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Markets and capital : a history of the lumber industry of British Columbia (1778-1952) Lawrence, Joseph Collins 1957

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MARKETS AFD CAPITAL: A HISTORY OF THE LULtBER Il^USTRY OF BRITISH COLUMBIA (1773-1952). by JOSEPH COLLINS LAWREHCE B, A*5 U n i v e r s i t y of B r i t i s h Columbia, 1951 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE RE QUIRE?'3NTS FOR THE DEGREE OF MASTER OF ARTS i n the Department of H i s t o r y We accept t h i s t h e s i s as conforming to the required standard THE UNIVERSITY OF BRITISH COLTMBIa September, 1957-The h i s t o r y of the lumber trade of B r i t i s h Columbia has been one of considerable f l u c t u a t i o n and r e c u r r i n g c r i s e s occasioned by h i s t o r i c a l changes over which the ind u s t r y has had no c o n t r o l . With no larg e permanent home market to depend upon f o r s t a b i l i t y , i t has had to a t t a i n a f l e x i b i l i t y which would allow i t to accommodate i t s e l f to the ever-changing complexity of world markets, In I t s pioneer phase (1851-1886) the trade could depend on only small l o c a l markets i n V i c t o r i a , New Westminster and, -to some extent, San Fr a n c i s c o . With a s c a r c i t y of operating c a p i t a l , no r a i l t r a n s p o r t a t i o n whatever, and inadequate water t r a n s p o r t a t i o n c o n t r o l l e d by San Francisco brokers, the i n f a n t Industry l o cated on Vancouver Is l a n d , on Burrard I n l e t and at New Westminster struggled f o r s u r v i v a l . Despite these handicaps, c e r t a i n f a i r l y r e l i a b l e markets were gr a d u a l l y e s t a b l i s h e d In the awakening P a c i f i c community i n A u s t r a l i a , C h i l e , the Sandwich Isla n d s , and China* The completion of the Canadian P a c i f i c R a i l r o a d (1886) marked the r e a l beginning of the lumber trade i n B r i t i s h Columbia, I t made possible the e x p l o i t a t i o n of the i n t e r i o r f o r e s t s , presented the trade w i t h the P r a i r i e market, which was to s u s t a i n i t u n t i l 1913? and i t a t t r a c t e d p l e n t i f u l c a p i t a l to the indust r y f o r the f i r s t time. The completion of the Panama Canal i n 1914 marked the t h i r d phase of the h i s t o r y of the trade, f o r i t opened to the i n d u s t r y the communities of the A t l a n t i c , e s p e c i a l l y the seaboard of the United States and the important United Kingdom market, This new cargo trade rescued the a i l i n g Industry from the c o l l a p s e of the P r a i r i e demand. The p a t t e r n of the lumber trade changed again a f t e r 1940. War-time shipping d i f f i c u l t i e s , followed by a seemingly permanent d o l l a r shortage i n the s t e r l i n g area l a r g e l y diminished the importance of the United Kingdom market, A sustained period of p r o s p e r i t y i n the United States, however, f a c i l i t a t e d a s h i f t of trade l i n e s from the Old World to the New. The change was accelerated and consolidated by the r i s e of giant American c e l l u l o s e corporations which Invested h e a v i l y In B r i t i s h Columbia f o r e s t lands and production plants and Integrated them i n t o vast i n t e r n a t i o n a l complexes of i n d u s t r i e s whose main market i s the pulp-, lumber-, and cellulose-hungry i n d u s t r i e s of the United States. This t h e s i s attempts to trace these economic changes i n the l i g h t of changing h i s t o r i c a l conditions and to discover the p a t t e r n which emerges from them. In presenting t h i s t h e s i s i n p a r t i a l f u l f i l m e n t of the requirements f o r an advanced degree at the U n i v e r s i t y of B r i t i s h Columbia, I agree that the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r reference and study. I f u r t h e r agree that permission f o r extensive copying of t h i s t h e s i s f o r s c h o l a r l y purposes may be granted by the Head of my Department or by h i s r e p r e s e n t a t i v e . I t i s understood that copying or p u b l i c a t i o n of t h i s t h e s i s f o r f i n a n c i a l gain s h a l l not be allowed without my w r i t t e n permission. Department The U n i v e r s i t y of B r i t i s h Columbia, Vancouver 6, Canada. Date 1J£ ^ / l ^ l e ^ 5 ACKNOWLEDGMENT I should l i k e to express my a p p r e c i a t i o n f o r the aid given me i n the preparation of t h i s t h e s i s by the s t a f f of the F o r e s t r y L i b r a r y and the M i c r o f i l m i n g Department of the U n i v e r s i t y of Washington, by Miss Ann Smith and the s t a f f of the L i b r a r y of the U n i v e r s i t y of B r i t i s h Columbia, Mr. W i l l a r d I r e l a n d and the s t a f f of the P r o v i n c i a l Archives, V i c t o r i a , B. the s t a f f of the Reference Department of the L i b r a r y of the U n i v e r s i t y of C a l i f o r n i a at Los Angeles, and to the s t a f f of the Science and Industry Department of the Vancouver P u b l i c L i b r a r y . I am e s p e c i a l l y g r a t e f u l to Mr. Leon Koerner, whose generous f i n a n c i a l assistance made p o s s i b l e a summer spent In research at the above-mentioned I n s t i t u t i o n s . TABLE OF CONTENTS Foreword Chanter I Pioneer Trade i n the P a c i f i c Basin (1778-1886) , . . . Chapter I I American Investment and the P r a i r i e Trade (1886-1914) Chapter I I I Panama Canal and the Cargo Trade (1915-1940) . . . Chapter 17 The Giant Companies and the American Market (1940 - ) Chapter 1 Conclusion . . . . . . . . . . . . . Bibli o g r a p h y T FOREWORD The h i s t o r y of the lumber trade of B r i t i s h Columbia i s a stor y of struggle against r e l a t i v e geographical I s o l a t i o n , f a u l t y or inadequate t r a n s -p o r t a t i o n , i n s u f f i c i e n t c a p i t a l and undefendable markets. Despite these hazards; i n the 170 years between the v i s i t s of the e a r l y China traders to the Coast f o r spars and the present-day shipment of vast cargoes of lumber, a great Industry worth w e l l i n excess of f i v e hundred m i l l i o n d o l l a r s annually has been developed„ The land i n which t h i s s t o r y unfolds i s vast and rugged. The chief topographical feature of the Mainland of B r i t i s h Columbia Is a s e r i e s of more or le s s p a r a l l e l mountain ranges and v a l l e y s extending, g e n e r a l l y speaking, i n a northwesterly d i r e c t i o n * The eastern boundary i s the Rocky Mountain System. Westward l i e s a great g l a c i a l trough extending f o r eight hundred miles, known as the Rocky Mountain Trench. S t i l l f u r t h e r westward are the 1 For a d e t a i l e d survey of the physiographic aspects of the f o r e s t s of B r i t i s h Columbia see: Whitford, K. N. and C r a i g , F. E.. Forests of B r i t i s h Columbia. Ottawa, 1913, pp. 31-48; Mulholland, F, £>., Ike. F;or e s-t_Re s our c e s of Br i 11 s h.. C plum Ma» V i c t o r i a , B. C., 1937; and Sloan, Gordon T'cG., The Forest Resources of B r i t i s h Columbia, 1945, 7ictorlaT^r^ 7 7 ~ T 9 T 5 7 T p . 015-020, to which t h i s Forev/ord Is l a r g e l y indebted. I I Selkirk, Monashee, Cariboo and Stikine Ranges. West of these mountain ranges is a central plateau which, however, is not a l l tableland but eroded and dissected plain. Elevations on the plateau range from three thousand five hundred to five thousand feet above sea^evel, and i n the valleys from one thousand to two thousand feet. To the westward l i e the Cascades and Coast Ranges, which average six thousand to seven thousand feet and divide the Interior from the Coastal belt. The Coast Mountains i n this province are considered by or©graphologists as a continuation of the Cascades northward from the Lower Fraser Valley. There is l i t t l e , i f any, coastal plain lying to the west of the Coast Range. In the Pacific Ocean, off the Coast, l i e Vancouver Island and the Queen Charlotte group, whose mountains constitute the north-ward extension of the Coast Range of Oregon and Washington. Fronting on the Pacific Ocean, the province encompasses eleven degrees of latitude between its north and south boundaries; the climatic attributes characteristic of i t s location, coupled with those distinctive topographical features already described have created alternate wet and dry belts. The prevailing moisture-laden winds, sweeping inland from the sea, release the greater part of their rain as they reach the Coastal belt; then, travelling inland they obtain additional moisture from the evaporation of the inland land masses, and deposit this i n turn on I l l the eastern mountain systems. West of the Coast Mountains the r a i n f a l l ranges from forty inches in the south to one hundred and forty inches in the north. This moisture, coupled with a mild, even temperature caused by the Japan current, creates an environment that produces the most important forests i n the province. East of the Coast Mountains the southern r a i n f a l l ranges from ten to fifteen inches, while twenty-five to thirty inches i s recorded in the northern areas of the Interior. This relatively light precipitation in the areas east of the Coast Range, i n combination with extremes of temperature, produces much lighter forest cover, varying from semi-arid types in the valleys to more dense, but low-grade, forests on the higher elevations. The heavier precipitation again encountered on the western slopes of the eastern mountains (from forty to sixty inches) creates more favourable growing conditions, and forests resembling those of the Coast are common. Greater temperature variations, however, retard the rate of forest growth. The Coast Range i s , i n reality, the boundary-line separating two distinct and separate forest areas generally described as the "Coast" and "Interior". The forest-cover of the Coast area, reflecting the effect of i t s growing TV environment, i s composed of four main species: Douglas-f i r , Western hemlock, Western red cedar, and silver or balsam fir5 and three lesser speciess yellow cypress, white pine and spruce. On the Southern Mainland Coast and on the southern and eastern areas of Vancouver Island, Douglas-fir is the dominant species up to elevations of about two thousand feet. Beyond that elevation cedar, hemlock and balsam become increasingly important in that order. In the Interior the forests contain Englemann spruce, Western yellow pine, Western larch and white spruce as the main commercial cover. In addition, most of the Coast species are found with the exception of Sitka spruce and yellow cedar. In the southern dry site areas are found f i r , yellow pine, spruce, lodgepole pine and larch. Towards the north the yellow pine disappears and spruce, lodgepole pine and balsam become the dominant types. Farther north yet f i r ceases to grow and lodgepole pine and spruce predominate. In the Interior "wet belt" are found fine pure cedar stands in the wetter valley areas with cedar-hemlock forests above on the higher slopes. Above this, a hemlock-cedar-spruce cover appears in association with some f i r , white pine and balsam. Spruce and lodgepole pine are predominant in the higher altitudes ranging up to six thousand feet. Since the late 1920's, British Columbia has derived from this source at least half of Canada's 7 annual cut of timber, a l l but a stt-all part of i t s shingle production and more than ten per cent cf i t s pulp output, T'uch of the l a r g e s t part of the post-war expansion i n Canadian lumber production has taken place In t h i s province. I n few parts of the world does f o r e s t wealth c o n s t i t u t e the economic basis that I t does i n B r i t i s h Columbia. I f i t be assumed from the foregoing that the f o r e s t -cover i s d i s t r i b u t e d over the greater part of the land areas of the province, that assumption must be corrected l e s t the true p i c t u r e be misunderstood., The land area of the province i s 234,403,000 acres of -.nhich 41 3 159 ? 000 are i n the Coast d i s t r i c t and 193,244,000 i n the I n t e r i o r . F u l l y f i f t y - s e v e n per cent of t h i s great • geographical expanse Is made up of water, muskeg, swamp, and land Incapable of supporting other than f o r e s t of l i t t l e or no commercial value.-* The remaining area i s covered with a f o r e s t which has constituted the backbone of the province's economy f o r the l a s t seventy-five years. Between 1939 and 1952, the value of the f o r e s t products Industry *of B r i t i s h Columbia rose from l e s s than $90,000,000 to some $500,000,000. In the same period exports of wood, wood products and paoer increased from 085,000,000 to more than $320,000,000". The primary industry (logging) and the secondary industry (wood and paper products) together now account for approximately f o r t y per cent of the net value cf production i n the province. ^ Orchard, C, D., Forest Management, V i c t o r i a , "Mieen's P r i n t e r , 1955. MARKETS AND CAPITAL; A HISTORY OF THE LIMBER INDUSTRY OF BRITISH COLUMBIA, (1773-1952). CHAPTER I PIONEER TRADE IF THE PACIFIC BASIN (1773-1886) The h i s t o r y of the lumber indus t r y of B r i t i s h Columbia begins In the days when the Spaniards, whose names so l i b e r a l l y dot our coast l i n e , were s t i l l e xploring the bays and i n l e t s of the North P a c i f i c And c e r t a i n l y the dimensions of B r i t i s h Columbia trees g r e a t l Impressed Captain Cook, p a r t i c u l a r l y because of t h e i r a d a p t a b i l i t y f o r spars. When he repaired h i s two ships, •t' l e R e s o l u t i o n and Discovery i n Nootka Sound i n March, I7785 he became the f i r s t white man to make use of the 1 timber of the province. I t was the need f o r ships with which to e x p l o i t the fur trade with China that l e d to the f i r s t v a r i e d lumbering operations by white men i n the province* In I788 John Meares, a B r i t i s h captain operating out of China, a r r i v e d at Nootka In the ship, F e l i c e . In her hold was stowed the frame f o r a ship and the too l s to convert the b i g f i r s and cedars of Vancouver Island i n t o masts, spars, planking, decking and super-s t r u c t u r e . The ship a l s o c a r r i e d twenty (some a u t h o r i t i e s say f i f t y ) Chinese loggers, whipsawyers, 1 .Lamb, W. Eaye, " E a r l y Lumbering on Vancouver Island," Part I.t 1844-1855? The British_ColumbI& H i s t o r i c a l Quarterly, v o l . 2, TJanualr,"' 193^)5 P° 31* 2 carpenters and shipwrights as passengers, the f i r s t limbering and shipbuilding force i n the North Pacific wilderness and the forerunners of that Chinese labor force which was to figure so prominently in Br i t i s h Columbia in the following century. Two days before the launching of the ship Northwest America% Robert Gray, another China trader returning to Boston, arrived i n Nootka Sound. He and his crew assisted Meares and his Chinese workers to launch their fir-beamed and cedar-planked schooner before continuing their voyage. Three years later, on September 21, 1791, he returned to Clayoquot Sound, just south of Nootka, in the 220-ton Columbia Redlvivia and there, like Meares before him, cut the abundant forest and fashioned from i t a schooner with which to exploit the fur trade of the Coast. By October 3» 1791, the new ship Adventure, the second product of the region's forest wealth, was completed and launched. Although these traders came primarily in search of furs, they were not oblivious to the commercial possibilities of the vast forests which extended down to tidewater of the thousands of miles of Pacific Coast waterways. The records of Captain Meares contain the following order for his second ship, the Iphigenla, which loaded at Nootka for China: "During the time you 3 remain i n p o r t , carpenters s h a l l be employed i n c u t t i n g down spars and sawing planks, p a r t i c u l a r l y boat's knees and timbers, -- a l l of which bear a good p r i c e i n China,"2 Meares gave t h i s i n s t r u c t i o n on behalf of h i s employers, who i n 1787 Informed him that spars of every denomination were constantly i n demand i n the Chinese market and ordered him to procure as many as he could conveniently stow,^ other f u r traders doubtless d i d l i k e w i s e . I t Is not p o s s i b l e to estimate the volume of these e a r l y shipments, although the t o t a l could not have been very great; c e r t a i n l y there was nothing l i k e a timber trade f o r i t s own sake. There followed a hiatus of four or f i v e decades during which there occurred no f u r t h e r e x p l o i t a t i o n - o f the c o a s t a l f o r e s t except f o r the l i t t l e c u t t i n g In the saw-pits of the Hudson's Bay Company outpost at F o r t Langley. There company workmen cut the rough lumber which was used i n the e r e c t i o n of houses and store rooms, and l a t e r the staves f o r b a r r e l s used i n the f i s h trade with the Sandwich I s l a n d s . The b u i l d i n g of the Hudson's Bay Company's outpost at F o r t V i c t o r i a In 1843 and the t r a n s f e r thereto of 2 Meares, John, Voyages Made ±n^tMJ[m£Sj^2M~32& 1789 from China to the North ^est_CoMl^LAiml^^ London, 1790, Appendix 2. 4 much of the business formerly c a r r i e d on i n t h e i r F o r t Vancouver o f f i c e marked the r e a l beginning of a continuous Industry on Vancouver I s l a n d . The large i n i t i a l requirement of lumber f o r the F o r t was met by the company's own saw-pit, where two sawyers, one i n the p i t and one above, ripped Into rough planks the l o g which straddled i t . In 1850 t h i s p r i m i t i v e method of c u t t i n g f e l l i n t o disuse when the company es t a b l i s h e d the f i r s t machine-operated sawmill on the I s l a n d at M i l l 4 Stream, j u s t above Parson's Bridge. In 1848 a m i l l w r i g h t named Fenton was brought from England; to b u i l d t h i s m i l l , but before he f i n i s h e d the l u r e of the C a l i f o r n i a g o l d f l e l d s overcame him and he joined the army of gold seekers f l o c k i n g i n t o that area. Another m i l l w r i g h t , named Parsons, a r r i v e d to replace him, bringing w i t h him the machinery f o r a g r i s t m i l l , which was added to the i n s t a l l a t i o n . I n November, 1849 > the m i l l was completed and cut a considerable number of deals which were exported to San F r a n c i s c o , where they brought $80 per thousand f e e t i n gold dust. A f t e r some months of operation an irreplace-able part of the machinery broke, and forced the m i l l to close. S h o r t l y t h e r e a f t e r i t was found that the flow of water i n M i l l Stream was only s u f f i c i e n t to run the m i l l Lamb, on. c i t . , p. 39. 5 In the winter and for this reason a new location was sought. A proper site could not be found near Victoria and i t was decided to build the new mill at Craigflower bridge. The planing m i l l and grist mill were accordingly-erected there i n 1853 and the old lumber mi l l at M i l l Stream was repaired and operated whenever water conditions were favorable. In 1851 a second mill, the Vancouver Island Steam M i l l Company was organized by Governor James Douglas, Roderick Finlayson, John Tod ?, Simon Fraser Tolmie and other employees of the Hudson's Bay Company. It is almost certain that the high lumber prices prevailing on the San Franeiseo market f i r s t led them to undertake the venture. They erected a m i l l at Albert Head, but there is no evidence that i t produced any lumber. Perhaps i t became quickly apparent to them that they could not compete with the newly established Puget Sound mills where labor and logs were both readily available and cheap. Neither of these conditions prevailed i n Fort Victoria. The projeet was completely abandoned in 1856.5 In the meantime another sawmill had been ereeted by the colony's f i r s t independent settler, Captain Walter 5 Copeland, Henry C , "Some historical highlights on the British Columbia timber industry," Western Lumberman, vol. 19, (August, 1922), p. 32. Colquhoun Grant, who along with a number of servants established himself at Sooke on the southwest tip of Vancouver Island in 1849 with the express purpose of farming and sawmilling. A notoriously poor manager, Grant soon ran hopelessly into debt and, unable to pay his men, lost them to the gold fields of California.^ Despairing of his fa i l i n g fortunes, Grant himself quit the colony to try his luck in California, only to return emptyhanded to dispose of his property. Once again there is no record of this mill's having produced any lumber. When John Muir, a one-time servant of Grant acquired his estate i n 1853» the property included the remains of the water-power sawmill, at the northeast end of Sooke Basin. Though John Muir's sons, and i n particular Michael Muir, engaged in the timber and spar trade$, they seem to have made no immediate effort to repair and operate this m i l l . Exports from Sooke during the f i r s t few years of their tenancy were confined to spars squared timbers and piles, a l l of which could be produced by hand.7 The Muirs sent a fa i r number of spars to England where they were converted into masts for merchant vessels, 6 For an exhaustive account of the career of this f i r s t independent settler see: Ireland, Willard, "Captain Walter Colquhoun Grant," British Columbia Historical Quarterly, vol. 17, (Jan. - Apr., 1953), pp. 87-125. 7 Lamb, W. Kaye, op_. c i t . , Pt. II. 1885-1866, The British Columbia Historical Quarterly, vol. 2, (April, 1938), P. 95. 7 and from England sbme found their way to the Continent. There they competed with the well-known Riga spars of the Baltic forest lands.® San Francisco was the chief export market for the sawmills of Sooke and the island. Eighteen of the nine-teen vessels which sailed with timber products from Sooke and "Victoria In 1853 were bound t h i t h e r S a n Francisco was sufficiently near and i t s market was sufficiently active to make small shipments by small vessels possible and profitable. The only other producing mill operating on Vancouver Island in this period was a small establishment on Salt Spring River, about six hundred yards from Hanaimo Fort. It was erected in April, 1854, and probably produced only enough to satisfy the light demand of the Fort i t s e l f . 1 0 The discovery of gold on the Fraser River in 1858 brought a wave of prosperity to Vancouver Island. Twenty-three thousand gold-seekers l e f t San Francisco by boat and more than eight thousand by land for the new gold-fields of British Columbia. 1 1 It was this "rush" ® "Vancouver Island Timber," Victoria British Colonist. (Feb. 19, 1861), p. 2. 9 Lamb, W. Kaye, p_p_. c i t . , Pt. II, p. 116. 1 0 Copeland, op., c i t . , p. 32. 1 1 Bancroft, H. H., History of British Columbia. 1792-1887. San Francisco, The History Company, lb«7, p. 8 that f i r s t drew the attention of the world to British Columbia and i t s vast natural resources. Victoria, the capital of the Crown Colony of Vancouver Island and the essential supply point for the huge influx, benefited hugely. From a sleepy f o r t of a few hundred persons, i t grew into a town of six thousand, not including the large number of miners who wintered there. 1 2 This influx severely taxed the housing capacity of the l i t t l e community and the demand for building material was accordingly great. In the f i r s t crowd of fortune seekers to arrive i n Fort Victoria from San Francisco by sea i n 1858 was 13 William P. Sayward, a lumberman from Maine. Like his compatriots he came seeking his fortune, but unlike them, he intended to find i t in the forest wealth of the North Pacific of which he had heard so much. One glance at the tent city of newly arrived miners convinced Sayward that Victoria i t s e l f constituted as good a market for lumber as he was likely to find. He immediately established a water-power sawmill at M i l l Bay on Saanich Inlet. During the years which followed he consistently produced from the 1 2 Bancroft, H. I., History of British Columbia, 1792-1887, San Francisco, The History Company, 1887, T>» 70o< *3 For a detailed biography of Sayward, see: British Columbia Magazine, Vol. 10-11, (May, 1914), p. 24?. 9 plentiful supply of logs on Saanich Inlet, Chemainus River and Oyster Bay a daily average of fifteen to twenty thousand feet of finished and semi-finished lumber. That production figure was eminently profitable for i t s day, especially i n view of the high price the product commanded on the Victoria market. For a year and more 14-lumber sold at one hundred dollars a thousand feet, then f e l l to about twelve dollars before i t advanced to twenty dollars in 1862,^ when finished lumber from Puget Sound mills sold at thirty dollars. 1^ Sayward's mi l l was the f i r s t permanent venture i n exploiting the forests of the colony and province. For fifteen years i t continued to produce for the Victoria market from i t s Saanich site. In 18?3) the pioneer lumberman found i t expedient to move closer to the city and accordingly located in Rock Bay where he produced thirty thousand feet daily during the two depression decades which followed. Meanwhile small sawmills were being erected on the Mainland along the route to the goldfields In answer to the demands of merchants, hotel keepers and miners. The f i r s t was probably the l i t t l e mill built on the banks of the Fraser at present-day New Westminster by 1 4 San Franciseo Daily Evening Bulletin, July 15> 1858, p. 2. ^ Colonist, Aug. 2, 1862, p. 3. 1 6 Coraan, E. T. and Gibbs, H., Time. Tide and Timber, Stanford, Stanford University Press, 194-9, p. 68. 10 W. J. Armstrong, lew Westminster's pioneer resident. Another was erected i n the same place shortly thereafter 17 by J. A. Homer. Others were erected at Fort Langley and at Fort Hope by a Mr. Coe; at Fort Yale by Land, Fleming and Co.; at Lillooet i n 1862 by Cadwaller & Co.j3-^ at Barkerville by DetheniellMason,2^ the Maine lumberman who later became a member of the Provincial 21 Legislature; at Antler Creek by a Mr. Baylor; at French 22 23 Creek by a Mr, Bomano; and at Douglas by P. Smith. It is doubtful that these mills produced more than a token supply of lumber at any time, for most miners were content to build their log shacks from the scrub or logs in the area where they dropped their picks. That choice involved no cost and no transportation problem; others relied on tents to shield them from the elements. Probably the larger part of the output of these mills went to 1 7 From a compilation i n MS Folder 901-1, Provincial Archives, Victoria, B. C. ^ Lo£_...cit. 19 Kerr, oju c i t . , p. 120. 2 0 Kerr, op., c i t . , p. 24-0. 2 1 From a compilation in MS Folder 901-1, Provincial Archives, Victoria, B. C. 2 2 Colonist. June 11, 1866, p. 3. 23 Kerr, op. c i t . , p. 182. 11 construct the stores, saloons, and dance halls i n the several mining towns of the area. The establishment of a permanent large-scale lumbering industry on the Alberni Canal and on Burrard Inlet came in answer to the demand of several historic changes occurring far distant from the isolated colonies of Vancouver Island and British Columbia — i n Australia, Hawaii, Chile and China. These were the countries which would constitute the chief markets for British Columbia lumber between 1865 and the coming of the railroad to Vancouver in 1886, and the names of their great commercial centres, Sydney, Melbourne, ~ Adelaide, Honolulu, Valparaiso, and Shanghai were to become as commonplace in the conversation of pioneer residents of the Alberni Canal and of Burrard Inlet as were London or San Francisco. In Australia, the gold rushes of 1851 to i860 greatly increased the population of the Colony of New South Wales and made available large sums of gold with which to reinforce the economic and social fabric of the nation. Ships from England earried out f u l l cargoes of eager immigrants and took back large shipments of gold and wool. By the end of the decade, the prosperity of the colony was assured. Wool had doubled i n market value and the colony's agricultural industry had been assured an ever-increasing market for i t s goods i n the growing cities of Melbourne and Adelaide. 12 In i860 the5 population of the continent was 1,145,585 of whom 538,234 lived in Victoria and 348,546 in Hew South Wales. During the next ten years the 24 population grew to 1,647,756. This population growth meant a large building program in the cities and lumber was i n great demand. In the earliest days of the eolonies, Australia received timber and spars from New Zealand and had even herself, i n 1803, shipped a "quantity of wood" from her magnificent forests of red cedar along the rivers 25 of New South Wales to British Navy yards. But by i860 her supplies, never really large, were greatly depleted and she began to import sizeable quantities from the Baltic nations, the Puget Sound area and, after 1865, ever larger quantities from British Columbia. The rise of Hawaii as an important sugar producer was the second factor i n the growth of British Columbia's early off-shore lumber trade. Hawaii (the Sandwich Islands) had occupied a small place i n the trade economy of British Columbia since the earliest days when the Hudson's Bay Company shipped salted Fraser River salmon from Fort Langley in return for sugar and molasses5 but the volume of trade was meagre compared with that 2 4 Shann, E., Economic history of Australia, University Press, Cambridge, 1930, p. 260. 2 5 Dunbabin, T., The making of Australia. London, A. & C. Black Ltd., 1922, p. 70. 13 which grew up a f t e r i 8 6 0 . Between i860 and 1864 the production of sugar i n the Islands mounted r a p i d l y from I,444,271 pounds to 10,414,441 pounds with an accompanying growth of I t s by-products, and by i860 I t had almost doubled again. Sugar's domination of the Island economy was i l l u s t r a t e d by the f a c t that In 1871 i t represented a- value of $1,250,000 out of t o t a l exports of $ 1 , 6 5 0 , 0 0 0 . 2 1 The expanding sugar trade of the Islands meant an unprecedented b u i l d i n g boom i n Honolulu, For the next twenty years scores of ships loaded with B r i t i s h Columbia f i r cleared Burrard I n l e t and Hew Westminster, bound f o r Honolulu. In return. Hawaiian sugar became a common a r t i c l e of commerce i n V i c t o r i a (which, i n c i d e n t a l l y , supplied the commercial needs of not only the population of B r i t i s h Columbia and Vancouver Island but also those of some of the t h r i v i n g camps of the Puget Sound area. The t h i r d f a c t o r i n t h i s emergence of the P a c i f i c Basin as a market f o r lumber was the Republic of C h i l e * The stable conditions which Manuel Montt, the d i c t a t o r , brought about i n 1850 ushered i n a period of unprecedented growth In that South American r e p u b l i c , and although he was deposed i n i 8 6 0 , h i s program of r a i l r o a d and p u b l i c 2 6 Stevens, S. K., American expansion i n Hawaii., (1842-1898), Harrisburg, Archives P u b l i s h i n g Company of Pennsylvania, Inc., 1945, P« 86. 14 works construction continued throughout the era of the Liberal Republic (1861-1891).27 In this period an economic system largely dependent on mineral exports was established and Valparaiso, Chile's chief seaport, became the greatest trading and commercial centre on the west coast of South America. The city suffered great damage at the hands of the Spanish navy i n 1866 and from earth-quake i n 1873• Its reconstruction after each disaster drew heavily upon the infant lumber industry of the North Pacific Coast and of Burrard Inlet i n particular. China, the last important market in the rise of British Columbia's off-shore trade, figured as a permanent market after 1865. The increasing commercial exploitation of the Yangtze basin after i860 made Shanghai a prime market for almost any construction material. With the largest trade hinterland i n the world from which to draw sustenance, Shanghai grew from a city of 250,000 i n i860 to 1,000,000 i n I89O.28 British Columbia lumber played no small part i n housing this enormous increase i n population. The trade relations which British Columbia lumbermen established with Chinese lumber merchants remained more or less secure until the Japanese occupation 2 ? Cox, I., Chile since Independence. Washington, George Washington University Press, 1935? P« 323. 2 8 Murphey, Rhoads, Shanghai, kev to modern China, Cambridge, Harvard University Press, 1953» P* 22. 15 which "began i n 1931? gradually disrupted them* Concurrent with the demands of these new markets ,r,as the c u t t i n g of Great B r i t a i n ' s lumber supply l i n e by the American C i v i l War, Between 1800 and i860 Great B r i t a i n had obtained a large part of her normal r e q u i r e -ments i n timber from the p i t c h pine f o r e s t s of the Lower M i s s i s s i p p i region. With the approach of the outbreak of h o s t i l i t i e s between North and South, B r i t i s h lumber merchants feared that t h e i r Southern sources' of supply would be cut o f f . They accordingly i n v e s t i g a t e d other p o s s i b l e sources and i n t h e i r anxiety even inv e s t i g a t e d the f e a s i b i l i t y of hauling at l e a s t l a r g e r s i z e s over the thousands of miles around the Horn between Vancouver I s l a n d and London. Some l i t t l e lumber and. a few spars were shipped i n t h i s way to England, but on the whole the P a c i f i c Northwest product could not compete i n the A t l a n t i c markets w i t h the producing areas of Eastern Canada, the B a l t i c , and the American Southwest a f t e r the cessation of h o s t i l i t i e s 0 The r i s e of these scattered markets combined to make large demands f o r timber- products which the Puget Sound m i l l s alone were not able to s a t i s f y . For the f i r s t time lumbermen began to give c a r e f u l a t t e n t i o n to the untouched timber t r a c t s of Burrard I n l e t and the Alber n i Canal. The f i r s t "attempt to export lumber to one of these new P a c i f i c B a s in markets occurred i n New Westminster. The town was l i t t l e more than s e v e r a l score cabins between many stumps when Sewell Prescott Moody, Moses I r e l a n d , and James 7an Bramer In. 1862 erected a m i l l there on the p r o f i t s they had made In gold mining on the F r a s e r , Moody and I r e l a n d were both Maine lumbermen and f u l l y experienced In the undertaking; nothing Is known of Van Bramer's back-ground. Their plan was to produce ret u r n cargoes f o r ships bringing supplies to the Mainland s e t t l e r s and to the several hundred - s o l d i e r s who were engaged i n b u i l d i n g the wagon road to the g o l d f i e l d s . From the -very beginning t h e i r m i l l was fated to f a i l u r e because of I t s f a u l t y l o c a t i o n . The f i r s t ship to load at the m i l l f a i l e d to cl e a r the r i v e r , running onto a nearby sand bar where i t remained f o r s i x weeks. After that misfortune, no other ships would venture near the pioneer m i l l and i t was forced to close down. Nevertheless, Moody and his associates retained t h e i r f a i t h In the profit-making p o s s i b i l i t i e s of the business and awaited a favorable opportunity of re-entering i t . 2 ^ jj- came a year l a t e r i n the f a i l u r e of Burrard I n l e t ' s f i r s t d y I r e l a n d , Moses, "Lumbering," Western Lumberman and Contract_pr, v o l . 4, (June, 1907;, p. 21 . 17 establishment — the Pioneer Mills. This forerunner of the giant Burrard Inlet industry was established in 1863 by Thomas Graham and Philip Hicks, and was known formally as the Pioneer Mills of the T. W. Graham Co. of New Zealand and New Westminster. It was located at the mouth of Lynn Creek, where i t s overshot water-wheel could be depended upon to deliver an estimated f i f t y horsepower to drive two circular saws and a twenty-two inch planer. A plentiful supply of logs from a 480 - acre pre-emption allowed the mill to turn out forty thousand feet of lumber daily. The market for this output was entirely domestic: New Westminster, Victoria and smaller coastal points on Vancouver Island. Despite cheap power and cheap logs the Pioneer Mills found i t could not compete in the Victoria market with Sayward's local product nor even with that of their Puget Sound ri v a l s . The slackening of the boom conditions which followed the gold rush signalled the end for Graham. After struggling for less than half a year, he closed down operations and l e f t the Colony for California. There, in San Diego, Burrard Inlet's f i r s t businessman died in 1898. 3 1 30 British Columbia Lumberman, vol. 36, (February, 1952), pp. 68-69. 31 West Coast and Pueet Sound Lumberman, vol. 10, (March, 1899), p. 261. 18 Graham's mill was sold by public auction to John Oscar Smith, a New Westminster butcher whose last bid of eight thousand dollars won out against that of Moody, the only other contender. Re-named Burrard Inlet Mills, the plant cut steadily into the next year, making its only export shipment in November, 1864, when the barque Ellen Lewis loaded 277,500 board feet of lumber and sixteen thousand pickets for a historic shipment to Adelaide, Australia. 3 2 But the diff i c u l t i e s involved in overseas marketing proved too much for the capital-poor early entrepreneur, and the mill passed into the hands of the waiting t r i o of Moody, Ireland and Van Bramer for the sum of $6,900.33 Moody loaded two ships in that f i r s t year, the Glimpse and the Envoy and attempted to do successfully what Smith had failed to accomplish: to supply an undeniable market on a very limited amount of capital. He despatched the two ships to the Australian colonies 3 4" and proceeded to load the Metropolis and the Kent for Valparaiso. The Glimpse and the Envoy arrived in Australia to find the market temporarily gluttedj and their captains had to dispose of their cargoes as best they could. Moody and his associates received only 3 2 British Columbia Lumberman, vol. 36, (February, 1952), pp. 68-69. 3 3 Colonist, August 27, 1864, p. 3. 3 4 "Moodyville," Vancouver News and Dally Advertiser, April 2, 1887, p. 1. four hundred d o l l a r f o r two shiploads of lumber. Carrying on an export trade without the aid of such modern devices as foreign agents, b i l l s of exchange and cablegrams was no easy matter. The only certain means of safeguarding his interests open to the m i l l owner was to ship a trusted agent with each cargo; and that was too expensive a precaution for the early mill proprietor to undertake. The lack of trading f a c i l i t i e s spelled ruin for the early lumbermen, Ireland returned to mining, Van Bramer went his way but Moody stayed with the m i l l . He persuaded Hugh McLean to finance the continuation of the venture and recommenced operations, only to run slowly behind for two years.3^ Meanwhile the industry was being established on a stronger footing on the Alberni Canal. There, in the spring of 1857> Captain Edward Stamp, an employee of Anderson & Co., one of Great Britain's largest timber brokers, paid a v i s i t while his lumber schooner was being loaded with spars in a Puget Sound lumber port. The magnificent spar timber visible on every side excited his admiration, and upon his return in the autumn of that year to England, he brought this fact to the attention of his employers. The following year- he retired from 35 Ireland, Moses, op_. c i t . , p. 21. 3 6 JM*«it. cLKJ the sea to reside"'in V i c t o r i a * H i t a the outbreak of the C i v i l War i n i 8 6 0 , Anderson and Company grew anxious about the p o s s i b l e blockading of t h e i r source of supply i n the American Southwest and turned w i t h renewed Interest to Captain Stamp's r e v e l a t i o n s concerning the f i n e spar supply of Vancouver Island* In the spring of i860 Stamp was once again In the employ of Anderson and Company, t h i s time with orders to e x p l o i t the f o r e s t resources of the A l b e r n i area. For tl f i r s t time there was s u f f i c i e n t c a p i t a l a v a i l a b l e to allow a l o c a l m i l l to r i d e out the i n i t i a l storms of a d v e r s i t y , And the world-wide o f f i c e s of the London brokers constitute! an a d d i t i o n a l safeguard of the success of the undertaking. In the spring of i 8 6 0 , Stamp purchased the schooner Reporter, re-named her Meg M e r r l l i e s , and with two famous e a r l y timber c r u i s e r s , Jeremiah Rogers and John Walter, set o f f to explore what was destined to become one of the country's greatest lumbering centres*-"' I t i s i n t e r -esting to note that the two c r u i s e r s returned from, t h e i r i n i t i a l e x p l o r a t i o n of the canal with c o n f l i c t i n g accounts of the area's timber p o s s i b i l i t i e s : Walton's account was very i n d i f f e r e n t while Roger's was most favorable. 37 a a eta Tied account of Stamp's venture can be forawl In Dixon, L. Br, "The b i r t h of the lumber industry i n B r i t i s a Columbia", Forest and M i l l , (May, 1957), p. c. 21 Luckily Captain Stamp chose to accept the latters 1 evaluation. By summer Stamp had secured a timber concession from Governor Douglas, had armed the Meg Merrilies as a precaution against the Indians of the Alberni area and set out to transport provisions and equipment for the Alberni undertaking. Along with a number of labourers and Gilbert M. Sproat, the representative of Anderson & Co., Stamp set out in the autumn to erect the mi l l . On arriving at Alberni they found the bark Woodpecker had arrived from London, loaded with the necessary machinery. The Indians of the area proved as unco-operative as Stamp had expected. They camped on his mill site and moved off only after he ordered the two guns of the Meg Merrilies loaded and the schooner hauled broadside to the beach. The Woodpecker followed suit. Faced with the destruction of their houses, the Indians withdrew.3® Enjoying almost unlimited capital and able to rely upon commercial connections of one of the empire's best established timber brokers, the Alberni mill quickly established a considerable place for i t s e l f in Northwest 3 ® A colorful account of this i n i t i a l cruise is given in Western Canada Lumberman, vol. 5, (April, 1908), p. 17. 22 lumber circles. In 1862, for example, i t produced $119,917 worth of rough and dressed lumber and in the fallowing year i t shipped over a million feet of lumber 39 to the Victoria market alone. Although their London headquarters secured them orders from the French, Spanish, and Sardinian government dockyards, the Alberni mills depended largely upon over-seas orders from Valparaiso, Adelaide, the Sandwich 40 Islands, San Francisco, and Shanghai. The company quickly became a large factor i n the economic l i f e of the Province. At the height of production i t employed as many as seven hundred men in a l l its operations© The f i r s t indication of trouble at the mill was when Captain Stamp disagreed with the London owners after only eighteen months of operation and quit, leaving the property to be managed by Gilbert M. Sproat. Sproat's4"1 letters to the Colonial Secretary in Victoria show that even at the time he took over management he was very concerned about the future. On November 1, 39 J Macfie, Matthew, Vancouver Island and British Columbia. London, Longman, Green, Longman, Roberts, & Green, 1865, p. 135. 4 0 Brown, Robert, "Lumbering on the North Pacific Coast," in Countries of the World. (2 vols.), London, Cassel, Petter & Galpin, (1876?), vol. 1, p. 262. 4 1 For details of Sproat's endeavors i n the lumber trade, see: Rickard, T. E., "Gilbert Malcolm Sproat," British Columbia Historical Review, vol. 1, (January, 1937), pp. 21-32. 23 1864, he wrote a letter reviewing the situation. He declared that Stamp's decision to locate the sawmill at Alberni instead of on Puget Sound, which had been considered as an alternative location has proved disastrous to the owners, for there is no wood i n the d i s t r i c t to supply the wants of a large mill, and the business i s , i n fact, being earried on from an unwillingness to wind i t up u n t i l foreed, but without yielding any profit, and with the certainty of having to abandon the place at an early date, after having lost £50,000. He adds, The mi l l must have stopped had we not found that by making a dam we could get logs from a lake, on the sides of which we fortunately found some timber. With these we are now supplying the mill, and on their exhaustion we do not know where to look for more.4** Sproat, continued to explain his problem i n "securing enough logs, especially in a country so totally unsuitable for large sawmills as this Island." 4" 3 Following the end of the American C i v i l war in 1865, the bulk of the British trade i n timbers again reverted to Southern ports and operations at Alberni dwindled and f i n a l l y eame to a standstill. In the spring of 1869, the m i l l was destroyed by a forest f i r e . The machinery was sold to the Port Gamble M i l l Company for 4 2 Sproat to Colonial Secretary (November 1, 1864), Provincial Archives, Victoria. 43 roc-..cit. 24 $4,500 and was removed to their Puget Sound mill site, And so, on a note of temporary defeat, ended the f i r s t phase of the remarkable story of milling at Alberni. Meanwhile Captain Stamp, no longer interested i n the Alberni Canal mill, visited Burrard Inlet, where he found the ideal location for a shipping trade in lumber. He originally intended to establish his m i l l on the bight in the Harrows, the entrance to present-day Vancouver harbor. The strong current prevailing there changed his mind for him, however, and he selected a site a mile or two farther up Burrard Inlet. The change of location was advantageous in two wayss i t saved Stanley Park from becoming a settled area and i t f i n a l l y located the mill in the midst of fine timbers which for twenty years or more remained available in i t s vicinity. The changed decision, however, in no way saved Stanley Park from the axe of the loggers for Stamp established a camp there i n the spring of 1865 on a site now known as Lumberman's Arch, and there 1B a l l probability produced spars. Furthermore, Stamp enjoyed other business connections mad:e in a lifetime spent in the international lumber trade and on these he could readily draw. Orders began to pour in — more orders than his mill could conveniently handle. Stamp's new mill was a financially healthy concern, being registered i n London with a capital of £100,000."***" Most of that sum was supplied by two London firms — James Thomson & Company and Thomas Bilbe and Company, shipowners and shipbuilders. The smaller part was Stamp's interest. During the f i r s t five weeks of production, the company cut around 700,000 feet of lumber for the Australian colonies. And in the years which followed, the mill was shipping lumber to Java, Valparaiso, Honolulu, Shanghai, San Francisco, London and New Zealand,4! Stamp's immediate success on Burrard Inlet proved to be Sewell Moody's good fortune too, for Stamp allowed Moody's idle mill to f i l l the surplus orders that his own company could not handle. In five months the Moodyville M i l l made #40,000 — a f a i r l y large profit by the standards; of that e r a . 4 6 Moody soon found the capacity of his mill inadequate to supply the growing demand on i t for lumber from the 47 stirring settlements of the Pacific Basin. Capital was needed to expand i t . Now that the success of the pioneer 4 4 Flynn, J. E., Early lumbering on Burrard Inlet, 1862-1891, graduating essay, U.B.C., 1942. 4 5 For a complete account of the Hasting's M i l l , see: Mitchell, Harris, "Old Granville saw birth of British Columbia's most famous mill," Forest and Stream, vol. 3, )February 15, 1949), pp. 2-3. Ireland, Moses, loc. c i t . 4 7 See: "Moodyville," Vancouver News and Daily Advertiser, April 2, 1887, p. 1. 26 industry seemed assured, there was no end of capital offered him. Andrew Welch, his agent in San Francisco became a partner in the business and made $100,000 Aft available to his erstwhile client. Others taken into 49 partnership were Hugh Nelson, later Lieutenant-Governor of the Province, and William Dietz, a prominent local business man who had profited handsomely from the gold rush. With new capital, Moody undertook the construction of a steam-power m i l l i n the f a l l of 1867> which increased the firm's capacity to about 50,000 feet of lumber each twelve-hour day. 50 With Moody as acting manager and George Haynes' as foreman, the venture prospered. Unfortunately, about Christmas, 1873, the m i l l was destroyed by f i r e , but some of the machinery was saved. Re-construction was, however, immediately begun and the m i l l was again in running order by March, 1874, i t s capacity having been increased to 80,000 feet per day. By 1870 these two Burrard Inlet mills were exporting 4 8 See. "Moodyville," Vancouver News and Daily Advertiser. April 2, I887, p. 1. The name of Andrew Welch figures prominently in the history of the British Columbia's early basic industries. Welch was one of the f i r s t capitalists to recognize the potentialities of British Columbia's salmon canning industry and through Welch, Rithet & Co. of Victoria, went far to control i t 0 4 ^ Kerr, op_. c i t . , p. 265. 5 0 Ibid., p. 182. 2? a very considerable volume of f o r e s t products. In that year they sent to the United Kingdom 190,803 feet of rough lumber and 780 spars; to New South Wales 356,517 f e e t of rough lumber, 24 ,307 pickets and 88,000 l a t h s ; to V i c t o r i a ( A u s t r a l i a ) 1,605,040 feet of rough lumber and 15 spars; to China 1,507 > 537 feet of rough lumber, 73>700 l a t h , 15j000 p i c k e t s , 156,000 s h i n g l e s , 37 soars; to C h i l e 266,458 feet of rough lumber; to Mexico 377,489 f e e t of rough lumber, 65?941 feet of dressed lumber; to the Sandwich Islands 973,000 feet of rough lumber, 127,000 feet of dressed lumber, 635?000 shingles, 420 bundles of shooks; to Peru 2,150,222 f e e t of rough lumber and 1,116,327 f e e t of dressed lumber; and to T a h i t i 117,007 f e e t of ^  rough lumber and 33?634 f e e t of dressed lumber, along with 50,000 shingles.5 1 The vigor of Moody's salesmanship played a most important part In developing t h i s export lumber trade from Burrard I n l e t , which f o r twenty years a f t e r 1865 remained the only important exporting centre i n B r i t i s h Columbia, Ne was an energetic business leader who t r a v e l l e d constantly to the various markets, seeking to expand and promote the sales of h i s company. I t was while on such a t r i p to ran Francisco to arrange shin charters that he met his deaths The vessel- on which he was t r a v e l l i n g , the 3. 3, y Langevin, H. L., B r i t i s h Columbia. Rsoort 01 one Eon. 11. L. Langevln, Ottawa, 1872, Appendix Y, p. 150. 28 P a c i f i c , foundered o f f Cape F l a t t e r y and Moody f e l l overboard to h i s death.'' Hugh Nelson became manager of the. f i r m , a p o s i t i o n he held u n t i l he was appointed•senator i n 1 8 8 2 , O n January 1, 1879? the f i r m of Moody, DIetz and Nelson became the Moodyville Sawmill Company. Ownership of the new f i r m at that time Included Hugh Nelson, Andrew Welch, James Burns, manager of the Bank of B r i t i s h North America at V i c t o r i a , M. W. Tyrwhitt-Drake, Peter McQuade and Captain John I r v i n g . Under t h i s management the m i l l con-tinued to prosper f o r when i t was sold to the Moodyville Land and Sawmill Company i n 1891, I t commanded no less than $1 ,000,000. The new owners were the S a r i of C h e s t e r f i e l d , the Bar! of Durham, Colonel A, H. Lonsdale, the Hon, O l i v e r Montagu, and a Mr. Edmund Evan-Thomas. Included In the purchase p r i c e were 1,786 acres surrounding the m i l l w i t h I t s valuable waterfront frontage of three miles, and 31>44-3 acres of timber l i m i t s , 5 4 The m i l l might have continued to prosper f o r se v e r a l a d d i t i o n a l years before the supply of logs In the Immediate v i c i n i t y disappeared, but. the absentee owners had timed t h e i r purchase badly. The next s i x years were years of Woodwards-Reynolds, K. M., H i s t o r y of North Vancouver. M, A. t h e s i s , U.B.C, 1943, p. 14. y^ Flynn, James E., E a r l y lumbering on Burrard I n l e t , 1862-1891, graduating essay, U.B.C., A p r i l , 1942, p. 13. 54 The B r i t i s h Columbia Commercial Journal, v o l . 1, ( J u l y 7, 1891), p. 10. general depression and t h i s combined with unimaginative management forced the closure of the pioneer m i l l in. 1901, The i n i t i a l success of Welch 1s Investment i n the Woodyville m i l l encouraged other San Francisco c a p i t a l i s t s to i n v e s t i g a t e the Burrard I n l e t i n d u s t r y , In 1868, when Captain Stamp once again f e l l a f o u l of h i s London f i n a n c i a l backers, the San Francisco f i r m of Dickson, DeWolf and Company55 seized the opportunity of gaining c o n t r o l of h i s business. They changed the name of the f i r m to Hasting's Sawmill Company and r e t a i n e d Captain Raymur, one of Stamp's employees, as manager. When the Canadian P a c i f i c r a i l r o a d was extended to Vancouver i n 1886, the business was purchased by a Canadian syndicate headed by John Hendry. The property .at the time extended from C a r r a l l s t r e e t to False Creek, at the head of which the company owned twelve hundred acres of land, a l l covered w i t h timber. The Hastings Sawmill. Company, Limited, obtained the m i l l s i t e west of the r a i l r o a tracks and a l l the timber and logging camps. The year-to-year success of these two large-enterprises had the e f f e c t of making c a p i t a l a v a i l a b l e to other smaller lumbermen eager to e x p l o i t the forests of the area. In the f a l l of 1877, four DeBeck brothers, 55 M i t c h e l l , H a r r i s , oo. ciW., p. 2. 30 Howard, Warren, George and Clarence, who came from the lumbering province of New Brunswick, founded a f a i r l y substantial m i l l at the juncture of the Fraser and Brunette Rivers, near New Westminster. This mill, which carried on business for some years under the name of DeBeckBros,, was representative of the second-line mills of the period. Installed in one typical pioneer saw-mill building, the plant comprised one large circular saw, an edger and a trimmer, h twenty-five - hp., direct-action engine ran the large saw and a six-by-twelve engine actuated the edger and trimmer saws.^6 The partnership arrangement eventually became a joint stock company renamed the Brunette Saw Mills, Ltd.''7 Concurrent with the venture of the DeBeck brothers was the erection of the Dominion Saw Mill5® not far distant at the junction of the north and south arms of the Fraser River by the Webster brothers of Harrison River. The mill's wharf was 220 feet by 70, running out into a twenty-five-foot depth of water, which offered sufficient accomodation for any vessel that could enter the Fraser. The company operated two logging camps, one on the Pitt River and one on the Lillooet, a tributary of 56 Resources of British Columbia, vol. 1, (December 1, 1883), p. 31. 57 Pacific Coast Lumberman, vol. 5» (September, 1921), 5^ For a detailed description of this mill see: The Resources of British Columbia, vol. 1, (December 1883), p. 30. o-i-the P i t t . The force employed i n the camps was generally about twenty-six men and twelve yoke of oxen; and In the m i l l , from f i f t y to s i x t y men. The DeBeck venture prospered In i t s i n i t i a l year, showing a p r o f i t of s i x t e e n thousand d o l l a r s , but i n the second year the competition of the Dominion Saw M i l l made the undertaking considerably l e s s r e w a r d i n g . y The f i n a n c i a l hazards involved i n e s t a b l i s h i n g a m i l l i n a f r o n t i e r community have already been discussed; no l e s s r e a l were the p h y s i c a l d i f f i c u l t i e s , George DeBeck described some of them i n a l e t t e r to a f r i e n d years a f t e r he and h i s brother had b u i l t the Brunette H i l l : I went to V i c t o r i a and secured a block of land four acres f o r one hundred d o l l a r s , two other brothers, Howard and Clarence, went across the Gulf i n a row boat to Baynes Sound and bought a small m i l l on the Installment plan nothing down from George Haynes and George Cole of Moody-v i l l e . , , . The plant we had shipped to New Westminster and I n s t a l l e d i n the m i l l . The b i g saw would cut twenty eight inches. In order to cut b i g logs /_we7 would run the saw through the center, turn the log back and cut one quarter, turn back again and so on u n t i l the log was used up.... For the m i l l foundation we hauled with a windlass, big cedar logs and bedded /them/ up to form a f l o o r or bed f o r the m i l l proper. For a time we used the upper story f o r a cookhouse and l i v i n g quarters,... We also b u i l t a bridge across the Brunette, p r e v i o u s l y we went back and f o r t h on a l o g . 59 DeBeck to Xeary, J u l y 16, 1921, ^QO^Co^^sj^onMB^^ P r o v i n c i a l Archives. 32 Next We built a small wharf about sixty-feet long. In order to get r i d of slabs and edgings we started a slab wharf, not being allowed to put refuse i n the river. It was a great success in more ways than one. The summer freshet carried the wharf away. We didn't loose (sic) much and got ri d of our slabs i n a legitimate way to make room for another supply.... We had to devise some means of getting r i d of our surplus sawdust /and so/ we decided to build a refuse burner. We built one of sheet iron, ten feet diameter, and ten feet deep.... With a big f i r e the sheet iron got hot and gradually began to slump down.... The slip for hauling logs into the m i l l was constructed with five boom sticks from the bed of the mill down into the Brunette.... When an extra big log was coming up a l l other operations had to stop. There being no such thing as electric lighting those days we had to f a l l back on the original dog-fish o i l lamps.... We.had a lot of them about the m i l l . . . . 6 0 Despite such d i f f i c u l t i e s , by 1883 there were, besides those mills already mentioned, a score or more smaller undertakings deriving considerable profit from supplying the thriving salmon canneries with boxes, trays, floats and the materials with which to build the canneries themselves. Mills for this purpose were located at New Westminster, Georgetown, Metlakahtla, and on the Skeena and Naas rivers. On Vancouver Island there was established only one other m i l l which warrants special mention. In I863 Thomas G. Askew erected a small water-power mill at Chemainus at a cost of three thousand dollars. Finding diffic u l t y i n obtaining sufficient water for proper 60 G . W. DeBeck to Keary, July 16, 1931, Provincial Archives. 33 operation, he obtained permission to d i v e r t water from 61 nearby streams to supplement the power. In so doing he Incurred the enmity of other s e t t l e r s , a handicap which hampered the p r o j e c t f o r years. When he died, i n 1880, h i s dream of Chemalnus as a great lumber-producing centre remained u n f u l f i l l e d . His widow operated the m i l l u n t i l 1885, when she s o l d out to C r o f t and Severne, who produced, t i e s and lumber f o r the con s t r u c t i o n of the Esquimalt and Hanaimo R a i l r o a d . The work at these pioneer establishments consisted of two main d i v i s i o n s ; namely, procuring the timber from the woods, and c u t t i n g i t up i n t o planks at the m i l l s . The saw-mill owner o c c a s i o n a l l y undertook the work i n the woods on his own account, but more often contracted with a logger, who agreed to d e l i v e r logs i n t o the mill-pond close to the m i l l . Jeremiah Rogers, f o r example, logged the f o r e s t s of K i t s l l a n o , E n g l i s h Bay, and False Creek of present-day Vancouver f o r the Hastings M i l l , not as an employee but as an independent contractor.^3 i n a l i k e manner Jonathan M i l l e r , the f i r s t postmaster of Vancouver, logged of f Point Grey between 1865 and 1871$ ' a n d Angus Eraser (Feb.-Mar., 1956), p. 7. "The Indians c a l l e d i t Tzimminis," Earmac Mews, Loc, c i t . 34-cut 9,4-70,000 feet from eighty acres of land on English Bay in the year 1875, a l l of which he sold to the Hastings M i l l for export to Australia.^ & 6 6 Logging for a pioneer m i l l was a relatively simple undertaking. Having secured his claim to a portion of forest land bordering on the water, the logger proceeded to make a main road from the most densely-wooded part of the land to the waterside, usually to some small bay. At the waterside end of the road he constructed a slide of smooth logs down which the logs brought from the forest rolled into the water. Each logger, i t may be added, chipped his private mark on each log, so that i t could be at once recognized and claimed i f i t should go adrift. Booms were placed across to confine the logs until a sufficient number were obtained to form a boom for the mill. The logger then selected a suitable spot for his hut and built a hovel for the oxen he employed i n dragging the logs. About a dozen men might be engaged i n the various operations of clearing away the brushwood, felling the trees, and bucking them into the required lengths and for driving the team of oxen. A cook was employed to take charge of the house and stores and to cook for the party. Most of the loggers came from Eastern Canada, 65 Kerr, op_. c i t . , p. 170. 66 For an intimate account of early logging person-ali t i e s on Burrard Inlet see* Maclnnes, T., "Early days on Burrard Inlet," Western Lumberman, vol. 23, (August 26, 1926), pp. 30, 36. 35 where they had been used to the axe from boyhood. The fallers and the teamsters were the highest paid workers. They received from f i f t y to sixty dollars a month and their board. The others were only paid from thirty to forty dollars per month with food. When a camp was located so far distant from a mill that boards could not be obtained, the house was built of logs with moss stuffed between them and the roof was made of long splints of cedar. It was warm and water-tight. The inside was a large room with open sleeping bunks placed round. In the centre stood a wood f i r e , and above i t a wooden open chimney coming down through the roof like a vast extinguisher. In one corner of the room, stood an American iron cooking-stove, while benches and a long table at which the men ate completed the furniture. The running of a large mill — quite apart from the requirements of the logging camps — required from f i f t y to one hundred hands. They served in the capacity of engineers, firemen, log-haulers, gang-sawyers, circular-sawyers, cross-cutters, f i l e r s , blacksmiths, and lumber stackers,, Several of these occupations required special s k i l l , but many were open to the ordinary labourer. Consequently, the men at a mill were, on an average, scarcely equal to those in the logging camps5 more rough labourers were found among the people at the mill. The 36 married men at a ''sawmill l i v e d i n small wooden cottages, and a general store was u s u a l l y run i n conjunction with the m i l l to serve the needs of t h e i r f a m i l i e s . The unmarried men l i v e d i n one or two barracks or dormitories, and ate t h e i r three d a i l y meals i n a large messhouse attached to the company cookhouse. They worked from s i x to s i x , w i t h only h a l f an hour f o r dinner. The wages of the common labourers ranged from #25 to $4-5 a month w i t h board and lodging; and the s k i l l e d men received from $40 to §60 per month with board and l o d g i n g , ^ according to t h e i r p o s i t i o n . Much of the labor In sawmills, l i k e labor everywhere In the West In that era, was t r a n s i e n t . An unmarried laborer was l i k e l y to remain i n the employment of a m i l l anywhere from two to four weeks, a f t e r which he would draw his wages and move on. I t was not unusual f o r e a r l y m i l l s to operate on an extremely small margin of p r o f i t , some-times so small indeed that laborers had d i f f i c u l t y i n obtaining t h e i r wages. Sometimes they were a c t u a l l y forced to s t r i k e In order to force a harassed management to arrange another bank l o a n . ^ The m i l l s were generally driven by steam power, 67 , Sproat, G. M., B r i t i s h Columbia, Information,,.for Emigrants, London, Clowes, 1873"? p. 82. For an e n t e r t a i n i n g account of s o c i a l conditions m a New Westminster sawmill cjErc^a 1883, see: Roberts, Morley, The Western Avernus, London, ~§T C. Brown, Langham and Company, Limited, 1904, pp 0 161-180. 37 the refuse of the logs supplying an abundance of fuel. The sawn lumber was run out of the mill onto the wharf, and the ships 1 crews took i t into the vessels, which loaded "bow on" to the wharf.^9 The pioneer era i n the history of the lumber trade ended with the arrival of the railroad in 1886. For three decades the industry had faced the almost insurmount-able problems of a lack of capital and the absence of a near and steady market. The railroad was to remedy both of these conditions. It gave the Coast mills a market for their products i n the Northwest Territory and Manitoba at precisely the time when the American frontier was becoming a thing of the past. Both American farmers and American lumbermen were eager to take advantage of the opportunities for gain offered by the Canadian prairie land and the British Columbia forests. And the American lumbermen who were to arrive i n British Columbia after 1886 were to differ in one important respect from the Saywards, Moodys and Irelands — they came with inexhaustible amounts of capital. 6 ? Brown, Robert, "Lumbering on the North Pacific Coast," in Countries of the world (Vol. I), pp. 259-263, London, Cassel Petter & Galpin, (I876?). ' C?IAPTER_II AlfGRICAN INnDSTMSNT AWD THE PRAIRIE F&BEET (l883~lffl4) U n t i l the "building of the Canadian P a c i f i c R a i l r o a d through the Rockies i n the 1880's, the I n t e r i o r of B r i t i s h Columbia remained l a r g e l y undeveloped t e r r i t o r y , l a c k i n g roads and r a i l w a y s , and. possessing only a sparse population of hunters, miners, prospectors and Indians* Lumbering i n the I n t e r i o r , other than that which was c a r r i e d on during the period of the gold rush, dates back only to the commencement of the const r u c t i o n In B r i t i s h Columbia of the main l i n e of t h i s r ailway. The r a i l w a y created a large demand f o r lumber. I t s f i r s t s t r u c t u r e s , temporary i n large measure because they were b u i l t as cheaply as p o s s i b l e , c a l l e d far-great q u a n t i t i e s of t i e s and timbers. S t a t i o n houses and other b u i l d i n g s required other si z e s and grades. The f i r s t lumbermen i n the I n t e r i o r were contractors f o r bridges and other s t r u c t u r e s , who established sawmills at various points to cut timber i n advance of the a c t u a l t r a c k - l a y i n g . Their f i r s t m i l l s were small portable ones, but a l i t t l e l a t e r , as the track pushed ahead and the larger structures on the west slope of the Rockies and i n the Selkirk Range had to be provided for, better mills were erected and very large quantities of timber were cut for bridges, buildings, and the huge snowsheds round the summit of the S e l k i r k s . 7 0 They were usually small and simple plants. A circular saw cutting thirty thousand to forty thousand feet daily, an ox logging-outfit, or, later, one donkey engine and some kind of claim on one or two quarter sections of timber made up the typical venture. Immediately after the construction of the main line of the railway, a number of small portable mills were erected for the purpose of supplying lumber for loeal requirements. These mills were usually located in the most desirable timbered districts and in locations were lumber could be produced at the minimum cost.71 When the local requirements for the small towns that had sprung up owing to the construction of the railway had been supplied, the lumbermen were compelled to look for other markets. Their natural market was the Northwest Territories and Manitoba. In the sixteen-year period, 1897-1913? the tempo 70 Hrpke limbering Industry i n the mountains," Lumberman and Contractor, vol. 3, (October, 1906), pp. 55-56. 71 See the evidence of Peter Lund, pioneer Kootenay lumberman, given before the Commission of Enquiry into the lumber business in: Canada. Parliament, House of Commons, Journals, vol. XLII, (1906-07), pp. 339-341. 40 of settlement in the Prairie area was very rapid. Thousands of square miles of trackless lands were con-verted into farms and villages, and hamlets grew into c i t i e s . As population increased, thousands of miles of • new railroads were constructed and millions were spent on improvements by the old lines to take care of the 72 increased business.' The demands made upon the British Columbia industry by this growth were overwhelming, for this almost treeless region cut l i t t l e for i t s e l f . The f i r s t large sawmill on the Prairie was not erected until 1904.73 A large number of lumber distributing yards were located in- towns along the railroad lines. From Winnipeg, the centre of the wheat-growing region and the most important supply centre, no fewer than sixteen lumber yards 74 catered to the needs of thousands of farmers.' Concurrently the very active growth in British Columbia i t s e l f afforded another f a i r l y good market for lumber. The arrival of the railroad on Burrard Inlet in 1886 brought a new promise to the Coast. The l i t t l e town 7 For the story of the settlement of the Prairies i n this era, see: Hedges, J. B., Building the Canadian West. New York, The Macmillan Company, 1939, pp. 126-168; and Morton, A. S., History of Prairie Settlement. Toronto, The Macmillan Company, 1938. ~ 7 3 Columbia River and Oregon Timberman. vol. 5» (December, 1903), p. 9. 74 Western Lumberman, vol. 9, (August, 1912), p. 42. of Granville mushroomed into the bustling city of Vancouver almost overnight; and the already established larger centers of New Westminster and Victoria too f e l t the impact of the quickening of the industrial tempo. While many of the more substantial structures erected in these larger centres were of brick and stone, the smaller were of frame construction; and virtually a l l houses were frame. This rapid development of Western Canada in this period did not go unnoticed in American lumbering circles. Wealthy lumbermen, men whose fortunes were largely based on profits made i n the C i v i l War of 1860-1865 and from catering to the enormous demand for lumber from the settlers who f i l l e d the American West in the era after that war, began to notice the Coastal forests with interest Between i860 and 1905, these lumbermen had swept across Michigan, Wisconsin, and Minnesota slashing down the vast pine forest, until by 1905 a l l that remained were small fragments of the original stands and hundreds of miles of stumps. They gave l i t t l e thought to conservation and were prodigal of timber i n the woods and mills, while they allowed f i r e to run through hundreds of miles of virgin forests. By 1910 their holdings were so depleted that the centre of the lumber industry shifted to the West Coast.<7 Many of these newly rich lumber magnates of St. Paul, Minneapolis, and Saginaw turned their interest and their capital to the already established industry of Puget Sound and Oregon; others looked farther north to the comparatively virgin stands of British Columbia, now made exploitable by the building of the railroad which connected the forests of the Coast province 76 with a growing Prairie market.' That these untouched stands were the last great tracts of coniferous timber in the world was at last realized by American lumbermen and they rushed to make their claims. Between 1890 and 1910, and especially between 190? and 1910, they cruised almost every good available area in the province and in one way or another brought under their control almost every piece of timber which they thought might eventually prove profitable. A further stimulus to their investment in Coast forests was afforded by the widespread expectation that stumpage values would advance at least two dollars a thousand feet upon completion of the Panama Canal. 7 7 75 Lumberman and Contractor, vol. 4, (June, 1907), p. 45. This remarkable story of depradation is told in greater detail in Fries, R. F., Empire in Pine: the story of lumbering i n Wisconsin, 1830-1900, Madison, State Historical Society of Wisconsin, 1951* 76 Lumberman and Contractor, vol. 4, (June, 1907), p. 77 Brown, Nelson C., The American Lumber Industry, New York, J. Wiley & Sons Inc., 1923, p. 160. 43 The f i r s t area in the Province to receive the permanent attention of Mid-west operators was the East Kootenay region, chosen because i t lay closest to the lucrative prairie market. In fact, i t received such close attention from American millmen with their vigorously applied policy of indiscriminate cutting that i t lasted a scant fifteen years as a primary producer of lumber. Around Fernie, the principal town of the region, were many fine stands of merchantable timber which supported a short-lived but 78 reasonably large lumber industry.' The f i r s t mill to exploit the stands, however, was not American-owned. It was built by the Canadian Pacific Railroad at Coal Creek in 1899. It was a sub-stantial structure of 60 feet by 310 feet with an adjoining 79 shingle mill and a boiler building of ample capacity. Five years later the Elk Lumber and Manufacturing Company, controlled by 0. A. Robertson and F. B. Lynch, 80 both of St. Paul, Minnesota, erected a $75,000 m i l l . In 1907, which was probably the peak year for the industry in that d i s t r i c t , this one firm cut twenty-five million feet of lumber. 78 For a detailed presentation of the rise and decline of the industry i n the Fernie region see: Mercer, W. M., Growth Of ghost towns. Victoria^ B. C., King's Printer, 1944, pp. 18-35. 79 West Coast and Puget Sound Lumberman, vol. 10, (May, 1899, p. 340. 80 British Columbia Lumberman, vol. 1, (October, 1904), p. 3. The l i s t of once-prosperous communities, esta-blished between 1900 and 1910, which depended for their existence upon the forest resources of the Fernle district and which became ghost towns as the result of the rapid depletion of the forest is a formidable one. Baynes Lake was the location of the 75,000-foot-per-day mill of the Adolph Lumber Company and the home of 250 persons. By 1923 timber was no longer accessible and the m ill was forced to close. Two mills were located i n Waldo, the Baker Lumber Company and the Ross-Saskatoon Company, each of which cut approximately 75,000 feet per day. It is said that they competed with each other for the larger cut, and that this competition led to a worse than average waste of forest resources. 8 1 Waldo was a rather large and complete community. With bunk houses, mess halls and many homes, i t contained a population of five hundred to seven hundred persons. Its l i f e was longer than that of most lumber towns of the area: when the Ross-Saskatoon Company operated until 1923, and the Baker Lumber Company until 1929, when forest depletion decreed their closure. The combined capacity of the two mills was obviously too great for the forest resources of the area, and i t was said that neither Mercer, op_. c i t . , p. 23. 45 company earned a profit over the period of operation. Today Waldo is the centre of a small farming community. A l l that remain of the town are two small stores, a school, a rather dilapidated hotel, and empty houses. Elko was once the location of a 50,000-foot-per-day sawmill. Rough lumber was shipped there from distant points for finishing. The city was the gateway to and a secondary distributing centre for the south country, to which the forest industry moved after the area i n the immediate vicinity of Fernie became logged-off. The town reached Its peak of prosperity in 1912 when the population numbered five hundred. Elko in turn died in the mid '20's, as the south country became logged off and as lumbering operations closed down for lack of accessible timber. Elko was a ghost town even before i t was almost completely destroyed by f i r e in 1931. It was not rebuilt and today go there is nothing l e f t . Flagstone with i t s 25,000 -foot-per-day mill and Ministee with i t s 50,000-foot-per-day mill and population of five hundred both disappeared during the F i r s t World War83. Hanbury followed with i t s 50,000-foot mill i n 1920. 8 2 Mercer, op_. c i t . , p. 21. 8 3 SbCvcit. 46 Fernie lost i t s boomtime atmosphere as the centre of logging and sawmill activity thus moved farther away to the south country. However, since i t was the distributing centre for a large area, i t did retain a good share of the business arising from forest activity. By 1920 the whole of the Fernie area together could not maintain the cut which was formerly maintained in a relatively small radius about the city, and the industry which had supported fifteen hundred lumber workers around Fernie alone in 1914, employed fewer than one hundred i n 1940.^ Almost the total annual output of the mills of Fernie and vicinity was shipped to Prairie points, a relatively small amount being kept for local use and for the rebuilding of Fernie after the f i r e of 1908. The story of the Cranbrook area was in many respects similar to that of Fernie. Like Fernie, i t could trace much of its i n i t i a l growth to the coming of the lumberman. In 1897 Archibald Leitch, an American lumberman of wide experience, built a small mill there. He soon found it s capacity taxed to the utmost to meet the ever-increasing demand of the Prairies for the lumber of the practically virgin forest of which he held a large and well-timbered area in close proximity to the saw mill. 85 Mercer, op_. c i t . , pp. 27-28. 47 In 1902, the pressure of business forced him to purchase additional mills, with their timber holdings at nearby R6 Moyie and Jaffray. In 1904 he erected another at Ryan, thirty-five miles west of Cranbrook, and yet another at Loco, about six miles out of Cranbrook, to clear up the timber remaining in that d i s t r i c t . At Perry Creek, Otis Staples of Stillwater, Minnesota, established a $250,000 mill and procured 200,000,000 feet of timber. At the same time he bought 87 the nearby Marysville Lumber Company. ' As the area i n the immediate vicinity of Cranbrook became logged-off, i t was necessary for these operators to move farther back Into the woods. Consequently, small towns grew up near the scene of operations, usually when the cut exceeded f i f t y thousand feet a day in the locality. Wardner, which reached its heyday during the mid-20's, was the site of the l?0,000-foot-per-day mill of the Crow's Nest Pass Lumber Company which was established just after the turn of the century by Peter Lund, a Canadian lumberman.88 This community, which was in many 8 6 Western Lumberman, vol. 8, (February, 1911), p. 24. 8 7 Columbia River and Oregon Timberman. vol. 6, (November, 1904), p. 32B. 8 8 Ibid., vol. 6, (April, 1904), p. 28. 48 respects representative of dozens of others in the Interior region, consisted of two hotels and beer parlors, two general stores, two garages, a postoffice, police station, church, restaurant and homes for the residents. By 1933 a l l accessible timber had been cut and only a small planer m i l l remained of its once-considerable Industry.®9 Kitchener, the location of two mills, cut some 180,000 feet of lumber per day until the late 20*s, when the forests of the area began to show signs of severe depletion. The mills closed in 1926 and 1930. The l i s t of once great lumber centres is almost endless: Jaffray, about thirty miles southeast of Cranbrook, 9 0 had two mills and a population of two hundred; at Bull River, 9 1 the Canadian Pacific Railway cut 75,000 feet daily; at Wycliffe, 9 2 a community which disappeared along with the depletion of the forest reserves in 1927, cut 100,000 feet daily; Yahk, with a population of 450 residents at its zenith, continued to cut ties for the 93 Canadian Pacific Railroad until 1928. 7 0 Again, almost the total output of these mills was shipped to the Prairie 89 Hercer, op., c i t . , p. 5» 90 ibid.t p. 4. 91 Loc. c i t . 92 Loc. c i t . 9 3 Ibid., p. 5. region. \ The stimulus of railroad building and Prairie settlement was f e l t no less in the Big Bend region. At Revelstoke, Dan Robinson established the f i r s t mill in 1 8 9 0 , a n d along with R. Howson, erected another, the Harbor Lumber Company, in 1901. Both mills were sold i n 1905 to S. H. Bowman, an American with a lumber empire of sixty mills and r e t a i l operations stretching from Louisiana to Snohomish. The American lumberman organized the Bowman Lumber Company with a capital of one million dollars and through i t he purchased the Empire Lumber Company, taking over i t s mills at Revelstoke and Comoplex. He then obtained control of timber limits on the Columbia River, Adams River and Fish Creek, and the steamboat business on the North Arm. Altogether this lumber empire was valued at close to three million dollars Theodore Ludgate, a Seattle businessman, built the Big Bend Lumber Company, the pioneer mill at Arrowhead, in 1903,96 while at nearby Trout Lake the Canadian Timber and Sawmills Limited, an English company, erected a 75,000 97 foot-per-day m i l l . 94 Bilsland, W. W., A History of Revelstoke and the Big Bend, M. A. thesis, U.B.C., (April, 1955),~p. 96. 95 Columbia River and Oregon Timberman, vol. 6, (March, 1904), p. 6. 9 6 Ibid., vol. 6, (April, 1904), p. 28. 97 ibid., vol. 5, (December, 1903), p. 9. 50 At Three Valley, near Revelstoke, E. P. Munday of Bradford, Pennsylvania, established the Mundy Lumber Company, which must have developed into a prosperous undertaking indeed, for when i t was sold in 1907 its mill and limits commanded a price of over one million dollars.^8 In 1910, British Columbia millmen acquired i t along with the extensive holdings of the nearby Eagle Valley Lumber Company and organized the Munday-Eritish Columbia Lumber Company. Magnificent limits were acquired from the Department of the Interior in 1904,^9 and a new company was organized with a capital of five million dollars. In Nakusp, Peter Genelle erected a mill in 1892, near the Canadian Pacific shipyard. 1 0 0 It burned down in 1906, but shortly afterward the Quance Lumber Company built a larger one which operated on the present site of the B e l l Pole Company yard. The mill was eventually sold to Victor Carlson, who formed a company known as Arrow Lakes Sawmills Ltd. In 1898, Genelle also built the f i r s t mill of any account at Nelson, which he named the Genelle Lumber Company. Its establishment was based on a contract to supply fourteen million feet of lumber for construction 9 8 West Coast Lumberman, vol. 18, (May, 1907), p. 595-99 Western Lumberman, vol. 7, (July, 1910), p. 19. 100 British Columbia Lumberman, vol. 38, (January, 1954), p. 72. 51 of the Robson-Pentieton branch of the Canadian Pacific Railway. 1 0 1 Shortly thereafter, three additional mills were established at Nelson, Robson, and Cascade. S. H. Bowman, the St. Louis lumberman already mentioned in conjunction with mills at Revelstoke and Comoplix, gained control of them in 1906, thereby making their proprietor one of the most powerful voices in the Kootenay industry. 1 0 2 By 1910, this firm, The Yale Columbia Lumber Company, Limited, had become one of the big lumbering concerns of the country. The total capacity of its mills were 200,000 feet per day, and during the year the output from i t s three mills was 25,000,000 feet. The company's total investment i n mills amounted to $200,000and in limits to $500,000. The number of men employed at the various mills and in the yards was about 250, and the number in the woods every winter was 300. The limits held comprised f i f t y thousand acres i n East and West Kootenay, covered 103 with cedar, larch, f i r , white pine, spruce and hemlock. G. 0. Buchanan, a lumberman of United Empire stock, established the f i r s t sawmill at Kaslo in l 887o 1 0 4 In fact, he may be said to have founded Kaslo as most of the 1 0 1 West Coast and Puget Sound Lumberman, vol. 9, (August, 1898), p. 4 0 1 . ~ ~ — 102 West Coast Lumberman, vol. 18, (October, 1906), P. 31. 1 0 3 Ibid., vol.21, (May, 1910), p. 43. 1 0 4 British Columbia Lumberman, vol. 14, (January, 1930), P. 17. 52 lumber with which the town was built was cut at his mill. This operation failed after the turn of the century and remained idle until 1905 when the city gave a $5000 reward to W. 1. Cooke, the mayor of Harvey, North Dakota, for purchasing i t and thereby giving employment to seventy-five citizens. In 1897 Thomas Alton built a mill at Parson, near Golden, which he operated until 194-3, when he sold i t to Cranbrook Sawmills L i m i t e d . s e v e n years later, the Francis Brown syndicate of Marion, Wisconsin, built the second m i l l In the area in order to make lumber of its extensive limits on nearby Blueberry River. At Grand Forks, J. F. Linburg of Minneapolis and St. Paul purchased ten thousand acres of timber in order to manufacture cedar poles for the American Midwest market. Farther west, in the Okanagan, and north of that, in the Shuswap country, millmen set up portable mills to cut the virgin timbers in an attempt less to appease the appetite of the Prairie market, than to satisfy the rapidly increasing number of settlers in the dry belt surrounding Okanogan Lake. In 1894, C. S. Smith of Vernon erected the f i r s t mill i n Enderby. After passing through several hands i t 1 0 5 British Columbia Lumberman, vol. 34, (September, 1950), p. lOT. ~~ 1 0 6 West Coast Lumberman, vol. 19, (June, 1907), p. 669. 53 came inevitably into the possession of an American operator, the A. K. Rogers Lumber Company of Minneapolis in 1 9 0 5 . 1 0 7 As the f r u i t industry of the Okanagan became well established i t used up to four hundred cars of box shooks in the season, and to provide for this large amount of business three more local box factories were 109 established: Young and Martin, at Armstrong! and two portable mills which were established in the Lumby Valley, in May, 1904, one by N. Bessette, and the other by 110 G. Riesweig. The Adams River Company of Chase, was representative of the larger permanent establishments in the area. This mill had a capacity of between 175,000 and 219,000 feet a ten-hour shift. The operation's planing mill consisted of three planers and matchers, double surfacer, planer and sizer, inside moulder, self-feed resaw, circular resaw, and a band resaw. M i l l refuse was burned in a Muskegon burner which stood 124 feet high, and had an inside diameter of twenty-nine feet. Shavings were delivered to 1°7 Ormsby, M., A study of the Okanagan valley of British Columbia, M. A. thesis, University of British Columbia, p. 137. 1 0 8 Western Lumberman, vol. 18, (June, 1921), p. 33. 1 0 9 British Columbia Lumberman, vol. 1, (May, 1904), p. 4. 1 1 0 Eoc-.cit. 54 the burner by a complete blower system by means of two 111 double seventy-foot fans. In 1912 the company con-structed eleven miles of water flume on timber limits near the m i l l . This was said to be the longest and largest i n Canada, and amongst the largest in the world. It was claimed that logs of four to five feet in diameter at the butt passed down this chute at expresslike speeds. Timber holdings of the company in 1912 amounted to an estimated six hundred million feet of pine, f i r , cedar and spruce, covering a forty-three-square-mile area on the Adams 112 River. Similar mills could be found elsewhere throughout the areas the Lamb Watson Lumber Co., which later became the Arrow Lake Lumber Co. Ltd., operated just west of Kamloops, cutting 250,000 feet a shift. Its holdings included nine hundred square miles on Shuswap Lake and also a mill at Enderby, with a cutting capacity of 175,000 feet a s h i f t . 1 1 3 Nor was the Northern Interior ignored. Timber eruisers were working farther and farther to the north a l l the time. Following the announcement of the construction of the Grand Trunk Pacific Railway across British Columbia 111 MRegional report, Southern Interior: Can they lick the marketing problem?" The Truck Logger, (April, 1954), vol. 7, P. 39. 1 1 2 Ioc ..ait* 55 from the Rockies to the Coast, came hundreds of applications for timber situated in districts to be traversed by the railway. The valleys of the Upper Fraser River, the Endaco, the Nechaco, the Buckley and the Skeena Rivers, witnessed the posted notices of the timber cruisers, and they dotted the shores of a l l the other rivers and lake, large and small, which would gain aceess to the outside world when the new Canadian transcontinental railway was completed. 1 1 4 Around present-day Prince Rupert, a number of sawmills sprang up between 1908 and 1914, a l l of them owing their existence to the construction of the Grand Trunk Pacific and to the founding of Prince Rupert i t s e l f . Representative of these mills was one built on the Skeena River, not far from its mouth, by W. H. Phelps, of Seattle and E. F. Mitchell, of Vancouver. It had a capacity of f i f t y thousand feet and produced a considerable number of 115 shingles besides. ' American investors poured many millions into the purchase of the forest lands of the area in the expect-ation that the boom conditions of the Southern Interior could be repeated in the North. Some operations were 1 1 4 Lumberman and contractor, vol. 4, (June, 190?), p. 45. 1 1 5 West Coast Lumberman, vol. 19, (July, 1908), p. 690. 56 comparatively small, like that of James M. Anderson, who remembered the Caribou timber he had seen in his gold-seeking days and returned to make twenty-five claims on the Willow R i v e r , 1 1 6 Others were large, like that of Herman J. Rossi, of Wallace, Idaho, one of the most prominent capitalists in the American Northwest, He headed a syndicate to secure control of some large blocks of land in the Grand Trunk Pacific belt, the handsome returns from which, encouraged the principals to acquire an additional seventy thousand acres in Central British Columbia. The lumbering, mining and agricultural riches of this region were to be developed at the cost of a large i n i t i a l outlay. He laid plans to build a new town — Fraser City — near the present-day Prince George. It was expected to be the hub of railroads joining the Grand Trunk to the Peace River country, while another was to join Fraser City with B a r k e r v i l l e . 1 1 7 The collapse of the boom in 1913, spelled defeat for Rossi's scheme, and the Prince George area was to wait more than thirty years before the value of Its resources was again f u l l y recognized. ^/ In the meantime, millmen continued to erect small and i l l - f a t e d mills along the railroad between Prince Rupert and Prince George. Between 1910 and 1922, no fewer Vi, _ — _ — —______ 1 1 6 Timberman, vol. 9, (July, 1917), p. 61. 1 1 7 Western Lumberman, vol. 7, (April, 1910), p. 15. 57 than twenty such saw mills operated between Prince Rupert and Smithers. Although situated in the heart of one of the richest timber belts in British Columbia, a l l of them closed down one after another. Even such large and well equipped plants as the Kleanza Company at Usk, the Kitsumkalum Company at Remo, and the Prince Rupert mills f e l l i d le. In 1922, the only saw mi l l i n operation on the line of the Canadian National Railways between Prince Rupert and Prince George was the 35,000-foot mill at Terrace. 1 1 8 Logging in the Interior presented certain problems peculiar to the area, which rendered the undertaking strenuous, expensive and d i f f i c u l t . Road construction alone in the mountainous country was a large item of expense, and, as the timber was cut or burned tributary to the railway and the mills, the logging operations had to be moved back into the mountain districts, where the cost of operation was more than double. These conditions compared unfavorably with those the Coast where 10,000 to 500,000 feet of lumber were cut from an acre of forest land and where logs which measured under twelve inches at the small end were not utilized. In order to obtain an adequate supply, many of the mountain mills utilized timber that Coast lumbermen considered uneconomic and 1 1 8 West Coast Lumberman, vol. 40, (March 15, 1922), p. 21. 58 and l e f t in the woods to decay or to he consumed by bush f i r e s . 1 1 9 In addition, the Interior operator fought a sporadic battle with the railroads for cars in which to transport his product to Prairie points. In 1907, for example, the railroad, always reluctant to haul empty cars from distant Prairie points into the mountains, 120 supplied only about sixty percent of the number required. Then there were the problems of labor and supplies. Many of the loggers and sawmill hands in the Interior districts were sons of Prairie farmers and sought employ-ment only for the winter months. These part-time loggers l e f t a distinct gap in the industry when they departed for their Prairie homes in the spring. In addition, i t was not always easy to convince professional loggers to remain long In isolated mountain settlements as long as employment possibilities remained favorable in the larger Coastal towns. In 1910, for example, so acute was the labor problem in the Interior that the Boss-Saskatoon Lumber Company of Waldo decided to follow the example set by the Fraser River Lumber Company and to despatch an agent East to hire a 1 1 9 Western Lumberman, vol. 8, (January, 1911), p. 29. 1 2 0 West Coast Lumberman, vol. 18, (April, 1907)> p. 529. 59 gang of expert French-Canadian millmen along the Ottawa R i v e r . T h e Kootenay Shingle M i l l at Salmo attempted to solve the problem of labor supply in i t s mill by importing Oriental labor from the Coast. This Importation was the occasion of an aggressive demonstration by the white workers, who forced the Chinese to cease working. A posse of provincial police was required to guard the m i l l . 1 2 2 With these handicaps i n mind, and with the natural eagerness of business men to obtain for their product as much as the t r a f f i c would bear, some Interior lumbermen sought to combine and to thereby control the prices that Prairie settlers would be obliged to pay for lumber. To this end certain lumber mills i n the East Kootenay along the Crow's lest Division of the Canadian Pacific formed into combination with a capital of #500,000. The mills concerned were those of Archibald Leitch, at Cranbrook and Palmer's Bar, Leask and Slater at Cranbrook, King Mercantile at Cranbrook, and the McNab Lumber Company at Jaffray. The association secured many concessions from the Canadian Pacific Railways, among others the right to cut timber on the railroad reserves. The Canadian Pacific also contracted for eight million feet of lumber, and a l l the ties required for the Kootenay section of one thousand miles of road. 121 Western Lumberman, vol. 7, (July, 1910), p. 20. 122 Timberman, vol. 7, (May, 1905), p. 43. 60 In 1902 the millmen of the whole Interior organized as the Mountain Lumberman's Association, to take steps for their collective benefit. An association of the lumber retailers of Manitoba and the Northwest Territories, the Western Retail Lumbermen's Association was formed with headquarters at Winnipeg. One of the objects of this association was to prevent dealers or lumber yards from being established at Prairie points, where, in their opinion, there was insufficient business to justify them and to confine the r e t a i l trade, i f possible, to the members of the Association. The lumber manufacturers of British Columbia and also those of the district east and north of Winnipeg, were admitted to the association as honorary members, and as such were expected to confine their sales to members of the Western Retail Lumbermen's Association. This was, i n effect, an attempt to create a stranglehold on the distribution of lumber throughout Western Canada. The Canadian Pacific Railway, with its vested interest i n f i l l i n g the great Prairie spaces as rapidly as possible, vigorously opposed what i t considered the exorbitant prices fixed by the lumbermen and the r e t a i l lumber yards. The railroad requested the lumbermen to reduce their prices, but the lumbermen responded by raising them. Along the lines of the railway, the country was being rapidly settled. Houses and barns 61 were heeded, but the immigrants were far from wealthy. The railway was largely responsible for the settlers being there; and most of the settlers had settled on lands belonging to the Canadian Pacific. The railway therefore f e l t a moral responsibility to assist and protect them from what was considered the outrageous demands of the lumber yards. An even stronger compulsion was the railroad's determination to oppose any move which threatened to slow down their costly program of Prairie settlement. Lower lumber prices were necessary to ensure the success of settlement and the railroad set out to obtain them. Finding the dealers and lumber men reluctant to co-operate, the railroad threatened to build i t s own mills in its extensive forest holdings in British Columbia. The Canadian Pacific made i t plain that i t would be reluctant to institute this measure, but i t was determined to have cheap lumber for i t s settlers even i f i t had to resort to such an unusual method.!23 In addition, Prairie newspapers and boards of trade bombarded the Dominion Government with demands for an investigation of the situation. On June 23, 1903, the Hon. W. S. Fielding, Minister of Finance appointed Mr. Justice Richards of the Province of Manitoba to carry out an enquiry into the alleged existence of a lumber combine. On February 26, 1904, the commissioner returned his commission and requested to be relieved from further acting under i t . The commissioner had duly advertised his sittings but no British Columbia Lumberman, vol. 1, (March, 1904), p. 3. 62 evidence had been' tendered in the matter. Despite i t s failure to fight i t s case before the commission, the railroad appeared confident of its case against the lumbermen. It posted l i s t s of f a i r prices for lumber on a l l its Prairie railway platforms i n an effort to acquaint its settlers with prices they should be prepared to pay. These l i s t s were often torn down, a practice against which the Canadian Pacific threatened 125 prosecution. The lumbermen of British Columbia were sufficiently impressed by the firm stand of the railroad company to withdraw from membership in the Western Retail Lumber ^ Dealers' Association. Their action did not mean, however, that they were blind to the advantages of close co-operation or that they had admitted defeat. In 1905, at a meeting held in Revelstoke, they decided to form an association confined s t r i c t l y to the manufacturers of lumber in the Interior of B. C. "for the purpose of placing the industry on a more satisfactory basis." At this meeting, George P. Wells, a veteran lumberman who had been Chief Commissioner of Lands and Works in the Prior and Dunsmuir 1 2 4 Canada, Parliament, House of Commons, Debates, 1904, vol. I, p. 558. 1 2 5 West Coast and Pueet Sound Lumberman* vol. 15, (July, 1904), p. 675. 63 administrations, was appointed to take charge of the association as secretary and treasurer. A new l i s t governing the selling price of lumber was agreed upon by the new members of the Mountain Lumber Manufacturers1 Association of British Columbia. 1 26 They then proceeded to establish r e t a i l yards of their own throughout the 127 Prairies. In 1906 Breckenridge and Lund established one yard at Calgary and John Banbury opened several throughout Manitoba under the name of Manitoba Hardware and Lumber Company. The Rogers Lumber Company of Minneapolis purchased the Kamloops Lumber Company for 1750,000 and promptly opened twelve lumber yards i n Manitoba, Alberta and Saskatchewan. Many other millmen followed suit. Peter Lund, of the Crow's Nest Pass Lumber Company, and President of the Association, expressed satisfaction with the new arrangements: From this time on, the wholesale prices of lumber became more stable. The assoc-iation assisted the smaller mills in marketing their product at the same price that was realized by the larger manufacturer; in other words, the mills were no longer dictated to by the r e t a i l trade, whether large or small. The price asked by the manufacturer at the time Lumberman and Contractor, vol. 4, (May, 1907), 1 2 7 ffest Cpa.siL.Lupbe.rman, vol. 16, (February, 1905), p. 29dF• 1 2 8 Ibid., vol. 17, (May, 1906), p. 597. 64 was considered satisfactory, and in the opinion of the association, or members thereof, was sufficient to allow them a reasonable profit on their business, 1 2 9 For a l l its great prosperity, the Interior lumber industry i n this period remained in a highly vulnerable position. Its prosperity depended almost entirely upon the continuation of Prairie demand and the appetite of the railroad builders, and with the disappearance of these demands, the raison d'etre of the Interior mills would largely disappear too. By 1913j Prairie demand was declining rapidly, and in the following year i t almost ceased. The effect on the Interior industry was disastrous. It could compete with the Coast Industry in neither the dwindling home market nor in the export trade. Its decline was on the whole precipitous, although certain mills, particularly favored by circumstances, continued to produce in a healthy way until the early 'twenties when they too began to close down. lot until the 1940's and the rise of cellulose forestry would the industry of the Interior be revived. The Coast region also responded readily to the demands of the railroads and Prairie settlement. In fact, so profitable did the Coast operators find the Prairie 1 2 9 Lumberman and Contractor, vol. 4, (May, 1907), p. 28. market that after 1900 they paid less and less attention to their waterborne trade. Each year the volume of exports from British Columbia diminished as Puget Sound millmen, always eager to satisfy export markets, took over British Columbia's old-established markets in Australia and the United Kingdom. With the f i r s t demand of the railroad builders, mills were established in the vicinity of the terminal of the Canadian Pacific Railroad, in the area around present-day Vancouver and New Westminster. The Lower Mainland area was the logical point from which to ship by r a i l or by sea and at which to receive supplies; i t offered an already established labor force; and i t constituted a well sheltered shipping point to which log could be cheaply towed from any source of supply within a two. hundred-mile radius. Among the f i r s t of the new operators to recognize the significance of these circumstances were John lendry Andrew McNair, Andrew Haslam, and R. B. Kelly, who joined forces i n I878 to build a small sawmill and sash and door factory at New Westminster, and because the salmon canning on the Fraser River was becoming more important each year, they added a box factory. In 1880, finding i t necessary to become incorporated in order to own real estate, they organized the Royal City Planing M i l l s . • L J U When Vancouver came into existence, they established a branch there, and after the f i r e of 1886 their mill was one of the few buildings l e f t standing. A l l the while the company acquired timber limits, securing some of the best i n the province. They had hitherto carried on a purely local business, but they now determined to begin an export trade. Owing to the di f f i c u l t i e s of navigation at the mouth of the Fraser River and the lack of a reliable chart, lumber ships were chary about going up the river. The company, however, in conjunction with the Board of Trade, of which Hendry was president, succeeded fi n a l l y in inducing the government to survey and improve the mouth of the river. By 1888 foreign ships could be seen loading at TM. his mill for many parts of the world. Because many ships s t i l l refused to enter the river, however, Hendry decided to establish himself on Burrard Inlet. In 1889, he purchased the Hastings Saw M i l l for the purpose of increasing the company's export trade, and the two companies then merged to become the British Columbia Mills, Timber and Trading Company, with John Hendry as president. From its establishment in 1878, the business grew from a local trade of seven thousand feet per day to a foreign and local trade of 250,000 1 3 0 Resources of British Columbia, vol. 1, (December 1, 1883), p. 31. " 1 3 1 Kerr, J. B., Biographical dictionary of well-known British Columbians, Vancouver, B. C , Kerr and Begg, 1890, p. 188. 67 feet per day in 1890. Although the cargo trade of this firm was large, the Hastings M i l l depended very consider-ably upon the Prairie market in later years. This is evidenced by the fact that the mill closed down for several weeks in 1904 and the reason advanced was the temporary slump in Prairie demand. Hendry acquired large property interests in Vancouver, New Westminster and the Kootenay country. In 1894 he formed a company which acquired a local charter for a railroad from Vancouver north and extending east through the Cascade range, touching at Squamish, Lillooet, Anderson Lake, and extending on to the Cariboo country. It proved, however, to be too early for this would-be precursor of the Pacific Great Eastern and the project lapsed. 1 3 2 Hendry died in Vancouver on July 17, 1916. His vast business was l e f t in the hands of his son-in-law, E. W. Hamber, of the Dominion Bank, who later became Lieutenant-Governor of British Columbia. 1 3 3 In 1886, the year of Vancouver's incorporation and the year i n which the railroad arrived on Burrard Inlet, James Leamy and George Kyle joined the half dozen 1 3 2 Lumberman and Contractor, vol. 2, (June, 1905)» p. 20. 1 3 3 For a detailed account of Hendry see: Canadian Forestry Journal, vol. 12, (August, 1916), p. 672. 68 mills already established and eager to cut for the Prairie market. They located their mill on the south side of False Creek at the foot of Cambie Street, where they sometimes cut up to f i f t y thousand feet daily. Two years later the Fader brothers built the second mill on False Creek, which they seem to have operated in a sporadic fashion,for in 1889 i t cut only 500,000 feet. In 1890, H. R. Morse of the Michigan Lumber Company purchased the property and operated i t more successfully. Ten years later he in turn sold i t to 134 Robertson and Hackett, Ltd., who operated two logging camps in conjunction with i t . \ Five additional mills were constructed in Vancouver in 1890: four on Burrard Inlet and one on False Creek. They were the Vancouver Sawmill Company} the G. F. Slater mill; the Earnest Buse mill; and the North Pacific Lumber Company; and, on False Creek, the Vancouver Manufacturing and Timber Company. The granting of a huge land tract to the Esquimalt and Nanaimo Railroad stimulated the industry on Vancouver Island. In 1885, Henry Croft and a man called Severne bought the small pioneer Askew mill at Chemainus. Almost 1 3 4 Flynn, J. E., Early lumbering on Burrard Inlet, 1862-1891, Graduating essay, University of British Columbia, 1942, p. 32. A 35 d e c e i t . 69 immediately, D. Angus bought out Severne, and Croft and Angus enlarged the capacity of the plant and mechanized i t completely./ They installed new engines, circular saws, a small pony edger, and boilers with a capacity of 220 horsepower.13^ Their success seemed assured for Croft, who later became M.P.P. for Chemainus, was a son-in-law of Robert Dunsmuir, the owner of the Esquimalt and Nanaimo Railroad, and the mill's best customer, and Angus was the brother of R. B. Angus, vice-president of the Canadian Pacific R a i l road. 1 3 7 During the years immediately following, the Chemainus mill supplied a l l the lumber for the construction of the Island railroad — some twelve million feet — as well as pretty well a l l the lumber used on the East Coast of Vancouver Island. In addition to the Chemainus town-site, Croft and Angus owned large timber limits on the Island and on the Mainland, 1 3 8 from which they drew an inexhaustible supply of logs for their millo The mill enjoyed certainly natural advantages in i t s spacious frontage and harbor for anchoring millions of feet of logs and almost from it s inception the Chemainus 1 3 ^ British Columbia Lumberman, vol. 37, (April, 1953), p. 100. 1 3 7 The New West, Winnipeg, Canadian Historical Publishing Company, lb88, p. 190. 1 3 8 Ibid., p. 191. 70 mill exported i t s products to China, Australia, South America and across the Strait and by r a i l to the Prairie 139 market.*^ . In 1889 the mill was sold to the Tictoria Lumber and Manufacturing Company, owned principally by J. A. Humbird, which had acquired several b i l l i o n feet of choice Vancouver Island timber. The new owners, using the old mil l for cutting construction lumber, built a modern plant with a capacity of 200,000 feet of lumber, 50,000 lath, and 50,000 shingles per ten-hour shift. It was completed in 1890, but operated for only a month before i t was shut down probably because of the general economic collapse. It was one of the finest mills on the Pacific Coast at that time, having cost about $ 2 5 0 , 0 0 0 . 1 4 0 141 It did not recommence operations until 1896 after which time, under the management of E. J . Palmer a.Texan i t shipped each year not less than thirty million feet and sometimes as much as forty-eight million. When i t burned down i n 1923 i t had produced the astounding total of 1,000,000 million feet of lumber. It was rebuilt once again and is today one of the Province's most important !39 fhe New West. Winnipeg, Canadian Historical Publishing Company, 1888, p. 190. 1 4 0 West Coast Lumberman, vol. 3 , (July, 1892), p. 3« 141 n T h e i n ( 3 i a n s called i t Tzimminis," Harmac News. (Febo-Mar. 1956), p. 71 m i l l s . 1 4 2 In 1893 the Ross-McLaren Company, an Eastern Canadian concern, established a mill near Few Westminster. It operated the mill until 1905 when the company sold i t to the Fraser River Sawmills.14"3 There Lester W. David, of Seattle, the new president, proceeded to erect an organization which became universally known as the largest sawmill in the world. His financial backers were E. J. Dodge, H. J. Crocket and G. A. Innes, three well known San Francisco capitalists, and W. P. Fowle and 144 Ernest Walker, two local business men. The Fraser River Lumber Company began operations in 1906, and it s f i r s t shipload of lumber marked the real revival of the ocean lumber trade of New Westminster.145 It soon became obvious that a larger operating capital would allow the company to take better advantage of its trading position and to this end a new company was formed with a capital of twenty million dollars. A. D. McRae of Winnipeg became president and Peter Jansen later President McKinley•s ambassador to Russia, a Senator of British Columbia Lumberman, vol, 18, (January, 1934), p. 3 ^ ~ 1 4 3 Western Lumberman, vol. 6, (April, 1909), p. 17. 1 4 4 Lumberman and Contractor, vol. 3 , (March, 1906), P. 7. 1 4 5 Ibid., vol. 3 , (February, 1906), p. 20. the State of Nebraska and one of the largest ranch owners in the Middle West,146" became vice-president. They completed the largest lumber deal on record in British Columbia, the purchase of 75,000 acres of magnificent standing timber, stretching from Comox to Campbell River, Vancouver Island and then transferred the enormous assets of the company to a new corporation, the Canadian Western Lumber Company. The limits owned by the corporation were the largest in the world, with the possible exception of those controlled by Frederick Weyerhaeuser, the timber king of Michigan. 1 4 7 In 1908, McRae bought David's interest, and along with Senator Jansen, Col. A. D. Davidson of Toronto, Edward and Louis Swift, the Chicago meatpackers, William Mackenzie and D. D. Mann, the Canadian railroad builders, and D. B. Hanna, the American industrialist, set about re-building and extending the old mill at a cost of an 148 additional million dollars. Lester W. David and Company of Seattle, continued to act as brokers for the huge industry. 1 4 9 The tempo of American investment quickened 146 147 148 149 Western Lumberman, vol. 6, (April, 1909), p. 19. Ibid., vol. 7, (May,"1910), p. 36. Timberman, vol. 10, (April, 1908), p. 39. Ibid., vol. 9, (September, 1907), p. 47. noticeably as more and more Mid-West lumbermen watched potential customers for British Columbia lumber streaming into the Prairie Provinces from Europe in the f i r s t decade of the century. One of the most astute was M. J . Scanlon, of Minneapolis, president of the American Timber Holding Company, an American corporation with a capital of six million d o l l a r s . 1 ^ He was also principal partner of the well known firm of Brooks-Scanlon Lumber Company, which owned plants and timber limits in the Bahamas, and in the Southern and Northwestern States. Scanlon purchased widely i n British Columbia after 1905, and i n 1909 he erected two large sawmills, one at Harrison Lake, and another at Vancouver. These two mills, built at the enormous cost of $750,000, could produce 350,000 feet per ten-hour shift. The Brooks-Scanlon timber holding company continued In the early 18801 s, there was a dearth of capital to develop the agricultural industries upon which the cities of St. Paul and Minneapolis grew to their importance i n the grain trade. The capital necessary for their development came largely from Canadian banks. In the early 1900's, these cities were obviously in a position to come forward with money for investment in the various enterprises in Western Canada, where conditions regarding investment capital were analgous to those which obtained in and about St. Paul and Minneapolis a quarter of a century earlier. Western Canada Lumberman, vol. 5, (June, 1908), p. 17. to buy timber limits until by 1911 they had accumulated five b i l l i o n feet representing an investment of $2,500,000, Their principal holdings were located on the Fraser River, Jordan River and Quatsino Sound, Powell Lake and the Narrows Arm d i s t r i c t . In 1910 Scanlon founded the Powell River Company, which became the largest pulp and paper company in the West and the largest undertaking with which he was connected. Both partners died in 1930. An estimated 280 million feet of cedar timber in the Capilano Valley on the north shore of Burrard Inlet were acquired in 1908, by the Nickey interests of Memphis, Tennessee, and C. A. Marsh, a leading Chicago capitalist*, A standard-gauge logging railway was built into the limits 152 in 1917 and exploitation of the area was begun. y E. J. Young of Madison, Wisconsin and J. N. Norton of Medford purchased five thousand acres of f i r and cedar on v . 153 the North Arm of Burrard Inlet at the cost of $300,000. ' ° In 1905, H. L. Jenkins and J. C. Busch, of Blaine, secured between 75,000,000 and 100,000,000 feet in the Municipality of North Vancouver and 2,300 acres in the 154 neighbourhood of Campbell River and Discovery Pass. ' Their firm, the Vancouver Timber and Trading Company, 1 5 1 A detailed obituary of Scanlon appeared in: West Coast Lumberman, vol. 57, (November, 1930), p. 43. 1<52 Western Lumberman, vol. 14, (April, 1917), p. 36. !53 West Coast Lumberman, vol. 18, (May, 1907), p. 595. 154 Ibid., vol. 16, (May, 1905), p. 511. established large camps to cut timber for export to Blaine, where i t operated a large mill. 1^? n ^ t e r and Fox, two other Blaine operators, purchased the Leamy and Kyle mill In Vancouver and operated i t in conjunction with their Blaine property. 1^ Another large purchase, made by a Duluth lumber firm, embraced the leases of ten thousand acres of valuable timber land around Coquitlam Lake and on the Fraser River, and the construction of a lumber mill. A ^ 7 Twenty-two thousand acres were bought on Harrison Lake by R. H. Roys of Saginaw, Michigan, and M. E. Jeffries of Janesville, Wisconsin 1^ 8 wkii@ the Vancouver Lumber Company was purchased by J. D. Moody and A. Taylor of Texas.x^9 In 1908, Johnes and Summerville of Memphis, Tennessee purchased twenty thousand acres on Jervis Inlet and New York investors bought forty thousand acres on the same fiord for f l50,OOO. l 6° x 5 ? West Coast Lumberman, vol. 17, (June, 1906), p. 672. x 56 Timberman, vol. 3, (July, 1902), p. 11. 157 United States Government, Department of Commerce Monthly Consular and Trade Reports. No. 306, (March, 1906), P. 17. x 5 8 West Coast Lumberman, vol. 19, (September 1908), P. 833. x 59 Lumberman and Contractor, vol. 4, (March, 1907), P. 34. x 6 ° West Coast Lumberman, vol. 19, (September, 1908) P. 833. An area of about eight square miles of timber in the Squamish Valley was acquired by Colin Campbell, of Seattle in 190?. His Seattle logging firm cut twenty-five million feet the following year, most of which was utilized by the Pacific Coast Lumber Company of Vancouver. Charles F. Heidrick, of Clarion, Pennsylvania, president of the Pittsburg, Summerville & Clarion Railway, bought nine thousand acres, seven thousand of which were located on Worth Valdez Island and two thousand on the Fraser River, about seventy-five miles east of Vancouver and adjoining the main line of the Canadian Pacific Railway. Midwest railway and timber operators purchased forty-nine square miles on Moresby Island, as well as eight thousand acres of the choicest crown lands on Graham Island and incorporated the Moresby Island Timber Company. The investment amounted to several million dollars. San Francisco and Australian capitalists backed a concern to build a mill at Grumshewa Bay, on the southern part of Graham Island. In 1906 D. Drysdale, of Seattle, formerly president of the Alaska Packers Association, acting in conjunction with English capitalists established West Coast Lumberman, vol. 16, (June, 1905), p. 573. 1 6 2 Ibid., vol. 20, (June, 1909), p. 660a. l o 3 Western Canada Lumberman, vol. 5, (June, 1908), p. 19. 77 a mill at Glew Bay, near Skidegate, where they controlled 164 ten thousand acres of timber. At approximately the same time, J. P. McGoldrick and G. A. Lammars, of Minneapolis, staked f i f t y - f i v e square miles of timber on 165 Moresby Island. In 1909 New York and Iowa people invested in seventy-six sections of timber on the same island with the intention of building a mill at Skidegate. On Vancouver Island the mill of the Cowlchan Lumber Company, near Victoria was purchased by J. Gauthier and F. H. Reis, of St. L o u i s . 1 6 7 A Seattle firm bought six thousand acres of timber leases near Nanaimo for $37,500. Waldo E l l i s Knapp, of Duluth, Minnesota, founded the Red C l i f f Lumber Company at Alberni after acquiring thirty thousand acres of fine timber in the 16 9 neighbourhood. Seventy-eight sections were secured by a company, the principal stockholders of which were E l l i o t t Calendar 1 6 4 West Coast Lumberman, vol. 17, (October, 1906), p. 31. 1 6 5 ibid., vol. 16, (January, 1905), p. 164. 1 6 6 Ibid., vol. 20, (June, 1909), p. 660a. 1 6 7 Ibid., vol. 19, (July, 1908), p. 690. ± 0 ° United States Government, Department of Commerce, Monthly Commerce and Trade ReportsT No. 306, (March, 1906), p. 16. 169 West Coast Lumberman, vol. 18, (December, 1907), P. 177. of Peoria, I l l i n o i s ; G. R. Grazelli of Cleveland, Ohio, and B. F. Gooderich of the Akron Rubber T r u s t . 1 7 0 Minneapolis lumbermen were credited with making the heaviest purchase of standing timber recorded in British Columbia when, in 1905, they purchased forty-three thousand acres of timber lands on the Eastern Coast of Vancouver Island. The tract which was said to contain one million feet of f i r and cedar, lay between Salmon and Campbell R i v e r s . 1 7 1 St. Louis capitalists acquired twenty thousand acres of heavily timbered land in the vicinity of Port Renfrew on the West Coast, at a cost of $100,000.172 For $81,000 the Rupert Timber and Lumber Company, a Spokane firm, secured options on thirty-two thousand acres of timber, mostly cedar, on Vancouver Island. 1 73 In 1907 E. B. Caldwell of Michigan purchased sixty 174 thousand acres of timber on the same island. Hew York capitalists headed by Richard C. Patterson and including B. G. Poucher and W. S. Kinnear, prominent 1 7 0 West Coast Lumberman, vol. 19, (November, 1908) p. 96. 1 7 1 Ibid., vol. 17, (November, 1905), p. 89. 1 7 2 Western Lumberman, vol. 7, (August, 1910), p. 1 1 7 3 West Coastri Lumberman, vol. 18, (December, 1907) P. 177. 1 7 4 Ibid., vol. 18, (April, 1907), p. 529. 79 industrial engineers, and the Rev. Newell Dwight H i l l i s , the well known pastor of Plymouth Church, New York, took out an option on about 100,000 acres of timber land on northern Vancouver Island, opposite the Mainland Coast. 1 7^ The Sutton Lumber Company an American concern erected a mill at Mosquito Harbor, on Clayoquot Sound, on the west coast of Vancouver Island, where they employed between four hundred and five hundred men.176 It was one of the largest industries on the Island, LVttilthis time the West Coast north of the Alberni Canal had been inhabited only by straggling bands of Indians and by fishermen or miners. Five hundred white men meant the establishment of a community bigger than any ever seen along that coast. The company's aim was to cut cedar from its seventy square m i l e s 1 7 7 of first-class virgin timber, process i t chiefly into shingles and ship them around Cape Horn to the New York market. The number of shiploads dispatched is not known, but i t cannot have been large, for there is no record of the existence of the firm in the years that followed although Clayoquot continued 1 7 5 Timberman, vol. 23, (June, 1902), p. 99. 1 7 6 West Coast Lumberman, vol. 18, (September, 1907), p. 890. 1 7 7 United States Government, l£m&hlX.£m££l3lL.&£<k Trade Reports, No. 308, (March, 1906), pp. 177-178. 80 from that time as a lumber and fishing community. In 1909, E. C. White, a sawmill operator of Boyne City, Michigan, acquired holdings of British Columbia timber for which he paid over two million dollars. They were located on and near the Klaanch River on the northeast coast of Vancouver Island. One tract for which he paid $1,500,000, was estimated to contain three b i l l i o n feet. In addition, he purchased areas aggregating about five hundred million feet. Ownership was vested in the White Brothers Lumber Company, incorporated in Michigan with a capital of two million dollars. At Alert Bay he erected a sawmill large enough to handle the large number of logs which he cut from what was described as the most valuable 178 timber area in British Columbia, i f not in the world. In 1910 William McKnight, a prominent millman of Grand Rapids, Michigan, organized the Michigan-Puget Sound Company, which acquired vast limits in the Jordan 179 River area on the West Coast of Vancouver Island. This syndicate, with a capital of $1,500,000, merged in 1911 with another American firm, the Michigan-Pacific Lumber Company, to form the Canadian Puget Sound Lumber Company, Limited. With a capital of five million dollars, the new organization was one of the largest, i f not the 1 7 8 Western Canada Lumberman, vol. 5, (December, 1909), p. 19. 1 7 9 Western Lumberman, vol. 8, (July, 1911), p. 59. l a r g e s t , of i t s kind i n the country, McXhight, along w i t h Chicago and S a l t Lake C i t y c a p i t a l i s t s , organized a second undertaking, the Few Miami Lumber Company, with a paid-up c a p i t a l of 1500,000 to c o n t r o l a f u r t h e r 800,000 f e e t of timber i n the Jordan River region. In a d d i t i o n , they purchased the m i l l and l i m i t s of the pioneer Sayward and Company, a l l of which merged to become the Michigan-Puget Sound. Lumber Company, with a c a p i t a l i z a t i o n of $ 1 , 2 5 0 , 0 0 0 . 1 8 0 .Apparently u n t i l about 1905 the staking of timber l i m i t s was p r a c t i c a l l y confined to c e r t a i n comparatively r e s t r i c t e d areass on Vancouver Island and at points along the Mainland coast to a distance of two hundred or two hundred and f i f t y miles north of Vancouver. After 1905, however, i t became common f o r l i c e n s e s to be taken out f o r l i m i t s f a r to the north, both on the Mainland and on the Queen Charlotte Islands. I t i s d i f f i c u l t to" a s c e r t a i n the extent to which American investment i n B r i t i s h Columbia timber was wholly s p e c u l a t i v e . Most large Investors seemed w i l l i n g to erect m i l l s to cut t h e i r holdings when the p r i c e of lumber warranted i t ; some large t r a c t owners, however, were Interested wholly i n speculation, or almost so. C e r t a i n l y 1 Western Lumberman, v o l . 7, (February, 1910), p. 16. 82 there were many small speculators like W. E. Simpson of Iowa Falls, Iowa, who invested in timber berths on Southwest Vancouver Island in 1907 and two years later sold them for |200,000 to F. L. Peck of Scranton, Pennsylvania, the president of the United States Lumber Company. He was said to have netted five hundred per cent on his investment.x x Then there were large speculators, like T. B. Merrill, the f i r s t American to recognize the long-term value of the British Columbia forests; D. J. O'Brien of Tacoma; E. R. and A. Burkholder of Kansas; A. C. Frost, the lumberman financier of Chicago; the Rockefellers of Standard Oil fame, and the Alworth family of Duluth. 1 8 2 Moses Ireland, the lumberman who f i r s t pioneered the industry on Burrard Inlet with Sewell Moody and Van Bramer, attempted as early as 1880 to convince Victoria capitalists that the province's timberlands would become valuable on the completion of the railroad to the Coast. He approached Thomas Earle, the railroad contractor, who had extensive interests i n salmon canneries and land, and Edgar Marvin, the Victoria hardware merchant and general broker, but with l i t t l e success. In 1882, however, T. B. Merrill, the 21-year-old son of the Michigan lumber 181 West Coast Lumberman, vol. 20, (September, 1909), p. 885. 1 8 2 Lumbering and Contractor, vol. 4, (November, 1907), p. 13. 83 operator, visited British Columbia from San Francisco, and, like many Americans who followed later, was over-whelmed by the large dimensions and the virgin condition of what he saw. Ireland f i r s t showed him some choice timberland on Malaspina Inlet. Merrill just ran through the woods and looked around and waved his arms and said "Its great; i t ' s fine. I want to buy i t . " For these five thousand choice acres he paid a total of fourteen thousand dollars. By 1909, Merrill, then a member of Merrill and Ring, of Puget Sound, valued the property at more than $500,000 despite his having already taken a fortune out of i t in the form of logs. He steadfastly refused to s e l l any of the acreage, maintaining that i t I83 was more profitable to hold i t as an investment. After the turn of the century, the Rockefellers quietly began to purchase timber tracts in the Esquimalt and Nanaimo Railway belt, so that by 1907 their ownership extended over f i f t y thousand acres of some of the choicest f i r and cedar. Perhaps representative of these quiet purchases was the exchange of $500,000 for eleven to twelve thousand acres of timber lands on Ash and Dixon Lakes, near Alberni. The timber was some of the finest 184 in the Railway Belt. 1 8 3 West Coast Lumberman, vol. 20, (September, 1909), p. 885. 1 8 4 Lumberman and Contractor, vol. 4, (September, 1907), p. 13. 84 The eleverl thousand-odd acres stood in the name of Mr. H. Brownell, secretary of the Everett Timber and Investment Company, the regional representative of the 185 Standard Oil Company. It was said that the Rockefellers desired to own anywhere from five hundred to one thousand square miles of the province. By 1907 they had acquired 1 8 6 over three hundred square miles of timberland. These purchases proved a lucrative long-term investment. Rockefeller held them for thirty years before selling one tract in the Alberni region to the H. R. MacMillan interests i n 1936 and another i n the Nanaimo area, the 187 following year to the Canadian Western Lumber Company. The Alworths of Duluth purchased about a b i l l i o n feet of Douglas-fir and other timber on Vancouver Island and held them until 1940 before selling out to the Canadian Robert Dollar Company for approximately two million 188 dollars. British Columbians welcomed the influx of American capital. They showed l i t t l e fear that the purchase of their primary natural resource on so extensive a scale by Lumberman and Contractor, vol. 4, (September, 1907), p. 13. 1 8 6 Ibid., vol. 4, (November 1907), p. 13. 187 West Coast Lumberman, vol. 64, (March, 1937)» p. 25. 1 8 8 Ibid., vol. 67, (February, 1940), p. 51. American operators might render them economically sub-ordinate to another nation, and the phrase "loss of national identity" had not yet been coined. The pre-vailing attitude was nicely summed up by the editor of the Western Canada Lumberman. It is not with a s p i r i t of complaint that we say that i f the Eastern Canadian manufacturer does not become alive to the big chances for opening here, the United States manufacturer w i l l . The world's capital is looking for profitable investment, and Western Canada is not being overlooked. Money w i l l surely come in larger amounts than ever before and we invite the Eastern Ganadlans to get in on the ground floor, before the monied man of other countries w i l l . It makes l i t t l e difference to the people of Western Canada where the money comes from, as long as the country is developed, but we are loyal enough to our Eastern brethren to desire that they take 2,89 advantage of the opportunities offered. The magnitude of the American investment scramble can best be gauged when i t is realized that capital invested in the province's timber business at the turn of the century did not exceed two million dollars. Among the largest timber holdings were those of the British Columbia Mills, Timber and Trading Company of Vancouver, with 75,000 acres; the Toronto and British Columbia Lumber Company, with 45,000 acres; the Ross, McLaren Company, with 23,600 acres; the North Pacific 1 v Western Canada Lumberman, vol. 5, (July, 1908), P. 15. 86 Lumber Company of Barnet, with 15?000 acres; and A. Haslam, with 8,000 a c r e s , 1 9 0 A l l of these holdings were Canadian. A decade later, American investment alone in British Columbia mills and timber mounted to sixty-five 191 million dollars, 7 and by 1914, i t had risen to seventy 192 million dollars. It was reported in a .IT. S. Consular Trade Report, that f u l l y ninety per cent of a l l great business enterprises in Western Canada, had United States 193 capitalists interested in them. J. 0. Cameron, a prominent millman from Texas was moved to comments The assertion that the lumber industry of British Columbia is absolutely dominated by U. S. capital, is so far removed from the real facts of the situation, as to be ridiculous, but i t might have a serious effect on the minds of people not familiar with the business. Instead of being controlled to the extent of ninety-five per cent by American capital, I doubt that the control extends to. one-third of that, certainly not more than thirty per cent. So far as Victoria Is concerned, there is only one mill that Is owned by Americans, Regarding my own company, the owners may have originally been Americans, but we a l l live in Victoria and I would certainly challenge the statement that the Cameron Lumber Company is anything but a Canadian i n s t i t u t i o n . 1 " 4 190 Timberman. vol. 11, (August, 1902), p. 56. 191 United Statement Government, Department of Commerce, Consular and Trade Reports. (June 15, 1911), No. 139, p. 1181. 1 9 2 Ibid.. (February 11, 1914), No. 1 4 5 , P. 554. Western Canada Lumberman, vol. 5, (June, 1908), p. 17. 1 9 4 Western Lumberman, vol. 18, (June, 1921), p» 31< 87 The distinction Cameron made between owners who moved to Canada to actively head their organizations on a permanent basis and those owners who remained resident in the United States while consistently drawing their profits from Canada was certainly more valid than i t appeared upon f i r s t notice. Many of the American operators who arrived in that era remained, like the Camerons, to ('eventually become Canadian citizens in every sense of the term. Nevertheless, they were o f f i c i a l l y Americans and their investments were popularly termed American. Although American investment dominated the scene, Ameri cans were not alone in recognizing a profitable venture. German investment in British Columbia's forest dates from 1901 when i t was reported that German capitalists had secured 35,000 acres of timber land, and would expend 1500,000 in a saw mill and logging camp. The company, 195 so the report stated, would enter the foreign cargo trade. In the next decade, German investment grew steadily, i f unspectacularly, until German investors found i t expedient to be represented locally by one of their own countrymen, Baron Alvo von Alvensleben. In 1910, this agent startled timber interests by purchasing for one million dollars the extensive business and holdings of the Vancouver Timber & Trading Company on behalf of German capitalists. The 1 9 5 West Coast and Puget Sound Lumberman, vol. 12, (September, 1901), p. 54-7. 88 holdings of the concern included s i x large logging camps, about twenty m i l l i o n feet of logs i n booms adjacent to the Vancouver m i l l s , and some twenty thousand acres of f i r s t - c l a s s timber.^96 With the outbreak of the F i r s t Great War i n 1914, the various B r i t i s h Columbia Interests of von'Alvensleben went Into l i q u i d a t i o n and German 1.nvestmant disappeared. B r i t i s h investment was more widespread and more d i f f i c u l t to I s o l a t e from. American and Canadian investment. Much of i t was managed "by the Western Finance Company, of V i c t o r i a , which purchased timber l i m i t s on behalf of i t s c l i e n t s • A representative purchase was one made on Vancouver I s l a n d , which aggregated 2 0 0 , 0 0 0 acres, the consideration being 500,000 pounds, The l i m i t s included i n the t r a n s a c t i o n were located, on the west coast of the Isl a n d , i n the Quatsino, Nootka, Clayoquot and N i t i n a t 3 Q7 Kale d i s t r i c t s , Another B r i t i s h concern was the B r i t i s h Canadian Lumber Company, founded i n 1910 with a c a p i t a l of two m i l l i o n d o l l a r s , by several prominent E n g l i s h f i n a n c i a l houses. They bought the P a c i f i c Coast Lumber M i l l ' s plant and timber l i m i t s f o r $ 6 0 0 , 0 0 0 , 1 9 8 Western_.Lumberman, v o l . 8, (February, 1911), p. 23. 1 9 7 Loc. c i t . -98 T ^ . , V 0 1 . 7, (May, 1910), P . 43. 89 Shortly thereafter, four of the largest and best known mills operating in different parts of the province, together with about 135 square miles of the choicest timber on the continent, passed into the control of another newly formed British corporation, the Canadian Pacific Lumber Company. The capitalization of the new concern was five million dollars, and the head office was in Vancouver. Mills included in the consolidation were the Canadian Pacific Lumber Company of Port Moody, the Anglo-American Lumber Company of Vancouver, the Barkley Sound Cedar Company of Port Alberni and the Gibbons Lumber Company, operating on the Arrow Lakes. 1" Although American capital dominated the era, Eastern Canadian capital was represented in a comparatively small way. Prominent among the Eastern Ontario operators who came to British Columbia were the McLarens of the Ottawa Valley; D. H. Cameron, another experienced lumberman from the Ottawa Valley and head of the Rat Portage Lumber Company;200 George McCormick, ex-M.P. of OriIlia; John Arbuthnot of Winnipeg; and John Hanbury of Brandon. Of the Eastern Canadian lumbermen who exploited 1 9 9 Western Lumberman, vol. 7, (September, 1910), p. 20. 2 0 0 British Columbia Commercial Journal, vol. 1, (May 19, 1891), p. 6. 90 the forest resources of the province, few profited more than the McLaren family. The head of the family, Senator Peter McLaren, was the owner of 100,000 acres of valuable timberlands in Virginia as well as three hundred square miles on the Mississippi River in Ontario.2' With such a rich background of experience in the trade, the McLarens early recognized the commercial possibilities of the forest lands of the coastal areas, and having accumulated sufficient investment capital from their extensive operations, they invested liberally in Coastal tracts. Their f i r s t purchase, made In 1892, consisted of more than nine thousand acres between the United States POP boundary and well forested Cultus Lake. In conjunction with this purchase they erected a mill on the Fraser, which continued to operate until 1 9 0 5 when they sold i t to the company which used i t as the nucleus for the establishment of the famous Fraser Mills. The construction of a branch of the B. C. Electric Railway Company into the Chilliwack Valley in 1 9 0 9 , gave an opportunity to the Ross-MacLaren Lumber Company to 203 exploit their timber holdings, but i t is doubtful 2 0 1 Who's who and why. 1917-18. Toronto, Inter-national Press, p. 1342. 2 0 2 Timberman, vol. 23, .(April, 1922), p. 200. 2°3 West Coast Lumberman, vol. 1 9 , (October, 1908), P. 32. 91 that they took advantage of I t , f o r i n 1922 the Westminster M i l l Company w i l l i n g l y paid $600,000 f o r t h e m . 2 0 4 Again, i n 1898 the McLarens purchased extensive timber holdings i n the Campbell River region and once again ereeted a m i l l , t h i s time at Barnet, on Burrard I n l e t . They operated t h i s m i l l i n a desultory f a s h i o n 205 u n t i l 1900, and then closed i t . I t re-opened to operate s p o r a d i c a l l y f o r the next two decades, only to cease operations e n t i r e l y at the end of the war. In 1926 the f a m i l y disposed of the timber l i m i t s at Campbell River to B l o e d e l , Stewart & Welch f o r $3,000,000 and another on Vancouver Island to the Lamb Lumber Company f o r $550,000. The p r o f i t s on the investment must have been large indeed. H i s t o r i c a l evidence seems to bear out the b e l i e f that the McLarens were not s e r i o u s l y concerned about the p h y s i c a l business of producing lumber i n B r i t i s h Columbia. They were more i n t e r e s t e d i n allowing the passage of time to s u r e l y increase the value of t h e i r stumpage. The m i l l s which they b u i l t on the Fraser and at Barnet were erected only to comply with the government r e g u l a t i o n of the day 2 0 4 Timberman, v o l . 23, (January, 1922), p. 92. 205 i b i d . , v o l . 2, (December, 1900), p. 11. 2 0 6 I b i d . , v o l . 28, (December, 1926), p. 159. 92 which proscribed the sale of timber lands f o r purely speculatory purposes and s t i p u l a t e d the e r e c t i o n of a m i l l with every large s a l e of crown-grant f o r e s t land. The expense of erecting m i l l s , which were never operated to any extent, was deemed worthwhile i n view of the incr e a s i n g value of the timber. I t i s of t e n erroneously assumed that the e a r l y lumbering business on the Coast was p r i m a r i l y an offshore trade. That assumption i s v a l i d f o r the period before the advent of the r a i l r o a d , but a f t e r that, and e s p e c i a l l y a f t e r 1897, the P r a i r i e and r a i l r o a d demands accounted f o r by f a r the l a r g e r part of the Coast production. I n the representative year of 1904, shipments from t h i r t y -three Coast m i l l s to the P r a i r i e s , amounted to 95,540,444 f e e t , to Eastern Canada 10,000,000 f e e t ; to r a i l r o a d consumption 60,000,000 f e e t ; and l o c a l consumption reached 90,000,000 f e e t . 2 0 7 Thus over 255 m i l l i o n f e e t were used i n the home market. By contrast, the exporting m i l l s of the Coast despatched only 60 m i l l i o n f e e t overseas. By 1910, the P r a i r i e market was consuming 800 m i l l i o n f e e t 2" of lumber cut from both the I n t e r i o r and Coastal regions. Only on Vancouver Island did the industry depend 2 0 7 Timberman, v o l . 7, (October, 1905), p. 25. 2 0 8 Western Lumberman, v o l . 7, (January, 1910), p. 22. c h i e f l y on the export trade. As l a t e as 1907, there was only one large producer on the East Coast of Vancouver I s l a n d , the Chemainus m i l l , which produced 165,000 f e e t 209 d a i l y , while the Red F i r Lumber Company of Nanaimo, the second l a r g e s t , produced 60,000 f e e t . Other m i l l s a t South Wellington, Ladysmith, Duncan, Shawnigan Lake and V i c t o r i a , cut only between f i v e thousand and f o r t y thousand f e e t each and so could not be compared wi t h the 210 l a r g e r m i l l s of the Lower Mainland and I n t e r i o r . Even so, large shipments were made from time to time across the Gulf of George to the Mainland. The Sayward m i l l i n V i c t o r i a , f o r example, shipped 200,000 f e e t to Whitehorse, Yukon T e r r i t o r y , i n 1900 to help a l l e v i a t e the shortage 211 of housing among the hordes of gold seekers. The same company made a pioneer car and shipment of lumber to the 212 Kootenays i n November, 1900. The f i r s t r a i l w a y shipment of lumber from the West Coast of the Is l a n d , was made from the Canadian P a c i f i c Lumber Company's m i l l at Port A l b e r n i , i n 1912. 2 1 3 2 0 9 Timberroan, v o l . 9, (August, 1907), p. 41F. 2 1 0 L b c . c i t . 2 1 1 I b i d . , v o l . 2, (August, 1900), p. 14. 2 1 2 I b i d . , v o l . 2, (December, 1900), p. 11. 2 1 3 Western Lumberman, v o l . 9, (August, 1912), p. 57. 94 These valiant attempts to compete with Mainland mills for the Mainland market were not successful in the long run. The Island industry had to wait for the opening of the Panama Canal in 1914 before i t would see large-scale exploitation of i t s forests and i t would be made almost wholly on behalf of the cargo trade. The years between 1907 and 1912 need special characterization, for they marked the culmination of a period of unparalled business expansion throughout the province, and indeed throughout the whole country. The movement of settlers to the Prairie was at i t s peak; the volume of wheat production increased steadily; railroad building showed l i t t l e sign of abatement; and a spiri t of boisterous optimism pervaded the whole of the West. On the Prairies and in British Columbia, villages became towns and town became cities, and cities like Vancouver underwent construction booms which saw thousands of frame houses and hundreds of large buildings rise with great benefit to the mills of both the Coast and the Interior regions. In the midst of this great upsurge of activity there occurred the earthquake in San Francisco on April 18, 1906. That city, always a heavy buyer of f i r lumber absorbed 925 million feet in the process of re-building — double the amount i t had been accustomed to t a k e . 2 1 4 So great was the demand made on Coastal mills by the disaster that a temporary shortage ensued. 2 l5 Another earthquake at Valparaiso, occurring in August of the same year added to the backlist of orders. As an Indication of the rush for timber and manufacturing profits, no fewer than ninety new companies entered the lumber business in British Columbia in 1907. Through-out the latter part of the decade large cargoes were also despatched to the Panama Canal by mill owners who held contracts to supply the construction project t here. 2 1 7 The end of this era of boom and reckless investment occurred abruptly. A series of small crops on the Prairies led to a consequent lowering of demand from that region. But more important, in 1912 British Columbia millmen began to feel more than ever the effects of the invasion of the Prairie market by the American mills of Washington and Oregon. The consequence of this competition was a general lowering of prices. ?14 Coman, E. T., and Gibbs, H. M., Time, tide. and timber. Stanford, Stanford University Press, 194-9, p. 223. 215 Lumberman and Contractor, vol. 4, (March, 1907), P. 30. 2 1 6 Timberman. vol. 10, (January, 1908), p. 25. 2 1 7 Ibid., vol. 6, (December, 1904), p. 29. 96 American competition for the Prairie market was no new phenomenon. Common lumber had been placed on the free l i s t by the Conservative Government in 1894, and had remained there ever since. British Columbia , millmen had protested against the practice of their Inland Empire counterparts who, enjoying a vast home market protected by a ta r i f f wall, in times of financial urgency dumped large quantities of common lumber on the Canadian p i g Prairies. So serious had the invasion of the Prairie Market become by 1900, that a deputation from the industry Interviewed Sir Wilfrid Laurier to request the establish-ment of a t a r i f f of three dollars per thousand on foreign lumber, and thirty cents on shingles. The deputation was composed of the mayors of Vancouver and New Westminster, John Hendry of Vancouver, W. C. Wells of Palliser, B. C., and J. G. Scott of Vancouver. 2 1 9 In substance, the petition reelted the proximity of the province to the State of Washington, and pointed out that owing to heavy import duties the i n i t i a l cost of logging equipment and maintenance was higher in British Columbia than in Washington or Oregon. Eighty percent 2 1 8 Western Lumberman, vol. 12, (April, 1915), p. 13• 2 1 9 Columbia River and Oregon Timberman, vol. 6, (June, 1904), p. 39. ~ 97 of the donkey engines and blocks were made in the United States. The wire rope came from England, while saws and small-mill machinery was mostly made in Canada. Large mills used American-made burners, bands, gangs, log-deck and electrical machinery. The proportion of American-made goods was decreasing, but Canadian prices were based on American prices, plus duty. In addition, the cost of labor in British Columbia compared unfavorably with that of Washington and Oregon, being ten percent higher in British Columbia than in Oregon. Considerable cheap Oriental labor was used in the mills of British Columbia but, according to local millmen, it s cost per unit of production was equal to that of the Western States. To make competition with the American industry even more d i f f i c u l t , the Provincial law prohibited the employment of Oriental labor in Provincial forests and on public works. The petitioners might have added that no public railroads traversed logging districts such as existed in Washington and Oregon, so that when a railroad was needed for log transport i t had to be built from the water by the logger himself, a much more serious undertaking than the 2 2 0 Langille, H. D., "Canadian lumber competition," American Forestry, vol. 21, (February, 1915), p. 135. 98 construction of a spur from a logging camp to an established railroad. Another feature which increased the cost of logs on the Coast was towage. Most of the Coast logging was carried on in localities sixty to two hundred miles distant from Vancouver. Towage rates for these companies ranged from 60 cents to $1.50 per thousand feet, and the loss of logs during transit in open waters added a further considerable amount. The delegation presented these arguments to the Minister of the Interior and requested his serious consideration. Clifford Sifton, the Minister of the Interior, sat for Brandon, Manitoba, a constituency which vigorously opposed the t a r i f f which could have no other effect than the bolstering of lumber prices in Prairie points. Sifton was regarded by his cabinet colleagues as a kind of lone director in matters affecting the internal policies of Western Canada; therefore his decision was of great moment. Sifton refused to consider the argument of the Coast industry, maintaining that cheap lumber was absolutely essential to the continued settlement of Manitoba and the Northwest Territories. The consequence of his policy was that by 1905, d 1 Hendry, John, "Logging in British Columbia," Western Lumberman, vol. 7, (September, 1910), p. 21. 99 American millmen were enjoying ten percent of the P r a i r i e ppp trade, and they continued to do so throughout the decade. In the years 1911, 1912 and 1913 that market absorbed 479,169,300 f e e t of lumber, 121,940,000 l a t h and 90,093,000 s h i n g l e s , imported from the United States. I t had become the prime dumping ground f o r low-grade lumber from the Inland Empire. 2 2-^ B r i t i s h Columbia millmen had been able to weather the competition i n good years only because the P r a i r i e demand was so very great. I n years of str e s s and fewer orders,they found competition extremely d i f f i c u l t . Over-speculation i n the indus t r y was another source of t r o u b l e . By 1915 there were enough m i l l s to produce annually two b i l l i o n f e e t of lumber, while the greatest pp A demand ever required was about one b i l l i o n . E x c e s s i v e speculative dealings i n urban r e a l estate marked the period since as f a r back as 1897, and the consequent d e f l a t i o n r e s u l t e d i n heavy l o s s e s . There was a sudden con t r a c t i o n i n the output of numerous i n d u s t r i e s connected with the supply of materials and equipment f o r railway and r e s i d e n t i a l b u i l d i n g . A reduction consequently occurred Z Z e i Timberman, v o l . 7, (October, 1905), p. 25. 2 2 3 L a n g i l l e , H. D., "Canadian Lumber Competition," American F o r e s t r y , v o l . 21, (February, 1915), p. 138. 2 2 4 Western Lumberman, v o l . 12, (October, 1915), p. 23. 100 in the supply of 'goods for the daily wants of a population which had been increasing rapidly in numbers and purchasing power. The culmination was reached in the breaking out of the F i r s t Great War in 1914, following which the demand from Ontario and the Prairies for lumber dwindled almost to the vanishing point. Production f e l l to sixty percent of the 1910 figure, and exports skidded to five percent of the cut. Now, under the exceptional circumstances of a depression in the industry, British Columbia millmen once again registered their complaint against the dumping practices of the American industry, this time successfully. The Conservative Government instituted a 7-1/2$ war t a r i f f , which effectively closed the market to American millmen. The concession was welcome but i t made l i t t l e difference now to the general tone of depression. Most of the British Columbia mills suspended operations, and this in turn, brought about the closing down of many of the logging camps. Thousands of men were thrown out of employment. Then, and not t i l l then apparently, did the business men of Vancouver and the Province begin to realize how dependent they were upon the lumber business for the maintenance of prosperity, and how overwhelmingly dependent the lumber business had grown upon the continued demand of the Prairie market. CHAPTER III THE PANAMA CANAL AND THE CARGO TRADE (1915-1940) Before the outbreak of the f i r s t . World War, B r i t i s h Columbia's overseas trade was p i t i f u l l y s m a l l . There were s e v e r a l reasons f o r t h i s unfortunate s i t u a t i o n : the province enjoyed only l i m i t e d means of ocean t r a n s -p o r t a t i o n ; i t s businessmen had developed no sense of tr a d e - a s s o c i a t i o n , and neglecting to t r a v e l , they had only a l i m i t e d f i e l d of v i s i o n upon which to draw; and, most important of a l l , before the opening of the Panama Canal, B r i t i s h Columbia remained geographically i s o l a t e d from the chief European markets and from the A t l a n t i c Seaboard. The economic c r i s i s of 1913 and 1914 brought these l i m i t a t i o n s home most f o r c i b l y to the leaders of the lumber industry. R e a l i z i n g that the P r a i r i e markets would be unresponsive f o r some time to come, leading millmen began to s e r i o u s l y i n v e s t i g a t e the f e a s i b i l i t y of expanding the cargo trade as a means of gaining r e l i e f from the economic depression. O f f i c i a l f i g u r e s i n d i c a t e d that the shipments made by B r i t i s h Columbia m i l l s to f o r e i g n countries had f a l l e n almost ye a r l y since 1900, while tremendous increases were recorded by the m i l l s of Washington and Oregon. For example, American shipments to A u s t r a l i a and New Zealand — n a t u r a l markets f o r 102 B r i t i s h Columbia lumber — had increased from 6 1 , 3 0 0 , 2 9 3 f e e t i n 1 9 0 2 to 2 0 3 , 0 5 3 , 1 7 2 f e e t i n 1914, or over 3 7 0 per cent; while B r i t i s h Columbia's share had f a l l e n from t h i r t y - t h r e e per cent of that market i n 1 9 0 2 to only three per cent i n 1 9 1 3 2 2 ^ In 1894 B r i t i s h Columbia enjoyed more than t h i r t y per cent of the P a c i f i c Coast's oofs export t r a d e . B y 1 9 1 3 t h i s share had dwindled to a mere 53,810,000 f e e t , perhaps f i v e per cent of the t o t a l . - 2 ? "The trouble with us," admitted a leading millman, " i s that we have been going through boom times where i t d i d not take much e x e r t i o n to dispose of our p r o d u c t . " 2 2 8 I t became c l e a r that a determined p o l i c y of opening up world-wide markets f o r the lumber products of the province was e s s e n t i a l not only f o r the s a l v a t i o n of the industry, but to the economic well-being of the whole province. Businessmen bombarded the Canadian government f o r a i d . " I think i t i s the duty of the Board of Trade, and i n f a c t everyone i n B r i t i s h Columbia, to Impress upon the M i n i s t e r of Trade and Commerce, the necessity of t r y i n g to provide an o u t l e t f o r the lumber of B r i t i s h Columbia," went one representative l e t t e r . 2 2 9 Fortunately, the opening of 2 2 5 Western Lumberman, v o l . 1 3 , (September, 1 9 1 6 ) , p. 2 2 6 I b i d . , v o l . 1 1 , (September, 1914), p. 3 3 . 2 2 7 I b i d . , v o l . 1 2 , (March, 1 9 1 5 ), p. 1 5 . 2 2 8 Palmer, E. J . to Gosnell, R. E., November 9, 1914, McBride Papers. 2 2 9 Palmer, E. J . to Lugrin, C. H., October 19, 1914, McBride Papers ,> 103 the Panama Canal In the spring of 1914, offered the government an opportunity to s a t i s f y these demands0 I t had been f e l t f o r some time that the canal would a f f o r d B r i t i s h Columbia manufacturers an almost unass a i l a b l e p o s i t i o n i n the lumber markets of the A t l a n t i c Coast, owing to the low f r e i g h t rates they would enjoy as compared w i t h the charges that would have to be imposed by ships of American r e g i s t e r . Before the opening of the canal there was a small a l l - w a t e r movement from the P a c i f i c Coast states and B r i t i s h Columbia to New England and other A t l a n t i c Coast s t a t e s , but on the whole the long t r i p around the Horn made i t commercially impracticable.2 3 0 S a i l i n g vessels needed three or four months f o r the journey, while the steamer, f o l l o w i n g the same path, contended w i t h a tremendous coal consumption which was not only c o s t l y but a l s o decreased i t s cargo capacity. By reducing the mileage by more than h a l f , the Panama Canal lowered the cost of t r a n s p o r t a t i o n ; indeed, f r e i g h t e r s were able to transport Coast lumber to Eastern ports at a r a t e that the r a i l r o a d s were e n t i r e l y unable to meet. 2 3 0 Despite these disadvantages, both steam and s a i l i n g c r a f t were able to o f f e r a r a t e from the P a c i f i c Coast s l i g h t l y lower than the a l l - r a i l r a t e , from the P a c i f i c to the A t l a n t i c . They were not able, however, to make t h i s r a t e low enough to obtain much of the custom or to make i t p o s s i b l e to ship to A t l a n t i c coast ports and reconsign to the I n t e r i o r . Western Lumberman, v o l . 6, (November, 1909), p. 26. 104 The Canadian government, in response to the pressure of the Coast lumbermen, investigated the possibility of marketing British Columbia lumber in a large way in the United Kingdom and in Europe. Early in 1914 Sir George Foster, the Minister of Trade and Commerce appointed Mr, H, R. MacMillan, the young Chief Forester of British Columbia, to the post of Special Trade Commissioner and directed him to tour Europe and Asia on behalf of the lumber interests of British Columbia, When Mr. MacMillan reached the United Kingdom at the end of April, the lack of shipping was becoming acute, and the lumber trade between the Pacific Coast and Europe was suffering seriously. Moreover, he found that American interests were very strongly represented in the British timber trade while British Columbia mills were not. Since the private business s t i l l being transacted was almost entirely controlled by American agents, the new commissioner found l i t t l e opportunity of securing immediate orders for British Columbia mills. In fact, so l i t t l e was the existence of a lumbering industry in British Columbia recognized by English buyers that the Imperial Government it s e l f through the War Office and other large departments, was as a matter of course purchasing much Pacific Coast timber 105 through American agents.231 As the export lumber trade of the Coast was centred i n the hands of brokers i n San Franc i s c o , P o r t l a n d , and S e a t t l e , the arrangement was h i g h l y unfavourable to the B r i t i s h Columbia i n d u s t r y . Mr. MacMillan, w i t h the assistance of S i r Richard McBride, the premier of the province, who was then i n London, drew the a t t e n t i o n of the Imperial a u t h o r i t i e s to t h i s s i t u a t i o n , and pointed out that the p r o v i n c i a l government, through the Department of Lands, would w i l l i n g l y supply any lumber cargoes that the B r i t i s h Government might n e e d . 2 3 2 The B r i t i s h a u t h o r i t i e s met these representations most co-operatively, and since the trade was being r i g i d l y c o n t r o l l e d because of the war 2 3 ! MacMillan described the s i t u a t i o n i n these words on h i s r e t u r n from h i s mission: "We here i n B r i t i s h Columbia are wont to b e l i e v e that B r i t i s h Columbia lumber i s the standard of the world, that everywhere t h i s province's name i s known. I t w i l l doubtless be a keen disappointment to many to l e a r n that so f a r as the lumber trade, at l e a s t , i s concerned, by f a r the great p o r t i o n of our exports — I am t a l k i n g now of ante-bellum export business, f o r there has been v i r t u a l l y none since war broke out — were shipped through United States f i r m s , b i l l e d as American lumber. Another f a c t which impressed i t s e l f upon me was that the San Francisco firms which do the great bulk of the export business from t h i s Coast are s t e a d i l y going a f t e r the business and g e t t i n g i t . " I must confess i t made me almost indignant when I saw, p r a c t i c a l l y everywhere I went that the lumber, i n c l u d i n g B r i t i s h Columbia 1s product, i s s o l d through United States f i r m s . The importers of the countries d i d not know that any of i t came from t h i s province. We have the raw m a t e r i a l s , but sadly l a c k organization to s e l l i t to the world. Western Lumberman, v o l . 13, (September, 1916), p. 13. 2 3 2 B r i t i s h Columbia, Department of Lands, Forest Branch, Report. 1915, p. G7. 106 c r i s i s , they were able to announce that Imperial purchases of P a c i f i c Coast timber would be r e s t r i c t e d to B r i t i s h Columbia m i l l s , and that orders would be placed through the p r o v i n c i a l government. Mr. MacMillan was able to secure almost immediately from the War O f f i c e the f i r s t order f o r a cargo of timbers and r a i l w a y - t i e s . I n a d d i t i o n , he obtained from the P r i z e Disposal Committee the loan f o r lumber-carrying purposes, of the p r i z e v e s s e l Grahamland, at the F a l k l a n d I s l e s . I t was subsequently chartered to the Cameron Lumber Company of Chemainus. 233 With t h i s beginning, a number of a d d i t i o n a l orders were secured through the S p e c i a l Trade Commissioner, and during the summer the Forest Branch was very a c t i v e l y engaged i n the handling of the business. This promising new s t a r t of the export trade w i t h the United Kingdom was suddenly s t i f l e d , however, by the disastrous s l i d e i n the G a i l l a r d Cut of the Panama Canal i n 191?, and although an attempt was made to carry on by the c o s t l y means of a combined r a i l haul and A t l a n t i c shipment v i a S t. John, f u r t h e r orders were not obtained,, Despite t h i s setback, the B r i t i s h Columbia industry i n the long run p r o f i t e d considerably from the work of the S p e c i a l Commissioner. I n the f i r s t place, he made 2 33 Western Lumberman, v o l . 12, (August, 1915), p. 15 107 the timber brokers of London aware of B r i t i s h Columbia as a source of supply, and, secondly, he opened the eyes of the home ind u s t r y to the effectiveness of v i g o r o u s l y s o l i c i t i n g orders overseas. Most important, perhaps, he himself became aware of the opportunities which awaited the i n d u s t r y i n overseas markets upon the resumption of normal t r a d i n g conditions. That awareness was destined to markedly a f f e c t the h i s t o r y of the lumber in d u s t r y a f t e r 1920, Concurrent w i t h t h i s attempt to break i n t o the United Kingdom market In a l a r g e r way, B r i t i s h Columbia lumbermen were b u i l d i n g up a p r o f i t a b l e i n i t i a l trade w i t h American A t l a n t i c seaboard p o r t s . The G a i l l a r d Cut s l i d e , however, ended that s u c c e s s f u l endeavour too, and when the canal was reopened i n May, 1916, the i n c r e a s i n g l y s 2 3 4 s t r a i n e d war conditions ^ l e f t f a r fewer vessels a v a i l a b l e f o r lumber transport. Fortunately, B r i t i s h Columbia lumbermen recognized the temporary nature of these setbacks, and did not forget the t a s t e of the success they had so b r i e f l y enjoyed i n the B r i t i s h and American A t l a n t i c Coast markets. They waited f o r the day when shipping would no longer be c o n t r o l l e d by war needs and the canal would open a whole new ocean of markets to them. 2 3 4 Western Lumberman, v o l . 13 , (May, 1 9 1 6 ) , p. 1 5 . 108 Apart from securing orders and shipping from B r i t i s h Government departments, Mr. MacMillan i n v e s t i g a t e d the general market f o r Canadian timber i n the United Kingdom, Holland, France, South A f r i c a , and In d i a , and then proceeded to A u s t r a l i a , New Zealand and China. The circumstances of war rendered MacMillan's mission s u c c e s s f u l only to a degree; i t s consequences were not to be r e a l l y f e l t u n t i l a f t e r the cessation of h o s t i l i t i e s , when the province's f i r s t c h i e f f o r e s t e r resigned from the government se r v i c e In order to put i n t o p r a c t i c e some of the plans which c r y s t a l l i z e d on his world tour. In the meantime shipping grew ever more scarce and demand from p o t e n t i a l markets awaited the end of h o s t i l i t i e s . As f a r as most of the B r i t i s h Columbia m i l l s were concerned the export trade remained a r e l a t i v e l y u n f a m i l i a r mystery. At t h i s time the American c o n t r o l of the d i s t r i b u t i o n of B r i t i s h Columbia lumber which had angered MacMillan i n London was being subjected to ever more frequent c r i t i c i s m at home. Many millmen vigorously claimed that the province's export Industry was being s y s t e m a t i c a l l y s t i f l e d by American brokers and t h e i r agents overseas i n order to Increase t h e i r own p r o f i t s . A prominent c i t i z e n summed up the b e l i e f i n t h i s way: There i s no question as to why B r i t i s h Columbia has not had i t s f a i r share of the export trade, the reason i s obvious; B r i t i s h Columbia has had to buy i t s f r e i g h t through i t s competitors i n the United States. A large proportion of 109 the* standing timber i n B r i t i s h Columbia i s American-owned or c o n t r o l l e d , American standing timber has heavy ca r r y i n g charges, A group of f i n a n c i e r s c o n t r o l l i n g both American and B r i t i s h Columbian standing timber would n a t u r a l l y use a l l t h e i r endeavors to cut t h e i r American timber i n preference to t h e i r B r i t i s h Columbia timber. The leading people i n the B r i t i s h Columbia Lumbermen's A s s o c i a t i o n , those who have the ear of the government, and the Boards of Trade, represent m i l l s that are c o n t r o l l e d by American c a p i t a l . These m i l l s get the greatest proportion of the small export trade that B r i t i s h Columbia i s allowed to have. Most of the Britishpowned lumber m i l l s are closed down.23? The Western Lumberman, a p a r t i c u l a r l y outspoken Canadian trade j o u r n a l , doubted that the export m i l l s of B r i t i s h Columbia were p o s s i b l y r e c e i v i n g t h e i r f u l l share of r e c o g n i t i o n , r e f e r r i n g to "the pregnant f a c t that the c o t e r i e of San Francisco brokers, through charters, had only a short time before, given out the information that 'the export m i l l s of B r i t i s h Columbia could be counted on one f i n g e r *. "To say the l e a s t " , the journal continued, " t h i s was an odd blunder f o r them to f a l l i n t o , . seeing that nineteen or twenty of the waterfront m i l l s of the province have membership i n the P a c i f i c Inspection Bureau, f o r the sole reason that they are equipped f o r the export business, and make shipments when opportunity o f f e r s or the state of the market permits. We have seen : > J L e t t e r of Henry Pearce, Western Lumberman, v o l . 13, (May, 1916), p. 29. 110 no c o r r e c t i o n of the mis-statement." 2 3 6 This s i t u a t i o n , which was c e r t a i n l y p r e j u d i c i a l to the i n t e r e s t of the l o c a l industry, was due p a r t l y to h i s t o r i c a l conditions over which l o c a l lumbermen had l i t t l e c o n t r o l and p a r t l y to t h e i r own lack of f o r e s i g h t . The lumber indus t r y of the American Northwest began i n Humboldt County, C a l i f o r n i a , i n 1850 and w i t h i n a very short time grew i n t o an Industry of much more than l o c a l importance. 2 37 By 1870 e n t e r p r i s i n g C a l i f o r n i a n businessmen had b u i l t up a healthy export trade i n redwood and pine, which they shipped to almost every n a t i o n i n the P a c i f i c B asin. Even V i c t o r i a i t s e l f ordered la r g e q u a n t i t i e s of redwood f o r the i n t e r i o r f i n i s h i n g of p u b l i c b u i l d i n g s and the more pretentious homes. This trade centred i t s a c t i v i t y i n San Francis c o , the l a r g e s t c i t y i n the West. By as e a r l y as the middle ' f i f t i e s the timbermen of San Francisco began to extend t h e i r i n t e r e s t to the f i r and spruce f o r e s t s of Washington and Oregon. Washington, w i t h i t s many harbours and p o r t s , was most a t t r a c t i v e , and operations were established as e a r l y as 1855 on Puget Sound and Grays Harbor. So f a r as shipment by water was concerned, the lumber industry of Washington was older than that of B r i t i s h Columbia. Western Lumberman, v o l . 12, (June, 1915)> P. 14. 2 37 P a l a i s , H., and Roberts, E., "The h i s t o r y of the lumber industry i n Humboldt County," i n P a c i f i c H i s t o r i c a l Review, (February, 1950), V o l . XIX, No. 1, p. 1. I l l Some of the pioneer firms established on Puget Sound were s t i l l c u t t i n g i n 1 9 1 5 ? c h i e f l y f o r the water-borne trade, whether coast-wise or export.2 3 ° " ^ e commercial part of t h i s vast i n d u s t r y remained overwhelmingly centred i n San F r a n c i s c o . 2 3 9 During t h i s pioneer period, the American indus t r y e s t a b l i s h e d f o r e i g n connections of value; i t b u i l t i t s own f l e e t s , and some San Francisco firms c o n t r o l l e d a dozen or more v e s s e l s , which, on occasion, served i n the export trade as w e l l as i n the coast trade. Ten to twenty years a f t e r the industry was w e l l established on Puget Sound the B r i t i s h Columbia i n d u s t r y began to be developed. Therefore, the United States enjoyed the advantage over B r i t i s h Columbia of being established e a r l i e r i n the export business, and long and f r i e n d l y acquaintance i n f o r e i g n markets. Lines of trade thus established and maintained were not e a s i l y challenged. The carrying trade remained consolidated very l a r g e l y i n the hands of P a c i f i c Coast vessels c o n t r o l l e d by San Francisco brokers. I t was only n a t u r a l that owners chartered more r e a d i l y , a l l things being equal, w i t h f e l l o w merchants i n San Francisco than w i t h operators i n B r i t i s h Columbia. C e r t a i n expenses could be avoided 5 Western Lumberman, v o l . 12, ( J u l y , 1 9 1 5 ) , p. 14 - 1 5 . 2 3 9 Palmer to Lugrin, (October 1 9 , 1914), McBride Papers. 112 by loading i n the United States instead of i n Canada. Consequently B r i t i s h Columbia exporters paid 1/3d to 2/6d per thousand f e e t higher f r e i g h t f o r a v e s s e l to load i n B r i t i s h Columbia than the same v e s s e l would accept to load i n Washington or Oregon. 2 4 0 Needless to say, t h i s d i f f e r e n c e c o n s t i t u t e d a most serious handicap to the B r i t i s h Columbia industry,, This unfortunate p o s i t i o n i n 1914- was described by the Hon. W. R. Ross, M i n i s t e r of Lands, i n t h i s way: We can only deal w i t h the s i s t e r Dominions of the Empire through'the agency, and by the favor of American brokers, American lumber buyers, American shipping companies. I speak about our cousins across the l i n e i n no u n f r i e n d l y s p i r i t . Their competition w i t h us i s straightforward business. But n a t u r a l l y , they exercise t h e i r l e g i t i m a t e p r i v i l e g e of swinging business to t h e i r own people, and therefore the shipping and s e l l i n g monopoly they have established i n the export lumber business, has become a l i d that s t i f l e s the export trade of t h i s province. When orders from other portions of the B r i t i s h Empire —• from A u s t r a l i a , I n d i a , the United Kingdom —• are sub-contracted to B r i t i s h Columbia m i l l s by San Francisco brokers, instead of being received d i r e c t ; when other orders from the Empire are f i l l e d on the American side without our even hearing of them; when, a f t e r strenuous e f f o r t s , our m i l l s secure the chance of tendering on a few orders, and f i n d themselves condemned to l e t every one go past them to American m i l l s , because they can not get a s i n g l e ship — w e l l , i n such untoward circumstances, I t i s time f o r us to get busy and do something d r a s t i c to secure t h i s trade that r i g h t f u l l y belongs to u s . 2 4 1 2 4 0 Palmer to Lugrin, (October 19, 1914), McBride Papers 241 Western Lumberman, v o l . 12, ( A p r i l , 1915), p. 22. 113 There was' al s o the problem that s e v e r a l of the importers i n A u s t r a l i a , England, and other lands were c l o s e l y a l l i e d w i t h , i f not branch establishments of, those in San F r a n c i s c o . 2 4 2 None of the Canadian m i l l s , w ith the s i n g l e outstanding exception of the Hastings M i l l , had any r e a l knowledge of the export trade. That m i l l had i t s own agents i n A u s t r a l i a and the United Kingdom. 2 4 3 But the f a u l t of B r i t i s h Columbia lumbermen, or at l e a s t t h e i r r e s p o n s i b i l i t y f o r t h e i r p l i g h t , derived from t h e i r short-sighted p o l i c y of re f u s i n g to face these problems f o r two decades, thereby allowing the export market to go by de f a u l t i n favor of the more i n s i s t e n t and temporarily more p r o f i t a b l e trade of the P r a i r i e s . During the same period there was no such extraordinary demand made on American Coast m i l l s by the American P r a i r i e s , so the lumbermen of Washington and Oregon, in a p o s i t i o n to export, were able to step i n and take over much of the trade which B r i t i s h Columbia m i l l s were neglecting i n favor of the home market. Two solutions offered themselves to the problem: the close co-operation of the B r i t i s h Columbia millmen amongst themselves to e s t a b l i s h trade l i n e s , and the establishment of government-subsidized shipping. 2 4 2 Palmer to Lugrin, October 19, 1914, McBride Papers. 2 4 3 west Coast Lumberman, v o l . 73, (September, 1946), p. 100. 114 E. J . Palmer, one of the few millmen who a l l through the previous period of great p r o s p e r i t y had never l o s t s i g h t of the e s s e n t i a l need of a healthy cargo trade, suggested the f i r s t s o l u t i o n : "My idea i s , that the B r i t i s h Columhia lumbermen should get together and s e l l through one agency, each m i l l binding themselves to the amount they w i l l f u r n i s h , charging the same commission as they now pay C a l i f o r n i a brokers, everything i n excess of the amount required f o r a c t u a l expenses, to be expended i n the extension of our markets, i f p o s s i b l e , i n con-j u n c t i o n w i t h the Government." 2 4" 4 Mr. MacMillan, r e p o r t i n g to S i r Richard McBride, on h i s world tour, offered a d d i t i o n a l reasons f o r g i v i n g Palmer's suggestion serious study: "This course of business i s unnecessarily i n d i r e c t , and exposes the Canadian producer both to paying two commissions on p r o f i t s , to making his quotations known to his competitors, and f u r t h e r prevents him from keeping i n touch with the London market. I t i s very advisable that Canadian Douglas f i r producers should consider the a d v i s a b i l i t y of e i t h e r i n d i v i d u a l l y or j o i n t l y , e s t a b l i s h i n g business connections with strong timber agents here, as has been done by American s h i p p e r s . " 2 4 5 Meanwhile, the p r o v i n c i a l government 244 Palmer to Gosnell, (November 2, 1914), McBride Papers. 2 4 5 MacMillan to McBride, 1915? McBride Papers. 115 met the demand f o r subsidized shipping r° by providing a i d to the aggregate amount of two m i l l i o n d o l l a r s to the shipping and the s h i p b u i l d i n g Industries of the province. The b i l l j ^ ' ^ a which Premier Bowser introduced i n the pro-v i n c i a l l e g i s l a t u r e on May 3? 1916, provided f o r the appoint-ment of a board to be known as the Shipping C r e d i t Commission. I t was composed of a superintendent and two d i r e c t o r s , as a S u b s i d i z a t i o n of transport by government was not new to B r i t i s h Columbia. In March, 1907, the governments of Canada and Mexico began to j o i n t l y subsidize a bi-monthly steamship s e r v i c e between Vancouver and S a l i n a Cruz, Mexico. (iT. S. Government, Department of Commerce, Monthly Consular and Trade, Reports, Government P r i n t i n g O f f i c e , Washington, (January, 1907) ,"~p. 110.) These ships c a r r i e d considerable shipments of g r a i n and lumber to Mexican p o r t s . The g r a i n went from alberta to Vancouver by r a i l , by steamer from Vancouver to S a l i n a Cruz, and then over the Tahuantepec R a i l r o a d to ports on the Gulf of Mexico where i t was re-shipped w i t h the lumber by steamer to England. This route was cheaper than the r a i l route from Alberta to St. John and then by steamer to L i v e r p o o l , ( i b i d . , (May, 1909), p. 40.) ,The ironships of t h i s company, the Canadian-Mexican P a c i f i c Coast Steamship Company of Vancouver, were bound by a c r i p p l i n g p r o v i s o . The subsidy was granted only on the con d i t i o n that no c a l l s were made at American ports f o r the purpose of obtaining business or supplies. ( I b i d . , (May, 1907), p. U 9 . ) The company l a s t e d l e s s than a year before i t was taken over by the B r i t i s h Coast Steamship Company, an American-c o n t r o l l e d f i r m w i t h headquarters i n V i c t o r i a . Bound by no agreement with the government, i t continued the service between Vancouver and Mexico, but added Puget Sound lumber towns to i t s ports of c a l l . ( i b i d . , (January, 1908), p. 3.33 •) The subsequent h i s t o r y of t h i s e a r l y sea l i n k between B r i t i s h Columbia and the mother country i s not known. I t i s reasonable to assume, however, that competitors i n Oregon and Washington would do a l l i n t h e i r power to persuade t h i s American company to purchase I t s lumber and cereals i n American ports. After 1910, the company ceased to be a f a c t o r In the province's export trade. 246 a B r i t i s h Columbia, Statutes, B i l l No. 43, 1916, "An act respecting shipping and to make P r o v i s i o n f o r a i d to the s h i p - b u i l d i n g industry i n the Province of B r i t i s h Columbia." body corporate, which had complete c o n t r o l of the administration of the act, and the r e s p o n s i b i l i t y f o r carrying out i t s p r o v i s i o n s . The annual subsidy was paid only to vessels which remained i n the continuous s e r v i c e of B r i t i s h Columbia industry and c a r r i e d cargo from. B r i t i s h Columbia and brought r e t u r n cargoes to 9 AH the province.' - ' Under the b i l l ' s provisions i f a bu i l d e r could not borrow money elsewhere, he could obtain f i f t y - f i v e per cent of his outlay from the pro-v i n c i a l t r e a s u r y . 2 4 8 Immediately a f t e r the enactment of the l e g i s l a t i o n , the Cameron L umber Company Limited, and the Genoa Bay Lumber Company organized a s h i p b u i l d i n g f i r m known as 2 the Cameron-Genoa M i l l s S h i p b u i l d e r s , Limited. " Their f i r s t ship, christened Margaret Haney was launched, on February 3 , 191/. She was i n s t a n t l y chartered to carry a cargo of B r i t i s h Columbia lumber to A u s t r a l i a , Immediately a f t e r the launching of the Margaret Haney, the keel of the West_ern Lumberman, v o l . 13, (June, 1916), p. 26. 2 4 8 I b i d . , v o l . 13, (October, 1916), p. 26. 2 4 9 I b i d . , v o l . 10, (October, 1917), p. 78. 1 1 7 Malahat was l a i d ' down. I n r a p i d succession the ships, Laura Whalen and Esgulmalt were launched and other keels were l a i d i n t h e i r p l a c e s . 2 5 ° On J u l y 1, 1 9 1 7 , another s h i p b u i l d e r , the Foundation Company of B r i t i s h Columbia, L t d . , e s t a b l i shed a yard on the waterfront of V i c t o r i a ' s inner harbor, immediately adjoining the yard of the Cameron-Genoa Company and began the production of a d d i t i o n a l c a r r i e r s . These vessels were u s u a l l y f i v e -masted schooners equipped with a u x i l i a r y gas engines and designed p r i m a r i l y f o r car r y i n g lumber. They were about 2^0 fe e t long, w i t h 44-foot beams, and 21-foot holds. B u i l t at a cost of $140,000, they had a lumber-carrying capacity of 1,500,000 f e e t . 2 ? ! I n Vancouver there was even greater a c t i v i t y i n s h i p b u i l d i n g . I n the years between 1917 and 1 9 2 1 , the shipyards of the province's l a r g e s t c i t y produced 492,000 tons worth $ 8 8 ,000,000, 2? 2 many of them f o r the Canadian Government's Merchant Marine, and many f o r service i n the province's greatest industry. With the end of the war the Canadian Government was p r e v a i l e d upon to i n t e r e s t i t s e l f i n t h i s same problem. In 1919 i t offered subsidies to various l i n e s carrying 2 5 ° Western Lumberman, v o l . 1 0 , (October, 1 9 1 7 ) , p. 8 0 . 2 5 1 I b i d . , v o l . 1 3 , (October, 1 9 1 6 ) , p. 24. 2 5 2 Vancouver Sun, October 8, 1 9 3 2 , p. 4. 1 1 8 Canadian goods from West Coast ports to points i n the Orient and the South P a c i f i c . In t h i s way subsidized shipping played a major r o l e In the establishment of an export trade, and many l i n e s were encouraged to e s t a b l i s h connections. By 1 9 2 2 , the Canadian Robert D o l l a r L i n e s , the Canadian P a c i f i c S. S. Company's Lines and the Canadian Merchant Marine Lines, i n a d d i t i o n to the many smaller companies e i t h e r operated out of Vancouver or made i t a port of c a l l . I n the e a r l y 'twenties, the s e r v i c e of the Canadian Government Merchant Marine became the most important feature of a l l i n the shipping f a c i l i t i e s of B r i t i s h Columbia p o r t s . The monthly services of t h e i r 8,000-ton steamships to p r a c t i c a l l y every f o r e i g n lumber market of the world were of inestimable value to the export lumber trade. 2 5 3 The vessels of t h i s l i n e were operated f o r the b e n e f i t of B r i t i s h Columbia trade on a p r e f e r e n t i a l basis over any other l i n e . In the one month of June, 1 9 2 1 , f o r example, these government ships c a r r i e d t h i r t y - f i v e m i l l i o n f e e t of lumber from B r i t i s h Columbia 2^4-ports to overseas d e s t i n a t i o n s . J Another f a c t o r which aided m a t e r i a l l y i n breaking the stranglehold which American firms maintained on the d i s t r i b u t i o n of B r i t i s h Columbia's lumber indus t r y was the changing character of the wheat-shipping lanes. The 2? 3 Western Lumberman, v o l . 1 9 , (March, 1 9 2 2 ) , p. 3 3 254- West Coast Lumberman, v o l . 40, ( J u l y 1 5 , 1 9 2 1 ) , P. 3 2 . 119 movement of P r a i r i e g r a i n through B r i t i s h Columbia seaports to such offshore markets as the United Kingdom and the Orient grew r a p i d l y a f t e r 1 9 2 1 . The influence of the Panama Canal route i n the movement of Canadian P r a i r i e g r a i n to Europe was the c o n t r o l l i n g f a c t o r i n f o r c i n g t h i s r e c o g n i t i o n of the s t r a t e g i c l o c a t i o n of the Canadian P a c i f i c Coast ports f o r g r a i n shipments. During the war years, the shortage of ocean tonnage precluded the use of the Panama Canal f o r g r a i n shipments j u s t as i t had done f o r lumber shipments, but with the easing of the tonnage problem, a f t e r 1 9 1 9 , advantage could be taken of the opportunity that the Panama offered to cut out the expensive r a i l haul between Alberta points and the Lakehead. Another important f a c t o r was the s h i f t i n the l o c a t i o n of the wheat-producing areas on the P r a i r i e s . I n 1 9 0 7 the wheat-growing centre of the nation l a y i n Manitoba; by 1 9 1 2 i t had s h i f t e d i n t o Saskatchewan and by 1 9 2 8 i t had again moved westward u n t i l Alberta and Saskatchewan together produced ninety percent of the P r a i r i e 1 s wheat. 2 5 5 With every s h i f t of the grain-producing centre westward, i t became more f e a s i b l e to ship v i a P a c i f i c ports rather than v i a the long haul to the Lakehead and A t l a n t i c ports. The r e s u l t was that between 1 9 2 1 and 1 9 2 5 t h i s volume of annual wheat shipments increased from. 1 , 2 5 0 , 0 0 0 bushels to over 5 2 , 0 0 0 , 0 0 0 bushels. In 1 9 2 5 , Vancouver established 2 5 5 "Vancouver and O r i e n t a l Trade", Western Lumberman, v o l . 2 6 , (October, 1 9 2 9 ) , p. 3 0 . 120 I t s claim f o r an e q u a l i z a t i o n of the export g r a i n and f l o u r r ates between Eastern and Western Canadian p o r t s . This claim, granted by the Board of Railway Commissioners, became e f f e c t i v e on September 15, 1925? and Vancouver's future as a great g r a i n port was assured. A gradual increase i n shipments occurred annually, u n t i l i n the 1927-1928 crop year, over eighty m i l l i o n bushels entered world markets through Vancouver alone. The growth of the g r a i n trade had a two-fold e f f e c t on the lumber industry: the new tonnage used to transport the g r a i n gave a r e a l impetus to various commercial a c t i v i t i e s of the province, thereby s t i m u l a t i n g the lumber i n d u s t r y ; a n ^ } more important, i t made a v a i l a b l e a continuous stream of cargo vessels to Vancouver. Grain offered a very great inducement f o r regular steamship l i n e s to e s t a b l i s h themselves in. Vancouver and New Westminster, as a p a r t i a l cargo of t h i s c e r e a l could be depended upon f o r a greater part of the year. In the e a r l y stages of the g r a i n t r a f f i c , the bulk of shipments moved by f u l l cargoes i n tramp steamers, but, a f t e r 1923, regular l i n e s and tramp steamers grew more and more 257 i n t e r e s t e d i n g r a i n transport. 2 5 ° see H ansuld, Geo., "How the lumber trade i s af f e c t e d by the g r a i n trade of the P a c i f i c Northwest", Western Lumberman, v o l . 26, ( J u l y , 1929), p. 12. 257 J L o c . c i t . The a v a i l a b i l i t y of g r a i n shipments played a v i t a l part i n brin g i n g about lower rates f o r shippers of lumber and other kinds of cargo, f o r ship owners could complete t h e i r cargoes with bulk g r a i n at any season of the year. The i d e a l cargo f o r a tramp steamer was two thousand to three thousand tons of bulk wheat i n the lower holds, completed w i t h lumber between decks, and a deck load of lumber, timbers, or logs. This combination created buoyant b a l l a s t and soon became the i d e a l revenue earner. The movement of g r a i n through Vancouver a l s o brought to the industry a c o n t i n u a l supply of empty box cars to carry eastbound lumber shipments: an advantage which was accepted without the gratitude that i t would have e l i c i t e d two decades e a r l i e r . Concurrent with the establishment of a continual supply of ships was the organization of home-controlled s e l l i n g o r ganizations, which gave f o r e i g n buyers d i r e c t contact w i t h B r i t i s h Columbia exporters. The f i r s t such or g a n i z a t i o n was established e a r l y i n 1914. I t was the Canadian Trading Co., Ltd. , of Vancouver, an offshoot of the Douglas-Fir E x p l o i t a t i o n & Export Co., of San Francisco. I t s agents offered to buy on a yea r l y contract a l l the lumber the B r i t i s h Columbia m i l l s were prepared to export. They offered to pay the market p r i c e as long as i t was not i n excess of the p r i c e then being paid by 122 the Douglas F i r E x p l o i t a t i o n & Export Co. The V i c t o r i a Lumber & Manufacturing Co. Limited of Chemainus; the Cameron Lumber Co. Limited of V i c t o r i a ; the Genoa Bay-Lumber Co. Limited of Genoa Bay; the Canadian Western Lumber Co. Limited of Fraser M i l l s ; and the Vancouver Lumber Co. Limited of Vancouver accepted the o f f e r ; other mill-owners, however, preferred to e i t h e r look a f t e r t h e i r own export business or to continue to give t h e i r e n t i r e a t t e n t i o n to the P r a i r i e and Eastern markets.2 5 8 This promising s t a r t was foredoomed to f a i l u r e . The war and the consequent shortage of tonnage disturbed the arrangement and the l i t t l e tonnage a v a i l a b l e to the lumber trade was d i v e r t e d by the American parent o r g a n i z a t i o n to American m i l l s , and B r i t i s h Columbia m i l l s got along as best they could. The f i r s t s u c c e s s f u l l a r g e - s c a l e attempt at co-operation occurred f i v e years l a t e r , when, i n 1 9 1 9 , S i r James B a l l , the B r i t i s h timber c o n t r o l l e r , v i s i t e d B r i t i s h Columbia and presented l o c a l lumbermen with an opportunity that was u l t i m a t e l y to r e v o l u t i o n i z e the industry and change i t s whole marketing a t t i t u d e . The railways of Great B r i t a i n , s t r a i n e d and worn by f i v e years of war-time s e r v i c e , required the quick d e l i v e r y of large 2 5 8 Western Lumberman, v o l . 1 5 , (December, 1 9 1 8 ) , p. 41, 123 q u a n t i t i e s of timbers and t i e s , and S i r James proposed p l a c i n g an order w i t h the B r i t i s h Columbia government f o r seventy m i l l i o n f e e t . No s i n g l e m i l l would undertake to supply such an order w i t h i n the time l i m i t and S i r George refused to d i v i d e the order up and make separate contracts w i t h as many d i f f e r e n t m i l l s . Several con-ferences were held w i t h the Hon. T. D u f f e r i n P a t t u l l o , M i n i s t e r of Lands, which f i n a l l y r e s u l t e d i n the adoption of a plan to organize a corporation to act as sales agent f o r a l l the manufacturers taken i n as shareholders. No person or company was admitted as a shareholder unless he was a c t i v e l y engaged i n lumber manufacturing. The formation of the Associated Timber Exporters of B r i t i s h Columbia Limited was completed on March 27, 1919. This organization, accepted an order f o r seventy m i l l i o n f e e t of r a i l r o a d t i e s f o r the commissioner and f i l l e d i t i n a manner s a t i s f a c t o r y to the purchasers and to the m i l l s concerned. The su c c e s s f u l execution of t h i s order, more than any other s i n g l e f a c t o r , served to give s e l f -assurance to the indust r y i n i t s determination to trade i n the markets of the world as an industry independent of i t s American counterpart. The organization continued th e r e a f t e r to handle orders which would have been beyond the capacity of any one m i l l to f i l l . By f a r the lar g e r 259 Western Lumberman, v o l . 18, (October, 1921), p. 25. 124 number of export' m i l l s became members of the a s s o c i a t i o n , and a l l channeled t h e i r export business through i t . As other m i l l s grew i n t e r e s t e d i n the overseas trade, the o r g a n i z a t i o n expanded and sought more markets i n which to s e l l i t s product. In a very few years, sales were being made to n e a r l y every country i n the world. As a r e s u l t of t h i s sales expansion the m i l l s which owned Associated Timber Exporters of B. C., Limited, organized Seaboard Lumber Sales i n 1 9 2 8 . I t was formed to organize water shipments to the A t l a n t i c Coast of the United States along w i t h the Marine Shipping Co., Limited, which was to provide f r e i g h t f o r the movement of the lumber. 2^ 0 In 1 9 3 7 the Associated Timber Exporters and Seaboard Lumber Sales Co. amalgamated under the Seaboard name. By 1 9 5 2 , when the lumber d i v i s i o n of the giant Alaska Pine and. C e l l u l o s e L t d . , joined the organization, i t was, with the p o s s i b l e exception of the Russian government-owned timber agency, the l a r g e s t lumber export sales and shipping company i n the w o r l d . 2 ^ 1 With a membership of f o r t y sawmills i t c o n t r o l l e d an annual output of more than 1 . 1 b i l l i o n board f e e t . B r i t i s h Columbia Lumberman, v o l . 2 3 , (September, 1 9 3 9 ) , p. 5T. 2 6 1 I b i d . , v o l . 49, (March, 1952), p. 76. 125 The other great exporting f i r m e s t a b l i s h e d i n the period was that of H. R. MacMillan. In 1916, Mr. MacMillan l e f t the s e r v i c e of the Canadian government to become A s s i s t a n t Manager of the V i c t o r i a Lumber Manu-f a c t u r i n g Company. Then, encouraged by the co-operation of Montague Meyers, one of England's best-known timber buyers, he founded his own f i r m , the H. R. MacMillan Export Company, i n Vancouver. 2^ 2 MacMillan and Meyers soon discovered that the f i v e most s u b s t a n t i a l importers i n the United Kingdom refused to recognize them. They, embarked, therefore, on a p o l i c y of s e l l i n g lumber d i r e c t l y to anyone i n the United Kingdom who would buy. After that, the MacMillan company r a p i d l y became a leading f a c t o r i n the export trade. In one perhaps representative, seven-day period i n September, 1921, i t received orders t o t a l i n g t h i r t e e n m i l l i o n f e e t of lumber from the B r i t i s h Admiralty Shipyards, from C a l i f o r n i a , from China, Japan, New Zealand and A u s t r a l i a . 2 ^ 4 During the next f i f t e e n years the H. R. MacMillan Export Company b u i l t up a l u c r a t i v e trade, with as many as f i f t y - o n e ships under charter at one time to i t s subsidiary, the Canadian Transport Company. "West Coast giant", Saturday Night, v o l . 69, (February 18, 1956), p. 37. 1 2 6 The f i r s t " market s e r i o u s l y considered by the lumbermen encouraged by S i r James B a l l ' s huge order i n 1919 was A u s t r a l i a , the s i s t e r Dominion, A u s t r a l i a had been the mainstay of the Coast business i n the e a r l y days of Stamp and the Hastings M i l l . In 1894, f o r example, t h i r t y - f i v e per cent of A u s t r a l i a ' s imports of lumber from the P a c i f i c Northwest o r i g i n a t e d i n B r i t i s h Columbia, 2 6 5 but the province's obsession with the P r a i r i e market had caused i t s share to dwindle to three per cent by 1914. A u s t r a l i a now became a h i g h l y prized market, fo r i n a d d i t i o n to her t r a d i t i o n a l consumption of large q u a n t i t i e s of B a l t i c timber, she was buying very large shipments of timber from C a l i f o r n i a , Oregon and Washington. American exporting companies were i n almost com-p l e t e possession of the A u s t r a l i a n market f o r P a c i f i c Coast lumber. The problem was to dislodge them. The formation of Canadian trading companies w i t h agents i n A u s t r a l i a was e s s e n t i a l , f o r , as Mr. MacMillan pointed out, Canadian exporters operated at a disadvantage as long as they quoted i n the A u s t r a l i a n market through the agents of t h e i r American competitors. Accordingly the l o c a l industry set up i t s own marketing o f f i c e s i n A u s t r a l i a . The combination of 2^5 Western Lumberman, v o l . 16, (January, 1919), p. 42 2 6 6 . , Lft.c^ ®it. 1 2 7 government-subsidized shipping and independent marketing won almost immediate r e t u r n s . Within four years l o c a l m i l l s were supplying from t h i r t y per cent to forty-two per cent of A u s t r a l i a ' s demands of Douglas- and had deprived Oregon and Washington m i l l s of much of t h e i r custom i n the s i s t e r Dominion. By 1924, so w e l l -e s t a b l i s h e d were the shipping routes w i t h A u s t r a l i a that the Canadian government decided that i t s s u b s i d i z a t i o n of transport to A u s t r a l i a was no longer e s s e n t i a l . I t cancelled i t s subsidy with disastrous consequences. B r i t i s h Columbia's share i n A u s t r a l i a ' s imports from the P a c i f i c Coast region f e l l i n the next four years to seventeen per cent, t h i r t e e n per cent, f i f t e e n per cent and t h i r t e e n per c e n t o 2 ^ 8 The c h i e f d i f f i c u l t y before the exporter of B r i t i s h Columbia lumber to A u s t r a l i a was the lack of r e t u r n cargoes. B a l t i c lumber was sold i n A u s t r a l i a at a p r i c e lower than B r i t i s h Columbia's despite the longer distance i t was c a r r i e d , simply because the ships c a r r i e d p r o f i t a b l e f r e i g h t s both going and coming: taking c o a l from England to the B a l t i c provinces, lumber from the B a l t i c to A u s t r a l i a , and r e t u r n i n g 2 ^ with meat and wool 2 6 7 Timberman, v o l . 3 0 , (December, 1928), p. 2 6 . 2 6 8 I b i d . , p. 24. 2 6 9 I b i d . , p. 2 6 . 128 f o r the United Kingdom. Only a p r e f e r e n t i a l t a r r i f or a ship subsidy would allow B r i t i s h Columbia to meet the p r i c e s made p o s s i b l e by t h i s t r i a n g u l a r trade p a t t e r n . H. R. MacMillan took a leading part i n the a g i t a t i o n f o r a r e t u r n of the subsidy, his argument, being that the lack of a d i r e c t f r e i g h t s e rvice between Canada and A u s t r a l i a , was once again d r i v i n g the lumber trade w i t h A u s t r a l i a i n t o the hands of the American producers, who could compete with the B a l t i c i n d u s t r y . 2 ? 0 He pointed out that the united States government subsidized various American t r a n s - P a c i f i c shipping services to the extent of more than f i v e m i l l i o n d o l l a r s a year, and that that made competition beyond the resources of B r i t i s h Columbia p r i v a t e i n t e r e s t s . The Dominion government heeded the argument, and i n 1929 the House of Commons passed an estimate of eight hundred thousand d o l l a r s to subsidize a lumber-carrying steamship s e r v i c e from B r i t i s h Columbia ports to A u s t r a l i a , and several coast shipping companies, notably the H. R. MacMillan Export Co. f i l e d bids f o r the c o n t r a c t . 2 7 1 Finding h i s b i d s u c c e s s f u l , MacMillan formed the B r i t i s h Columbia-Australia Shipping Company, which operated i n 2 7 0 Western Lumberman, v o l . 16, (January, 1919), p. 42. 2 7 1 Timberman, v o l . 3, (January, 1929), p. 137. 129 conjunction with' the H. R. MacMillan Export Company. They received a f e d e r a l subsidy of ten thousand d o l l a r s a c a r g o . 2 ? 2 The only other subsidy paid by the Canadian government on the P a c i f i c Coast was that made to the Canadian-Australia Royal M a i l Line, which received $115?000 a year. This company, however, anxious to earn the maximum p r o f i t , catered almost e x c l u s i v e l y to passengers and general cargo, and i n 1928 c a r r i e d only eight m i l l i o n f e e t of lumber,-73 Japan was the next l o g i c a l choice upon which l o c a l exporters set t h e i r s i g h t s . That nation was no newcomer to the l o c a l market, having o c c a s i o n a l l y placed large orders In the province since the turn of the century when the Canadian P a c i f i c Lumber Company cut large q u a n t i t i e s of lumber f o r the c o n s t r u c t i o n of r o l l i n g stock f o r the Manchurian Railway. 2? 4" In 1920, trade channels with Japan were s t i l l of a very minor nature as the war had disrupted the normal a c t i v i t y and Japan was now going-through the severe post-war economic depression that a f f e c t e d a large part of the world. The p i c t u r e , however, was suddenly and completely changed, by one of the worst earthquakes i n the h i s t o r y of 2 7 2 Tlmberman, v o l . 3 , (January, 1929), p. 137. 2 ? 3 L o c . c i t . 2 7 4" Lumberman and Contractor, v o l . 4, ( J u l y , 1907), p. 13. 1 3 0 the nation. The' earthquake, which occurred on September 1, 1923j was followed by a t i d a l wave and by f i r e which a l l but completely destroyed the c i t i e s of Tokyo and Yokohama. I t was estimated that almost 400,000 houses were destroyed i n these two c i t i e s alone, and that 1,382,310,000 f e e t of lumber would be needed to r e b u i l d them. Unable to buy more than h a l f of her requirements i n the American market, Japan turned more than she would have otherwise done to B r i t i s h Columbia's m i l l s . A l m o s t at one leap Japan became one of the Indus t r y ' s most important customers, buying over a b i l l i o n f e e t between 1924 and 1926. This enormous demand sent p r i c e s up to near wartime heights, with the e f f e c t of f o r c i n g the Japanese to look f o r new sources of supply. In t h e i r extremity they turned to S i b e r i a , an area from which they had, u n t i l them, imported only the smallest q u a n t i t i e s . There, i n 1 9 2 5 , w i t h the permission of the Soviet a u t h o r i t i e s , they began the e x p l o i t a t i o n of the Eastern S i b e r i a n f o r e s t s . I t i s d i f f i c u l t to a s c e r t a i n to what extent the f a l l i n g o f f of Japanese demand a f t e r 1928 was due to the e x p l o i t a t i o n of the S i b e r i a n f o r e s t s , f o r the world was entering a period of severe economic depression i n t o which Japan was i n e v i t a b l y drawn. However, i t can be assumed 2 7 5 Western Lumberman, v o l . 2 1 , (December, 1924), p. 1 1 . 131 that a f a i r part'of Japan's supply was drawn from the Soviet region, at l e a s t u n t i l Japan's attack upon Manchuria, China's northern province. A f t e r 1931, with Japan i n more and more c o n t r o l of Manchuria's n a t u r a l resources, Fanchurian lumber went f a r to s a t i s f y her requirements and she ceased to buy more than minute q u a n t i t i e s i n the B r i t i s h Columbia market. For a long time i t had been f e l t that with the end of the war P a c i f i c Coast lumber would immediately invade the Eastern Seaboard of the United States v i a the Panama route. That t h i s Invasion d i d not Immediately occur cannot be a t t r i b u t e d to any laxness on the part of the Dougl a s - f i r producers, but rather to the f a c t that they could not at f i r s t compete i n the Northern markets wi t h the pine shipments from the Southern States. However, by the middle of 1922, r a i l shipments from the South i n t o the New York d i s t r i c t began to f a l l o f f 2 7 6 " owing to the growing- s c a r c i t y of Southern stumpage, and water ship-ments of Douglas-fir began to move through the Panama onn Canal from the P a c i f i c Northwest, ' 1 2 7 6 Timberman. v o l , 23, (October, 1922), p. 135. 2 7 7 In 1921 a t o t a l of 500,000,000 feet of timber from B r i t i s h Columbia, Washington and Oregon, was shipped through the Panama Canal to the A t l a n t i c seaboard, and i n 1925 the t o t a l was t r i p l e d . I b i d . , v o l . 30 , (February, 1927), p. 206. 1 3 2 While the United States attempted to meet i t s tremendous post-war housing shortage, B r i t i s h Columbia m i l l s enjoyed one great advantage over t h e i r competitors i n Washington and Oregon: f o r e i g n vessels were excluded by American law from c a r r y i n g cargoes between United States por t s . Consequently American shipowners, freed from f o r e i g n competition charged high r a t e s . There was a margin of $ 3 . 2 5 per ton i n favor of vessels p l y i n g between Vancouver and New York over American vessels running from. S e a t t l e . 2 7 8 The B r i t i s h Columbia millman could, therefore, land h i s product i n New York at about two-thirds the cost faced by h i s S e a t t l e counterpart. The consequence of t h i s d i s p a r i t y was immediate and s t a r t l i n g . Export f i g u r e s of the waterborne lumber from B r i t i s h Columbia to the United States i n those f i r s t years leaped from 4,164 ,845 f e e t i n 1 9 2 0 , to 326,313,841 f e e t i n 1 9 2 5 , 2 7 9 and f o r the f i r s t time i n the h i s t o r y of the l o c a l i n d u s t r y the United States became by f a r i t s most important customer. Not a l l of t h i s huge production, however, was destined, f o r the Eastern Seaboard. A l e s s e r part of i t contributed to the meteoric r i s e of the c i t y of Los Angeles, and the general expansion of other Southern C a l i f o r n i a c i t i e s . The r i s e of Los Angeles constituted one of the 2 7 8 Western Lumberman, v o l . 11, (February, 1914), p. 42, 2 7 9 Tlmberman, v o l . 2 7 , (March, 1926), p. 58. 1 3 3 most remarkable phases of the growth of Southern C a l i f o r n i a . I n 1920 Los Angeles harbor used 5 6 2 , 3 8 5 , 1 5 7 f e e t of lumber-, In 1 9 2 3 i t handled 1 , 0 8 6 , 8 2 8 , 6 0 0 feet and i n 1 9 2 6 the lumber r e c e i p t s were estimated at upward of 1 , 2 1 4 , 5 0 2 , 6 0 0 f e e t . 2 8 0 Most of t h i s production came from American m i l l s i n Washington and Oregon, but B r i t i s h Columbia m i l l s were al s o involved. For example, i n 1922, the Los Angeles S h i p b u i l d i n g & Drydock Corporation amalgamated with the Massett Timber Company Limited of B r i t i s h Columbia, the Puget Sound Box Company, Ltd. „ of S e a t t l e , and the Western Marine Supply Co., to form a corporation c a p i t a l i z e d at . $ 1 0 , 0 0 0 , 0 0 0 . 2 8 1 This new or g a n i z a t i o n operated lumber m i l l s of a l l kinds, a f l e e t of lumber vessels and many other a l l i e d a c t i v i t i e s . The Masset Timber Company Limited, the l a r g e s t of the B r i t i s h Columbia parts of the f i r m , held the logging r i g h t s to 1 1 0 , 0 0 0 acres of standing timber on Graham Isl a n d , which were declared by experts to be the f i n e s t s i n g l e t r a c t on the American continent. The Los Angeles end of the giant undertaking owned a seventy-acre plant at Los Angeles. Logs were cut and rough-sawn on Graham Isl a n d , and the product was sent to the shipyard plant i n Los Angeles, where a large area of the yard 1s unused water 2 8 1 Loc. c i t . 2 8 2 Loc. c i t . 134 frontage was converted i n t o a lumber yard, and where modern sawmills of large capacity were erected to f i n i s h and dress the lumber f o r the market<>283 i n t h i s way a very large trade between the two c o a s t a l points was b u i l t up. In 1 9 2 3 } f o r example, C a l i f o r n i a imported f i f t y m i l l i o n f e e t of B r i t i s h Columbia lumber, three times the quantity exported to the United Kingdom. 2 8 4 The Eastern Seaboard, however, remained the most c o n s i s t e n t l y s a t i s f a c t o r y market. The demand f o r p i t props i n the coal f i e l d s , f o r lumber to s a t i s f y the F l o r i d a r e a l - e s t a t e boom, and f o r new housing g e n e r a l l y , c o n s t i t u t e d the most dependable market of the era. I n 1 9 2 9 , the year of the great economic crash, B r i t i s h Columbia disposed of ninety per cent of i t s shingle output and between f i f t y per cent and s i x t y per cent of i t s lumber to these United 2 8 ^ States markets. y With the f a c i l i t y offered by the Panama Canal route, large q u a n t i t i e s of l o c a l timber were a l s o shipped to Montreal and Quebec. In Montreal, s p e c i a l equipment was i n s t a l l e d on the docks to handle the large dimensions •of the Coast f o r e s t s . From Montreal much of the imported lumber found i t s way i n t o Ontario. In f a c t , so large Tlmberman, v o l . 28,.(November, 1926), p. 148. 4 I b i d . , v o l . 2 5 , (February, 1924), p. 1 2 9 . '5 I b i d . , v o l . 3 0 , (January, 1 9 29^ p. 1 3 7 . 135 were shipments made i n t h i s way that lumber manufacturers of that province appealed to the p r o v i n c i a l government f o r p r o t e c t i o n . I t responded with an order s t i p u l a t i n g that only Ontario lumber could be used In government contracts, and I t I n s t i t u t e d a campaign f o r the promotion of l o c a l lumber i n preference to the Coast product, but beyond that point i t could not proceed. B r i t i s h Columbia lumber continued to use the a l l - s e a route through the Panama to f l o o d Eastern Canada wi t h a quantity of lumber almost equal to that which she exported to the American Eastern Seaboard. By 1929 the goal of the B r i t i s h Columbia industry had been l a r g e l y achieved. Lumbermen could point to a reasonably healthy home market, .which consumed 210 m i l l i o n f eet of l o c a l lumber; Eastern Canada and the P r a i r i e s used another 830 m i l l i o n ; 580 m i l l i o n were shipped by water to C a l i f o r n i a and the Eastern Seaboard; and another 400 m i l l i o n were d i s t r i b u t e d between the United Kingdom, A u s t r a l i a and other overseas markets. B r i t i s h Columbia had obviously won the struggle f o r a cargo trade Independent of American c o n t r o l . Whether she could r e t a i n that trade i n the face of the Impending world-wide economic depression was another matter. In 1929 there occurred on Wall Street the crash of stocks which ushered i n a f u l l decade of economic 136 depression f o r most of the world. Within two years the b u i l d i n g trade of the world was paralyzed; the consumption of lumber on the American continent tumbled to the lowest point since 1869; and the production of lumber i n North America f e l l by seventy-five per cent to the lowest point since 1 8 5 9 . 2 8 ^ Not only was Coast production reduced by approximately s i x t y per cent, but the p r i c e of lumber dropped i n the year 1932 to le s s than h a l f the average of the preceding seventeen years. I n the f i v e - y e a r period between 1930 and 193 5 > many operators both large and small were forced to discontinue operations, and many others worked on reduced time s c h e d u l e s . 2 8 7 Other plants reduced wages from t h i r t y to f o r t y per cent to maintain operations. ~- / An a d d i t i o n a l blow to the indust r y came i n the d e c i s i o n of the twenty leading timber importers of the United Kingdom to combine f o r the f i r s t time to purchase the e n t i r e exportable timber supply of the Soviet Union f o r 1929. The agreement involved payment to Russia of f i f t y m i l l i o n d o l l a r s and was one of the l a r g e s t trans-actions made with the Soviet Union since the r e v o l u t i o n of 1917 .288 2 8 6 MacMillan, H. R., "The lumber s i t u a t i o n i n B r i t i s h Columbia", B r i t i s h Columbia Lumberman, v o l . 18, (October, 1934), p. 15* 2 8 7 I b i d . , v o l . 14, (November, 1 9 3 0 ) , p. 13. 2 8 8 Tlmberman, v o l . 3 0 , (January, 1 9 2 9 ) , p. 2 1 . 137 At t h i s time the Russian Government had embarked, upon i t s f i r s t f i v e - y e a r plan to i n d u s t r i a l i z e the Soviet Union, and, i n accordance with i t s plan, contracted w i t h other nations to supply raw and near-raw materials fo r the necessary currency with which to purchase i n d u s t r i a l machinery from the West. Her f i r s t such agreement, wi t h Japanese lumber i n t e r e s t s f o r the e x p l o i t a t i o n of f a r Eastern S i b e r i a n f o r e s t s , deprived B r i t i s h Columbia of the Japanese market, and i t s second one threatened the province's lumber trade with Great B r i t a i n . In the f o l l o w i n g year the Soviet Union appeared i n the r o l e of serious competitor against the P a c i f i c northwest as a shipper of doors to the United Kingdom. 2 89 To have met the p r i c e f o r doors quoted by the Russians would have been ruinous f o r West Coast m i l l s , while p r i c e was not an o v e r r i d i n g consideration w i t h the Soviet Union,, Throughout A u s t r a l i a , Hew Zealand and Southeast Asia depression p r e v a i l e d , and orders from those regions dwindled to a f r a c t i o n of t h e i r former volume. In a d d i t i o n , the P r a i r i e s suffered from a curtailment of wheat s a l e s , which rendered t h e i r purchases of lumber almost n e g l i g i b l e . But perhaps the roost severe blow of a l l came i n the form West Coast Lumberman, v o l . 57 > (December, 1930), p. 56* 138 the Smoot-Hawley' t a r i f f , which e f f e c t i v e l y excluded B r i t i s h Columbia's lumber from the United. States. This t a r i f f , designed to protect American i n d u s t r i e s from competition with f o r e i g n sources i n the home market, became law on J u l y 1, 1932. This Congressional a c t i o n v i r t u a l l y shut out B r i t i s h Columbia lumber from the United S t a t e s , thereby marking the bottom of the slump i n the in d u s t r y . I t was the worst year since that year of c r i s i s , 1914. Under these unfavorable circumstances i t became necessary once again to attempt to repeat the performance of b u i l d i n g almost from nothing a new market f o r B r i t i s h Columbia's lumber. This was no easy task i n a time of world-wide depression, when i n t e r n a t i o n a l trade was d e c l i n i n g and i n t e n s i f i e d nationalism was erecting trade b a r r i e r s i n the form of higher import d u t i e s , quotas and other r e s t r i c t i o n s . Facing the curtailment of t h e i r American market and recognizing the nature of the new and p e c u l i a r Soviet competition, B r i t i s h Columbia lumbermen prepared to make the strongest bid ever attempted f o r the lumber trade of the United Kingdom. The United Kingdom was the greatest lumber importing country i n the world, r e q u i r i n g over t h i r t y - t h r e e b i l l i o n f eet a year. I f that market could be captured or even shared i n a reasonable way with the other great producing areas, the problem of the 139 province's f i r s t i n d u s t r y would be l a r g e l y solved. The f i r s t opportunity to carry out t h i s resolve came i n J u l y 1932, when the representatives of Great B r i t a i n and the Dominions, met i n Ottawa i n order to f i n d some s o l u t i o n to the general economic impasse i n which t h e i r r e s p e c t i v e nations found themselves. They agreed that the only hope f o r s o l u t i o n l a y i n increased i n t r a -Commonwealth trade encouraged by i m p e r i a l preferences. The s i g n i f i c a n c e of B r i t a i n ' s abandonment of her t r a d i t i o n a l p o l i c y of fre e trade to B r i t i s h Columbia lumbermen l a y i n the ten per cent preference which Great B r i t a i n agreed to accord to lumber from the Dominions. This d e c i s i o n gave B r i t i s h Columbia m i l l s the a c t u a l r e f u s a l of a l l business that came to the P a c i f i c Northwest. I t meant that Washington and Oregon m i l l s could not ser-i o u s l y compete i n any lumber product that the B r i t i s h Columbia m i l l s could supply. I n e f f e c t , ships it hat formerly took cargos out of Portland, Oregon, f o r the B r i t i s h I s l e s , but could not a f f o r d to load a cargo In Vancouver at the same r a t e s , now found i t more p r o f i t a b l e \ to load i n B r i t i s h Columbia. The ten per cent preference did not prove large enough, however, to dislodge the B a l t i c and Russian products from United Kingdom markets. The Canadian Industry, therefore, requested/a preference of at l e a s t twenty per cent. Great B r i t a i n did not agree but instead, 140 i n accordance with A r t i c l e 21 of the Ottawa trade agree-ment, imposed an embargo on Soviet lumber. This a r t i c l e read: 'This agreement i s made on the express c o n d i t i o n that i f e i t h e r government i s s a t i s f i e d that any p r e f e r -ences hereby granted, are l i k e l y to be f r u s t r a t e d by the c r e a t i o n or maintenance d i r e c t l y or i n d i r e c t l y , of p r i c e s f o r such classes of commodities, through stat e a c t i o n on the part of any f o r e i g n country, that Govern-ment hereby declares that i t w i l l p r o h i b i t the entry from such f o r e i g n country such commodities i n t o i t s country, f o r such time as may be necessary to make e f f e c t i v e and to maintain the preferences, hereby granted to i t . ' 2 9 0 The B a l t i c region now remained the Canadian i n d u s t r y ' most serious competitor i n the United Kingdom, and i n the Commonwealth and Empire. This formidable competition was based upon ample, s a t i s f a c t o r y and a c c e s s i b l e f o r e s t resources, f i r s t - c l a s s machinery, high-grade management, competent labor at under f i f t e e n cents per hour, and a f r e i g h t haul averaging only one thousand miles to the United Kingdom market, as compared with B r i t i s h Columbia's nine thousand miles.291 j n consequence of t h i s f o r t u i t o u s 2 9 0 Great B r i t a i n , Imperial Economic Conference at Ottawa, 1932, Summary of proceedings and copies of trade agreements, Cmd. • 4174, pp. 22-23. 291 B r i t i s h Columbia Lumberman, v o l . 18, (October, 1934), p. 1?. 141 combination of f a c t o r s shipments of 81,000,000 f e e t to the United Kingdom i n 1931 grew to 455,000,000 f e e t i n 1934, ' and continued at a high p i t c h u n t i l a f t e r the outbreak of World War 2. This great consumption of lumber i n Great B r i t a i n i n the depression decade was based on the d e c i s i o n of the B r i t i s h government to a i d slum clearance and to subsidize l a r g e - s c a l e housing development p r o j e c t s . In 1937 and 1938 alone, housing s o c i e t i e s b u i l t four m i l l i o n houses w i t h government aid, 293 i n 1938, a f t e r Chamberlain returned from Munich, B r i t a i n added to her normal demands by constructing vast numbers of a i r - r a i d s h e l t e r s f o r use i n the coming struggle w i t h Germany. Each one used f i f t e e n thousand f e e t of lumber. The Ottawa Agreements having been renewed i n 1937, the B r i t i s h market remained the very backbone of the province's export i n d u s t r y u n t i l the outbreak of war i n 1939. As one leading exporter phrased i t : "We are as much a par t of B r i t i s h trade economics as Yorkshire. Whether we l i k e i t or not, we have placed a l l our eggs i n one basket, and we had b e t t e r watch the basket. Otherwise, a l l i s l o s t . " 2 9 4 292 Timberman, v o l . 37, (December, 1935), p. 40. 2 9 3 West Coast Lumberman, v o l . 74, (October, 1947), p. 97. 294 Mr. H. R. MacMillan. quoted i n : West Coast Lumberman, v o l . 65, (May, 1938;, p. 74. 142 The second important market to be captured from Oregon-Washington competition, was A u s t r a l i a . A u s t r a l i a used 800,000,000 feet of lumber annually, of which l e s s than 40,000,000 f e e t came from Canada i n an average year. The large?part was supplied c h i e f l y by Oregon, Washington, and the B a l t i c s t a t e s . In 1929 B r i t i s h Columbia lumbermen, despatched a delegation of able lumbermen to A u s t r a l i a who had arranged an agreement between Canada and A u s t r a l i a , and l a t e r with New Zealand, that gave Canada a p r e f e r e n t i a l of one A u s t r a l i a n pound (then about $5) , a thousand feet on f i r , and one-half of that amount on hemlock. Immediately trade w i t h A u s t r a l i a s h i f t e d from American m i l l s to B r i t i s h Columbia m i l l s . The Ottawa agreements of the next year assured the p o s i t i o n of B r i t i s h Columbia i n the A u s t r a l i a n market by according her the same preference she enjoyed i n the United Kingdom. As a r e s u l t , exports to A u s t r a l i a grew r a p i d l y from 41,000,000 fe e t i n 1929, to 158,000,000 i n 1937, and B r i t i s h Columbia's share i n the t o t a l export of lumber from the P a c i f i c Coast to the A u s t r a l i a n market, rose from s i x t e e n per cent i n 1929 to ninety-two per cent i n 1934. Not a l l of the A u s t r a l i a n trade took the form of 2 9 5 ?fest Coast Lumberman, v o l . 63, (May, 1936), p. 38 . 143 sawn lumber, the' form i n which lumbermen pr e f e r to export lumber. In order to encourage lumber manufacturing i n A u s t r a l i a and to provide employment f o r A u s t r a l i a n s , low import duties were imposed on B r i t i s h Columbia logs. A u s t r a l i a n sawmills, u s u a l l y equipped w i t h modern American .sawmill machinery, were erected In Sydney, Brisbane and other c i t i e s , to manufacture lumber from Douglas-fir logs imported from B r i t i s h Columbia. Probably seventy-five per cent, of the f i r lumber used i n A u s t r a l i a was manu-factured i n A u s t r a l i a n sawmills under such conditions. 2 9 6 Having already captured eighty-three per cent of the P a c i f i c Coast trade with Great B r i t a i n , B r i t i s h Columbia now reached the premier p o s i t i o n i n timber exports from the P a c i f i c Coast. F i f t y - f i v e per cent of a l l shipments made from the P a c i f i c Coast ports i n 1934 were made from p r o v i n c i a l p o r t s ; while i n 1936 they accounted f o r s i x t y -seven per c e n t . 2 9 8 Several factors besides t a r i f f preferences were responsible f o r t h i s remarkable achievement; subsidized shipping allowed the industry increased d i s t r i b u t i o n ; the aggressive salesmanship of the large exporting firms was e a s i l y the equal of that of i t s American competitors; the co-operation of both Timberman, v o l . 36, (March, 1935), p. 7. 2 9 7 West Goast Lumberman, v o l . 63, (May, 1936), p. 3 2 9 8 I b i d . , v o l . 63, (March, 1937), p. 25. 144 p r o v i n c i a l and dominion governments; the r e l a t i v e l y stable labor conditions i n the B r i t i s h Columbia i n d u s t r y ; 2 9 9 and l a s t l y the easing of the competition from, the United States i n d u s t r y owing to the r i g i d regulations of the Nati o n a l Recovery Act ^ 7 7 West Coast Lumberman, v o l , 64, (March, 1937), p. 25, J The National I n d u s t r i a l Recovery Act was a code designed to r e v i t a l i z e the lagging commerce and industry of the nation. For a period of two years the outputs, wage scales, hours of labor and p r i c e schedules of the American lumber Industry were governed according to i t s p r i n c i p l e s . The high wages and shorter hours which the act forced on the m i l l s i n Washington and Oregon worked temporarily to the advantage of B r i t i s h Columbia m i l l s , T h i r t y to t h i r t y - t h r e e cents an hour was about the top minimum wage i n the lumber Industry i n B r i t i s h Columbia, and. some m i l l s paid as l i t t l e as f i f t e e n cents an hour. In a d d i t i o n , most B r i t i s h Columbia m i l l s operated on a f o r t y - e i g h t hour week. The act, by comparison, imposed a minimum hourly wage of 42-1/2 cents and enforced a forty-hour week, Tlmberman, v o l , 36, (March, 1935)? p. 7. CHAPTER IV THE GIANT COMPANIES AND THE AMERICAN MARKET (1940 ~ ). The outbreak of the Second World War s i g n a l l e d a sharp increase i n a c t i v i t y i n the lumber trade. I t seemed evident that Canadian f o r e s t s and f o r e s t i n d u s t r i e s would be depended upon to supply not only the major part of the requirements of the United Kingdom f o r f o r e s t products but a l s o increasing amounts to other countries that had been securing supplies from the B a l t i c s t a t e s , whose exports were p r a c t i c a l l y e l i m i n a t e d . 3 0 1 Before they could take advantage of t h i s seemingly fortunate t u r n of events, B r i t i s h Columbia lumber exporters had to face two major problems: increased f r e i g h t and insurance rates caused by Germany's Indiscriminate submarine and mine warfare, and, more important, the growing s c a r c i t y of ships to carry t h e i r products to the hungry markets of the United Kingdom and other states of the A t l a n t i c community. In the emergency B r i t i s h shipping was taken over once again by the B r i t i s h Admiralty and, under government c o n t r o l , p l i e d the more important supply l i n e s on the 3 0 1 Large q u a n t i t i e s of lumber, pit-props, pulp, paper and other wood products were normally exported from F i n l a n d , Swed-en, Russia, L a t v i a , Estonia and Lithuania not only to the United Kingdom and other European countries, but to the United States, South America, South A f r i c a , A u s t r a l i a and A s i a t i c countries. g x i t j ^ J S o J L u ^ ^ v o l . 24, (November, 1940), p. 75* 146 A t l a n t i c . To add to the shortage, n e u t r a l vessels were no longer f r e e l y a v a i l a b l e f o r handling f r e i g h t to b e l l i g e r e n t p o r t s , the convoy systems rendered a l l ships as slow as the slowest v e s s e l i n the f l e e t , and sub-marine losses each day cons t i t u t e d a f u r t h e r t o l l on t r a n s p o r t a t i o n . The r e s u l t was a gradual s t o c k p i l i n g of lumber i n B r i t i s h Columbia yards* So serious d i d the ship shortage become, that B r i t i s h Columbia millmen were driven to attempt one of the most daring strokes i n trade h i s t o r y . In December, 1939? a large proportion of the lumber accumulated on the coast f o r the United Kingdom began moving by r a i l to the A t l a n t i c coast f o r trans-shipment, instead of by the customary Panama Canal r o u t e . 3 0 2 From there the B r i t i s h Government undertook to supply the sea tonnage to the United Kingdom. Despite these formidable d i f f i c u l t i e s , B r i t i s h Columbia m i l l s shipped to the United Kingdom 964,000,000 feet of lumber i n 1939, and about one b i l l i o n i n 1940. 3° 3 Gradually, however, the shipping s i t u a t i o n d e t e r i o r a t e d even fu r t h e r as the B a t t l e of the A t l a n t i c progressed. A f t e r June, 1941, when H i t l e r invaded the Soviet Union, B r i t a i n discovered a new source of supply 302 west Coast Lumberman, v o l . 67, (January, 1940), p. 46. 3 0 3 I b i d . , v o l . 67, (December, 1940), p. 64. 147 i n the Soviet's northern f o r e s t s . Ships carrying munitions from the United Kingdom to Murmansk, returned w i t h cargoes of lumber f o r the besieged B r i t i s h I s l e s . 3 0 4 This point of a c t i v i t y c o n s t i t u t e d the f o u r t h abrupt change i n the marketing pattern of the B r i t i s h Columbia lumber trace: i t marked the end of the United Kingdom as the prime sustainer of the province's chief i n d u s t r y . At one time, such an understanding between the Soviet lumber trade and the United Kingdom would have caused anxiety among B r i t i s h Columbia lumbermen, but. w i t h Forth American markets so a c t i v e that they found i t d i f f i c u l t to meet demand, the lumbermen of the West Coast, were not disturbed by the development. By 1942, overseas export shipments had f a l l e n to between t h i r t y and f o r t y per cent of t h e i r pre-war bulk.3^5 The l o s s of the export market was not not i c e a b l y f e l t f o r Canada's own war demands were growing as she h a s t i l y b u i l t and tr a i n e d a war machine. Construction of a i r - t r a i n i n g bases f o r the Canadian A i r Force, and the Commonwealth A i r - T r a i n i n g Scheme used m i l l i o n s of f e e t of f i r . The lumber industry was engaged on defence work to the extent of about eighty per cent of i t s production. After December 7? 1941, the United States 3 0 4 West Coast Lumberman, v o l . 69? (March, 1942), p. 78. British.. Columbia Luffl.berm.a_n, v o l . 26, (June, 1942), p. 148 commitment to an a l l - o u t war e f f o r t taxed i t s own lumber indust r y to the utmost and made demands on the Canadian industry. This combined demand more than compensated f o r the l o s s of the cargo trade. In 1942, the P r a i r i e s entered the B r i t i s h Columbia market i n a large way f o r the f i r s t time since 1913, w i t h orders t o t a l l i n g 200,000,000 board f e e t . The lumber was needed i n the g r a i n country because of the unprecedented demand f o r storage. A huge harvest i n Alb e r t a , Manitoba and Saskatchewan caught those provinces t o t a l l y unprepared f o r the storage s i t u a t i o n , and i n the emergency, operators of depleted lumber yards looked to the West Coast f o r assi s t a n c e . As a r e s u l t of these developments, the B r i t i s h Columbia lumber indus t r y became once again c h i e f l y concerned w i t h the r a i l trade of the home market and the United States, and has remained so ever s i n c e . The trade w i t h the United Kingdom f e l l from a high point of 971,594,000 feet i n 1940 to an average of 557,101,000 feet i n the years between 194-6 and 1955. The trade with A u s t r a l i a , another member of the s t e r l i n g area, f o i l from 158,400,000 fe e t i n 1938 to an average annual shipment of 83,947,000 feet i n the 1946 to 1955 period.3 ° ? 3 0 6 West Coast Lumberman, v o l . 69, (October, 1942), p 3°7 B r i t i s h Columbia, Department of Lands and Forests Forest Service Branch, Report, 1955. p. 108. 149 Trade with the United States showed an opposite trend. The population of the United States i n t h i s period increased very r a p i d l y — by a number equal to the population of Canada every s i x years. Of equal weight was the s t a r t l i n g extent to which the United States raw mat e r i a l supply surveys depicted the growing American dependence f o r i n d u s t r i a l raw materials on ex t e r n a l sources. Canada remained the l o g i c a l source f o r many of the raw ma t e r i a l s , and the United States drew i n c r e a s i n g l y upon her f o r them. Nowhere was t h i s demand more emphatically f e l t than i n the lumber trade. For the ten years before the war, f o r t y - f i v e per cent of Canada's lumber exports went to the United Kingdom and twenty-six per cent to the United States; f o r the s i x war years, f o r t y - f i v e per cent went to the United Kingdom and f o r t y - s i x per cent to the United States; f o r the f i r s t four post-war years only t h i r t y per cent went to the United Kingdom and f i f t y - t h r e e per cent to the United States and i n 1950 j u s t eight per cent went to the United Kingdom and eighty-four per cent went to the United States. 3 ° ^ The t o t a l value of B r i t i s h Columbia f o r e s t products exported to f o r e i g n parts i n 1952 amounted to 3° 8 Canadian Pulp and Paper, v o l . 5, ( A p r i l , 1 9 5 2 ) , p. 1 2 0 , 150 1235,74-3,758309 of which amount the United States 310 accounted f o r $ 1 0 0 , 9 6 1 , 9 1 6 . F u l l y s i x t y per cent of B r i t i s h Columbia's pulp and paper was sold to the United States; about twenty-five per cent to other off-shore markets, c h i e f l y i n the P a c i f i c basin; and f i f t e e n per cent i n the home market,3 1 1 The unprecedented p r o s p e r i t y of the lumber in d u s t r y i n these war years and i n the years immediately f o l l o w i n g wrought some remarkable changes upon the i n d u s t r i a l and s o c i a l face of B r i t i s h Columbia, f o r the lumber industry was s t i l l the most important s i n g l e f a c t o r i n the general p r o s p e r i t y of the province. One s i g n i f i c a n t change was the r e t u r n of the I n t e r i o r to an important place i n the production of f o r e s t crops. The inv e n t i o n of modern machinery f o r making roads, the development of trucks f o r transporting logs long distances from f o r e s t to m i l l , and the new demand created by the war and post-war p r o s p e r i t y effected a strong r e v i v a l of logging and lumbering i n both the Southern and Northern I n t e r i o r . Even timberlands near 3°9 B r i t i s h Columbia, Department of Trade and Industry, E x t e r n a l Trade. 1952, p. 2 . 3 1 0 i b i d . , compiled from s t a t i s t i c a l tables on pp. 30-42. 3 1 1 Canadian Pulp and Paper Industry, v o l . 5, ( A p r i l , 1 9 5 2 T T P ^ 72^ 151 the large centres, which had been thought unexploitable under normal conditions, became suddenly valuable under the compulsion of war-time demands. I t was the industry of t h i s area which was c a l l e d upon by the Federal Timber Control during the war to supply a large part of Canada's domestic requirements and much of the lumber used f o r a v a r i e t y of war purposes. Nakusp became the ch i e f pole-producing centre of the I n t e r i o r , Nelson became a matchblock centre, producing blocks f o r Eastern Canada as w e l l as matchplant f o r Spokane firms, and cotton-wood veneer f o r f u r n i t u r e - f a c t o r i e s i n B r i t i s h Columbia and Washington, Some of the cottonwood was logged on contract i n the East Kootenay D i s t r i c t and shipped by r a i l , but most was boomed down the arm of Kootenay Lake. Salmo produced c h i e f l y shingles, but i t also made timbers f o r West Kootenay mines and sent pulp logs to paper m i l l s i n Spokane. Cranbrook, Golden and Invermere produced c h i e f l y lumber and large numbers of r a i l r o a d t i e s . Fernie too manufactured lumber and t i e s , but devoted much of i t s production to mine props f o r the •312 heavily-seamed coal-mining mountain pass. An ever increasing volume of lumber was cut as the war progressed. War-time demand eventually became so great that i t was loaded green. 3 1 2 B r i t i s h Columbia Lumberman, v o l . 26, (September, 1942), p. 29. 152 In the Okanagan region, the lumbering indus t r y gradually overtook f r u i t growing as the major item i n the economy. The Vernon region alone supported s i x t y -four m i l l s , four of which handled two-thirds of the t o t a l cut. P a y r o l l s from the industry t o t a l l e d $2,400,000 annually. 3!3 Between 1947 and 1954, the number of sawmills operating I n the Southern I n t e r i o r increased from around 475 to 1000 and the d a i l y capacity of the region grew from 4 ,754,000 f e e t to 7,120,000 f e e t . The annual cut al s o has r i s e n p r o p o r t i o n a t e l y : from 582,437,000 board f e e t i n 1947 to 905,279,000 i n 1 9 5 3 . 3 1 4 The war years and the post-war decade were to the northern I n t e r i o r what the turn of the century years were to the Kootenays. Remarkably l i t t l e change occurred around P r i n c e George i n the long period between 1915 and 1940. Perhaps the s t o r y of the area could best be i l l u s t r a t e d by the fortunes of one man, Prince George's leading millman, Roy Spurr. In 1917, Spurr opened one 3*3 C a p i t a l Investment i n the Vernon area f o r f o r e s t industry was conservatively estimated at $1,200,000 aside from some $550,000 i n trucking and a l l i e d equipment. Shipments of up to twenty-five hundred railway carloads a year were worth more than $4,000,000. Stumpage, r o y a l t i e s and other taxes t o t a l another $250,000. B r i t i s h Columbia Lumberman, v o l . 38, ( A p r i l , 1954), p. 28. 3 1 4 "Regional Report, Southern I n t e r i o r : Can They L i c k the Marketing Problem?" The Truck Logger, ( A p r i l , 1954), P. 39 . 153 of the d i s t r i c t ' s f i r s t sawmills, at Penny, He sold i t i n 1928, and three years later-, he and four other investors bought the bankrupt Eagle Lake assets of the Winton Lumber i n t e r e s t s , taking over a s t r a g g l i n g community which depended on a m i l l which employed a crew of t h i r t y - f i v e men. 3 1? Under Spurr 1s guidance the company replaced men wi t h machines, b u i l t all-weather logging roads, and put logging trucks on t i g h t time-tables. Despite h i s c a r e f u l management, however, the years of depression proved d i f f i c u l t to su r v i v e . As i n the Southern I n t e r i o r , the lumber indus t r y i n the North received a considerable impetus from war demands. But i t was the American demand f o r Engelmann spruce that underlay the development of the industry i n the Northern I n t e r i o r , and s p e c i f i c a l l y , the Spurr m i l l . Spurr's undertaking prospered under large war orders u n t i l i t became the biggest lumber operation i n the Prince George Forest D i s t r i c t . In 1953, i t produced 2 2 , 0 0 0 , 0 0 0 board feet and employed 165 men. Spurr sold the c o n t r o l l i n g i n t e r e s t i n the company to the Milner i n t e r e s t i n 1947 at a reported one m i l l i o n d o l l a r s , but continued to manage the company.3^ He died i n August, 3 1 ? B r i t i s h Columbia Lumberman, v o l . 31, (August, 1947), pp. 93-94. 3 1 6 I b i d . , v o l . 38, (September, 1954), p. 18. 154 1954. By that year the presence of seven hundred lumbering operations i n the area had increased the population from the depression l e v e l of three thousand, to a prosperous twelve thousand. In Quesnel, eighty miles south of Prince George, the Western Plywood, (Caribou) Ltd., opened a m u l t i -m i l l i o n d o l l a r plant i n 1953? and a sawmill to process logs, not s u i t a b l e f o r plywood, was erected i n the f o l l o w i n g y e ar.- 3 1 7 Before 1945, the Nechako d i s t r i c t produced only enough lumber to s a t i s f y l o c a l demand. In 1954, two thousand carloads of lumber were exported, providing a $800,000 p a y r o l l . In Hazelton, the Olaf Hanson Lumber Company, which was established i n 1910 to supply t i e s to the Grand Trunk P a c i f i c R a i l r o a d , branched out i n t o the cedar pole business. The Olaf Hanson Lumber Company, u n t i l r e c e n t l y , was the major s i n g l e operation i n the d i s t r i c t . The f o r e s t products of the Northern I n t e r i o r were f i n i s h e d and rough lumber, cedar poles and hand-hewn t i e s . Over two m i l l i o n poles and 171,000 t i e s were produced i n 1953? i n a d d i t i o n to lumber from sawmills. Lumber was produced by 740 sawmills, w i t h a t o t a l d a i l y capacity of 2,047,000 board feet.318 3 1 7 "Northern I n t e r i o r i A l e v e l i n g o f f " , The Truck Logger, (August, 1954), pp. 13?14. 3 1 8 Loc. c i t . 7 Much new f o r e s t wealth i n the north was discovered by the engineers who b u i l t the Alaska Highway during the Second Great War. Before t h e i r f l i g h t s , there was no exact information a v a i l a b l e about the f o r e s t wealth north of the Peace B i v e r along the Alcan route. Driven on by the urgency of war, and bending every energy to complete the Alaska Highway, engineers at f i r s t imported from the Kootenays a l l the lumber and timber needed f o r con-s t r u c t i o n purposes. F i r t i e s f o r the r a i l extension from Whitehorse, f o r example, were transported from the Burns Lumber and Coal Company at Nelson, B. C., two thousand miles to Dawson Creek by r a i l , and then 910 miles by road to Whitehorse. The t i e s were hauled i n midwinter through some of the best t i e timber i n the world north of F o r t St. John. 3 1 9 American contractors soon discovered commercial timber along the way and they erected small sawmills at a score of places north of the Peace River Bridge. Canadians too erected sawmills i n F o r t St, John and on the Peace River between the Bridge and Dawson. Creek. And a new timber industry was established beyond the Peace, between Dawson Creek and the White Ri v e r . Ten years l a t e r , eleven m i l l s were producing on the Alaska Highway, between M i l e 83 and 110, and two l a r g e r companies B r i t i s h Columbla Lumberman. v o l . 29, (March, 1945), p. 81. 156 were producing at C e c i l Lake, near M i l e 40. Their production was sent down the r i v e r , from St. John, to the mines and o i l - f i e l d s of the Northwest T e r r i t o r i e s . 3 2 0 The favorable marketing climate that l a y behind t h i s general p r o s p e r i t y encouraged the trend to amalgamation and d i v e r s i f i e d production. The almost i n s a t i a b l e market i n both Canada and the United States f o r such products as wallboard, i n s u l a t i o n board, laminating board, plywood, p l a s t i c s , and pulp, created opportunities f o r the f u l l u t i l i z a t i o n of the f o r e s t . I t meant that materials h i t h e r t o regarded by lumber producers as useless, could be p r o f i t a b l y used and hastened the day when f o r e s t s could be c l e a r cut, with a l l d e b r i s , as w e l l as primary logs, removed and m arketed. 3 2 1 The reasons f o r the great mergers of the era, were, therefore, almost e n t i r e l y economic. The objective was to economize to the best possible u t i l i z a t i o n of intermixed timber holdings. Under giant companies with unlimited c a p i t a l and c o n t r o l l i n g every kind of forest, products p l a n t s . I t was p o s s i b l e f o r one plywood m i l l to receive a l l peeler logs, a gang m i l l to handle a l l small logs, a b e v e l - s i d i n g m i l l to handle a l l cedar saw 3 2 0 B r i t i s h Columbia Lumberman, v o l , 3'3, (January, 1954), p. 1ST 3 2 1 P a c i f i c Coast Lumberman, v o l , 77? (February, 1950), p. 69. 157 l o g s , and a p u l p ' m i l l to use a l l pulp logs. I t was p o s s i b l e to drop a l l i n e f f i c i e n t units and to concentrate on and strengthen the e f f i c i e n t u n i t s . This trend toward the complete u t i l i z a t i o n of the f o r e s t crop l e d to the i n t e g r a t i o n of the industry, wherein the logging camp, sawmill, veneer and plywood m i l l , and pulp and paper m i l l became complementary to each other. Large-scale operators recognized the d e s i r a b i l i t y of c o n t r o l l i n g every facet of the Integrated Industry i n order that maximum e f f i c i e n c y could be a t t a i n e d . This venture demanded large amounts of c a p i t a l , some of which were a v a i l a b l e In the Canadian market but most of which was supplied by large American corporations. This new c o n d i t i o n f o r s u r v i v a l w i t h i n the Industry l e d to far-reaching changes. Apart from the pulp and paper companies operating i n B r i t i s h Columbia, a l l of which held extensive timber l i m i t s , the f o r e s t industry of the province gradually passed into the hands of f i v e large corporate groups. Several a d d i t i o n a l companies could be added to the l i s t , but the c h i e f groups were MacMillan and Bloedel and. i t s s u b s i d i a r i e s ; Alaska Pine and. C e l l u l o s e Company, and I t s s u b s i d i a r i e s ; Canadian Western Lumber Company; Canadian Forest Products; and B r i t i s h Columbia Forest Products. 158 The f i r s t of these large concerns was the MacMillan and Bloedel Company. Harvey Reginald, MacMillan, the president of the company, was born i n Newmarket, Ontario, i n 1885 and graduated from the Ontario A g r i c u l t u r a l College. He received his t r a i n i n g i n f o r e s t r y i n Yale U n i v e r s i t y Forest School, under Professor H. S. Graves, who l a t e r became Chief of the United States Forest S e r v i c e . In the opinion of Graves, MacMillan was one of the most competent students i n f o r e s t r y ever to emerge from the school. After graduating i n 1904, MacMillan was employed f o r eight years by the Forestry Branch of the Department of the I n t e r i o r , where he established a remarkable reputation f o r a d m i n i s t r a t i v e capacity. He made the f i r s t f o r e s t survey i n Canada, • sta r t e d the survey of the Rocky Mountain Forest Reserve, and inaugurated the c o l l e c t i o n of s t a t i s t i c s of the 322 lumber industry i n Canada. In 1912, when the p r o v i n c i a l government decided to e s t a b l i s h a Forest Branch, the Hon. W. R. Ross, M i n i s t e r of Lands and Forests, l a r g e l y on the recommendation of Professor G r a v e s 3 2 ^ selected MacMillan to organize i t as the province's f i r s t Chief Forester. MacMillan 8s service as Timber Trade Commissioner during the early years of 322 Western Lumberman, v o l . 9, (August, 1912), p. 66, 323 LOG, c i t . 159 the war has already been described. From 1917 to 1919 he acted as A s s i s t a n t - d i r e c t o r of the Imperial Munitions Board. With the end of the war, and convinced of the p o s s i b i l i t i e s of the export trade, MacMillan borrowed ten thousand d o l l a r s with which to e s t a b l i s h the H, P i . MacMillan Export Company Limited. The story of the company has already been t o l d . In time i t became one of the l a r g e s t lumber export agencies In the world, with as many as f i f t y - o n e cargo ships under charter at one time to i t s s u b s i d i a r y firm., the Canadian Transport Company. U n t i l 1936 the MacMillan company functioned wholly as a lumber exporter. In that year, however, some of the large m i l l s for which MacMillan acted as s e l l e r and d i s t r i b u t o r established t h e i r own. d i s t r i b u t i n g f i r m , Seaboard Shipping Company, i n an attempt to share In the p r o f i t s of the shipping end of t h e i r business. To counter t h i s move to some extent, MacMillan began to produce lumber. He f i r s t purchased the old Dominion M i l l s on the Fraser R i v e r , the s i t e of the present Canadian White Pine m i l l , 3 2 ^ and followed that with the purchase of the A l b e r n i -P a c i f i c Lumber Company, at Port A l b e r n i , together with approx-3 2 4 West Coast Lumberman, v o l . 80, (May, 1953). pp. 122, 123. 3 2 5 I b i d . , v o l . 66, (March, 1939), p. 54. 160 imately a b i l l i o n f eet of timber, c h i e f l y D o u g l a s - f i r . MacMillan purchased t h i s s u b s t a n t i a l property from Denny, Mott & Dickson Ltd., of London, well-known B r i t i s h importers i n whose i n t e r e s t i t had been operating,, The A l b e r n i m i l l , w ith i t s modern equipment, and i t s capacity of 3 0 0 , 0 0 0 f e e t per 8-hour s h i f t , had a steady r e p u t a t i o n as one of the most important export plants i n the province. MacMillan bought timber i n nine d i f f e r e n t t r a c t s varying from 770 acres to 2 , 0 0 0 acres and s i t u a t e d on the Ash River close to the A l b e r n i - P a c i f i c operations 327 from the John D. R o c k e f e l l e r i n t e r e s t s f o r 12,627 ,500. The new company was known as A l b e r n i - P a c i f i c Lumber Company, 1936, Limited. The name of the purchaser given i n the document, was Canadian White Pine Company, the MacMillan holding company. The a c q u i s i t i o n of the A l b e r n i - P a c i f i c m i l l , gave the MacMillan o r g a n i z a t i o n a much needed g r i p on lumber production.3 ^ 8 MacMillan 326 West Coast Lumberman, v o l . 6 3 , (October, 1 9 3 6 ) , p. 3 0 . 327 XJO 0 a C J . "fc » 328 » 0 u r r e a l s t a r t , " MacMillan confided l a t e r , " was when we bought the A l b e r n i - P a c i f i c Lumber Co. i n 1936, with a l i t t l e money and a l o t of debt. And we h i t the incoming t i d e I am. going to give you some advices I f you are ever going to go i n t o business, do i t on an incoming t i d e ; don't do i t on the outgoing t i d e . Lumber was between #12 and $13 a thousand then; i t starte d up and between the f a l l of 1936 u n t i l A p r i l 1952, i t ran from $13 a thousand to $85 and $90 a thousand -- a con-tinuous run-up and that's what has made a l l these companies I b i d . , v o l . 80, (May, 1953), pp. 1 2 2 , 1 2 3 . • • » • 161 became president of the new Alb e r n i company, c a p i t a l i z e d at $1 , 5 0 0 , 0 0 0 and W. J . Van.Dusen, h i s associate i n other e n t e r p r i s e s , became v i c e - p r e s i d e n t . 3 2 9 Three years l a t e r , MacMillan and h i s associates, financed l a r g e l y by B r i t i s h c a p i t a l , augmented t h e i r timber holdings on Vancouver Island by a c q u i r i n g the property of the Campbell River Timber Company, near Menzies Bay, f o r about $ 9 5 0 , 0 0 0 . 3 3 ° i t was MacMillan's f i r s t venture i n buying timber not d i r e c t l y associated w i t h a sawmill. The Campbell River holdings, comprising about 3 5 0 . 0 0 0 , 0 0 0 f e e t of timber, made MacMillan one of the three l a r g e s t timber holders i n B r i t i s h Columbia, and marked a s i g n i f i c a n t step i n the r i s e of the MacMillan timber empire i n B r i t i s h Columbia. In 1947, the MacMillan i n t e r e s t s , s t r o n g l y a f f e c t e d by the post-war p r o s p e r i t y sweeping the whole nation, purchased the operations of the North Coast Timber Co., Lt d . , at U c l u e l e t , the stands of the Maggie Lake Timber Company near Kennedy Lake, and a small shingle m i l l at Port A l b e r n i , which was thereafter operated as part of the ^ 1 A l b e r n i - P a c i f i c Lumber Company. 3 2 9 West Coast Lumberman, v o l . 6 3 , (October, 1 9 3 6 ) , Po 3 0 . 3 3 0 I b i d . , v o l . 6 6 , (March, 1939), p. 54. 3 3 1 B r i t i s h Columbia Lumberman, v o l . 3 1 , (August, 1947), p. 8 0 . 162 The company's most s i g n i f i c a n t purchase, however, was the b i g tidewater sawmill of the V i c t o r i a Lumber Company, at Chemainus from the Humbird i n t e r e s t s , f o r whom the MacMillan o r g a n i z a t i o n had been operating i t on a management b a s i s . At the same time the parent company purchased s i x a d d i t i o n a l 1,000-ton cargo ships f o r i t s s u b s i d i a r y , the Canadian Transport Company, b u i l t a door f a c t o r y , i n s t a l l e d chipping plants to make pulp chips from wood waste, and made other c a p i t a l a d d i t i o n s to timber, m i l l s , machinery and logging operations. In that year, the H. R. MacMillan Export Company produced about ten per cent of the Coast region*s output of logs, about fourteen per cent of i t s lumber production, f i f t y per cent of a l l the plywood manufactured i n the province and about t h i r t y per cent of i t s doors. T o t a l assets of the 332 company exceeded t h i r t y m i l l i o n d o l l a r s . I n 1951? the MacMillan i n t e r e s t s amalgamated w i t h B l o e d e l , Stewart & Welch Limited, another mammoth concern. The company r e s u l t i n g from t h i s history-making merger, by f a r the l a r g e s t and most s i g n i f i c a n t i n the i n d u s t r i a l h i s t o r y of the province was known as MacMillan & Bloedel, L t d . I t was the l a r g e s t lumber-producing corporation In Canada, and i n the volume and d i v e r s i t y of i t s output and close i n t e g r a t i o n , ranked with the giants i n the •332 | e g t coast Lumberman, v o l . 74- (February, 194-7), p. 9 3 • world's f o r e s t industry, comparable wi t h Weyerhaeuser and Long-Bell i n the United States. The Bl o e d e l , Stewart & Welch orga n i z a t i o n o r i g i n a t e d eight years before the MacMillan company, when, i n 1911? J ^ j L ^ . B l o e d e l , a Puget Sound lumberman, \\ formed a partnership w i t h General J . W. Stewart and P a t r i c k Welch. Stewart was a Canadian engineer, w e l l known f o r the con s t r u c t i o n of r a i l r o a d s i n France during the F i r s t Great War and better known l o c a l l y as the b u i l d e r of the Prince George to Prince Rupert s e c t i o n of the Grand Trunk P a c i f i c Railway. Welch, too, was a 333 noted r a i l r o a d contractor. The Bloedel o r g a n i z a t i o n began logging operations i n 1911 at Myrtle P o i n t and from that beginning expanded gradually i n t o a h i g h l y d i v e r s i f i e d f o r e s t products organization. In 1922, the company s t a r t e d to operate at Union Bay, a f t e r which i t purchased timber l i m i t s at Menzies Bay from the McLaren i n t e r e s t s of Ontario, In 1926 I t acquired a newly-built m i l l at Great C e n t r a l , and vast adjacent stands of timber from the Esquimalt and Ranaimo Railway, The f i r m established I t s e l f as 333 Western Lumberman, v o l . 20, (October, 1924), p. 40. 334 B r i t i s h Columbia Lumberman, v o l . 21, (J u l y , 1927), pT~4lT - _ — 164 the leading logging operation by purchasing the M i l l - Q u i n timber l i m i t s at F r a n k l i n River the f o l l o w i n g ^35 year. y With the r a p i d expansion of the B r i t i s h market i n the m i d - t h i r t i e s , the company b u i l t a new export sawmill at Port A l b e r n i , adding a 12-machine shingle m i l l to i t i n 1937• This a d d i t i o n , combined with i t s 24-machine shingle m i l l i n Burnaby made the company the leading shingle operator i n B r i t i s h Columbia. In 1951 the p r i n c i p a l operations of the MacMillan & Bloedel f i r m were located at Port A l b e r n i and on the A l b e r n i Canal (logging, sawmilling, plywood and pulp making)5 at Nanaimo (pulp m i l l i n g ) ; Great C e n t r a l Lake (logging and sawmilling); Northwest Bay, Menzies Bay, S a r i t a and Kennedy Lakes on Vancouver Is l a n d , and St. Vincent's Bay on the mainland (logging). In the Vancouver area, where the head o f f i c e was located, the company produced lumber, plywood, doors, shingles, 336 and presto-logs ( f u e l made from pressed m i l l waste), 0 The second large concern was the Alaska Pine and C e l l u l o s e Company, whose story has been l a r g e l y connected with the fortunes of one p a r t i c u l a r kind of lumber -- hemlock, and with one p a r t i c u l a r family — the Koerners. 335 BritigJbLColujnMa..Lumberman, v o l . 21, ( J u l y , 1927), p. 41. 3 3 6 i b i d . , v o l . 35, ( A p r i l , 1951), p. 39 . 165 The h i s t o r y of hemlock production i s p e c u l i a r l y i n t e r e s t i n g . U n t i l recent years hemlock has "been a nonentity i n most markets. Blamed with a l l the short-comings of the Eastern wood of the same name, i t was t r u l y a v i c t i m of heredity. The f a u l t s of Eastern hemlock — such as b r i t t l e n e s s , a tendency to s p l i n t e r , and a coarse texture earned a bad rep u t a t i o n f o r a l l hemlock. Improper handling of the Western species only served to strengthen the t r a d i t i o n a l b e l i e f i n the r e s t r i c t e d usefulness of the wood. M i l l i o n s of fe e t of i t were l e f t unlogged and standing as they occurred on the land mixed with other species because they could not be p r o f i t a b l y marketed.337 One of the most urgent problems which confronted the logging i n d u s t r y of B r i t i s h Columbia arose from the large amount of Western hemlock found i n the vast stands of timber west of the crest of the Cascade Range. The f a c t that hemlock appeared i n Increasing proportion as the f o r e s t s were cut added to the importance of f i n d i n g a s a t i s f a c t o r y market f o r i t . I t was l a r g e l y owing to the pioneer work of Messrs. Leon and Walter Koerner, the founders of the Alaska Pine Company, of Vancouver, that a large and Important market f o r once-despised wood was developed. 33? Tlmberman, v o l . 25, (December, 1923)? P° 102. 166 The Koerner fa m i l y had been producing and marketing timber f o r four generations — under the empire of Franz Joseph and then i n the Czechoslovakia of Hasaryk and Benes. They enjoyed i n t e r n a t i o n a l trade contacts that made t h e i r name a f a m i l i a r one i n the lumber markets of C e n t r a l and North Europe, DO g and e s p e c i a l l y i n the United Kingdom, ' Their f i r m , the J . Koerner Lumber In d u s t r i e s Limited, of Prague, c o n t r o l l e d a lumber empire employing f i f t e e n thousand people i n the f o r e s t s and sawmills of Czechoslovakia, Poland, and Germany.-^'' In 1939, a f t e r H i t l e r had Invaded Czechoslovakia, Leon and Walter Koerner a r r i v e d i n Vancouver with what c a p i t a l they had managed to salvage from t h e i r timber empire. Almost immediately they set about e s t a b l i s h i n g the Alaska Pine Company, Limited, an organization based upon the c o n v i c t i o n that Western hemlock, when properly d r i e d , i s not i n f e r i o r to Dougl a s - f i r f o r most s t r u c t u r a l purposes. The company was incorporated at $250,000. The d i r e c t o r s were Leon Koerner, George A. Cassady and A. R. Macfarlane. Sees Brown, Roy W., "He gave B. C. an industry", Vancouver Sun, (December 30, 1952), p. 4 . 339 p o r t e r , M.5 "Leon Koerner's one-man giveaway program", Macleans, v o l . 69, (August 4, 1956), p. 34. 167 The f i r s t move of Mr. Leon Koerner, was to counteract the prejudice that p r e v a i l e d against the name of the wood i t s e l f , and to t h i s end he obtained o f f i c i a l permission to market hemlock under an old and seldom used name: Alaska pine. "Alaska pine" was a d i c t i o n a r y term coined about f i f t y years e a r l i e r at the behest of James J . H i l l , the Canadian b u i l d e r of the Great Northern R a i l r o a d , and one of the l a r g e s t timber holders i n the Northwest.34° Then, having changed the l a b e l on the product, Koerner proceeded to change the product i t s e l f . He purchased the property of the I n t e r n a t i o n a l Wood Products Company of New Westminster, and there I n s t a l l e d elaborate a i r - d r y i n g James J . H i l l , along with Weyerhaeuser, the Minnesota timber king, c o n t r o l l e d hundreds of thousands of acres of timberland along the route of h i s r a i l r o a d , i n the westernmost sections of which hemlock was w e l l represented. Finding Eastern prejudice against hemlock so strong that i t s i n t r o d u c t i o n i n t o Eastern markets was very d i f f i c u l t , H i l l suggested that a new name be found f o r the species. Frank B. Cole, the e d i t o r of the West Coast Lumberman suggested "Alaska pine". West Coast Lumberman^ v o l . 3 , (November, 1892), p. 9. Eastern lumber journals charged Western lumber i n t e r e s t s with attempting to deceive the p u b l i c by adopting a misleading misnomer; and there was a c e r t a i n v a l i d i t y i n t h e i r accusation. For, u n l i k e the Koerners at a l a t e r date, H i l l and Weyerhaeuser were content to merely change the name of t h e i r product: they did not i n any way a l t e r the product i t s e l f . Consequently the change of name had l i t t l e e f f e c t on the volume of hemlock marketed. In 1399, f o r example, seven years a f t e r the b i r t h of Alaska pine, Washington and Oregon produced only about a quarter of a m i l l i o n feet and increases were most moderate t h e r e a f t e r . B r i t i s h Columbia Lumberman, v o l . 25", (January, 1941), p. 28. and k i l n f a c i l i t i e s i n which to season and dry thoroughly the hemlock he produced. His example set the trend to large Investments i n k i l n expansion. The new dry hemlock commanded a ready market In both the United States and i n the expanding home market. The next ten years saw the Koerner i n t e r e s t s expand r a p i d l y to Include timber lands, logging operations, a box company and other r e l a t e d e n t e r p r i s e s . The trend towards large i n d u s t r i a l mergers which allowed f u l l e r advantage to be taken of the tree crop overtook the Koerners a f t e r only l i t t l e more than a decade of operation as a f a m i l y company. On Hay 15? 1951? the Alaska Pine group of companies merged with the B r i t i s h Columbia Pulp and Paper Company, a subsid i a r y •of the powerful A b l t l b i Pulp and Paper Company of Toronto, to form. Alaska Pine and C e l l u l o s e , Limited. Alaska Pine and C e l l u l o s e Limited, owned i n equal parts by the A b i t t b l Company and. the Koerner i n t e r e s t s , now owned the B r i t i s h Columbia Pulp and Paper Company, Limited, i n c l u d i n g i t s pulp m i l l s at Port A l i c e and Woodfibre and I t s timber lands and logging operations; Alaska Pine Company Limited; U n i v e r s a l Lumber and Box Company, Limited; Alaska Pine Sales, Limited; Alaska Pine Trading, Limited; Northern Timber Company, Limited; Pioneer Timber Company Limited; 169 Jones Lake Logging Company; Empire Machinery Company, Limited; Alaska Pine Purchasing, Limited; Canadian Puget Sound Lumber and Timber Company Limited; and Western Forest I n d u s t r i e s , Limited.241 B y m e a n s 0 ? t h i s merger the B r i t i s h Columbia Pulp and Paper Company obtained access to a d d i t i o n a l chips and timber f o r i t s pulp m i l l s and the Alaska Pine Company received from the paper company a l l timber not required f o r pulpwood.-3 The ultimate r a t i o n a l i z a t i o n of t h i s industry occurred i n 1954- when eighty per cent of the Alaska Pine and C e l l u l o s e , Limited,stock was acquired by Rayonier, Incorporated, of New Y o r k , a n d the c o n t r o l of the large company passed i n t o the hands of American. W I n d u s t r i a l i s t s . Fourteen years of rapid expansion w i t h i n the industry had witnessed f i r s t , the establishment of a f a m i l y company, then i t s merger with a large n a t i o n a l organization, and f i n a l l y i t s i n t e g r a t i o n as a part of one of the l a r g e s t i n t e r n a t i o n a l producers B r i t i s h Columbia Lumberman, v o l . 35? (June, 195D? p. 7 6 7 " — " " ~~ 3 42 mjae ownership of the B r i t i s h Columbia Pulp and Paper Company by the A b i t i b i organization made I t the only Canadian company i n the industry with Canada-wide operations, A b i t i b i paid" about $20,000,000 f o r the properties i n 1950. s>43 porter, M., "Leon Koerner's one-man giveaway program", Macleans, v o l . 69? (August 4, 1956), p. 34. i ? o of c e l l u l o s e products i n the world. r Y The Canadian Western Lumber Company, the t h i r d / giant of the. industry, was incorporated i n 1910. In / that same year i t took over the charter of the Fraser River Lumber Company, popularly known as Fraser M i l l s , which has already been described i n some d e t a i l i n a preceding chapter. In i t s i n i t i a l stages t h i s large and hi g h l y s u c c e s s f u l exporting m i l l operated on both B r i t i s h and. American c a p i t a l under the d i r e c t i o n of Alexander Duncan McRae, a Canadian, and. Peter Jans en of B e a t r i c e , Nebraska -> McRae was succeeded i n the dominant position, i n the f i r m i n 1914- by J . D. McCormack, a Wisconsin lumberman. Having witnessed the r a p i d depletion of the f o r e s t s of his native s t a t e , McCormack showed an understandable i n t e r e s t i n obtaining large t r a c t s of standing trees f o r his Canadian company. He purchased heavily f o r the years ahead i n the Crown-grantee Esquimalt and Hanaimo f o r e s t s of Vancouver Is l a n d , where the land went with the f o r e s t and was not f o r f e i t to the Crown when the timber was removed. His successor, Henry Mackin, perpetuated t h i s p o l i c y to very gocd e f f e c t . Between 1910 and 1950 the company acquired other 171 operations engaged In various phases of lumber pro-duction, u n t i l i t could o f f e r a complete service from logging to the f i n i s h e d d i s t r i b u t e d product. I t owned the Comox Logging and Railway Company, a huge undertaking i n i t s e l f , comprising t r u c k s , t r a c t o r s and 170 miles of r a i l r o a d s , branch l i n e s and truck roads; the Canadian Tugboat Company, Limited, which towed logs from Vancouver Is l a n d to the Fraser M i l l s ; the Fraser M i l l s Sash, Door and Shingle Company Limited, which operated a plywood p l a n t , shingle m i l l and door plant at Fraser M i l l s ; and the Crown Lumber Company, Limited, the S e c u r i t y Lumber Company, Limited and Coast Lumber Yards, Limited. These last-named companies operated n i n e t y - f i v e lumber yards i n A l b e r t a , Saskatchewan and Manitoba, f o r the d i s t r i b u t i o n of lumber and r e l a t e d 344 s u p p l i e s . ^ Impressive though t h i s complete f o r e s t products service was, i t was c h i e f l y the large s i z e of the company's raw m a t e r i a l resources on Vancouver Island that a t t r a c t e d the a t t e n t i o n of J . D. Zellerbach, one of the American P a c i f i c Coast's l a r g e s t lumber operators. The c e r t a i n t y that these holdings need never be f o r f e i t e d to the state made t h e i r a c q u i s i t i o n doubly a t t r a c t i v e to his material-hungry P a c i f i c Coast operations. In ^ Canadian Western Lumber Company, Report, F i n a n c i a l Post Corporation Service, Toronto, 19527 P» 2. 172 June, 1953 5 his company, the Crown Zell e r b a c h Corporation of San Francis c o , gained a majority i n t e r e s t i n the Canadian company through an exchange of stock and the Canadian Western Lumber Company became a d i v i s i o n of Crown Ze l l e r b a c h Canada, Limited, with e f f e c t i v e c o n t r o l held i n San Francisco.34-5 The combined timber resources of the Canadian Western and the Crown Zell e r b a c h probably made the Zel l e r b a c h o r g a n i z a t i o n the second l a r g e s t timber holding company on the P a c i f i c Coast, surpassed only by the Weyerhaeuser holdings. Crown Zellerbach now owned P a c i f i c Coast stands and pulp and paper m i l l s from the Queen Charlottes to Southern C a l i f o r n i a . The s t o r y of the Canadian Forest. Products, Limited, e f f e c t i v e l y dates from 1925? when the I n t e r n a t i o n a l Harvester Company, of Chicago, bought the assets of the defunct Beaver Cove Lumber and Pulp Company from W. H. White of Boyne C i t y , Michigan, f o r s i x m i l l i o n dollars.34-6 xirie property included timber and pulp wood t r a c t s on the ITimpkish R i v e r , situated on the east coast of Vancouver Is l a n d , and a m i l l at Beaver Cove. L i t t l e a c t i v i t y of note occurred during the 3 4 ? Vancouver Province, "(June 16, 1953)? p. 19. 3 4 6 Tiroberman. v o l . 30, (March, 1929), p. 26. d i f f i c u l t decade of the ' t h i r t i e s . Once again i t was. war-time demand that underlay the expansion of t h i s company. In November, 1941, Ossian Anderson, the president of Puget Sound Pulp and Timber Company, of Bellingham, Washington, acquired the property from the I n t e r n a t i o n a l Harvester Company along w i t h the adjacent holdings of the Wood-English Company, and of Timber Investments, Limited. These purchases involved the a c q u i s i t i o n of one hundred thousand acres of f o r e s t at a p r i c e approximating f i f t e e n m i l l i o n d o l l a r s , 3 4 ' 7 The American owners ret a i n e d the name of Canadian Forest Products Company, Limited, f o r t h e i r new s u b s i d i a r y , Ossian Anderson became president and. d i r e c t o r , while Fred Stevenot, of San Francisco became chairman and d i r e c t o r . 3 ^ " 3 In May, 1942, t h i s company increased i t s holdings by acquiring eleven thousand adjacent acres from Michael F, Cudahy of Milwaukee, This a c q u i s i t i o n consisted of fourteen crown grants which the Cudahy family had obtained f i f t y years previously i n the expectation that the Ssquimalt and Nana lino Railway would be extended i n that d i r e c t i o n , and two leases granted 3 4 7 B r i t i s h Columbia Lumberman, v o l , 25, (December, 1941), p. 3 3 . . 3 4 8 I b i d . , v o l . 2 5 , (November, 1941), p. 2 7 . 174 i n 1896. This property was f i r s t acquired on a stumpage basis (that i s , an agreed-upon p r i c e was paid by the company f o r every thousand f e e t of timber i t took out of the Cudahy holdings) but a f t e r a decade of c u t t i n g , the giant f i r m bought the t r a c t s o u t r i g h t . By 1952 the company had expanded to include In a d d i t i o n to I t s extensive Vancouver Island f o r e s t holdings, a sawmill and a shingle m i l l at Vancouver, a plywood pl a n t at New Westminster, and a c o n t r o l l i n g i n t e r e s t i n the Howe Sound Pulp Company. B r i t i s h Columbia Forest Products was the smallest of the giants and a comparative latecomer to the scramble f o r the f o r e s t s of the province. The company was formed In January, 1946, by Edward P. Taylor, the head of the Argus Corporation, of Toronto. He brought together s e v e r a l i n d u s t r i e s to form, the new company. They included the V i c t o r i a Lumber Company, at Chemainus, which Taylor had owned f o r s e v e r a l years; I n d u s t r i a l Timber M i l l s , at Cowichan Lake; Hammond Cedar Company, at Hammond; Cameron Lumber Company, at V i c t o r i a ; and the S i t k a Spruce Company, of Vancouver. Among the smaller firms included i n the t r a n s a c t i o n 3 4 9 West Coast Lumberman; v o l . 69, (May, 1942), p. ' 35° Vancouver Sun, (June 17, 1952), p. 10. were Cameron Brothers Timber Company; Hemmingsen-Cameron Company; Osborne Bay Timber Buyers, Limited; Renfrew Holdings, Limited; Realty Holdings, Limited. These properties were acquired along with s e v e r a l logging concerns and s u b s i d i a r i e s f o r a sum exceeding ten m i l l i o n d o l l a r s . On November 5j 1955? the Scott Paper Company of Chester, Pennsylvania, arranged to take over eventual c o n t r o l of the or g a n i z a t i o n . The Scott Company was a leading manufacturer of s a n i t a r y paper products and other kinds of paper i n the United States, The c o n t r o l of I t s subsidiary's pulp m i l l on Vancouver I s l a n d , which was i t s e l f backed by a f o r e s t management l i c e n s e , guaranteed the American f i r m a perpetual supply of pulp. I t can be r e a d i l y seen that much of the stimulus f o r the trend to i n t e g r a t i o n i n t h i s period came from the enormous expansion i n the pulp and paper Industry. Inasmuch as t h i s industry i s a study i n i t s e l f , quite apart from the lumber industry, no attempt w i l l be made here to t r e a t I t i n a d e t a i l e d way. The two i n d u s t r i e s have, however, become so c l o s e l y integrated i n t h i s age of c e l l u l o s e f o r e s t r y , that at l e a s t a cursory account B r i t i s h Cp2usJaSaJ?_org^^ o r t , F i n a n c i a l Post "Corporation Service, Toronto, ISb?, P» 1» 176 of the development of the pulp and paper industry seems e s s e n t i a l , B r i t i s h Columbia's f i r s t pulp and paper m i l l was b u i l t at Al b e r n i i n 1894 by William Hewartson, a Yorkshireman. C a l l e d the B r i t i s h Columbia Pulp and Paper M i l l s Company, i t operated on c a p i t a l advanced by W. P. Sayward, the pioneer Island lumberman, Thomas Shotbolt, druggist and cannery f i n a n c i e r , James Thomson, J. S. Yates and Joshua Davies. A l l of these early day entrepreneurs were V i c t o r i a businessmen.3? 2 With high optimism Hewartson imported and i n s t a l l e d machinery from England In the expectation that his m i l l would become one of the important i n d u s t r i e s of the Coast, Enough rags and jute to s t a r t production were also imported, from the Old World, A t o t a l of 177?000 was invested i n equipment and b u i l d i n g —• a not Inconsiderable sum f o r that day. A l l went w e l l u n t i l the o r i g i n a l supply of raw m a t e r i a l was exhausted. Then the Coast was scoured f o r rags, but without a v a i l , f o r the 'nineties were years of economic depression on the Coast and l i t t l e c l o t h i n g was discarded. Inasmuch as the promoters had o r i g i n a l l y intended to make paper from pulp, a pulp-making plant was set up. A reasonably large quantity of wrapping paper was produced,-" 0 but the 352 Carmichael, H., "Pioneer days In pulp and paper", B r i t i s h . Columbia. H i s t o r i c a l Quarterly;, v o l . 9? (July? 1945)? p. 201. 353 i b i d . , p. 203. 177 operation was nbt economical. The machinery was designed f o r the manufacture of rag paper and rag paper only. 3 5 4 T > a e m i l l c ] _ o s e d d o w n i n 1895,, Seven years l a t e r the p r o v i n c i a l government made the f i r s t serious attempt to Interest i n t e r n a t i o n a l i n d u s t r i a l i s t s i n the pulp wood timber of B r i t i s h Columbia. The growing shortage of pulp wood timber i n the southern and eastern states was being Inc r e a s i n g l y f e l t . The expanding markets of A u s t r a l i a , South America, the Orient, C a l i f o r n i a , Oregon and Washington, coupled with the Imminent con s t r u c t i o n of the Panama Canal aroused new i n t e r e s t i n the vast pulp-wood f o r e s t s of B r i t i s h Columbia. The n a t u r a l advantages of the province seemed obviouss i t s pulp-wood timber was not only greater i n quantity than that of Washington or Oregon but i t was als o more advantageously s i t u a t e d , the bulk of i t being w i t h i n a few miles of i t s many thousand miles of coast l i n e . An abundance of water power, near tidewater and cheap to develop, completed the p i c t u r e . Even so, c a p i t a l to develop even the choicest s i t e s was not r e a d i l y a v a i l a b l e . To encourage investors to e s t a b l i s h pulp and 3 54 Western Lumberman, v o l . 14, (May, 1917), p. 28. 178 paper p l a n t s , the p r o v i n c i a l government passed a s p e c i a l act i n 1 9 0 2 , enabling investors to obtain large t r a c t s of pulp wood and to hold them f o r twenty-one years with l i t t l e revenue to the government,355 <vhx±s l i b e r a l l e g i s l a t i o n c o n s t i t u t e d a great temptation to speculators to obtain l i m i t s and hold them f o r purely speculative purposes, the expense of survey and c r u i s i n g being the only disbursements necessary. The government's generous o f f e r came at an opportune time. The period 1903 to 1913 was one of high optimism i n B r i t i s h Columbia and the West generally, and speculation was i n the very a i r of a province beginning to experience i t s f i r s t period of uncontrolled boom. Several companies were formed almost immediately and they selected 354,399 a c r e s 3 ^ before the generous laws were repealed and replaced with others of a more st r i n g e n t nature. Under the new regulations the annual r e n t a l of a pulp lease was two cents an acre, and the leasee was required to erect a m i l l . The B e l l a Coola Pulp and Development Company was 355 West Coast and. Puget Sound Lumberman, v o l . 1 4 , ( g p n t c m b e r . ~ 1 9 0 3 ) . t>. 717;~anT*Ws^fcern Lumberman, v o l , (January, 1 9 1 2 ) , p. 3 3 . 25® s t a t i s t i c a l record ox the TDUID and caper Industrv, p. 4 4 . 179 representative of several speculative investments i n the pulp and paper industry of the time. I t was formed i n S e a t t l e , i n May, 1904, by A. E. Williams, c i t y attorney of S e a t t l e ; R. N. Thompson, a lacoma businessman; and four other S e a t t l e "operators who gained c o n t r o l of 79,999 acres of pulp wood f o r e s t s at the mouth of the B e l l a Coola River f o r the ostensible purpose of producing pulp and paper,357 ^ Norwegian colony, of four hundred persons, which was located near the s i t e of the proposed m i l l , would have constituted an e x c e l l e n t source of labor.358 I t i s doubtful, however, that the founders intended to produce pulp; instead w i t h Yankee shrewdness they recognized the province's l i b e r a l l e g i s l a t i o n as con-s t i t u t i n g an e x c e l l e n t opportunity to p r o f i t In speculation alone. They were not disappointed. I t was said that w i t h i n a period of two years over $1,500,000 of Eastern c a p i t a l was subscribed f o r the m i l l that was never b u i l t . A l l c a p i t a l was channeled through the F i r s t N a tional Bank of S e a t t l e , the treasurer of the 359 company.-^y 357 West Coast and Puget Sound Li^bjerman, v o l . 15, (June, 1904)","p. 612. 358 c o l o n i s t , ( A p r i l 6, 1906), p. 1. 359 Lumberman and Contractor, v o l . 3 , (May, 1906), p. 18. 180 In 1909 the B e l l a Coola Company sold I t s leases to the Ocean F a l l s Company, organized, i n that same year by the energetic Lester W. David, of S e a t t l e , with the l o c a l cooperation of the Honorable Edgar Dewdney. Dewdney had high ambitions f o r the B e l l a Coola area, one of which was to b u i l d a 250-mile r a i l r o a d to connect i t w ith Fraser Lake and the country's r a i l r o a d system. The collapse of the boom i n 1913 e f f e c t i v e l y disposed of that p l a n . David, the head of David Investment Company, of S e a t t l e , played a prominent r o l e i n e s t a b l i s h i n g s everal e a r l y B r i t i s h Columbia i n d u s t r i e s . His success i n obtaining c a p i t a l f o r the development of the Fraser M i l l s has already been discussed. In 1909 David v i s i t e d England, where he persuaded. Hamilton Benn, the Eng l i s h parliamentarian and f i n a n c i e r , and severalpaper merchants to supply c a p i t a l equivalent to seve r a l m i l l i o n d o l l a r s f o r the establishment of the new pulp industry.3°1 Their object was to supply customers i n the Far East and South America from B r i t i s h Columbia, rather than from London.3^2 Despite t h i s seemingly fortunate beginning, the attempt proved a f a i l u r e . I n s u f f i c i e n t Lumberman and Contractor, v o l . 3 , (May, 1906), p. 18. 3 6 l Western Lumberman, v o l . 1?, (August, 1920), p. 7 ^62 Columbia River and. Oregon Timberman, v o l . 7, (January, 1905), p. 29. 181 developmental c a p i t a l has been given as the reason, I t was closed down by the London holders of I t s debentures In Fay, 1913, a f t e r f i v e d i f f i c u l t years during which time the B r i t i s h Columbia government had p a t i e n t l y extended i t s leases i n the expectation of eventual production. The property was sold to the Crown-Willamette Paper Company of Portland, Oregon, which was dominated by the F l e i s c h a c k e r i n t e r e s t s of San F r a n c i s c o . In 1915 the name of the firm, was changed to P a c i f i c M i l l s , Limited. The new p r o p r i e t o r s soon added a paper m i l l and a chemical pulp m i l l to the property; and years l a t e r they b u i l t a converting plant i n Vancouver, ks a subsidiary of Crcwn-Y7illamette, the fortunes of P a c i f i c M i l l s , Limited, shone b r i g h t indeed. With p l e n t i f u l c a p i t a l a v a i l a b l e , and assured markets handled by an organization w e l l - e s t a b l i s h e d on the P a c i f i c Coast, P a c i f i c M i l l s expanded over the next four decades to produce a long l i s t of paper products. In 1954 the name of the company was changed to Crown-Zellerbach Canada, Limited, i n order to conform with that of the American parent company, which had also undergone a change of name but not of ownership. Control of the large enterprise had s h i f t e d , however, from 3°° Western Lumberman, v o l . 10, (June, 1913). p» 37" 182 Portland to San'Francisco. The O r i e n t a l Pulp and Paper Company was another pioneer attempt by E n g l i s h Investors to produce pulp from c o a s t a l f o r e s t s . This company, which c o n t r o l l e d an 84,180-acre lease at Swanson Bay,3^4 w a s underwritten by the Canadian F i n a n c i a l Syndicate, founded In London 365 i n the spring of 1903 f o r the express purpose of f i n a n c i n g B r i t i s h undertakings i n B r i t i s h Columbia. I t s investment, managed In B r i t i s h Columbia by .J. M. Mackinnon, amounted to #300,000 over the next two y e a r s . 3 ^ In January, 1905? the Canadian P a c i f i c Pulp and Paper Company, another London-backed group took over the leases and property of the f i r m which had expended i t s f u l l c a p i t a l allotment without producing an ounce of pulp. But the new company fared no better despite the f a c t that i t had a guaranteed market i n England and 367 a considerable number of orders on i t s i n i t i a l f i l e . I t d i d , however, produce the f i r s t pulp i n B r i t i s h Columbia, i n September, 1909. I t operated f o r s e v e r a l months before c l o s i n g down f o r undisclosed reasons. 3 ^ 4 S t a t i s t i c a l Record of the Pulp and Paper Industry, p. 44. Columbia River and Oregon Timberman, v o l . 6, (November, 1904), p. 32. ' 366 Timberman, (January, 1905)? p. 54. 3^7 Loc. c i t , 183 Once again a new group of English Investors were found to take over the i d l e property and i t s name was changed to the Swanson Bay Forests, Wood, Pulp and Paper Company, L i m i t e d . 3 ^ The new En g l i s h c o n t r o l l e r s fared no bet t e r than the o l d , and once again, In 1916, the company underwent f u r t h e r r e o r g a n i z a t i o n , emerging as the Empire Pulp and Paper M i l l s . In 19185 a f t e r expending vast sums, London i n d u s t r i a l i s t s f i n a l l y r e l i n q u i s h e d t h e i r attempt to operate an Industry f a r removed geographically from. London and even f a r t h e r removed from conditions which they could c o n t r o l . The f i r m passed i n t o the possession of two "^ 69 Canadian papermen, George and W. H. Whalen. y The Whalen brothers were themselves pioneers i n the business. Natives of Port Arthur, Ontario, they migrated to B r i t i s h Columbia expressly to in v e s t i g a t e the lumber Industry of the p r o v i n c e . - ^ With the backing of Eastern Canadian c a p i t a l , the Whalens erected the B r i t i s h Columbia Su l p h i t e Company Limited on Howe Sound i n 1 9 1 1 , 3 7 1 and by February of the fo l l o w i n g year, t h i s f i r m was producing f i f t y tons of sul p h i t e pulp 3 ^ 8 Western Lumberman, v o l . 9, (March, 1912), p. 25* 3 6 5 B r i t i s h Columbian 1919-20, Sun Publishing Company, Vancouver, 1920, p. 31. 37° West Coast Lumberman^, v o l , 64, (March, 1937). p. 62. \ ^ 3 7 1 Western Lumberman, v o l . 9>\ (March, 1912), p. 33. 184 d a i l y . From t h i s e a r l y success the Whalens went on to make t h e i r name a power i n the world of pulp and paper. Their a c q u i s i t i o n of the a i l i n g Empire Pulp and Paper Company In 1918 rounded out the development of the l a r g e s t pulp-producing organization of the era. Rapid expansion, however, had st r a i n e d the finances of the company. The world's markets were In a most unsettled state during the f i r s t post-war years and the p r i c e of pulp f e l l from i t s high point of $114 a ton i n 1920 to |68 i n 1921. The collapse of the Japanese market f o l l o w i n g the earthquake of 1923 further unsettled the Canadian company, which, l i k e other companies independent of American c o n t r o l , depended l a r g e l y on A u s t r a l i a and the Orient f o r custom. The Whalens took t h e i r f i r s t step to avert collapse i n 1919, when S i r George Bury, the vice-president of the Canadian P a c i f i c Railway Company, was engaged to undertake the r e o r g a n i z a t i o n of the Industry, Bury made several much needed changes but remained helpless i n the face of f a l l i n g p r i c e s f o r pulp, 372 A r e c e i v e r was appointed i n September, 1923, The Eastern Canadian bondholders bought i n the properties at the j u d i c i a l sale held i n 1925 and incorporated a 872 s t a t i s t i c a l Record of the Pulp and Paper Industry, PT~"4O\ 185 new company under the name B r i t i s h Columbia Pult> and Paper Company, Limited. They abandoned the Swanson Bay m i l l s h o r t l y t hereafter but continued to operate the Howe Sound and Quatsi.no m i l l s u n t i l 1951. In that year they merged with the Koerner family's Alaska Pine Company to form the Alaska Pine and C e l l u l o s e Company, which was In turn acquired by Rayonier, Incorporated, of New York. Another e a r l y name i n the Industry was the Western Canada Pulp and Paper Company Limited, which was f l o a t e d i n England i n 1904.373 The l o c a l f a c t o r i n t h i s company was the Hon. R, G. Tatlow, the p r o v i n c i a l M i n i s t e r of Finance. Preparations were made by the d i r e c t o r s of the company, leading paper manufacturers of London, to develop t h e i r 163,000 acres of l i m i t s at Powell Lake, but f o r undisclosed reasons nothing came of the venture. Perhaps they were too f a r removed from the P a c i f i c Coast to judge the need of the area accurately, Whatever the reason, the property passed i n t o the hands of the Canadian I n d u s t r i a l Company, which sold i t i n October, 1909, to D. F. Brooks and M. J. S c a n l o n , p r o m i n e n t i n t e r n a t i o n a l lumber operators of Minneapolis, whose 373 West Coast Lumberman, v o l . 16, (June, 1905), p. 573. 374 B r i t i s h Columbia, 1919-19.20, Vancouver Sun, 1920, p. 31 . 186 f i r m , the Brooks-Scanlon Lumber Company, of Minneapolis, has already been mentioned i n connection with other large l o c a l timber investments. The new owners renamed i t Powell River Paper Company, Limited, and proceeded to transform i t i n t o one of the most succ e s s f u l I n d u s t r i a l enterprises i n the province. Surveys of the l i m i t s were made i n 1910, but development was slow at f i r s t ; i t was not u n t i l A p r i l , 1912, that the f i r s t shipment of paper was dispatched to various P a c i f i c Coast c i t i e s . Rapid development followed i n the war years, and w i t h i n a decade newspapers from Prince Rupert to Los Angeles and from F o r t Worth, Texas, to Buenos Aires were using thousands of tons of the product. Control of t h i s great f i r m remained i n the hands of Brooks and Scanlon u n t i l the death of both partners i n 1930. The p r i n c i p a l shareholders i n t h i s company were a l s o p r i n c i p a l shareholders In the Cr own-Wi1la me 11 e Company, •376 of Portland, Oregon. The company expanded g r e a t l y during the 1940's under the s t i m u l a t i o n of a war economy. In 1947 a large hydraulic barker, the f i r s t of i t s kind i n Western Canada was i n s t a l l e d as part of a four-year t h i r t e e n m i l l i o n d o l l a r 375 Western Lumberman, v o l . 2 3 , (October, 1926), p. 40. 3 7 6 I b i d . , v o l . 17, (August, 1920), p. 71. 18? modernization program. 4 f u r t h e r investment of f i f t e e n m i l l i o n d o l l a r s was made In replacement and modernization i n the f o l l o w i n g f i v e years, and by 1953 the company had become the world's l a r g e s t newsprint m i l l w ith a production record of 1,219.9 tons i n one 24-hour p e r i o d . 3 7 7 The trend towards f u l l u t i l i z a t i o n of the f o r e s t crop induced the Powell River Company to e s t a b l i s h logging operations and sawmills which would give i t access to extensive pulp-wood holdings and at the same time d i v e r t i t s more valuable logs i n t o lumber. By 1951? ten logging operations served the company, one as f a r d i s t a n t as Massett I n l e t , 520 miles from the company's m i l l s . - " The m i l l at Port Mellon, now owned by the Howe Sound Pulp D i v i s i o n of Canadian Forest Products Limited, was erected In 1908 at a cost of $375,000. As the B r i t i s h Canadian Wood Pulp and Paper Company, t h i s B r i t i s h - f i n a n c e d m i l l began In the winter of 1909 to produce a sporadic seven tons of manilla paper and f i f t e e n tons of chemical pulp d a i l y . I t s assets were extensive, f o r i n a d d i t i o n to i t s own m i l l and l i m i t s at Port Mellon, i t owned 55.569 acres of f o r e s t t r a c t s on Quatsino Sound, o r i g i n a l l y the property of the defunct Quatsino 3 7 7 S t a t i s t i c a l record of the pulp and paper industry, p. 4o. 3 7 8 Lumberman, v o l . 78, ( A p r i l , 1 9 5 D , p. 62. 188 Power and Pulp Company. After only two years of operation t h i s B r i t i s h -owned company closed down f o r lack of c a p i t a l to make needed improvements. On August 18, 1910, the m i l l w i t h a l l I t s l o c a l assets and those on Quatsino Sound passed i n t o the c o n t r o l of a group headed by Joseph Martin, K. C., one-time premier of B r i t i s h Columbia, T. F. Pater son, an ex-lieutenant-governor, W. I . Paterson, ^80 a l o c a l lumberman, and J . S. Harvey."' Once again the agreement included the t r a n s f e r of the assets and leases of the Ouatsino Pulp and Paper Company. In 1910 the C o l o n i a l Pulp and Paper Company, i n which George F. Whalen fi g u r e d prominently, acquired both p r o p e r t i e s . The f i n a n c i a l health of t h i s company was never better than doubtful and the f i r m underwent many reorganizations i n the next t h i r t y years. During the "twenties and ' t h i r t i e s i t f l o u r i s h e d when economic or p o l i t i c a l conditions i n the Orient and A u s t r a l i a were favorable and i t sagged when conditions were not. After the Japanese invasion of China, i t closed down temporarily. In June, 1939, the Columbia River Paper M i l l s , of 379 united States Government, Department of Commerce, Monthly Consular and Trade. Reports, (January 1910), Washingtonj Government P r i n t i n g O f f i c e , 1910. 3 8 0 Western Lumberman, v o l . 7, (September, 1910), p. 20. 189 Vancouver, Washington, purchased the assets of the company with $500,000 worth of "bonds and reorganized i t under the name of Vancouver K r a f t Company, Limited. Chief f a c t o r s i n the company were the C. E. Leadbetter i n t e r e s t s of Oregon. In 1941, the Sorg Paper Company of Middleton, Ohio, f i n d i n g t h e i r source of Swedish pulp cut o f f owing to the war, purchased the m i l l as a means of obtaining a raw m a t e r i a l supply f o r t h e i r American p l a n t s . When Swedish pulp became a v a i l a b l e once again a f t e r the cessation of h o s t i l i t i e s , the parent company closed the plant down. I t was purchased i n 1951 by Canadian Forest Products, Limited, as a processing m i l l to handle the-waste recovered from the lumber operations of i t s 382 Ebnrne Sawmills i n Vancouver.-3 With the increased demand for pulp and paper a f t e r 1945? other large pulp manufacturers entered the province. In 1952 I t was announced that Celgar Development Company Limited, a wholly-owned subsidiary of Canadian Chemical and C e l l u l o s e Company, Limited, would e x p l o i t the Arrow Lakes region i n a s i x t y - f i v e m i l l i o n d o l l a r integrated f o r e s t industry centring on West Coast Lumberman, v o l , 66, ( J u l y , 1939) p. 54. S t a t i s t i c a l record of the pulp and paper 190 Castlegar.3°3 The K i t i m a t Pulp and Paper Company, c o n t r o l l e d by the American-owned Powell River Company and the American-controlled Aluminum Company of Canada, erected a s i x t y - f i v e m i l l i o n d o l l a r pulp and paper in d u s t r y at K i t i m a t , where the Aluminum Company of Canada established a large aluminum plant based upon r e a d i l y a v a i l a b l e cheap hydro-power,384 In 1951, the Columbia C e l l u l o s e Company, set up a high-alpha m i l l at Watson Isl a n d , near Prince Rupert, where I t used about eighty m i l l i o n feet of pulp wood og5 a year, J This company, a subsi d i a r y of the Celanese Corporation of America, began operations under the f i r s t f o r e s t management l i c e n c e granted by the B r i t i s h Columbia government, — a l i c e n c e ?/hich covered an area of nearly 7 0 0 , 0 0 0 acres, or about one thousand square m i l e s . 3 8 ^ By 1952 there were twelve m i l l s manufacturing pulp, paper, or both products i n the Coast region. They u t i l i z e d e i t h e r raw logs, waste from lumbering and logging 383 s t a t i s t i c a l record of the pulp and oaper Industry, p. 57. 3 8 4 Loc, c i t . 385 Lumberman, v o l . 78, (May, 1951)? p. 60. 3 8 6 Loc. c i t . 191 operations, or both. The demand fo r material to feed the operations was dramatic. In 1952 i t represented 20.9 per cent of the t o t a l log cut of the province; hemlock accounted f o r 88.18 per cent of that . 3 8 ? And e i g h t y - f i v e per cent of the raw material which was used to produce the 211,000 tons of k r a f t pulp was sawmill waste.->^w Sawmill burners, long a landmark i n almost every sawmllllng community, began to disappear from the c o a s t a l areas and the problem of superfluous hemlock, which the Koerners had p a r t i a l l y solved, ceased to e x i s t . During the period between 1945 and 1951 the annual production of pulp and paper i n the province op, o Increased from 534,000 tons to 962,000 tons, " and I t s net value rose from 118,879,580 In 1942 to #81,452,218 390 In 1952o In the course of f o r t y years the Industry had developed Into an important f a c t o r In the f o r e s t economy of the province. ^ r Fg^dlaiiPB&p. - a R d P a p e r Industry, v o l . 5, -^ '<- Wright, Thomas G,, " E f f e c t s of recent pulp and paper developments i n B r i t i s h Columbia on the f o r e s t " , The F o r e s t r y Chronicle, (December, 1952), v o l . 28, p. 43. 3 8 9 Loc... c i t . 3 9 0 S t a t i s t i c a l record of the pulp and Paper iMwsin? P. 15. CHAPTER Y CONCLUSION There emerges from t h i s study a c e r t a i n p a t t e r n of development which characterizes the lumber Industry of the- province as a whole* That pattern i s i t s e l f the .product of c e r t a i n basic considerations: the Isolated geographic l o c a t i o n of the Industry i n r e l a t i o n to the t r a d i t i o n a l lumber-consuming markets of the world; the i n a b i l i t y of the Industry to achieve s t a b i l i t y owing to i t s h i s t o r i c a l dependence on overseas markets which expand, contract, or even cease to e x i s t , according to the prevalent- economic or p o l i t i c a l climate; and the dependence of the Industry upon f o r e i g n c a p i t a l with a l l i t s b e n e f i t s and I t s accompanying dangers i n the absence of Canadian Investment, The Isolated l o c a t i o n of the province, f a r d i s t a n t from the main trade routes of the world, e f f e c t i v e l y retarded the development of the lumber industry. The few ships engaged i n transporting supplies to the comparatively small population of the province were a v a i l a b l e f o r carrying r e t u r n cargoes of lumber, but t h e i r number was t o t a l l y inadequate to the demands of the trade. This condition was aggravated by the domination of P a c i f i c shipping by San Francisco brokers who preferred, a l l considerations being equal, to charter t h e i r ships to 193 m i l l s on the American side of the border. This handicap was temporarily overcome by the settlement of the Canadian P r a i r i e s and the subsequent r i s e of a large market f o r Coast lumber. The Panama Canal served to lessen considerably the province's I s o l a t i o n from the main markets of the A t l a n t i c community and to make the ports of Vancouver and Few Westminster more a t t r a c t i v e to sea f r e i g h t e r s . Hot, however, u n t i l the industr y established i t s own l i n e of ocean-going lumber c a r r i e r s was the problem of trans-p o r t a t i o n solved. Even then the cost of tr a n s p o r t a t i o n from the Northwest P a c i f i c to d i s t a n t nations was often great enough to p r i c e the Coast product out of the l o c a l market. Un l i k e other large lumber producers of the world, the B r i t i s h Columbia Industry had no large home market to give i t s t a b i l i t y . The American industry i n the P a c i f i c Northwest enjoyed a large and w e l l protected home market over which i t had considerable c o n t r o l i n regard to p r i c e s . The Soviet lumber Industry also enjoyed a large and. r i g i d l y c o n t r o l l e d home market, and the p r i c e at which i t marketed, i t s product overseas was of no s p e c i a l consideration. The industry of the Scandinavian countries has always maintained a c e r t a i n s t a b i l i t y from t h e i r propinquity to the world's chief consuming markets and t h e i r a b i l i t y through the huge volume of t h e i r production 194 to c o n t r o l prices to some extent. The B r i t i s h Columbia f o r e s t industry, on the other hand, was considerably less fortunate. I t depended on a world market i n which i t supplied l e s s than three per cent of the t o t a l lumber consumed and le s s than three per cent of the pulp.3^1 i t could, therefore, exercise no c o n t r o l over the p r i c e at which i t was s o l d . These handicaps made the B r i t i s h Columbia industry extremely vulnerable to i n t e r n a t i o n a l economic and p o l i t i c a l c r i s e s . Wars, embargoes, trade agreements, and exchange d i f f i c u l t i e s i n f a r d i s t a n t parts made or undid the B r i t i s h Columbia industry from time to time. The p r o s p e r i t y of the Al b e r n i m i l l depended upon-the continuation of the C i v i l War; the Smoot-Hawley t a r i f f , which barred B r i t i s h Columbia lumber from i t s prime market i n the United States, threw the industry i n t o temporary depression; barter agreements between the Soviet Union and the United Kingdom or between the Soviet Union and Japan were known to d i s l o c a t e industry i n many B r i t i s h Columbia m i l l s ; and the shortage of d o l l a r s i n the s t e r l i n g area e f f e c t i v e l y ruined the t r a d i t i o n a l p o s i t i o n of the B r i t i s h Columbia industry i n the United Kingdom and other s t e r l i n g - b l o c countries. The s t a b i l i t y which the industry seemed to enjoy 391 Timberman, v o l . 81, (January, 1954), p. 100. 195 In 1952 was h i g h l y uncertain, depending as i t did on the maintenance of the American market. I t was estimated by one a u t h o r i t y that a ten per cent increase i n American production would mean that that market could dispense with Canadian lumber. An economic depression i n the United States could e f f e c t the same end. Another problem which did much to shape the pat t e r n of the growth of the Industry was' the s c a r c i t y of c a p i t a l . Canadian c a p i t a l hardly f i g u r e d i n the industry except i n very recent years, Even then i t ranked a vary poor t h i r d to American and B r i t i s h c a p i t a l . B r i t i s h c a p i t a l Invested i n the industry did not fare w e l l . Bad timing and f a u l t y judgment was l a r g e l y to blame f o r t h i s unfortunate occurrence although h e s i t a t i o n to supply adequate c a p i t a l and poor l o c a l management contributed to the f a i l u r e , A notable c h a r a c t e r i s t i c of B r i t i s h investment i n Canada and the United States was the w i l l i n g n e s s of the B r i t i s h investor to leave the management of h i s enterprises i n the hands of l o c a l i n d u s t r i a l i s t s . This p r a c t i c e was followed e s p e c i a l l y i n enterprises where the B r i t i s h owners possessed no s p e c i a l knowledge of the undertaking. On the whole t h i s method proved successful, but sometimes, notably i n the case of Western American r a i l r o a d s , i t proved disastrous. C e r t a i n l y the B r i t i s h 195a were not wise i n t h e i r choice of managers f o r t h e i r B r i t i s h Columbia pulp and paper m i l l s . B r i t i s h investment i n the f i r s t period of economic expansion (1902-1913) was marked by considerable caution. The B r i t i s h investor had just gone through d i f f i c u l t times i n which he had Watched the value of hi s Investment i n American western r a i l r o a d s shrink owing to the economic depression of the 'n i n e t i e s , and his mining ventures i n West A u s t r a l i a and the Transvaal turn out d i s a s t r o u s l y . Then he was c a l l e d upon to underwrite government s e c u r i t i e s to finance the Boer War and to r e p a i r the damage that i t wrought to the nation's f i n a n c i a l p o s i t i o n . When London's money market recovered from these reverses, the cautious B r i t i s h investor preferred to invest h i s c a p i t a l i n undertakings which offered a c e r t a i n and safe reward. B r i t i s h investment i n Canada r e f l e c t s ' ;; that caution. Of a t o t a l B r i t i s h investment of $890,805}625 made between 1905 and 1911, le s s than $ 1 2 0 , 0 0 0 , 0 0 0 was placed i n i n d u s t r i a l , mining, f o r e s t and land s e c u r i t i e s . 3 9 2 The d i s l o c a t i o n caused by two great wars, an economic depression, and a. protracted period of post-war economic recovery further weakened the B r i t i s h investors J > F i e l d , F. W., C a p i t a l Investments In Canada, Monetary Times, Toronto, 1911, p. 9* 195b I n t e r e s t In the lumber i n d u s t r i e s of the province. American Investors, on the other hand, were considerably more responsive to the money-making p o s s i b i l i t i e s of the province's f o r e s t s . In the course of a century ' the moving f r o n t i e r of America had accustomed American investors to adapt t h e i r commercial behaviour to r a p i d l y changing circumstances. B r i t i s h Columbia posed no problem f o r Mid-West American c a p i t a l i s t s who had already adjusted themselves to the p e c u l i a r conditions of Washington and Oregon. In f a c t , conditions f o r business and i n d u s t r i a l success i n B r i t i s h Columbia were not r a d i c a l l y d i f f e r e n t from those of the American Northwest and many an American lumberman r i g h t l y considered B r i t i s h Columbia l i t t l e more than a n a t u r a l economic and geo-g r a p h i c a l extension of that region. Retrenchment i n B r i t i s h investment at the turn of the century occurred at the very time when American economic expansion was at a peak. The c a p i t a l value of the United States more than doubled between 1890 and 1904, when more than eighty b i l l i o n d o l l a r s was added to pre-e x i s t i n g w e a l t h , 3 ^ 3 and the export of American c a p i t a l began. ' B r i t i s h Columbia f e l t the strength of America's ~'^ ~> Schultz, William J . , and Caine, M, R., F i n a n c i a l Development of the United States, Hew York, P r e n t i c e - H a l l Inc., 1937? P. 430. 195c c a p i t a l exports 'more strongl y than any other part of the nation. The American investment was never l i q u i d a t e d during the decades that followed. After 1942, when the United States became the only r e a l source of c a p i t a l , American investment increased r a p i d l y to the point where, according to H. R. MacMillan, United States i n t e r e s t s owned more than one-half of the investment i n B r i t i s h Columbia f o r e s t s and i n wood-consuming m i l l s of a l l kinds . 3 9 4 As the Tlmberman, an American trade p e r i o d i c a l , observed f i f t y years before: I t i s only o c c a s i o n a l l y that Canadians get a g r i p on what they term t h e i r b i r t h - r i g h t ; the e n t e r p r i s i n g American with a knowledge and an appreciation of the p o s s i b i l i t i e s , generally secures I t f i r s t , 3 9 5 394 Vancouver Province, (June 19, 1956), p. 16. Tlmberman, v o l . 9, XMarch, 1907), p. 31» BIBLIOGRAPHY I. Manuscript Sources 1. - C orr e s p ondenc e DeBeck, s. w., Correspondence, 1931. Palmer, B. J . , Correspondence, 1914. Sproat, G. M., Correspondence, 1864. McBride papers,, e s p e c i a l l y those concerning McBride's attempt"to f i n d a market Jm England f o r B. 0 , lumber, (1912-1916,) P r o v i n c i a l archives. 2. Government manuscrlpts B r i t i s h Columbia, I l o j ^ l _ _ i ^ i r n i s s ion, on ,th.em f o r e s t resp urc e s_o f B r i t i s h Co iurab i a , V i ct o r I a,~ B~ C., 19457' (A mine of information i s a v a i l a b l e In the proceedings of the one-man Royal Commission i n v e s t i g a t i n g the condition of the p r o v i n c i a l f o r e s t s i n 1945. Avai l a b l e i n twenty-seven typewritten volumes In both the P r o v i n c i a l L i b r a r y , V i c t o r i a , and at the L i b r a r y of the U n i v e r s i t y of B r i t i s h Columbia.) Compilation of^sawmills i n province established b.e.^eelTlB4l"and., lSg%T &aie&~V$Wlt~W; Bolder 901-1, P r ov1nei a i arc hIv e s. 3» Theses,, and graduating essays Backman, Arvid, Thj^_growjA of^ in , the l u m b e r i n j ^ h d u s t r y , graduating" essay. U n i v e r s i t y o T B r i t T i F C olumb la^"' 19 43. E i l s l a n d , W. W., A h i s t o r y of Revelstoke and, the Big, Bend, Master of Arts t h e s i s . U n i v e r s i t y of B r i t i s h Columbia, 1955. (Contains a short but thorough treatment of the industry on which much of Revelstoke's pr o s p e r i t y was based.) 1 on -- y ( Cairney, D. ''W., The e f f e c t of some econotnic disturbancej on the lumber trade of Washij^torT and B r i t i s ] i Columbia, Master""of Science"thesis,' U n i v e r s i t y of Washington, 1935. Cranston, R. B., The f o r e s t s and f o r e s t i n d u s t r i e s of B r i t i s h Columbia", Master"~of S cience" t h e s i s , U n i v e r s i t y of Washington, 1935 (?) Flynn, James F., Sa r ly_ lumber1 l.ng, on Burrard a._Inlet, 1 8 6 2 - 1 8 9 1 , graduating essay, U n i v e r s i t v of B r i t i s h Columbia, 1942, Iwasaki, Hideo, S t a t i s t i c a l a n a l y s i s of the, .trade_.of Canada with Japan, graduating essay, U n i ^ r s i t y " of B r i t i s h Columbia, 1938, Munro, G., A h i s t o r y of the, B r i t i s h Columbia lumbgr trade, 1920-40, a graduating essay, U n i v e r s i t y of B r i t i s h Columbia, 1956, Ormsby, . M. A., A .study of the OkanaganValley i n B r i t i s h Columbia, Master of Arts t h e s i s , U n i v e r s i t y of B r i t i s h Columbia, Apri (Covers the establishment of the industry i n the Okanagan region.) Purves, D. F., F e r e s j r ^ a n d ^ B r i t i s h Columbia' s Lumber Markets, g r a a r a t i n£"e s s a y, U n i v e r s i t y of B r i t i s h Columbia, 1934. (Treatment of mate r i a l i s very general) Thrunp, S., H i s t o r y of the Cranbrook D i s t r i c t , Master of Arts t h e s i s , U n i v e r s i t y of B r i t i s h Columbia, 1929. ( S u r p r i s i n g l y d e f i c i e n t i n i t s treatment of the economic basis of the area's growth.* but generally useful,) Woodward-Reynolds, K. IT., A h i s t o r y of the c i t y and d i s t r i c t of Worth Vancouver, Master of Arts t h e s i s . U n i v e r s i t y of B r i t i s h Columbia, October, 1943, Yerburgh, R., EcmTgmic. h i s t o r y of n f o r e s t r y i n Bri11sh C0lumbia, Master of Arts t h e s i s , U n i v e r s i t y of B r i t i s h Columbia, A p r i l , 1931. 198 H « Pr 1 n t e . Wo r ks P r i n t e d .government documents B r i t i s h Columbia, Department of Lands, Forest Branch, Report(s), V i c t o r i a , B. C., 1912-52. B r i t i s h Columbia, Department of Lands and Forests, Forest Service, Forest P o l i c y and l e g i s l a t i o n • i n B r i t i s h Columbia, V i c t o r i a , King's P r i n t e r , 1947. (A paper prepared f o r the F i f t h B r i t i s h Empire F o r e s t r y conference, held i n London i n 1947.) B r i t i s h Columbia', Department of Lands and Forests, ft.Q_P.g..r.^ V i c t o r i a , "King's"' Printer", 1*9107, B r i t i s h Columbia, Department of trade and industry, E x t e r n a l trade, 1952, V i c t o r i a , 1953• B r i t i s h Columbia, Royal Commission of i n q u i r y on timber and f o r e s t r y , 1909-1910. F i n a l report, V i c t o r i a , 1911. Canada, House of Commons, Debates, 1904, Ottawa, King's P r i n t e r , 1905. (Contains a di s c u s s i o n of the need to in v e s t i g a t e the lumber monopoly of the Coast province.) Canada, House of Commons, Journals, 1906-07, Ottawa, King's P r i n t e r , 1908, Great B r i t a i n , Parliament, Imperia1 Economic Conference at Ottawa, 1932, Summary of proceedings, and copies of trade agreements, cmd. 4174, London, H.'M. Stationery O f f i c e , 1932. Howd, C l o i c e R., Ihidusjrla 1..Relations, i n the West Coast Lumber Industry, Washington, D. C., U. S. Bureau of Labor S t a t i s t i c s , B u l l e t i n Ho. 349, 1923. ( P r i m a r i l y a review of labor conditions, but discusses the development of the e a r l y lumber industry on the P a c i f i c Coast.) 199 Kingston, J . T. B. and We s t f i e l d , L. P., S t a t i s t i c a l jj§JLQI!.d,.o_f..the Pulp and Paper Industry i n , B r i t i s h Columbia? Bureau of Economics and S t a t i s t i c s , Department of Trade and Commerce, V i c t o r i a , B. C , Queen's P r i n t e r , 1955. (Contains a b r i e f h i s t o r y of B r i t i s h Columbia's pulp and paper industry as an Appendix.) Langevin, H. L., B r i t i s h Columbia. Report of the Hon, H. I , Langeyl.n, p r i n t e d by order of parliament, Ottawa, I.872. (Describes the con d i t i o n of fo r e s t s and lumber industry of the province when B r i t i s h Columbia joined, the Dominion,) Mercer, Wm. H., Growth, of Ghost towns, V i c t o r i a , King's P r i n t e r , 1944. (The decline of f o r e s t a c t i v i t y i n the East Kootenay d i s t r i c t and the e f f e c t of the growth of ghost towns on the d i s t r i b u t i n g centres of Cranbrook and Fernie.) Mulholland, F. D., The Forest Resources of B r i t i s h Columbia, V i c t o r i a , King's P r i n t e r , 1937• (One of the best standard d e s c r i p t i o n s of the Coast f o r e s t s . ) United States, Department of Commerce, Monthly Consular and.Trade Reports, 1900-1912. ( A v a i l a b l e i n the l i b r a r y of the U n i v e r s i t y of C a l i f o r n i a at Los Angeles. The reports of American consuls and agents located In Vancouver, V i c t o r i a and Nelson, often c o n s t i t u t e the only Information on certain, aspects of l o c a l h i s t o r y . ) Whitford, H. IT., and Cra i g , R. D., Forests of Br 1 t i s h Coluribla, Commission of Conservation. Committee on Forests, Ottawa, King's P r i n t e r , 19180 2, Newspapers "Moodvvilie," Vancouver News and D a i l y Advertiser, ( A p r i l 2, 1887), p. 1. 200 "Vancouver Is l a n d Timber," V i c t o r i a B r i t i s h C o l o n i s t , (February 19, 1861), p. 2, and various issues. San Francisco D a i l y Evening 3 u l l 3 t i n , various issues. ( A v a i l a b l e i n the l i b r a r y of the U n i v e r s i t y of C a l i f o r n i a , Los Angeles.) Vancouver News Herald, various Issues Vancouver Province, various issues Vancouver Sun, various issues V i c t o r i a C o l o n i s t , various issues 3. P e r i o d i c a l s BrjLtijh. Columbia Commercial Journal, V i c t o r i a , B. C. (Several of these valuable contemporary records of the commerce of B r i t i s h Columbia i n the e a r l y 1890's are a v a i l a b l e i n the P r o v i n c i a l Archives, V i c t o r i a , B. C.) B r i t i s h Columbia Lumberman, 1917-1954. Known as x: P a c i f i c Coast_JLpjiberman from 1917 to 1923. (One of the chief sources of t h i s study. This i s probably the most u s e f u l of a l l the trade p u b l i c a t i o n s . ) B r i t i s h Columbia Magazine (Sometimes c a l l e d Westward HoJ or Man to Man Magazine. A booster magazine published between 1907 and 1915* Not always r e l i a b l e but u s e f u l nevertheless.) Canadian Forestry A s s o c i a t i o n , Ottawa, Report(s), 1902-1913. Canadian Forestry Journal, 1904-1954-. (Various over-a 11 issues proved usef u l i n gaining an p i c t u r e of the topic.) 201 Columbia River and Oregon Tlmberman, l a t e r changed to Tlmberman (Av a i l a b l e i n Forestry L i b r a r y of U n i v e r s i t y of Washington, S e a t t l e , Washington, One of the chief sources of t h i s work. The e a r l i e r numbers of t h i s p e r i o d i c a l (1899-1905) supply much data .pertaining to the B r i t i s h Columbia industry not otherwise a v a i l a b l e , ) Lurnberman and Contractor ? 1904-1907; known as x Western Canada Lumberman, 1908, and. as Western Lumberman (Another chief source of information on the industr y between 1904 and 192 5,) P a c i f i c Lumber Trade_,.Jojarnal? S e a t t l e , Washington, June 1912 - June 1_915« Resources of B r i t i s h Columbia, 1883, 1884, 1885. (The f i r s t number of t h i s e a r l y booster magazine was published i n V i c t o r i a on March 1, 1883. I t ceased p u b l i c a t i o n with i t s J u l y , 1885 issue. They contained a considerable amount of f a c t u a l material on e a r l y B r i t i s h Columbia.) West Coast Lumberman, sometimes known as West Coast and Puget Sound Lumberman (This S e a t t l e and Tacoma p u b l i c a t i o n i s a v a i l a b l e i n the Fo r e s t r y L i b r a r y , U n i v e r s i t y of Washington, S e a t t l e , Washington, A u s e f u l source f o r the e a r l i e r years of the industry.) In a d d i t i o n to these extensively quoted sources, the f o l l o w i n g p e r i o d i c a l s were used: Canada Lumberman Canadian Pulp and Paper Industry •x" Forest and M i l l The Journal of Forestry Bennett, R. B,, "Early days i n B r i t i s h . Columbia," B r i t i s h Columbia Lumberman, v o l . 14, (December, TsWT, ~ 16. ™~ 202 "The blgges't sawmill i n the world," B r i t i s h Columbia Ma^zMne, v o l . 7 (August, 1911), pp.H^-b^tTT™" (A d e t a i l e d d e s c r i p t i o n of the great Fraser M i l l s i n i t s hey-day.) Carmichael, Herbert, "Pioneer days i n puln and pacer," B. C. H i s t o r i c a l Review, v o l . 9 ( J u l y , 1945)," PP. 201-211. ( P r i m a r i l y an account of Hewartson's ~,fS attempt to set up a pulp industry at Alber n i and the founding of the Powell River Company some years l a t e r . ) Copeland, Henry C , "Some h i s t o r i c a l h i g h l i g h t s on the B r i t i s h Columbia timber industry," Western Lumberman, v o l . 19 (August, 1922), p. 31-33. (A chronological account of the industry.) Dixon, L. B., "The b i r t h of the lumber industry i n B r i t i s h Columbia," Forest a n d j i l l . v o l . 2, (February, 1957), P. T5$"7iarch," 1957)» p. 8; ( A p r i l , 1957), P . 8; (May, 1957), n. 8j (June, 1957), p. 8; ( J u l v , 1957), P. 3: (August, 1957), p. 8; (September, 1957) Hansuld, George, "How the lumber trade i s affected by the gr a i n trade of the P a c i f i c Northwest," Western Lumberman, v o l . 26 ( J u l y , 1929), p. 12. Hendry, John, "Logging i n B r i t i s h Columbia," Wes te r n ..Lumberman, v o l . 7 (September, 1910), p. 21 . Howay, F. W., "E a r l y Settlement on Burrard I n l e t , " B r i t i s h Columbia H i s t o r i c a l Quarterly, v o l . 1 Howay, F. W., "E a r l y shipping on Burrard I n l e t , 1863-1870," B r i t i s h Columbia H i s t o r i c a l Quarterly, v o l . 1 (January, 1937), PP• 1-20. "The Indians c a l l e d i t Tzimroinis," Harmac News, (February - March, 1956), p. 7. (The e a r l y days of the great Chemainus m i l l * ) I r e l and, Moses, "Lumbering, 5 1 Western Lumberman and Contractor, v o l . 4 (Jur>e, 1907), p. 21. (A h i g h l y entertaining account of the founding of one of the province's f i r s t m i l l s and the marketing problems which caused i t s f a i l u r e . ) 203 I r e l a n d , W i l l a r d , "Captain Walter Colquhoun Grant," B r l t J ^ C o l u m b . i a. E l s t o r i c a 1 0 ua r t erly., v o l . 17 {January - A p r i l , 19~'3), pp. ""7-125. (Information on the early spar-producing m i l l at Sooke,) Lamb, W, Kaye, "Ear l y lumbering on Vancouver Island," B r i t i s h Columbia H i s t o r i c a l Quarterly., vo l . 2 (January, "19357, pp. 31-53; v o l . T T f i p r i l , 1938), • pp. 95-121, (An extremely valuable account of the industry on Vancouver Island before confederation,) L a n g l l l e , H. D., "Canadian lumber competition," American F o r e s t r y , vo l . 21 (February, 1915), pp. 130-139. "The lumbering industry i n the mountains," Lumberman and Contractor, v o l . 3 (October, 1906),~pT™^7 Maclnnes, T,, "Early days on Burrard I n l e t , " Western Lumberman, v o l . 23 (August 26, 1926), pp. 30V 36~T MacMillan, H. R., "The lumber s i t u a t i o n i n B r i t i s h Columbia," B r i t i s h CpliTOMa.LLumperma,n, v o l , 18 ^ (October, 1934), p, i T ~ ~ ^ Manning, E, C., "Administration of Crown Lands in B r i t i s h Columbia," Journal of,...Forestry, vol . y6 (1938), pp. 940-943. "Northern I n t e r i o r ; A l e v e l i n g o f f , " The truck logger, v o l , 7 (August, 1954), pp. 13-14, Orchard, C. D., "Forest Management," Island. .Events,, vol . 19 (May, 1955), passim. (A l o g i c a l and eloquent plea for a more r a t i o n a l f o r e s t r y urogram for B r i t i s h Columbia.) P a l a i s , I i . , and Roberts, E., "The h i s t o r y of the lumber Industry i n Humboldt County," P a c i f i c h i s t o r i c a l review, v o l . XIX (February, 1950), pp. 1-16, (The early establishment of the lumber trade of San Francisco.) 204 P o r t e r , W.,' "Leon TCoerner * s one-Kan giveaway program," lilijil e a n s , v o l . 69 (August 4, 1956), p. 34" and passim. "Regional report. Southern I n t e r i o r ; Can they l i c k the marketing problem?" The truck logger,, v o l . 7 ( A p r i l , 1954)5 pp. 39-40. Rickard, T. A., " G i l b e r t Malcolm Sproat," B. C. H i s t o r i c a l , Review, v o l , 1 (January, 1937), P P (A review of the Al b e r n i m i l l venture of the 1860's.) Saxon, Charles, "Timber Titans," Canadian Business, v o l . 20 ( A p r i l , 1947), pp. A2^^^927~^~ ( B r i e f sketches of "the mighty men who r u l e the woods today": H. R, MacMillan, Bruce F a r r i s , E. P. Taylor, H. J. Mackln, J . A. Humbird, Pr e n t i c e Bloedel and Leon Koerner.) Smith, John T,, "Logging i n B r i t i s h Columbia," F o r e s t r y , v o l . 22 (1948), pp. 100-108. Wright, Thomas G., " E f f e c t s of recent pulp and paper developments i n B r i t i s h Columbia on the f o r e s t , " The Fo r e s t r y Chronicle, v o l . 28, (December, 1952), "A t y p i c a l big timber logging operation," Western Lumberman, v o l . 19 .(March, 1922), p. AW. * (A study of the Bloedel, Stewart and Welch operation at Myrtle Point.) "Vancouver and O r i e n t a l trade," Western Lumberman, v o l . 26 (October, 1929)? p.30. "West Coast Giant," Saturday Night, v o l . 69 (February 18, 1956), p. 37. B r i t i s h Columbia. 1919-1920, Vancouver, B. C., Sun Publishing Company, 1920. Draycot, W. M. L., Lynn V a l l e y , A short h i s t o r y .of i t s resources, natural-beauty and development, North Vancouver, North Shore Press, Ltd., 1919« 205 Engelbert, Kenny, Ken and, Trees, Vancouver, Vancouver Features P u b l i c a t i o n s Ltd., (1945?) Keenleyside, Hugh L., The Place of the Forest i n ^k^^Ii§^MIL^22I}^^y^n^T^rs^^ °f B r i t i s h Columbia, 1950. Kna p p, Malcolm, Some, aspects o f, f ores t r y i n Br I t i s h Colombia^ U n i v e r s i t y of B r T t i i h "Columbia, 1.9407 Orchard, C. D., Forest Management, V i c t o r i a , Queen's P r i n t e r , 195T« Smith, Eustace, B r i t i s h Columbia Forests_;_, Rambling notes and general remarks, Vancouver, 3 . A. Roedde Ltd . , 1941. General h i s t o r i e s Bancroft, H. I i . , H i s t o r y of B r i t i s h Columbia, 1792-1887, San Francisco, Tne Hi s t o r y Company, 11887, Cox, I . , C h i l e since independence, Washington, George I%shington'Universoity Press, 1935. Dunbabin, T,, The making of A.us tra, 1 i a , London, A & C Black Ltd., 1922. Hedges, J . B., B u i l d i n g the Canadian West, Hew York, The Macmillan Company, 1939» (A standard account of the land boom on the P r a i r i e s between 1896 and 1910 and the c o l o n i z a t i o n p o l i c i e s of- the Canadian P a c i f i c Railway.) Morton, A. S„, Hi s t o r y of P r a i r i e Settlement, Toronto, The Macmillan Cfompany7~ T~93*B. Schultz, William J . , and Caine, H. R., F i n a n c i a l Development of the United States, lie?-/ York, P r e n t i c e - H a l l , Inc., 1937. Shann, S., Ec^noglc,..history, of A u s t r a l i a , Cambridge, U n i v e r s i t y Press, 1930," 206 Stevens, S. E., American expansion i n Hawaii (1842 - 1 8 9 8 ) , Harrisburg, Archives Publishing Company of Pennsylvania Inc., 1945. ( C h i l e , A u s t r a l i a , Hawaii, China and the P r a i r i e provinces constituted the chief markets f o r the e a r l y B r i t i s h Columbia industry.) 6. Works on discovery,, e x p l o r a t i o n , t r a v e l and d e s c r i p t i o n Brown, Robert, Countries of the World, 2 v o l s . London, Cassel P e t t e r , & Galpin, (1876?) (Robert Brown, the g e o l o g i s t , was an e a r l y s e t t l e r on Vancouver Island, many parts of which he explored and described i n d e t a i l i n various a r t i c l e s . In volume two of t h i s two-volume account of his l a r g e r t r a v e l s i s found a comprehensive d e s c r i p t i o n of the e a r l y logging industry on the lower mainland.) Mac f i e , Matthew, Vancouver Island, and B r i t i s h Columbia, London, Longman, Green, Longman, Roberts and Green, 1865. Meares, John, Voyages made,in the years 1/88 and 1789 from China to t h e H o r t h West Coast of America, London, Logographic Press, 1790, Roberts, Morley, The Western A vermis, London, S. C. Brown, Langham & Company, Ltd., 1904, Sproat, G. M., B r i t i s h Columbia. Information..for Emigrants, London, Clowes, 1873^ 7. B i o g r a p h i c a l dic_tionau2l^ Kerr, J. B., B i o g r a p h i c a l d i c t i o n a r y of w e l l Imown B r I t i s h Columblans, Vancouver, Kerr and Begg, TEW. " ' Who!s_Who:and why, 1917-1918, Toronto, I n t e r n a t i o n a l Press, 1918. Who's who i n America. Chicago, A. & II. Marquis Company, (various years) 207 F r i e s S p e c i a l studies Ahem, George P., Forest Bankruptcy i n America, Strasbourg, V i r g i n i a , Shenandoah Publishing-House, Inc., 1934. (The story of the rap i d d e p l e t i o n of the f o r e s t resources of America between 1800 and 1934, by a famous f o r e s t e r . F i r s t foreword i s w r i t t e n by G i f f o r d Pinchot, father of American f o r e s t r y . ) Brown, Felson C , The American lumber industry. Hew York, J . Wiley and Sons Inc., 1923. Coman, E. T., and Gibbs, H., Time, t i d e and timber, Stanford, Stanford U n i v e r s i t y Press, 1949. (The century-long story of the Pope and Talbot lumber empire on the American P a c i f i c Coast,) F i e l d , F. W., CjjpJrtaJ^inj^s , Monetary Times, Toronto, 1911. !S, R. F., EmrMa-e UkMim^,JM^l2£l-^JMMnm i n Wisconsin, 1830-1900, Madison, State H i s t o r l c a : Society of Wisconsin, 1951. Grainger, M. A., Woodsmen of the West. Toronto, Muss on Book Company, "TsoW, (The story of coast logging at the turn of the century a u t h o r i t a t i v e l y t o l d by a one-time Chief Forester of Bri 1 1sn Columb1a.) Holbrook, Stewart, Holy Old Mackinaw ~ A na t u r a l h i s t o r y of the American lumberjack. Hew .'York, The Macmillan Company, 1938. Murphey, Rhoads, Shanghai, key to modern China, Cambridge, Harvard U n i v e r s i t y Press, 1953* (A study of one of B r i t i s h Columbia's most important early markets,) The Hew West, Winnipeg, Canadian H i s t o r i c a l P u b lishing Company, 1888. (A laudatory but comprehensive review of the manufacturing and commercial i n t e r e s t s of the Western provinces i n the lSOO's.) onP, Hlscell.anepus_ JLteros B r i t i s h Columbia f o r e s t Products, Limited, Report, F i n a n c i a l Post Corporation Service, Toronto, 1955. I n t e r n . }^}>$£j*2S®8R?*m 3gB2E& > F i n a n c i a l Post Corporation Service, Toronto, 1952• 

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