l e s i n c r e a s e d from 30 637 32 cents to  38 c e n t s .  S t e e l r a i l s gained from $25' <br $28 per t o n to $35  or $36, and b e s i d e s t h i s a duty of $7.00 per ton was Another reason f o r the h i g h c o s t was  added.  the standard  of c o n s t r u c t i o n adopted, a t the i n s i s t e n c e of Hays.  The r o a d -  bed was b u i l t on a par with the l i n e from M o n t r e a l to T o r o n t o . The r a i l s used were 80 pounds to the yard i n s t e a d of 65 pounds, making a d i f f e r e n c e of 23 tons to the m i l e .  3  The h i g h standard  achieved i s shown by the f o l l o w i n g condemning q u o t a t i o n : [The Yellowhead^)' i s the lowest pass to the P a c i f i c coast...the a l t i t u d e of the t r a c k b e i n g not more than 4,000 f e e t . Except f o r twenty m i l e s of what i s c a l l e d a pusher grade, where the grade i s about one p e r c e n t , the r e s t of the l i n e does not exceed a h a l f of one p e r c e n t . The b r i d g e s are of stone and s t e e l . Material f o r them had to be t r a n s p o r t e d by r i v e r and other expensive methods, so that the cost was g r e a t l y i n c r e a s e d . The w e l l - e s t a b l i s h e d and economical method of b u i l d i n g such a road i s t o b u i l d p i l e and wooden b r i d g e s , temporary s t r u c t u r e s , and use them u n t i l they cease to be s a f e , and then to s u b s t i t u t e 1  1. H.C.D. 1909, 5128. 2. Railway I n q u i r y Commission, 1917, 3. H. C. D. 1909,  5128.  82.  155. a more permanent m a t e r i a l , which can he t r a n s p o r t e d over the l i n e s o f r a i l w a y a t the l e a s t c o s t . To secure the low grades of which I have spoken, the immense t r e s t l e s over r a v i n e s i n the p r a i r i e p r o v i n c e s and elsewhere along the l i n e have heen c o n s t r u c t e d with a view t o t h e i r b e i n g f i l l e d up with d i r t and thus made permanent. I t would have been more economical to begin with l e s s f a v o r a b l e grades and g r a d u a l l y b e t t e r them as the t r a f f i c j u s t i f i e d it." 1 The  d i v i s i o n of r e s p o n s i b i l i t y between the govern-  ment and the company r e s u l t e d i n lack of economy and mounting costs.  There have been many ruuors and i n v e s t i g a t i o n s  that much of t h i s waste was a r e s u l t of p o l i t i c a l and  charging  influence  g r a f t , but no proof has been forthcoming t o e s t a b l i s h a  c l e a r case f o r these charges.  An i n v e s t i g a t i o n by a Royal  Commission i n 1914 r e s u l t e d i n the f o l l o w i n g f i n d i n g s : (a) that the T r a n s c o n t i n e n t a l Railway Commission, the Grand Trunk P a c i f i c and those having charge of the c o n s t r u c t i o n o f the r a i l w a y d i d not cons i d e r i t necessary or d e s i r a b l e t o p r a c t i s e or encourage economy i n the b u i l d i n g o f the road; (b) t h a t without i n c l u d i n g the money which was expended u n n e c e s s a r i l y i n b u i l d i n g t h e r a i l w a y east of the S t . Lawrence R i v e r , there was an uneconomic expenditure of f40,000,000 i n i t s construction. The main reasons f o r these c o n c l u s i o n s were (a) that the Government committed the country to the c o n s t r u c t i o n of the r a i l w a y of .4 percent grades a g a i n s t eastbound and .6 percent a g a i n s t westbound without knowing whether these grades f i t t e d the country and w i t h very l i t t l e i n f o r m a t i o n as t o the c o s t of b u i l d i n g such a r a i l w a y , (b) t h a t the t a b l e s of f i g u r e s drawn up to enable the e n g i n e e r s to equate the value o f the grades and curvatures were based upon the assumption that the road would at once r e c e i v e the maximum t r a f f i c i t was p o s s i b l e t o c a r r y over a s i n g l e t r a c k of low g r a d i e n t s , (c) that the c o n d i t i o n s f o r submitting tenders f o r the c o n s t r u c t i o n of the raod was so onerous as to discourage competitive b i d d i n g . 1.  Grand Trunk A r b i t r a t i o n , 1931:$ 1184 .Railways rnd 19 21 , 184.,  156. As e a r l y as 1908, those i n charge o f the p r o j e c t were informed by the c h i e f engineer i n charge of cons t r u c t i o n that the road would cost at l e a s t one hundred percent more than the h i g h e s t estimate p r e v i o u s l y g i v e n to p a r l i a m e n t . With a l l t h i s i n f o r m a t i o n before them...we do. not f i n d any r e c o m m e n d a t i o n s . o r p r o t e s t ...for retrenchment. 1  The o t h e r causes f o r the h i g h c o s t of the r a i l w a y are worth n o t i n g . that there was  The r a i l w a y was  so l o n g i n being opened  a l a r g e amount of accumulated i n t e r e s t due  and  unpaid before i t began i t s s e r v i c e , and the p r e l i m i n a r y surveys had c a l c u l a t e d the l i n e to be about 130 m i l e s s h o r t e r than i t was  necessary  to b u i l d .  2  The huge amount of money needed f o r t h i s vast undertaking or l a n d .  was  obtained by bonds, loans, and  g r a n t s of money  The bonds v/ere. of s e v e r a l types, and were  by the Grand Trunk Railway, governments, and,  the Dominion government, p r o v i n c i a l  i n the case of some s u b s i d i a r i e s , by  Grand Trunk P a c i f i c Railway  Company i t s e l f .  from the Dominion government.  the  Loans were made  Land grants had been d i s -  continued by the f e d e r a l government i n 1896, gave l a v i s h l y .  guaranteed  but the p r o v i n c e s  Many towns and c i t i e s added g r a n t s of land  f o r the p r i v i l e g e s of haying the r a i l w a y b u i l t  to them.  Gash  s u b s i d i e s were obtained from these c i t i e s , as w e l l as from the ""5  p r o v i n c i a l governments.  I t must be again noted  t h a t although  the government guaranteed bonds and loaned money to the r a i l 1. S e s s i o n a l Paper 125,"" 1914. c f . F o u r n i e r , L. T., Railway N a t i o n a l i z a t i o n i n uanada, Toronto, 1935, 21. 2. G. A. R. 1909, 605. 3. The Dominion Bureau of S t a t i s t i c s p u p p l i e d the f o l l o w i n g summary of p r o v i n c i a l a i d to the Grand Trunk P a c i f i c : (continued next paga)  way i t d i d not expect to have any a c t u a l expenses except f o r the  interest  f o r seven years on the mountain s e c t i o n , which i t  p a i d , and from which L a u r i e r d e r i v e d h i s f i g u r e of $13,000,000. The money f o r the r a i l w a y was expected to he r a i s e d by the s a l e of bonds, and u n t i l 1910 t h i s method s u f f i c e d . In  1905 Hays procured r a t i f i c a t i o n by p a r l i a m e n t of three mort-  gages,  the f i r s t  1  b e i n g f o r £14,000,000 f i r s t mortgage  bonds  on the Grand Trunk P a c i f i c guaranteed by the Dominion of Canada, the  second f o r £4,150,000 second mortgage bonds u n c o n d i t i o n a l l y  guaranteed as to p r i n c i p l e and i n t e r e s t by the Grand Trunk 2 Railway  and f o r £1,550,000 f i r s t mortgage bonds on the Lake  S u p e r i o r branch u n c o n d i t i o n a l l y guaranteed by the Grand Trunk Railway.  These bondsissues were a l l s u c c e s s f u l and r e s u l t e d  i n $30,000,000 being p l a c e d at the c r e d i t o f the company i n London. In  1906 an i s s u e of $25,000,000 of debenture stock  was a u t h o r i z e d .  T h i s was to be a charge on the r a i l w a y and  equipment subsequent to the l i e n s a u t h o r i z e d by the o r i g i n a l 3.(continued) O n t a r i o - f o r Lake S u p e r i o r Branch $376,320 B r i t i s h Columbia - on account of F r a s e r R i v e r bridge 350,000 Fort William 300,000 - on account o f bridge 50,000 Edmonton - on account of t e r m i n a l s 100,000 1. S t a t u t e s , 1905, ch. 98. 2. These were d i v i d e d i n t o £2,100,000 on the p r a i r i e and £2,050,000 on the mountain s e c t i o n .  section  c o n t r a c t s and was guaranteed by the Grand Trunk Railway. 1911 o n l y about $8,000,000 of t h i s stock had not been In 1907 two f u r t h e r i s s u e s were made. was o v e r s u b s c r i b e d ,  The f i r s t ,  By  issued.  1  f o r $5,000,000  but the second, f o r $10,000,000 was t a k e n  up much mbmshx^lyIn 1909 Hays pushed through p a r l i a m e n t  an a c t i n c r e a s -  i n g the i s s u e o f guaranteed stock to £18,500,000.  T h i s gave  him £2,500,000 of a d d i t i o n a l stock, over £8,000,000 o f which was i s s u e d by June 1918. He a l s o i n c r e a s e d  the debentures  stock up to £l0,000,000.ofpar.tso£tthislisum was. used f o r the a c q u i s i t i o n o f the bonds of the Grand Trunk P a c i f i c Elevator at Fort W i l l i a m .  2  " A l t o g e t h e r i n 1918, out of a  t o t a l c a p i t a l i z a t i o n o f $816,512,540, there (88$)  Terminal  was $190,568,540  o f bonds and $25,944,000 (12$) of s t o c k .  Such a l a r g e  p r o p o r t i o n of the c a p i t a l i z a t i o n i n the form of funded debt meant there was a c c o r r e s p o n d i n g l y  l a r g e amount of f i x e d  charges.  In 1918 these f i x e d charges amounted t o $8,456,408 p e r annum." From 1909 loans and guarantees by both f e d e r a l and p r o v i n c i a l governments were numerous. glee  that the Conservative  I t was with  great  p a r t y , l e d by Borden, reminded  L a u r i e r of h i s statement i n 1903 t h a t , The sum t o t a l o f the money to be p a i d by the government f o r the c o n s t r u c t i o n of the l i n e from Moncton t o the P a c i f i c w i l l be i n the neighborhood of $12,000,000 or $13,000,000 and n o t a cent more. However, the o p p o s i t i o n r e a l i z e d t h a t the r a i l w a y had advanced too f a r to be stopped and t h e r e f o r e they o f f e r e d 1. L o v e t t , H. A., o p . c i t . , 164. 2. i b i d . , 161. 3. Jackman, W. T., o p . c i t . , 42.  little  o p p o s i t i o n to the h i l l a u t h o r i z i n g the f i r s t Trunk P a c i f i c .  loan to the Grand  " P u b l i c f a i t h and p u b l i c honor demand that the  c o n t r a c t be c a r r i e d out, ""'"stated Borden, and at another time, "The country has embarked  upon t h i s p r o j e c t and I agree that  2 the  work must not s t o p . "  r e v e a l s why of  In t h e s e s i g n i f i c a n t  sentences he  t&$ C o n s e r v a t i v e s advanced money f o r the c o m p l e t i o n  the road when they succeeded to o f f i c e  i n 1911.  F u r t h e r loans were made to the company i n 1913, 1916, 1917, and 1918. company slumped. the  As the y e a r s passed the c r e d i t of the  Whereas the f i r s t  i s s u e s were o v e r s u b s c r i b e d ,  l a t e r ones were taken up more s l o w l y , and I n 1913 the  loan brought only 97 c e n t s on the d o l l a r .  The f i r s t  two  were i s s u e d at 4$, the.next two at 5$, but the l a s t two 6fo.  1914  loans paid  Even today Canadian bonds i n London are regarded w i t h  m i s t r u s t as a r e s u l t of the money which was i n v e s t e d i n the 3 Canadian Northern and Grand Trunk P a c i f i c . The Grand Trunk P a c i f i c cost an immense sum,  I t was  a great and expensive p r o j e c t , but the p r i c e was f a r i n excess of  what i t should, have been, and the problem of f i n a n c i n g i t •  was one that t e s t e d the a b i l i t i e s of the b u i l d e r s to the utmost.  In s t u d y i n g the ways i n which t h i s was a c h i e v e d the  f o l l o w i n g q u o t a t i o n , which was w r i t t e n i n 1903, takes on an added s i g n i f i c a n c e : 1. Borden's Autobiography, 225. 2. H.CD. 1909,  5117.  3. For a f u l l account of the Grand Trunk P a c i f i c funded debt see Appendix I I I .  160. Government guarentees of i n t e r e s t ; government i s s u e of debentures by way of loan to r a i l w a y eompanies; government guarantee of r a i l w a y bonds; d i r e c t i s s u e of government bonds t o r a i l w a y s with a f i r s t mortgage on the company's p r o p e r t i e s ; r e l e a s e of government loans by p l a c i n g them behind other l o a n s ; composition of government c l a i m s , - and i f there i s any other way that human i n g e n u i t y c o u l d d e v i s e , i t i s reasonably c e r t a i n t h a t the Canadian government has made f u l l use of i t . . The Canadian P a c i f i c Kailway had been a marvel of f i n a n c i n g , and had been a great  s t r a i n on Canada.  Apparently,  however, the Canadian people had not been impressed by the methods of r a i l w a y f i n a n c i e r s to the extent another s i m i l a r scheme.  of being wary o f  A f t e r the f i a s c o of the Grand Trunk  P a c i f i c and Canadian Northern,  i t may be expected that  they  w i l l be much more c a r e f u l i n t r u s t i n g to the good f a i t h and f i n e promises of the next great o r g a n i z a t i o n which promises "a n a t i o n a l t r a n s c o n t i n e n t a l f o r $13,000,000."  1. Le R o s s i g n o l , united States."  £., "Railway s u b s i d i e s i n Canada and the Canadian Magazine,XX. March 1903, 419.  161. Chapter IX. The L a s t Years of the Grand Trunk P a c i f i c i  From the time of i t s c o n c e p t i o n the Grand Trunk Railway  was  c r i t i c i z e d hy i t s f i n a n c i a l and p o l i t i c a l  opponents  and there were many p r e d i c t i o n s that i t would e i t h e r f a i l i t s e l f or e l s e b r i n g harm to the country i n some other way. the debate oyer the f i r s t  c o n t r a c t i n 1903  the o p p o s i t i o n t^'t  a t t a c k e d the b i l l more s t r e n u o u s l y than at any two  of them made statements  guessing, f o r e t o l d  other time,  i h e p a r t the f i n a l r e s u l t s of the road. "When the ten  years are over, i f the road i s not paying, the government be approached by the Grand Trunk P a c i f i c and w i l l be 1 not to exact i n t e r e s t . "  of  The  other man  He  s t a t e d , "I f a i l  to prophecy success-  or the Grand Trunk  Railway, e i t h e r of them, w i l l ever operate t h i s n o r t h  men  In the l i g h t  may  north  to see where the  government expects the Grand Trunk P a c i f i e  2  will  urged  Samuel .Hughes, a strong opponent of the l i n e  the Great Lakes.  road."  and  which, probably by hazardous  The Honorable I s r a e l T a r t e s a i d ,  - f u l l y was  In  shore  of subsequent events the words of these  show a remarkable  p e r s p i c a c i t y , but  they were more  p r o b a b l y lucky guesses by two p e s s i m i s t i c opponents to the scheme. In  s p i t e of such gloomy sentiments  from a  few,  however, the mass o f the people b e l i e v e d i n the r a i l w a y , f o r these were boom times, and .1. H. C. D. 2. i b i d . ,  1903,  11902.  9660.  i t was  impossible to r e a l i z e t h a t  162. depressions  and  f a i l u r e c o u l d come to Canada f o r many y e a r s ,  i f they occurred justified. and  at a l l .  Population  everyone was  had  was  the r a i l w a y seemed  mounting, i n d u s t r y was  thriving,  the p r o s p e r i t y of the times.  i n a few  years  the r a i l w a y was  But  beset.by  problems which even the most p e s s i m i s t i c  not f o r e s e e n ,  depression  was  enjoying  the bubble b u r s t , and d i f f i c u l t i e s and  Moreover, at f i r s t  In the Grand Trunk P a c i f i c  accentuated  the p e r i o d of  by the a c t i v e c o m p e t i t i o n  other roads, by i n c r e a s i n g c o s t s , by  of  the d e p r e d a t i o n s  the  of  s p e c u l a t o r s , and by the i n f l u e n c e of p o l i t i c s . The  first  s i g n . o f the t r o u b l e which was  on the Grand Trunk P a c i f i c became obvious i n 1909 r a i l w a y was  f o r c e d to apply  $10,000,000.  T h i s should  w  0 n Mr.  when the  have been a warning, but d i r e c t o r s , and  Hays' death i n 1912  been c l e a r to the chairman and  new  president  i t was  the work went i t must have  that both the  Grand Trunk andiGrand Trunk P a c i f i c were headed f o r bankruptcy u n l e s s a new could be  and a p p a r e n t l y  evolved  interviewed  Borden i n that year  d e s i r e d to be r e l e a s e d from the  Transcontinental was  b a s i s of c a r r y i n g forward the venture  found.Smithers  c o n t r a c t b i t was  refused.  to improve c o n d i t i o n s .  No  National new  policy  T h i s could h a r d l y  be  expected, f o r at that time the r a i l w a y s were s t i l l b u i l d i n g f u r i o u s l y , and  the next year i s recognized  year i n r a i l w a y expansion. LLovett,  o p . c i t . , 166.  up  to the government f o r a l o a n of  unheeded by both government and b l i n d l y forward.  to p i l e  "By  1914  as the  supreme  there were more than  2. Borden's Autobiography,  383  163. 30,000 m i l e s  o f road i n o p e r a t i o n ,  more in" v a r i o u s  w i t h some e i g h t or ten l i n e s  stages of completion; "Canada ranked  fifth  among the world's c o u n t r i e s i n t o t a l m i l e a g e , and e a s i l y i n mileage i n p r o p o r t i o n t o p o p u l a t i o n . ^ United  States,  " A l l eight provinces  first  Compared to the  (omitting Prince  Edward  I s l a n d ) have n e a r l y 2§ times the r a i l w a y mileage p e r c a p i t a 2 of the 26 s t a t e s d i r e c t l y a f f e c t e d hy border influences." T h i s f a v o r a b l e p i c t u r e was but an outer  shell,  however, f o r the r a i l w a y s t r u c t u r e was i n an advanced s t a t e of decay. years.  A p e r i o d of extreme d e p r e s s i o n  the boom  Land s p e c u l a t i o n c o l l a p s e d and wheat p r i c e s dropped.  To add to the confusion The  followed  the war brought a d d i t i o n a l s t r a i n .  cost of labor and m a t e r i a l s went s t i l l h i g h e r ,  immigra-  t i o n v i r t u a l l y ceased, and the i n t e r n a t i o n a l money markets closed.  "During 1917," s t a t e s Robert Borden, "we  continued  to be oppressed w i t h the d i f f i c u l t i e s o f the r a i l w a y s . War had e x e r c i s e d the p r o s p e c t s  The  a powerful and d e s t r u c t i v e i n f l u e n c e upon  of the Canadian Northern,tthe Grand Trunk, and  the Grand Trunk P a c i f i c . was g r e a t l y i n c r e a s e d alarming e x t e n t .  The cost of f u e l , m a t e r i a l and labour  so t h a t the net e a r n i n g s f e l l t o an  Owing to the c o n d i t i o n o f the money markets,  these r a i l w a y s were unable to dispose  o f s e c u r i t i e s which. 3  had been guaranteed by F e d e r a l The 1. 2. 3.  and P r o v i n c i a l  legislation."  railway s t r u c t u r e of Canada c o l l a p s e d . S k e l t o n , 0. D. L i f e and L e t t e r s o f S i r W i l f r e d L a u r i e r , Toronto. 1921. 415. Wilgus, Wm. J . The Railway I n t e r r e l a t i o n s of the u n i t e d S t a t e s and Canada, New Haven, 1937, 23. Borden's Autobiography, 648.  To understand the f a i l u r e of the Grand Trunk P a c i f i c Railway i t i s necessary to r e f e r f i r s t ments and contracts,.  t o the o r i g i n a l agree-  Because the Grand Trunk had not heen  w i l l i n g to support a complete new  t r a n s c o n t i n e n t a l r a i l w a y the  p r o j e c t had heen d i v i d e d i n t o two s e c t i o n s , the Western D i v i s i o n being b u i l t by the Grand Trunk P a c i f i c Railway Company and the E a s t e r n D i v i s i o n by the government the  National Transcontinental Railway.  under the name of  The governmanitt under- ;  took to guarantee payment of p r i n c i p a l and i n t e r e s t on the i s s u e of bonds made by the company f o r the c o n s t r u c t i o n o f the  Western D i v i s i o n f o r a ^ p r i n c i p a l amount e q u a l to 75% of „v  the  cost of c o n s t r u c t i o n , but t h i s was not to exceed $15,000  per  m i l e on the p r a i r i e  section.  I t a l s o undertook to pay  i n t e r e s t on the mountain s e c t i o n bonds f o r the f i r s t  seven  years, and f o r the succeeding three years i f the company should be unable t o do so.  These three years were to be  c a p i t a l i z e d and r e p a i d . On the other hand the Grand Trunk P a c i f i c undertook to for  l e a s e the eastern d i v i s i o n on completion and to operate i t f i f t y y e a r s , the f i r s t  seven of which should be f r e e of  r e n t a l , and the remainder a t a cost of t h r e e percent of the cost o f c o n s t r u c t i o n per annum.  In a d d i t i o n the company  agreed t o equip both d i v i s i o n s with complete and modern r o l l i n g stock, the f i r s t equipment of the completed road to be o f a value o f at l e a s t $20,000,000, o f which not l e s s than $5,000,000 were to be assigned to the E a s t e r n I t has been shown t h a t the c o s t s  Division. of the r a i l w a y  were f a r above the o r i g i n a l e s t i m a t e s .  This affected  r e n t a l which the Grand Trunk P a c i f i c was why  there was  of Winnipeg.  and  explains  d i f f i c u l t y over the l e a s i n g of a l l s e c t i o n s east The  Lookout, which was a l and  to pay,  the  f i r s t problem arose over the l i n e from Sioux the  j u n c t i o n of the N a t i o n a l T r a n s c o n t i n e n t -  the Port W i l l i a m branch of the Grand Trunk P a c i f i c ,  Winnipeg.  O b v i o u s l y the branch  l i n e would be i s o l a t e d  and  without  some agreement with the other road.  On December 4,  1912,  government and the company requested  S i r W i l l i a m Whyte of  the  Winnipeg to a c t as s o l e a r b i t r a t o r and to s e t a r e n t a l f o r that s e c t i o n of the N a t i o n a l T r a n s c o n t i n e n t a l which ran between Winnipeg and Sioux Lookout, pending remainder of the r a i l w a y ,  the completion  of the  he decided t h a t , "A f a i r r e n t a l f o r  the use of that p o r t i o n o f the road would be a sum e q u a l to two  percent of the c o s t of that p o r t i o n o f the r a i l w a y , i n c l u d -  i n g the shops, and  i n a d d i t i o n a sum  e q u i v a l e n t to t e n percent  of the c o s t of a c t u a l work done a t the shops of the E a s t e r n D i v i s i o n , and a f u r t h e r sum  of twelve  and  a h a l f percent  of  the t o t a l c o s t of work done other than f o r the E a s t e r n D i v ision."  1  The  company and government signed an agreement.to  t h i s e f f e c t on December 20,  1912,  but the company f a i l e d  to  take out a l e a s e . The  Western D i v i s i o n was  E a s t e r n D i v i s i o n i n 1915.  completed i n 1914  On January  13, 1915,  and  the  the M i n i s t e r  of Railways, Honourable E-. Cochrane, wrote to E.. J .  Chamberlain,  p r e s i d e n t of the Grand Trunk P a c i f i c , s u g g e s t i n g t h a t , i n view 1. Grand Trunk A r b i t r a t i o n , 1921,  129.  of the nearness o f the completion of the N a t i o n a l e n t a l Railway, conferences should  Transcontin-  begin to make arrangements  f o r the d r a f t i n g of a l e a s e by the government to the company of the E a s t e r n D i v i s i o n .  On January 14, Chamberlain r e p l i e d ,  asking f o r a statement o f the c o s t of c o n s t r u c t i o n on which the  company would be r e q u i r e d t o pay three percent  The  statement submitted by the m i n i s t e r  as r e n t a l .  showed a t o t a l  of |174,661,354, to December 31, 1914.  cost  I t v/as pointed out  by Cochrane, however, that the i n t e r e s t was to be only c u l a t e d on the cost of work, and that t h i s f i g u r e  cal-  included  money p a i d i n cash expenditure, i n t e r e s t charges, cost of shops and t e r m i n a l s , and unpaid holdback and p r o g r e s s e s t i m a t e s On March 25, 1915, Cochrane wrote, "The government, having been advised of o p e r a t i o n ,  that the E a s t e r n D i v i s i o n , f o r purposes  had been reported  Transcontinental  by the c h i e f engineer of the  Railway Commission as completed and ready to  be l e a s e d , i s of the o p i n i o n that i t i s i n the p u b l i c i n t e r e s t that such a lease be now entered b e r l a i n r e p l i e d that he could  into." 1  On A p r i l 27, Cham-  not see h i s way to ask h i s  d i r e c t o r s f o r a u t h o r i t y to execute the l e a s e . were, given f o r t h i s d e c i s i o n .  Three reasons  The o r i g i n a l cost  of c o n s t r u c -  t i o n had been estimated at |61,415,000, but the cost t o date had  been "§149,479,550, not i n c l u d i n g the i n t e r e s t .  the company claimed  that the Eastern  Secondly,  D i v i s i o n was not as y e t  completed i n accordance w i t h the agreement.  F i n a l l y , the  company contended that the road had not been c o n s t r u c t e d i n 1.  Grand Trunk A r b i t r a t i o n 1921, I.3':Q'« .  167* accordance with the Act o f 1904 or on sound b u s i n e s s p r i n c i p l e s , and that the completion of the most important s e c t i o n to the company, that between Winnipeg and Cochrane, had been delayed, to the great l o s s of the company.  I t must be admitted that i n  the f i r s t o f these p o i n t s the r a i l w a y had a l e g i t i m a t e compl a i n t , but i t was  shown by the Drayton-Acworth r e p o r t that the  o t h e r two were f a l l a c i o u s .  1  In the l i g h t  o f subsequent a c t i o n s  i t would seem as i f the Grand Trunk P a c i f i c o f f i c i a l s had no i n t e n t i o n of t a k i n g the lease and were simply p l a y i n g f o r more time. When the company d e c l i n e d to rent  the N a t i o n a l Trans-  c o n t i n e n t a l the 1,355.95 m i l e s which c o n s t i t u t e d the l i n e west of Quebec were taken over f o r o p e r a t i o n as p a r t of the Canadian Government  Railway System and were put i n o p e r a t i o n as such.on  June 1, 1915.  The r o l l i n g stock was obtained from the I n t e r -  c o l o n i a l Railway i n s t e a d o f the Grand Trunk P a c i f i c  Company.  At the b e g i n n i n g of the f o l l o w i n g month the Lake S u p e r i o r Branch of the Grand Trunk P a c i f i c was l e a s e d by the Canadian government  railwaysffi©r 999 years at a r e n t a l o f $600,000 a  year, with the o p t i o n 6f> purchase a f t e r March 31, 1936, f o r $13,333,333. The o p e r a t i o n of the N a t i o n a l T r a n s c o n t i n e n t a l and the Lake S u p e r i o r Branch was regarded by the government as only a temporary s o l u t i o n  2  to a problem, "which, l i k e the Old Man  of the Sea, was c o n t i n u a l l y upon our shoulders and would not 1. Railway InquirgryCommission, 1917 , x x x - x x x i . 2. Grand Trunk A r b i t r a t i o n , 1921,  131.  168 be shaken o f f . "  1  T h i s b e l i e f must have been changed by the  end o f t h e year, f o r on December 10, 1915, the government was "approached and  by Mr. Smithers to take the Grand Trunk P a c i f i c  i t s branch l i n e s from the Grand Trunk r a i l w a y , on c o n d i t i o n  that the l a t t e r surrender the common stock o f the Grand Trunk Pacific  to the government.  The l a t t e r , however, postponed the  i s s u e by the loans of 1916, 1917, and 1918. when the f i r s t of these loans, was made i t was r e a l i z e d  that the r a i l w a y s were i n  a desperate p o s i t i o n , and the government had one o f three c h o i c e s , to permit the r a i l w a y to go i n t o the hands o f a r e c e i v e r , to permit d e f a u l t and take p h y s i c a l p o s s e s s i o n o f the systems,  or to a f f o r d temporary  a i d pending an i n v e s t i g a t i o n .  The reasons f o r adopting the t h i r d a l t e r n a t i v e were g i v e n i n the f o l l o w i n g statements by the Right Honourable S i r Thomas White, the M i n i s t e r o f Railways, each o f v/hich d e a l s w i t h one of the courses open to the government: I b e l i e v e that the c o l l a p s e o f the two r a i l w a y systems i n q u e s t i o n , with the involvement of the Grand Trunk, would have a most d i s a s t r o u s e f f e c t upon our e n t i r e c r e d i t , f e d e r a l , p r o v i n c i a l , m u n i c i p a l , and i n d u s t r i a l . I t appears t o me that at t h i s , of a l l times, we should J e a l o u s l y guard the f a b r i c of our c r e d i t . Under the circumstances the Government f i n d themselves unable to f a v o r a b l y regard, the contingency o f a l l o w i n g the two roads, with the probable involvement o f a t h i r d , to go into l i q u i d a t i o n . I f we were not i n the midst o f a war and c o n f i n e d i n our f i n a n c i n g to t h i s s i d e of the A t l a n t i c , i f we had not b e f o r e us the formidable burden o f the War, with no prospect o f i t s e a r l y t e r m i n a t i o n , i t would not appear t o me to be so s e r i o u s an o b l i g a t i o n , to take over the f i n a n c i n g of these two r a i l w a y systems.... 1. Borden's Autobiography,  446.  2. i b i d . , 644.  The i n v e s t i g a t i o n i n t o the r a i l w a y s i t u a t i o n wa.s h e l d i n 1917.  The Commission c o n s i s t e d o f A. H. Smith, S i r  Henry L. Drayton, and W..M.  Acworth,  1  and the r e p o r t i s  commonly known as the "Drayton-Acworth Report", probably because i t was  the s u g g e s t i o n s of these two, r a t h e r than those  of Smith which were f o l l o w e d . all  They proposed "that  practically  the r a i l w a y s i n Canada, with the e x c e p t i o n o f the Canadian  P a c i f i c and the American l i n e s , should be turned over t o a c o r p o r a t i o n to be managed by a board of t r u s t e e s appointed by 2 the  Government."  to an end i n 1918.  As a r e s u l t  of t h i s r e p o r t the loans came  Moreover, On September  10 of that year,  i t r e f u s e d t o guarantee a note f o r the Grand Trunk and the 3 company was f o r c e d to underwrite the note elsewhere. On February 18, 1919, the r a i l w a y proposed that the  government  take over the Grand Trunk P a c i f i c  and branches,  r e p a y i n g the Grand Trunk a l l indebtedness, and that an agreement be made Canadian Government refused  this  between  the Grand Trunk i n the east and the  Railways i n the west.  The  Government  proposal.^  The company thereupon n o t i f i e d the government it  that  would not be able to meet the i n t e r e s t due upon i t s secur-  i t i e s an March 1, and once again the government r e f u s e d a i d . As a r e s u l t , on March 4 the company suddenly n o t i f i e d the government  that i t would be unable to continue o p e r a t i o n of  the Grand Trunk P a c i f i c a f t e r March 10. The government, f a c e d 1. Mr. Acworth was c a l l e d i n to f i l l the p l a c e of S i r George P a i s h , who was.obliged to r e s i g n d u r i n g the i n q u i r y on account o f i l l - h e a l t h . 2. Borden's Autobiography, 648. 3. Grand Trunk A r b i t r a t i o n , 1921, 132. 4. I b i d . , 133.  with the p o s s i b l e c e s s a t i o n of the r a i l w a y , passed an Order i n C o u n c i l a p p o i n t i n g the M i n i s t e r of Railways r e c e i v e r of the Grand Trunk P a c i f i c Railway System, to become e f f e c t i v e at midnight on March 9.  With t h i s step the government  the r e s p o n s i b i l i t y of o p e r a t i n g the complete r a i l w a y which had been conceived by the Grand Trunk o f f i c i a l s  accepted  transcontinental  S i r W i l f r e d L a u r i e r and  i n 1903.  N e g o t i a t i o n s with the company resumed, and a g a i n the government  r e f u s e d to r e l e a s e the Grand Trunk from i t s  western o b l i g a t i o n s , except as p a r t o f an arrangement w i t h the government  to t r a n s f e r the whole Grand Trunk group.  Such an  arrangement was concluded towards the end o f the year and r a t i f i e d by the p a r l i a m e n t .  A joint  committee of management  f o r the r a i l w a y s was. appointed, p a r t l y by the government  and  p a r t l y .by the Grand Trunk.  1920.  I t assumed c o n t r o l on May  1,  On J u l y 12 the o p e r a t i o n of the Grand Trunk P a c i f i c was trusted  to the Canadian^Northern B o a r d .  1  A r b i t r a t i o n on the value of the companies was completed by the s p e c i f i e d d a t e , A p r i l 9, 1921, and allowed to lapse f o r two months. September  en-  not  was  I t was r e v i s e d , and on  7, 1921, by a m a j o r i t y award  the committed 2  declared  the Grand Trunk e q u i t y shares to be without v a l u e .  An  appeal to the P r i v y C o u n c i l was d i s m i s s e d .  the l a s t  T h i s was  1. Development of Railways and T r a n s p o r t a t i o n i n Canada. Department o f T r a n s p o r t , Ottawa. 1937. A f t e r the DraytonAcworth r e p o r t the government assumed almost immediate c o n t r o l of the Canadian N o r t h e r n Railway, which was operated by i t s own board, r e c o n s t i t u t e d by the government. Bpp.16 and 17. 2. Grand Trunk A r b i t r a t i o n , 1921.  147.  attempt of the company to r e t r i e v e the r a i l w a y from government ownership and i t f a i l e d .  The formal u n i f i c a t i o n of the Grand  Trunk and i t s a s s o c i a t e s with t h e Canadian N a t i o n a l Railways was completed on January 1, 1923.  From t h a t time the Grand  Trunk and Grand Trunk P a c i f i c Railways, w i t h t h e i r s u b s i d i a r i e s were p a r t of the Canadian N a t i o n a l  Railways.  The c o l l a p s e of the Grand Trunk and i t s a s s o c i a t e s  !  was a severe blow to the p r e s t i g e and c r e d i t of Canada, as Borden  and h i s c a b i n e t had f e a r e d .  The q u e s t i o n  d i d the Grand Trunk P a c i f i c f a i l ? "  now a r i s e s , !'Why u  The answer to this i s t o  be found i n four b a s i c f a c t s : that i t was b u i l t  i n boom times  and begun too o p t i m i s t i c a l l y , that the cost was e x c e s s i v e , p o l i t i c a l and o t h e r outside that the competition By swing.  i n f l u e n c e s entered  i n t o i t , and  of o t h e r r a i l w a y s was t o o i n t e n s e .  1903 the e r a o f p r o s p e r i t y i n Canada was i n f u l l  I t was i n that year that the f i r s t  occurred.  that  great g r a i n blockade  B u s i n e s s and immigration were i n c r e a s i n g and the  f e e l i n g o f the country was one o f g e n e r a l because o f t h i s s p i r i t  optimism..  I t v/as  that the government, and the people,  were w i l l i n g to support almost any type o f expansion without studying  i t too c a r e f u l l y .  E s p e c i a l l y i n r a i l w a y s d i d the  country f e e l i t s e l f ready f o r almost u n l i m i t e d  development.  Because of t h i s mood the Grand Trunk P a c i f i c p r o j e c t was accepted as a n a t u r a l growth, and few b e l i e v e d that i t would present  i n j u r i o u s .competition  t o the other roads as i t was  b e l i e v e d that the country would need three 1905  railroads.  In  one w r i t e r went so f a r as to s t a t e , "There w i l l be ample  >'  room f o r another r a i l w a y , and perhaps two, trunk  Pacific."  n o r t h of the  1  When the Grand Trunk P a c i f i c was realized I t was  Grand  launched,  that the p o p u l a t i o n d i d not warrant such  i t was  expansion.  p o i n t e d out, however, t h a t , "In the west r a i l w a y s have  always preceded s e t t l e m e n t . government a i d . " country  i s new  and  Railways grew f a s t e r because of  Another w r i t e r s t a t e d t h a t , "While s p a r s e l y populated  the  the r a i l w a y s of Canada  w i l l be a b l e to earn l i t t l e more than the r u n n i n g expenses, c o s t of improvements, and and  wealth  i n t e r e s t on bonds.  As  population  i n c r e a s e the net revenue of the r a i l w a y w i l l a l s o  increase i n geometrical  ratio."  2  For some years i t seemed as i f t h i s a t t i t u d e was justified.  Immigration was  v e r y r a p i d and  the r a i l w a y s were r a p i d l y f i l l e d .  In 1909  the lands near i t was  said, "Six  years ago you could get the best q u a l i t y v i r g i n lands i n B r i t i s h Columbia w i t h i n d r i v i n g d i s t a n c e of a r a i l r o a d . Today you cannot get f r e e lands of f i r s t w i t h i n two  quality i n B r i t i s h  weeks d r i v e of a r a i l r o a d . '  You  cannot get good  a r a b l e l a n d i n B r i t i s h Columbia with&ntreasonable of  Columbia  distance  a market under t w e n t y - f i v e d o l l a r s an acre i n the Nechaco..  the best  land has been p i c k e d out and  i s h e l d i n values  ranging from the t h i r t i e s to the Hundreds. the ranch  In A l b e r t a . . . i n  country, a l l the land has been homesteaded or i s  1. Burpee, Lawrence «J., "How Canada i s S o l v i n g her T r a n s p o r t a t i o n Problem':', Popular Science Monthly. September 1905,455 2. L e R o s s i g n o l , «J. E. "Railway s u b s i d i e s i n Canada and the United S t a t e s " , Canadian Magazine XX, March 1903,419.  CHART I . Comparison of Railway M i l e a g e , p o p u l a t i o n , r a i l w a y revenues, and motor v e h i c l e r e g i s t r a t i o n s , 1876 - IS06. (Senate I n v e s t i g a t i o n , 1938. 36.)  A  331  'tC  -9C  ~TZ face, p  A  n  being h e l d by b i g companies." two  provinces  When i t i s r e a l i z e d that  1  mentioned i n t h i s a r t i c l e were the l a s t of  f o u r western p r o v i n c e s  to be  greatest  facts.  The  f i r s t of these was  s e c t i o n of these p r o v i n c e s  was  u l a t o r s , r a t h e r than homesteaders and that the  country was  not d e v e l o p i n g  would seem to i n d i c a t e .  The  other  of  However, when t h i s  made the w r i t e r f a i l e d to r e a l i z e f u l l y  s i g n i f i c a n c e o f two  the  s e t t l e d , the apparent extent  Canada's development can be r e a l i z e d . statement was  the  being  that  h e l d by  settlers,  the the  spec-  T h i s meant  as much as t h i s  article  f a u l t of t h i s w r i t e r  was  t h a t she a t t r i b u t e d the demand f o r land to the f a c t that  the  r a i l w a y s were being  Un-  f o r t u n a t e l y she  b u i l t across Canada and  d i d not  see  that Canada was  a stage of n a t u r a l growth but was p r o s p e r i t y of the times was  not  too  not  a boom i s that i t i s not r e c o g n i z e d  We  that  cannot condemn of the e v i l s  u n t i l the  of  ensuing  arrives. A study of the growth of r a i l w a y s  from 1873  through  founded on sound b u s i n e s s  s e v e r e l y f o r t h i s , however, f o r one  depression  passing  i n a "boom" e r a , and  e n t e r p r i s e and a g r i c u l t u r a l development. her  opening i t .  to the present  relationship.  day  and  shows a s u r p r i s i n g l y p a r a l l e l  In both revenues and mileage the  show a s u b s t a n t i a l increase u n t i l 1918, there has been very l i t t l e  population  increase.  showing the r a i l w a y mileage and  and  from that year  From 1918  population  railways  a graph*-'  i n c r e a s e would  1.  Laut, Agnes C. "The H a i l r o a d F i g h t f o r Canada", World's Work, May 1909. 11605.  8.  Senate i n v e s t i g a t i o n , 50.  The  be  the  practically parallel.  I t would seem from t h i s t h a t the men  were r e s p o n s i b l e f o r the r a i l w a y p o l i c y of the e a r l y years the century are not to be blamed f o r t h e i r hopes, as they not at that time see the c e s s a t i o n of immigration, the s e r i o u s c o m p e t i t i o n 1916.  Had  as they had  f i g u r e s continued  f o r the twenty years p r e v i o u s who  the p o p u l a t i o n of the p r o v i n c e s  United S t a t e s  1  equalled  could  after  to r i s e a f t e r can say  that of  1914  but  that the r a i l w a y s of Canada might not have succeeded? had  of  the- war,or  which the automobile would o f f e r  the immigration  who  Even the  i n p r o p o r t i o n to the r a i l w a y mileage i t i s  p o s s i b l e that the r a i l w a y s of Canada would have succeeded financially. The  end  of the  "boom" era was  the f u r i o u s a c t i v i t y of the f i r s t few it  unforeseen.  years  of the  seemed as i f p r o s p e r i t y would never end.  The  much premature, much m i s d i r e c t e d , much p a r a s i t i c The  Grand Trunk P a c i f i c  i s one  ments to i n c l u d e a l l of these built,  the b e l i e f was  railway  r e s u l t v/as activity.  of the most obvious three charges.  During  develop-  When i t v/as  that i t could not f a i l , a n d i t was  b u i l t i n s p i t e of the f a c t t h a t plans were incomplete, the country through which i t was and  to pass was  l a r g e l y unknown,  that the f u t u r e of the Canadian S h i e l d and  indefinite.  Money was  e s p e c i a l l y i n l a n d , was lost rapidly. the country  and  of prudence and  "The  cheap and was common, and  spent  the West  freely.  Speculation  to the i m a g i n a t i o n  awakened a response which drowned the 2  was  f o r t u n e s were made and  project...appealed  caution."  that  But the a c c o u n t i n g  was  of  voice  to come.  1. c f . Wilgus, o p . c i t . , 23. "On the p r M r i e s Canada has 7.88, the U n i t e d S t a t e s border s t a t e s have 4.90 m i l e s of r a i l w a y per 1,000 i n h a b i t a h t s . " 2. Borden's Autobiography, 117.  By  1910  the era of p r o s p e r i t y had  depression  set i n .  p r i c e s dropped,  passed, and a p e r i o d  Money became s c a r c e , wheat p r i c e s and  The  war  land  nearer the r a i l w a y came to completion  the t i g h t e r became the money markets and p r i c e s and  of  the c o s t s of c o n s t r u c t i o n .  the higher went  The  beginning of  aggravated the s i t u a t i o n s t i l l more, and  the  the r e s u l t  was  the u t t e r c o l l a p s e of the t r a n s p o r t a t i o n system of Canada. The  cost of the N a t i o n a l f r a n s e o n t i n e n t a l and  Grand Trunk P a c i f i c Railways has far  been shown to have been so  above the o r i g i n a l estimates that the a d j e c t i v e  does not begin to d e s c r i b e  it.  f a c t o r s i n the tremendous sum h i g h standard  attacked  and  Honorable W.  One  "excessive  of the most important  which the r a i l r o a d s cost was  of c o n s t r u c t i o n which had  throughout the e n t i r e p r o j e c t .  the  been i n s i s t e d upon  This p o l i c y has been b i t t e r l y  is s t i l l  the source of much c o n t r o v e r s y .  H.  i n h i s m i n o r i t y r e p o r t on the  Taf t ,  the  The  Grand  Trunk a r b i t r a t i o n , makes the f o l l o w i n g statements: The c o n t r a c t r e q u i r e d that the Grand Trunk P a c i f i c should be c o n s t r u c t e d w i t h the same standard of e x c e l l e n c e as that maintained i n the Grand Trunk main l i n e between Montreal and Toronto. The r e s u l t was that the cost o f the Grand Trunk P a c i f i c was e x c e s s i v e , as indeed was t h a t o f the T r a n s c o n t i n ental. The Grand Trunk P a c i f i c runs through the Yellowhead Pass.... T h i s i s the lowest pass to the P a c i f i c Coast i n e i t h e r Canada or the U n i t e d S t a t e s , . . . Except f o r twenty m i l e s of what i s c a l l e d a. pusher grade, where the grade i s about one p e r c e n t , the grade of the r e s t of the l i n e does not exceed a h a l f of one percent. The b r i d g e s are o f stone and steel. M a t e r i a l f o r them had to be t r a n s p o r t e d by r i v e r and other expensive methods, so t h a t the cost was g r e a t l y i n c r e a s e d . The w e l l - e s t a b l i s h e d and economical method of b u i l d i n g such a road iss to b u i l d p i l e and wooden b r i d g e s , temporary s t r u c t u r e s , and use them u n t i l they cease to be s a f e and then to s u b s t i t u t e a more permanent m a t e r i a l , w h i c h can be t r a n s p o r t e d over the l i n e s of s t e e l at l e a s t cost. To secure the low grades of which I have  spoken, the immense t r e s t l e s over the r a v i n e s i n the P r a i r i e P r o v i n c e s and elsewhere along the l i n e have heen. c o n s t r u c t e d w i t h a view to t h e i r being f i l l e d up w i t h d i r t and thus made permanent. I t would have been much more economical to begin w i t h l e s s f a v o r able grades and g r a d u a l l y b e t t e r them as the growth of t r a f f i c j u s t i f i e d i t . . . . T h e g a t h e r i n g of business depends a good d e a l upon the c h a r a c t e r and extent of the branch l i n e s . In t h i s r e s p e c t , the Grand Trunk P a c i f i c i s at a disadvantage. I t s branch l i n e s have h e a v i e r grades and are l e s s i n number and extent than those of the other l i n e s and not so w e l l p l a c e d / ' 1  Although at f i r s t  this pessimistic attitude  was  a p p a r e n t l y w e l l deserved, i t would not seem that i n the long run the i n s i s t e n c e on good grades was  a mistake.  It i s true  that twenty years ago the p o p u l a t i o n and development of the country d i d not warrant  such a h i g h s t a n d a r d , but  today,  when the q u e s t i o n o f amalgamation and d i s c o n t i n u a n c e o f p a r a l l e l l i n e s i s being v e r y much d i s c u s s e d , the of  C h a r l e s M. Hays' p r o j e c t i s e v i d e n t .  The  of  the r a i l w a y s h e l d by the Senate i n 1938  superiority  investigation  r e p e a t e d l y shows  t h i s f a c t to be t r u e .  I t i s common knowledge that the  Canadian Northern  d i d not stand up as w e l l as the Grand  line  Trunk P a c i f i c on the p s a i r i e s . One  of the most b i t t e r l y opposed s e c t i o n s i n the  p l a n n i n g of the r a i l r o a d was It was  the l i n e through the  f e a r e d that t h i s would compete w i t h the  Maritimes.  Inteoranlonial  and at the same time o f f e r no improvement to the o l d l i n e . Today the l i n e b u i l t by the T r a n s c o n t i n e n t a l i s 44.1  miles  s h o r t e r than the o t h e r , and the other advances made p o s s i b l e by the new  l i n e are shown i n the f o l l o w i n g q u o t a t i o n s from  1. Grand Trunk A r b i t r a t i o n , 1921,  184.  the  177. i n v e s t i g a t i o n by the Senate h e l d i n  1938:  Q. But you t o l d us that 100 t r a i n miles on t h i s l i n e was equl-' v a l e n t to 155 on the I n t e r c o l o n i a l Railway...and my q u e s t ion was, how much of t h a t i s due to the longer h a u l , and how much to worse grades? - A. I t i s a l l due to grades. A. This shows that 55 percent more t r a i n miles are r e q u i r e d on the I.C.R. than on the N.T.R. to handle the same amount o f t r a f f i c without r e g a r d to the more adverse weather c o n d i t i o n s on the I.C.R. That i s another t h i n g we are up a g a i n s t . I have known a s n o w f a l l i n the Matapedia V a l l e y of 168 i n c h e s , and of t r a f f i c b e i n g t i e d up s e r i o u s l y , whereas, i n l a n d , on the Transcont i n e n t a l , we d i d not meet w i t h that c o n d i t i o n . We have a l s o had washouts. I remember on one o c c a s i o n when the Canadian P a c i f i c had a washout and had to d i v e r t i t s t r a f f i c over our l i n e . . . We never had anyt h i n g of that k i n d on the N a t i o n a l T r a n s c o n t i n e n t a l . The s n o w f a l l s are more even, and the winds not as g r e a t . The I n t e r c o l o n i a l , being exposed to the Bay of Ghaleur and the Northumberland S t r a i t , gets some t e r r i f i c weather c o n d i t i o n s . I t may a l s o be remarked that an i n c r e a s e d g r a i n movement, f o r i n s t a n c e , r e s u l t i n g i n g r e a t e r average gross tons per c a r , would r a i s e t h i s percentage. The to  second s e c t i o n o f the N a t i o n a l  be b i t t e r l y a t t a c k e d i s the 400  of the Great  lakes.  I t was  felt  to 500  Transcontinental  mile s t r e t c h n o r t h  during the e a r l y years  r a i l w a y t h a t there were n e i t h e r the p o p u l a t i o n nor the to  justify i t s construction.  g i v e s the f o l l o w i n g as one  of the resources  S i r Robeirt Borden, i n h i s memoirs,  o f h i s reasons f o r opposing  the  railway: Canada, at t h a t time, had a p o p u l a t i o n of l e s s than s i x m i l l i o n and a l r e a d y had e s t a b l i s h e d one great t r a n s c o n t i n e n t a l . . . The great Western P r o v i n c e s were separated from the E a s t e r n by f o u r hundred m i l e s of t e r r i t o r y o f such c h a r a c t e r t h a t i t c o u l d not be expected to s u s t a i n any c o n s i d e r a b l e p o p u l a t i o n , a l though i t might c o n t a i n v a s t m i n e r a l worth. A t e r r i t o r y so unoccupied tended to exaggerate the divergence between the East and the West; and the c o s t o f t r a n s p o r t i n g goods and products across i t g r e a t l y h a n d i capped t r a d e . The t e r r i t o r y . . . w a s almost w h o l l y uni n h a b i t e d ; and.any c o n s i d e r a b l e p o p u l a t i o n along the il  Sgnate I n v e s t i g a t i o n , 1089,  1126.  /  l i n e of r a i l w a y eould not be expected f o r many y e a r s . . . . In the l i g h t of these c o n d i t i o n s and i n view of subsequent events, i t seems c l e a r t h a t the n a t i o n a l t r a n s c o n t i n e n t a l railway from Quebec to Winnipeg should have been commenced as a c o l o n i z a t i o n road and should have been g r a d u a l l y extended as settlement demanded.  178.  1,1  T h i s q u o t a t i o n may  be taken  as a sample of the  b e l i e f s h e l d by the opponents to the scheme i n i t s e a r l y y e a r s . By 1917  the only change i n t h i s b e l i e f was  t h a t i t was  more  common.The s e c t i o n across the b a r r e n l a n d n o r t h of Lakes S u p e r i o r and Huron"was condemned almost  universally:  There are now three trunk l i n e s running through the comparatively empty country n o r t h of Lake S u p e r i o r . The through t r a f f i c w i l l be shared...between the three r o u t e s . But we may assume that the Canadian P a c i f i c Railway w i l l be able to r e t a i n on i t s own th.rou.gh route a l l the t r a f f i c which i t i t s e l f o r i g i n a t e s * And the two routes w i l l only get the balance to c a r r y . I t cannotv we t h i n k , be expected that t h i s balance w i l l be s u f f i c i e n t f o r a good many years t o come to make these two l i n e s s e l f - s u p p o r t i n g . I t seems to have been g e n e r a l l y assumed that they would a f f o r d an important o u t l e t f o r the g r a i n of the P r a i r i e P r o v i n c e s , Evidence that we have before us seems to show that only q u i t e a s m a l l f r a c t i o n of the g r a i n exported from these p r o v i n c e s has h i t h e r t o f o l l o w e d the r a i l as f a r as Montreal. The p r o p o r t i o n that goes by way of r a i l to the A t l a n t i c seaboard must be even smaller.^ • The above q u o t a t i o n i s an e x c e l l e n t example of the g e n e r a l f e e l i n g which was ago.  The  outlet. #o  emphasis was  common i n Canada u n t i l a few  on the use of t h i s route as a g r a i n  I t had been SommonQn when the r a i l w a y was  beginning,  speak of the f a c i l i t i e s at the head of the lakes as the  "Spout of the hopper", and now was  years  i t was  as l a r g e as the hopper i t s e l f " .  1. Borden's Autobiography, 2. Railway  r e a l i z e d that the V^hereas i n 1903  115.  I n q u i r y Commission  , 1917.  Ixxx, I x x x i .  "spout"  there  had  been a g r a i n blockade  because of the l a c k o f f a c i l i t i e s , now i t  was f e a r e d that there were too many o u t l e t s , and that there was not enough g r a i n to make the new l i n e p r o f i t a b l e .  The c h i e f  o p p o s i t i o n , besides the o l d e r - e s t a b l i s h e d Canadian P a c i f i c , w,as the development of the water r o u t e .  Another i n t e r e s t i n g p a r t  of t h i s q u o t a t i o n i s that which mentions the Maritimes, who still  f e e l t h a t they do not r e c e i v e t h e i r f a i r share o f the  wheat chop.  But the c r i t i c s who have condemned the r a i l w a y  because they looked a t i t c h i e f l y ' a s a g r a i n c a r r i e r f o r g o t one  important  fact.  T h i s road was more than an o u t l e t f o r the  p r a i r i e s , i t was a l s o t o a c t as an agent the new t e r r i t o r i e s  i n the opening of  of. northern O n t a r i o and Quebec.  The  success o f t h i s aim during the l a s t few years can be s een from the f o l l o w i n g : One o f Canada's c h i e f n a t u r a l r e s o u r c e s on which the g r e a t pulp and paper and c e l l u l o s e i n d u s t r i e s depend i s the v a s t c o n i f e r o u s f o r e s t s i n northern Ontario and Quebec, served almost e x c l u s i v e l y by the Canadian N a t i o n a l . From the p o i n t Of view of m i n e r a l development we are only beginning t o realize the wealth which i s s t o r e d i n the g e o l o g i c a l f o r m a t i o n known as the LaSGce'htian S h i e l d . . . .The Canadian N a t i o n a l Railways t r a v e r s e s the L a u r e n t i a n S h i e l d w i t h main and branch l i n e s and i t i s , t h e r e f o r e , no a c c i d e n t that most o f the mining development which has taken place i n Canada i n the l a s t 10 years had been along the l i n e s of the Canadian N a t i o n a l . C o n s i d e r , too, that i n the h i g h l y i n d u s t r i a l i z e d s e c t i o n o f the country, which w i l l continue to draw i t s s t i m u l u s from the development of the n o r t h , the Canadian N a t i o n a l i s pre-eminent i n s e r v i n g every i n d u s t r i a l c e n t e r and I t h i n k you w i l l r e a l i z e . . . that the p o t e n t i a l i t i e s of the System are very g r e a t * I f development takes p l a c e without a needless d u p l i c a t i o n of l i n e s of r a i l w a y which would serve only to i n c r e a s e expenses and d i v i d e d the t r a f f i c , the broad outlook...is decidedly encouraging. 1  1. Senate I n v e s t i g a t i o n m l 9 5 8 , 1055. from the evidence presented by S.  The q u o t a t i o n i s . t a k e n J . Hungerford.  To abandon t h i s p o t e n t i a l l y r i c h and p r o d u c t i v e n o r t h country appears to me as an i n d u s t r i a l impossi b i l i t y and from a r a i l r o a d viewpoint the p r o p o s a l to abandon o r degrade t h i s T r a n s c o n t i n e n t a l road shows a l a c k of understanding of the c o n d i t i o n s . I t i s a burden, there i s no q u e s t i o n of t h a t ; But i t i s b u i l d i n g up the c o u n t r y , and i t runs through a r i c h t e r r i t o r y . I t runs through the be s t mining t e r r i t o r y i n northern O n t a r i o and Q u e b e c . . . It does not pay at the present time, but there i s a f u t u r e to t h i s country that must not be o v e r l o o k e d . 1  From these two  excerpts i t can be seen thafe, although  the N a t i o n a l T r a n s c o n t i n e n t a l was  b u i l t at a time when there  v/as apparent, use f o r i t as a g r a i n c a r r i e r , and although i t f a i l e d , to be a success i n t h i s way, than proven i t s worth by opening  i t has n e v e r t h e l e s s more  the v a s t wealth  of t h i s  country which has h i t h e r t o been c o n s i d e r e d b a r r e n . interesting  to note the warning.by Hungerford  It i s  against  duplic-  a t i o n of r a i l r o a d s i n that country, vii i c h would cause the former N a t i o n a l T r a n s c o n t i n e n t a l to l o s e i t s f u t u r e value to the c i t i z e n s  of Canada.  I t i s d u p l i c a t i o n which has been  the c h i e f cause of i t s f a i l u r e i n the p a s t , and hoped that the same mistake w i l l not r u i n  i t i s to be  i t s future.  Another s e c t i o n of the r a i l w a y which has become predominantly Fort William.  a wheat c a r r i e r i s the l i n e from Winnipeg to The Canadian P a c i f i c Railway  officials  admit  that of the three t r a n s c o n t i n e n t a l l i n e s s e r v i n g t h i s t e r r i t o r y the N a t i o n a l T r a n s c o n t i n e n t a l - Grand Trunk P a c i f i c line own  i s the most economical.  Although  they c l a i m that  l i n e i s b e t t e r because i t i s double  that t h e i r grade on eastbound t r a f f i c 1. Senate I n v e s t i g a t i o n , 1 9 3 8 , 1097,  t r a c k e d , they  their admit  i s no b e t t e r and that Evidence  of W.A.Kingsland.  t h e i r grade on westbound t r a f f i c i s i n f e r i o r .  ,  181.  One of the most s e r i o u s problems on the r o u t e of the  Grand Trunk P a c i f i c  Rupert.  i s the s e c t i o n from Jasper to P r i n c e  T h i s s e c t i o n was  supposed to develops trade with the  O r i e n t , but the trade f a i l e d to m a t e r i a l i z e .  P r i n c e Rupert  was f a r o f f the main steamship lines,, and the steamship s e r v i c e which the Grand Trunk P a c i f i c never became t r a n s - o c e a n i c . Grand Trunk P a c i f i c cut  was expected to b u i l d  Although the exponents of the  had a d v e r t i s e d w i d e l y that t h i s road would  two days time to the O r i e n t from the route v i a New  to San F r a n c i s c o , they f a i l e d to s t a t e that the e x t r a  York 500  miles' land h a u l which t h i s route would have would more than c a n c e l any advantages gained i n time.  I t i s because o f t h i s  e x t r a land h a u l that P r i n c e Rupert has never threatened Vancouver as a g r a i n  outlet.  Another important reason f o r the f a i l u r e  of the g  Grand Trunk P a c i f i c  i s the l a c k of f e e d e r s or branches.  The  two which wouldhhave been the most important f a i l e d to materialize.  These were the P a c i f i c  Great. E a s t e r n , which  was never connected to the main l i n e of the Grand Trunk Pacific,  and the l i n e to the Peace R i v e r b l o c k .  Should these  be completed, there i s every reason to b e l i e v e that the mountain s e c t i o n of the Grand Trunk P a c i f i c  w i l l pay d i v i d e n d s .  I f they are not completed i t i s d o u b t f u l whether  this  s e c t i o n w i l l pay f o r many years, i f at a l l . The f i n a l reason f o r the f a i l u r e 1. Senate I n v e s t i g a t i o n , 1938. 2. See map  2.  635.  of the mountain  s e c t i o n i s the. d e a r t h of p o p u l a t i o n , r e s u l t i n g l a r g e l y from l a c k of markets and  the great amount of u n p r o f i t a b l e or  marginal  area around Tete Jaune, f o r example, i s  land.  The  known l o c a l l y as " S t a r v a t i o n F l a t s " . great f e r t i l i t y  s c a t t e r e d along  There are  sections of  the l i n e , however, and  it is  p o s s i b l e t h a t , i f the P a c i f i c Great E a s t e r n were completed, and a route opened to the southern markets, t h a t  settlement  might i n c r e a s e enough to make the r a i l w a y p r o f i t a b l e . s i g n e o f any such development i s apparent a t present,  No and  f o r e the f u t u r e of t h i s s e c t i o n of the r a i l w a y must be  there-  accepted  as u n p r o f i t a b l e . Two  weaknesses of the Grand Trunk P a c i f i c  on the p r a i r i e s . f e e d e r s , and  stand  T&ese are the l a c k of good branch l i n e s  the competitive  d u p l i c a t i o n of other  out and  railways.  In s p i t e of the f i n e promises o f the Branch L i n e s Company, o n l y e i g h t branch l i n e s were b u i l t Provinces.  Two  of these, one  other to Calgary, are b u i l t a l l i n Saskatchewan.  i n the P r a i r i e  to the c o a l mines and  i n A l b e r t a and  They represent  the  the remainder are  s e v e r a l hundred m i l e s  of s t e e l , but are meager when compared to the branches of the other great r a i l w a y companies. built  Moreover, they were u s u a l l y  to p l a c e s which were a l r e a d y served by  or Canadian Northern,  and  the Canadian P a c i f i c  t h e i r c o n s t r u c t i o n was  inferior.  T h i s l a c k of good b r a n c h e l i n e s as f e e d e r s from the west one  was  of the g r e a t e s t , i f not the greatest, weaknesses of the  Grand Trunk P a c i f i c . the company v/as to use  I t has been shown that the moti<ve of the branch l i n e s as a means of e x t r a c t -  ing  f u r t h e r g a i n from the governments of the Dominion and t h e  p r o v i n c e s , and when the d e p r e s s i o n f o l l o w i n g 1910 caused money t o he scarce the branches were g r a d u a l l y d i s c o n t i n u e d . f a i l i n g to supply i t s e l f  with s u f f i c i e n t  In  sources of supply the  Grand Trunk P a c i f i c f a i l e d i n i t s primary o b j e c t , to become i t s e l f a f e e d e r f o r the Grand Trunk System i n the e a s t . In  a study of the weaknesses o f the Grand Trunk  P a c i f i c System the problem of c o m p e t i t i o n cannot be  overemphas-  ized.  scarcely  I t has been s a i d that t h i s r a i l w a y , "Reached  a f o o t of t e r r i t o r y not a l r e a d y served i n Manitoba, and but little  i n A l b e r t a and Saskatchewan."  1  T h i s statement i s too  p o s i t i v e , as i n some cases the Grand Trunk P a c i f i c the  d i d precede  other l i n e s , but these o c c a s i o n s were few. As a g e n e r a l r u l e i t i s c o r r e c t to say that the  Canadian P a c i f i c and Canadian Northern preceded the Grand Trunk Pacific  through the p r a i r i e country.  Por t h i s r e a s o n the l a s t  r a i l w a y must be held l a r g e l y r e s p o n s i b l e f o r the r e s u l t s which f o l l o w e d the e x c e s s i v e c o m p e t i t i o n .  The a r b i t r a t o r s o f the  Grand Trunk problem i n 19£1 s e v e r e l y a t t a c k e d . t h e Grand Trunk Pacific project.  " I t would be d i f f i c u l t  to imagine a more  misconceived p r o j e c t . . . F o r n e a r l y h a l f the d i s t a n c e of nine hundred m i l e s westward from Winnipeg the main l i n e was cons t r u c t e d c l o s e to and between the l i n e s of the Ganadian P a c i f i c and Ganadian Northern Companies.  For the r e m a i n i n g thousand  m i l e s to P r i n c e Rupert the main l i n e t r a v e r s e s f o r the most part a d i f f i c u l t 1.  country, l a r g e l y mountainous, whose development  Newell, J . P. "A Review of the Grand Trunk Railway A r b i t r a t i o n " , E n g i n e e r i n g News Record, XC, February 1,1923, 212.  f o r the purpose  of f u r n i s h i n g l o c a l t r a f f i c must awaict s e t t l e -  ment and b u s i n e s s e n t e r p r i s e , and terminates at P r i n c e Rupert, a p o r t as yet without any c o n s i d e r a b l e t r a n s - P a c i f i c or other e x t e r n a l t r a d e .  For two hundred  m i l e s or more t h i s  s e c t i o n of the l i n e p a r a l l e l s the Canadian N o r t h e r n Railway so c l o s e l y that p a r t of the r a i l s of each has been taken up and both r a i l w a y s , now tracks. was b u i l t  under government c o n t r o l , use the same  When i t i s c o n s i d e r e d that the Grand  Trunk P a c i f i c  f o r the whole d i s t a n c e o f eighteen hundred m i l e s  from Winnipeg to P r i n c e Rupert a t a v e r y h i g h standard of c o n s t r u c t i o n and at enormous c o s t , p a r t i c u l a r l y i n the mount a i n s e c t i o n , the magnitude of the mistake of g o i n g forward with t h i s e n t e r p r i s e i s apparent.  The branch l i n e s .in the  P r a i r i e P r o v i n c e s are wholly inadequate as f e e d e r s to the main l i n e s , p r o v i d i n g a s t r i k i n g l y  flnfavorable  c o n t r a s t to  the number and mileage o f the branch l i n e s o f both the Canadian P a c i f i c and Canadian Northern Companies i n t h i s t r a f f i c - p r o d u c i n g area.  P a r t of the Grand Trunk  Pacific  Branch L i n e s system was badly s i t u a t e d i n t e r r i t o r y to i t s r i v a l s .  tributary  As a r e s u l t of i t s l o c a t i o n to the main  l i n e and i t s want o f e f f i c i e n t  f e e d e r s , the Grand  Trunk  Pacific  Railway Company w i l l not share p r o p o r t i o n a t e l y with i t s r i v a l s i n the t r a f f i c which may  be expected with the p r o g r e s s i v e  settlement and development The  o f the P r a i r i e P r o v i n c e s .  l o c a t i o n of i t s branches was  of the Grand Trunk P a c i f i c , but t h i s was 1.  Grand  Trunk A r b i t r a t i o n , 1921,  175.  ,thl  a g r e a t mistake  aggravated by the  185. f a c t that i t was important  u s u a l l y the l a s t r a i l w a y to b u i l d to  center.  any  T h i s i n c r e a s e d the c o s t of c o n s t r u c t i o n and  handicapped the company i n the g a i n i n g of b u s i n e s s .  "For  value of land taken up f o r the r i g h t of way  entrances  and  city  the  i s g r e a t e r as p o p u l a t i o n i n c r e a s e s - to b u i l d a second l i n e to  these p l a c e s i s g r e a t e r than the f i r s t , then a t h i r d  comes i n at another i n c r e a s e i n c o s t . " The  critics  line  1  of the Grand Trunk P a c i f i c Railway have a  no reason  to condemn i t e n t i r e l y f o r b u i l d i n g i n t o the  It has been shown that many unexpected events caused company to meet d i f f i c u l t i e s which were u n f o r e s e e n ed by a l l of Canada.  sweeping i t , and  continued  to them the p r o j e c t appeared not  up with s e t t l e r s , and  d u r i n g the war  decade of the century, to  The  years as i t had  as great ay  p r a i r i e s were  d u r i n g the  had first  Of  the two  rivals,  the Canadian P a c i f i c , the former  a young company, and, although there was  the  only  i f immigration  the t r a n s p o r t a t i o n needs of the west.  ambitious,  unexpect-  i t would have undoubtedly added much  the Canadian Northern and was  and  b l i n d e d by the wave o f p r o s p e r i t y which  p o s s i b l e but p r o f i t a b l e and necessary. expected to f i l l  the  Most of the country at the time of  r a i l w a y ' s i n c e p t i o n was was  prairies.  i t was  realized  to be  n o t h i n g to f o r e c a s t that i t would become  system as the o t h e r s .  In 1903  i t had o n l y  m i l e s , n e a r l y a l l of which were i n Manitoba.  1,276  Moreover, the  Grand Trunk o f f i c i a l s d i d not b e l i e v e that the government would support  i t as w e l l as the Grand Trunk P a c i f i c p r o j e c t .  1. Biggar, E. B. 1917. 163.  The  Canadian Railway Problem, Toronto.  "How c o u l d the raen behind the l a t t e r b e l i e v e that such a new l i n e c o u l d hope to compete with an o r g a n i z a t i o n which v/as backed by the s o l i d and w e l l - e s t a b l i s h e d Grand Trunk Eailway? Borden supported t h i s theory,  f o r he s t a t e s , " I t i s p o s s i b l e  that Mr. Hays underrated the a b i l i t y and r e s o u r c e f u l n e s s o f his r i v a l . "  1  Undoubtedly the o f f i c i a l s o f the Grand Trunk  • P a c i f i c b e l i e v e d that the Ganadian Northern would c o l l a p s e from the competition and  of a b e t t e r b u i l t , b e t t e r  f i n a n c i a l l y sounder The  organized,  line.  Grand Trunk o f f i c i a l s must have known that the  Ganadian P a c i f i c was u n p o p u l a r , e s p e c i a l l y i n the west where 2  monopoly has always been u n p o p u l a r .  3  More than t h i s , the  f a c i l i t i e s o f the e x i s t i n g r a i l w a y were inadequate f o r the demands of the tremendous g r a i n crops.  A feeder from the west  was a n e c e s s i t y to the Grand Trunk o f f i c i a l s , but they d i d not  see that the c o n s t r u c t i o n of t h i s would r e s u l t i n com-  p e t i t i o n from a s t r o n g Canadian Northern and the b u i l d i n g o f numerous branch l i n e s i n the northern adian  p r a i r i e s by the Can-  Pacific. There i s no doubt that the m u l t i p l i c i t y  on the p r a i r i e s was d i s a s t r o u s . t i o n or systematic  planning  of the roads  Had there been some  co-ordina-  to a v o i d d u p l i c a t i o n , a l l three  roads might hate remained s o l v e n t .  -But i n t h e i r r i v a l r y , i n  t h e i r f e a r o f the other roads, they b u i l d branches i n d i s c r i m 1.Borden's Autobiography, sfc09 2. Senate i n v e s t i g a t i o n , 999. 3. Dr. W. N. Sage was p r e s e n t when the Grand Trunk P a c i f i c reached Calgary and s t a t e s t h a t the second l i n e was e n t h u s i a s t i c a l l y welcomed because i t was hoped that comp e t i t i o n would r e s u l t i n a decrease i n p r i c e .  i n a t e l y , a a n d , i n s t e a d o f b u i l d i n g to those s e c t i o n s which had a need f o r t r a n s p o r t a t i o n , they made e f f o r t s to c o n s t r u c t roads to those d i s t r i c t s which had a l r e a d y the densest popul a t i o n , and t h e r e f o r e had r a i l r o a d f a c i l i t i e s . built  R a i l r o a d s were  f o r m i l e s p a r a l l e l to each other, and i t has been s a i d  of the l i n e between Saskatoon and U n i t y t h a t the l i n e s , "Are almost w i t h i n a b i s c u i t t o s s f o r quite a long p i e o e . " l such c o n d i t i o n s e x i s t i t i s not d i f f i c u l t  When  to see why the  Canadian N a t i o n a l Railway b e l i e v e s today that there are 2200 m i l e s o f r a i l r o a d i n Canada which could be e l i m i n a t e d .  2  With such d u p l i c a t i o n , i t i s obvious t h a t the u n i t i n g of the Canadian Northern and the Grand Trunk P a c i f i c with  the Canadian' Government Railways i n 1921 should  i n great s a v i n g s .  But t h i s was not to be.  True there was  some e l i m i n a t i o n , the most noteworthy being the l i n e the Yellowhead, but another f a c t o r entered the economy which should was  result  through  which prevented  have been p o s s i b l e .  As the r a i l w a y  a government one, the problem of c e s s a t i o n o f s e r v i c e was  i n f l u e n c e d by p o l i t i c s , f o r every settlement the e l i m i n a t i o n o f the l i n e s which served  b i t t e r l y opposed  i t . More than t h i s ,  as a government r a i l w a y , the new system was faced with t h e f a c t that i t was the duty of the government not t o c o n s i d e r o n l y p r o f i t , but a l s o to remember that r a i l w a y s must be run f o r the p u b l i c w e l f a r e .  Short  l i n e s which year by y e a r  1. Senate I n v e s t i g a t i o n , 321 and 396. T h i s s e c t i o n i s one of the most c o n t r o v e r s i a l eases of d u p l i c a t i o n on the p r a i r i e s today. 2. i b i d . , 1072.  r e s u l t e d i n a d e f i c i t were found t o be the only o u t l e t s f o r many small d i s t r i c t s which had grown up as a r e s u l t o f the c o n s t r u c t i o n of the r a i l w a y .  The government c o u l d not with-  draw the t r a i n s e r v i c e from these p l a c e s and leave them with no modern t r a n s p o r t a t i o n f a c i l i t i e s .  Therefore  to continue many t r a i n s which continued  i t was f o r c e d  to l o s e money and y e t  could he n e i t h e r e l i m i n a t e d nor expected t o improve. Today the p r a i r i e p r o v i n c e s have two great  systems.  There i s s t i l l much d u p l i c a t i o n , and i n many p l a c e s there are l i n e s which a r e u n p r o f i t a b l e . The  first  i s the e l i m i n a t i o n o f one system or the other,  would r e s u l t i n monopoly. two  Two- s o l u t i o n s o f f e r themselves. which  The other i s the c o n t i n u a t i o n o f the  systems, but a c l o s e c o - o p e r a t i o n between them and a  gradual c e s s a t i o n of a l l unnecessary d u p l i c a t i o n . There are many t h i n g s t o be s a i d in. f a v o r of monopoly.  I t would r e s u l t -in a u n i f i e d  overlapping.  system with no w a s t e f u l  I t would mean more e q u a l i t y of r a t e s , f o r the  l i n e would not be fiorced to cut r a t e s i n those had  competition  while  i t maintained  d i s t r i c t s where i t had a monopoly. s e r v i c e , f o r the running distributed.  s e c t i o n s which  high rates, i n those I t would mean b e t t e r  times o f the t r a i n s could be b e t t e r  The o p p o r t u n i t i e s of e f f e c t i v e  saving are almost  u n l i m i t e d : g e n e r a l overhead expenses; the readjustment of t a r i f f s and t r a f f i c ;  less traffic  s o l i c i t a t i o n and a d v e r t i s i n g ;  economies i n o p e r a t i o n o f both passenger and g r e i g h t purchasing;  accounting  graphs, and other  trains;  and s t a t i s t i c s ; h o t e l s , express,  s u b s i d i a r i e s t o the r a i l r o a d s ;  teles  terminals;  189. and  the economic value of the m a t e r i a l s which would be r e a l e a s e d  for  use. But monopoly has i t s e v i l s , and  the acceptance  of  such  a system might lead to many r i s k s , the " P o s s i b i l i t y of i n adequate s e r v i c e , of i n e f f i c i e n c y , of c a r e l e s s n e s s , and of political difficulties."  In f a v o r of monopoly i n Canada,  1  a t t e n t i o n has been drawn t o southern A l b e r t a , where the Canadi a n P a c i f i c had  v i r t u a l c o n t r o l and where the people  getting excellent service. was  not always so, and,  built  i n t o the p r a i r i e s ,  are  But i t must be p o i n t e d out  that this  as shown above, before the other the s e r v i c e was  inadequate.  lines  More-  over, the e x c e l l e n c e of t h i s s e r v i c e might be regarded  as  a r e s u l t of the f e a r of c o m p e t i t i o n , not only from the  two  other Ganadian l i n e s but a l s o from those American companies which have always shown a d e s i r e to branch  i n t o .Canada.  2  In c o n s i d e r i n g the a l t e r n a t i v e to monopoly, a c l o s e c o - o p e r a t i o n between the two  companies, i t w i l l be  that not o n l y areaD.ll savings of monopoly p o s s i b l e , but b e n e f i t s of c o m p e t i t i o n w i l l be m a i n t a i n e d . f e a t u r e o f the debates i n Parliament 1. Senate I n v e s t i g a t i o n , 1938,  "A  seen  the  significant  on the Canadian N a t i o n a l -  473.  2. c f . Richardson, R. L. "Government Ownership of Railways", Canadian Magazine. November 1900, p.61. The Ganadian P a c i f i c , which at t h a t time had a monopoly and subsidy from Montreal to Winnipeg,charged about twice as much as i t s s u b s i d i a r y from New York to M i n n e a p o l i s , which had no subsidy but c o m p e t i t i o n from 9 other l i n e s .  Ganadian P a c i f i c Railway Act of 1933 was  that the members o f  a l l p o l i t i c a l p a r t i e s stood almost as a u n i t the p o l i c y of r a i l w a y amalgamation." the problem  of  1  i n o p p o s i t i o n to  The best s o l u t i o n of  Ganadian t r a n s p o r t a t i o n i s undoubtedly.the  maintenance of the two  systems, but a c l o s e  understanding  between them, which would r e s u l t i n the e l i m i n a t i o n of duplication.  For some time the p a i n s which w i l l r e s u l t  may  seem i n j u r i o u s , but the r e s u l t w i l l be the b i r t h o f a t r a n s p o r t a t i o n system which w i l l serve Canada adequately  and  profitably. The Grand Trunk P a c i f i c Railway was b u i l t as the r e s u l t of a v i s i o n .  But unforeseen circumstances  i n f l u e n c e s proved that t h i s v i s i o n was dream, and the p r o j e c t f a i l e d The l a c k of a complete  blindly and  l i t t l e more than a  to achieve i t s expected  results.  p l a n , the h i g h c o s t s , the depredatory  i n f l u e n c e of unscrupulous f i n a n c i e r s , the ambitions of p o l i t i c i a n s , the unforeseen c o m p e t i t i o n from o t h e r r o a d s , and a d e p r e s s i o n which reached War,  i t s climax i n the Great  were the f a c t o r s which made the Grand Trunk P a c i f i c  a  failure. Today, however, i t seems as i f t h i s r a i l r o a d i s to j u s t i f y i t s e l f . reads,  C l o s e l y u n i t e d with a great system  operated with the purpose  of  o f making i t a servant of  Canada r a t h e r than a revenue producer, and great s e c t i o n s of the country which promise y e a r s , i t w i l l yet become a v a l u a b l e a s s e t .  s e r v i n g the  two  the most i n f u t u r e In the past the  Grand Trunk P a c i f i c has i n j u r e d Canada s e r i o u s l y , but i t i s  191 not too much to expect that, i n the near f u t u r e i t w i l l prove to be one of the g r e a t e s t causes of Canadian p r o s p e r i t y . w i l l provide  an o u t l e t f o r the r i c h  O n t a r i o , and B r i t i s h  Columbia.  areas of northern  Greatest  Quebec,  I t w i l l b r i n g raw m a t e r i a l s  to the i n d u s t r i a l s e c t i o n s of Canada and c i v i l i z a t i o n wilderness.  It  to the  of fall, i t w i l l be a s t r o n g bond i n the  u n i f y i n g of Canada i n t o a great  nation.  A P P E N D I X  Appendix I . Summary of C o n t r a c t s Let by the Grand Trunk P a c i f i c Railway Company3€ I. LARGS CONTRACTS POR AND SMALL BRIDGES:  GRADING THE RQ1DBED, BUILDING CULVERTS,  Date of Contract  Name of Contractor  June 22,1907  T r e a t and Winnipeg-Portage Johnson, l a Prairie Brantford,0nt. or Winnipeg, Man.  Aug. 2,  275 McDonald and Portage .la M c M i l l a n Com- P r a i r i e pany, Winnipeg, Touchwood H i l l s . Man.  1,672,000  53  298,000  1905  T r e a t and Johnson February 20,1906  February 20, 1906  January 4, 1908  March 16,1908  H  Location of Work  Miles  QU'Appelle Valley  54  Canadian W.line Sec.6,Tp.27,140 White Company,R.13, W.2nd Mer., to W.line Sec.24, Montreal, Quebec. Tp.36,R.C.W.,3rd Mer.  Amount 200,000  770,000  F o l e y Bros., L a r s o n and Company, Battleford.  W.line Sec.24, 316 Tp.36, R.6,W.3rd Mer., to a p o i n t near Edmonton,Alta  2,500,000  F6lgy,Welch and Stewart, Kenora •  East l i n e of Sec. 13, Tp.53, R.24, W. 4th Mer., to east bank of Wolf Creek.  129 1,200,000  P r i n c e RupertCopper R i v e r  100  5,200,000  as r e p o r t e d i n the House of Commons Debates, A p r i l 10, 1907, p. 7006; A p r i l 13, 1908, p.6637; J u l y 11,1908, p.13613; and A p r i l 5, 1909, p.. .3987.  I I . OTHER CONTRACTORS FOR ROADBED, CULVERTS, AND SMALL BRIDGES» John B r a d l e y , J . R. Booth, Messrs. Bishop and Huek, C. H. R i c h a r d s , C. F r o s t . P I I . STEEL RAILS (to be d e l i v e r e d to F o r t W i l l i a m , P o r t A r t h u r , or Quebec, as s p e c i f i e d ) : Lake S u p e r i o r S t e e l C o r p o r a t i o n Dominion Iron and S t e e l Company Algoma S t e e l Company U. S_. S t e e l ProductsSEiXChaugeOCompany . IV. STEEL BRIDGES: Messrs. John Gunn and Son, masonry and s u b - s t r u c t u r e s . The May Sharps C o n s t r u c t i o n Company, masonry and substructures. The Canadian Bridge Company, s u p e r s t r u c t u r e s . V. BUILDINGS: Messrs. McDiarmid and Company. VI. FENCING: Canadian S t e e l and Wire Company. V I I . TRACKLAYING AI© BALLASTING: The Grand Trunk P a c i f i c Railway Company.  194 Appendix I I . LOCATION AND MILEAGE OF THE GHAND TRUNK PACIFIC LINES * Ontario M i s s i o n Terminals to Empire Ave. J u n c t i o n Midway to Dog R i v e r J u n c t i o n Conmee t o S u p e r i o r J u n c t i o n  2.26 m i l e s 28.89 159.56  Manitoba x Woodward Ave. J u n c t i o n Winnipeg t o P a c i f i c J u n c t i o n to Great Northern J u n c t i o n , Portage l a P r a i r i e 52.42 x Portage l a P r a i r i e to R i v e r s to I n t e r p r o v i n c i a l Boundary near V i c t o r 157.56 Conns, at Portage l a P r a i r i e , P e t r e l , Knox .80 Branches and Spurs 6.98 Saskatchewan x I n t e r p r o v i n c i a l Boundary near V i c t o r to M e l v i l l e to Watrous to B i g g a r t o I n t e r p r o v i n c i a l Boundary near A r t l a n d 415.02 Connections at Y o r a t h 0.24 M e l i i l l e s to Canora 54.71 Connections a t Yorkton 0.14 B i g g a r to Loveraa 103.45 Oban to B a t t l e f o r d 48.25 Connections at B a t t l e f o r d , between P o r t e r and C u t k n i f e Subs. 0162 M e l v i l l e t o Q,u Appelle J u n c t i o n to c r a i k J u n c t i o n to R i v e r h u r s t 206.07 West l e g o f Wye at West Yd., Regina 0.23 West Yard to G. T. P. S t a t i o n , Regina 2.97 Boundary Wye - North Switch t o South Switch 0.34 Connections a t Regina 0.14 Boundary Wye to Northgate 154.32 Talmage to Weyburn 13.60 Young to CudwcEth J u n c t i o n to J u n c t i o n a t Prince Albert 110.88 B a t t l e f o r d to C a r r u t h e r s 46.28 Connection a t B a t t l e f o r d 0.21 Branches and Spurs 4.51 ?  Alberta # x I n t e r p r o v i n c i a l Boundary at A r t l a n d to Wainwright to E a s t J e t . North Edmonton to West Jet. E a s t J e t . Switch to lOOst S t . Edmonton  166.37 3.45  H (Taken from mimeographed b u l l e t i n L o c a t i o n and Mileage of Railways o f Canada, January 1 s t , 1924, Dominion Bureau of S t a t i s t i c s , T r a n s p o r t a t i o n Branch, Ottawa, 1925.)  195 A l b e r t a (cont'd) 121st S t . Edmonton to Union J e t . to L o b s t i c k (m. 73.50 labaumun Sub.) Connections a t Edmonton x Chip'Lake (M.86.90 Wabaumun" Sub.) to Obed (M. 35.33 B r u l e Sub'.") x S n a r i n g (M*94.94) to Jasper to G e i k i e B i c k e r d a l e J u n c t i o n to L o v e t t ...a...Coal Spur t o Mountain Park $ Leyland to Luscar T o f i e l d d t o J e t . with S t r a t h e o n a sub. near Camrose Battie-Duhamel Conn, to M i r r o r to Barlow J e t . to C a l g a r y B a t t l e J u n c t i o n Wye  169.46 0.36  B r i t i s h Columbia x Red Pass J u n c t i o n to McBride to P r i n c e to Smithers to P r i n c e Rupert  676.76  ..x #  >  George  72.11 0.57 77.88 20.81 55.33 31.BCD  5.11 23.27  i n d i c a t e s Main L i n e . In A l b e r t a , at the time of t h i s r e p o r t , much of the Grand Trunk P a c i f i c L i n e s had been t o r n up between Edmonton and Red Pass J u n c t i o n and the Canadian Northern L i n e s used. These s e c t i o n s were as f o l l o w s : L o b s t i c k to Chip Lake 13.40 m i l e s Obed t o Snaring 59.61 G e i k i e t o Red Pass Junction35.50  ®  B u i l t by Mountain Park C o a l Company and c o n t r a c t e d to S . T . P .  $  B u i l t by Luscar C o l l i e r y Company and c o n t r a c t e d to G.T.P.  Appendix I I I . Funded Debt o u t s t a n d i n g D e s c r i p t i o n of S e c u r i t y  Rate. %  Principal  Guaranteed by  3 4  $68,133,333 8,.440,848 ^76,574,181  Dominion gov't "  4  $ 7,533,000  Grand Trunk Ry.  4 4  20,169,000 34,879,253  5  9,720,000 $72,301,253  4 and 4-|  $16,786,440  4 4 5 5 6 6  $10,000,000 15,000,000 6,000,000 7,081,783 5,038,054 7,471,400 $50,591,237  F i r s t Mortgage Gold S t e r l i n g Bonds 1962 S t e r l i n g Bonds 1962 Total F i r s t Mortgage Lake Supe r i o r Branch 1955 Second Mortgage S e r i e s A and B 1955 Debenture Stock P e r p e t u a l Seven Year Secured Notes (1921) . Total F i r s t Mortgage Bonds (four i s s u e s ) Dominion Gov't.Loan 1909 Dominion Govt. Loan Dominion Govt. Loan Dominion Govt. Loan .Dominion Govt. Loan .Dominion Govt. Loan Total  1913 1914 1916 1917 1918  Grand T o t a l Annual I n t e r e s t  December 31, 1918.  A l b e r t a and Saskatchewan v. governments. :  Grand Trunk Ry. » No guaranted  216,253,111 8,456,408  from Correspondence r e g a r d i n g Grand Trunk Railway A c q u i s i t i o n and Memorandum Respecting the Same, S e s s i o n a l Paper No.90, 1919, 42.  197  Appendix IV Comparison  o f Grand Trunk P a c i f i c and o t h e r North American  Summits Railway  No.  Height (feet)  Railways  Max. Tractive Gross capMax.Grades E l e v a t i o n K e s i s t e n c e a c i t y o f (feet/mile) (feet) ( l b s . / t o n ) engine (tons)  G.T.P.  3,712  26  6,990  14  2,041  116  19,987  50  572  G. N...  5,202 4,146 3,375  116  17,830  50  572  N. P.  5,569 5,532 2,849 8  8,247 to 3,537  116  18,575  50  572  Santa Fe  6  7,510 to 3,819  185  34,506  76  376  C. R*R .  2*-  5,299 4,308  237  23,106  96  298  U.P.  Summarized from  Canadian Annual Review, 1907. 119. Winnipeg Free P r e s s , December 5, 1908  19® BIBLIOGRAPHY !•  Books of s p e c i a l value;  Borden, Henry. Robert L a i r d Borden: H i s Memoirs. the M a c M i l l a n Company. 1938.  Toronto,  T h i s i s an i n t e r e s t i n g account of the l i f e of S i r Robert Borden, but r e v e a l s l i t t l e new m a t e r i a l and adds nothing of importance to the f a c t s which can be obtained from the House of Commons debates. Dafoe, John W. C l i f f o r d S i f t o n i n R e l a t i o n to His Times. Toronto. The M a c m i l l a n Company. 1951. T h i s i s the standard a u t h o r i t y on S i f t o n and has much good m a t e r i a l r e l a t i n g to the a t t i t u d e of S i f t o n and western Canada. There i s l i t t l e p a r t i c u l a r mention made of the railway. F o u r n i e r , L e s l i e I., Railway N a t i o n a l i z a t i o n i n Canada, Toronto, The MacMillan Company. 1955. T h i s book p r e s e n t s an e x c e l l e n t summary of the e a r l y h i s t o r y of Canadian Railways and g i v e s e x c e l l e n t summaries on the important r e p o r t s and commissions concerning r a i l w a y s . Glazebrook, G. P. de T., A H i s t o r y of T r a n s p o r t a t i o n Toronto. The Ryerson P r e s s . 1958.  i n Canada.  T h i s i s a very long but i n t e r e s t i n g account. I t g i v e s a much broader view of the subject than most books, and i s e s p e c i a l l y i n t e r e s t i n g f o r i t s p o l i t i c a l background. Note: p.331 - government guaranteed f i r s t mortgage bonds on p r a i r i e s e c t i o n to the amount of f13,000 per mile (should be to 75$ o f amount not exceeding $13,000) p.332 - E a s t e r n D i v i s i o n was to be l e a s e d rent f r e e f o r three years (should be seven y e a r s ) . Jaekman, W. T. Economic P r i n c i p l e s o f T r a n s p o r t a t i o n . and" lewiYork? '.':A-;^W;oShawrfiompany}s.yl926.  Chicago,  ,  T h i s i s the best book on the economic s i d e of the Canadian Railway s i t u a t i o n . I t i s a necessary background to any study of t h i s k i n d . Jaekman, W. T. Economic P r i n c i p l e s of T r a n s p o r t a t i o n . U n i v e r s i t y of Toronto P r e s s . 1935.  Toronto.  :  T h i s i s a r e v i s e d e d i t i o n of the book l i s t e d above, and t h e r e f o r e of more v a l u e .  is  199 L o v e t t , Henry Almon, Canada and the Grand Trunk. 1829^1924. Toronto, G o o d c h i l d . 1924. No study of the Grand Trunk or i t s a f f i l i a t e s would be complete without t h i s small volume. I t p r e s e n t s a very summarized account of the r a i l w a y , but s t r e s s e s the economic s i d e r a t h e r than the p o l i t i c a l . S k e l t o n , Oscar D. L i f e and L e t t e r s of S i r W i l f r e d L a u r i e r , Toronto. S. B. Gundy, Oxford U n i v e r s i t y P r e s s . 1921. An e x c e l l e n t , sound, and a u t h o r i t a t i v e book on L a u r i e r . From h i s account of the B l a i r r e s i g n a t i o n i t would seem that h i s m a t e r i a l would need to be checked to c e r t i f y that what he presents as f a c t i s not o p i n i o n . S k e l t o n , 0. D. The Kailway B u i l d e r s . Toronto. Glasgow, Brook and Company. 1916. Volume 32 of C h r o n i c l e s o f Canada Series. T h i s g i v e s the c l e a r e s t and most c o n c i s e account of the r a i l w a y s of Canada to be found. T a l b o t , f-r\. The Making of a Great Canadian Railway. The fflusson Book Company, L t s . 1912.  Toronto.  T h i s presents a p i c t u r e of the r a i l w a y as seen at the time of c o n s t r u c t i o n . I t i s f u l l of c o l o r f u l i n c i d e n t s and • d e s c r i b e s i n d e t a i l the a c t u a l b u i l d i n g of the road from an eyewitness. I t does not f o r e s e e the f u t u r e except i n glowing terms. I n t e r e s t i n g but unimportant. Thompson, N., and Edgar, Major *T. H. Canadian Railway D e v e l opment from E a r l i e s t Times. Toronto. The MacMillan Company of Canada. 1933. T h i s g i v e s the impression of b e i n g a "paste and s c i s s o r s " volume. I t has a good summary but l i t t l e i n t e r p r e t a t i o n . Wilgus, W i l l i a m J . 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. Y a l e U n i v e r s i t y P r e s s . 1937. Although fundamentally an economic study t h i s work i s w e l l worth r e a d i n g f o r the background i t p r e s e n t s of Canadian r a i l w a y problems.Wrong, George M. The Canadians, The S t o r y of a P e o p l e . Toronto. The M a c M i l l a n Company of Canada. 1938. 1  T h i s i s a g e n e r a l survey o f Canadian h i s t o r y but p r e s e n t s a v e r y v a l u a b l e background to t h i s t o p i c . On page 428 he speaks of Vancouver as the f o u r t h l a r g e s t c i t y i n Canada, and on page 396 s t a t e s that the f i r s t Canadian Northern t r a i n a r r i v e d i n Vancouver 1905, which should be 1915.  200 2. Books of g e n e r a l use: B i g g a r , E. B. The Canadian Railway Problem. Macmillan company of Canada. 1917.  Toronto,  The  B l a c k , Norman Fergus. A H i s t o r y of Saskatchewan and the Old Northwest. Regina. Northwest H i s t o r i c a l Society.1913. Burpee, Lawrence J . Sandford Fleming, Empire B u i l d e r . Oxford U n i v e r s i t y P r e s s . 1915. Burt, A. L. Romance of the P r a i r i e P r o v i n c e s . W."J. Gage & Company. 1931.  Toronto.  C a r r o t h e r s , w. A. E m i g r a t i o n from the B r i t i s h London, P. S. K i n g and Son. 1929.  Isles,  Clapham, J . H. An Economic H i s t o r y of Modern B r i t a i n . Cambridge, at the U n i v e r s i t y P r e s s . 1938. David, L«-0. Laurier. Ltd.1919.  III.  B e a u c e v i l l e , Quebec. L ' e c l a i r e u r , .. .  England, Robert. The C o l o n i z a t i o n o f Y/estern Canada. London. P . S . K i n g and Son. 1936. Jones, E l i o t . P r i n c i p l e s of Railway T r a n s p o r t a t i o n . York, The M a c M i l l a n Company. 1924. Muir, Ramsay. A Short H i s t o r y of the B r i t i s h II. New York. World Book Company. 1927.  Commonwealth  S k e l t o n , Oscar D. The Canadian Dominion ( C h r o n i c l e s of America S e r i e s , 49} New Haven, Y a l e U n i v e r s i t y P r e s s . W i l l i a m s o n , James A. A Short H i s t o r y o f B r i t i s h New York, The M a c M i l l a n Company. 1931. Wittke, C a r l . A H i s t o r y of Canada. Stewart. 1935. 3.  Toronto.  New  1921.  Expansion.  M c C l e l l a n d and  Standard Books of Reference:  Cambridge H i s t o r y of the B r i t i s h Empire VI. Cambridge U n i v e r s i t y P r e s s . 1930. Ch. XX. O l i v e r , E. H. Settlement of the P r a i r i e s , 1867-1914. Ch. XXI. Wallace, W. Stewart. C o n s e r v a t i v e and L i b e r a l A d m i n i s t r a t i o n , 1885-1911. Ch. XXII. Howay, Judge F. W, Settlement and P r o g r e s s of B r i t i s h Columbia. Ch.XXIII. Jaekman, W. T. Communication.  Canada and I t s P r o v i n c e s . E d i t e d S h o r t t and Doughty. T. A. Constable, at Edinburgh U n i v e r s i t y P r e s s f o r the P u b l i s h e r s ' A s s o c i a t i o n o f Canada. 1913. V o l . X. McLean, S. J . N a t i o n a l Highways. V o l . XIX. O l i v e r , Edmund H. A l b e r t a and 'Saskatchewan. Canadian Annual Review of P u b l i c A f f a i r s . Edited J . Castell Hopkins, The Annual Review P u b l i s h i n g Company. 1902-1915. Canadian Men & Women of the Time. E d i t e d Henry James Morgan Second E d i t i o n . Toronto. Yto. B r i g g s . 1912. Makers o f Canada S e r i e s X. Toronto, Oxford U n i v e r s i t y P r e s s , 1926. McNaughton, John. Lord S t r a t h c o n a . Vaughan, W. S i r W i l l i a m Van Horne. Moody's R a i l r o a d s .  New York.  Moody's-Investor's S e r v i c e . 1936.  Poors Manual of the R a i l r o a d s . New York. Manual Company. 1902-1914.  Poors R a i l r o a d  Standard D i c t i o n a r y of Canadian Biography. E d i t e d Charles G. D. Roberts and A r t h u r T u r n b u l l . T o r o n t o . Trans^Canada P r e s s . 1934. 4. Magazines and P e r i o d i c a l s ; American Economic Review. Swanson.  September 1917. A r t i c l e by W.  W.  B r i t i s h Columbia Magazine X. No. 8. August 1914. p. 401-404. "Through the h e a r t of B r i t i s h Columbia." Canadian J o u r n a l of Economic and P o l i t i c a l S c i e n c e . February 1939. book review by H. A. I n n i s . Canadian Magazine R i c h a r d s o n , R. L.  Govern&ent Ownership of Railways. V o l . 16, November, December 1906. A r t i c l e , People and A f f a i r s , V o l . 17. September 1901. 485. Howey, Jolrn. ?/hen Edmonton and P r i n c e A l b e r t are connected by Railway. V o l . 18. - March 1902. 456. Le R o s s i g n o l , J.E. Railway S u b s i d i e s i n Canada and U n i t e d S t a t e s . Vol.20. March 1903. 419. S i f t o n , Honorable 0. The weeds o f the Northwest. V o l . 20. March 1903. 425. Carman, A l b e r t R., C h a r l e s M e l v i l l e Hays, Val.2®. May 1903. P a t t e r s o n , N. The Grand Trunk P a c i f i c . Vol.26. A p r i l 1906. 506. Warman, Cy. P r i n c e Rupert. V o l . 30. March 1908. 395. W e l l s , George C. The T r a n s p o r t a t i o n System of Canada. V o l . 38. February 1912. 385.  McGaffey, E r n e s t .  The T r a i l o f .the I r o n Horse. V o l . 44 Jan. 1915. 819.  Smith, J . Gordon.  Pushing Back the F r o n t i e r . Sept. 1915. 379.  V o l . 45.  E n g i n e e r i n g Magazine A r t i c l e , Canadian Railway C o n s t r u c t i o n , v o l . 38. January 1907, 688. McFarlane, George C , B u i l d i n g a New T r a n s c o n t i n e n t a l R a i l r o a d , Vol.36. November 1908.840. T a l b o t , F. A. The Grand Trunk P a c i f i c Railway. V o l . 48. October - November 1,911. E n g i n e e r i n g News Reeord. Newell, J . P. V o l . 90.  February 1, 1983.  811.  L i t e r a r y Digest. A r t i c l e , The Check to Canadian R a i l r o a d B u i l d i n g . Vol.50 February 87, 1915. 458. The N a t i o n Article,  V o l . 81, August  31, 1905.  178.  North American Review Charlton, J . Another Canadian T r a n s c o n t i n e n t a l Railway. V o l . 179. October 1904. 591. Outlook Article,  Canada s New T r a n s c o n t i n e n t a l Railway. V o l . 85 J u l y 81, 1906. 636. Yv'ashbum, S t a n l e y . Opening a New Empire. V o l . 95. J u l y 83, 1910. 657.  Popular Science Monthly Burpee, Lawrence J .  How Canada i s S o l v i n g her T r a n s p o r t a t i o n Problem. September 1905.455'.  Q u a r t e r l y J o u r n a l of Economics. K i n g , W. L. Mackenzie The N a t i o n a l T r a n s c o n t i n e n t a l Railway. V o l . 19. November 1904. 186. Review o f Reviews Chambers, E. T. D.  The Trans-Canada Railway, V o l . 87. A p r i l 1903. 453. Laut, Agnes 0. Trend of P o l i t i c a l A f f a i r s i n Canada. V o l . 30. November 1904. 574. Knappen, T. MacFarlane. Western Canada i n 1904. v o l . 30. November 1904. 578.  Seribners.Magazine Lumsden, Hugh. D.  Canada's New T r a n s c o n t i n e n t a l V o l . 40. J u l y 1906. 73.  Railway.  203 farman, Cy.  The Grand Trunk P a c i f i c 77.  Y o l . 40. J u l y  1906.  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