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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 History  We a c c e p t t h i s t h e s i s as conforming t o the required standard  THE UNIVERSITY OF BRITISH COLTMBIa September, 1957-  The  h i s t o r y of t h e lumber t r a d e o f B r i t i s h  Columbia has been one of c o n s i d e r a b l e 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 t h e i n d u s t r y has had no c o n t r o l .  W i t h no l a r g e  permanent home market t o depend upon f o r s t a b i l i t y , i t has had t o a t t a i n a f l e x i b i l i t y which would a l l o w i t t o accommodate i t s e l f t o the ever-changing  complexity  of w o r l d markets, I n I t s p i o n e e r phase (1851-1886) the t r a d e c o u l d depend on o n l y s m a l l l o c a l markets i n V i c t o r i a , New Westminster and, -to some e x t e n t , San F r a n c i s c o .  With a  s c a r c i t y o f o p e r a t i n g 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 F r a n c i s c o b r o k e r s , t h e i n f a n t I n d u s t r y l o c a t e d on Vancouver I s l a n d , on B u r r a r d I n l e t and a t New Westminster struggled for s u r v i v a l .  D e s p i t e these handicaps,  certain  f a i r l y r e l i a b l e markets were g r a d u a l l y e s t a b l i s h e d I n the awakening P a c i f i c community  i n Australia, Chile,  the Sandwich I s l a 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 b e g i n n i n g of the lumber t r a d e i n B r i t i s h Columbia,  I t made p o s s i b l e 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 t r a d e w i t h the  P r a i r i e market, which was t o 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 t o the i n d u s t r y f o r the first  time.  The  completion  of the Panama C a n a l i n  marked the t h i r d phase of the h i s t o r y of the  1914  trade,  f o r i t opened to the i n d u s t r y the communities of A t l a n t i c , e s p e c i a l l y the seaboard of the U n i t e d and the important  U n i t e d Kingdom market,  cargo t r a d e rescued  This  the States new  the a i l i n g I n d u s t r y from the c o l l a p s e  of the P r a i r i e demand. The a f t e r 1940.  p a t t e r n of the lumber t r a d e changed a g a i n War-time s h i p p i n g 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 area l a r g e l y d i m i n i s h e d Kingdom market,  the importance of the  sterling  United  A s u s t a i n e d p e r i o d of p r o s p e r i t y i n  the U n i t e d S t a t e s , however, f a c i l i t a t e d a s h i f t of t r a d e l i n e s from the Old World t o the New. was  The  change  a c c e l e r a t e d and c o n s o l i d a t e d by the r i s e of g i a n t  American c e l l u l o s e c o r p o r a t i o n s which Invested  heavily  I n B r i t i s h Columbia f o r e s t lands and p r o d u c t i o n  plants  and I n t e g r a t e d them i n t o v a s t 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 p u l p - , lumber-, and  c e l l u l o s e - h u n g r y i n d u s t r i e s of the U n i t e d  States.  T h i s t h e s i s attempts to t r a c e these economic changes i n the l i g h t of changing h i s t o r i c a l c o n d i t i o n s and to d i s c o v e r 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  University  of B r i t i s h Columbia, I agree t h a t the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and agree t h a t p e r m i s s i o n f o r e x t e n s i v e f o r s c h o l a r l y purposes may  study.  I further  copying of t h i s  be granted by the Head o f  Department o r by h i s r e p r e s e n t a t i v e .  be a l l o w e d w i t h o u t my w r i t t e n  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  my  I t i s understood  t h a t c o p y i n g or p u b l i c a t i o n o f t h i s t h e s i s f o r g a i n s h a l l not  thesis  financial  permission.  ACKNOWLEDGMENT I s h o u l d l i k e t o express my a p p r e c i a t i o n f o r t h e a i d g i v e n me i n the p r e p a r a t i o n  o f t h i s t h e s i s by t h e  s t a f f o f the F o r e s t r y L i b r a r y and the  Microfilming  Department o f the U n i v e r s i t y of Washington, by M i s s Ann Smith and the s t a f f of the L i b r a r y of t h e U n i v e r s i t y o f B r i t i s h Columbia, Mr. W i l l a r d I r e l a n d and  t h e s t a f f o f the P r o v i n c i a l A r c h i v e s ,  V i c t o r i a , B.  the s t a f f o f the R e f e r e n c e Department o f the of the U n i v e r s i t y of C a l i f o r n i a  Library  a t Los Angeles, and  to the s t a f f o f the S c i e n c e and I n d u s t r y  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 t o Mr. Leon Koerner, whose generous f i n a n c i a l a s s i s t a n c e  made p o s s i b l e a  summer spent I n r e s e a r c h a t the above-mentioned Institutions.  TABLE OF CONTENTS  Foreword Chanter I  P i o n e e r Trade i n t h e P a c i f i c B a s i n (1778-1886) , . . .  Chapter I I  American Investment and the P r a i r i e Trade (1886-1914)  Chapter I I I  Panama C a n a l and the Cargo Trade (1915-1940) . . .  Chapter 17  The G i a n t Companies and the American Market (1940 - )  Chapter 1  Conclusion  Bibliography  . . . . . . . . . . . . .  T  FOREWORD The  h i s t o r y o f the lumber t r a d e of B r i t i s h  Columbia i s a s t o r y of s t r u g g l e a g a i n s t r e l a t i v e g e o g r a p h i c a l I s o l a t i o n , f a u l t y or inadequate  trans-  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. D e s p i t e these hazards; i n t h e 170 years between the v i s i t s of the e a r l y China t r a d e r s t o the Coast f o r spars and the present-day  shipment of v a s t cargoes of lumber,  a g r e a t I n d u s t r y 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 a n n u a l l y has been developed„ The rugged.  l a n d i n which t h i s s t o r y u n f o l d s i s v a s t and  The c h i e f t o p o g r a p h i c a l f e a t u r e of the Mainland  of B r i t i s h Columbia  I s a s e r i e s of more or l e 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 Rocky Mountain System.  The e a s t e r n boundary i s  Westward l i e s a g r e a t g l a c i a l  trough extending f o r e i g h t hundred m i l e s , known as the Rocky Mountain Trench.  1  S t i l l f u r t h e r westward a r e the  F o r a d e t a i l e d survey o f the p h y s i o g r a p h i c aspects of the f o r e s t s of B r i t i s h Columbia see: W h i t f o r d , K. N. and C r a i g , F. E.. F o r e s t s of B r i t i s h Columbia. Ottawa, 1913, pp. 31-48; M u l h o l l a n d , F, £>., Ike. F;or e s-t_Re s our c e s o f Br i 11 s h.. C plum M a » V i c t o r i a , B. C., 1937; and S l o a n , Gordon T'cG., The F o r e s t Resources o f B r i t i s h Columbia, 1945, 7ictorlaT^r^77~T9T57Tp. 015-020, to which t h i s Forev/ord Is l a r g e l y i n d e b t e d .  II  Selkirk, Monashee, Cariboo and Stikine Ranges.  West of  these mountain ranges i s a central plateau which, however, i s not a l l tableland but eroded and dissected p l a i n . Elevations on the plateau range from three thousand f i v e hundred to f i v e 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 s i x thousand to seven thousand feet and divide the Interior from the Coastal b e l t .  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 i s l i t t l e , i f any, coastal p l a i n  lying to the west of the Coast Range.  In the P a c i f i c  Ocean, o f f the Coast, l i e Vancouver Island and the Queen Charlotte group, whose mountains constitute the northward extension of the Coast Range of Oregon and Washington. Fronting on the P a c i f i c Ocean, the province encompasses eleven degrees of latitude between i t s north and south boundaries; the climatic attributes characteristic of i t s location, coupled with those d i s t i n c t i v e 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 r a i n 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  Ill  the eastern mountain systems. West of the Coast Mountains the r a i n f a l l ranges from forty inches i n the south to one hundred and forty inches i n the north. mild, even temperature  This moisture, coupled with a 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 f i f t e e n inches, while twenty-five to t h i r t y inches i s recorded i n the northern areas of the Interior.  This r e l a t i v e l y l i g h t p r e c i p i t a t i o n i n the  areas east of the Coast Range, i n combination with extremes of temperature, produces much l i g h t e r forest cover, varying from semi-arid types i n the valleys to more dense, but low-grade, forests on the higher elevations. The heavier p r e c i p i t a t i o n 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 r e a l i t y , the boundary-line separating two d i s t i n c t and separate forest areas generally described as the "Coast" and "Interior".  The forest-cover  of the Coast area, r e f l e c t i n g 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 s i l v e r or balsam fir5 and three lesser speciess white pine and spruce.  yellow cypress,  On the Southern Mainland Coast  and on the southern and eastern areas of Vancouver Island, Douglas-fir i s the dominant species up to elevations of about two thousand feet.  Beyond that elevation cedar,  hemlock and balsam become increasingly important i n 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 s i t e 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 i n the wetter valley areas with cedar-hemlock forests above on the higher slopes.  Above this, a hemlock-cedar-spruce  cover appears  i n association with some f i r , white pine and balsam. Spruce and lodgepole pine are predominant i n the higher altitudes ranging up to s i x thousand feet. Since the late 1920's, B r i t i s h Columbia has derived from this source at least half of Canada's  7  a n n u a l cut of timber, a l l but a stt-all p a r t of i t s s h i n g l e p r o d u c t i o n and more than t e n per cent c f i t s pulp  output,  T'uch of the l a r g e s t p a r t of the post-war expansion i n Canadian lumber p r o d u c t i o n has taken p l a c e In t h i s province.  I n few p a r t s of the world does f o r e s t wealth  c o n s t i t u t e the economic b a s i s t h a t I t does i n B r i t i s h Columbia. I f i t be assumed from the f o r e g o i n g t h a t the f o r e s t cover i s d i s t r i b u t e d over the g r e a t e r p a r t of the l a n d areas of the p r o v i n c e , t h a t assumption must be c o r r e c t e d l e s t the t r u e p i c t u r e be misunderstood., The l a n d area of the p r o v i n c e i s 234,403,000 acres of -.nhich 4 1 1 5 9 0 0 0 are i n the Coast d i s t r i c t and 193,244,000 3  ?  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  • g e o g r a p h i c a l expanse Is made up of water, muskeg, swamp, and l a n d Incapable of s u p p o r t i n g other than f o r e s t of or no commercial value.-*  The remaining  little  area i s covered  w i t h a f o r e s t which has c o n s t i t u t e d the backbone of the p r o v i n c e ' s economy f o r the l a s t s e v e n t y - f i v e y e a r s .  Between 1939 and 1952, the value of the f o r e s t products I n d u s t r y *of B r i t i s h Columbia rose from l e s s than $90,000,000 to some $500,000,000. I n the same p e r i o d exports of wood, wood products and paoer i n c r e a s e d from 085,000,000 to more than $320,000,000". The primary i n d u s t r y ( l o g g i n g ) and the secondary i n d u s t r y (wood and paper products) together now account f o r approximately f o r t y per cent of the net value c f p r o d u c t i o n i n the p r o v i n c e . ^ Orchard, C, D., Printer, 1955.  F o r e s t Management, V i c t o r i a , "Mieen's  MARKETS AND CAPITAL;  A HISTORY  OF THE LIMBER INDUSTRY OF BRITISH COLUMBIA,  (1773-1952).  CHAPTER I PIONEER TRADE I F THE PACIFIC BASIN (1773-1886) The h i s t o r y of the lumber i n d u s t r y of B r i t i s h Columbia begins I n the days when the S p a n i a r d s , names so l i b e r a l l y dot our coast l i n e , were  whose  still  e x p l o r i n g the bays and i n l e t s of the N o r t h 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 t r e e s g r e a t l Impressed C a p t a i n 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. •t'  le  When he r e p a i r e d h i s two s h i p s ,  R e s o l u t i o n and D i s c o v e r y  i n Nootka Sound i n March,  I7785 he became the f i r s t w h i t e man t o make use of the 1 timber o f the p r o v i n c e . I t was the need f o r s h i p s w i t h which t o e x p l o i t the f u r t r a d e w i t h China t h a t l e d t o the f i r s t v a r i e d lumbering o p e r a t i o n s by w h i t e men i n the p r o v i n c e * I n I788 John Meares, a B r i t i s h c a p t a i n o p e r a t i n g out of China, a r r i v e d a t Nootka I n the s h i p , F e l i c e . I n her h o l d was stowed the frame f o r a s h i p and the t o o l s t o convert the b i g f i r s and cedars of Vancouver I s l a n d i n t o masts, spars, p l a n k i n g , decking and superstructure.  The s h i p 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 l o g g e r s , whipsawyers, 1  .Lamb, W. Eaye, " E a r l y Lumbering on Vancouver I s l a n d , " P a r t I . t 1844-1855? The B r i t i s h _ C o l u m b I & H i s t o r i c a l Q u a r t e r l y , 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 P a c i f i c wilderness and the forerunners of that Chinese labor force which was to figure so prominently i n B r i t i s h Columbia i n 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 their voyage.  schooner before continuing  Three years l a t e r , on September 21, 1791,  he returned to Clayoquot Sound, just south of Nootka, i n the 220-ton Columbia Redlvivia and there, l i k e 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 i n search of furs, they were not oblivious to the commercial p o s s i b i l i t i e s of the vast forests which extended down to tidewater of the thousands of miles of P a c i f i c 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 , c a r p e n t e r s s h a l l be employed i n c u t t i n g down spars and sawing p l a n k s , p a r t i c u l a r l y boat's knees and t i m b e r s , -- 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 b e h a l f of h i s employers, who i n 1787 Informed him t h a t spars of every denomination were c o n s t a n t l y i n demand i n the Chinese market and ordered him t o procure as many as he c o u l d stow,^  conveniently  other f u r t r a d e r s d o u b t l e s s d i d l i k e w i s e .  I t Is  not p o s s i b l e t o estimate the volume of these e a r l y shipments, a l t h o u g h the t o t a l c o u l d not have been very g r e a t ;  certainly  t h e r e was n o t h i n g l i k e a timber trade f o r i t s own sake. There f o l l o w e d a h i a t u s of f o u r o r f i v e decades d u r i n g which there o c c u r r e d 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 t h e l i t t l e c u t t i n g I n the saw-pits of t h e Hudson's Bay Company outpost a t F o r t Langley.  There company workmen c u t the rough lumber which  was used i n the e r e c t i o n of houses and s t o r e 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 t r a d e w i t h 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 I n 1843 and the t r a n s f e r t h e r e t o of  Meares, John, Voyages Made ±n^tMJ[m£Sj^2M~32& 1789 from China t o the North ^est_CoMl^LAiml^^ London, 1790, Appendix 2. 2  4  much of the business f o r m e r l y 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 continuous  I n d u s t r y on Vancouver I s l a n d .  of a The l a r g e  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 pit  and one above, r i p p e d I n t o rough p l a n k s the l o g  which s t r a d d l e d i t .  I n 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 d i s u s e when the company e s t a b l i s h e d the f i r s t machine-operated s a w m i l l on the I s l a n d a t M i l l 4  Stream, j u s t above Parson's B r i d g e . I n 1848 a m i l l w r i g h t named F e n t o n was brought from England; t o b u i l d t h i s m i l l , b u t b e f o r e 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 j o i n e d the army of g o l d seekers  f l o c k i n g into that area.  Another m i l l w r i g h t , named Parsons,  a r r i v e d t o r e p l a c e him,  b r i n g i n g w i t h him the machinery f o r a g r i s t m i l l , which was added t o 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 c u t a c o n s i d e r a b l e number of d e a l s which were exported t o San F r a n c i s c o , where they brought $80 per thousand f e e t i n g o l d dust.  A f t e r some months of o p e r a t i o n an i r r e p l a c e -  a b l e p a r t of the machinery broke, and f o r c e d the m i l l t o close.  S h o r t l y t h e r e a f t e r i t was found t h a t the f l o w of  water i n M i l l Stream was o n l y s u f f i c i e n t t o r u n 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 s i t e could not be found near V i c t o r i a  and i t was decided to build the new m i l l at Craigflower bridge.  The planing m i l l and g r i s t m i l l were accordingly-  erected there i n 1853  and the old lumber m i l l at M i l l  Stream was repaired and operated whenever water conditions were favorable. In 1851  a second m i l l , 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  i s 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 r e a d i l y available and cheap.  Neither of these conditions prevailed i n Fort  Victoria.  The projeet was completely abandoned i n 1856.5  In the meantime another sawmill had been ereeted by the colony's f i r s t independent s e t t l e r , Captain Walter  5 Copeland, Henry C , "Some h i s t o r i c a l highlights on the B r i t i s h Columbia timber industry," Western Lumberman, v o l . 19, (August, 1922), p. 32.  Colquhoun Grant, who along with a number of servants established himself a t Sooke on the southwest t i p of Vancouver Island i n 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, l o s t them to the gold f i e l d s of C a l i f o r n i a . ^ Despairing of his f a i l i n g fortunes, Grant himself quit the colony to t r y his luck i n C a l i f o r n i a , only to return emptyhanded to dispose of his property.  Once again there  i s 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 i n the timber and spar trade$, they seem to have made no immediate e f f o r t 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 p i l e s , a l l of which could be produced by hand.7  The Muirs sent a f a 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 s e t t l e r see: Ireland, Willard, "Captain Walter Colquhoun Grant," B r i t i s h Columbia H i s t o r i c a l Quarterly, v o l . 17, (Jan. - Apr., 1953), pp. 87-125. Lamb, W. Kaye, op_. c i t . , Pt. I I . 1885-1866, The B r i t i s h Columbia H i s t o r i c a l Quarterly, v o l . 2, (April, 7  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 B a l t i c forest lands.® San Francisco was  the chief export market f o r the  sawmills of Sooke and the island.  Eighteen of the nine-  teen vessels which sailed with timber products from Sooke and "Victoria In 1853 was  were bound t h i t h e r S a n Francisco  s u f f i c i e n t l y near and i t s market was  sufficiently  active to make small shipments by small vessels possible and  profitable. The only other producing m i l l operating on Vancouver  Island i n this period was a small establishment on Salt Spring River, about s i x hundred yards from Hanaimo Fort. It was erected i n A p r i l , 1854,  and probably produced only  enough to s a t i s f y the l i g h t demand of the Fort i t s e l f . The discovery of gold on the Fraser River i n brought a wave of prosperity to Vancouver Island.  1 0  1858  Twenty-  three thousand gold-seekers l e f t San Francisco by boat and more than eight thousand by land for the new f i e l d s of B r i t i s h Columbia.  11  I t was  gold-  this "rush"  ® "Vancouver Island Timber," Victoria B r i t i s h Colonist. (Feb. 19, 1861), p. 2. 9 Lamb, W. Kaye, p_p_. c i t . , Pt. I I , p. 1 0  Copeland, op., c i t . , p.  116.  32.  Bancroft, H. H., History of B r i t i s h Columbia. 1792-1887. San Francisco, The History Company, lb«7, p. 1 1  8 that f i r s t drew the attention of the world to B r i t i s h Columbia and i t s vast natural resources.  V i c t o r i a , the  c a p i t a l 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 s i x thousand, not including the large number of miners who wintered t h e r e .  12  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 V i c t o r i a from San Francisco by sea i n 1858 13 William P. Sayward, a lumberman from Maine.  was Like his  compatriots he came seeking his fortune, but unlike them, he intended to find i t i n the forest wealth of the North P a c i f i c of which he had heard so much.  One glance at the  tent c i t y of newly arrived miners convinced Sayward that V i c t o r i a i t s e l f constituted as good a market for lumber as he was  l i k e l y to f i n d .  He immediately established a  water-power sawmill at M i l l Bay on Saanich I n l e t .  During  the years which followed he consistently produced from the Bancroft, H. I., History of B r i t i s h Columbia, 1792-1887, San Francisco, The History Company, 1887, T>» 70o< 1 2  *3 For a detailed biography of Sayward, see: B r i t i s h Columbia Magazine, Vol. 10-11, (May, 1914), p.  24?.  9 p l e n t i f u l supply of logs on Saanich Inlet, Chemainus River and Oyster Bay a d a i l y  average of f i f t e e n to  twenty thousand feet of finished and semi-finished lumber. That production figure was eminently profitable f o r i t s day, especially i n view of the high price the product commanded on the V i c t o r i a 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 i n 1862,^ when finished lumber from Puget Sound m i l l s sold at t h i r t y d o l l a r s . ^ 1  Sayward's m i l l  was the f i r s t permanent venture i n exploiting the forests of the colony and province. For f i f t e e n years i t continued to produce for the V i c t o r i a market from i t s Saanich s i t e . In 18?3) the pioneer lumberman found i t expedient to move closer to the c i t y and accordingly located i n Rock Bay where he produced t h i r t y thousand feet d a i l y 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 m i l l b u i l t on the banks of the Fraser at present-day New Westminster by  San Franciseo Daily Evening B u l l e t i n , July 15> 1858, p. 2. 1  4  ^  Colonist, Aug. 2, 1862, p. 3.  Coraan, E. T. and Gibbs, H., Time. Tide and Timber, Stanford, Stanford University Press, 194-9, p. 68. 1 6  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; Fleming and Co.;  at Fort Yale by Land,  at L i l l o o e t i n 1862  by Cadwaller &  Co.j -^ at Barkerville by DetheniellMason, ^ the Maine 3  2  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. I t i s doubtful that these m i l l s 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 i n the area where they dropped their picks.  That choice  involved no cost and no transportation problem; others r e l i e d on tents to shield them from the elements.  Probably  the larger part of the output of these mills went to From a compilation i n MS Folder 901-1, Provincial Archives, V i c t o r i a , B. C. 1 7  ^  Lo£_...cit.  19 Kerr, oju c i t . , p. 2 0  120.  Kerr, op., c i t . , p. 24-0.  From a compilation i n MS Folder 901-1, Provincial Archives, V i c t o r i a , B. C. 2 1  2 2  2  Colonist. June 11, 1866,  3 Kerr, op. c i t . , p.  182.  p. 3.  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 i n answer to the demand of several h i s t o r i c changes occurring f a r distant from the isolated colonies of Vancouver Island and B r i t i s h Columbia — Hawaii, Chile and China.  i n Australia,  These were the countries which  would constitute the chief markets for B r i t i s h Columbia lumber between 1865 Vancouver i n 1886,  and the coming of the r a i l r o a d to and the names of their great commercial  centres, Sydney, Melbourne,  ~ Adelaide, Honolulu,  Valparaiso, and Shanghai were to become as commonplace i n 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 s o c i a l 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 a g r i c u l t u r a l industry had been assured an ever-increasing market for i t s goods i n the growing c i t i e s of Melbourne and  Adelaide.  12  In i860 the population of the continent was 5  1,145,585 of whom 538,234 l i v e d i n V i c t o r i a and 348,546 i n Hew South Wales.  During the next ten years the 24  population grew to 1,647,756.  This population growth  meant a large building program i n the c i t i e s and lumber was i n great demand.  In the e a r l i e s t 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 B r i t i s h Navy yards.  But by i860  her supplies, never r e a l l y large, were greatly depleted and she began to import sizeable quantities from the B a l t i c nations, the Puget Sound area and, after  1865,  ever larger quantities from B r i t i s h Columbia. The r i s e of Hawaii as an important sugar producer was the second factor i n the growth of B r i t i s h Columbia's early off-shore lumber trade.  Hawaii (the Sandwich  Islands) had occupied a small place i n the trade economy of B r i t i s h Columbia since the e a r l i e s t days when the Hudson's Bay Company shipped salted Fraser River salmon from Fort Langley i n return for sugar and molasses5 but the volume of trade was meagre compared with that Shann, E., Economic history of Australia, University P r e s s , Cambridge, 1930, p. 260. 2  4  5 Dunbabin, T., The making of Australia. London, A. & C. Black Ltd., 1922, p. 70. 2  13  which grew up a f t e r i 8 6 0 .  Between i 8 6 0 and 1864 the  p r o d u c t i o n of sugar i n the I s l a n d s  mounted r a p i d l y  I,444,271 pounds to 10,414,441 pounds w i t h an  from  accompanying  growth of I t s b y - p r o d u c t s , and by i860 I t had almost doubled a g a i n .  Sugar's domination of the I s l a n d economy  was i l l u s t r a t e d by the f a c t t h a t I n 1871  i t represented  a- v a l u e of $1,250,000 out of t o t a l exports of $ 1 , 6 5 0 , 0 0 0 .  21  The expanding sugar t r a d e of the I s l a n d s meant an unprecedented b u i l d i n g boom i n H o n o l u l u ,  F o r the next  twenty years scores of s h i p s loaded w i t h B r i t i s h Columbia f i r c l e a r e d B u r r a r d I n l e t and Hew Westminster, bound f o r Honolulu.  I n r e t u r n . 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 , s u p p l i e d the commercial needs of not o n l y the p o p u l a t i o n of B r i t i s h Columbia and Vancouver I s l a n d but a l s o those of some of the t h r i v i n g camps of the Puget Sound a r e a . 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 B a s i n as a market f o r lumber was the R e p u b l i c of C h i l e * The s t a b l e c o n d i t i o n s which Manuel Montt, the d i c t a t o r , brought about i n 1850  ushered i n a p e r i o d of unprecedented  growth I n t h a t South American r e p u b l i c , and a l t h o u g h 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  Stevens, S. K., American expansion i n Hawaii., (1842-1898), H a r r i s b u r g , A r c h i v e s P u b l i s h i n g Company of P e n n s y l v a n i a , I n c . , 1945, P« 86. 2 6  14 works construction continued throughout the era of the L i b e r a l 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 c i t y suffered great damage  at the hands of the Spanish navy i n 1866 and from earthquake i n 1873•  Its reconstruction after each disaster  drew heavily upon the infant lumber industry of the North P a c i f i c Coast and of Burrard Inlet i n particular. China, the l a s t important market i n the r i s e of B r i t i s h 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 f o r almost any construction material.  With the  largest trade hinterland i n the world from which to draw sustenance, Shanghai grew from a c i t y of 250,000 i n i860 to 1,000,000 i n I89O.28  B r i t i s h Columbia lumber played  no small part i n housing t h i s enormous increase i n population.  The trade relations which B r i t i s h Columbia  lumbermen established with Chinese lumber merchants remained more or less secure u n t i l the Japanese occupation  ? Cox, I., Chile since Independence. Washington, George Washington University Press, 1935? P« 323. 2  Murphey, Rhoads, Shanghai, kev to modern China, Cambridge, Harvard University Press, 1953» P* 22. 2  8  15 which "began i n 1931?  g r a d u a l l y d i s r u p t e d them*  Concurrent w i t h 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 o b t a i n e d a l a r g e p a r t o f her normal r e q u i r e ments i n timber from the p i t c h p i n e f o r e s t s of the Lower M i s s i s s i p p i r e g i o n . W i t h 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 f e a r e d t h a t t h e i r Southern sources' o f s u p p l y would be c u t o f f . They a c c o r d i n g l y 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 a n x i e t y even i n v e s t i g a t e d the f e a s i b i l i t y o f h a u l i n g a t l e a s t l a r g e r s i z e s over the thousands  o f m i l e s 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 t o England, but on the whole the P a c i f i c Northwest product c o u l d not compete i n t h e A t l a n t i c markets w i t h the producing areas of E a s t e r n Canada, the B a l t i c , and the American Southwest a f t e r t h e c e s s a t i o n of hostilities  0  The r i s e of these s c a t t e r e d markets combined t o make l a r g e demands f o r timber- products which the Puget Sound m i l l s alone were not a b l e t o s a t i s f y .  For the  f i r s t time lumbermen began t o g i v e c a r e f u l a t t e n t i o n t o the untouched Alberni Canal.  timber t r a c t s of B u r r a r d I n l e t and the  The f i r s t "attempt to export lumber t o one of these new P a c i f i c B a s i n markets o c c u r r e d i n New Westminster. town was  The  l i t t l e more than s e v e r a l score cabins between many  stumps when S e w e l l P r e s c o t t Moody, Moses I r e l a n d , and James 7an Bramer In. 1862  e r e c t e d a m i l l there on the p r o f i t s  they had made I n g o l d 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 u n d e r t a k i n g ; nothing Is known of Van Bramer's background. T h e i r p l a n was  to produce r e t u r n cargoes f o r s h i p s  b r i n g i n g s u p p l i e s to the Mainland s e v e r a l 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 . beginning t h e i r m i l l was Its  faulty location.  s e t t l e r s and to the  From the -very  f a t e d to f a i l u r e because of  The f i r s t s h i p to l o a d a t the  m i l l f a i l e d to c l 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.  A f t e r that  m i s f o r t u n e , no other s h i p s would venture near the pioneer m i l l and i t was  f o r c e d to c l o s e down.  Nevertheless,  Moody and h i s a s s o c i a t e s r e t a i n e d t h e i r f a i t h In the p r o f i t - m a k i n g p o s s i b i l i t i e s of the business and  awaited  a f a v o r a b l e o p p o r t u n i t y of r e - e n t e r i n g i t . ^ jj- came a 2  year l a t e r i n the f a i l u r e of B u r r a r d I n l e t ' s  first  I r e l a n d , Moses, "Lumbering," Western Lumberman and Contract_pr, v o l . 4, (June, 1907;, p. 21. d y  17 establishment —  the Pioneer M i l l s .  This forerunner of the giant Burrard Inlet industry was established i n 1863 by Thomas Graham and P h i l i p Hicks,  and was known formally as the Pioneer  M i l l s of the T. W. Graham Co. of New Zealand and Westminster.  New  I t 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 p l e n t i f u l supply  of logs from a 480 - acre pre-emption allowed the m i l l to turn out f o r t y thousand feet of lumber d a i l y . market for this output was e n t i r e l y domestic:  The  New  Westminster, V i c t o r i a and smaller coastal points on Vancouver Island. Despite cheap power and cheap logs the Pioneer M i l l s found i t could not compete i n the V i c t o r i a market with Sayward's l o c a l product nor even with that of their Puget Sound r i 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 C a l i f o r n i a . There, i n San Diego, Burrard Inlet's f i r s t businessman died i n 1898.  31  30 B r i t i s h Columbia Lumberman, v o l . 36,  1952), pp. 68-69.  (February,  31 West Coast and Pueet Sound Lumberman, v o l . 10, (March, 1899), p. 261.  18 Graham's m i l l was sold by public auction to John Oscar Smith, a New Westminster butcher whose l a s t b i d of eight thousand dollars won out against that of Moody, the only other contender.  Re-named Burrard Inlet M i l l s , the  plant cut steadily into the next year, making i t s only export shipment i n November, 1864,  when the barque  E l l e n Lewis loaded 277,500 board feet of lumber and sixteen thousand pickets for a h i s t o r i c shipment to Adelaide, A u s t r a l i a .  3 2  But the d i f f i c u l t i e s involved i n  overseas marketing proved too much for the capital-poor early entrepreneur, and the m i l l 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 i n that f i r s t year, the Glimpse and the Envoy and attempted to do successfully what Smith had f a i l e d to accomplish:  to supply an  undeniable market on a very limited amount of c a p i t a l . He despatched the two ships to the Australian colonies " 34  and proceeded to load the Metropolis and the Kent for Valparaiso.  The Glimpse and the Envoy arrived i n  Australia to f i n d the market temporarily gluttedj and their captains had to dispose of their cargoes as best they could.  3 2  Moody and his associates received only  B r i t i s h Columbia Lumberman, v o l . 36,  1952), pp. 68-69. 3 3  Colonist, August 27, 1864,  (February,  p. 3.  "Moodyville," Vancouver News and Dally Advertiser, A p r i l 2, 1887, p. 1. 3 4  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 m i l l proprietor to undertake.  The lack of trading f a c i l i t i e s spelled r u i n  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, i n 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 i n a Puget Sound lumber port.  The  magnificent spar timber v i s i b l e on every side excited his admiration, and upon his return i n the autumn of that year to England, he brought this fact to the attention of his employers.  The following year- he r e t i r e d from  35 Ireland, Moses, op_. c i t . , p. 21. 3 6  JM*«it.  cLKJ  the sea t o r e s i d e " ' i n V i c t o r i a * H i t a the outbreak of the C i v i l War  i n i860,  Anderson and Company grew anxious about the p o s s i b l e b l o c k a d i n g of t h e i r source of supply i n the American Southwest and turned w i t h renewed I n t e r e s t to C a p t a i n Stamp's r e v e l a t i o n s concerning the f i n e spar s u p p l y of Vancouver I s l a n d * In the s p r i n g of i860 Stamp was  once a g a i n In the  employ of Anderson and Company, t h i s time w i t h orders to e x p l o i t the f o r e s t r e s o u r c e s of the A l b e r n i a r e a . f i r s t time t h e r e was  F o r tl  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 a l l o w  a l o c a l m i l l t o 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 b r o k e r s c o n s t i t u t e !  an a d d i t i o n a l safeguard of the success of the u n d e r t a k i n g . In the s p r i n g of i 8 6 0 , Stamp purchased  the  schooner  R e p o r t e r , re-named her Meg M e r r l l i e s , and w i t h two famous e a r l y timber c r u i s e r s , Jeremiah Rogers and John W a l t e r , set  o f f t o e x p l o r e what was  d e s t i n e d t o become one of the  country's g r e a t e s t lumbering centres*-"'  I t is inter-  e s t i n g t o note t h a t the two c r u i s e r s r e t u r n e d 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 c a n a l w i t h c o n f l i c t i n g of  the area's timber p o s s i b i l i t i e s :  accounts  Walton's account  was  very i n d i f f e r e n t w h i l e Roger's was most f a v o r a b l e .  37 a a eta Tied account of Stamp's venture can be forawl In Dixon, L. B r , "The b i r t h of the lumber i n d u s t r y i n B r i t i s a Columbia", F o r e s t and M i l l , (May, 1957), p. c.  21 Luckily Captain Stamp chose to accept the l a t t e r s  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 i n the autumn to erect the m i 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 m i l l s i t e and moved o f f only after he ordered the two guns of the Meg Merrilies loaded and the schooner hauled broadside to the beach. followed s u i t .  The Woodpecker  Faced with the destruction of their houses,  the Indians withdrew. ® 3  Enjoying almost unlimited capital and able to r e l y upon commercial connections of one of the empire's best established timber brokers, the Alberni m i l l quickly established a considerable place for i t s e l f i n Northwest  ® A c o l o r f u l account of this i n i t i a l cruise i s given i n Western Canada Lumberman, v o l . 5, (April, 1908), p. 17. 3  22 In 1862,  lumber c i r c l e s .  for example, i t produced  $119,917 worth of rough and dressed lumber and i n the fallowing year i t shipped over a m i l l i o n feet of lumber 39 to the V i c t o r i a market alone. Although their London headquarters  secured them  orders from the French, Spanish, and Sardinian government dockyards, the Alberni m i l l s depended largely upon overseas 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 i n a l l i t s operations© The f i r s t indication of trouble at the m i l l 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's " letters to the Colonial Secretary i n 4  1  V i c t o r i a show that even at the time he took over management he was very concerned about the future.  On November 1,  39 Macfie, Matthew, Vancouver Island and B r i t i s h Columbia. London, Longman, Green, Longman, Roberts, & Green, 1865, p. 135. J  40  Brown, Robert, "Lumbering on the North P a c i f i c Coast," i n Countries of the World. (2 vols.), London, Cassel, Petter & Galpin, (1876?), v o l . 1, p. 262. For details of Sproat's endeavors i n the lumber trade, see: Rickard, T. E., "Gilbert Malcolm Sproat," B r i t i s h Columbia H i s t o r i c a l Review, v o l . 1, (January, 1937), 4 1  pp. 21-32.  23 1864, he wrote a l e t t e r 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 i s no wood i n the d i s t r i c t to supply the wants of a large m i l l , 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 p r o f i t , and with the certainty of having to abandon the place at an early date, after having l o s t £50,000. He adds, The m i 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 m i l l , 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 i n a country so t o t a l l y unsuitable for large sawmills as this Island." " 4  3  Following the end of the American C i v i l war i n 1865,  the bulk of the B r i t i s h 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 s t a n d s t i l l . of 1869,  In the spring  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  Sproat to Colonial Secretary (November 1, 1864), Provincial Archives, V i c t o r i a . 4 2  43 roc-..cit.  24 $4,500 and was removed to their Puget Sound m i l l s i t e , 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 m i l l , v i s i t e d Burrard Inlet, where he found the i d e a l location for a shipping trade i n lumber. He o r i g i n a l l y intended to establish his m i l l on the bight i n 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. advantageous i n two wayss  The change of location was  i t saved Stanley Park from  becoming a settled area and i t f i n a l l y located the m i l l i n the midst of fine timbers which for twenty years or more remained available i n i t s v i c i n i t y . The changed decision, however, i n 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 s i t e now known as Lumberman's Arch, and there 1B a l l probability produced spars.  Furthermore, Stamp enjoyed other business  connections mad:e i n a lifetime spent i n the international lumber trade and on these he could readily draw. began to pour i n —  Orders  more orders than his m i l l could  conveniently handle. Stamp's new m i l l was a f i n a n c i a l l y 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. interest.  The smaller part was Stamp's  During the f i r s t f i v e weeks of production,  the company cut around 700,000 feet of lumber for the Australian colonies.  And i n the years which followed,  the m i l l 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 i d l e m i l l to f i l l the surplus orders that his own company could not handle. M i l l made #40,000 — of that e r a .  In f i v e months the Moodyville  a f a i r l y large p r o f i t by the standards;  4 6  Moody soon found the capacity of his m i l l inadequate to supply the growing demand on i t for lumber from the 47 s t i r r i n g settlements of the P a c i f i c Basin. needed to expand i t .  Now  Capital was  that the success of the pioneer  Flynn, J . E., Early lumbering on Burrard Inlet, 1862-1891, graduating essay, U.B.C., 1942. 4  4  5 For a complete account of the Hasting's M i l l , see: Mitchell, Harris, "Old Granville saw b i r t h of B r i t i s h Columbia's most famous m i l l , " Forest and Stream, v o l . 3, )February 15, 1949), pp. 2-3. 4  Ireland, Moses, l o c . c i t . See: "Moodyville," Vancouver News and Daily Advertiser, A p r i l 2, 1887, p. 1. 4 7  26 industry seemed assured, there was no end of c a p i t a l offered him.  Andrew Welch, his agent i n San Francisco  became a partner i n the business and made $100,000 Aft  available to his erstwhile c l i e n t . 49 partnership were Hugh Nelson,  later  Others taken into Lieutenant-Governor  of the Province, and William Dietz, a prominent l o c a l business man who  had profited handsomely from the gold rush.  With new c a p i t a l , 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' foreman, the venture prospered. Christmas, 1873,  as  Unfortunately, about  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 i n 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  See. "Moodyville," Vancouver News and Daily Advertiser. A p r i l 2, I887, p. 1. The name of Andrew Welch figures prominently i n the history of the B r i t i s h Columbia's early basic industries. Welch was one of the f i r s t c a p i t a l i s t s to recognize the p o t e n t i a l i t i e s of B r i t i s h Columbia's salmon canning industry and through Welch, Rithet & Co. of V i c t o r i a , went far to control i t 4 8  0  4  ^ Kerr, op_. c i t . , p.  5 0  Ibid., p.  182.  265.  2? a v e r y c o n s i d e r a b l e volume of f o r e s t p r o d u c t s .  I n that  year they sent t o the U n i t e d Kingdom 190,803 f e e t of rough lumber and 780 s p a r s ; t o New South Wales 356,517 f e e t of rough lumber, 24,307 p i c k e t s and 88,000 l a t h s ; t o V i c t o r i a ( A u s t r a l i a ) 1,605,040 f e e t of rough lumber and 15 s p a r s ; to China 1,507 > 537 f e e t 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 s o a r s ; to C h i l e 266,458 f e e t of rough lumber; to Mexico 377,489 f e e t of rough lumber, 65?941 f e e t of dressed lumber; t o the Sandwich I s l a n d s 973,000 f e e t of rough lumber, 127,000 f e e t of dressed lumber, 635?000 s h i n g l e s , 420 bundles of shooks; t o P e r u 2,150,222 f e e t of rough lumber and 1,116,327 f e e t of dressed lumber; and t o 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 w i t h 50,000 s h i n g l e s . 5 1 The v i g o r of Moody's salesmanship played a most important p a r t I n d e v e l o p i n g t h i s export lumber trade from B u r r a r d I n l e t , which f o r twenty years a f t e r 1865 remained the o n l y important e x p o r t i n g centre i n B r i t i s h Columbia, Ne was an e n e r g e t i c b u s i n e s s l e a d e r who t r a v e l l e d c o n s t a n t l y to the v a r i o u s markets, seeking to expand and promote the s a l e s of h i s company.  I t was w h i l e on such a t r i p t o ran  F r a n c i s c o t o arrange s h i n c h a r t e r s t h a t he met h i s deaths  The v e s s e l - on which he was t r a v e l l i n g , the 3. 3,  Langevin, H. L., B r i t i s h Columbia. R s o o r t 01 one Eon. 11. L. Langevln, Ottawa, 1872, Appendix Y, p. 150. y  28  Pacific,  foundered o f f Cape F l a t t e r y and Moody f e l l  overboard t o h i s death.'' Hugh Nelson became manager of the. f i r m , a p o s i t i o n he h e l d u n t i l he was a p p o i n t e d • s e n a t o r i n 1 8 8 2 , O n January 1,  1879? the f i r m of Moody, D I e t z and  became the M o o d y v i l l e S a w m i l l Company.  Nelson  Ownership of the  new f i r m a t t h a t time I n c l u d e d Hugh N e l s o n , 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. T y r w h i t t - D r a k e , P e t e r McQuade and C a p t a i n John I r v i n g .  Under t h i s management the m i l l  con-  t i n u e d t o prosper f o r when i t was  s o l d t o the M o o d y v i l l e  Land and S a w m i l l Company i n 1891,  I t commanded no l e s s  than $ 1 , 0 0 0 , 0 0 0 .  The new  owners were the S a r i of  C h e s t e r f i e l d , the B a r ! of Durham, C o l o n e l A, H. Lonsdale, the Hon,  O l i v e r Montagu, and a Mr. Edmund Evan-Thomas.  I n c l u d e d I n the purchase p r i c e were 1,786  acres surrounding  the m i l l w i t h I t s v a l u a b l e w a t e r f r o n t f r o n t a g e of t h r e e m i l e s , 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 s e v e r a l a d d i t i o n a l years b e f o r e the s u p p l y of l o g s I n the Immediate v i c i n i t y d i s a p p e a r e d , but. the absentee owners had timed t h e i r purchase b a d l y .  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. ^ F l y n n , James E., E a r l y lumbering on B u r r a r d I n l e t , 1862-1891, g r a d u a t i n g essay, U.B.C., A p r i l , 1942, p. 13. y  54 ( J u l y 7,  The B r i t i s h Columbia Commercial J o u r n a l , v o l . 1, 1891), p. 10.  g e n e r a l d e p r e s s i o n and t h i s combined w i t h u n i m a g i n a t i v e management f o r c e d t h e c l o s u r e of the p i o n e e r m i l l in. 1901, The  initial  success of Welch s Investment 1  i n the  W o o d y v i l l e m i l l encouraged o t h e r San F r a n c i s c o c a p i t a l i s t s to  investigate the Burrard I n l e t industry,  I n 1868, when  C a p t a i n Stamp once a g a i n f e l l a f o u l o f h i s London f i n a n c i a l b a c k e r s , t h e San F r a n c i s c o f i r m of D i c k s o n , DeWolf and Company55 s e i z e d the o p p o r t u n i t y of g a i n i n g c o n t r o l of h i s business.  They changed t h e name of t h e f i r m t o H a s t i n g ' s  S a w m i l l Company and r e t a i n e d C a p t a i n Raymur, one of Stamp's employees, as manager. When t h e Canadian P a c i f i c r a i l r o a d was extended to Vancouver i n 1886, t h e business was purchased by a Canadian s y n d i c a t e headed by John Hendry. .at  The p r o p e r t y  the time extended from C a r r a l l s t r e e t t o F a l s e Creek,  at  t h e head of which the company owned twelve hundred acres  of  l a n d , a l l covered w i t h timber.  The H a s t i n g s Sawmill.  Company, L i m i t e d , o b t a i n e d the m i l l s i t e west of the r a i l r o a t r a c k s and a l l the timber and l o g g i n g camps. The y e a r - t o - y e a r success of these two largee n t e r p r i s e s 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 s m a l l e r lumbermen eager t o e x p l o i t the f o r e s t s  of  the a r e a .  I n the f a l l of 1877, f o u r DeBeck b r o t h e r s ,  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 m i l l , which  carried on business for some years under the name of DeBeckBros,, was representative of the second-line m i l l s of the period.  Installed i n one t y p i c a l pioneer saw-mill  building, the plant comprised one large circular saw, edger and a trimmer,  h twenty-five - hp.,  an  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 M i l l s , 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 s u f f i c i e n t accomodation for any vessel that could enter the Fraser.  The company operated two logging camps, one  on the P i t t River and one on the L i l l o o e t , a tributary of  56 Resources of B r i t i s h Columbia, v o l . 1, 1883), p. 31.  (December 1,  57 P a c i f i c Coast Lumberman, v o l . 5» (September, 1921), 5^ For a detailed description of this m i l l see: The Resources of B r i t i s h Columbia, v o l . 1, (December 1883), p. 30.  o-i-  the P i t t .  The  f o r c e employed i n the camps was  about t w e n t y - s i x men  generally  and twelve yoke of oxen; and In the  m i l l , from f i f t y t o 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 c o m p e t i t i o n of the Dominion Saw M i l l made the undertaking The  considerably less  rewarding.  y  f i n a n c i a l hazards i n v o l v e d 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 a l r e a d y been d i s c u s s e d ; 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 d e s c r i b e d some of them i n a l e t t e r to a f r i e n d a f t e r he and h i s b r o t h e r had b u i l t the B r u n e t t e  years  Hill:  I went to V i c t o r i a and secured a b l o c k of l a n d f o u r acres f o r one hundred d o l l a r s , two other b r o t h e r s , Howard and C l a r e n c e , went across the G u l f i n a row boat t o Baynes Sound and bought a s m a l l m i l l on the I n s t a l l m e n t p l a n nothing down from George Haynes and George Cole of Moodyv i l l e . , , . The p l a n t we had shipped to New Westminster and I n s t a l l e d i n the mill. The b i g saw would cut twenty e i g h t i n c h e s . I n order to cut b i g l o g s /_we7 would r u n the saw through the c e n t e r , t u r n the l o g back and cut one q u a r t e r , t u r n back a g a i n and so on u n t i l the l o g was used up.... For the m i l l f o u n d a t i o n we hauled w i t h a w i n d l a s s , b i g 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 s t o r y f o r a cookhouse and l i v i n g q u a r t e r s , . . . We a l s o b u i l t a b r i d g e across the B r u n e t t e , 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, P r o v i n c i a l Archives.  1921,  ^QO^Co^^sj^onMB^^  32 Next We b u i l t a small wharf about sixtyfeet 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 r i v e r . I t was a great success i n more ways than one. The summer freshet carried the wharf away. We didn't loose (sic) much and got r i 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 b u i l t one of sheet iron, ten feet diameter, and ten feet deep.... With a big f i r e the sheet i r o n got hot and gradually began to slump down.... The s l i p f o r hauling logs into the m i l l was constructed with f i v e boom sticks from the bed of the m i l l 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 e l e c t r i c l i g h t i n g those days we had to f a l l back on the o r i g i n a l dog-fish o i l lamps.... We.had a l o t 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 p r o f i t from  supplying the thriving salmon canneries with boxes, trays, floats and the materials with which to build the canneries themselves.  M i l l s for this purpose were located at New  Westminster, Georgetown, Metlakahtla, and on the Skeena and Naas r i v e r s .  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 m i l l at Chemainus at a cost of three thousand dollars.  Finding  d i f f i c u l t y i n obtaining s u f f i c i e n t water for proper  60 . W. DeBeck to Keary, July 16, 1931, Provincial G  Archives.  33  o p e r a t i o n , he obtained p e r m i s s i o n t o d i v e r t water 61 nearby streams t o supplement the power.  from  I n so doing  he I n c u r r e d 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 y e a r s . 1880,  When he d i e d , i n  h i s dream of Chemalnus as a g r e a t  c e n t r e remained u n t i l 1885,  unfulfilled.  lumber-producing  H i s widow operated the m i l l  when she s o l d out t o C r o f t and Severne,  who  produced, t i e s and lumber f o r the c o n s t r u c t i o n of the E s q u i m a l t and Hanaimo R a i l r o a d . The work a t these p i o n e e r e s t a b l i s h m e n t s c o n s i s t e d of  two main d i v i s i o n s ; namely, p r o c u r i n g the timber from  the woods, and c u t t i n g i t up i n t o planks a t the m i l l s . The s a w - m i l l owner o c c a s i o n a l l y undertook the work i n the woods on h i s own account, but more o f t e n c o n t r a c t e d w i t h a l o g g e r , who agreed t o d e l i v e r l o g s i n t o the m i l l - p o n d c l o s e t o 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 F a l s e Creek of present-day Vancouver f o r the H a s t i n g s M i l l , not as an employee but as an independent  contractor.^3  i n a like  manner  Jonathan M i l l e r , the f i r s t postmaster of Vancouver, logged off  P o i n t Grey between 1865 and 1871$  '  a n d  Angus E r a s e r  "The I n d i a n s c a l l e d i t Tzimminis," Earmac Mews, (Feb.-Mar., 1956), p. 7. Loc, c i t .  34cut 9,4-70,000 feet from eighty acres of land on English Bay i n the year 1875,  a l l of which he sold to the Hastings  M i l l for export to A u s t r a l i a . ^  &  6 6  Logging for a pioneer m i l l was a r e l a t i v e l y undertaking.  simple  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 r o l l e d 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 a d r i f t . Booms were placed across to confine the logs u n t i l a s u f f i c i e n t number were obtained to form a boom for the mill.  The logger then selected a suitable spot for his  hut and b u i l t 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, f e l l i n g 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 persona l i t i e s on Burrard Inlet see* Maclnnes, T., "Early days on Burrard Inlet," Western Lumberman, v o l . 23, (August 26,  1926), pp. 30, 36.  35 where they had been used to the axe from boyhood. The f a l l e r s 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 t h i r t y  to forty dollars per month with food.  When a camp was  located so far distant from a m i l l that boards could not be obtained, the house was b u i l t of logs with moss stuffed between them and the roof was made of long splints of cedar.  I t 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 l i k e a vast extinguisher. In one corner of the room, stood an American iron cookingstove, while benches and a long table at which the men  ate  completed the furniture. The running of a large m i l l —  quite apart from  the requirements of the logging camps — f i f t y to one hundred hands.  required from  They served i n the capacity  of engineers, firemen, log-haulers, gang-sawyers, c i r c u l a r 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 m i l l were, on an average, scarcely equal to those i n the logging camps5 more rough labourers were found among the people at the m i l l .  The  36  married men and  at a ''sawmill l i v e d i n s m a l l wooden c o t t a g e s ,  a g e n e r a l s t o r e was  u s u a l l y run i n c o n j u n c t i o n  the m i l l to serve the needs of t h e i r f a m i l i e s . unmarried men  l i v e d i n one  or two barracks  or  with  The dormitories,  and ate t h e i r three d a i l y meals i n a l a r g e messhouse attached  t o the company cookhouse.  They worked from s i x  t o s i x , w i t h only h a l f an hour f o r d i n n e r . the common l a b o u r e r s ranged from #25 board and  The wages of  t o $4-5 a month w i t h  l o d g i n g ; and the s k i l l e d men  r e c e i v e d from  $40 t o §60 per month w i t h 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 l a b o r I n s a w m i l l s , l i k e l a b o r everywhere I n the West In t h a t e r a , was l a b o r e r was  transient.  An unmarried  l i k e l y to remain i n the employment of a m i l l  anywhere from two  to f o u r weeks, a f t e r which he would draw  h i s 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 s m a l l margin of p r o f i t , sometimes so s m a l l indeed t h a t l a b o r e r s had d i f f i c u l t y i n o b t a i n i n g t h e i r wages.  Sometimes they were a c t u a l l y f o r c e d  to s t r i k e I n order to f o r c e a harassed management to arrange another bank l o a n . ^ The  m i l l s were g e n e r a l l y d r i v e n by steam power,  67  , S p r o a t , 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 c o n d i t i o n s m a New Westminster s a w m i l l cjErc^a 1883, see: Roberts, Morley, The Western Avernus, London, ~§T C. Brown, Langham and Company, L i m i t e d , 1904, pp 161-180. 0  37 the refuse of the logs supplying an abundance of f u e l . The sawn lumber was run out of the m i l l 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 a r r i v a l of the railroad i n 1886.  For  three decades the industry had faced the almost insurmountable problems of a lack of c a p i t a l and the absence of a near and steady market. of these conditions.  The r a i l r o a d was to remedy both  I t gave the Coast mills a market  for their products i n the Northwest Territory and Manitoba at precisely the time when the American f r o n t i e r 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 p r a i r i e land and the B r i t i s h Columbia forests.  And the American  lumbermen who were to arrive i n B r i t i s h Columbia after 1886 were to d i f f e r i n one important respect from the Saywards, Moodys and Irelands —  they came with inexhaustible  amounts of c a p i t a l .  ? Brown, Robert, "Lumbering on the North P a c i f i c Coast," i n Countries of the world (Vol. I ) , pp. 259-263, London, Cassel Petter & Galpin, (I876?). 6  '  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 R o c k i e s i n t h e 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. p o s s e s s i n g o n l y a sparse population  of h u n t e r s , miners, p r o s p e c t o r s and I n d i a n s *  Lumbering i n the I n t e r i o r , other than t h a t which was c a r r i e d on d u r i n g  the p e r i o d of the gold r u s h , dates back  o n l y t o the commencement of t h e c o n s t r u c t i o n I n B r i t i s h Columbia of the main l i n e of t h i s The Its  railway.  r a i l w a y c r e a t e d a l a r g e demand f o r lumber.  f i r s t s t r u c t u r e s , temporary i n l a r g e 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 fargreat q u a n t i t i e s of t i e s and timbers. and  other b u i l d i n g s r e q u i r e d other s i z e s and grades. The  for  S t a t i o n houses  bridges  f i r s t lumbermen i n the I n t e r i o r were and other s t r u c t u r e s , who e s t a b l i s h e d  contractors sawmills  at v a r i o u s p o i n t s t o c u t timber i n advance of the a c t u a l track-laying.  T h e i r f i r s t m i l l s were s m a l l p o r t a b l e  ones,  but a l i t t l e l a t e r , as the t r a c k pushed ahead and the l a r g e r s t r u c t u r e s on t h e 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 . small and simple plants.  7 0  They were usually  A circular saw cutting t h i r t y  thousand to f o r t y 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 t y p i c a l venture. Immediately after the construction of the main l i n e of the railway, a number of small portable mills were erected for the purpose of supplying lumber for l o e a l requirements.  These mills were usually located i n the  most desirable timbered d i s t r i c t s and i n locations were lumber could be produced at the minimum cost.71  When  the l o c a l 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, v o l . 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 i n : Canada. Parliament, House of Commons, Journals, v o l . XLII, (1906-07), pp. 339-341.  40 of settlement i n the P r a i r i e area was very rapid. Thousands of square miles of trackless lands were converted into farms and v i l l a g e s , and hamlets grew into cities.  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 B r i t i s h 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 P r a i r i e was not erected u n t i l 1904.  73  A large number of lumber distributing yards were located in- towns along the railroad l i n e s .  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 i n B r i t i s h Columbia i t s e l f afforded another f a i r l y good market for lumber.  The a r r i v a l of the railroad on Burrard Inlet i n  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 P r a i r i e Settlement. Toronto, The Macmillan Company, 1938. ~ Columbia River and Oregon Timberman. v o l . 5» (December, 1903), p. 9. 7 3  74 Western Lumberman, v o l . 9, (August, 1912), p. 42.  of Granville mushroomed into the bustling c i t y of Vancouver almost overnight; and the already established larger centers of New Westminster and V i c t o r i a too f e l t the impact of the quickening of the i n d u s t r i a l tempo. While many of the more substantial structures erected i n these larger centres were of brick and stone, the smaller were of frame construction; and v i r t u a l l y a l l houses were frame. This rapid development of Western Canada i n this period did not go unnoticed i n American lumbering  circles.  Wealthy lumbermen, men whose fortunes were largely based on p r o f i t s 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 i n 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, u n t i l by 1905 a l l that remained were small fragments of the o r i g i n a l 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 m i l l s , while they allowed f i r e to run through hundreds of miles of v i r g i n 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 r i c h lumber  magnates of St. Paul, Minneapolis, and Saginaw turned their interest and their c a p i t a l to the already established industry of Puget Sound and Oregon; others looked farther north to the comparatively v i r g i n stands of B r i t i s h Columbia, now made exploitable by the building of the r a i l r o a d which connected the forests of the Coast province  76 with a growing P r a i r i e market.' That these untouched stands were the l a s t great tracts of coniferous timber i n the world was at l a s t 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 i n the province and i n 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 i n 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 C a n a l .  77  75 Lumberman and Contractor, v o l . 4, (June, 1907), p. 45. This remarkable story of depradation i s told i n greater d e t a i l i n F r i e s , R. F., Empire i n Pine: the story of lumbering i n Wisconsin, 1830-1900, Madison, State H i s t o r i c a l Society of Wisconsin, 1951* 76 Lumberman and Contractor, v o l . 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 i n 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 p r a i r i e 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 f i f t e e n years as a primary producer of lumber.  Around Fernie,  the p r i n c i p a l 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 m i l l to exploit the stands, however, was not American-owned.  I t was b u i l t by the Canadian  P a c i f i c Railroad at Coal Creek i n 1899.  I t was a sub-  s t a n t i a l structure of 60 feet by 310 feet with an adjoining 79 shingle m i l l 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 i n 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 r i s e 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. (May,  p. 3.  79 West Coast and Puget Sound Lumberman, v o l . 10, 1899, p. 340. 80 B r i t i s h Columbia Lumberman, v o l . 1, (October, 1904),  The l i s t of once-prosperous communities, established between 1900 and 1910, which depended for their existence upon the forest resources of the Fernle d i s t r i c t and which became ghost towns as the result of the rapid depletion of the forest i s a formidable one. Baynes Lake was the location of the 75,000-footper-day m i l l of the Adolph Lumber Company and the home of 250 persons. By 1923 timber was no longer accessible and the  m i l l was forced to close. Two m i l l s were located i n Waldo, the Baker Lumber  Company and the Ross-Saskatoon Company, each of which cut approximately 75,000 feet per day.  I t i s 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. community.  Waldo was a rather large and complete  81  With bunk houses, mess halls and many homes,  i t contained a population of f i v e hundred to seven hundred persons.  I t s l i f e was longer than that of most lumber towns  of the area:  when the Ross-Saskatoon Company operated  u n t i l 1923, and the Baker Lumber Company u n t i l 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 p r o f i t over the period of operation. Today Waldo i s 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 f i n i s h i n g .  The c i t y 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 v i c i n i t y of Fernie became logged-off.  The town  reached Its peak of prosperity i n 1912 when the population numbered f i v e hundred.  Elko i n turn died i n 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 i n 1931. go there i s nothing l e f t .  I t was not rebuilt and today  Flagstone with i t s 25,000 -foot-per-day m i l l and Ministee with i t s 50,000-foot-per-day m i l l and population of f i v e hundred both disappeared during the F i r s t World War . 83  Hanbury followed with i t s 50,000-foot m i l l i n 1920.  8 2  8 3  Mercer, op_. c i t . , p. 21. SbCvcit.  46 Fernie l o s t i t s boomtime atmosphere as the centre of logging and sawmill a c t i v i t y thus moved farther away to the south country.  However, since i t was the distributing  centre for a large area, i t did r e t a i n a good share of the business arising from forest a c t i v i t y .  By 1920 the  whole of the Fernie area together could not maintain the cut which was formerly maintained i n a r e l a t i v e l y small radius about the c i t y , and the industry which had supported f i f t e e n hundred lumber workers around Fernie alone i n 1914, employed fewer than one hundred i n 1940.^ Almost the t o t a l annual output of the mills of Fernie and v i c i n i t y was shipped to P r a i r i e points, a r e l a t i v e l y small amount being kept f o r l o c a l use and for the rebuilding of Fernie after the f i r e of 1908. The story of the Cranbrook area was i n many respects similar to that of Fernie.  Like Fernie, i t could trace  much of i t s i n i t i a l growth to the coming of the lumberman. In 1897 Archibald Leitch, an American lumberman of wide experience, b u i l t a small m i l l there.  He soon found  i t s capacity taxed to the utmost to meet the everincreasing demand of the Prairies f o r the lumber of the p r a c t i c a l l y v i r g i n forest of which he held a large and well-timbered  8  area i n close proximity to the saw m i l l .  5 Mercer, op_. c i t . , pp. 27-28.  47 In 1902, the pressure of business forced him to purchase additional m i l l s , with their timber holdings at nearby R6 Moyie and Jaffray.  In 1904 he erected another at Ryan,  t h i r t y - f i v e miles west of Cranbrook, and yet another at Loco, about s i x miles out of Cranbrook, to clear up the timber remaining i n that d i s t r i c t . At Perry Creek, Otis Staples of Stillwater, Minnesota, established a $250,000 m i l l 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 v i c i n i t y 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 i n the locality. Wardner, which reached i t s heyday during the mid-20's, was the s i t e of the l?0,000-foot-per-day m i l l of the Crow's Nest Pass Lumber Company which was established just after the turn of the century by Peter Lund, a Canadian lumberman.  8 6  88  This community, which was i n many  Western Lumberman, v o l . 8, (February, 1911), p. 24.  Columbia River and Oregon Timberman. v o l . 6, (November, 1904), p. 32B. 8 7  8 8  Ibid., v o l . 6, (April, 1904), p. 28.  48 respects representative of dozens of others i n 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 i t s once-considerable Industry.®9 Kitchener, the location of two m i l l s , cut some 180,000 feet of lumber per day u n t i l the late 20*s, when the forests of the area began to show signs of severe The m i l l s closed i n 1926 and 1930.  depletion.  The l i s t of once great lumber centres i s almost endless:  Jaffray, about t h i r t y miles southeast of  Cranbrook,  90  had two mills and a population of two hundred;  at B u l l R i v e r ,  9 1  the Canadian P a c i f i c Railway cut 75,000  feet daily; at W y c l i f f e ,  92  a community which disappeared  along with the depletion of the forest reserves i n 1927, cut 100,000 feet daily; Yahk, with a population of 450 residents at i t s zenith, continued to cut ties for the  93 Canadian P a c i f i c Railroad u n t i l 1928.  70  Again, almost  the t o t a l output of these mills was shipped to the P r a i r i e 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 r a i l r o a d building and P r a i r i e settlement was f e l t no less i n the Big Bend region. At Revelstoke, Dan Robinson established the f i r s t m i l l in 1 8 9 0 , a n d  along with R. Howson, erected another,  the Harbor Lumber Company, i n 1901. Both mills were sold i n 1905 to S. H. Bowman, an American with a lumber empire of sixty m i l l s 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 m i l l i o n 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, b u i l t the Big Bend Lumber Company, the pioneer m i l l at Arrowhead, i n 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, v o l . 6, (March, 1904), p. 6. 9 6  Ibid., v o l . 6, (April, 1904), p. 28.  97 i b i d . , v o l . 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 i n 1907 i t s m i l l and limits commanded a price of over one m i l l i o n dollars.^8 In 1910, B r i t i s h 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 i n 1904,^9 and a new company was organized with a c a p i t a l of f i v e m i l l i o n dollars. In Nakusp, Peter Genelle erected a m i l l i n 1892, near the Canadian P a c i f i c s h i p y a r d .  100  I t burned down  i n 1906, but shortly afterward the Quance Lumber Company b u i l t a larger one which operated on the present s i t e of the B e l l Pole Company yard.  The m i l l was eventually sold  to Victor Carlson, who formed a company known as Arrow Lakes Sawmills L t d . In 1898, Genelle also b u i l t the f i r s t m i l l of any account at Nelson, which he named the Genelle Lumber Company.  I t s establishment was based on a contract to  supply fourteen m i l l i o n feet of lumber f o r construction  9 8  West Coast Lumberman, v o l . 18, (May, 1907), p. 595-  99 Western Lumberman, v o l . 7, (July, 1910), p. 19. 100 B r i t i s h Columbia Lumberman, v o l . 38, (January, 1954), p. 72.  51 of the Robson-Pentieton branch of the Canadian P a c i f i c Railway.  Shortly thereafter, three additional mills  101  were established at Nelson, Robson, and Cascade. S. H. Bowman, the St. Louis lumberman already mentioned i n conjunction with mills at Revelstoke and gained control of them i n 1906,  Comoplix,  thereby making their  proprietor one of the most powerful voices i n 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 t o t a l capacity of i t s mills  were 200,000 feet per day, and during the year the output from i t s three m i l l s was 25,000,000 feet.  The company's  t o t a l investment i n mills amounted to $200,000and i n limits to $500,000.  The number of men employed at the various  mills and i n the yards  was about 250, and the number i n  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 i n l 8 8 7 o  104  In  fact, he may be said to have founded Kaslo as most of the  West Coast and Puget Sound Lumberman, v o l . 9, (August, 1898), p. 4 0 1 . ~ ~ — 1  0  1  102 West Coast Lumberman, v o l . 18, (October, 1906), P. 31. 1 0 3  1  P. 17.  0  4  Ibid., vol.21, (May, 1910), p. 43. B r i t i s h Columbia Lumberman, v o l . 14, (January, 1930),  52 lumber with which the town was b u i l t was cut at his m i l l . This operation f a i l e d after the turn of the century and remained i d l e u n t i l 1905 when the c i t y 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 b u i l t a m i l l at Parson, near Golden, which he operated u n t i l 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, b u i l t the second m i l l In the area i n order to make lumber of i t s extensive l i m i t s on nearby Blueberry River.  At Grand Forks,  J. F. Linburg of Minneapolis and St. Paul purchased ten thousand acres of timber i n order to manufacture cedar poles for the American Midwest market. Farther west, i n the Okanagan, and north of that, i n the Shuswap country, millmen set up portable mills to cut the v i r g i n timbers i n an attempt less to appease the appetite of the P r a i r i e market, than to satisfy the rapidly increasing number of settlers i n the dry belt surrounding Okanogan Lake. In 1894, C. S. Smith of Vernon erected the f i r s t m i l l i n Enderby.  After passing through several hands i t  5 B r i t i s h Columbia Lumberman, v o l . 34, (September, 1950), p. lOT. ~~ 1 0  1 0 6  p. 669.  West Coast Lumberman, v o l . 19, (June, 1907),  53 came inevitably into the possession of an American operator, the A. K. Rogers Lumber Company of Minneapolis in 1905.  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 i n the season,  and to provide for this large  amount of business three more l o c a l box factories were 109 established: Young and Martin, at Armstrong! and two portable m i l l s which were established i n the Lumby Valley, i n 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 i n the area.  This  m i l l had a capacity of between 175,000 and 219,000 feet a ten-hour s h i f t .  The operation's planing m i l l 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 i n 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 B r i t i s h Columbia, M. A. thesis, University of B r i t i s h Columbia, p. 137. 1 0 8  1 0 9  Western Lumberman, v o l . 18, (June, 1921), p. 33. B r i t i s h Columbia Lumberman, v o l . 1,  p. 4. 1 1 0  Eoc-.cit.  (May, 1904),  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 l i m i t s near the m i l l .  This was said to be the longest and largest  i n Canada, and amongst the largest i n the world.  I t was  claimed that logs of four to f i v e feet i n diameter at the butt passed down this chute at expresslike speeds.  Timber  holdings of the company i n 1912 amounted to an estimated six hundred m i l l i o n 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 s h i f t .  Its holdings  included nine hundred square miles on Shuswap Lake and also a m i l l 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 P a c i f i c Railway across B r i t i s h Columbia  111 MR gional report, Southern Interior: Can they l i c k the marketing problem?" The Truck Logger, (April, 1954), vol. 7, P. 39. e  1 1 2  I o c ..ait*  55 from the Rockies to the Coast, came hundreds of applications for timber situated i n d i s t r i c t s 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.  114  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 P a c i f i c and to the founding  of Prince Rupert i t s e l f .  Representative  one b u i l t on the Skeena  of these mills was  River, not far from i t s 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 i n the expectation that the boom conditions of the Southern Interior could be repeated i n the North.  1 1 4  Some operations were  Lumberman and contractor, v o l . 4, (June, 190?),  p. 45. 1 1  p.  690.  5  West Coast Lumberman, v o l . 19, (July, 1908),  56 comparatively small, l i k e that of James M. Anderson, who remembered the Caribou timber he had seen i n 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, l i k e that of  Herman J . Rossi, of Wallace, Idaho, one of the most prominent c a p i t a l i s t s i n the American Northwest,  He  headed a syndicate to secure control of some large blocks of land i n the Grand Trunk P a c i f i c belt, the handsome returns from which, encouraged the principals to acquire an additional seventy thousand acres i n Central B r i t i s h Columbia.  The lumbering, mining and a g r i c u l t u r a l riches  of this region were to be developed at the cost of a large i n i t i a l outlay. Fraser City —  He l a i d plans to build a new town  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 C i t y with B a r k e r v i l l e . the boom i n 1913,  1 1 7  The collapse of  spelled defeat for Rossi's scheme, and  the Prince George area was to wait more than t h i r t y 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. Vi,  Between 1910 and 1922,  no fewer  _ — _ —  —______  1 1 6  Timberman, v o l . 9, (July, 1917), p. 61.  1 1 7  Western Lumberman, v o l . 7, (April, 1910), p.  15.  57 than twenty such saw mills operated between Prince Rupert and Smithers.  Although situated i n the heart of  one of the richest timber belts i n B r i t i s h 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 l e .  In 1922,  the only saw m i l l i n operation  on the l i n e of the Canadian National Railways between Prince Rupert and Prince George was the 35,000-foot m i l l at Terrace.  1 1 8  Logging i n 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 i n the mountainous country was a large item of expense, and, as the timber was cut or burned tributary to the railway and the m i l l s , the logging operations had to be moved back into the mountain d i s t r i c t s , 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 u t i l i z e d .  In order to obtain an  adequate supply, many of the mountain mills u t i l i z e d timber that Coast lumbermen considered uneconomic and  1 1 8  p. 21.  West Coast Lumberman, v o l . 40, (March 15,  1922),  58 and l e f t i n 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 i n which to transport his product to P r a i r i e points.  In 1907, for  example, the railroad, always reluctant to haul empty cars from distant P r a i r i e 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 i n the Interior d i s t r i c t s were sons of P r a i r i e farmers and sought employment only for the winter months. These part-time loggers l e f t a d i s t i n c t gap i n the industry when they departed for their P r a i r i e homes i n 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 p o s s i b i l i t i e s remained favorable i n the larger Coastal towns.  In  1910,  for example, so acute was the labor problem i n 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  1 2 0  p. 529.  Western Lumberman, v o l . 8, (January, 1911), p. 29. West Coast Lumberman, v o l . 18,  (April, 1907)>  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 i n i t s m i l l 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 p r o v i n c i a l police was required to guard the mill.  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 P r a i r i e settlers would be obliged to pay for lumber.  To  this end certain lumber mills i n the East Kootenay along the Crow's l e s t Division of the Canadian P a c i f i c 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 P a c i f i c Railways, among others the right to cut timber on the railroad reserves.  The Canadian P a c i f i c  also contracted for eight m i l l i o n feet of lumber, and a l l the ties required for the Kootenay section of one thousand miles of road.  121 Western Lumberman, v o l . 7, (July, 1910), p. 20. 122 Timberman, v o l . 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 c o l l e c t i v e benefit.  An association of the  lumber r e t a i l e r s of Manitoba and the Northwest T e r r i t o r i e s , the Western R e t a i l Lumbermen's Association was formed with headquarters at Winnipeg. this association was  One of the objects of  to prevent dealers or lumber yards  from being established at P r a i r i e points, where, i n their opinion, there was  i n s u f f i c i e n t business to j u s t i f y  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  B r i t i s h Columbia and also those of the d i s t r i c t 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 R e t a i l Lumbermen's Association.  This was,  i n effect, an attempt to create  a stranglehold on the d i s t r i b u t i o n of lumber throughout Western Canada. The Canadian P a c i f i c Railway, with i t s vested interest i n f i l l i n g the great P r a i r i e 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 f a r 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 P a c i f i c . The railway therefore f e l t a moral r e s p o n s i b i l i t y 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 P r a i r i e 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 r a i l r o a d threatened to build i t s own mills i n i t s extensive forest holdings i n B r i t i s h Columbia. The Canadian P a c i f i c made i t p l a i n that i t would be reluctant to i n s t i t u t e 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, P r a i r i e 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  B r i t i s h Columbia Lumberman, v o l . 1, (March, 1904), p. 3.  62 evidence had been' tendered i n the matter. Despite i t s f a i l u r e to fight i t s case before the commission, the railroad appeared confident of i t s case against the lumbermen.  I t posted l i s t s of f a i r prices  for lumber on a l l i t s P r a i r i e railway platforms i n an effort to acquaint i t s 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 P a c i f i c threatened 125 prosecution. The lumbermen of B r i t i s h Columbia were s u f f i c i e n t l y impressed by the firm stand of the railroad company to withdraw from membership i n the Western R e t a i l 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 i n Revelstoke, they decided to form an association confined s t r i c t l y  to the manufacturers of lumber i n 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 i n the Prior and Dunsmuir  Canada, Parliament, House of Commons, Debates, 1904, v o l . I, p. 558. 1 2 4  5 West Coast and Pueet Sound Lumberman* v o l . 15, (July, 1904), p. 675. 1 2  63 administrations, was appointed to take charge of the association as secretary and treasurer.  A new  list  governing the s e l l i n g price of lumber was agreed upon by the new members of the Mountain Lumber Manufacturers Association of B r i t i s h Columbia. 6 12  1  They then proceeded  to establish r e t a i l yards of their own throughout the 127 In 1906 Breckenridge and Lund established  Prairies.  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 s u i t . Peter Lund, of the Crow's Nest Pass Lumber Company, and President of the Association, expressed s a t i s f a c t i o n with the new  arrangements: From this time on, the wholesale prices of lumber became more stable. The associ a t i o n assisted the smaller mills i n marketing their product at the same price that was realized by the larger manufacturer; i n 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, v o l . 4, (May, 1907), 1 2 7  ffest Cpa.siL.Lupbe.rman, v o l . 16,  (February, 1905),  p. 29dF• 1 2 8  Ibid., v o l . 17,  (May, 1906), p. 597.  64 was considered satisfactory, and i n the opinion of the association, or members thereof, was s u f f i c i e n t to allow them a reasonable p r o f i t on their b u s i n e s s ,  129  For a l l i t s great prosperity, the Interior lumber industry i n this period remained i n a highly vulnerable position.  Its prosperity depended almost entirely upon  the continuation of P r a i r i e demand and the appetite of the railroad builders, and with the disappearance of these demands, the raison d'etre of the Interior m i l l s would largely disappear too. By 1913j P r a i r i e demand was  declining rapidly, and  i n the following year i t almost ceased. the Interior industry was  disastrous.  The effect on I t could compete  with the Coast Industry i n neither the dwindling home market nor i n the export trade.  Its decline was  on the  whole precipitous, although certain mills, p a r t i c u l a r l y favored by circumstances, continued  to produce i n a healthy  way u n t i l the early 'twenties when they too began to close down.  l o t u n t i l the 1940's and the r i s e of cellulose  forestry would the industry of the Interior be revived. The Coast region also responded readily to the demands of the railroads and P r a i r i e settlement.  In fact,  so profitable did the Coast operators f i n d the P r a i r i e  1 2 9  p. 28.  Lumberman and Contractor, v o l . 4, (May,  1907),  market that after 1900  they paid less and less  attention to their waterborne trade.  Each year the  volume of exports from B r i t i s h Columbia diminished  as  Puget Sound millmen, always eager to satisfy export markets, took over B r i t i s h Columbia's old-established markets i n Australia and the United Kingdom. With the f i r s t demand of the railroad builders, m i l l s were established i n the v i c i n i t y of the terminal of the Canadian P a c i f i c Railroad, i n the area around present-day Vancouver and New Westminster. Mainland area was  The Lower  the l o g i c a l 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 i n order to own r e a l estate, they organized the Royal City Planing  Mills.•  L J U  When Vancouver came into existence, they  established a branch there, and after the f i r e of 1886 their m i l l 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 l o c a l business, but they now  determined to begin an export trade.  Owing to the  d i f f i c u l t i e s of navigation at the mouth of the Fraser River and the lack of a r e l i a b l e chart, lumber ships were chary about going up the r i v e r .  The company,  however, i n conjunction with the Board of Trade, of which Hendry was president, succeeded f i n a l l y i n inducing the government to survey and improve the mouth of the river.  By 1888 foreign ships could be seen loading at TM.  his m i l l for many parts of the world.  Because many  ships s t i l l refused to enter the r i v e r , 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 B r i t i s h Columbia M i l l s , Timber and Trading Company, with John Hendry as president.  From i t s establishment  i n 1878,  the business grew from a l o c a l trade of seven thousand feet per day to a foreign and l o c a l trade of 250,000  Resources of B r i t i s h Columbia, v o l . 1, (December 1, 1883), p. 31. " 1 3 0  Kerr, J. B., Biographical dictionary of wellknown B r i t i s h Columbians, Vancouver, B. C , Kerr and Begg, 1890, p. 188. 1 3 1  67 feet per day i n 1890.  Although the cargo trade of this  firm was large, the Hastings M i l l depended very considerably upon the P r a i r i e market i n later years.  This i s  evidenced by the fact that the m i l l closed down for several weeks i n 1904 and the reason advanced was the temporary slump i n P r a i r i e demand. Hendry acquired large property interests i n Vancouver, New Westminster and the Kootenay country. In 1894 he formed a company which acquired a l o c a l charter for a r a i l r o a d from Vancouver north and extending east through the Cascade range, touching at Squamish, L i l l o o e t , Anderson Lake, and extending on to the Cariboo country. I t proved, however, to be too early for this would-be precursor of the P a c i f i c Great Eastern and the project lapsed.  1 3 2  Hendry died i n Vancouver on July 17, 1916.  His  vast business was l e f t i n the hands of his son-in-law, E. W. Hamber, of the Dominion Bank, who later became Lieutenant-Governor of B r i t i s h  Columbia.  133  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, v o l . 2, (June, 1905)»  p. 20. For a detailed account of Hendry see: Canadian Forestry Journal, v o l . 12, (August, 1916), p. 672. 1 3 3  68 mills already established and eager to cut for the P r a i r i e market.  They located their m i l l 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 l a t e r the Fader brothers b u i l t the second m i l l on False Creek, which they seem to have operated i n a sporadic fashion,for i n 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 i n turn sold i t to 134 Robertson and Hackett, Ltd., who operated two logging camps i n conjunction with i t . \  Five additional mills were constructed i n Vancouver i n 1890:  four on Burrard Inlet and one on False Creek.  They were the Vancouver Sawmill Company} the G. F. Slater m i l l ; the Earnest Buse m i l l ; and the North P a c i f i c 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 In 1885,  Island.  Henry Croft and a man called Severne  bought the small pioneer Askew m i l l at Chemainus.  Almost  Flynn, J. E., Early lumbering on Burrard Inlet, 1862-1891, Graduating essay, University of B r i t i s h Columbia, 1942, p. 32. 1 3 4  A  35  deceit.  69 immediately, D. Angus bought out Severne, and Croft and Angus enlarged the capacity of the plant and mechanized i t completely./ They i n s t a l l e d new  engines, circular saws,  a small pony edger, and boilers with a capacity of 220 horsepower. ^ 13  who  Their success seemed assured for Croft,  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 m i l l ' s best customer, and Angus was the brother of R. B. Angus, vice-president of the Canadian Pacific R a i l r o a d .  1 3 7  During the years immediately following, the Chemainus m i l l supplied a l l the lumber for the construction of the Island railroad —  some twelve m i l l i o n 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-  s i t e , Croft and Angus owned large timber limits on the Island and on the M a i n l a n d ,  138  from which they drew an  inexhaustible supply of logs for their millo The m i l l enjoyed certainly natural advantages i n i t s spacious frontage and harbor for anchoring millions of feet of logs and almost from i t s inception the Chemainus  1 3  p.  ^ B r i t i s h Columbia Lumberman, v o l . 37,  ( A p r i l , 1953),  100.  The New West, Winnipeg, Canadian H i s t o r i c a l Publishing Company, lb88, p. 190. 1 3 7  1 3 8  Ibid., p.  191.  70 m i l l exported i t s products to China, Australia, South America and across the S t r a i t and by r a i l to the P r a i r i e 139 market.*^ . In 1889 the m i l l was sold to the T i c t o r i a Lumber and Manufacturing Company, owned p r i n c i p a l l y 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 m i l l for cutting construction lumber, b u i l t a modern plant with a capacity of 200,000 feet of lumber, 50,000 lath, and 50,000 shingles per ten-hour s h i f t . It was completed i n 1890, but operated for only a month before i t was shut down probably because of the general economic collapse.  I t was one of the f i n e s t mills on  the P a c i f i c Coast at that time, having cost about $ 2 5 0 , 0 0 0 . 141 It did not recommence operations u n t i l 1896  after which  time, under the management of E. J . Palmer a.Texan i t shipped each year  not less than t h i r t y m i l l i o n feet  sometimes as much as forty-eight m i l l i o n .  and  When i t burned  down i n 1923 i t had produced the astounding t o t a l of 1,000,000 m i l l i o n feet of lumber.  I t was r e b u i l t once  again and i s today one of the Province's most important !39 fhe New West. Winnipeg, Canadian H i s t o r i c a l Publishing Company, 1888, p. 190. 1  4  0  West Coast Lumberman, v o l . 3 , (July, 1892), p. 3«  141 n i 3i (Febo-Mar. 1956), p. T h e  n (  a n s  called i t Tzimminis," Harmac News.  1 4 0  71 mills.  1 4 2  In 1893 the Ross-McLaren Company, an Eastern Canadian concern, established a m i l l near Few Westminster. I t operated the m i l l u n t i l 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 i n the world. His f i n a n c i a l backers were E. J . Dodge, H. J . Crocket and G. A. Innes, three well known San Francisco c a p i t a l i s t s , and W. P. Fowle and 144 Ernest Walker, two l o c a l business men. The Fraser River Lumber Company began operations i n 1906, and i t s f i r s t shipload of lumber marked the r e a l r e v i v a l of the ocean lumber trade of New Westminster. 5 14  It soon became obvious that a larger operating capital would allow the company to take better advantage of i t s trading position and to this end a new company was formed with a c a p i t a l of twenty m i l l i o n dollars. A. D. McRae of Winnipeg became president and Peter Jansen later President McKinley•s ambassador to Russia, a Senator of  B r i t i s h Columbia Lumberman, v o l , 18, (January,  1934), p. 3 ^ 1 4 3  ~  Western Lumberman, v o l . 6, (April, 1909), p. 17.  144  Lumberman and Contractor, v o l . 3 , (March, 1906), P. 7. 1 4  5  Ibid., v o l . 3 , (February, 1906), p. 20.  the State of Nebraska and one of the largest ranch owners i n the Middle West, " became vice-president. 146  They completed the largest lumber deal on record i n B r i t i s h 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 i n the world, with the possible exception of those controlled by Frederick Weyerhaeuser, the timber king of M i c h i g a n .  147  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 i n d u s t r i a l i s t , set about re-building and extending the old m i l l at a cost of an 148 additional m i l l i o n 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  Western Lumberman, v o l . 6,  147 Ibid., v o l . 7,  (April, 1909), p. 19.  (May,"1910), p. 36.  148 Timberman, v o l . 10, (April, 1908), p. 39. 149 Ibid., v o l . 9, (September, 1907), p. 47.  noticeably as more and more Mid-West lumbermen watched potential customers for B r i t i s h Columbia lumber streaming into the P r a i r i e Provinces from Europe i n 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 p r i n c i p a l partner of the  well known firm of Brooks-Scanlon Lumber Company, which owned plants and timber l i m i t s i n the Bahamas, and i n the Southern and Northwestern States. Scanlon purchased widely i n B r i t i s h Columbia after 1905,  and i n 1909 he  erected two large sawmills, one at Harrison Lake, and another at Vancouver.  These two m i l l s , b u i l t at the  enormous cost of $750,000, could produce 350,000 feet per ten-hour s h i f t . The Brooks-Scanlon timber holding company continued  In the early 1880 s, there was a dearth of capital to develop the agricultural industries upon which the c i t i e s 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 c i t i e s were obviously i n a position to come forward with money for investment i n the various enterprises i n Western Canada, where conditions regarding investment capital were analgous to those which obtained i n and about St. Paul and Minneapolis a quarter of a century e a r l i e r . Western Canada Lumberman, v o l . 5, (June, 1908), p. 17. 1  to buy timber limits u n t i l by 1911 they had accumulated five b i l l i o n feet representing an investment of $2,500,000, Their p r i n c i p a l 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 i n the West and the largest undertaking with which he was connected.  Both partners died i n 1930.  An estimated 280 m i l l i o n feet of cedar timber i n the Capilano Valley on the north shore of Burrard Inlet were acquired i n 1908,  by the Nickey interests of Memphis,  Tennessee, and C. A. Marsh, a leading Chicago capitalist*, A standard-gauge logging railway was b u i l t into the limits 152 i n 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  .  the North Arm of Burrard Inlet at the cost of $300,000. In 1905,  153 '°  H. L. Jenkins and J . C. Busch, of Blaine,  secured between 75,000,000 and 100,000,000 feet i n the Municipality of North Vancouver and 2,300 acres i n the 154 neighbourhood of Campbell River and Discovery Pass. ' Their firm, Vancouver Timberofand Trading Company, 5 1 Athe detailed obituary Scanlon appeared in: West Coast Lumberman, v o l . 57, (November, 1930), p. 43. 1  5  1<  2  Western Lumberman, v o l . 14, (April, 1917), p. 36.  !53 West Coast Lumberman, v o l . 18,  (May, 1907), p. 595.  154 Ibid., v o l . 16,  (May, 1905), p.  511.  established large camps to cut timber for export to n ^ t e r and  Blaine, where i t operated a large m i l l . ^ ? 1  Fox, two other Blaine operators, purchased the Leamy and Kyle m i l l In Vancouver and operated i t i n conjunction with their Blaine p r o p e r t y . ^ 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 m i l l . ^ 7 Twenty-two A  thousand acres were bought on Harrison Lake by R. H. Roys of Saginaw, Michigan, and M. E. J e f f r i e s of Janesville, Wisconsin ^ 1  8 w  k i i @ the Vancouver Lumber Company was  purchased by J . D. Moody and A. Taylor of Texas. ^9 x  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 f i o r d for f l 5 0 , O O O . ° l6  x  5 ? West Coast Lumberman, v o l . 17,  x  56 Timberman, v o l . 3,  (June, 1906),  p. 672. (July, 1902), p.  11.  157 United States Government, Department of Commerce Monthly Consular and Trade Reports. No. 306, (March, 1906), P. 17. x  5  x  59 Lumberman and Contractor, v o l . 4,  8  West Coast Lumberman, v o l . 19, (September 1908),  P. 833. (March, 1907),  P. 34. x  P. 833.  6 ° West Coast Lumberman, v o l . 19, (September,  1908)  An area of about eight square miles of timber i n the Squamish Valley was acquired by Colin Campbell, of Seattle i n 190?.  His Seattle logging firm cut  twenty-five  m i l l i o n feet the following year, most of which was  utilized  by the P a c i f i c 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 l i n e of the Canadian P a c i f i c 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 m i l l i o n dollars. San Francisco and Australian c a p i t a l i s t s backed a concern to build a m i l l at Grumshewa Bay, part of Graham Island.  In 1906  on the southern  D. Drysdale, of Seattle,  formerly president of the Alaska Packers  Association,  acting i n conjunction with English c a p i t a l i s t s established  West Coast Lumberman, v o l . 16, p.  1 6 2  l o  p.  (June, 1905),  573.  19.  3  Ibid., v o l . 20,  (June, 1909), p. 660a.  Western Canada Lumberman, v o l . 5,  (June, 1908),  77 a m i l l 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 165 Moresby Island.  square miles of timber on  In 1909 New York and Iowa people  invested i n seventy-six sections of timber on the same island with the intention of building a m i l l at Skidegate. On Vancouver Island the m i l l of the Cowlchan Lumber Company, near V i c t o r i a 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 t h i r t y thousand acres of fine timber i n the  16 9 neighbourhood. Seventy-eight sections were secured by a company, the p r i n c i p a l stockholders of which were E l l i o t t Calendar  1  6  4  West Coast Lumberman, v o l . 17,  (October, 1906),  p. 31. 1 6  5  1 6 6  1 6 7  i b i d . , v o l . 16, (January, 1905), p. 164. Ibid., v o l . 20, (June, 1909), p. 660a. Ibid., v o l . 19, (July, 1908), p. 690.  ° United States Government, Department of Commerce, Monthly Commerce and Trade Reports No. 306, (March, 1906), p. 16. 169 West Coast Lumberman, v o l . 18, (December, 1907), P. 177. ± 0  T  of Peoria, I l l i n o i s ; G. R. G r a z e l l i 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 i n B r i t i s h Columbia when, i n 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 m i l l i o n feet of f i r and cedar, lay between Salmon and Campbell R i v e r s .  1 7 1  St. Louis c a p i t a l i s t s acquired twenty thousand acres of heavily timbered land i n the v i c i n i t y 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. 3 17  In 1907 E. B. Caldwell of Michigan purchased sixty  174 thousand acres of timber on the same island. Hew York c a p i t a l i s t s headed by Richard C. Patterson and including B. G. Poucher and W. S. Kinnear, prominent  1 7 0  West Coast Lumberman, v o l . 19, (November, 1908)  p. 96. 1 7 1  1 7 2  1 7 3  Ibid., v o l . 17, (November, 1905), p. 89. Western Lumberman, v o l . 7,  West Coast Lumberman, v o l . 18, ri  P.  (August, 1910), p. 1 (December,  177. 1 7 4  Ibid., v o l . 18, (April, 1907), p. 529.  1907)  79 i n d u s t r i a l 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 C o a s t . ^ 17  The Sutton Lumber Company an American concern erected a m i l l 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  i t s seventy square m i l e s  1 7 7  of f i r s t - c l a s s v i r g i n timber,  process i t chiefly into shingles and ship them around Cape Horn to the New York market.  The number of shiploads  dispatched i s not known, but i t cannot have been large, for there i s no record of the existence of the firm i n the years that followed although Clayoquot continued  1 7 5  1 7 6  Timberman, v o l . 23, (June, 1902), p. 99. West Coast Lumberman, v o l . 18, (September, 1907),  p. 890. United States Government, l£m&hlX.£m££l3lL.&£<k Trade Reports, No. 308, (March, 1906), pp. 177-178. 1 7 7  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 B r i t i s h Columbia timber for which he paid over two m i l l i o n 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 m i l l i o n feet.  Ownership was vested i n the White  Brothers Lumber Company, incorporated i n Michigan with a capital of two m i l l i o n 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 i n B r i t i s h Columbia, i f not i n the world. In 1910 William McKnight, a prominent millman of Grand Rapids, Michigan, organized the Michigan-Puget Sound Company, which acquired vast limits i n the Jordan 179 River area on the West Coast of Vancouver Island. This syndicate, with a capital of $1,500,000, merged i n 1911 with another American firm, the Michigan-Pacific Lumber Company, to form the Canadian Puget Sound Lumber Company, Limited.  With a capital of five m i l l i o n dollars,  the new organization was one of the largest, i f not the 1 7 8  Western Canada Lumberman, v o l . 5,  (December, 1909),  p. 19. 1 7 9  Western Lumberman, v o l . 8, (July, 1911), p.  59.  l a r g e s t , of i t s k i n d 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 u n d e r t a k i n g , the Few Miami Lumber Company, w i t h 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 R i v e r r e g i o n . I n 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 of  $1,250,000.  Sound. Lumber Company, w i t h a c a p i t a l i z a t i o n  1 8 0  .Apparently u n t i l about 1905 l i m i t s was  the s t a k i n g of timber  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 I s l a n d and at p o i n t s  along the Mainland  coast t o a d i s t a n c e of two hundred or  two hundred and f i f t y m i l e s n o r t h of Vancouver. 1905,  After  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 t o the n o r t h , both on the Mainland  and  on the Queen C h a r l o t t e I s l a n d s . 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 speculative.  i n B r i t i s h Columbia timber was  wholly  Most l a r g e I n v e s t o r s seemed w i l l i n g to e r e c t  m i l l s to cut t h e i r h o l d i n g s when the p r i c e of lumber warranted  it;  some l a r g e t r a c t owners, however, were  I n t e r e s t e d w h o l l y i n s p e c u l a t i o n , or almost so.  1  p.  16.  Western Lumberman, v o l . 7,  Certainly  (February, 1910),  82 there were many small speculators l i k e W. E. Simpson of Iowa F a l l s , Iowa, who  invested i n timber berths on  Southwest Vancouver Island i n 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, l i k e T. B. M e r r i l l , the f i r s t American to recognize the long-term value of the B r i t i s h 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 O i l fame, and the Alworth family of D u l u t h .  182  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 c a p i t a l i s t s 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. M e r r i l l , the 21-year-old son of the Michigan lumber  181 West Coast Lumberman, v o l . 20, (September, 1909), p. 885. 1 8 2  Lumbering and Contractor, v o l . 4, (November,  1907), p. 13.  83 operator, v i s i t e d B r i t i s h Columbia from San Francisco, and, l i k e many Americans who followed later, was overwhelmed by the large dimensions and the v i r g i n condition of what he saw.  Ireland f i r s t showed him some choice  timberland on Malaspina Inlet.  M e r r i l l just ran through  the woods and looked around and waved his arms and said "Its  great; i t ' s f i n e .  I want to buy i t . "  For these  f i v e thousand choice acres he paid a t o t a l of fourteen thousand d o l l a r s .  By 1909, M e r r i l l , then a member of  M e r r i l l and Ring, of Puget Sound, valued the property at more than $500,000 despite his having already taken a fortune out of i t i n 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 i n 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  i n the Railway Belt. 1 8  3 West Coast Lumberman, v o l . 20, (September, 1909),  p. 885. 1 8 4  Lumberman and Contractor, v o l . 4, (September,  1907), p. 13.  84 The eleverl thousand-odd  acres stood i n the name  of Mr. H. Brownell, secretary of the Everett Timber and Investment Company, the regional representative of the  185 Standard O i l Company.  I t was said that the Rockefellers  desired to own anywhere from f i v e hundred to one thousand square miles of the province. By 1907 they had acquired 186  over three hundred square miles of timberland.  These  purchases proved a lucrative long-term investment. Rockefeller held them for t h i r t y years before s e l l i n g one tract i n 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 u n t i l 1940 before s e l l i n g out to the Canadian Robert Dollar Company for approximately two m i l l i o n  188 dollars. B r i t i s h Columbians welcomed the i n f l u x 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, v o l . 4, (September,  1907), p. 13. 1 8 6  187 p. 25. 1 8 8  Ibid., v o l . 4, (November 1907), p. 13. West Coast Lumberman, v o l . 64, (March, 1937)» Ibid., v o l . 67,  (February, 1940), p.  51.  American operators might render them economically subordinate to another nation, and the phrase "loss of national identity" had not yet been coined.  The pre-  v a i l i n g attitude was nicely summed up by the editor of the Western Canada Lumberman. I t i s not with a s p i r i t of complaint that we say that i f the Eastern Canadian manufacturer does not become a l i v e to the big chances for opening here, the United States manufacturer w i l l . The world's capital i s looking for profitable investment, and Western Canada i s not being overlooked. Money w i l l surely come i n larger amounts than ever before and we invite the Eastern Ganadlans to get i n 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 i s developed, but we are l o y a l 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 i s realized that c a p i t a l invested i n the province's timber business at the turn of the century did not exceed two m i l l i o n d o l l a r s . Among the largest timber holdings were those of the B r i t i s h Columbia M i l l s , Timber and Trading Company of Vancouver, with 75,000 acres; the Toronto and B r i t i s h Columbia Lumber Company, with 45,000 acres; the Ross, McLaren Company, with 23,600 acres; the North P a c i f i c  1  P.  15.  v  Western Canada Lumberman, v o l . 5,  (July, 1908),  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 l a t e r , American investment alone i n B r i t i s h Columbia mills and timber mounted to s i x t y - f i v e 191 m i l l i o n dollars, and by 1914, i t had risen to seventy 192 7  million dollars.  I t was reported i n a .IT. S. Consular  Trade Report, that f u l l y ninety per cent of a l l great business enterprises i n Western Canada, had United States 193 c a p i t a l i s t s interested i n them.  J. 0. Cameron, a  prominent millman from Texas was moved to comments The assertion that the lumber industry of B r i t i s h Columbia i s absolutely dominated by U. S. c a p i t a l , i s so f a r removed from the r e a l 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 t h i r t y per cent. So far as Victoria Is concerned, there i s only one m i l l that Is owned by Americans, Regarding my own company, the owners may have o r i g i n a l l y been Americans, but we a l l l i v e i n V i c t o r i a and I would certainly challenge the statement that the Cameron Lumber Company i s anything but a Canadian i n s t i t u t i o n . " 1  4  190 Timberman. v o l . 11, (August, 1902), p. 56. 191 United Statement Government, Department of Commerce, Consular and Trade Reports. (June 15, 1911), No. 139, p. 1181. Ibid.. (February 11, 1914), No. 1 4 5 , P. 554. 1  9  2  Western Canada Lumberman, v o l . 5, (June, 1908), p. 17. 1  9  4  Western Lumberman, v o l . 18, (June, 1921), p» 31<  87 The d i s t i n c t i o n Cameron made between owners who moved to Canada to actively head their organizations on a permanent basis and those owners who remained resident i n the United States while consistently drawing their p r o f i t s from Canada was certainly more v a l i d than i t appeared upon f i r s t notice.  Many of the American operators  who arrived i n that era remained, l i k e the Camerons, to ('eventually become Canadian citizens i n 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 i n recognizing a profitable venture. German investment i n B r i t i s h Columbia's forest dates from 1901 when i t was reported that German c a p i t a l i s t s had secured 35,000 acres of timber land, and would expend 1500,000 i n a saw m i l l 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, u n t i l German investors found i t expedient to be represented l o c a l l y by one of their own countrymen, Baron Alvo von Alvensleben.  In 1910,  this agent startled  timber interests by purchasing for one m i l l i o n dollars the extensive business and holdings of the Vancouver Timber & Trading Company on behalf of German c a p i t a l i s t s .  The  5 West Coast and Puget Sound Lumberman, v o l . 12, (September, 1901), p. 54-7. 1 9  88  h o l d i n g s of the concern i n c l u d e d s i x l a r g e l o g g i n g camps, about twenty m i l l i o n f e e t of logs i n booms a d j a c e n t t o 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 Great War  With the outbreak of the F i r s t  i n 1914, the v a r i o u s B r i t i s h Columbia  of v o n ' A l v e n s l e b e n went I n t o l i q u i d a t i o n 1.nvestmant  Interests  and German  disappeared.  B r i t i s h investment was more widespread and more d i f f i c u l t t o I s o l a t e from. American and Canadian investment. Much of i t was managed "by the Western F i n a n c e Company, of V i c t o r i a , which purchased timber l i m i t s on b e h a l f of its clients• Vancouver  A r e p r e s e n t a t i v e purchase was one made on  I s l a n d , which aggregated 2 0 0 , 0 0 0 a c r e s , the  c o n s i d e r a t i o n 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 I s l a n d , i n the Quatsino, Nootka, Clayoquot and N i t i n a t 37 Q  Kale d i s t r i c t s ,  Another B r i t i s h concern was  B r i t i s h Canadian Lumber Company, founded i n 1910 c a p i t a l of two m i l l i o n d o l l a r s , E n g l i s h f i n a n c i a l houses.  the with a  by s e v e r a l prominent  They bought the P a c i f i c  Coast Lumber M i l l ' s p l a n t and timber l i m i t s f o r $ 6 0 0 , 0 0 0 , 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.  1 9 8  89 Shortly thereafter, four of the largest and best known mills operating i n 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 B r i t i s h corporation, the Canadian P a c i f i c Lumber Company.  The c a p i t a l i z a t i o n of the new  concern was f i v e m i l l i o n dollars, and the head o f f i c e was i n Vancouver.  M i l l s included i n the consolidation  were the Canadian P a c i f i c 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 L a k e s . " 1  Although American c a p i t a l dominated the era, Eastern Canadian c a p i t a l was represented i n a comparatively small way.  Prominent among the Eastern Ontario operators  who came to B r i t i s h 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, v o l . 7, (September, 1910),  p. 20. B r i t i s h Columbia Commercial Journal, v o l . 1, (May 19, 1891), p. 6. 2  0  0  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 i n Virginia as well as three hundred square miles on the Mississippi River i n Ontario. ' 2  With such a r i c h background of experience i n the trade, the McLarens early recognized the commercial p o s s i b i l i t i e s of the forest lands of the coastal areas, and having accumulated s u f f i c i e n t investment capital from their extensive operations, they invested l i b e r a l l y i n 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 m i l l on the Fraser, which continued to operate u n t i l 1 9 0 5 when they sold i t to the company which used i t as the nucleus f o r the establishment of the famous Fraser M i l l s . The construction of a branch of the B. C. E l e c t r i c Railway Company into the Chilliwack Valley i n 1 9 0 9 , gave an opportunity to the Ross-MacLaren Lumber Company to 203  exploit their timber holdings,  but i t i s doubtful  Who's who and why. 1917-18. Toronto, International Press, p. 1342. 2 0 1  2 0 2  2  P.  32.  Timberman, v o l . 23, .(April, 1922), p. 200.  °3 West Coast Lumberman, v o l . 1 9 , (October, 1908),  91 t h a t they took advantage of I t , f o r i n 1922 the M i l l Company w i l l i n g l y p a i d $600,000 f o r t h e m . Again, i n 1898 the McLarens purchased  Westminster 2 0 4  extensive  timber h o l d i n g s i n the Campbell R i v e r r e g i o n and once a g a i n e r e e t e d a m i l l , t h i s time a t B a r n e t , on B u r r a r d Inlet.  They operated t h i s m i l l i n a d e s u l t o r y f a s h i o n  205 u n t i l 1900, and then c l o s e d i t .  I t re-opened t o  operate s p o r a d i c a l l y f o r the next two decades, o n l y t o I n 1926  cease o p e r a t i o n s e n t i r e l y a t the end of the war.  the f a m i l y d i s p o s e d of t h e timber l i m i t s a t Campbell R i v e r t o B l o e d e l , Stewart & Welch f o r $3,000,000 and another on Vancouver I s l a n d t o the Lamb Lumber Company f o r $550,000.  The p r o f i t s on the investment must have been  l a r g e indeed. H i s t o r i c a l evidence seems t o bear out the b e l i e f t h a t the McLarens were n o t s e r i o u s l y concerned about t h e p h y s i c a l b u s i n e s s 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 a l l o w i n g the passage o f time to s u r e l y i n c r e a s e the v a l u e o f t h e i r stumpage.  The m i l l s  which they b u i l t on the F r a s e r and a t Barnet were e r e c t e d o n l y t o comply w i t h the government r e g u l a t i o n o f 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 p r o s c r i b e d the s a l e o f timber lands f o r p u r e l y s p e c u l a t o r y purposes and s t i p u l a t e d the e r e c t i o n o f a m i l l w i t h e v e r y l a r g e s a l e o f crown-grant f o r e s t l a n d . The expense o f e r e c t i n g m i l l s , which were never operated to any e x t e n t , was deemed w o r t h w h i l e i n view o f the i n c r e a s i n g v a l u e o f the t i m b e r . I t i s o f t e n e r r o n e o u s l y assumed t h a t the e a r l y lumbering b u s i n e s s on t h e Coast was p r i m a r i l y an o f f s h o r e trade.  That assumption i s v a l i d f o r t h e p e r i o d b e f o r e  the advent o f the r a i l r o a d , b u t a f t e r t h a t , and e s p e c i a l l y a f t e r 1897, t h e 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 t h e l a r g e r p a r t o f t h e Coast p r o d u c t i o n . I n the r e p r e s e n t a t i v e year o f 1904, shipments from t h i r t y t h r e e Coast m i l l s t o the P r a i r i e s , amounted t o 95,540,444 f e e t , t o E a s t e r n Canada 10,000,000 f e e t ; t o 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  i n the home market.  Thus over 255 m i l l i o n f e e t were used By c o n t r a s t , the e x p o r t i n g m i l l s o f  the Coast despatched o n l y 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 c u t from both t h e I n t e r i o r and C o a s t a l r e g i o n s . Only on Vancouver I s l a n d d i d the i n d u s t r y depend 2 0 7  2 0 8  p. 22.  Timberman, v o l . 7, (October, 1905), p. 25. Western Lumberman, v o l . 7, (January, 1910),  c h i e f l y on the e x p o r t t r a d e .  As l a t e as 1907,  there  was o n l y one l a r g e producer on the E a s t Coast of Vancouver I s l a n d , the Chemainus m i l l , which produced 165,000 f e e t 209 daily,  w h i l e 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 W e l l i n g t o n , Ladysmith, Duncan, Shawnigan  Lake  and V i c t o r i a , c u t o n l y between f i v e thousand and f o r t y thousand f e e t each and so c o u l d not be compared w i t h the 210 l a r g e r m i l l s of the Lower M a i n l a n d and I n t e r i o r . Even so, l a r g e shipments were made from time t o time a c r o s s the G u l f of George to the M a i n l a n d .  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 t o Whitehorse, Yukon T e r r i t o r y , i n 1900  t o help a l l e v i a t e the shortage  211  of housing among the hordes of g o l d s e e k e r s . The same company made a p i o n e e r car and shipment of lumber t o 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 I s l a n d , was made from the Canadian P a c i f i c Lumber Company's m i l l a t P o r t A l b e r n i , i n 1912. Timberroan, v o l . 9, (August, 1907), p. Lbc.cit. 213  2 0 9  41F.  2 1 0  2 1 1  I b i d . , v o l . 2, (August, 1900), p.  2 1 2  I b i d . , v o l . 2, (December, 1900), p. 11.  2 1 3  Western Lumberman, v o l . 9,  14.  (August, 1912), p.  57.  94 These valiant attempts to compete with Mainland mills for the Mainland market were not successful i n the long run.  The Island industry had to wait for the  opening of the Panama Canal i n 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 P r a i r i e 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 s p i r i t of boisterous optimism pervaded the whole of the West. On the Prairies and i n B r i t i s h Columbia, villages became towns and town became c i t i e s , and c i t i e s l i k e Vancouver underwent construction booms which saw thousands of frame houses and hundreds of large buildings r i s e with great benefit to the mills of both the Coast and the Interior regions. In the midst of this great upsurge of a c t i v i t y there occurred the earthquake i n San Francisco on A p r i l 18, 1906.  That c i t y , always a heavy buyer of f i r  lumber absorbed 925 m i l l i o n feet i n the process of  re-building — to t a k e .  double the amount i t had been accustomed  So great was the demand made on Coastal  2 1 4  mills by the disaster that a temporary shortage ensued. 5 2l  Another earthquake at Valparaiso, occurring i n August of the same year added to the backlist of orders. As an Indication of the rush f o r timber and manufacturing p r o f i t s , no fewer than ninety new companies entered the lumber business i n B r i t i s h Columbia i n 1907.  Through-  out the l a t t e r part of the decade large cargoes were also despatched to the Panama Canal by m i l l owners who held contracts to supply the construction project t h e r e .  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, i n 1912  B r i t i s h Columbia  millmen  began to f e e l more than ever the effects of the invasion of the P r a i r i e 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, v o l . 4, (March, 1907), P. 30. 2 1 6  2 1 7  Timberman. v o l . 10, (January, 1908), p. 25. Ibid., v o l . 6, (December, 1904), p. 29.  96 American competition for the P r a i r i e market was no new phenomenon.  Common lumber had been placed on  the free l i s t by the Conservative Government i n 1894, and had remained there ever since. B r i t i s h Columbia , millmen had protested against the practice of their Inland Empire counterparts who, enjoying a vast home market protected by a t a r i f f wall, i n times of f i n a n c i a l urgency dumped large quantities of common lumber on the Canadian pig  Prairies. So serious had the invasion of the P r a i r i e Market become by 1900, that a deputation from the industry Interviewed S i r W i l f r i d Laurier to request the establishment of a t a r i f f of three dollars per thousand on foreign lumber, and t h i r t y cents on shingles. The deputation was composed of the mayors of Vancouver and New Westminster, John Hendry of Vancouver, W. C. Wells of P a l l i s e r , B. C., and J . G. Scott of Vancouver.  219  In substance, the p e t i t i o n 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 i n B r i t i s h Columbia than i n Washington or Oregon.  2  1  8  Eighty percent  Western Lumberman, v o l . 12, (April, 1915), p. 13•  Columbia River and Oregon Timberman, v o l . 6, (June, 1904), p. 39. ~ 2  1  9  97 of the donkey engines and blocks were made i n the United States.  The wire rope came from England, while saws and  small-mill machinery was mostly made i n Canada.  Large  m i l l s used American-made burners, bands, gangs, log-deck and e l e c t r i c a l 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 i n B r i t i s h Columbia compared unfavorably with that of Washington and Oregon, being ten percent higher i n B r i t i s h Columbia than i n Oregon. Considerable cheap Oriental labor was used i n the mills of B r i t i s h Columbia but, according to l o c a l millmen, i t 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 i n Provincial forests and on public works. The petitioners might have added that no public railroads traversed logging d i s t r i c t s such as existed i n Washington and Oregon, so that when a railroad was needed for log transport i t had to be b u i l t from the water by the logger himself, a much more serious undertaking than the  Langille, H. D., "Canadian lumber competition," American Forestry, v o l . 21, (February, 1915), p. 135. 2 2 0  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 i n l o c a l i t i e s 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 i n open waters added a further considerable amount. The delegation presented these arguments to the Minister of the Interior and requested his serious consideration. C l i f f o r d 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 i n P r a i r i e points.  Sifton  was regarded by his cabinet colleagues as a kind of lone director i n matters affecting the internal p o l i c i e s 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,  Hendry, John, "Logging i n B r i t i s h Columbia," Western Lumberman, v o l . 7, (September, 1910), p. 21. d  1  99 American m i l l m e n were e n j o y i n g t e n p e r c e n t o f the P r a i r i e ppp  trade,  and they continued t o do so throughout the decade.  I n the years 1911, 1912 and 1913 t h a t market absorbed 479,169,300 f e e t o f lumber, 121,940,000 l a t h and 90,093,000 s h i n g l e s , imported from the U n i t e d S t a t e s .  I t had become  the prime dumping ground f o r low-grade lumber from the I n l a n d Empire. -^ 22  B r i t i s h Columbia millmen had been a b l e  to weather the c o m p e t i t i o n i n good years o n l y because the P r a i r i e demand was so v e r y g r e a t .  I n years o f s t r e s s and  fewer o r d e r s , t h e y found c o m p e t i t i o n extremely d i f f i c u l t . O v e r - s p e c u l a t i o n i n the i n d u s t r y was another source of t r o u b l e .  By 1915 t h e r e were enough m i l l s t o produce  a n n u a l l y two b i l l i o n f e e t o f lumber, w h i l e the g r e a t e s t pp  demand ever r e q u i r e d was about one  A  billion.Excessive  s p e c u l a t i v e d e a l i n g s i n urban r e a l e s t a t e marked the p e r i o d s i n c e as f a r back as 1897, and the 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 .  consequent  There was a sudden  c o n t r a c t i o n i n the output o f numerous i n d u s t r i e s  connected  w i t h the s u p p l y o f m a t e r i a l s and equipment f o r r a i l w a y and residential building. Z Z e i  A r e d u c t i o n consequently occurred  Timberman, v o l . 7, (October, 1905), p. 25.  3 L a n g i l l e , H. D., "Canadian Lumber C o m p e t i t i o n , " American F o r e s t r y , v o l . 21, (February, 1915), p. 138. 2 2  2 2 4  p. 23.  Western Lumberman, v o l . 12, (October, 1915),  100 i n the supply of 'goods for the daily wants of a population which had been increasing rapidly i n numbers and purchasing power.  The culmination was reached i n the breaking out  of the F i r s t Great War i n 1914, following which the demand from Ontario and the Prairies for lumber dwindled to the vanishing point.  almost  Production f e l l to sixty percent  of  the 1910 figure, and exports skidded to f i v e percent  of  the cut. Now,  under the exceptional circumstances of a  depression i n the industry, B r i t i s h 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  tariff,  which e f f e c t i v e l y 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 B r i t i s h Columbia mills suspended operations, and this i n turn, brought about the closing down of many of  the logging camps.  employment.  Thousands of men were thrown out of  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 P r a i r i e market.  CHAPTER I I I THE PANAMA CANAL AND THE CARGO TRADE  (1915-1940)  B e f o r e the outbreak o f t h e f i r s t . World War, B r i t i s h Columbia's overseas t r a d e was p i t i f u l l y  small.  There were s e v e r a l reasons f o r t h i s u n f o r t u n a t e s i t u a t i o n : the p r o v i n c e enjoyed o n l y 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 t r a d e - a s s o c i a t i o n , and n e g l e c t i n g t o t r a v e l , t h e y had o n l y a l i m i t e d f i e l d o f v i s i o n upon w h i c h t o draw; and, most i m p o r t a n t of a l l , b e f o r e the opening of t h e Panama C a n a l , B r i t i s h Columbia remained g e o g r a p h i c a l l y i s o l a t e d from t h e c h i e f European markets and from t h e 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 t o the l e a d e r s of the lumber i n d u s t r y . R e a l i z i n g t h a t t h e P r a i r i e markets would be unresponsive f o r some time t o come, l e a d i n g m i l l m e n began t o s e r i o u s l y i n v e s t i g a t e t h e f e a s i b i l i t y of expanding the cargo t r a d e as a means of g a i n i n g r e l i e f from the economic d e p r e s s i o n .  O f f i c i a l figures indicated that  the shipments made by B r i t i s h Columbia m i l l s t o f o r e i g n c o u n t r i e s had f a l l e n almost y e a r l y s i n c e 1900, w h i l e tremendous  i n c r e a s e s were r e c o r d e d by t h e m i l l s of  Washington and Oregon.  F o r example, American shipments  t o 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 — feet i n 1902  had i n c r e a s e d from 6 1 , 3 0 0 , 2 9 3  to 2 0 3 , 0 5 3 , 1 7 2 f e e t i n 1914, or over 3 7 0  per c e n t ; w h i l e 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 t h a t market i n 1 9 0 2 t o o n l y t h r e e per cent i n 1 9 1 3 ^ 2 2  I n 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 e x p o r t t r a d e . B y 1 9 1 3 t h i s share had dwindled t o 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 t r o u b l e w i t h us," admitted a l e a d i n g m i l l m a n , " i s t h a t we have been going through boom times where i t d i d not take much e x e r t i o n t o d i s p o s e of our p r o d u c t . "  2 2 8  I t became c l e a r t h a t a determined p o l i c y of opening up world-wide markets f o r the lumber p r o d u c t s of the p r o v i n c e was e s s e n t i a l not o n l y f o r the s a l v a t i o n of the i n d u s t r y , but t o the economic w e l l - b e i n g of the whole p r o v i n c e . Businessmen bombarded the Canadian government f o r a i d . " I t h i n k 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, t o Impress upon the M i n i s t e r of Trade and Commerce, the n e c e s s i t y of t r y i n g t o p r o v i d e 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 . 225 2 2 6  2 2 7  2 2 9  F o r t u n a t e l y , the opening of  Western Lumberman, v o l . 1 3 ,  (September, 1 9 1 6 ) ,  Ibid., v o l . 11,  (September, 1914), p. 3 3 .  Ibid., v o l . 12,  (March, 1 9 1 5 ) , p. 1 5 .  Palmer, E. J . t o G o s n e l l , R. E., November 9, McBride Papers. 2 2 8  Palmer, E. J . t o L u g r i n , C. H., McBride Papers , > 2 2 9  p.  1914,  October 19, 1914,  103 the Panama C a n a l I n the s p r i n g of 1914, o f f e r e d the government an o p p o r t u n i t y t o s a t i s f y these demands  0  I t had been f e l t f o r some time t h a t the c a n a l would a f f o r d B r i t i s h Columbia manufacturers an almost u n a s s 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 t o the low f r e i g h t r a t e s they would enjoy as compared w i t h the charges t h a t would have t o be imposed by s h i p s of American r e g i s t e r .  B e f o r e the  opening of the c a n a l t h e r e was a s m a l l a l l - w a t e r movement from the P a c i f i c Coast s t a t e s and B r i t i s h Columbia t o New England and other A t l a n t i c Coast s t a t e s , but on the whole the l o n g t r i p around the Horn made i t c o m m e r c i a l l y impracticable.230  S a i l i n g v e s s e l s needed t h r e e or f o u r  months f o r the journey, w h i l e the steamer, f o l l o w i n g the same p a t h , contended w i t h a tremendous c o a l  consumption  which was not o n l y c o s t l y but a l s o decreased i t s cargo capacity.  By r e d u c i n g the mileage by more than h a l f ,  the Panama C a n a l lowered the c o s t 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 a b l e t o t r a n s p o r t Coast lumber t o E a s t e r n p o r t s a t a r a t e t h a t the r a i l r o a d s were e n t i r e l y unable t o meet.  D e s p i t e these disadvantages, both steam and s a i l i n g c r a f t were a b l e t o 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 a b l e , however, t o make t h i s r a t e low enough t o o b t a i n much of the custom or t o make i t p o s s i b l e t o ship t o A t l a n t i c coast p o r t s and r e c o n s i g n t o the I n t e r i o r . Western Lumberman, v o l . 6, (November, 1909), p. 26. 2 3 0  104 The Canadian government, i n response to the pressure of the Coast lumbermen, investigated the p o s s i b i l i t y of marketing B r i t i s h Columbia lumber i n a large way i n the United Kingdom and i n Europe.  Early i n  1914 S i r George Foster, the Minister of Trade and Commerce appointed Mr, H, R. MacMillan, the young Chief Forester of B r i t i s h Columbia, to the post of Special Trade Commissioner and directed him to tour Europe and Asia on behalf of the lumber interests of B r i t i s h Columbia, When Mr. MacMillan reached the United Kingdom at the end of A p r i l , the lack of shipping was becoming acute, and the lumber trade between the P a c i f i c Coast and Europe was suffering seriously.  Moreover, he found  that American interests were very strongly represented i n the B r i t i s h timber trade while B r i t i s h 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 B r i t i s h Columbia m i l l s . In fact, so l i t t l e was the existence of a lumbering industry i n B r i t i s h Columbia recognized by English buyers that the Imperial Government i t s e l f through the War Office and other large departments, was as a matter of course purchasing much P a c i f i c Coast timber  105 through American agents.231 of the Coast was  As the export lumber t r a d e  c e n t r e d i n the hands of brokers i n San  F r a n c 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  t o the B r i t i s h Columbia i n d u s t r y .  Mr. M a c M i l l a n , w i t h the a s s i s t a n c e of S i r R i c h a r d McBride, the premier  of the p r o v i n c e , who was  then i n  London, drew the a t t e n t i o n of the I m p e r i a l 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 p o i n t e d out t h a t 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 t h a t the B r i t i s h Government might n e e d .  The B r i t i s h a u t h o r i t i e s met  2 3 2  these r e p r e s e n t a t i o n s most c o - o p e r a t i v e l y , and s i n c e the t r a d e was being r i g i d l y c o n t r o l l e d because of the  war  3! M a c M i l l a n d e s c r i b e d 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 m i s s i o n : "We here i n B r i t i s h Columbia are wont to b e l i e v e t h a t B r i t i s h Columbia lumber i s the standard of the w o r l d , t h a t everywhere t h i s p r o v i n c e ' s name i s known. I t w i l l doubtless be a keen disappointment t o many t o l e a r n t h a t so f a r as the lumber t r a d e , a t l e a s t , i s concerned, by f a r the g r e a t p o r t i o n of our exports — I am t a l k i n g now of a n t e bellum export b u s i n e s s , f o r there has been v i r t u a l l y none s i n c e war broke out — were shipped through U n i t e d S t a t e s 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 t h a t the San F r a n c i s c o f i r m s which do the great b u l k 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 i n d i g n a n t when I saw, p r a c t i c a l l y everywhere I went t h a t the lumber, i n c l u d i n g B r i t i s h Columbia s product, i s s o l d through U n i t e d S t a t e s f i r m s . The importers of the c o u n t r i e s d i d not know t h a t any of i t came from t h i s p r o v i n c e . We have the raw m a t e r i a l s , but s a d l y l a c k o r g a n i z a t i o n t o s e l l i t t o the w o r l d . Western Lumberman, v o l . 13, (September, 1916), p. 13. 2  1  B r i t i s h Columbia, Department of Lands, F o r e s t Branch, Report. 1915, p. G7. 2 3 2  106 c r i s i s , they were a b l e t o announce t h a t I m p e r i a l purchases of P a c i f i c Coast timber would be r e s t r i c t e d t o B r i t i s h Columbia m i l l s , and t h a t orders would be p l a c e d the p r o v i n c i a l government.  through  Mr. M a c M i l l a n was a b l e t o  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 .  In  a d d i t i o n , he obtained from the P r i z e D i s p o s a l Committee the l o a n f o r l u m b e r - c a r r y i n g purposes, o f the p r i z e v e s s e l Grahamland, a t the F a l k l a n d I s l e s .  I t was  subsequently  c h a r t e r e d t o the Cameron Lumber Company of Chemainus. 233 With t h i s b e g i n n i n g , 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 d u r i n g the summer the F o r e s t Branch was v e r y a c t i v e l y engaged i n the h a n d l i n g of the b u s i n e s s .  This promising  new  s t a r t of the export t r a d e w i t h the U n i t e d Kingdom  was  suddenly s t i f l e d , however, by the d i s a s t r o u s s l i d e  i n the G a i l l a r d Cut of the Panama C a n a l i n 191?,  and  a l t h o u g h an attempt was made t o c a r r y on by the c o s t l y means of a combined r a i l h a u l and A t l a n t i c shipment via  S t . John, f u r t h e r orders were not obtained,, D e s p i t e t h i s setback, the B r i t i s h Columbia i n d u s t r y  i n the l o n g r u n p r o f i t e d c o n s i d e r a b l y from the work of the S p e c i a l Commissioner.  2  33  I n the f i r s t p l a c e , he made  Western Lumberman, v o l . 12,  (August, 1915), p.  15  107 the timber b r o k e r s 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 i n d u s t r y to the e f f e c t i v e n e s s 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 h i m s e l f 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 c o n d i t i o n s . was  That awareness  d e s t i n e d t o markedly a f f e c t the h i s t o r y of the lumber 1920,  industry after  Concurrent w i t h t h i s attempt t o break i n t o the U n i t e d Kingdom market I n 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 t r a d e 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  with  slide,  however, ended t h a t s u c c e s s f u l endeavour too, and when the c a n a l was  reopened i n May,  1916,  the i n c r e a s i n g l y s  234  s t r a i n e d war  conditions ^  l e f t f a r fewer v e s s e l s a v a i l a b l e  f o r lumber t r a n s p o r t . F o r t u n a t e l y , B r i t i s h Columbia lumbermen r e c o g n i z e d the temporary n a t u r e of these setbacks,  and d i d not  f o r g e t 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 w a i t e d f o r the day when s h i p p i n g would no longer c o n t r o l l e d by war new  be  needs and the c a n a l would open a whole  ocean of markets t o them.  2 3 4  Western Lumberman, v o l . 13,  (May,  1 9 1 6 ) , p.  15.  108 Apart from s e c u r i n g orders and s h i p p i n g from B r i t i s h Government departments,  Mr. M a c M i l l a n i n v e s t i g a t e d  the g e n e r a l market f o r Canadian timber i n the U n i t e d Kingdom, H o l l a n d , F r a n c e , South A f r i c a , and I n d i a , and then proceeded  t o A u s t r a l i a , New Zealand and C h i n a .  The  circumstances o f war rendered M a c M i l l a n ' s m i s s i o n s u c c e s s f u l o n l y t o a degree; i t s consequences were n o t to be r e a l l y f e l t u n t i l a f t e r the c e s s a t i o n of h o s t i l i t i e s , when the p r o v i n c e ' s f i r s t c h i e f f o r e s t e r r e s i g n e d from the government s e r v i c e I n order t o put i n t o p r a c t i c e some of the p l a n s which c r y s t a l l i z e d on h i s w o r l d t o u r . I n the meantime s h i p p i n g grew ever more s c a r c e 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 e x p o r t t r a d e 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 s u b j e c t e d t o ever more f r e q u e n t c r i t i c i s m a t home.  Many millmen v i g o r o u s l y claimed  t h a t the p r o v i n c e ' s export I n d u s t r y 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 t o I n c r e a s e t h e i r own p r o f i t s .  A prominent  citizen  summed up the b e l i e f i n t h i s way: There i s no q u e s t i o n as t o why B r i t i s h Columbia has not had i t s f a i r share of the export t r a d e , the reason i s obvious; B r i t i s h Columbia has had t o buy i t s f r e i g h t through i t s competitors i n the U n i t e d S t a t e s . A l a r g e p r o p o r t i o n of  109 the* s t a n d i n g 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 s t a n d i n g timber has heavy c a 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 s t a n d i n g timber would n a t u r a l l y use a l l t h e i r endeavors t o c u t t h e i r American timber i n p r e f e r e n c e t o t h e i r B r i t i s h Columbia t i m b e r . The l e a d i n g 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 t h e ear of t h e government, and the Boards of Trade, r e p r e s e n t m i l l s t h a t a r e 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 g r e a t e s t p r o p o r t i o n of the s m a l l export t r a d e t h a t B r i t i s h Columbia i s allowed t o have. Most of the B r i t i s h p o w n e d lumber m i l l s a r e c l o s e d down. 3? 2  The Western Lumberman, a p a r t i c u l a r l y outspoken Canadian t r a d e j o u r n a l , doubted t h a t 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  full  share of r e c o g n i t i o n , r e f e r r i n g t o " t h e pregnant f a c t t h a t the c o t e r i e of San F r a n c i s c o b r o k e r s , through c h a r t e r s , had o n l y a s h o r t time b e f o r e , g i v e n out the i n f o r m a t i o n t h a t '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 j o u r n a l  continued, " t h i s was an odd blunder f o r them t o f a l l i n t o , . seeing t h a t n i n e t e e n or twenty of the w a t e r f r o n t m i l l s of the p r o v i n c e have membership i n the P a c i f i c I n s p e c t i o n Bureau, f o r the s o l e reason t h a t they a r e equipped f o r the export b u s i n e s s , and make shipments when o p p o r t u n i t y o f f e r s or t h e s t a t e of the market p e r m i t s .  L e t t e r of Henry Pearce, Western Lumberman, 13, (May, 1916), p. 29. :>J  vol.  We have seen  110 no c o r r e c t i o n of the m i s - s t a t e m e n t . " 3 6 2  T h i s 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 i n d u s t r y , was due p a r t l y to h i s t o r i c a l c o n d i t i o n s 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 t o t h e i r own l a c k of foresight.  The lumber i n d u s 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 v e r y s h o r t time grew i n t o an I n d u s t r y of much more than l o c a l importance. 37 2  By 1870  enterprising  C a l i f o r n i a n businessmen had b u i l t up a h e a l t h y export t r a d e i n redwood and p i n e , which t h e y shipped t o almost every n a t i o n i n the P a c i f i c B a s i n .  Even V i c t o r i a  itself  ordered l a 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 p r e t e n t i o u s homes.  T h i s t r a d e centred i t s a c t i v i t y i n San F r a n c i s 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 F r a n c i s c o began t o extend t h e i r i n t e r e s t t o 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 o p e r a t i o n s were e s t a b l i s h e d 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 i n d u s t r y of Washington was o l d e r than t h a t of B r i t i s h Columbia.  Western Lumberman, v o l . 12,  (June, 1915)> P. 14.  37 P a l a i s , H., and R o b e r t s , E., "The h i s t o r y of the lumber i n d u s t r y 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. 2  1.  Ill Some o f the p i o n e e r f i r m s e s t a b l i s h e d 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 t r a d e , whether c o a s t - w i s e or export.23°"  ^  e  commercial  p a r t of t h i s v a s t i n d u s t r y remained overwhelmingly c e n t r e d i n San F r a n c i s c o . 3 9 2  During t h i s p i o n e e r p e r i o d , the American i n d u s t r y e s t a b l i s h e d f o r e i g n connections  of v a l u e ; i t b u i l t i t s  own f l e e t s , and some San F r a n c i s c o f i r m s c o n t r o l l e d a dozen or more v e s s e l s , which, on o c c a s i o n , served i n the export t r a d e as w e l l as i n the coast t r a d e .  Ten t o twenty years  a f t e r the i n d u s t r y was w e l l e s t a b l i s h e d on Puget Sound the B r i t i s h Columbia i n d u s t r y began t o be developed. T h e r e f o r e , t h e U n i t e d S t a t e s enjoyed  the advantage over  B r i t i s h Columbia of being e s t a b l i s h e d e a r l i e r i n the export b u s i n e s s , and long and f r i e n d l y acquaintance i n f o r e i g n markets.  L i n e s of t r a d e thus e s t a b l i s h e d and  maintained were n o t e a s i l y  challenged.  The c a r r y i n g t r a d e remained c o n s o l i d a t e d v e r y l a r g e l y i n the hands of P a c i f i c Coast v e s s e l s c o n t r o l l e d by San F r a n c i s c o b r o k e r s .  I t was o n l y n a t u r a l t h a t  owners c h a r t e r e d more r e a d i l y , a l l t h i n g s being  equal,  w i t h f e l l o w merchants i n San F r a n c i s c o than w i t h operators i n B r i t i s h Columbia.  5  2  Papers.  C e r t a i n expenses c o u l d be avoided  Western Lumberman, v o l . 12, ( J u l y , 1 9 1 5 ) , p. 1 4 - 1 5 .  3 9 Palmer t o L u g r i n , (October 1 9 , 1914), McBride  112 by l o a d i n g i n the U n i t e d S t a t e s i n s t e a d of i n Canada. Consequently 2/6d  B r i t i s h Columbia e x p o r t e r s p a i d 1/3d  to  per thousand f e e t h i g h e r f r e i g h t f o r a v e s s e l t o  l o a d i n B r i t i s h Columbia than the same v e s s e l would accept t o l o a d i n Washington or O r e g o n .  2 4 0  Needless  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 s e r i o u s  to  handicap  to the B r i t i s h Columbia industry,, T h i s u n f o r t u n a t e p o s i t i o n i n 1914- was by the Hon.  described  W. R. Ross, M i n i s t e r of Lands, i n t h i s  way:  We can o n l y d e a l w i t h the s i s t e r Dominions of the Empire through'the agency, and by the f a v o r of American b r o k e r s , American lumber buyers, American s h i p p i n g companies. I speak about our cousins a c r o s s the l i n e i n no u n f r i e n d l y s p i r i t . T h e i r c o m p e t i t i o n w i t h us i s s t r a i g h t f o r w a r d b u s i n e s s . But n a t u r a l l y , they e x e r c i s e 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 b u s i n e s s t o t h e i r own people, and t h e r e f o r e the s h i p p i n g and s e l l i n g monopoly they have e s t a b l i s h e d i n the export lumber b u s i n e s s , has become a l i d t h a t s t i f l e s the export t r a d e of t h i s p r o v i n c e . When orders from other p o r t i o n s 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 U n i t e d Kingdom —• are subc o n t r a c t e d to B r i t i s h Columbia m i l l s by San F r a n c i s c o b r o k e r s , i n s t e a d of being r e c e i v e d d i r e c t ; when other orders from the Empire are f i l l e d on the American s i d e w i t h o u t our even h e a r i n g 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 t e n d e r i n g on a few o r d e r s , 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 s h i p — w e l l , i n such untoward circumstances, I t i s time f o r us t o get busy and do something d r a s t i c to secure t h i s t r a d e t h a t r i g h t f u l l y belongs to u s . 2 4 1  2 4 0  241  Palmer to L u g r i n , (October 19, Western Lumberman, v o l . 12,  1914), McBride Papers  ( A p r i l , 1915), p.  22.  113 There was' a l s o t h e problem t h a t s e v e r a l of t h e i m p o r t e r s 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 n o t branch e s t a b l i s h m e n t s o f , those i n San F r a n c i s c o .  2 4 2  None of the Canadian m i l l s ,  w i t h the s i n g l e o u t s t a n d i n g e x c e p t i o n o f t h e H a s t i n g s had any r e a l knowledge of t h e export t r a d e .  Mill,  That m i l l  had i t s own agents i n A u s t r a l i a and the U n i t e d K i n g d o m .  243  But the f a u l t o f B r i t i s h Columbia lumbermen, o r 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 s h o r t - s i g h t e d p o l i c y o f r e f u s i n g t o f a c e these problems f o r two decades, thereby a l l o w i n g the export market t o go by d e f a u l t i n f a v o r o f the more i n s i s t e n t and t e m p o r a r i l y more p r o f i t a b l e  trade of the P r a i r i e s .  During t h e same p e r i o d t h e r e was no such e x t r a o r d i n a r y demand made on American Coast m i l l s by the American P r a i r i e s , so the lumbermen o f Washington and Oregon, i n a position  t o e x p o r t , were a b l e t o step i n and take over  much of t h e t r a d e which B r i t i s h Columbia m i l l s were n e g l e c t i n g i n f a v o r of t h e home market. Two s o l u t i o n s o f f e r e d themselves  t o t h e problem:  the c l o s e c o - o p e r a t i o n of the B r i t i s h Columbia millmen amongst themselves  t o e s t a b l i s h t r a d e l i n e s , and t h e  e s t a b l i s h m e n t of government-subsidized  2 4 2  2 4  p. 100.  shipping.  Palmer t o L u g r i n , October 19, 1914, McBride Papers.  3 west Coast Lumberman, v o l . 73, (September, 1946),  114 E. J . Palmer, one of the few millmen who  a l l through  the p r e v i o u s p e r i o d of g r e a t 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 h e a l t h y cargo t r a d e , suggested  the f i r s t s o l u t i o n :  "My  i d e a i s , t h a t the  B r i t i s h Columhia lumbermen should get t o g e t h e r and  sell  through one agency, each m i l l b i n d i n g themselves t o 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 b r o k e r s , e v e r y t h i n g i n excess  of the amount r e q u i r e d f o r a c t u a l expenses, t o be expended i n the e x t e n s i o n of our markets, i f p o s s i b l e , i n conj u n c t i o n w i t h the Government." " 24  4  Mr. M a c M i l l a n , r e p o r t i n g t o S i r R i c h a r d  McBride,  on h i s w o r l d t o u r , o f f e r e d a d d i t i o n a l reasons f o r g i v i n g Palmer's s u g g e s t i o n s e r i o u s study:  "This course of  business i s u n n e c e s s a r i l y i n d i r e c t , and exposes the Canadian producer b o t h t o paying two commissions on p r o f i t s , t o making h i s q u o t a t i o n s known t o h i s c o m p e t i t o r s , and f u r t h e r prevents him from keeping i n touch w i t h the London market. f i r producers  I t i s v e r y a d v i s a b l e t h a t Canadian Douglas should c o n s i d e r 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 b u s i n e s s  connections  w i t h s t r o n g timber agents here, as has been done by American s h i p p e r s . " 5 2 4  Meanwhile, the p r o v i n c i a l government  244 Palmer t o G o s n e l l , (November 2, 1 9 1 4 ) , McBride Papers. 2 4  5 M a c M i l l a n t o McBride, 1915?  McBride Papers.  115 met the demand f o r s u b s i d i z e d s h i p p i n g to  r  ° by p r o v i d i n g a i d  the aggregate amount of two m i l l i o n d o l l a r s t o the  s h i p p i n g and the s h i p b u i l d i n g I n d u s t r i e s of the p r o v i n c e . The b i l l j ^ ' ^  a  which Premier Bowser i n t r o d u c e d i n the p r o -  v i n c i a l l e g i s l a t u r e on May 3?  1916, p r o v i d e d f o r the a p p o i n t -  ment of a board t o be known as the S h i p p i n g C r e d i t  Commission.  I t was composed of a s u p e r i n t e n d e n t 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 t r a n s p o r t by government was not new t o B r i t i s h Columbia. I n March, 1907, the governments of Canada and Mexico began t o j o i n t l y s u b s i d i z e a b i - m o n t h l y 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, R e p o r t s , Government P r i n t i n g O f f i c e , Washington, (January, 1907) ,"~p. 110.) These s h i p s c a r r i e d c o n s i d e r a b l e shipments of g r a i n and lumber t o Mexican p o r t s . The g r a i n went from a l b e r t a to Vancouver by r a i l , by steamer from Vancouver t o S a l i n a C r u z , and then over the Tahuantepec R a i l r o a d t o p o r t s on the G u l f of Mexico where i t was r e - s h i p p e d w i t h the lumber by steamer t o England. T h i s r o u t e was cheaper than the r a i l r o u t e from A l b e r t a t o S t . John and then by steamer t o L i v e r p o o l , ( i b i d . , (May, 1909), p. 40.) ,The i r o n s h i p s 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 s u b s i d y was granted o n l y on the c o n d i t i o n t h a t no c a l l s were made a t American p o r t s f o r the purpose of o b t a i n i n g b u s i n e s s or s u p p l i e s . ( I b i d . , (May, 1907), p. U 9 . ) The company l a s t e d l e s s than a year b e f o r e i t was taken over by the B r i t i s h Coast Steamship Company, an Americanc 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 w i t h the government, i t continued the s e r v i c e between Vancouver and Mexico, but added Puget Sound lumber towns t o i t s p o r t s 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 r e a s o n a b l e to assume, however, t h a t c o m p e t i t o r s 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 c e r e a l s i n American p o r t s . A f t e r 1910, the company ceased to be a f a c t o r I n the p r o v i n c e ' s e x p o r t t r a d e . 246 a B r i t i s h Columbia, S t a t u t e s , B i l l No. 43, 1916, "An a c t r e s p e c t i n g s h i p p i n g 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 i n d u s t r y i n the P r o v i n c e of B r i t i s h Columbia."  body c o r p o r a t e , which had complete c o n t r o l of the administration of t h e a c t , and the r e s p o n s i b i l i t y f o r c a r r y i n g out i t s p r o v i s i o n s .  The annual subsidy was  p a i d o n l y t o v e s s e l s which remained i n the continuous s e r v i c e of B r i t i s h Columbia i n d u s t r y 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 t o 9 AH  the province.'  -  ' Under the b i l l ' s p r o v i s i o n s i f a  b u i l d e r could n o t borrow money elsewhere, he could o b t a i n f i f t y - f i v e p e r cent of h i s o u t l a y from the p r o vincial  treasury.  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 mber Company L i m i t e d , and the Genoa Bay u  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 , L i m i t e d .  "  Their  f i r s t s h i p , c h r i s t e n e d Margaret Haney was launched, on F e b r u a r y 3 , 191/.  She was i n s t a n t l y c h a r t e r e d  cargo o f B r i t i s h Columbia lumber t o A u s t r a l i a , a f t e r the launching  to carry a Immediately  of the Margaret Haney, the k e e l of t h e  West_ern Lumberman, v o l . 13, (June, 1916), p. 2 6 . 2  4  8  2 4 9  I b i d . , v o l . 13, (October, 1916), p. 26. I b i d . , v o l . 10, (October, 1917), p. 78.  117  Malahat was l a i d ' down.  I n r a p i d s u c c e s s i o n the s h i p s ,  Laura Whalen and Esgulmalt were launched and other k e e l s were l a i d i n t h e i r p l a c e s . 5 ° 2  On J u l y 1, 1 9 1 7 ,  s h i p b u i l d e r , the F o u n d a t i o n Company of B r i t i s h  another Columbia,  L t d . , e s t a b l i s h e d a y a r d on the w a t e r f r o n t of V i c t o r i a ' s i n n e r harbor, immediately a d j o i n i n g the y a r d of the Cameron-Genoa Company and began the p r o d u c t i o n of additional carriers.  These v e s s e l s were u s u a l l y f i v e -  masted schooners equipped w i t h 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 c a r r y i n g lumber.  They were about  2^0 f e e t l o n g , w i t h 4 4 - f o o t beams, and 21-foot h o l d s . B u i l t a t a c o s t of $140,000, they had a l u m b e r - c a r r y i n g c a p a c i t y of 1,500,000 f e e t . ? ! 2  I n Vancouver t h e r e was even g r e a t e r a c t i v i t y i n shipbuilding.  I n the years between 1917 and 1 9 2 1 , the  s h i p y a r d s of the p r o v i n c e ' s l a r g e s t c i t y produced tons worth $ 8 8 , 0 0 0 , 0 0 0 , ? 2  2  492,000  many of them f o r the Canadian  Government's Merchant Marine, and many f o r s e r v i c e 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 t o i n t e r e s t i t s e l f i n t h i s same problem. I n 1919 i t o f f e r e d s u b s i d i e s t o v a r i o u s l i n e s  2  5°  251 2  5  2  Western Lumberman, v o l . 1 0 , Ibid., v o l . 13,  carrying  (October, 1 9 1 7 ) , p. 8 0 .  (October, 1 9 1 6 ) , p. 24.  Vancouver Sun, October 8, 1 9 3 2 , p. 4.  118  Canadian goods from West Coast p o r t s t o p o i n t s i n the O r i e n t and the South P a c i f i c .  I n t h i s way  subsidized  s h i p p i n g p l a y e d a major r o l e I n the e s t a b l i s h m e n t of an e x p o r t t r a d e , and many l i n e s were encouraged t o 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 L i n e s and the Canadian Merchant Marine L i n e s , i n a d d i t i o n t o the many s m a l l e r companies e i t h e r operated out of Vancouver or made i t a p o r t 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 f e a t u r e of a l l i n the s h i p p i n g 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 s e r v i c e s of t h e i r  8,000-ton steamships t o p r a c t i c a l l y e v e r y f o r e i g n lumber market of the w o r l d were of i n e s t i m a b l e v a l u e t o the e x p o r t lumber t r a d e . 2 5 3  The v e s s e l s 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 t r a d e on a p r e f e r e n t i a l b a s i s over any other l i n e .  I n the one month  of June, 1 9 2 1 , f o r example, these government s h i p s 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-  p o r t s t o overseas d e s t i n a t i o n s .  J  Another f a c t o r which a i d e d m a t e r i a l l y i n b r e a k i n g the s t r a n g l e h o l d which American f i r m s 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 i n d u s t r y was the changing c h a r a c t e r of the wheat-shipping l a n e s .  2?3  Western Lumberman, v o l . 1 9 ,  (March,  254- West Coast Lumberman, v o l . 40, ( J u l y P.  32.  The  1922), 15,  p.  33  1921),  119 movement of P r a i r i e g r a i n through B r i t i s h Columbia s e a p o r t s t o such o f f s h o r e markets as the U n i t e d Kingdom and the O r i e n t grew r a p i d l y a f t e r 1 9 2 1 .  The i n f l u e n c e of t h e  Panama C a n a l r o u t e i n the movement of Canadian P r a i r i e g r a i n t o 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  this  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 t h e Canadian P a c i f i c Coast p o r t s f o r g r a i n shipments.  D u r i n g the war  y e a r s , the s h o r t a g e of ocean tonnage p r e c l u d e d the use of the Panama C a n a l f o r g r a i n shipments j u s t as i t had done f o r lumber shipments, but w i t h the easing of the tonnage problem, a f t e r 1 9 1 9 , advantage c o u l d be t a k e n o f the o p p o r t u n i t y t h a t t h e Panama o f f e r e d t o c u t out the expensive r a i l h a u l between A l b e r t a p o i n t s and the Lakehead.  Another  important f a c t o r was t h e s h i f t i n the l o c a t i o n of the I n 1 9 0 7 t h e wheat-  wheat-producing a r e a s on the P r a i r i e s .  growing c e n t r e of the n a t i o n 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 a g a i n moved westward u n t i l A l b e r t a and Saskatchewan together produced n i n e t y p e r c e n t of the P r a i r i e s w h e a t . 5 5 1  2  With  every s h i f t of the g r a i n - p r o d u c i n g c e n t r e westward, i t became more f e a s i b l e t o s h i p v i a P a c i f i c p o r t s r a t h e r than v i a the long h a u l t o the Lakehead and A t l a n t i c p o r t s . The r e s u l t was t h a t between 1 9 2 1 and 1 9 2 5 t h i s volume of a n n u a l wheat shipments i n c r e a s e d from. 1 , 2 5 0 , 0 0 0 bushels t o over 5 2 , 0 0 0 , 0 0 0 b u s h e l s .  I n 1 9 2 5 , Vancouver e s t a b l i s h e d  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 c l a i m f o r a n e q u a l i z a t i o n o f the export g r a i n and f l o u r r a t e s between E a s t e r n and Western Canadian p o r t s . T h i s c l a i m , granted by the Board o f R a i l w a y Commissioners, became e f f e c t i v e on September 15, 1925? and Vancouver's f u t u r e as a g r e a t g r a i n p o r t was assured.  A gradual  i n c r e a s e i n shipments o c c u r r e d a n n u a l l y , u n t i l i n the 1927-1928 crop y e a r , over e i g h t y m i l l i o n bushels  entered  w o r l d markets through Vancouver a l o n e . The growth o f t h e g r a i n trade had a t w o - f o l d e f f e c t on the lumber i n d u s t r y :  the new tonnage used t o t r a n s p o r t  the g r a i n gave a r e a l impetus t o v a r i o u s commercial a c t i v i t i e s o f the p r o v i n c e , thereby s t i m u l a t i n g the lumber industry;  a  n  ^  }  more important, i t made a v a i l a b l e a  continuous stream o f cargo v e s s e l s t o Vancouver. o f f e r e d a v e r y g r e a t inducement f o r r e g u l a r l i n e s t o e s t a b l i s h themselves Westminster,  Grain  steamship  in. Vancouver and New  as a p a r t i a l cargo o f t h i s c e r e a l c o u l d be  depended upon f o r a g r e a t e r p a r t o f the y e a r .  I n the e a r l y  stages o f the g r a i n t r a f f i c , t h e b u l k o f shipments moved by f u l l cargoes i n tramp steamers, b u t , a f t e r 1923, r e g u l a r l i n e s and tramp steamers grew more and more 257 interested i n grain transport. 5 ° see H a n s u l d , Geo., "How the lumber t r a d e i s a f f e c t e d by the g r a i n t r a d e of the P a c i f i c Northwest", Western Lumberman, v o l . 26, ( J u l y , 1929), p. 12. 2  257 J  Loc.cit.  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 p a r t i n b r i n g i n g about lower r a t e s f o r shippers of lumber and other k i n d s of cargo, f o r s h i p owners c o u l d complete t h e i r cargoes w i t h bulk g r a i n a t any season o f the year.  The i d e a l cargo f o r a tramp steamer  was two thousand t o t h r e e thousand tons of b u l k wheat i n the lower h o l d s , completed w i t h lumber between decks, and a deck l o a d of lumber, timbers, or l o g s .  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 t o the i n d u s t r y a c o n t i n u a l supply of empty box cars t o c a r r y eastbound lumber shipments:  an advantage  which was accepted w i t h o u t the g r a t i t u d e t h a t i t would have e l i c i t e d two decades  earlier.  Concurrent w i t h the establishment  of a c o n t i n u a l  supply o f s h i p s was the o r g a n i z a t i o n of home-controlled s e l l i n g o r g a n i z a t i o n s , w h i c h 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 e x p o r t e r s .  The f i r s t such  o r g a n i z a t i o n was e s t a b l i s h e d e a r l y i n 1914.  I t was the  Canadian Trading Co., L t d . , of Vancouver, an o f f s h o o t of the D o u g l a s - F i r Francisco.  E x p l o i t a t i o n & Export Co., of San  I t s agents o f f e r e d t o buy on a y e a r l y c o n t r a c t  a l l the lumber the B r i t i s h Columbia m i l l s were prepared t o export.  They o f f e r e d t o pay the market p r i c e as long  as i t was not i n excess o f the p r i c e then being p a i d by  122 the Douglas F i r E x p l o i t a t i o n & E x p o r t Co.  The V i c t o r i a  Lumber & M a n u f a c t u r i n g Co. L i m i t e d of Chemainus; the Cameron Lumber Co. L i m i t e d of V i c t o r i a ; the Genoa BayLumber Co. L i m i t e d of Genoa Bay; the Canadian Western Lumber Co. L i m i t e d of F r a s e r M i l l s ; and the Vancouver Lumber Co. L i m i t e d of Vancouver accepted the o f f e r ; other m i l l - o w n e r s , however, p r e f e r r e d t o e i t h e r l o o k a f t e r t h e i r own e x p o r t b u s i n e s s or t o c o n t i n u e t o g i v e t h e i r e n t i r e a t t e n t i o n t o the P r a i r i e and E a s t e r n markets.258 failure.  T h i s p r o m i s i n g s t a r t was foredoomed t o  The war and t h e consequent shortage of tonnage  d i s t u r b e d t h e arrangement and the l i t t l e tonnage a v a i l a b l e to the lumber t r a d e 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 t o 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 c o u l d . 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 a t c o - o p e r a t i o n o c c u r r e d 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 w i t h an o p p o r t u n i t y t h a t was u l t i m a t e l y t o r e v o l u t i o n i z e the i n d u s t r y and change i t s whole marketing a t t i t u d e .  The  r a i l w a y s o f 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 , r e q u i r e d the q u i c k d e l i v e r y of l a r g e  2  p. 41,  5  8  Western Lumberman, v o l . 1 5 ,  (December,  1918),  123 q u a n t i t i e s o f 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  t o s u p p l y such an order w i t h i n the time l i m i t and S i r George r e f u s e d t o d i v i d e t h e order up and make separate c o n t r a c t s w i t h as many d i f f e r e n t m i l l s .  S e v e r a l con-  f e r e n c e s 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 a d o p t i o n of a p l a n t o o r g a n i z e a c o r p o r a t i o n t o a c t as s a l e s agent f o r a l l the manufacturers  taken i n as s h a r e h o l d e r s .  No person o r company was admitted as a shareholder u n l e s s he was a c t i v e l y engaged i n lumber manufacturing.  The  f o r m a t i o n o f the A s s o c i a t e d Timber E x p o r t e r s of B r i t i s h Columbia L i m i t e d was completed on March 27, 1919. T h i s o r g a n i z a t i o n , accepted an order f o r seventy m i l l i o n f e e t o f r a i l r o a d t i e s f o r t h e 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 t o the purchasers and t o t h e m i l l s concerned.  The s u c c e s s f u l e x e c u t i o n of t h i s o r d e r ,  more than any other s i n g l e f a c t o r , served t o g i v e s e l f assurance  t o the i n d u s t r y i n i t s d e t e r m i n a t i o n t o t r a d e  i n t h e markets of the w o r l d as an i n d u s t r y independent of i t s American c o u n t e r p a r t .  The o r g a n i z a t i o n continued  t h e r e a f t e r t o handle orders which would have been beyond the c a p a c i t y of any one m i l l t o f i l l .  2  By f a r the l a r g e r  59 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  t r a d e , the o r g a n i z a t i o n expanded and sought more markets i n which t o s e l l  its  product.  I n a very few y e a r s ,  s a l e s were being made t o 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 s a l e s expansion the m i l l s  which owned A s s o c i a t e d Timber E x p o r t e r s of B. C., L i m i t e d , o r g a n i z e d Seaboard Lumber S a l e s i n 1 9 2 8 .  I t was  formed  to o r g a n i z e water shipments to the A t l a n t i c Coast of the U n i t e d S t a t e s along w i t h the Marine S h i p p i n g Co., L i m i t e d , which was lumber. ^ 2  t o p r o v i d e f r e i g h t f o r the movement of the 0  In 1 9 3 7 the A s s o c i a t e d Timber E x p o r t e r s and Seaboard Lumber S a l e s Co. amalgamated under the Seaboard name.  By  1 9 5 2 , when the lumber d i v i s i o n of the g i a n t Alaska P i n e and. C e l l u l o s e L t d . , j o i n e d the o r g a n i z a t i o n , i t was,  with  the p o s s i b l e e x c e p t i o n of the R u s s i a n government-owned timber agency, the l a r g e s t lumber export s a l e s and s h i p p i n g 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  feet.  B r i t i s h Columbia Lumberman, v o l . 2 3 , 1939),  p.  5T.  261  I b i d . , v o l . 49,  (March, 1952), p.  76.  (September,  125 The other g r e a t e x p o r t i n g f i r m e s t a b l i s h e d i n the p e r i o d was  t h a t of H. R. M a c M i l l a n .  I n 1916,  Mr.  M a c M i l l a n l e f t the s e r v i c e of the Canadian government t o become A s s i s t a n t Manager of the V i c t o r i a Lumber Manuf a c t u r i n g Company.  Then, encouraged by the c o - o p e r a t i o n  of Montague Meyers, one of England's best-known timber buyers, he founded h i s own f i r m , the H. R. E x p o r t Company, i n V a n c o u v e r . ^ 2  2  MacMillan  M a c M i l l a n and Meyers  soon d i s c o v e r e d t h a t the f i v e most s u b s t a n t i a l importers i n the U n i t e d Kingdom r e f u s e d to r e c o g n i z e them.  They,  embarked, t h e r e f o r e , 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 U n i t e d Kingdom who would buy.  After that,  the M a c M i l l a n company r a p i d l y became a l e a d i n g f a c t o r i n the export t r a d e .  I n one perhaps r e p r e s e n t a t i v e , seven-  day p e r i o d i n September, 1921,  i t r e c e i v e d 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 A d m i r a l t y S h i p y a r d s , 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. M a c M i l l a n Export Company b u i l t up a l u c r a t i v e t r a d e , w i t h as many as f i f t y - o n e s h i p s under c h a r t e r a t one time to i t s s u b s i d i a r y , the Canadian T r a n s p o r t Company.  "West Coast g i a n t " , Saturday N i g h t , v o l . 69, (February 18, 1956), p. 37.  126  The f i r s t " market s e r i o u s l y c o n s i d e r e d 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 b u s i n e s s i n the e a r l y days of Stamp and the H a s t i n g s M i l l .  I n 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, 265  but the p r o v i n c e ' s o b s e s s i o n w i t h the P r a i r i e market had caused i t s share t o dwindle t o t h r e e per cent by 1914. for  A u s t r a l i a now became a h i g h l y p r i z e d market,  i n a d d i t i o n t o her t r a d i t i o n a l consumption of l a r g e  q u a n t i t i e s of B a l t i c t i m b e r , she was buying v e r y l a r g e shipments of timber from C a l i f o r n i a , Oregon and  Washington.  American e x p o r t i n g companies were i n almost comp l e t e p o s s e s s i o n 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 t o d i s l o d g e them.  The  f o r m a t i o n of Canadian t r a d i n g 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. M a c M i l l a n p o i n t e d out,  Canadian e x p o r t e r s operated a t a disadvantage as  l o n g 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 c o m p e t i t o r s . A c c o r d i n g l y the l o c a l i n d u s t r y s e t 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. 42 266  . ,  Lft.c^®it.  127  government-subsidized s h i p p i n g and independent won  almost immediate r e t u r n s .  marketing  W i t h i n f o u r years  local  m i l l s were s u p p l y i n g from t h i r t y per cent to f o r t y - t w o per cent of A u s t r a l i a ' s demands of Douglas-  and  had d e p r i v e d 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 s h i p p i n g routes w i t h A u s t r a l i a t h a t the Canadian government decided t h a t i t s s u b s i d i z a t i o n of t r a n s p o r t to A u s t r a l i a was no longer e s s e n t i a l .  It  c a n c e l l e d i t s s u b s i d y w i t h d i s a s t r o u s 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 r e g i o n f e l l i n the next f o u r years  to  seventeen per cent, t h i r t e e n per cent, f i f t e e n per and t h i r t e e n per The  cento ^ 2  cent  8  c h i e f d i f f i c u l t y before the e x p o r t e r of  B r i t i s h Columbia lumber to A u s t r a l i a was r e t u r n cargoes.  B a l t i c lumber was  the l a c k of  sold i n Australia at  a p r i c e lower than B r i t i s h Columbia's d e s p i t e the longer d i s t a n c e 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 coal  from England to the B a l t i c p r o v i n c e s , lumber from the B a l t i c t o A u s t r a l i a , and r e t u r n i n g ^ w i t h meat and wool 2  2 6 7  2 6 8  2 6 9  Timberman, v o l . 3 0 , I b i d . , p.  24.  I b i d . , p. 2 6 .  (December, 1928), p.  26.  128 for  the U n i t e d Kingdom.  Only a p r e f e r e n t i a l  tarrif  or a s h i p subsidy would a l l o w B r i t i s h Columbia t o 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 t r a d e pattern. H. R. M a c M i l l a n took a l e a d i n g p a r t 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, h i s argument, being t h a t the l a c k o f a d i r e c t f r e i g h t s e r v i c e between Canada and A u s t r a l i a , was once a g a i n d r i v i n g the lumber t r a d e w i t h A u s t r a l i a i n t o the hands o f the American producers,  who could compete w i t h the B a l t i c  industry. ?0 2  He p o i n t e d out t h a t t h e u n i t e d S t a t e s government s u b s i d i z e d v a r i o u s American t r a n s - P a c i f i c s h i p p i n g s e r v i c e s t o the e x t e n t o f more than f i v e m i l l i o n d o l l a r s a year, and t h a t t h a t made c o m p e t i t i o n beyond t h e 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 t h e House o f Commons passed an estimate of e i g h t hundred thousand d o l l a r s t o s u b s i d i z e a l u m b e r - c a r r y i n g steamship s e r v i c e from B r i t i s h Columbia p o r t s t o A u s t r a l i a , and s e v e r a l coast s h i p p i n g companies, n o t a b l y t h e H. R. M a c M i l l a n Export Co. f i l e d b i d s f o r the c o n t r a c t .  2 7 1  F i n d i n g h i s b i d s u c c e s s f u l , M a c M i l l a n formed the B r i t i s h C o l u m b i a - A u s t r a l i a S h i p p i n g Company, which operated i n  2 7 0  2 7 1  Western Lumberman, v o l . 16, (January, 1919), p. 42. Timberman, v o l . 3, (January, 1929), p. 137.  129 c o n j u n c t i o n with' the H. R. M a c M i l l a n Export Company. They r e c e i v e d a f e d e r a l s u b s i d y of t e n thousand a cargo. ? 2  2  dollars  The o n l y other subsidy p a i d by the Canadian  government on the P a c i f i c Coast was  t h a t made to the  C a n a d i a n - A u s t r a l i a R o y a l M a i l L i n e , which r e c e i v e d $115?000 a year.  T h i s company, however, anxious to earn  the maximum p r o f i t , c a t e r e d almost e x c l u s i v e l y t o and g e n e r a l cargo, and i n 1928  passengers  carried 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 c h o i c e upon which  exporters set t h e i r s i g h t s .  local  That n a t i o n was no newcomer  t o the l o c a l market, having o c c a s i o n a l l y p l a c e d l a r g e orders I n the p r o v i n c e s i n c e the t u r n of the c e n t u r y when the Canadian P a c i f i c Lumber Company cut l a r g e 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 s t o c k f o r the Manchurian R a i l w a y . ? " 2  4  I n 1920,  t r a d e channels w i t h  Japan were s t i l l of a v e r y minor nature as the war d i s r u p t e d the normal a c t i v i t y and Japan was now  had  going-  through the severe post-war economic d e p r e s s i o n t h a t a f f e c t e d a l a r g e p a r t of the w o r l d . The p i c t u r e , however, was suddenly and changed, by one of the worst earthquakes  2 7 2  2  ?3  274  p.  13.  "  Tlmberman, v o l . 3 ,  completely  i n the h i s t o r y of  (January, 1929), p.  137.  Loc.cit. Lumberman and C o n t r a c t o r , v o l . 4, ( J u l y , 1907),  130  the n a t i o n .  The' earthquake, which occurred on September 1,  1923j was f o l l o w e d by a t i d a l wave and by f i r e which a l l but c o m p l e t e l y d e s t r o y e d the c i t i e s of Tokyo and Yokohama. I t was  e s t i m a t e d t h a t almost 400,000 houses were d e s t r o y e d  i n these two c i t i e s a l o n e , and t h a t 1,382,310,000 f e e t of lumber would be needed to r e b u i l d them.  Unable t o buy  more than h a l f of her requirements i n the American market, Japan turned more than she would have o t h e r w i s e done t o B r i t i s h Columbia's  m i l l s . A l m o s t a t one l e a p Japan  became one of the Indus t r y ' s most important buying over a b i l l i o n  f e e t between 1924 and  customers, 1926.  T h i s enormous demand sent p r i c e s up t o near wartime h e i g h t s , w i t h the e f f e c t of f o r c i n g the Japanese to l o o k f o r new sources of supply.  In t h e i r extremity  they t u r n e d t o S i b e r i a , an area from which they had, u n t i l them, imported o n l y the s m a l l e s t q u a n t i t i e s .  There,  i n 1 9 2 5 , w i t h the p e r m i s s i o n of the S o v i e t 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 E a s t e r n 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 t o a s c e r t a i n to what e x t e n t the f a l l i n g o f f of Japanese demand a f t e r 1928 was due t o 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 w o r l d was e n t e r i n g a p e r i o d of severe economic d e p r e s s i o n i n t o which Japan was  2  i n e v i t a b l y drawn.  However, i t can be assumed  7 5 Western Lumberman, v o l . 2 1 ,  (December, 1924), p.  11.  131  t h a t a f a i r p a r t ' o f Japan's supply was drawn from the S o v i e t r e g i o n , a t l e a s t u n t i l Japan's a t t a c k upon Manchuria, China's n o r t h e r n p r o v i n c e .  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 r e s o u r c e s , F a n c h u r i a n lumber went f a r t o 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.  F o r a long time i t had been f e l t t h a t w i t h the end of the war P a c i f i c Coast lumber would immediately invade the E a s t e r n Seaboard of the U n i t e d S t a t e s v i a the Panama r o u t e .  That t h i s I n v a s i o n d i d not Immediately  occur cannot be a t t r i b u t e d t o any l a x n e s s on the p a r t of the D o u g l a s - f i r p r o d u c e r s , but r a t h e r t o the f a c t t h a t they c o u l d not a t f i r s t compete i n the Northern markets w i t h the p i n e shipments from the Southern S t a t e s . by the middle of 1922,  However,  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 t o  the growing- s c a r c i t y of Southern stumpage, and water s h i p ments of D o u g l a s - f i r began t o move through the Panama onn  C a n a l from the P a c i f i c Northwest, '  2 7 6  Timberman. v o l , 23,  1  (October, 1922), p.  135.  I n 1921 a t o t a l of 500,000,000 f e e t of timber from B r i t i s h Columbia, Washington and Oregon, was shipped through the Panama Canal t o 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 . Ibid., v o l . 30, (February, 1927), p. 206. 2 7 7  132  W h i l e the U n i t e d S t a t e s attempted t o meet i t s tremendous post-war housing shortage, B r i t i s h Columbia m i l l s enjoyed one g r e a t advantage over t h e i r c o m p e t i t o r s i n Washington and Oregon:  f o r e i g n v e s s e l s were excluded  by American law from c a r r y i n g cargoes between U n i t e d S t a t e s ports.  Consequently American shipowners, f r e e d from  f o r e i g n c o m p e t i t i o n charged h i g h r a t e s .  There was a  margin of $ 3 . 2 5 per t o n i n f a v o r of v e s s e l s p l y i n g between Vancouver and New York over American v e s s e l s r u n n i n g from. Seattle.  2 7 8  The B r i t i s h Columbia m i l l m a n c o u l d , t h e r e f o r e ,  l a n d h i s p r o d u c t i n New York a t about t w o - t h i r d s the c o s t f a c e d by h i s S e a t t l e c o u n t e r p a r t . The of t h i s d i s p a r i t y  consequence  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 U n i t e d S t a t e s 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 ,  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  2 7 9  industry  the U n i t e d S t a t e s became by f a r i t s most important customer. Not a l l of t h i s huge p r o d u c t i o n , however, was destined, f o r the E a s t e r n Seaboard.  A l e s s e r p a r t of i t  c o n t r i b u t e d t o the m e t e o r i c r i s e of the c i t y of Los Angeles, and the g e n e r a l expansion of other Southern cities.  California  The r i s e of Los Angeles c o n s t i t u t e d one of the  2 7 8  2 7 9  Western Lumberman, v o l . 11, (February, 1914), p. 42, Tlmberman, v o l . 2 7 ,  (March, 1926), p.  58.  133  most remarkable phases of the growth of Southern California.  I n 1920 Los Angeles harbor used  f e e t of lumber-, I n  1923  i t handled  562,385,157  1,086,828,600  feet  and i n 1 9 2 6 the lumber r e c e i p t s were e s t i m a t e d a t upward of  1,214,502,600  feet.  2 8 0  Most of t h i s p r o d u c t i o n 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 a l s o i n v o l v e d .  F o r example,  i n 1922, the Los Angeles S h i p b u i l d i n g & Drydock C o r p o r a t i o n amalgamated w i t h the M a s s e t t Timber Company L i m i t e d of B r i t i s h Columbia, the Puget Sound Box Company, L t d . „ of S e a t t l e , and the Western Marine Supply Co., t o form a corporation capitalized at  .$10,000,000.  2 8 1  This  new  o r g a n i z a t i o n operated lumber m i l l s of a l l k i n d s , a f l e e t of lumber v e s s e l s and many o t h e r a l l i e d a c t i v i t i e s .  The  Masset Timber Company L i m i t e d , the l a r g e s t of the B r i t i s h Columbia p a r t s of the f i r m , held the l o g g i n g r i g h t s t o a c r e s of s t a n d i n g timber on Graham I s l a n d , which  110,000  were d e c l a r e d by e x p e r t s t o be the f i n e s t s i n g l e t r a c t on the American c o n t i n e n t .  The Los Angeles end of the  g i a n t u n d e r t a k i n g owned a s e v e n t y - a c r e p l a n t a t Los Angeles.  Logs were cut and rough-sawn  on Graham I s l a n d ,  and the p r o d u c t was s e n t t o the s h i p y a r d p l a n t i n Los Angeles, where a l a r g e area of the y a r d s unused water 1  281  Loc. c i t .  282  Loc. c i t .  134 f r o n t a g e was converted i n t o a lumber y a r d , and where modern s a w m i l l s o f l a r g e c a p a c i t y were e r e c t e d t o f i n i s h and dress t h e lumber f o r t h e market<> 3 28  i  n  t h i s way a  v e r y l a r g e t r a d e between the two c o a s t a l p o i n t s was b u i l t up.  I n 1 9 2 3 } f o r example, C a l i f o r n i a  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  imported  lumber,  three  times t h e q u a n t i t y exported t o the U n i t e d K i n g d o m . The E a s t e r n Seaboard,  however, remained  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.  2 8 4  the most  The demand f o r p i t  props i n t h e c o a l f i e l d s , f o r lumber t o 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 t h e e r a .  I n 1 9 2 9 , t h e year  of the g r e a t economic c r a s h , B r i t i s h Columbia  d i s p o s e d of  n i n e t y per cent of i t s s h i n g l e output and between f i f t y per cent and s i x t y p e r cent of i t s lumber t o these U n i t e d 28^  S t a t e s markets.  y  With the f a c i l i t y o f f e r e d by the Panama C a n a l r o u t e , l a r g e q u a n t i t i e s of l o c a l timber were a l s o shipped to M o n t r e a l and Quebec.  I n M o n t r e a l , s p e c i a l equipment  was i n s t a l l e d on the docks t o handle the l a r g e •of the Coast f o r e s t s .  dimensions  From M o n t r e a l much o f the imported  lumber found i t s way i n t o O n t a r i o .  I n f a c t , so l a r g e  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 t h a t lumber of t h a t p r o v i n c e appealed  manufacturers  t o 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 w i t h an order  stipulating  t h a t o n l y O n t a r i o lumber could be used I n government c o n t r a c t s , 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 p r e f e r e n c e t o the Coast product, but beyond t h a t p o i n t i t c o u l d not proceed.  B r i t i s h Columbia  lumber continued t o use the a l l - s e a r o u t e through the Panama t o f l o o d E a s t e r n Canada w i t h a q u a n t i t y of lumber almost e q u a l t o t h a t which she exported t o t h e American E a s t e r n Seaboard. By 1929 the g o a l of the B r i t i s h Columbia i n d u s t r y had been l a r g e l y achieved.  Lumbermen could p o i n t t o a  r e a s o n a b l y h e a l t h y home market, .which consumed 210 m i l l i o n f e e t of l o c a l lumber; E a s t e r n 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 t o C a l i f o r n i a and the E a s t e r n 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 U n i t e d Kingdom, A u s t r a l i a and other overseas markets.  B r i t i s h Columbia  had o b v i o u s l y won the s t r u g g l e f o r a cargo t r a d e Independent of American c o n t r o l .  Whether she could r e t a i n t h a t trade  i n the f a c e of the Impending world-wide economic d e p r e s s i o n was another  matter.  I n 1929 t h e r e occurred on W a l l S t r e e t the c r a s h of stocks which ushered  i n a f u l l decade of economic  136  d e p r e s s i o n f o r most of t h e w o r l d .  W i t h i n two years  the b u i l d i n g t r a d e o f the world was p a r a l y z e d ; t h e consumption of lumber on t h e American c o n t i n e n t tumbled to  t h e lowest p o i n t s i n c e 1 8 6 9 ; and the p r o d u c t i o n of  lumber i n North America f e l l by s e v e n t y - f i v e per cent to  t h e lowest p o i n t s i n c e 1 8 5 9 . ^ 2 8  p r o d u c t i o n reduced by a p p r o x i m a t e l y  Not o n l y was Coast s i x t y p e r cent, but  the p r i c e of lumber dropped i n the year 1932 t o l e s s h a l f t h e average o f t h e p r e c e d i n g seventeen y e a r s .  than In  the f i v e - y e a r p e r i o d between 1930 and 193 5 > many operators both l a r g e and s m a l l were f o r c e d t o d i s c o n t i n u e o p e r a t i o n s , and many o t h e r s worked on reduced time  schedules.  2 8 7  Other p l a n t s reduced wages from t h i r t y t o f o r t y per cent to m a i n t a i n o p e r a t i o n s . ~- /  An a d d i t i o n a l blow t o the i n d u s t r y came i n the  d e c i s i o n o f the twenty l e a d i n g timber importers o f t h e U n i t e d Kingdom t o combine f o r the f i r s t time t o purchase the e n t i r e e x p o r t a b l e timber supply of the S o v i e t Union for  1929.  The agreement i n v o l v e d payment t o R u s s i a o f  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 t r a n s a c t i o n s made w i t h the S o v i e t Union s i n c e the r e v o l u t i o n of  1917.288  6 M a c M i l l a n , 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 . 1 8 , (October, 1934), p. 15* 2 8  2 8 7  2 8 8  I b i d . , v o l . 14, (November, 1 9 3 0 ) , p. 13. Tlmberman, v o l . 3 0 , (January, 1 9 2 9 ) , p. 2 1 .  137 At t h i s time the R u s s i a n Government had embarked, upon i t s f i r s t f i v e - y e a r p l a n t o i n d u s t r i a l i z e the S o v i e t Union, and, i n accordance w i t h i t s p l a n , c o n t r a c t e d w i t h o t h e r n a t i o n s t o s u p p l y raw and near-raw m a t e r i a l s for  the n e c e s s a r y c u r r e n c y w i t h which t o purchase  i n d u s t r i a l machinery from the West.  Her f i r s t  such  agreement, w i 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 E a s t e r n S i b e r i a n f o r e s t s , d e p r i v e d B r i t i s h Columbia of the Japanese market, and i t s second one t h r e a t e n e d the p r o v i n c e ' s lumber t r a d e w i t h Great Britain. In the  the f o l l o w i n g year the S o v i e t Union appeared i n  r o l e of s e r i o u s c o m p e t i t o r a g a i n s t the P a c i f i c  northwest as a s h i p p e r of doors t o the U n i t e d Kingdom. 9 28  To have met the p r i c e f o r doors quoted by the Russians would have been r u i n o u s f o r West Coast m i l l s , w h i l e p r i c e was not an o v e r r i d i n g c o n s i d e r a t i o n w i t h the S o v i e t Union,, Throughout A u s t r a l i a , Hew Zealand and Southeast A s i a d e p r e s s i o n p r e v a i l e d , and orders from those r e g i o n s dwindled t o a f r a c t i o n of t h e i r former volume. the  In addition,  P r a i r i e s s u f f e r e d from a c u r t a i l m e n t 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. S t a t e s . This t a r i f f ,  designed t o p r o t e c t American i n d u s t r i e s  from c o m p e t i t i o n w i t h f o r e i g n sources i n the home market, became law on J u l y 1,  1932.  This C o n g r e s s i o n a l 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 U n i t e d S t a t e s , thereby marking the bottom of the slump i n the i n d u s t r y .  I t was the worst year s i n c e t h a t year  of c r i s i s , 1914. Under these u n f a v o r a b l e circumstances  i t became  necessary once a g a i n t o attempt t o r e p e a t the performance of b u i l d i n g almost from n o t h i n g a new market f o r B r i t i s h Columbia's lumber.  T h i s was no easy t a s k i n a time of  world-wide d e p r e s s i o n , when i n t e r n a t i o n a l t r a d e was d e c l i n i n g and i n t e n s i f i e d n a t i o n a l i s m was e r e c t i n g t r a d e 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 . F a c i n g the c u r t a i l m e n t of t h e i r American market and r e c o g n i z i n g the nature of the new and p e c u l i a r S o v i e t c o m p e t i t i o n , B r i t i s h Columbia lumbermen prepared t o make the s t r o n g e s t b i d ever attempted of the U n i t e d Kingdom.  f o r the lumber t r a d e  The U n i t e d Kingdom was the  g r e a t e s t lumber i m p o r t i n g country i n the w o r l d , 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 e e t a year.  I f t h a t market  c o u l d be captured or even shared i n a reasonable way w i t h the other g r e a t producing areas, the problem of the  139 province's The  f i r s t i n d u s t r y would be l a r g e l y s o l v e d .  f i r s t opportunity  i n J u l y 1932, and  t o c a r r y out t h i s r e s o l v e came  when the r e p r e s e n t a t i v e s of Great B r i t a i n  the Dominions, met i n Ottawa i n order t o f i n d some  s o l u t i o n t o the g e n e r a l economic impasse i n which t h e i r r e s p e c t i v e n a t i o n s found themselves.  They agreed t h a t  the o n l y hope f o r s o l u t i o n l a y i n i n c r e a s e d Commonwealth trade encouraged by i m p e r i a l The  intrapreferences.  s i g n i f i c a n c e o f 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 o f f r e e t r a d e t o B r i t i s h Columbia lumbermen l a y i n the t e n per cent p r e f e r e n c e Great B r i t a i n agreed t o accord  which  t o lumber from the Dominions.  T h i s 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 t h a t came t o t h e P a c i f i c Northwest. I t meant t h a t Washington and Oregon m i l l s could not s e r i o u s l y compete i n any lumber product t h a t t h e B r i t i s h Columbia m i l l s could supply.  I n e f f e c t , s h i p s it hat  f o r m e r l y took cargos out of P o r t l a n d , Oregon, f o r the B r i t i s h I s l e s , but c o u l d not a f f o r d t o l o a d a cargo I n Vancouver a t the same r a t e s , now found i t more p r o f i t a b l e \  t o l o a d i n B r i t i s h Columbia. The  t e n per cent preference  d i d not prove l a r g e  enough, however, t o d i s l o d g e the B a l t i c and R u s s i a n products from United Kingdom markets.  The Canadian  I n d u s t r y , t h e r e f o r e , requested/a p r e f e r e n c e twenty per cent.  of a t l e a s t  Great B r i t a i n d i d not agree but i n s t e a d ,  140 i n accordance w i t h A r t i c l e 21 of the Ottawa t r a d e agreement, imposed an embargo on S o v i e t lumber.  This a r t i c l e  r e a d : 'This agreement i s made on the express c o n d i t i o n t h a t i f e i t h e r government i s s a t i s f i e d t h a t any p r e f e r ences hereby g r a n t e d , are l i k e l y t o 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 c l a s s e s of commodities, through s t a t e a c t i o n on the p a r t of any f o r e i g n c o u n t r y , t h a t Government hereby d e c l a r e s t h a t i t w i l l p r o h i b i t the e n t r y from such f o r e i g n country such commodities i n t o i t s c o u n t r y , f o r such time as may be necessary t o make e f f e c t i v e and to m a i n t a i n the p r e f e r e n c e s , hereby granted t o i t . ' 2 9 0 The B a l t i c r e g i o n now remained the Canadian i n d u s t r y ' most s e r i o u s c o m p e t i t o r i n the U n i t e d 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 r e s o u r c e s , f i r s t - c l a s s machinery, high-grade management, competent l a b o r a t under f i f t e e n cents per hour, and a f r e i g h t h a u l a v e r a g i n g o n l y one thousand m i l e s to the U n i t e d Kingdom market, as compared w i t h 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  Great B r i t a i n , I m p e r i a l Economic Conference a t Ottawa, 1932, Summary of proceedings and copies of t r a d e agreements, Cmd. • 4174, pp. 22-23. 2 9 0  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 t o the U n i t e d Kingdom i n 1931 1934,  '  grew t o 455,000,000 f e e t i n  and continued a t a h i g h p i t c h u n t i l a f t e r the  outbreak of World War  2.  T h i s g r e a t consumption of  lumber i n Great B r i t a i n i n the d e p r e s s i o n 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 c l e a r a n c e and t o s u b s i d i z e l a r g e - s c a l e housing development p r o j e c t s .  I n 1937  and 1938  alone,  housing  s o c i e t i e s b u i l t f o u r m i l l i o n houses w i t h government i n 1938,  aid, 93 2  a f t e r Chamberlain r e t u r n e d from Munich,  B r i t a i n added to her normal demands by c o n s t r u c t i n g v a s t 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 s t r u g g l e 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 v e r y backbone of the p r o v i n c e ' s export i n d u s t r y u n t i l the outbreak of war i n 1939.  As one l e a d i n g e x p o r t e r phrased  it:  "We  are as  much a p a r t of B r i t i s h t r a d e economics as Y o r k s h i r e . Whether we l i k e i t or not, we have p l a c e d a l l our eggs i n one basket, and we had b e t t e r watch the basket. all is l o s t . "  Otherwise,  2 9 4  292  Timberman, v o l . 37, 2 9 3  p.  97.  (December, 1935), p.  West Coast Lumberman, v o l . 74,  40.  (October, 1947),  294  Mr. H. R. M a c M i l l a n . 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  c o m p e t i t i o n , was A u s t r a l i a .  Australia  used 800,000,000 f e e t of lumber a n n u a l l y , of which l e s s than 40,000,000 f e e t came from Canada i n an average y e a r . The l a r g e ? p a r t was s u p p l i e d c h i e f l y by Oregon, and the B a l t i c s t a t e s .  Washington,  I n 1929 B r i t i s h Columbia lumbermen,  despatched a d e l e g a t i o n of a b l e lumbermen t o A u s t r a l i a who had arranged an agreement between Canada and  Australia,  and l a t e r w i t h New Z e a l a n d , t h a t 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 ( t h e n about $5),  a thousand f e e t  on f i r , and o n e - h a l f of t h a t amount on hemlock.  Immediately  t r a d e 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 t o 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 a c c o r d i n g her the same p r e f e r e n c e she enjoyed i n the U n i t e d Kingdom.  As a r e s u l t , exports t o A u s t r a l i a grew  r a p i d l y from 41,000,000 f e e t i n 1929, t o 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, r o s e from s i x t e e n per cent i n 1929 t o n i n e t y - t w o per cent in  1934. Not a l l of the A u s t r a l i a n t r a d e 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 p r e f e r t o e x p o r t lumber.  I n order t o encourage lumber manufacturing i n  Australia  and t o p r o v i d e employment f o r A u s t r a l i a n s , low  import d u t i e s were imposed on B r i t i s h Columbia l o g s . A u s t r a l i a n s a w m i l l s , u s u a l l y equipped w i t h modern American .sawmill machinery, were e r e c t e d I n Sydney, B r i s b a n e and other c i t i e s , t o manufacture lumber from D o u g l a s - f i r l o g s imported from B r i t i s h Columbia. per  Probably seventy-five  cent, o f t h e f i r lumber used i n A u s t r a l i a  was manu-  f a c t u r e d i n A u s t r a l i a n s a w m i l l s under such c o n d i t i o n s . 9 6 2  Having a l r e a d y captured e i g h t y - t h r e e p e r cent of the P a c i f i c Coast t r a d e w i t h 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 p o r t s i n 1934 were made from provincial  p o r t s ; w h i l e 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  p r e f e r e n c e s were r e s p o n s i b l e f o r t h i s remarkable achievement;  s u b s i d i z e d s h i p p i n g a l l o w e d the i n d u s t r y  increased d i s t r i b u t i o n ;  the a g g r e s s i v e salesmanship of  the l a r g e e x p o r t i n g f i r m s was e a s i l y t h e e q u a l of t h a t of i t s American c o m p e t i t o r s ; the c o - o p e r a t i o n of both  Timberman, v o l . 3 6 , (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. 2 5 .  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  s t a b l e l a b o r c o n d i t i o n s i n the B r i t i s h Columbia  industry; 99  and l a s t l y the easing of the c o m p e t i t i o n from, the U n i t e d S t a t e s i n d u s t r y owing t o the r i g i d r e g u l a t i o n s of the N a t i o n a l Recovery Act  ^  7 7  West Coast Lumberman, v o l , 64, (March, 1937),  p. 25, The N a t i o n a l 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 l a g g i n g commerce and i n d u s t r y of the n a t i o n . F o r a p e r i o d of two years the outputs, wage s c a l e s , hours of l a b o r and p r i c e schedules of the American lumber I n d u s t r y were governed a c c o r d i n g to i t s p r i n c i p l e s . The h i g h wages and s h o r t e r hours which the a c t f o r c e d on the m i l l s i n Washington and Oregon worked t e m p o r a r i l y t o the advantage of B r i t i s h Columbia m i l l s , T h i r t y t o t h i r t y - t h r e e cents an hour was about the top minimum wage i n the lumber I n d u s t r y i n B r i t i s h Columbia, and. some m i l l s p a i d as l i t t l e as f i f t e e n cents an hour. I n 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 a c t , by comparison, imposed a minimum h o u r l y wage of 42-1/2 cents and enforced a f o r t y - h o u r week, Tlmberman, v o l , 36, (March, 1935)? p. 7. J  2  CHAPTER IV THE GIANT COMPANIES AND The  THE  AMERICAN MARKET (1940 ~ ).  outbreak of the Second World War  signalled  a sharp i n c r e a s e i n a c t i v i t y i n the lumber t r a d e . I t seemed e v i d e n t t h a t Canadian f o r e s t s and  forest  i n d u s t r i e s would be depended upon t o supply not o n l y the major p a r t of the requirements  of the U n i t e d Kingdom  f o r f o r e s t products but a l s o i n c r e a s i n g amounts t o other c o u n t r i e s t h a t had been s e c u r i n g s u p p l i e s from the B a l t i c s t a t e s , whose e x p o r t s were p r a c t i c a l l y e l i m i n a t e d . B e f o r e they c o u l d take advantage of t h i s  3 0 1  seemingly  f o r t u n a t e t u r n of events, B r i t i s h Columbia lumber e x p o r t e r s had to f a c e two major problems:  i n c r e a s e d f r e i g h t and  i n s u r a n c e r a t e s caused by Germany's I n d i s c r i m i n a t e submarine and mine w a r f a r e , and, more i m p o r t a n t ,  the  growing s c a r c i t y of s h i p s t o c a r r y t h e i r products t o the hungry markets of the U n i t e d Kingdom and other s t a t e s of the A t l a n t i c community. I n the emergency B r i t i s h s h i p p i n g was  taken over  once a g a i n by the B r i t i s h A d m i r a l t y 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  Large q u a n t i t i e s of lumber, p i t - p r o p s , p u l p , paper and other wood products were n o r m a l l y exported from F i n l a n d , Swed-en, R u s s i a , L a t v i a , E s t o n i a and L i t h u a n i a not o n l y t o the U n i t e d Kingdom and other European c o u n t r i e s , but to the U n i t e d S t a t e s , 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 c o u n t r i e s . g x i t j ^ J S o J L u ^ ^ v o l . 24, (November, 1940), p. 75* 3 0 1  146  Atlantic.  To add to the shortage, n e u t r a l v e s s e l s were  no l o n g e r f r e e l y a v a i l a b l e f o r h a n d l i n g 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 s h i p s as slow as the slowest v e s s e l i n the f l e e t , and submarine l o s s e s each day c o n s t i t u t e d a f u r t h e r t o l l  on  transportation. The r e s u l t was a g r a d u a l 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 s e r i o u s d i d the s h i p  shortage become, t h a t B r i t i s h Columbia millmen were d r i v e n t o attempt one of the most d a r i n g s t r o k e s i n trade h i s t o r y . of  I n December, 1939? a l a r g e p r o p o r t i o n  the lumber accumulated  on the coast f o r the U n i t e d  Kingdom began moving by r a i l t o the A t l a n t i c coast f o r trans-shipment, i n s t e a d of by the customary Panama Canal route. to  From there the B r i t i s h Government  3 0 2  undertook  supply the sea tonnage t o the U n i t e d Kingdom.  Despite  these f o r m i d a b l e 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 t o the U n i t e d Kingdom 964,000,000 f e e t of lumber i n 1939,  and about one b i l l i o n i n 1940. ° 3  3  G r a d u a l l y , however, the s h i p p i n g s i t u a t i o n d e t e r i o r a t e d even f u 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  S o v i e t Union, B r i t a i n d i s c o v e r e d a new source of supply  302 west Coast Lumberman, v o l . 67, p.  (January,  46. 3 0 3  I b i d . , v o l . 67,  (December, 1940), p.  64.  1940),  147  i n the S o v i e t ' s n o r t h e r n f o r e s t s .  Ships c a r r y i n g  munitions from the U n i t e d Kingdom t o Murmansk, r e t u r n e d w i t h cargoes of lumber f o r the besieged B r i t i s h  Isles.3  0 4  T h i s p o i n t 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 p a t t e r n of the B r i t i s h Columbia lumber t r a c e :  i t marked the end of the U n i t e d  Kingdom as the prime s u s t a i n e r of the p r o v i n c e ' s c h i e f industry.  At one time, such an u n d e r s t a n d i n g between  the S o v i e t lumber t r a d e and the U n i t e d Kingdom would have caused a n x i e t y among B r i t i s h Columbia lumbermen, but. w i t h F o r t h American markets so a c t i v e t h a t they found i t d i f f i c u l t to meet demand, the lumbermen of the West Coast, were not d i s t u r b e d by the development.  By  1942, overseas e x p o r t shipments had f a l l e n t o 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 e x p o r t market was not n o t 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 t r 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 F o r c e , 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 i n d u s t r y was engaged on defence  work to the e x t e n t of about e i g h t y per cent of i t s production.  3  0 4  A f t e r December 7? 1941, the U n i t e d S t a t e s  West Coast Lumberman, v o l . 69? (March, 1942),  p. 78. B r i t i s h . . Columbia Luffl.berm.a_n, v o l . 26, (June, 1942), p.  148  commitment t o an a l l - o u t war e f f o r t taxed i t s own lumber i n d u s t r y t o the utmost and made demands on the Canadian industry.  T h i s combined demand more than compensated  f o r the l o s s o f the cargo t r a d e . I n 1942, the P r a i r i e s entered the B r i t i s h Columbia market i n a l a r g e way f o r the f i r s t time s i n c e 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 s t o r a g e .  A huge h a r v e s t i n A l b e r t a , Manitoba  and Saskatchewan caught those p r o v i n c e s t o t a l l y unprepared f o r the s t o r a g e s i t u a t i o n , and i n the emergency, operators of d e p l e t e d lumber yards looked t o the West Coast f o r assistance. As a r e s u l t of these developments, the B r i t i s h Columbia lumber i n d u s t r y became once a g a i n c h i e f l y concerned w i t h the r a i l t r a d e of the home market and t h e U n i t e d S t a t e s , and has remained so ever s i n c e .  The t r a d e  w i t h the U n i t e d Kingdom f e l l from a h i g h p o i n t of 971,594,000 f e e t i n 1940 t o an average of 557,101,000 f e e t i n the years between 194-6 and 1955.  The trade w i t h  A u s t r a l i a , another member of t h e s t e r l i n g area,  foil  from 158,400,000 f e e t i n 1938 t o an average annual shipment o f 83,947,000 f e e t i n the 1946 t o 1955 3  0 6  period.3°?  West Coast Lumberman, v o l . 69, (October, 1942), p  3°7 B r i t i s h Columbia, Department of Lands and F o r e s t s F o r e s t S e r v i c e Branch, Report, 1955. p. 108.  149  Trade w i t h the U n i t e d S t a t e s showed an o p p o s i t e trend.  The p o p u l a t i o n of the U n i t e d S t a t e s i n t h i s  period increased very r a p i d l y —  by a number equal t o  the p o p u l a t i o n of Canada every s i x y e a r s .  Of equal  weight was the s t a r t l i n g e x t e n t t o which the U n i t e d S t a t e s raw m a t e r i a l supply surveys d e p i c t e d the growing American dependence f o r i n d u s t r i a l raw m a t e r i a l s on e x 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 m a t e r i a l s , and the U n i t e d S t a t e s 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 e m p h a t i c a l l y f e l t than i n the lumber t r a d e .  F o r the t e n years b e f o r e the  war, f o r t y - f i v e per cent of Canada's lumber exports went to the U n i t e d Kingdom and t w e n t y - s i x per cent t o the U n i t e d S t a t e s ; f o r the s i x war y e a r s , f o r t y - f i v e per cent went t o t h e U n i t e d Kingdom and f o r t y - s i x per cent t o the U n i t e d S t a t e s ; f o r the f i r s t f o u r post-war years o n l y t h i r t y per cent went t o the U n i t e d Kingdom and f i f t y - t h r e e per cent t o t h e U n i t e d S t a t e s and i n 1950 j u s t e i g h t per cent went t o the United Kingdom and e i g h t y - f o u r per cent went t o the U n i t e d S t a t e s . 3 ° ^ The t o t a l value of B r i t i s h Columbia f o r e s t exported  3° p. 1 2 0 ,  products  t o f o r e i g n p a r t s i n 1952 amounted t o  8  Canadian Pulp and Paper, v o l . 5, ( A p r i l , 1 9 5 2 ) ,  150  1235,74-3,758  309  of which amount the U n i t e d S t a t e s 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 p u l p and paper was s o l d t o the U n i t e d S t a t e s ; about t w e n t y - f i v e per cent to other o f f - s h o r e markets, c h i e f l y i n the P a c i f i c b a s i n ; and f i f t e e n per cent i n the home m a r k e t , 3  11  The unprecedented p r o s p e r i t y of the lumber i n 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 f a c e of B r i t i s h Columbia, f o r the lumber i n d u s t r y was s t i l l the most important s i n g l e f a c t o r i n the g e n e r a l p r o s p e r i t y of the p r o v i n c e . One s i g n i f i c a n t change was the r e t u r n of the Interior  t o an important p l a c e i n the p r o d u c t i o n of  f o r e s t crops.  The i n v e n t i o n of modern machinery f o r  making roads, the development of t r u c k s f o r t r a n s p o r t i n g l o g s long d i s t a n c e s from f o r e s t t o m i l l , and the  new  demand c r e a t e d by the war and post-war p r o s p e r i t y e f f e c t e d a s t r o n g r e v i v a l of l o g g i n g 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 I n d u s t r y , E x t e r n a l Trade. 1952, p. 2 . 3 i b i d . , compiled from s t a t i s t i c a l t a b l e s on pp. 30-42. 1 0  3  Canadian P u l p and Paper I n d u s t r y , v o l . 5, ( A p r i l , 1 9 5 2 T T P ^ 72^ 1 1  151  the  l a r g e c e n t r e s , which had been thought u n e x p l o i t a b l e  under normal c o n d i t i o n s , became suddenly v a l u a b l e under the  compulsion of war-time demands.  I t was the i n d u s t r y  of t h i s area which was c a l l e d upon by the F e d e r a l Timber C o n t r o l d u r i n g the war t o s u p p l y a l a r g e p a r t o f 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 c h i e f p o l e -  producing c e n t r e of the I n t e r i o r ,  Nelson became a  matchblock c e n t r e , p r o d u c i n g b l o c k s f o r E a s t e r n Canada as w e l l as matchplant f o r Spokane f i r m s , 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 c o n t r a c t  i n the E a s t 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 s h i n g l e s , but i t a l s o made timbers f o r West Kootenay mines and sent p u l p l o g s t o paper m i l l s i n Spokane.  Cranbrook, Golden and Invermere  produced c h i e f l y lumber and l a r g e numbers o f r a i l r o a d ties.  F e r n i e too manufactured lumber and t i e s , but  devoted much of i t s p r o d u c t i o n t o mine props f o r the •312  heavily-seamed c o a l - m i n i n g mountain p a s s .  An ever  i n c r e a s i n g volume of lumber was c u t as the war p r o g r e s s e d . War-time demand e v e n t u a l l y became so g r e a t t h a t i t was loaded green. 3 B r i t i s h Columbia Lumberman, v o l . 26, (September, 1942), p. 29. 1 2  152  I n the Okanagan r e g i o n , the lumbering i n d u s t r y g r a d u a l l y overtook f r u i t growing as the major i t e m i n the economy.  The Vernon r e g i o n alone supported s i x t y -  f o u r m i l l s , f o u r of which handled t w o - t h i r d s of the t o t a l cut.  P a y r o l l s from the i n d u s t r y t o t a l l e d $2,400,000  annually. !3 3  Between 1947  and 1954,  the number of s a w m i l l s  o p e r a t i n g I n the Southern I n t e r i o r i n c r e a s e d from around 475 t o 1000 and the d a i l y c a p a c i t y of the r e g i o n grew from 4,754,000 f e e t t o 7,120,000 f e e t . a l s o has r i s e n p r o p o r t i o n a t e l y :  The annual cut  from 582,437,000 board  f e e t i n 1947 t o 905,279,000 i n 1 9 5 3 .  3 1 4  The war years and the post-war decade were t o the n o r t h e r n I n t e r i o r what the t u r n of the c e n t u r y years were t o the Kootenays.  Remarkably l i t t l e change o c c u r r e d  around P r i n c e George i n the l o n g p e r i o d between 1915 1940.  and  Perhaps the s t o r y of the area c o u l d best be  i l l u s t r a t e d by the f o r t u n e s of one man, P r i n c e l e a d i n g millman, Roy S p u r r .  I n 1917,  George's  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 i n d u s t r y was c o n s e r v a t i v e l y estimated a t $1,200,000 a s i d e from some $550,000 i n t r u c k i n g and a l l i e d equipment. Shipments of up t o t w e n t y - f i v e hundred r a i l w a y c a r l o a d s a year were worth more than $ 4 , 0 0 0 , 0 0 0 . 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 " R e g i o n a l Report, Southern I n t e r i o r : Can They L i c k the M a r k e t i n g Problem?" The Truck Logger, ( A p r i l , 1954), P. 39. 1 4  153  of the d i s t r i c t ' s f i r s t s a w m i l l s , a t Penny,  He s o l d i t  i n 1928, and three years later-, he and f o u r  other  i n v e s t o r s bought the bankrupt Eagle Lake a s s e t s of the Winton Lumber i n t e r e s t s , t a k i n g 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. ? 31  Under S p u r r s 1  guidance the company r e p l a c e d men  w i t h machines, b u i l t a l l - w e a t h e r l o g g i n g roads, and put l o g g i n g t r u c k s on t i g h t t i m e - t a b l e s .  Despite h i s  c a r e f u l management, however, the years of d e p r e s s i o n proved d i f f i c u l t t o s u r v i v e .  As i n the Southern I n t e r i o r ,  the lumber i n d u s t r y i n the North r e c e i v e d a c o n s i d e r a b l e impetus from war demands.  B u t i t was the American demand  f o r Engelmann spruce t h a t underlay  the development of  the i n d u s t r y i n the N o r t h e r n 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 l a r g e war  orders u n t i l i t became the b i g g e s t lumber o p e r a t i o n i n the P r i n c e George F o r e s t D i s t r i c t .  I n 1953, i t produced  2 2 , 0 0 0 , 0 0 0 board f e e t and employed 165 men.  Spurr s o l d  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 M i l n e r i n t e r e s t i n 1947 a t a r e p o r t e d one m i l l i o n d o l l a r s , but continued  t o manage the company.3^ He d i e d i n August,  3 ? B r i t i s h Columbia Lumberman, v o l . 31, (August, 1947), pp. 93-94. 1  3  1  6  I b i d . , v o l . 38, (September, 1954), p. 18.  154 1954.  By t h a t year the presence of seven hundred  lumbering o p e r a t i o n s i n the area had i n c r e a s e d the p o p u l a t i o n from the d e p r e s s i o n l e v e l of t h r e e thousand, to a prosperous twelve  thousand.  I n Quesnel, e i g h t y m i l e s south of P r i n c e George, the Western Plywood, (Caribou) L t d . , opened a m u l t i m i l l i o n d o l l a r p l a n t i n 1953? and a s a w m i l l t o process l o g s , not s u i t a b l e f o r plywood, was e r e c t e d i n the following year.produced  3 1 7  B e f o r e 1945, the Nechako d i s t r i c t  o n l y enough lumber t o s a t i s f y l o c a l demand.  I n 1954, two thousand c a r l o a d s of lumber were exported, p r o v i d i n g a $800,000 p a y r o l l . I n H a z e l t o n , the Olaf Hanson Lumber Company, which was  e s t a b l i s h e d i n 1910  t o supply t i e s t o 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 p o l e business. was  The Olaf Hanson Lumber Company, u n t i l r e c e n t l y ,  the major s i n g l e o p e r a t i o n 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 p o l e s and hand-hewn t i e s .  Over  two m i l l i o n p o l e s and 171,000 t i e s were produced i n 1953? i n a d d i t i o n t o lumber from s a w m i l l s .  Lumber was  produced  by 740 s a w m i l l s , w i t h a t o t a l d a i l y c a p a c i t y of 2,047,000 board f e e t . 3 1 8  "Northern I n t e r i o r i A l e v e l i n g o f f " , The Logger, (August, 1954), pp. 13?14. 3 1 7  3 1 8  Loc. c i t .  Truck  7  Much new  f o r e s t w e a l t h i n the n o r t h was  by the engineers who Second Great War.  discovered  b u i l t the Alaska Highway d u r i n g the  B e f o r e t h e i r f l i g h t s , t h e r e was  no  exact i n f o r m a t i o n a v a i l a b l e about the f o r e s t w e a l t h n o r t h of the Peace B i v e r along the A l c a n r o u t e . the urgency of war, and bending  D r i v e n on by  every energy t o complete  the Alaska Highway, engineers a t f i r s t imported from the Kootenays a l l the lumber and timber needed f o r cons t r u c t i o n purposes. from Whitehorse,  F i r t i e s f o r the r a i l e x t e n s i o n  f o r example, were t r a n s p o r t e d from the  Burns Lumber and C o a l Company a t Nelson, B. C.,  two  thousand m i l e s t o Dawson Creek by r a i l , and then 910 by road t o Whitehorse.  miles  The t i e s were hauled i n midwinter  through some of the b e s t t i e timber i n the world n o r t h of F o r t S t . J o h n . 3  1 9  American c o n t r a c t o r s soon d i s c o v e r e d commercial timber along the way and they e r e c t e d s m a l l sawmills a t a score of p l a c e s n o r t h of the Peace R i v e r B r i d g e . Canadians too e r e c t e d s a w m i l l s i n F o r t S t , John and  on  the Peace R i v e r between the B r i d g e and Dawson. Creek. And a new  timber i n d u s t r y was  e s t a b l i s h e d beyond the  Peace, between Dawson Creek and the White R i v e r .  Ten  years l a t e r , e l e v e n m i l l s were producing on the Alaska Highway, between M i l e 83 and 110,  1945), p.  and two l a r g e r companies  B r i t i s h Columbla Lumberman. v o l . 29, 81.  (March,  156  were producing a t C e c i l Lake, near M i l e 40. p r o d u c t i o n was  Their  sent down the r i v e r , from S t . John, t o  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 . The  3 2 0  f a v o r a b l e marketing c l i m a t e t h a t l a y behind  t h i s g e n e r a l 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 p r o d u c t i o n . market i n both Canada and products as w a l l b o a r d ,  The  almost i n s a t i a b l e  the United S t a t e s f o r such  i n s u l a t i o n board, l a m i n a t i n g  board, plywood, p l a s t i c s , and p u l p , created 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 .  opportunities  I t meant t h a t  m a t e r i a l s h i t h e r t o regarded by lumber producers as u s e l e s s , 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 c u t , w i t h a l l d e b r i s , as w e l l as primary l o g s , removed and The  marketed.  3 2 1  reasons f o r the g r e a t mergers of the e r a , were,  t h e r e f o r e , almost e n t i r e l y economic. was  The  objective  to economize t o the b e s t p o s s i b l e u t i l i z a t i o n of  intermixed  timber h o l d i n g s .  Under g i a n t companies w i t h  u n l i m i t e d c a p i t a l and c o n t r o l l i n g every k i n d 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 r e c e i v e a l l p e e l e r l o g s , a gang m i l l to handle a l l s m a l l l o g s , a b e v e l - s i d i n g m i l l to handle a l l cedar  3 2 0  1954), p. 3  2 1  1950), p.  B r i t i s h Columbia Lumberman, v o l , 3'3, 1ST P a c i f i c Coast Lumberman, v o l , 77?  69.  saw  (January,  (February,  157 l o g s , and a p u l p ' m i l l to use a l l pulp l o g s . p o s s i b l e to drop a l l i n e f f i c i e n t u n i t s and  I t was  to  c o n c e n t r a t e on and s t r e n g t h e n the e f f i c i e n t u n i t s . This t r e n d 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 i n d u s t r y , wherein the l o g g i n g camp, s a w m i l l , veneer and plywood m i l l , and pulp and paper m i l l became complementary to each o t h e r .  L a r g e - s c a l e operators r e c o g n i z e d  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 f a c e t of the I n t e g r a t e d I n d u s t r y i n order t h a t maximum e f f i c i e n c y could be a t t a i n e d . This venture demanded l a r g e amounts of c a p i t a l , some of which were a v a i l a b l e I n the Canadian market but most of which was  s u p p l i e d by l a r g e American c o r p o r a t i o n s .  T h i s 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 I n d u s t r y  l e d to f a r - r e a c h i n g changes.  Apart from the pulp  and  paper companies o p e r a t i n g i n B r i t i s h Columbia, a l l of which h e l d e x t e n s i v e timber l i m i t s , the f o r e s t i n d u s t r y of the p r o v i n c e g r a d u a l l y passed i n t o the hands of f i v e l a r g e c o r p o r a t e groups.  S e v e r a l 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 M a c M i l l a n and B l o e d e l and. i t s s u b s i d i a r i e s ; Alaska P i n e 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 F o r e s t Products; and B r i t i s h Columbia F o r e s t P r o d u c t s .  158  The f i r s t o f these l a r g e concerns was the M a c M i l l a n and B l o e d e l Company.  Harvey Reginald, M a c M i l l a n ,  the p r e s i d e n t o f the company, was born i n Newmarket, O n t a r i o , i n 1885 and graduated A g r i c u l t u r a l College.  from t h e O n t a r i o  He r e c e i v e d h i s t r a i n i n g i n  f o r e s t r y i n Y a l e U n i v e r s i t y F o r e s t S c h o o l , under P r o f e s s o r H. S. Graves, who l a t e r became C h i e f o f the United States Forest Service.  I n the o p i n i o n of Graves,  M a c M i l l a n was one of t h e most competent students i n f o r e s t r y ever t o emerge from the s c h o o l .  After graduating  i n 1904, M a c M i l l a n was employed f o r e i g h t years by t h e F o r e s t r y Branch o f the Department of the I n t e r i o r , where he e s t a b l i s h e d a remarkable capacity.  reputation for administrative  He made the f i r s t f o r e s t survey i n Canada, •  s t a r t e d the survey of the Rocky Mountain F o r e s t  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 i n d u s t r y i n Canada. In  1912, when t h e p r o v i n c i a l government decided t o  e s t a b l i s h a F o r e s t Branch, the Hon. W. R. Ross, M i n i s t e r of Lands and F o r e s t s , l a r g e l y on the recommendation of Professor Graves ^ 3 2  s e l e c t e d M a c M i l l a n t o o r g a n i z e i t as  the p r o v i n c e ' s f i r s t C h i e f F o r e s t e r .  MacMillan s service 8  as Timber Trade Commissioner d u r i n g the e a r l y years o f  322 Western Lumberman, v o l . 9, (August, 1912), p. 66, 323  LOG, c i t .  159  the war has a l r e a d y been d e s c r i b e d .  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 I m p e r i a l M u n i t i o n s 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 t r a d e , M a c M i l l a n borrowed t e n thousand d o l l a r s w i t h which to e s t a b l i s h the H, P i . M a c M i l l a n Export Company L i m i t e d . company has a l r e a d y been t o l d .  The s t o r y of the  I n time i t became one  of  the l a r g e s t lumber export agencies In the w o r l d , w i t h as many as f i f t y - o n e cargo ships under c h a r t e r a t 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 M a c M i l l a n company f u n c t i o n e d w h o l l y as a  lumber e x p o r t e r .  I n t h a t year, however, some of the  l a r g e m i l l s f o r which M a c M i l l a n acted as s e l l e r  and  d i s t r i b u t o r e s t a b l i s h e d t h e i r own. d i s t r i b u t i n g f i r m , Seaboard S h i p p i n g Company, i n an attempt to share In the p r o f i t s of the s h i p p i n g end of t h e i r b u s i n e s s .  To  counter t h i s move t o some e x t e n t , M a c M i l l a n began t o produce lumber. He f i r s t purchased  the o l d Dominion M i l l s on the  F r a s e r R i v e r , the s i t e of the present Canadian White P i n e mill,  3 2  ^ and f o l l o w e d t h a t w i t h the purchase of the A l b e r n i -  P a c i f i c Lumber Company, a t P o r t A l b e r n i , together w i t h approx-  3 2 4  pp. 122, 3 2 5  West Coast Lumberman, v o l . 80, (May, 123.  I b i d . , v o l . 66, (March, 1939), p.  54.  1953).  160  i m a t e l y a b i l l i o n f e e t of t i m b e r , c h i e f l y D o u g l a s - f i r . M a c M i l l a n purchased  t h i s s u b s t a n t i a l p r o p e r t y from  Denny, Mott & D i c k s o n L t d . , of London, well-known B r i t i s h i m p o r t e r s 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 i t h i t s modern equipment, and i t s c a p a c i t y 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 p l a n t s i n the p r o v i n c e .  M a c M i l l a n bought timber i n nine d i f f e r e n t  t r a c t s v a r y i n g from 770 acres t o 2 , 0 0 0 acres and  situated  on the Ash R i v e r c l o s e t o the A l b e r n i - P a c i f i c o p e r a t i o n s 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  Lumber Company, 1936,  known as A l b e r n i - P a c i f i c  L i m i t e d . The name of the purchaser  g i v e n i n the document, was  Canadian White P i n e Company,  the M a c M i l l a n h o l d i n g 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 M a c M i l l a n o r g a n i z a t i o n a much needed g r i p on lumber p r o d u c t i o n . 3 ^ 8 326 p.  30.  327  West Coast Lumberman, v o l . 6 3 , XJO 0 a  C J.  MacMillan  (October, 1 9 3 6 ) ,  "fc »  328 » r e a l s t a r t , " M a c M i l l a n c o n f i d e d 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, w i t h 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 g i v e you some advices I f you are ever going to go i n t o b u s i n e s s , 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 s t a r t e d up and between the f a l l of 1936 u n t i l A p r i l 1952, i t r a n from $13 a thousand t o $85 and $90 a thousand -- a cont i n u o u s run-up and t h a t ' 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 . 0 u r  161  became p r e s i d e n t of the new A l b e r n i company, c a p i t a l i z e d a t $ 1 , 5 0 0 , 0 0 0 and W. J . Van.Dusen, h i s a s s o c i a t e  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 9 2  Three years l a t e r , M a c M i l l a n and h i s a s s o c i a t e s , f i n a n c e d 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 h o l d i n g s on Vancouver I s l a n d by a c q u i r i n g the p r o p e r t y of the Campbell R i v e r Timber Company, near Menzies Bay, f o r about $ 9 5 0 , 0 0 0 . 3 3 °  i t was M a c M i l l a n ' s  f i r s t v e n t u r e i n buying timber not d i r e c t l y a s s o c i a t e d with a sawmill.  The Campbell R i v e r h o l d i n g s , c o m p r i s i n g  about 3 5 0 . 0 0 0 , 0 0 0 f e e t of t i m b e r , made M a c M i l l a n one of the t h r e e l a r g e s t timber h o l d e r s 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 M a c M i l l a n timber empire i n B r i t i s h Columbia. I n 1947, the M a c M i l l a n 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 n a t i o n , purchased the o p e r a t i o n s of the N o r t h Coast Timber  Co.,  L t d . , a t U c l u e l e t , the stands of the Maggie Lake Timber Company near Kennedy Lake, and a s m a l l s h i n g l e m i l l a t P o r t A l b e r n i , which was t h e r e a f t e r operated as p a r t of the ^1 A l b e r n i - P a c i f i c Lumber Company. 3 9 West Coast Lumberman, v o l . 6 3 , 2  Po  (October, 1 9 3 6 ) ,  30. 3 3 0  I b i d . , v o l . 66,  (March, 1939), p.  54.  B r i t i s h Columbia Lumberman, v o l . 3 1 , 1947), p. 8 0 . 3 3 1  (August,  162  The was  company's most s i g n i f i c a n t purchase,  however,  the b i g t i d e w a t e r s a w m i l l of the V i c t o r i a Lumber  Company, a t Chemainus from the Humbird i n t e r e s t s , f o r whom the M a c M i l l a n o r g a n i z a t i o n had been o p e r a t i n g i t on a management b a s i s . purchased  At the same time the parent company  s i x a d d i t i o n a l 1,000-ton cargo s h i p s f o r i t s  s u b s i d i a r y , the Canadian T r a n s p o r t Company, b u i l t a door f a c t o r y , i n s t a l l e d c h i p p i n g p l a n t s 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 t o timber, m i l l s , machinery and l o g g i n g o p e r a t i o n s .  I n t h a t year,  the H. R. M a c M i l l a n E x p o r t Company produced about t e n per cent of the Coast r e g i o n * s output of l o g s , about f o u r t e e n per cent of i t s lumber p r o d u c t i o n , f i f t y per cent of a l l the plywood manufactured i n the p r o v i n c e and about t h i r t y per cent of i t s doors.  T o t a l a s s e t s 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 M a c M i l l a n i n t e r e s t s amalgamated w i t h  B l o e d e l , Stewart & Welch L i m i t e d , another mammoth concern. The company r e s u l t i n g from t h i s h i s t o r y - m a k i n g 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 p r o v i n c e was known as M a c M i l l a n & B l o e d e l , Ltd.  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 c l o s e i n t e g r a t i o n , ranked w i t h the g i a n t s i n the  •332 | p.  93•  e g t  c o a s t Lumberman, v o l . 74-  (February, 194-7),  world's f o r e s t i n d u s t r y , comparable w i t h Weyerhaeuser and L o n g - B e l l i n the U n i t e d  States.  The B l o e d e l , Stewart & Welch o r g a n i z a t i o n o r i g i n a t e d e i g h t years b e f o r e  the M a c M i l l a n  company,  when, i n 1911? J ^ j L ^ . B l o e d e l , a Puget Sound lumberman, \\ formed a p a r t n e r s h i p 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 t h e c o n s t r u c t i o n o f r a i l r o a d s i n France d u r i n g the F i r s t Great War and b e t t e r known l o c a l l y as the b u i l d e r of the P r i n c e George t o P r i n c e Rupert s e c t i o n of the Grand Trunk P a c i f i c R a i l w a y . 333 noted r a i l r o a d c o n t r a c t o r .  Welch, t o o , was a  The B l o e d e l o r g a n i z a t i o n began l o g g i n g  operations  i n 1911 a t M y r t l e P o i n t and from t h a t beginning  expanded  g r a d u a l l y 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.  I n 1922, the company s t a r t e d t o operate  a t Union Bay, a f t e r which i t purchased timber l i m i t s a t Menzies Bay from the McLaren i n t e r e s t s of O n t a r i o , 1926  In  I t a c q u i r e d a n e w l y - b u i l t m i l l a t Great C e n t r a l ,  and v a s t a d j a c e n t stands of timber from the E s q u i m a l t and Ranaimo R a i l w a y ,  The f i r m e s t a b l i s h e d 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 l e a d i n g l o g g i n g o p e r a t i o n by p u r c h a s i n g  the  M i l l - Q u i n timber l i m i t s a t F r a n k l i n R i v e r 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  s a w m i l l a t P o r t A l b e r n i , adding a 12-machine s h i n g l e m i l l to i t i n 1937•  This a d d i t i o n , combined w i t h  i t s 24-machine s h i n g l e m i l l i n Burnaby made the company the l e a d i n g s h i n g l e operator I n 1951  i n B r i t i s h Columbia.  the p r i n c i p a l operations  of  the  M a c M i l l a n & B l o e d e l f i r m were l o c a t e d a t P o r t A l b e r n i and  on the A l b e r n i C a n a l ( l o g g i n g , s a w m i l l i n g , plywood  and pulp making)5 a t Nanaimo (pulp m i l l i n g ) ; Great C e n t r a l Lake ( l o g g i n g and Menzies Bay,  s a w m i l l i n g ) ; Northwest  Bay,  S a r i t a and Kennedy Lakes on Vancouver  I s l a n d , and S t . V i n c e n t ' s  Bay  on the mainland ( l o g g i n g ) .  I n the Vancouver area, where the head o f f i c e was  located,  the company produced lumber, plywood, doors, s h i n g l e s , 336 and p r e s t o - l o g s ( f u e l made from pressed m i l l w a s t e ) , 0  The second l a r g e concern was  the Alaska Pine  and  C e l l u l o s e Company, whose s t o r y has been l a r g e l y connected w i t h the f o r t u n e s of one p a r t i c u l a r k i n d of lumber -- hemlock, and w i t h one p a r t i c u l a r f a m i l y  —  the Koerners.  335 p.  BritigJbLColujnMa..Lumberman, v o l . 21, ( J u l y , 1927),  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 p r o d u c t i o n i s p e c u l i a r l y interesting.  U n t i l r e c e n t years hemlock has "been a  n o n e n t i t y i n most markets.  Blamed w i t h a l l the s h o r t -  comings of the E a s t e r n wood of the same name, i t was t r u l y a v i c t i m of h e r e d i t y . hemlock —  The f a u l t s of E a s t e r n  such as b r i t t l e n e s s , a tendency t o s p l i n t e r ,  and a coarse t e x t u r e earned a bad r e p u t a t i o n f o r a l l hemlock.  Improper h a n d l i n g of the Western species o n l y  served t o s t r e n g t h e n 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 u s e f u l n e s s of the wood. M i l l i o n s of f e e t of i t were l e f t unlogged and s t a n d i n g as they o c c u r r e d on the l a n d mixed w i t h other s p e c i e s because they could not be p r o f i t a b l y  marketed.337  One of the most urgent problems which c o n f r o n t e d the l o g g i n g i n d u s t r y of B r i t i s h Columbia arose from the l a r g e amount of Western hemlock found i n the v a s t stands of timber west of the c r e s t of the Cascade Range. The f a c t t h a t hemlock appeared i n I n c r e a s i n g p r o p o r t i o n 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  largely  owing t o the pioneer work of Messrs. Leon and Walter Koerner, the founders of the Alaska P i n e Company, of Vancouver, t h a t a l a r g e and Important market f o r once-despised wood was developed.  33? Tlmberman, v o l . 25,  (December, 1923)? P°  102.  166  The Koerner f a m i l y had been p r o d u c i n g and marketing timber f o r f o u r g e n e r a t i o n s —  under the  empire of F r a n z Joseph and then i n the C z e c h o s l o v a k i a of Hasaryk and Benes.  They enjoyed i n t e r n a t i o n a l  trade c o n t a c t s t h a t 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 U n i t e d Kingdom,  ' Their firm,  the J . Koerner Lumber I n d u s t r i e s L i m i t e d , 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 s a w m i l l s of C z e c h o s l o v a k i a , P o l a n d , and Germany.-^'' I n 1939,  a f t e r H i t l e r had Invaded C z e c h o s l o v a k i a ,  Leon and W a l t e r 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 s e t about e s t a b l i s h i n g  the A l a s k a P i n e Company, L i m i t e d , an o r g a n i z a t i o n based upon the c o n v i c t i o n t h a t Western hemlock, when p r o p e r l y d r i e d , i s not i n f e r i o r to D o u g l a s - f i r f o r most s t r u c t u r a l purposes. a t $250,000.  The company was  incorporated  The d i r e c t o r s were Leon Koerner, George A.  Cassady and A. R. M a c f a r l a n e .  Sees Brown, Roy W., "He gave B. C. an i n d u s t r y " , Vancouver Sun, (December 30, 1952), p. 4 . 339 p o r t e r , M. "Leon Koerner's one-man giveaway program", Macleans, v o l . 69, (August 4, 1956), p. 34. 5  167  The f i r s t move of Mr. Leon Koerner, was  to  c o u n t e r a c t the p r e j u d i c e t h a t p r e v a i l e d a g a i n s t 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 p e r m i s s i o n to market hemlock under an o l d and seldom used name:  Alaska p i n e .  " A l a s k a p i n e " 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 a t 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 h o l d e r s i n the Northwest.34°  Then, having  changed the l a b e l on the product, Koerner change the product i t s e l f .  He purchased  proceeded to the p r o p e r t y  of the I n t e r n a t i o n a l Wood Products Company of Westminster,  New  and t h e r e I n s t a l l e d e l a b o r a t e a i r - d r y i n g  James J . H i l l , along w i t h Weyerhaeuser, the Minnesota timber k i n g , c o n t r o l l e d hundreds of thousands of acres of t i m b e r l a n d along the r o u t e of h i s r a i l r o a d , i n the westernmost s e c t i o n s of which hemlock was w e l l r e p r e s e n t e d . F i n d i n g E a s t e r n p r e j u d i c e a g a i n s t hemlock so s t r o n g t h a t i t s i n t r o d u c t i o n i n t o E a s t e r n markets was v e r y d i f f i c u l t , H i l l suggested t h a t a new name be found f o r the s p e c i e s . Frank B. C o l e , the e d i t o r of the West Coast Lumberman suggested "Alaska p i n e " . West Coast Lumberman^ v o l . 3, (November, 1892), p. 9. E a s t e r n lumber j o u r n a l s charged Western lumber i n t e r e s t s w i t h attempting to d e c e i v e the p u b l i c by adopting a m i s l e a d i n g 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 a c c u s a t i o n . F o r , u n l i k e the Koerners a t a l a t e r date, H i l l and Weyerhaeuser were content t o merely change the name of t h e i r product: they d i d 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. I n 1399, f o r example, seven years a f t e r the b i r t h of Alaska p i n e , Washington and Oregon produced only about a q u a r t e r of a m i l l i o n f e e t and i n c r e a s e s 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 t o season and d r y t h o r o u g h l y the hemlock he produced. to l a r g e Investments  H i s example s e t the t r e n d  i n k i l n expansion.  The new d r y  hemlock commanded a ready market I n both the U n i t e d S t a t e s and i n the expanding home market. The next t e n years saw the Koerner  interests  expand r a p i d l y to Include timber l a n d s , l o g g i n g o p e r a t i o n s , 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 l a r g e i n d u s t r i a l mergers which  a l l o w e d f u l l e r advantage t o be taken of the t r e e crop overtook the Koerners  a f t e r o n l y l i t t l e more than a  decade of o p e r a t i o n as a f a m i l y company.  On Hay 15?  1951?  the Alaska P i n e group of companies merged w i t h the B r i t i s h Columbia Pulp and Paper Company, a s u b s i d i a r y •of the p o w e r f u l A b l t l b i Pulp and Paper Company of Toronto, t o form. Alaska P i n e and C e l l u l o s e , L i m i t e d . Alaska P i n e and C e l l u l o s e L i m i t e d , owned i n e q u a l p a r t s 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 P u l p and Paper Company, L i m i t e d , i n c l u d i n g i t s pulp m i l l s a t P o r t A l i c e and Woodfibre and I t s timber lands and l o g g i n g o p e r a t i o n s ; Alaska P i n e Company L i m i t e d ; U n i v e r s a l Lumber and Box Company, L i m i t e d ; Alaska Pine S a l e s , L i m i t e d ; Alaska P i n e T r a d i n g , L i m i t e d ; Northern Timber Company, L i m i t e d ; Pioneer Timber Company L i m i t e d ;  169 Jones Lake Logging Company; Empire Machinery Company, L i m i t e d ; Alaska P i n e P u r c h a s i n g ,  L i m i t e d ; Canadian  Puget Sound Lumber and Timber Company L i m i t e d ; and Western F o r e s t 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 t o 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 P i n e Company r e c e i v e d from the paper company a l l timber not r e q u i r e d f o r pulpwood.The occurred  3  u l t i m a t e r a t i o n a l i z a t i o n of t h i s  industry  i n 1954- when e i g h t y per cent of the Alaska  P i n e and C e l l u l o s e , L i m i t e d , s t o c k was a c q u i r e d by Rayonier, Incorporated,  of New Y o r k , a n d  the c o n t r o l  of the l a r g e company passed i n t o the hands of American. Industrialists.  W  F o u r t e e n years of r a p i d expansion  w i t h i n t h e i n d u s t r y had witnessed f i r s t , the establishment of a f a m i l y company, then i t s merger w i t h a l a r g e n a t i o n a l o r g a n i z a t i o n , and f i n a l l y i t s i n t e g r a t i o n as a p a r t 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 t h e A b i t i b i o r g a n i z a t i o n made I t the o n l y Canadian company i n the i n d u s t r y w i t h Canada-wide operations, A b i t i b i paid" about $20,000,000 f o r the p r o p e r t i e s i n 1950. s>43 p o r t e r , 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 w o r l d .  Y  r  The Canadian Western Lumber Company, the t h i r d g i a n t of the. i n d u s t r y , was  i n c o r p o r a t e d i n 1910.  In  / /  t h a t same year i t took over the c h a r t e r of the F r a s e r R i v e r Lumber Company, p o p u l a r l y known as F r a s e r M i l l s , which has a l r e a d y been d e s c r i b e d i n some d e t a i l i n a preceding chapter. I n i t s i n i t i a l stages t h i s l a r g e and  highly  s u c c e s s f u l e x p o r t i n g 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. P e t e r Jans en of B e a t r i c e , Nebraska > McRae was  succeeded  i n the dominant p o s i t i o n , i n the  f i r m i n 1914- by J . D. McCormack, a W i s c o n s i n lumberman. Having w i t n e s s e d the r a p i d d e p l e t i o n of the f o r e s t s of h i s n a t i v e s t a t e , McCormack showed an understandable i n t e r e s t i n o b t a i n i n g l a r g e t r a c t s of s t a n d i n g t r e e s f o r h i s Canadian company. He purchased  h e a v i l y f o r the years ahead i n the  Crown-grantee E s q u i m a l t and Hanaimo f o r e s t s of Vancouver I s l a n d , where the l a n d went w i t h the f o r e s t and was f o r f e i t to the Crown when the timber was removed.  not His  s u c c e s s o r , Henry Mackin, perpetuated t h i s p o l i c y t o v e r y gocd e f f e c t . Between 1910 and 1950  the company a c q u i r e d other  171  operations  engaged I n v a r i o u s phases of lumber pro-  d u c t i o n , u n t i l i t c o u l d o f f e r a complete s e r v i c e from l o g g i n g to the f i n i s h e d d i s t r i b u t e d p r o d u c t .  It  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 m i l e s of r a i l r o a d s , branch l i n e s and  t r u c k roads;  the Canadian Tugboat Company, L i m i t e d , which towed logs from Vancouver I s l a n d t o the F r a s e r M i l l s ; the  Fraser  M i l l s Sash, Door and S h i n g l e Company L i m i t e d , which operated a plywood p l a n t , s h i n g l e m i l l and door p l a n t a t F r a s e r M i l l s ; and the Crown Lumber Company, L i m i t e d , the S e c u r i t y Lumber Company, L i m i t e d and Coast Lumber Yards, L i m i t e d .  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 s u p p l i e s . 344 ^ Impressive though t h i s complete f o r e s t products s e r v i c e was,  i t was  c h i e f l y the l a r g e s i z e of  company's raw m a t e r i a l resources  the  on Vancouver I s l a n d  t h a t a t t r a c t e d the a t t e n t i o n of J . D. Z e l l e r b a c h , of the American P a c i f i c Coast's l a r g e s t lumber The  c e r t a i n t y t h a t these h o l d i n g s need never be  one  operators. forfeited  t o the s t a t e 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 t o h i s material-hungry  P a c i f i c Coast o p e r a t i o n s .  In  ^ Canadian Western Lumber Company, Report, F i n a n c i a l P o s t C o r p o r a t i o n S e r v i c e , Toronto, 19527 P»  2.  172  June, 1953  5  h i s company, the Crown Z e l l e r b a c h C o r p o r a t i o n  of San F r a n c i s c o , gained a m a j o r i t y i n t e r e s t i n the Canadian company through an exchange of s t o c k and the Canadian Western Lumber Company became a d i v i s i o n of Crown Z e l l e r b a c h Canada, L i m i t e d , w i t h e f f e c t i v e c o n t r o l h e l d i n San Francisco.34-5 The combined timber r e s o u r c e s of the Canadian Western and the Crown Z e l l e r b a c h p r o b a b l y made the Z e l 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 h o l d i n g company on the P a c i f i c Coast, surpassed o n l y by the Weyerhaeuser h o l d i n g s .  Crown Z e l l e r b a c h now owned  P a c i f i c Coast stands and p u l p and paper m i l l s from the Queen C h a r l o t t e s t o Southern C a l i f o r n i a . The s t o r y of the Canadian Forest. P r o d u c t s , L i m i t e d , 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 H a r v e s t e r Company, of Chicago, bought the a s s e t s of the defunct Beaver Cove Lumber and P u l p Company from W. H. White of Boyne C i t y , M i c h i g a n , f o r s i x m i l l i o n dollars.34-6  xirie p r o p e r t y i n c l u d e d timber and pulp wood  t r a c t s on the ITimpkish R i v e r , s i t u a t e d on the east coast of Vancouver I s l a n d , and a m i l l a t Beaver Cove. L i t t l e a c t i v i t y of note occurred d u r i n g the  3 ? Vancouver P r o v i n c e , "(June 16, 4  3 4 6  1953)? p. 19.  Tiroberman. v o l . 3 0 , (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 a g a i n i t was.  war-time demand t h a t u n d e r l a y the expansion of t h i s company.  I n November, 1941,  Ossian Anderson, the  p r e s i d e n t of Puget Sound Pulp and Timber Company, of B e l l i n g h a m , Washington, a c q u i r e d the p r o p e r t y from the I n t e r n a t i o n a l H a r v e s t e r Company along w i t h the a d j a c e n t h o l d i n g s of the Wood-English Company, and of Timber Investments, L i m i t e d .  These purchases i n v o l v e d  the a c q u i s i t i o n of one hundred thousand  acres of f o r e s t  a t 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 r e t a i n e d the name of Canadian F o r e s t Products Company, L i m i t e d , f o r t h e i r new  subsidiary,  Ossian Anderson became p r e s i d e n t and. d i r e c t o r , w h i l e F r e d Stevenot, of San F r a n c i s c o became chairman director. ^" 3  and  3  I n May,  1942,  t h i s company i n c r e a s e d i t s h o l d i n g s  by a c q u i r i n g eleven thousand  a d j a c e n t acres from  M i c h a e l F, Cudahy of Milwaukee,  This a c q u i s i t i o n  c o n s i s t e d of f o u r t e e n crown grants which the Cudahy f a m i l y had obtained f i f t y years p r e v i o u s l y i n the e x p e c t a t i o n t h a t the S s q u i m a l t and Nana lino Railway would be extended  i n t h a t d i r e c t i o n , and two l e a s e s granted  B r i t i s h Columbia Lumberman, v o l , 25, (December, 1941), p. 3 3 . . 3 4 7  3 4 8  I b i d . , v o l . 25,  (November, 1941), p.  27.  174  i n 1896.  This p r o p e r t y was f i r s t a c q u i r e d on a  stumpage b a s i s ( t h a t i s , an agreed-upon p r i c e was p a i d by the company f o r every thousand f e e t of timber i t took out of the Cudahy h o l d i n g s ) but a f t e r a decade of c u t t i n g , the g i a n t f i r m bought the t r a c t s o u t r i g h t . By 1952 t h e company had expanded t o i n c l u d e I n a d d i t i o n t o I t s e x t e n s i v e Vancouver I s l a n d f o r e s t h o l d i n g s , a s a w m i l l and a s h i n g l e m i l l a t Vancouver, a plywood p l a n t a t 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 F o r e s t Products was the s m a l l e s t of the g i a n t s and a comparative latecomer t o the scramble f o r the f o r e s t s of the p r o v i n c e . I n January, 1946,  The company was formed  by Edward P. T a y l o r , the head of the  Argus C o r p o r a t i o n , of Toronto.  He brought  s e v e r a l i n d u s t r i e s t o form, the new company.  together They i n c l u d e d  the V i c t o r i a Lumber Company, a t Chemainus, which T a y l o r 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 , a t Cowichan Lake; Hammond Cedar Company, a t Hammond; Cameron Lumber Company, a t V i c t o r i a ; and the S i t k a Spruce Company, of Vancouver. Among the s m a l l e r f i r m s i n c l u d e d i n the t r a n s a c t i o n  3 4 9  35°  West Coast Lumberman; v o l . 69, (May, 1942), p. ' Vancouver Sun,  (June 17, 1952), p. 10.  were Cameron B r o t h e r s Timber Company; HemmingsenCameron Company; Osborne Bay Timber Buyers, L i m i t e d ; Renfrew H o l d i n g s , L i m i t e d ; R e a l t y H o l d i n g s , L i m i t e d . These p r o p e r t i e s were acquired  along w i t h s e v e r a l  l o g g i n g 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 S c o t t Paper Company of C h e s t e r , P e n n s y l v a n i a , arranged  to take over  eventual  c o n t r o l o f the o r g a n i z a t i o n . The S c o t t Company was a l e a d i n g manufacturer  o f s a n i t a r y paper products and  other k i n d s of paper i n the U n i t e d S t a t e s ,  The c o n t r o l  of I t s s u b s i d i a r y ' 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 p e r p e t u a l supply of p u l p .  I t can be r e a d i l y seen t h a t much of the s t i m u l u s for  the t r e n d to i n t e g r a t i o n i n t h i s p e r i o d came from  the enormous expansion i n the pulp and paper I n d u s t r y . Inasmuch as t h i s i n d u s t r y i s a study i n i t s e l f , q u i t e a p a r t from the lumber i n d u s t r y , no attempt w i l l be made here t o 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 i n t e g r a t e d 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 , t h a t a t l e a s t a c u r s o r y account  B r i t i s h Cp2usJaSaJ?_org^^ ort, F i n a n c i a l Post "Corporation S e r v i c e , Toronto, ISb?, P» 1»  176  of the development of the pulp and paper i n d u s t r y seems essential, 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 a t A l b e r n i i n 1894 by W i l l i a m Hewartson, a Yorkshireman.  C a l l e d the B r i t i s h Columbia P u l p 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 p i o n e e r I s l a n d lumberman, Thomas S h o t b o l t , d r u g g i s t and cannery f i n a n c i e r , James Thomson, J . S. Yates and Joshua D a v i e s . entrepreneurs were V i c t o r i a  A l l of these e a r l y day  businessmen.3?  2  W i t h high optimism Hewartson imported and i n s t a l l e d machinery from England I n the e x p e c t a t i o n t h a t h i s m i l l would become one of the important i n d u s t r i e s of the C o a s t ,  Enough rags and j u t e t o s t a r t p r o d u c t i o n  were a l s o imported, from the Old World,  A t o t a l of  177?000 was i n v e s t e d i n equipment and b u i l d i n g —• a not I n c o n s i d e r a b l e sum f o r t h a t day.  A l l went w e l l  u n t i l the o r i g i n a l s u p p l y of raw m a t e r i a l was exhausted. Then the Coast was scoured f o r r a g s , but w i t h o u t a v a i l , f o r the ' n i n e t i e s were years of economic d e p r e s s i o n on the Coast and l i t t l e c l o t h i n g was d i s c a r d e d .  Inasmuch  as the promoters had o r i g i n a l l y intended t o make paper from p u l p , a pulp-making p l a n t was s e t up.  A reasonably  l a r g e q u a n t i t y of wrapping paper was produced,-"  0  but the  352 C a r m i c h a e l , H., "Pioneer days I n 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  o p e r a t i o n was nbt economical. designed f o r the manufacture paper o n l y . 5 4 3  T  >  ae  m  i  l  l  c  ]_  The machinery was of r a g paper and r a g  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 s e r i o u s attempt t o I n t e r e s t 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 e a s t e r n s t a t e s was being I n c r e a s i n g l y felt.  The expanding markets of A u s t r a l i a , South  America,  the O r i e n t , C a l i f o r n i a , Oregon and Washington, coupled w i t h the Imminent c o n s t r u c t i o n of the Panama C a n a l aroused new i n t e r e s t i n the v a s t pulp-wood f o r e s t s of British  Columbia. The n a t u r a l advantages  obviouss  of the p r o v i n c e seemed  i t s pulp-wood timber was not o n l y g r e a t e r i n  q u a n t i t y than t h a t of Washington or Oregon but i t was a l s o more advantageously s i t u a t e d , the b u l k of i t being w i t h i n a few m i l e s of i t s many thousand m i l e s of coast line.  An abundance of water power, near t i d e w a t e r and  cheap t o develop, completed the p i c t u r e .  Even so,  c a p i t a l t o develop even the c h o i c e s t s i t e s was not readily available. To encourage i n v e s t o r s t o e s t a b l i s h pulp and  p. 28.  3  54 Western Lumberman, v o l . 14, (May, 1917),  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 1902,  e n a b l i n g i n v e s t o r s to o b t a i n l a r g e  t r a c t s of pulp wood and to hold them f o r twenty-one years w i t h l i t t l e revenue to the government,355 <vh ±s x  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 t e m p t a t i o n s p e c u l a t o r s to o b t a i n l i m i t s and  hold them f o r p u r e l y  s p e c u l a t i v e purposes, the expense of survey and being the only disbursements  cruising  necessary.  The government's generous o f f e r came a t opportune time.  to  The p e r i o d 1903  to 1913  was  an  one  of  h i g h optimism i n B r i t i s h Columbia and the West g e n e r a l l y , and s p e c u l a t i o n was beginning  i n the very a i r of a p r o v i n c e  to experience  i t s f i r s t p e r i o d of u n c o n t r o l l e d  boom. S e v e r a l companies were formed almost immediately and they s e l e c t e d 354,399 a c r e s ^ before the generous 3  laws were repealed and r e p l a c e d w i t h others of a more s t r i n g e n t nature.  Under the new r e g u l a t i o n s the annual  r e n t a l of a pulp l e a s e was leasee was  two cents an a c r e , and  the  r e q u i r e d to e r e c t 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.  33.  25® s t a t i s t i c a l r e c o r d ox the  I n d u s t r v , p.  44.  TDUID  and caper  179  r e p r e s e n t a t i v e of s e v e r a l s p e c u l a t i v e investments i n the p u l p and paper i n d u s t r y of the time. i n S e a t t l e , i n May,  1904,  I t was  by A. E. W i l l i a m s ,  formed  city  a t t o r n e y of S e a t t l e ; R. N. Thompson, a lacoma businessman; and  f o u r 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 R i v e r f o r the o s t e n s i b l e purpose of producing pulp and paper,357  ^ Norwegian colony,  f o u r hundred persons, which was  l o c a t e d near the  of site  of the proposed m i l l , would have c o n s t i t u t e d an e x c e l l e n t source of labor.358 I t i s d o u b t f u l , however, t h a t the founders  intended  to produce p u l p ; i n s t e a d w i t h Yankee shrewdness they recognized  the p r o v i n c e ' 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 o p p o r t u n i t y s p e c u l a t i o n alone.  to p r o f i t In  They were not d i s a p p o i n t e d .  I t was  s a i d t h a t w i t h i n a p e r i o d of two years over $1,500,000 of E a s t e r n c a p i t a l was never b u i l t .  s u b s c r i b e d f o r the m i l l t h a t  A l l c a p i t a l was  was  channeled through the  F i r s t N a t i o n a l Bank of S e a t t l e , the t r e a s u r e r of the 359 company.-^  v o l . 15,  p.  18.  357  y  West Coast and Puget Sound Li^bjerman, (June, 1904)","p. 612.  358  c o l o n i s t , ( A p r i l 6,  1906), p.  359  Lumberman and C o n t r a c t o r ,  1.  v o l . 3,  (May,  1906),  180  I n 1909 the B e l l a Coola Company s o l d I t s l e a s e s to the Ocean F a l l s Company, organized, i n t h a t same year by the e n e r g e t i c L e s t e r W. David, of S e a t t l e , w i t h the l o c a l c o o p e r a t i o n o f t h e Honorable Edgar Dewdney. Dewdney had h i g h ambitions f o r the B e l l a Coola a r e a , one of which was t o b u i l d a 250-mile r a i l r o a d to connect i t w i t h F r a s e r Lake and the country's r a i l r o a d system. The  c o l l a p s e of the boom i n 1913 e f f e c t i v e l y disposed  of t h a t p l a n . David, the head of David Investment Company, of S e a t t l e ,  p l a y e d a prominent r o l e i n e s t a b l i s h i n g  s e v e r a l e a r l y B r i t i s h Columbia i n d u s t r i e s .  H i s success  i n o b t a i n i n g c a p i t a l f o r the development of the F r a s e r M i l l s has a l r e a d y been d i s c u s s e d .  I n 1909 David  v i s i t e d England, where he persuaded. H a m i l t o n Benn, the E n g l i s h p a r l i a m e n t a r i a n and f i n a n c i e r , and s e v e r a l p a p e r merchants t o supply c a p i t a l e q u i v a l e n t t o s e v e r a l m i l l i o n d o l l a r s f o r the e s t a b l i s h m e n t of the new pulp  industry.3°1  T h e i r o b j e c t was t o supply customers i n the F a r E a s t and South America from B r i t i s h Columbia, r a t h e r than from London.3^  2  D e s p i t e t h i s seemingly f o r t u n a t e  b e g i n n i n g , the attempt proved a f a i l u r e .  Insufficient  Lumberman and C o n t r a c t o r , v o l . 3 , (May, 1906), p. 18. 36l Western Lumberman, v o l . 1?, ^62  (August, 1920), p. 7  Columbia R i v e r and. Oregon Timberman, v o l . 7, (January, 1905), p. 29.  181  developmental c a p i t a l has been g i v e n as the reason, I t was  c l o s e d down by the London holders  debentures I n Fay,  1913,  of I t s  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 l e a s e s i n the e x p e c t a t i o n eventual production.  The p r o p e r t y was  of  s o l d to the  Crown-Willamette Paper Company of P o r t l a n d , Oregon, which was San  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  Francisco. I n 1915  the name of the firm, was  P a c i f i c M i l l s , Limited.  The new  changed t o  p r o p r i e t o r s soon added  a paper m i l l and a c h e m i c a l pulp m i l l to the  property;  and years l a t e r they b u i l t a c o n v e r t i n g p l a n t i n Vancouver,  ks a s u b s i d i a r y of Crcwn-Y7illamette,  the  f o r t u n e s of P a c i f i c M i l l s , L i m i t e d , shone b r i g h t indeed. W i t h 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 o r g a n i z a t i o n 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 f o u r decades to produce a long l i s t of paper I n 1954  the name of the company was  products.  changed to Crown-  Z e l l e r b a c h Canada, L i m i t e d , i n order to conform w i t h t h a t of the American p a r e n t company, which had  also  undergone a change of name but not of ownership.  Control  of the l a r g e e n t e r p r i s e had s h i f t e d , however, from  3°°  Western Lumberman, v o l . 10,  (June, 1913). p»  37"  182  P o r t l a n d to S a n ' F r a n c i s c o . The  O r i e n t a l Pulp and Paper Company was  another  p i o n e e r attempt by E n g l i s h I n v e s t o r s t o produce pulp from c o a s t a l f o r e s t s .  T h i s company, which  an 84,180-acre l e a s e a t Swanson Bay,3^4  w a s  controlled underwritten  by the Canadian F i n a n c i a l S y n d i c a t e , founded In London 365 i n the s p r i n g 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 I n B r i t i s h Columbia by .J. M. Mackinnon, amounted t o #300,000 over the next two  years.3^  I n January, 1905? the Canadian P a c i f i c Pulp and Paper Company, another London-backed group took over the l e a s e s and p r o p e r t y of the f i r m which had expended its  f u l l c a p i t a l a l l o t m e n t w i t h o u t producing an ounce  of p u l p .  But the new  company f a r e d no b e t t e r d e s p i t e  the f a c t t h a t i t had a guaranteed  market i n England  and 367  a c o n s i d e r a b l e number of orders on i t s i n i t i a l  file.  I t d i d , however, produce the f i r s t pulp i n B r i t i s h i n September, 1909.  Columbia,  I t operated f o r s e v e r a l months  b e f o r e c l o s i n g down f o r u n d i s c l o s e d reasons. 3^ p.  4  S t a t i s t i c a l Record of the Pulp and Paper I n d u s t r y ,  44.  Columbia R i v e r and Oregon Timberman, v o l . 6, (November, 1904), p. 32. '  366  Timberman, (January, 1905)? p.  3^7  Loc. c i t ,  54.  183 Once a g a i n a new group of E n g l i s h I n v e s t o r s were found t o take over the i d l e p r o p e r t y and i t s name was changed t o the Swanson Bay F o r e s t s , Wood, Pulp and Paper Company, L i m i t e d . ^ 3  The new E n g l i s h c o n t r o l l e r s  f a r e d no b e t t e r than the o l d , and once a g a i n , I n 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 t h e Empire Pulp and Paper M i l l s . I n 19185 a f t e r expending v a s t sums, London industrialists  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 t o  operate an I n d u s t r y f a r removed g e o g r a p h i c a l l y from. London and even f a r t h e r removed from c o n d i t i o n s which they c o u l d control.  The f i r m passed i n t o the p o s s e s s i o n o f two "^69 Canadian papermen, George and W. H. Whalen. y  The Whalen b r o t h e r s were themselves pioneers i n the b u s i n e s s . migrated  N a t i v e s of P o r t A r t h u r , O n t a r i o , they  t o B r i t i s h Columbia e x p r e s s l y t o i n v e s t i g a t e  the lumber I n d u s t r y of the p r o v i n c e . - ^ backing of E a s t e r n Canadian c a p i t a l ,  With the  the Whalens e r e c t e d  the B r i t i s h Columbia S u l p h i t e Company L i m i t e d on Howe Sound i n 1 9 1 1 ,  3 7 1  and by February  of the f o 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 s u l p h i t e pulp  3  ^  8  Western Lumberman, v o l . 9, (March, 1912), p. 25*  B r i t i s h Columbian 1919-20, Sun P u b l i s h i n g Company, Vancouver, 1920, p. 31. 3 6 5  37° p. 62. 3 7 1  West Coast Lumberman^, v o l , 64, (March, 1937). \ ^ Western Lumberman, v o l . 9>\ (March, 1912), p. 33.  184  daily.  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 w o r l d of pulp and paper.  T h e i r a c q u i s i t i o n of the a i l i n g Empire Pulp and  Paper Company I n 1918 the  rounded out the development of  l a r g e s t p u l p - p r o d u c i n g o r g a n i z a t i o n of the e r a . R a p i d expansion, however, had s t r a i n e d the  f i n a n c e s of the company.  The world's markets were I n  a most u n s e t t l e d s t a t e d u r i n g 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 h i g h p o i n t of $114 a t o n i n 1920  to |68 i n 1921.  The c o l l a p s e of the  Japanese market f o l l o w i n g the earthquake of 1923  further  u n s e t t l e d 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 O r i e n t f o r custom. The Whalens took t h e i r f i r s t step to a v e r t c o l l a p s e i n 1919,  when S i r George Bury, the v i c e - p r e s i d e n t  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 I n d u s t r y ,  Bury made  s e v e r a l much needed changes but remained h e l p l e s s i n the  f a c e of f a l l i n g p r i c e s f o r p u l p , 372 A r e c e i v e r was appointed i n September,  1923,  The E a s t e r n Canadian bondholders bought i n the p r o p e r t i e s at the j u d i c i a l s a l e held i n 1925  and i n c o r p o r a t e d a  872 s t a t i s t i c a l Record of the Pulp and Paper I n d u s t r y , PT~"4O\  185  new company under the name B r i t i s h Columbia Pult> and Paper Company, L i m i t e d .  They abandoned the Swanson  Bay m i l l s h o r t l y t h e r e a f t e r 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 w i t h the Koerner f a m i l y ' s A l a s k a P i n e Company t o form the A l a s k a P i n e and C e l l u l o s e Company, which was I n t u r n a c q u i r e d by R a y o n i e r , I n c o r p o r a t e d , of New York. Another e a r l y name i n the I n d u s t r y was the Western Canada P u l p and Paper Company L i m i t e d , which was i n England i n 1904.373  floated  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. P r e p a r a t i o n s were made by the d i r e c t o r s of the company, l e a d i n g paper manufacturers of London, t o develop t h e i r 163,000 a c r e s of l i m i t s a t P o w e l l Lake, but f o r u n d i s c l o s e d reasons n o t h i n g came of the v e n t u r e .  Perhaps  they were too f a r removed from the P a c i f i c Coast t o judge the need of the area a c c u r a t e l y ,  Whatever the  reason, the p r o p e r t y passed i n t o the hands of the Canadian I n d u s t r i a l Company, which s o l d 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 o p e r a t o r s of M i n n e a p o l i s , whose  373 West Coast Lumberman, v o l . 16, p.  (June, 1905),  573.  1920,  374 B r i t i s h Columbia, 1919-19.20, Vancouver p. 31.  Sun,  186  f i r m , the Brooks-Scanlon  Lumber Company, of M i n n e a p o l i s ,  has a l r e a d y been mentioned i n c o n n e c t i o n w i t h other l a r g e l o c a l timber investments.  The new  owners renamed i t  P o w e l l R i v e r Paper Company, L i m i t e d , and proceeded to t r a n s f o r m i t i n t o one of the most s u c c e s s f u l I n d u s t r i a l e n t e r p r i s e s i n the p r o v i n c e . Surveys of the l i m i t s were made i n 1910, development was 1912,  slow a t f i r s t ; i t was  not u n t i l A p r i l ,  t h a t the f i r s t shipment of paper was  v a r i o u s P a c i f i c Coast c i t i e s .  but  dispatched to  Rapid development f o l l o w e d  i n the war y e a r s , and w i t h i n a decade newspapers from P r i n c e Rupert to Los Angeles and from F o r t Worth, Texas, to Buenos A i r e s were u s i n g thousands of tons of the  product.  C o n t r o l 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 p a r t n e r s 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 I n the Cr own-Wi1la me 11 e Company, •376 of P o r t l a n d , Oregon. The  company expanded g r e a t l y d u r i n g the 1940's  under the s t i m u l a t i o n of a war economy.  I n 1947 a l a r g e  h y d r a u l i c b a r k e r , the f i r s t of i t s k i n d i n Western Canada was  p.  i n s t a l l e d as p a r t of a f o u r - y e a r 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 ,  3 7 6  I b i d . , v o l . 17, (August, 1920), p.  (October,  40. 71.  1926),  18?  m o d e r n i z a t i o n program. million  d o l l a r s was  4 f u r t h e r investment  of  made I n replacement and  i n the f o l l o w i n g f i v e y e a r s , and by 1953 had become the world's  fifteen  modernization  the company  l a r g e s t newsprint m i l l w i t h a  p r o d u c t i o n r e c o r d of 1,219.9 tons i n one 24-hour p e r i o d .  3 7 7  The t r e n d 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 P o w e l l R i v e r Company to e s t a b l i s h l o g g i n g o p e r a t i o n s and s a w m i l l s which would g i v e i t access  to  e x t e n s i v e pulp-wood h o l d i n g s and a t the same time d i v e r t i t s more v a l u a b l e l o g s i n t o lumber.  By 1951?  ten  l o g g i n g o p e r a t i o n s served the company, one as f a r d i s t a n t as Massett  520 m i l e s from the company's m i l l s . - "  Inlet,  The m i l l a t P o r t M e l l o n , now  owned by the Howe  Sound P u l p D i v i s i o n of Canadian F o r e s t Products L i m i t e d , was  e r e c t e d In 1908  a t 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 I n the w i n t e r of 1909  to  produce a s p o r a d i c seven tons of m a n i l l a paper and tons of chemical pulp d a i l y .  fifteen  I t s a s s e t s were e x t e n s i v e ,  f o r i n a d d i t i o n t o i t s own m i l l and l i m i t s a t P o r t M e l l o n , i t owned 55.569 acres of f o r e s t t r a c t s on Sound, o r i g i n a l l y  the p r o p e r t y of the defunct  Quatsino  Quatsino  S t a t i s t i c a l r e c o r d of the pulp and paper i n d u s t r y , p. 4o. 3 7 7  3 7 8  Lumberman, v o l . 78,  ( A p r i l , 195D,  p.  62.  188  Power and Pulp Company. A f t e r o n l y two years of o p e r a t i o n t h i s B r i t i s h owned company c l o s e d down f o r l a c k of c a p i t a l to make needed improvements.  On August 18, 1910,  the  mill  w i t h a l l I t s l o c a l a s s e t s and those on Quatsino Sound passed i n t o the c o n t r o l of a group headed by Joseph M a r t i n , K. C.,  one-time premier of B r i t i s h Columbia,  T. F. P a t e r son, an e x - l i e u t e n a n t - g o v e r n o r , ^80 a l o c a l lumberman, and J . S. Harvey."'  W.  I . Paterson,  Once again  agreement i n c l u d e d the t r a n s f e r of the a s s e t s and  the  leases  of the Ouatsino Pulp and Paper Company. I n 1910  the C o l o n i a l Pulp and Paper Company, i n  which George F. Whalen f i g u r e d prominently, both p r o p e r t i e s . was  The  acquired  f i n a n c i a l h e a l t h of t h i s company  never b e t t e r t h a n d o u b t f u l and the f i r m underwent  many r e o r g a n i z a t i o n s i n the next t h i r t y y e a r s . the  "twenties and  During  ' 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 c o n d i t i o n s i n the O r i e n t and A u s t r a l i a were f a v o r a b l e and i t sagged when c o n d i t i o n s were not.  After  the Japanese i n v a s i o n of China, i t c l o s e d down t e m p o r a r i l y . I n June, 1939,  the Columbia R i v e r Paper M i l l s ,  of  379 u n i t e d S t a t e s 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 p.  20.  8 0  Western Lumberman, v o l . 7,  (September, 1910),  189  Vancouver, Washington, purchased the a s s e t s o f the company w i t h $500,000 worth of "bonds and r e o r g a n i z e d i t under the name of Vancouver K r a f t Company, L i m i t e d . C h i e f f a c t o r s i n the company were the C. E. L e a d b e t t e r i n t e r e s t s of Oregon. I n 1941, the Sorg Paper Company of M i d d l e t o n , Ohio, f i n d i n g t h e i r source of Swedish p u l p c u t o f f owing to the war, purchased the m i l l as a means of o b t a i n i n g 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 p u l p became a v a i l a b l e once a g a i n a f t e r the c e s s a t i o n of h o s t i l i t i e s , the p a r e n t company c l o s e d the p l a n t down.  I t was purchased i n 1951 by Canadian F o r e s t  P r o d u c t s , L i m i t e d , as a p r o c e s s i n g m i l l t o handle thewaste r e c o v e r e d from the lumber o p e r a t i o n s of i t s 382 Ebnrne S a w m i l l s i n Vancouver.3  With the i n c r e a s e d demand f o r pulp and paper a f t e r 1945? other l a r g e p u l p manufacturers entered the province.  I n 1952 I t was announced t h a t C e l g a r  Development Company L i m i t e d , a wholly-owned s u b s i d i a r y of Canadian Chemical and C e l l u l o s e Company, L i m i t e d , would e x p l o i t the Arrow Lakes r e g i o n 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 i n t e g r a t e d f o r e s t i n d u s t r y c e n t r i n g on  p. 54.  West Coast Lumberman, v o l , 66, ( J u l y ,  1939)  S t a t i s t i c a l r e c o r d 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 P o w e l l R i v e r Company and the A m e r i c a n - c o n t r o l l e d Aluminum Company of Canada, e r e c t e d 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 i n d u s t r y a t K i t i m a t , where the Aluminum Company of Canada e s t a b l i s h e d a l a r g e aluminum p l a n t based upon r e a d i l y a v a i l a b l e cheap hydro-power,384 I n 1951,  the Columbia  C e l l u l o s e Company, s e t up  a h i g h - a l p h a m i l l a t Watson I s l a n d , near P r i n c e Rupert, where I t used about e i g h t y m i l l i o n f e e t of pulp wood og5 a year,  T h i s company, a s u b s i d i a r y of the Celanese  J  C o r p o r a t i o n of America, began o p e r a t i o n s 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 n e a r l y 7 0 0 , 0 0 0 a c r e s , or about one thousand  square  miles. ^ 3 8  By 1952  there were twelve m i l l s  manufacturing  p u l p , paper, or both products i n the Coast r e g i o n .  They  u t i l i z e d e i t h e r raw l o g s , waste from lumbering and l o g g i n g  383 s t a t i s t i c a l r e c o r d of the pulp and oaper I n d u s t r y , p. 57. 3 8 4  Loc, c i t .  35  Lumberman, v o l . 78,  3 8 6  Loc. c i t .  8  (May, 1951)? p. 60.  191 o p e r a t i o n s , or both.  The demand f o r m a t e r i a l t o feed  the o p e r a t i o n s was d r a m a t i c . 20.9  I n 1952 i t r e p r e s e n t e d  per cent of the t o t a l l o g cut of the p r o v i n c e ;  hemlock accounted f o r 88.18 per cent of t h a t . 3 8 ? And e i g h t y - f i v e per cent of the raw m a t e r i a l which was used t o produce the 211,000 tons of k r a f t pulp was s a w m i l l waste.->^  w  S a w m i l l burners, long a landmark i n  almost every s a w m l l l l n g community, began t o disappear from the c o a s t a l areas and the problem of s u p e r f l u o u s hemlock, which the Koerners had p a r t i a l l y s o l v e d , ceased to  exist. During the p e r i o d between 1945 and 1951 the  annual p r o d u c t i o n of pulp and paper i n the p r o v i n c e op, o Increased from 534,000 tons to 962,000 t o n s , " and I t s net v a l u e rose from 118,879,580 In 1942 t o #81,452,218 390 In 1952o  I n the course of f o r t y years the I n d u s t r y  had developed Into an important f a c t o r I n the f o r e s t economy of the p r o v i n c e .  ^  Fg^dlaiiPB&p. -  r  aRd P a p e r  I n d u s t r y , v o l . 5,  -^'- Wright, Thomas G,, " E f f e c t s of r e c e n t 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 C h r o n i c l e , (December, 1952), v o l . 28, p. 43. <  3 8 9  Loc... c i t .  3  S t a t i s t i c a l r e c o r d of the pulp and Paper  9  0  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 c h a r a c t e r i z e s the lumber I n d u s t r y of the- p r o v i n c e as a whole*  That p a t t e r n i s i t s e l f the  .product of c e r t a i n b a s i c c o n s i d e r a t i o n s :  the I s o l a t e d  geographic l o c a t i o n of the I n d u s t r y 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 w o r l d ; the i n a b i l i t y of the I n d u s t r y to achieve s t a b i l i t y owing t o i t s h i s t o r i c a l dependence on overseas markets which expand, c o n t r a c t , or even cease t o e x i s t , a c c o r d i n g t o the prevalent- economic or p o l i t i c a l c l i m a t e ; and the dependence of the I n d u s t r y upon f o r e i g n c a p i t a l w i t h 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 I s o l a t e d l o c a t i o n of the p r o v i n c e , f a r d i s t a n t from the main trade routes of the w o r l d ,  effectively  r e t a r d e d the development of the lumber i n d u s t r y .  The  few s h i p s engaged i n t r a n s p o r t i n g s u p p l i e s to the c o m p a r a t i v e l y s m a l l p o p u l a t i o n of the p r o v i n c e were a v a i l a b l e f o r c a r r y i n g 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 t o the demands of the t r a d e . T h i s c o n d i t i o n was aggravated by the domination of P a c i f i c s h i p p i n g by San F r a n c i s c o brokers who p r e f e r r e d , a l l c o n s i d e r a t i o n s being equal, to c h a r t e r t h e i r ships t o  193  m i l l s on t h e American s i d e of the b o r d e r .  T h i s handicap  was t e m p o r a r i l y overcome by the s e t t l e m e n t of the Canadian P r a i r i e s and the subsequent r i s e of a l a r g e market f o r Coast lumber. The Panama Canal served t o l e s s e n c o n s i d e r a b l y the p r o v i n c e ' 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 t o make the p o r t s of Vancouver and Few Westminster more a t t r a c t i v e t o sea f r e i g h t e r s .  Hot,  however, u n t i l the i n d u s t r y e s t a b l i s h e d i t s own l i n e of ocean-going lumber c a r r i e r s was the problem of t r a n s portation solved.  Even then t h e cost of t r a n s p o r t a t i o n  from the Northwest P a c i f i c t o d i s t a n t n a t i o n s was o f t e n g r e a t enough t o p r i c e the Coast product out of the l o c a l market. U n l i k e other l a r g e lumber producers of the w o r l d , the B r i t i s h Columbia I n d u s t r y had no l a r g e home market to g i v e i t s t a b i l i t y .  The American i n d u s t r y i n the  P a c i f i c Northwest enjoyed a l a r g e and w e l l p r o t e c t e d home market over which i t had c o n s i d e r a b l e c o n t r o l i n regard to p r i c e s .  The S o v i e t lumber I n d u s t r y a l s o enjoyed a  l a r g e 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 a t which i t marketed, i t s product overseas was of no s p e c i a l consideration.  The i n d u s t r y of the S c a n d i n a v i a n c o u n t r i e s  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 p r o p i n q u i t y t o the world's c h i e f 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 p r o d u c t i o n  194  to c o n t r o l p r i c e s t o some e x t e n t . The  B r i t i s h Columbia f o r e s t i n d u s t r y , on the  other hand, was c o n s i d e r a b l y  less fortunate.  I t depended  on a world market i n which i t s u p p l i e d l e s s than three per cent of the t o t a l lumber consumed and l e s s than three per cent of the pulp.3^1  i t could,  therefore,  e x e r c i s e no c o n t r o l over the p r i c e a t which i t was s o l d . These handicaps made the B r i t i s h Columbia i n d u s t r y extremely v u l n e r a b l e p o l i t i c a l crises.  t o i n t e r n a t i o n a l economic and  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 p a r t s made or undid the B r i t i s h Columbia i n d u s t r y from time t o time. The p r o s p e r i t y of the A l b e r n i m i l l depended upon-the c o n t i n u a t i o n 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 S t a t e s , threw the i n d u s t r y i n t o temporary d e p r e s s i o n ;  b a r t e r agreements between the S o v i e t  Union and the U n i t e d Kingdom or between the S o v i e t Union and Japan were known t o d i s l o c a t e i n d u s t r y 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 r u i n e d 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 i n d u s t r y i n the U n i t e d Kingdom and other s t e r l i n g - b l o c c o u n t r i e s . The  39  s t a b i l i t y which the i n d u s t r y seemed to enjoy  1  Timberman, v o l . 81, (January, 1954), p. 100.  195  I n 1952 was h i g h l y u n c e r t a i n , depending as i t d i d on the maintenance of the American market.  I t was estimated  by one a u t h o r i t y t h a t a t e n per cent i n c r e a s e i n American p r o d u c t i o n would mean t h a t t h a t market c o u l d dispense w i t h Canadian lumber.  An economic d e p r e s s i o n  i n the U n i t e d S t a t e s c o u l d e f f e c t the same end. Another problem which d i d much t o shape the p a t t e r n of t h e growth of the I n d u s t r y 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 h a r d l y f i g u r e d i n the  i n d u s t r y except i n very r e c e n t y e a r s ,  Even then i t  ranked a vary poor t h i r d t o American and B r i t i s h  capital.  B r i t i s h c a p i t a l Invested i n the i n d u s t r y d i d not fare w e l l .  Bad t i m i n g 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 u n f o r t u n a t e 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 c o n t r i b u t e d t o the f a i l u r e , A n o t a b l e 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 U n i t e d S t a t e s was the w i l l i n g n e s s of the B r i t i s h i n v e s t o r t o l e a v e the management of h i s e n t e r p r i s e s i n t h e 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 f o l l o w e d e s p e c i a l l y i n e n t e r p r i s e s where the B r i t i s h owners possessed undertaking.  no s p e c i a l knowledge of the  On the whole t h i s method proved s u c c e s s f u l ,  but sometimes, n o t a b l y i n the case of Western American r a i l r o a d s , i t proved d i s a s t r o u s . 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 c h o i c e 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 p e r i o d of economic expansion (1902-1913) was marked by c o n s i d e r a b l e caution.  The B r i t i s h i n v e s t o r had j u s t gone through  d i f f i c u l t times i n which he had Watched the value of h i s Investment i n American western r a i l r o a d s s h r i n k owing t o the economic d e p r e s s i o n of the ' n i n e t i e s , and h i s mining ventures i n West A u s t r a l i a and the T r a n s v a a l t u r n out d i s a s t r o u s l y .  Then he was c a l l e d upon t o  u n d e r w r i t e government s e c u r i t i e s t o f i n a n c e the Boer War and t o r e p a i r the damage t h a t i t wrought t o 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 r e v e r s e s , the cautious B r i t i s h i n v e s t o r p r e f e r r e d t o i n v e s t h i s c a p i t a l i n undertakings which o f f e r e d a c e r t a i n and safe reward. that caution.  B r i t i s h investment i n Canada r e f l e c t s ' ;;  Of a t o t a l B r i t i s h investment of $890,805}625  made between 1905 and 1911, l e s s than $ 1 2 0 , 0 0 0 , 0 0 0 was p l a c e d i n i n d u s t r i a l , mining, f o r e s t and land  securities. 9  The d i s l o c a t i o n caused by two g r e a t wars, an economic d e p r e s s i o n , and a. p r o t r a c t e d p e r i o d of post-war economic r e c o v e r y f u r t h e r weakened the B r i t i s h i n v e s t o r s  F i e l d , F. W., C a p i t a l Investments I n Canada, Monetary Times, Toronto, 1911, p. 9* J >  3  2  195b  I n t e r e s t I n the lumber i n d u s t r i e s of the p r o v i n c e . American I n v e s t o r s , on the other hand, were c o n s i d e r a b l y more r e s p o n s i v e t o the money-making p o s s i b i l i t i e s of the p r o v i n c e ' s f o r e s t s . the  I n the course of a c e n t u r y '  moving f r o n t i e r of America had accustomed  American  i n v e s t o r s t o adapt t h e i r commercial behaviour t o r a p i d l y changing c i r c u m s t a n c e s . 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 a l r e a d y a d j u s t e d themselves t o the p e c u l i a r c o n d i t i o n s of Washington and Oregon.  I n 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 geog r a p h i c a l e x t e n s i o n of t h a t r e g i o n . Retrenchment i n B r i t i s h investment a t the t u r n of the  c e n t u r y o c c u r r e d a t the v e r y time when American  economic expansion was a t a peak. the  The c a p i t a l v a l u e of  U n i t e d S t a t e s more than doubled between 1890 and 1904,  when more than e i g h t y b i l l i o n d o l l a r s was added t o p r e e x i s t i n g w e a l t h , ^ and the export of American c a p i t a l 3  3  began. ' B r i t i s h Columbia f e l t the s t r e n g t h of America's  ~'^~ S c h u l t z , W i l l i a m J . , and Caine, M, R., F i n a n c i a l Development of the U n i t e d S t a t e s , Hew York, P r e n t i c e - H a l l I n c . , 1937? P. 430. >  195c  c a p i t a l exports 'more s t r o n g l y than any other p a r t of the n a t i o n . The  American investment was  d u r i n g the decades t h a t f o l l o w e d .  never l i q u i d a t e d A f t e r 1942,  when the  U n i t e d S t a t e s became the o n l y r e a l source of c a p i t a l , American investment i n c r e a s e d r a p i d l y to the p o i n t where, a c c o r d i n g to H. R. M a c M i l l a n , U n i t e d S t a t e s 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.394 As the Tlmberman, an American t r a d e p e r i o d i c a l , observed f i f t y years  before:  I t i s o n l y o c c a s i o n a l l y t h a t 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 w i t h a knowledge and an a p p r e c i a t i o n of the p o s s i b i l i t i e s , g e n e r a l l y secures It first,395  394  Vancouver P r o v i n c e , (June 19,  1956), p.  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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 f o r e s t r y i n B r i 1 1 s h C0lumbia, Master of A r t s 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. n  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, F o r e s t Branch, R e p o r t ( 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 F o r e s t s , F o r e s t S e r v i c e , F o r e s t 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 , K i n g ' 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, h e l d i n London i n 1947.) B r i t i s h Columbia', Department of Lands and F o r e s t s , ft.Q_P.g.. .^ V i c t o r i a , "King's"' P r i n t e r " , 1*9107, r  B r i t i s h Columbia, Department of trade and i n d u s t r y , E x t e r n a l t r a d e , 1952, V i c t o r i a , 1953• B r i t i s h Columbia, R o y a l Commission o f 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 r e p o r t , V i c t o r i a , 1911. Canada, House of Commons, Debates, 1904, Ottawa, K i n g ' s P r i n t e r , 1905. (Contains a d i s c u s s i o n of the need t o i n v e s t i g a t e the lumber monopoly of the Coast p r o v i n c e . ) Canada, House of Commons, J o u r n a l s , 1906-07, King's P r i n t e r , 1908,  Ottawa,  Great B r i t a i n , P a r l i a m e n t , Imperia1 Economic C o n f e r e n c e a t Ottawa, 1932, Summary of proceedings, and copies of trade agreements, cmd. 4174, London, H.'M. S t a t i o n e r y O f f i c e , 1932. Howd, C l o i c e R., I h i d u s j r l a 1..Relations, i n the West Coast Lumber I n d u s t r y , 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 r e v i e w of l a b o r c o n d i t i o n s , but d i s c u s s e s the development of the e a r l y lumber i n d u s t r y on the P a c i f i c Coast.)  199  K i n g s t o n , J . T. B. and W e 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 I n d u s t r y 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 o f 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 i n d u s t r y 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 p a r l i a m e n t , Ottawa, I.872. (Describes the c o n d i t i o n of f o r e s t s and lumber i n d u s t r y o f the p r o v i n c e when B r i t i s h Columbia joined, the Dominion,) Mercer, Wm. H., Growth, o f Ghost towns, V i c t o r i a , King's P r i n t e r , 1944. (The d e c l i n e of f o r e s t a c t i v i t y i n t h e 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 F e r n i e . ) M u l h o l l a n d , F. D., The F o r e s t 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 . ) U n i t e d S t a t e s , 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 a t Los Angeles. The r e p o r t s of American consuls and agents l o c a t e d I n Vancouver, V i c t o r i a and Nelson, o f t e n c o n s t i t u t e the o n l y I n f o r m a t i o n on certain, aspects of l o c a l h i s t o r y . ) W h i t f o r d , H. IT., and C r a i g , R. D., F o r e s t s of Br 1 t i s h Coluribla, Commission of C o n s e r v a t i o n . Committee on F o r e s t s , Ottawa, King's P r i n t e r , 1918 0  2,  Newspapers " M o o d v v i l i e , " Vancouver News and D a i l y A d v e r t i s e r , ( A p r i l 2, 1887), p. 1.  200  "Vancouver I s 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 v a r i o u s i s s u e s . San F r a n c i s c o D a i l y Evening 3 u l l 3 t i n , v a r i o u s  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 H e r a l d , v a r i o u s Vancouver P r o v i n c e , v a r i o u s Vancouver Sun,  various  issues  issues  V i c t o r i a Colonist, various 3.  Issues  issues  Periodicals BrjLtijh. Columbia Commercial J o u r n a l , V i c t o r i a , B.  C.  ( S e v e r a l of these v a l u a b l e 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 A r c h i v e s , V i c t o r i a , B. C.) B r i t i s h Columbia Lumberman, 1917-1954. Known as P a c i f i c Coast_JLpjiberman from 1917 to 1923.  x  :  (One of the c h i e f 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 p u b l i s h e d between 1907 and 1915* Not always r e l i a b l e but u s e f u l n e v e r t h e l e s s . ) Canadian F o r e s t r y A s s o c i a t i o n , Ottawa, R e p o r t ( s ) , 1902-1913. Canadian F o r e s t r y J o u r n a l , 1904-1954-. (Various i s s u e s proved u s e f u l i n g a i n i n g over-a 11 p i c t u r e of the t o p i c . )  an  201 Columbia R i v e r and Oregon Tlmberman, l a t e r changed t o Tlmberman ( A v a i l a b l e i n F o r e s t r y 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 c h i e f 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 i n d u s t r y not otherwise a v a i l a b l e , ) Lurnberman and C o n t r a c t o r 1904-1907; known as Western Canada Lumberman, 1908, and. as Western Lumberman ?  (Another c h i e f source of i n f o r m a t i o n i n d u s t r y between 1904 and 192 5,) P a c i f i c Lumber Trade_,.Jojarnal June 1912 - June 1_915«  ?  x  on the  S e a t t l e , Washington,  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 p u b l i s h e d 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 w i t h i t s J u l y , 1885 i s s u e . They contained a c o n s i d e r a b l e amount of f a c t u a l m a t e r i a l 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 F o 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 i n d u s t r y . ) In a d d i t i o n to these e x t e n s i v e l y 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 I n d u s t r y Forest  •" x  and M i l l  The J o u r n a l of F o r e s t r y Bennett, R. B,, " E a r l y 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 s a w m i l l i n the w o r l d , " 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 g r e a t F r a s e r M i l l s i n i t s hey-day.) C a r m i c h a e l , H e r b e r t , "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 attempt to s e t up a pulp A l b e r n i and the founding R i v e r Company some years  Hewartson's industry at of the P o w e l l later.)  ~  ,fS  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 i n d u s t r y , " Western Lumberman, v o l . 19 (August, 1922), p. 31-33. (A c h r o n o l o g i c a l account of the i n d u s t r y . ) Dixon, L. B., "The b i r t h of the lumber i n d u s t r y i n B r i t i s h Columbia," F o r e s t 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 t r a d e i s a f f e c t e d by t h e g r a i n t r a d e 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 t e r n ..Lumberman, v o l . 7 (September, 1910), p. 2 1 . Howay, F. W., " E a r l y Settlement on B u r r a r d I n l e t , " B r i t i s h Columbia H i s t o r i c a l Q u a r t e r l y , v o l . 1 Howay, F. W., " E a r l y s h i p p i n g on B u r r a r d I n l e t , 18631870," B r i t i s h Columbia H i s t o r i c a l Q u a r t e r l y , 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 a n d , Moses, "Lumbering, Western Lumberman and C o n t r a c t o r , v o l . 4 (Jur>e, 1907), p. 21. 51  (A h i g h l y e n t e r t a i n i n g account of the founding of one of the p r o v i n c e ' 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 , " C a p t a i n 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. ( I n f o r m a t i o n on the e a r l y spar-producing m i l l a t Sooke,) Lamb, W, Kaye, " E a r l y lumbering on Vancouver I s l a n d , " B r i t i s h Columbia H i s t o r i c a l Quarterly., v o l . 2 (January, "19357, pp. 31-53; v o l . T T f i p r i l , 1938), • pp. 95-121, (An extremely v a l u a b l e account of the i n d u s t r y on Vancouver I s l a n d before c o n f e d e r a t i o n , ) L a n g l l l e , H. D., "Canadian lumber c o m p e t i t i o n , " American F o r e s t r y , v o l . 21 (February, 1915), pp. 130-139. "The  lumbering i n d u s t r y i n the mountains," Lumberman and C o n t r a c t o r , v o l . 3 (October, 1906),~pT™^7  Maclnnes, T,, " E a r l y days on B u r r a r d I n l e t , " Western Lumberman, v o l . 23 (August 26, 1926), pp. 30V 36~T M a c M i l l a n , 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. Lumperma,n, v o l , 18 ^ (October, 1934), p, i T ~ ~ ^ L  Manning, E, C., " A d m i n i s t r a t i o n of Crown Lands i n B r i t i s h Columbia," J o u r n a l of,...Forestry, v o l . 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 t r u c k l o g g e r , v o l , 7 (August, 1954), pp. 13-14, Orchard, C. D., " F o r e s t Management," Island. .Events,, v o l . 19 (May, 1955), passim. (A l o g i c a l and eloquent p l e a 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 I n d u s t r y 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 e a r l y establishment of the lumber trade of San F r a n c i s c o . )  204  P o r t e r , W.,' "Leon TCoerner * s one-Kan giveaway program," l i l i j i l e a n s , v o l . 69 (August 4, 1956), p. 34" and passim. " R e g i o n a l r e p o r t . Southern I n t e r i o r ; Can they l i c k the marketing problem?" The t r u c k logger,, v o l . 7 ( A p r i l , 1954)5 pp. 39-40. R i c k a r d , 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), PP  (A r e v i e w of the A l b e r n i m i l l venture of the 1860's.) Saxon, C h a r l e s , "Timber T i t a n s , " Canadian B u s i n e s s , 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, M a c M i l l a n , Bruce F a r r i s , E. P. T a y l o r , H. J . Mackln, J . A. Humbird, P r e n t i c e B l o e d e l 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 r e c e n t 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 C h r o n i c l e , v o l . 28, (December, 1952), "A t y p i c a l b i g timber l o g g i n g o p e r a t i o n , " Western Lumberman, v o l . 19 .(March, 1922), p. AW. * (A study of the B l o e d e l , Stewart and Welch operation at Myrtle Point.) "Vancouver and O r i e n t a l t r a d e , " Western Lumberman, v o l . 26 (October, 1929)? p.30. "West Coast G i a n t , " S a t u r d a y N i g h t , v o l . 69 (February 18, 1956), p. 37.  B r i t i s h Columbia. 1919-1920, Vancouver, B. C., Sun P u b l i s h i n g Company, 1920. Draycot, W. M. L., Lynn V a l l e y , A s h o r t h i s t o r y .of i t s r e s o u r c e s , n a t u r a l - b e a u t y and development, North Vancouver, North Shore P r e s s , L t d . , 1919«  205  E n g e l b e r t , Kenny, Ken and, Trees, Vancouver, Vancouver Features P u b l i c a t i o n s L t d . , (1945?) Keenleyside,  Hugh L., The P l a c e of the F o r e s t i n °f B r i t i s h Columbia, 1950. n T rs  ^k^^Ii§^MIL^22I}^^y^ ^ ^ ^^  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., F o r e s t 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 g e n e r a l remarks, Vancouver, 3 . A. Roedde L t d . , 1941. General h i s t o r i e s B a n c r o f t , H. I i . , H i s t o r y of B r i t i s h Columbia, 1792-1887, San F r a n c i s c o , Tne H i s t o r y Company, 11887, Cox,  I . , C h i l e s i n c e independence, Washington, George I%shington'Universoity P r e s s , 1935.  Dunbabin, T,, The making of A.us tra, 1 i a , London, A & C B l a c k L t d . , 1922. Hedges, J . B., B u i l d i n g the Canadian West, Hew York, The M a c m i l l a n 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„, H i s t o r y of P r a i r i e Settlement, The M a c m i l l a n Cfompany7~T~93*B.  Toronto,  S c h u l t z , W i l l i a m J . , and Caine, H. R., F i n a n c i a l Development of the United S t a t e s , lie?-/ York, P r e n t i c e - H a l l , I n c . , 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 P r e s s , 1930,"  206  Stevens, S. E., American expansion i n H a w a i i ( 1 8 4 2 - 1 8 9 8 ) , H a r r i s b u r g , A r c h i v e s P u b l i s h i n g Company of Pennsylvania Inc., 1945. ( C h i l e , A u s t r a l i a , H a w a i i , China and the P r a i r i e p r o v i n c e s c o n s t i t u t e d the c h i e f 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 description  and  Brown, Robert, C o u n t r i e s of the World, 2 v o l s . London, C a s s e l P e t t e r , & G a l p i n , ( 1 8 7 6 ? ) (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 I s l a n d , many p a r t s of which he e x p l o r e d and d e s c r i b e d i n d e t a i l i n various a r t i c l e s . I n volume two of t h i s two-volume account of h i s 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 l o g g i n g i n d u s t r y 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 P r e s s , 1790, R o b e r t s , M o r l e y , The Western A vermis, London, S. C. Brown, Langham & Company, L t d . , 1904, S p r o a t , G. M., B r i t i s h Columbia. Information..for Emigrants, London, Clowes, 1873^ 7.  Biographical  dic_tionau2l^  K e r r , 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, K e r r and Begg, TEW. " ' Who!s_Who:and why, Press,  1918.  1917-1918, Toronto, I n t e r n a t i o n a l  Who's who i n America. Chicago, A. & II. Marquis Company, (various years)  207  Special studies Ahem, George P., F o r e s t Bankruptcy i n America, S t r a s b o u r g , V i r g i n i a , Shenandoah PublishingHouse, I n c . , 1934. (The s t o r y of the r a p i d d e p l e t i o n of the f o r e s t r esources 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 P i n c h o t , f a t h e r of American f o r e s t r y . ) Brown, F e l s o n C , The American lumber i n d u s t r y . Hew York, J . Wiley and Sons I n c . , 1923. Coman, E. T., and Gibbs, H., Time, t i d e and timber, S t a n f o r d , S t a n f o r d U n i v e r s i t y P r e s s , 1949. (The c e n t u r y - l o n g s t o r y of the Pope and T a l b o t 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.  ,  F r i e sS, R. F., EmrMa-e UkMim^,JM^l2£l-^JMMnm i n W i s c o n s i n , 1 8 3 0 - 1 9 0 0 , Madison, S t a t e H i s t o r l c a : S o c i e t y of W i s c o n s i n , 1951. !  G r a i n g e r , M. A., Woodsmen of the West. Toronto, Muss on Book Company, "TsoW, (The s t o r y of coast l o g g i n g a t the t u r n 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 C h i e f F o r e s t e r of B r i 1 1 s n Columb1a.) Holbrook, Stewart, Holy Old Mackinaw ~ A n a t u r a l h i s t o r y of the American lumberjack. Hew .'York, The M a c m i l l a n Company, 1938. Murphey, Rhoads, Shanghai, key t o modern China, Cambridge, Harvard U n i v e r s i t y P r e s s , 1953* (A study of one of B r i t i s h Columbia's most important e a r l y markets,) The Hew West, Winnipeg, Canadian H i s t o r i c a l P u b l i s h i n g Company, 1888. (A l a u d a t o r y but comprehensive review of the manufacturing and commercial i n t e r e s t s of the Western p r o v i n c e s i n the lSOO's.)  onP,  Hlscell.anepus_ JLteros B r i t i s h Columbia f o r e s t P r o d u c t s , L i m i t e d , R e p o r t , F i n a n c i a l Post C o r p o r a t i o n S e r v i c e , Toronto, 1955. I n t e r n . }^}>$£j*2S®8R?* F i n a n c i a l Post C o r p o r a t i o n m  Toronto, 1952•  3gB2E& > Service,  

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