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Urban History Review Revue d'histoire urbaine

Entrepreneurship and Nineteenth Century Urban Growth: A Case Study of Orillia, , 1867-1898 E. J. Noble

Volume 9, Number 1, June 1980 Article abstract This article examines the role local decision-makers played in the development URI: https://id.erudit.org/iderudit/1019350ar of Orillia. This small Ontario community exhibited as high a degree of DOI: https://doi.org/10.7202/1019350ar boosterism as that found in much larger centres, and the economic growth of the town was primarily the result of growth strategies pursued by Orillia's See table of contents entrepreneurial decision-makers. Although this group implemented a variety of successful growth strategies, this study concentrates on two of the most important. First, the businessmen supported a progressive railway policy Publisher(s) which brought two competing lines to the community. This action enlarged the town's hinterland and enabled local businessmen to utilize a diverse pattern of Urban History Review / Revue d'histoire urbaine buying and selling. Second, the entrepreneurs used the municipal corporation to finance the construction of 's first municipally owned ISSN hydro-electric power system. This development enabled the town to successfully make the transition from a declining commercial centre to a small 0703-0428 (print) manufacturing town. 1918-5138 (digital)

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Cite this article Noble, E. J. (1980). Entrepreneurship and Nineteenth Century Urban Growth: A Case Study of Orillia, Ontario, 1867-1898. Urban History Review / Revue d'histoire urbaine, 9(1), 64–89. https://doi.org/10.7202/1019350ar

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URBAN GKMTH: A CASE STUDY OF

ORILLIA, ONTARIO, 1867-1898*

E.J. Noble

Résumé'/Abs tract Le présent article examine le rôle de certaines personnes influentes dans le développement d'Orillia. Cette petite localité ontarienne a connu une croissance économique comparable à celle de plusieurs grandes villes, croissance principalement stimulée par l'esprit d'initiative de ses entrepreneurs. Bien que ces derniers aient adopté plusieurs mesures efficaces, l'étude porte essentiellement sur deux stratégies. Premièrement, les hommes d'affaires ont donné leur appui à une politique progressiste en matière de chemin de fer, ce qui a amené deux compagnies concurrentes à Orillia. Cette double présence a stimulé l'essor de l'arrière-pays et a permis aux hommes d'affaires locaux d'exploiter un système varié d'achat et de vente. Deuxièmement, les entrepreneurs ont eu recours à la municipalité pour financer la construction de la première centrale hydro-électrique d'appartenance municipale en Amérique du Nord. Ces stratégies de développement ont permis à Orillia d'échapper à une destinée commerciale peu prometteuse pour devenir une petite ville industrielle prospère.

This article examines the role local de ci s ion-makers played in the development of Orillia. This small Ontario community exhibited as high a degree of boosterism as that found in much larger centres, and the economic grcwth of the tcwn was primarily the result of grcwth strategies pursued by Orillia's entrepreneurial decision-makers. Although this group implemented a variety of successful grcwth strategies, this study concentrates on two of the most important. First, the businessmen supported a progressive railway policy which brought two competing lines to the community. This action enlarged the town's hinterland and enabled local businessmen to utilize a diverse pattern of buying and selling. Second, the entrepreneurs used the municipal corporation to finance the construction of North America's first municipally owned hydro-electric power system. This development enabled the tcwn to successfully make the transition from a declining commercial centre to a small manufacturing tcwn.

* * *

*ln this paper I have adopted the point made by Robert Lamb in his essay "The Entrepreneur and the Community" in which he states that "the detailed workings of entrepreneurship are best studied in the setting of a single (total or regional) community and among its entrepreneurial group or groups." See W. Miller, éd., Men in Business: Essays in the History of Entrepreneurship (Cambridge: Harvard University Press, 1952), p. 91. 65

Urban historians examining the institutions preferred to create a dynamics of city growth have posed "commercial infrastructure" rather a number of questions concerning than invest in individual the phenomenon. Two of the more enterprises. A somewhat kinder intriguing questions are why a city view pictures them as "businessmen or town sprung up where it on the make who desired growth and did1 and why some towns were able material progress as an end in to achieve a relatively stable itself."" But while their motives growth strategy while "others in might be suspect, there was little the same general area fell doubt concerning the impact these into virtual insignificance."^ The men had on the community. As answers to these queries are "various men with disparate neither simple nor singular. They interests" they made "collective usually include an unequal mixture decisions which determined the of such factors as initial action a community would pursue in advantage,^ the possession of a order to achieve growth."^ viable hinterland, the presence of Entrepreneurs, through their role an efficient transportation system as community leaders, gave to their and the impact of supportive towns and cities a "personality" government or corporate and a "quality of life."-^ Their decisions. The most contentious rhetoric was not just issue related to urban growth " supersalesmanship or mindless concerns the role played by the hoopla" but a verbalization of the local entrepreneur as community "psyche" as perceived by decision-maker. Is he merely a men who "had the power to make and pawn in the hands of impersonal enforce decisions."-'--'- In sum, this economic and geographical forces, paper will suggest that while all or does he "interact with his of the ingredients for urban growth environment and shape the city can be found in any community, it through his beliefs, needs, and is the skill and initiative of the actions"?^ If one accepts the entrepreneur which is the decisive argument that "the physical factor in community growth. ^ environment ... develops in a distinct way as much because of This case study of Orillia, deliberate decisions as because of Ontario suggests that while the external forces,"" he is still initial location and function of confronted with determining whether the settlement in the early decades the decision-makers were motivated of the nineteenth century was by self-interest, by concern for determined by geographical and the good of the community or by a technological factors, mixture of both. entrepreneurs played a dominant role during the critical stages of Entrepreneurial growth development from 1867-1900. Their strategies have been both villified decision-making assured the and praised. The decision-makers successful pursuit of the have been characterized as community's growth potential. The encouraging the "stop gap policy" entrepreneurs implemented a variety of municipal bonusing to overcome of growth strategies designed to financial obstacles to development, achieve growth and material and thereby "plug the hole in the progress. They advocated bonuses capitalist market left by the bank, and tax concessions to industry; the financial system..., and the they supported the construction of federal government"' as these efficient market facilities to 66 encourage farmers to use Orillia as site of Orillia. The Narrows, a a market; they advertised the small channel connecting Lakes healthy and restorative qualities Couchiching and Simcoe (see Map 2) of Orillia!s environment widely was an ideal termination point for throughout and the United steamer service from as deep States, and they used numerous draught steamers could not methods to allow the business penetrate the shallow waters of the community to maintain its channel. Consequently, the Narrows reputation as the source of the became the landing point for "cheapest goods" north of . passengers and goods destined for While all of these policies were the Muskoka, , and important, this paper will deal Ontario County regions, as they with two of the more significant: could proceed to their destination first, the role of the via the trails that traversed the entrepreneurs in attracting two area. When shallow draught vessels competing railway lines to Orillia were built which could proceed in the early stages of its through the Narrows, the present existence, and second, the use of site of Orillia replaced the municipal government to build the Narrows as the terminus. Situated first public hydro-electric power on a series of terraces which rose system in North America. from the shores of , Orillia also offered a superior setting to the low, swampy environment of the Narrows. -^ In the pre-railway era, In the 1850s the high population geography determined the location density and the absence of land in of a settlement near the present the Toronto region drew more settlers to the area around northern section of the province, Orillia. This movement was which they successfully maintained facilitated by the improvement and until the 1890s.15 extension of road and rail links. ^ When the Toronto, Simcoe With the arrival of the and Huron Railway connected Barrie Northern Railway in 1871 and the with Toronto in 1853, Orillia resultant increase in lumbering became increasingly important as a activity, Orillia further expanded service centre for the Muskoka and her role as supply base for the Georgian Bay hinterlands. Situated surrounding hinterland. This on the southern edge of the economic growth produced a Shield, Orillia's corresponding increase in development depended largely on the population of 61 percent during the reaction of the local entrepreneur years 1867-1871. During the to the potential offered by the following ten years, in spite of a exploitation of natural resources. decrease in timber activity after 1875, the number of inhabitants While tourism influenced more than doubled. When the Orillia's economy during the 1860s, Georgian Bay region became an it was not until large-scale important supplier of saw logs and lumbering operations commenced that lumber in the 1880s, entrepreneurial growth strategies Orillia experienced significantly expanded commercial a decade of unprecedented activities. By 1867 businessmen economic expansion. Not had secured a large portion of the only did the population wholesale and retail trade in the increase (see Table I), 68

TABLE I

Population Growth in Barrie and Orillia, 1871-1911

Barrie Orillia

1871 3,398 1,322 1881 4,854 2,901 1891 5,550 4,752 1901 5,949 4,907 1911 6,420 6,828

SOURCE: Census of Canada, 1931, Vol. II, but the number of manufacturing the role of secondary cities. establishments more than tripled (see Table II). With the decline II in the timber industry in the 1890s, accompanied by a general Orillia1s entrepreneurs were economic lag throughout the region, dependent on local resources in Orillia's growth slowed their drive for success. The substantially but remained on the absence of any other medium to positive side. While the number of utilize as a growth agent made the manufacturing establishments use of municipal government declined in number, due partially imperative. Consequently, the to a change in the census recording communityTs entrepreneurs took an procedure and partially to a active interest in the affairs of transformation from small, the municipal corporation. family-owned shops to larger Throughout the period under study, factories, the number of employees council (made up of nine and the value of goods produced councillors elected from three continued to increase. wards) was dominated by entrepreneurs, as was the office of By the turn of the century, Reeve and, after 1874, the office however, economic changes were well of Mayor. Control of the latter under way which were to work to the two positions was especially advantage of larger urban centres. important since both officials were The development of the factory elected by all the ratepayers and system which required large pools not just the voters in specific of labour, the control of finance wards. Furthermore, the Reeve capital, the advantage of cheaper represented the ratepayers on the transportation rates and the City Council, an important function possession of larger and closer as county approval, and financial markets all ensured the growth of support were required in order for the cities at the expense of the many growth strategies to be towns. These factors tended to implemented.*" Both the Reeve and reduce the importance of the small the Mayor dispensed local justice town decision-maker in determining and were important agents of social growth. The competition of the control. In 1882, the executive larger cities now imposed a ceiling was enlarged with the addition of a on development. At best, towns Deputy Reeve, and ten years later a such as Orillia could aspire to Second Deputy Reeve was added. 69

TABLE II

Manufacturing in Barrie and Orillia, 1881-1911

Years Estab lishments* Employees Value of Products B 0 B 0 B 0

1881 77 21 355 184 $ 497,331 $ 253,895 1891 138 73 551 482 789,307 660,940 1901 13 29 207 543 367,338 836,491 1911 15 40 381 729 1,199,523 1,530,538

^Figures for 1881 and 1891 are based on all establishments, regardless of size, while the figures for 1901 and 1911 are based on firms with five or more empIoy ees,

SOURCES: Census of Canada, 1881-1911

This structure existed until 1898 town. •18 To this end the council when the office of Reeve and the sought to diversify the economy by ward system was abolished. attracting manufacturers through Municipal government was simplified bonuses and tax concessions. to include a mayor and six councillors elected at large. ' Merchant-businessmen continued to dominate the council along with The ability of the manufacturers and contractors entrepreneur to dominate municipal following Orillia1s incorportion as government was crucial to the a town in 1874. This situation successful implementation of growth remained unchanged in the 1880s, strategies. An analysis of the although a greater number of membership of the town council professionals became involved in between 1867 and 1898 indicates local politics, probably as a means that throughout this period the of ensuring their success as land business community was in complete speculators. By 1898, however, the control. From 1867 until 1874, the council had become the private council was controlled by merchants preserve of the merchants and and businessmen, but manufacturers, manufacturers who united in a lumbermen and builders also had a concerted effort to revitalize the significant share of power (see commercial-centre function and to Table III). This diverse group of promote manufacturing as a solution men were united concerning the to the town's economic ills. desirability of attracting manufacturing to the village. They An analysis of the offices of agreed with the assessment of the Reeve and Mayor also reveals that Orillia press that "manufacturers entrepreneurs were dominant (see form the nucleus of a future town Tables IV and V). A total of eight or village" and that it was "only men held the office of Reeve by a judicious encouragement of throughout the period. Up to 1890, manufacturers Orillia can hope to the merchant-business group grow to an important and prosperous completely controlled the office, a 70

TABLE III

Council Membership by Occupation

1867-1874 1874-1880 1881-1890 1891-1898 Occupation No. Percent No. Percent No. Percent No. Percent

Merchant/Businessman 18 56 35 65 55 61 24 67 Manufacturer 7 22 16 30 22 25 7 19 Real Estate/Financeer 0 0 0 0 1 1 1 3 Lumbe rman/Builde r 6 19 0 0 2 2 2 5.5 Professional 1 3 2 3.5 9 10 0 0 Artisan 0 0 1 1.5 0 0 0 0 Missing* _0 __0 _0 0 J^ 1 _2 5^5 Totals 32 100 54 100 90 100 36 100

*ln the period 1881-1890, one vacancy occurred when one ward elected two instead of three candidates. In 1897, there were two vacancies in one ward.

TABLE IV

Occupation of Reeves

1867-1890 1891-1898 No. Percent No. Percent

Merchant/Businessman 21 100 Manufacturer/Contractor 87.5 Professional 12.5

TABLE V

Occupations c> f Mayors

1875-1880 1881-1890 1891-1898 Occupation No. Percent No. Percent No. Percent

Merchant/Businessman 2 33 6 60 1 12.5 Manufacturer 1 17 - - 4 50 Lumberman 3 50 - - - - Professional - - 4 40 2 25 Real Estate 1 12.5 Totals "6 Ï0ÏÏ To Tôô 8. 100 71

reflection of the emphasis placed than where he originated or where on commercial expansion by this he worshipped. The men who held segment of the business community. the office of mayor reflected a However the dominance of this great diversity of origins. Of the office by the manufacturing group fourteen men who held this in the 1890s was a clear indication position, five were born in the of the change in economic thinking British Isles, eight in Ontario, amongst the entrepreneurs. As the and one in Quebec (see Table VI). editor of the Times argued, it was While the majority were either the time for change. Not only Anglican or Presbyterian, a should the merchants forsake the Catholic and a Methodist were also multiple function of the general successful candidates. Although merchant for the more specialized there was a preponderance of store, but the community must keep "official church" representatives, pace with the times and all the major religious groups were industrialize or be left behind by represented, indicating an other more progressive open-minded view towards religious communities. ^ A similar trend is belief and political office. shown by the occupational profile of the office of mayor. This brief analysis of municipal office holders indicates An analysis of the ethnic and that the municipal corporation was religious background of the men who controlled by businessmen whose held the chief executive offices of business success was more important the municipality supports the than any social or cultural trait. contention that "the fact that a Municipal politicians were man was a businessman was more supported by other Orillia important in the formation of his entrepreneurs who shared in the attitudes •20 and the willingness belief in material progress. Most of the community to accept them, were members of the so-called

TABLE VI

Religion and Origins of Mayors and Reeves

Reeve Mayor 1867-1898 1875-1898

Religions

Anglican 3 Presbyterian 5 Methodist 1 Catholic 0

Origins

British Isles Ontario Other Provinces 1 Unknown 0 ■ ■ :-

West Street, Orillia, looking north in 1890s. 73 respectable churches in which many were founded and built upon a held influential positions. philosophy of present-mindedness Entrepreneurs were often actively which embraced a large element of engaged in Bible Societies and business rationale. But unlike Sunday Schools as a means of other frontier communities teaching the importance of Orillia1 s leaders maintained a Christian virtue. As fervent degree of conservatism. While advocates of agencies of social supporting growth they did not control which would elevate the desire "unchecked expansion at any morality of the worker, they worked price." They believed that the diligently to promote the Mechanics community should proceed slowly but Institute, the Y.M.C.A. and social surely in order to prevent the clubs. The entrepreneurs were rapid reversals which had hurt politically active either as other communities, 4 and that the Liberal-Conservatives or Reformers desire for private gain should be and frequently ran as provincial or balanced by a consideration for the federal candidates. They achieved community as a whole. The esteem mixed political success and rarely in which the businessman was held exerted much influence beyond the in the community was best expressed community or the county. They were by the editor of the Orillia often members of various economic Expositor who philosophized: and political organizations such as T the Ontario Lumberman s There is no class of men who Association, the Imperial have so much to do with our Federation League and the Irish future prosperity. They are Home Rule Association. As Alan the kings and leaders of Artibise has pointed out, the progressive ideas and take the common sharing of social, place of [the] dukes and political, and economic interests barons of olden times at the would undoubtedly make possible the h ead of soc i ety•25 sharing of ideas and greatly enhance the prospect of unity of As "worthy" leaders, private purpose evident in common support businessmen utilized the municipal for growth and material progress.^1 government and, from 1898 onward, the Board of Trade to improve and In sum, the entrepreneurs who expand the business potential of directed the community1s growth the community at public expense. strategies in the years 1867-1900 In their philosophy, the municipal accepted the challenge of a corporation had a very positive potentially viable hinterland and role to play in maintaining a they saw themselves as agents of viable economic climate. Private its development. They were companies were dedicated to making practical businessmen who a profit; public ownership could championed the desirability of supply essential services for the growth and material progress. They benefit of the community at a much were "optimistic" and "aggressive" cheaper rate. Consequently, public and measured progress in material ownership of utilities was the only terms. 2 Their optimism was part means of maintaining essential and parcel of their contemporary services such as fire protection view of history. Canadian towns and electrical power at a did not have a history "lost in reasonable level. Thus the antiquity, but [were] creations of philosophy of the entrepreneur was the present."23 Consequently they a theory which, when put into 74 practice, sought growth and were advanced which promised to progress in very practical ways. usher in the golden age of prosperity. The first two Ill possibilities, a "Maple Railway" and the Simcoe Muskoka Railway No development stirred the Company, were never serious imagination of the entrepreneur and contenders, but the latter was to stimulated his anticipation of have a significant effect upon the material progress as did railways. attitude adopted by Orillia's While recently a controversy has entrepreneurs towards railway arisen amongst American and promotion. This company was Canadian historians concerning the granted the right to construct relationship between railways and their line up either side of Lake economic growth,^ the Orillia Couchiching.^0 This meant that the decision-makers, like all Canadians railway could proceed through Rama of the time, believed that railways Township, up the eastern shore of meant economic success or failure. Lake Couchiching, and Orillia would The businessman could no longer be bypassed (see Hap 2). If this rely on water transportation and should happen, the community would the stage line because neither lose control of the M u s k o k a could carry the required quantity hinterland. Consequently, the of goods quickly. Efficient entrepreneurs believed it to be contact with the outside world was imperative to take steps to prevent essential and railways could carry railways from bypassing the business communications faster than village. any other form of transport. Also, there was the example of Toronto as A state of railway hysteria that city was "only beginning its enveloped the village in 1868 with history of trans it ion. . . toward s the projection of the first railway metropolitan status,"^" and in scheme which appeared to have some pursuit of this development chance of success. When the railways were crucial. The Orillia Midland Railway^! was expanded to entrepreneur shared the vision of Beaverton, a small hamlet on the his Toronto counterpart and shores of to the east undoubtedly agreed with George of Orillia, plans soon emanated Brown of the Toronto Globe who from the directors of the company consistently pointed out the to extend the line through Orillia positive relationship between into the Georgian Bay region (see railways and commercial Map 3). When the directors of the influence.^o Railways would Midland expressed their desire to attract tourists, encourage the tap the lumber resources of that influx of capital and expand the area,^2 the council of Orillia had economy through the development of little trouble in passing a motion timber and mineral resources.^" to be forwarded to the Legislative Orillia would become the hub of the Assembly to "sanction...the region whose spokes would radiate granting of aid by way of bonuses out in all directions to tap the by this and other lucrative trade. Thus any railway municipalities."^3 scheme which promised to make Orillia its terminus was supported The council was unanimous in with vigour. its support for this railway as the Northern had previously informed A number of railway schemes one of the councillors that the

76 company was not interested in advances to the Northern to extending their line from Barrie to consider a branch to the Orillia. ^ This threatened village.3-> This meant that the invasion of their territory by the initiative stemmed from Orillia Midland, however, was to rather than from the promoters, and substantially alter the policy of this was to place the advantage in the latter line. The Northern the latter1s hands. They could ask immediately became interested in for a larger bonus and increase putting through a branch line to demands for investment capital. In Orillia. Each company sought to fact, Orillia had more investors in prevent the granting of bonuses to the Northern extension than any the other and the Northern even other community north of 36 attempted to scuttle the Midland Toronto. proposal completely. Although the motives of the While Orillia1 s entrepreneurs railway promoters differed from were divided over the merits of the those of the Orillia entrepreneurs, two proposed extensions, they found the latter were forced to formulate themselves caught up in a dispute their strategy accordingly. Within which bore little relation to the the village, the businessmen formed fortunes of Orillia. This meant two groups, each supporting one that the growth strategy concerning possible extension, and stumped the railway promotion was in the hands surrounding townships in order to of outside entrepreneurs, and the drum up support for their challenge facing Orillia's respective railway.37 Their aim, decision-makers was to manipulate however, was to ensure their line them for their own benefit. In would be built rather than to their efforts to do so, Orillia1 s sabotage the other. The entrepreneurs were able to play an entrepreneurs who favoured the important role in railway extension Northern, for example, were fearful and a decisive role in the economic that the Midland would never be fortunes of their community. extended. If the village should grant a bonus to that line and not With the extension of the the Northern, it was deemed to be Midland a strong possibility, local too risky a venture and could interests began to organize to result in the latter taking a obtain a branch of the Northern to different route into Muskoka and connect the village with Barrie. Georgian Bay. Encouraged by this Consequently, the entrepreneurs fear amongst Orillia' s were split into two factions - one entrepreneurs, the Northern in favour of the Midland and one promoters launched a high-powered in favour of the Northern. The campaign to scuttle the proposed result of this division was to Midland extension. Undoubtedly encourage the Toronto interests in their aim was to both stymie the their efforts to prevent the rival potential competition for the trade Port Hope group from receiving of the Muskoka-Georgian Bay region financial aid as they sought to and to garner for their railway the siphon off bonuses for their own funds which would have gone into railway. This possibility was the Midland line. Consequently, further enhanced when in December, their campaign was more active than 1868, the Orillia ratepayers the Midland's and had the backing pressured the council into making of more influential financial and 77 political personalities.-*" because of the shorter route. While the Midland supporters All of the traditional conceded that Toronto was growing promotional techniques were in stature, "Montreal always would utilized by the two railroad be the port of entry and discharge interests. The ratepayers were of the Dominion of Canada"^ and subjected to a flood of newspaper therefore was the most important editorials, numerous public city to be connected to by rail and meetings and large banquets at water. Perhaps the most telling which the most eloquent speakers point made to a community largely would praise one line and villify engaged in commerce was the the other. On the whole, the suggestion that since the Midland Northern promoters were more connection would destroy the prominently represented than the monopoly of Toronto, the merchants Midland. Often these men would not would have a choice where they only present their case for could purchase their goods.^ financial aid in terms of the benefits which would accrue to the The Northern interests had village, but the meetings would strong counter-arguments to the degenerate into character claims of the Midland supporters. assassinations of the leading They were quick to point out that personalities of the other line. the Midland was primarily At one such meeting, Reeve James established to serve the timber Quinn was the focus of an attack in interests, ^ and since many of the which it was suggested that his businessmen would do their support for the Midland was an act wholesale buying in Toronto and of self-interest as he owned land other communities on the proposed right of way.-*" rather than in Montreal, it would This led to a lively municipal be to their advantage to support campaign in December, 1869, for the the Toronto route. The spokesmen office of Reeve between the for the Northern sought to disprove pro-Midland Quinn and the the allegation that Toronto was not pro-Northern D.L. Sanson. While close to the American market. A. Quinn won the contest, the overall Dodge, Vice President of the solution to the bonusing question Toronto, Simcoe, Muskoka Junction remained to be settled. Railway argued that it was close to Oswego, New York and would be a What made the various shorter and cheaper route.^ He promotional arguments believable also appealed to provincial was their verbalization of the loyalties by suggesting that the exaggerated vision held by the Port Hope connection would detract local decision-makers. The Midland from the development of Toronto and promoters, for example, were aware the province as a whole.^° The of the entrepreneur1s pride in the commercial leaders of fact that prices for goods in Orillia accepted the Orillia were the cheapest north of argument that the Toronto Toronto.^0 Thus the Port Hope connection was more connection was not only the advantageous to them. "shortest and cheapest" to the Out of sixteen investors British and American timber in the T.S.M.J.R.R., markets,^! but goods imported twelve were merchants. through Montreal would be cheaper than goods imported through Toronto The "Toronto Monopolists" 78 launched their most concerted effort extended. Consequently the local to crush their "audacious rival - decision-makers and the railway the village of Port Hope" by promoters took an active part in offering to construct a branch line stimulating interest in bonusing from Orillia to Victoria Harbour on the lines. The Orillia press led Georgian Bay.^' This extension was the propaganda movement to convince designed to make the Midland the townships of the need for rail extension unnecessary as the lumber expansion. When the Ontario companies of the area could be Legislature passed the act of serviced by Orillia businessmen incorporation for the defunct using the proposed branch line of Simcoe and Muskoka Railway Co., the the Northern. The entrepreneurs Orillia Expositor pointed out the were suspicious of this move. Led importance of township co-operation by the Orillia Packet, the Midland in terms of raising capital. The supporters warned the community editor argued that: that such a line would give the Northern Railway a virtual monopoly Much depends upon the action 1 of the area s traded to add to of the municipalities, from their already complicated hierarchy which it is proposed to ask of interests. In fact, the but little. To our mind, it Packet suggested that the Northern would be nothing more than was attempting to balance "too many reasonable [than] that the conflicting interests."^9 jt had settlers should set the to cater to Collingwood "and example with an offering, let maintain the monopoly of the it be ever so small," western trade," and it had to protect the interests of Toronto When the errant townships of and the lumbermen. Only then would Orillia, Oro, and Mara rejected it consider the "people and trade bonuses for railway construction, of this part of the country."^0 The the Packet chastised them for their Midland, on the other hand, had "selfish acts which might none of these conflicts and could jeopardize rail expansion."^^ The best operate in the interests of fact that Toronto and Barrie had Orillia.-^ The editor concluded previously voted bonuses for the his arguments with the exaggerated Northern failed to affect the vision held by the entrepreneurs decisions of these townships.^5 The concerning railways: Northern Light, Orillia^ maverick newspaper,5" Was also critical of At once our township becomes the stand taken by the three connected with , townships. During the time when at Port Hope, thus leading to this paper was a strong supporter the State of New York, to of the Midland, the Northern Light Montreal, to Quebec. At once took the occasion to suggest what we join ourselves to Lake was eventually to become the policy Huron and thus to the great of the decision-makers, that of Western States of the Union. giving a bonus to both lines. This Our land is increasing in would ensure that both extensions value, and immigrants flock would be built, stations would be in.52 located within the community, and neither line would have a The surrounding townships played an monopoly. ' important role in determining how quickly the railways would be The activities of the 79 decision-makers were more Junction Railway, tribute was paid successful in the townships to the to the part played by 0rilliafs west of the village. Tiny, Tay, decision-makers by one of the and Medonte all voted for bonusing speakers: the Midland. Eventually Orillia Township was to fall into line with Sure we are that a public a bonus as well. Consequently, the spirit so signally evidenced Orillia decision-makers had played will not be thrown away in a a significant part in obtaining people whose material enough support from the majority of interests have been so the townships to realize their eminently served in this growth strategy of bringing the single undertaking." village two competing lines. The implications of this growth The final solution to the strategy were perhaps best summed problem was worked out within the up by the Toronto Mail: confines of the council chambers. After numerous speeches, petitions The advent of the Midland and from the business community, and the Northern railways gave negotiations with the Northern and Orillia enviable connections Midland representatives, the issue with all Canadian points, and was finally resolved. Each line so marvellous was the effect received a bonus of $12,500 and by upon the trade and growth of 1871 both extensions were in the town, that in a few short service (see Map 3)." years the future of the place was assured."^ By seizing the initiative in railway promotion, the According to the same paper, the entrepreneurs played a decisive high standing of Orillia as a role in community development. business community was due to the Their strategy of having the "enterprise push and pluck of its village bonus both rail connections citizens" led by its business along with a successful campaign leaders ."1 for support in the surrounding townships was instrumental in IV achieving rail connections in a relatively short time. Not only The building of North did the entrepreneurs succeed in America's first municipal having the village council grant hydro-electric power plant in bonuses, but many of them invested Orillia was the high point of in Northern stock as well. Thus entrepreneurial decision-making. their policies afforded the village It was the last gigantic effort of the opportunity of becoming a rival cities as well as towns in centre on two competing railway the race to industrialize. In lines, an important factor as Orillia, as elsewhere, public power during the peaks of commercial was essentially a businessman's activity, the business community movement to forestall the loss of could, and did, pursue a diffuse business potential by providing a buying and trading pattern. cheap source of power.°2 jn their quest for growth, Orillia1s leaders At a banquet held in December, envisaged "state ownership entirely 1871 to celebrate the opening of consistent with faith in capitalist the Toronto, Simcoe, Muskoka enterprise" as supporters of public 80

power were "primarily interested in was made that private companies an economic fuel source which would might be a sensible alternative to promote local industrial public ownership, the majority of 6 growth." 3 jn order to enhance the decision-makers responded by Orilliafs business climate the explaining that private interests decision-makers launched a were too closely associated with "People's Power Movement" nine the profit motive66 to service the years before Sir Adam Beck town adequately and cheaply. As challenged the private electrical one councillor warned, the "trouble utility companies in Ontario.6^ Toronto and other towns had with Working from within the town private concerns [companies] should council and in consort with the be a lesson to them"6' not to Board of Trade, Orillia's follow suit and rely on a private decision-makers formulated a growth firm to supply their power needs. strategy which enabled the town to The Canadian Engineer adequately offset the declining timber trade summed up the attitude of the and the threatened demise of the Orillia decision-makers concerning community as a commercial centre the advisability of public for the Huskoka region. ownership:

Unlike Winnipeg, Hamilton, and It has been stated that Barrie, there was a marked absence municipal control.. , wou Id put of philosophical conflict over the the public works under the issue of private as opposed to hands of politicians or public ownership of utilities. designing men. There is no Orillia1s entrepreneurs spoke with reason why this should be the a single voice - they asked first, case on this continent any could the scheme be afforded and more than in European secondly, could the town make cities.... Toronto, Hamilton, progress without it. During the Kingston and other cities in high point of the promotional Canada own the city campaign of the Orillia press which waterworks, and we know that sought to enlighten the ratepayers there never has been a serious before they voted on the power complaint of this kind with development, the Times pointed out regards to that service."° that "CHEAP POWEPv DREW FACTORIES TO NIAGARA FALLS, AND CHEAPER POWER In fact, in each case a profit was WILL DRAW TIIE1I TO ORILLIA."65 made by the respective cities on their works.6^ Consequently, one Sentiment supporting public of the major selling-points the power stemmed from a healthy entrepreneur used to convince the distrust of the ability of the ratepayers of the value of the private sector to supply utilities scheme was that the entire at a reasonable cost. The community would receive benefit. entrepreneurs' experience with the One of the councillors who failure of a private firm to meet published his election manifesto in the town's water needs for fire the local press summarized how protection was not repeated with municipal ownership would aid the respect to electrical power. In town. He quoted the experience of fact, in 1886 when an arc plant was Hamilton, Ohio where the city owned built to light the streets, private gas, water, and incandescent enterprise was not even considered electric plants worth $597,000. as a possibility. Whenever mention The waterworks made a profit as did ~|BH||iïni|[ttBî>riT"

•ÇsliiJ"

M1RKCT STORE- ,

SeeT> Swell » *""""■ EVERVBODVWEUCtWE. MOOREAKERR. !£*

Mississaga Street, Orillia, 1 ooki ng east, in 1890s. 82

the gas plant which operated in project. "/:J Both in the press and competition with a private at public meetings, R.J. Parke firm.™ Thus with the question of carefully outlined the merits of ownership settled, the entrepreneur the power development. "Besides set out to convince the ratepayer having a cheap source" of power for of the affordability of the plan. their own use, they would "undoubtedly have a great Perhaps the crucial role the inducement to offer to entrepreneurs performed was their manufacturers." But, he cautioned: ability to convince the ratepayers to support the power scheme. In Factories will not be brought his inaugural speech "from the here while the power plant is throne" in January, 1898, Mayor only prospective; but once it T.H. Sheppard maintained that the is established, I should object in developing the power expect your town [to] become a source was to "furnish power users manufacturing centre, because in the town what power they would you would be able to offer need at cost, and what surplus was power in its most handy form left could be furnished also at at prices below cost price to any new industries compet i t i on•'^ that could be induced to locate there, and by this means "furnish In a concerted effort to minimize employment to our workingmen and the cost of the scheme, the artisans. "'1 In more grandiose entrepreneurs emphasized that the terms Sheppard outlined the development would not increase importance of water power as a taxes as the users would pay for source of wealth. He predicted the whole cost.75 ^he Times that: informed its readers that electric power would in fact The water powers of Ontario reduce taxes, increase the value and Quebec., .if properly of property, would "brilliantly utilized, contain wealth to a illuminate progressive Orillia," greater degree and in a more and would continue to generate enduring form than the mines outside interest as of B.C. All we require is the "manufacturers [were] already courage to harness them. And discussing Orillia as a place of to fall behind even location." Readers were also temporari ly in these days of assured that the scheme must be rapid movement of population financially safe as such men as and change of commercial T.H. Sheppard, J.B. Tudhope, C.J. routes may be fatal.'*■ Miller, three of the town's most illustrious entrepreneurs, were Sheppard' s speech not only "too wise in their generation to indicated the desirability of prepare another burden for their action but stressed the need for own backs." Thus it would be a haste. This message was reinforced "splendid advertisement" for the as the power promoters, like their town as much attention would be railway predecessors, used the generated "for the first prestige of the civil engineer to municipal power plant in the suggest the importance of time and world."'" The success of the to "draw a glowing assessment of promotional campaign carried on the practicability, permanent by the entrepreneurs was shown by worth, and miniscule cost of his the fact that the ratepayers Corner of llississaya Street and Peter Street, Orillia, in 1890s, 84 voted in favour of the scheme 350 owned system in North America. The 11 to 65. business leaders had indeed succeeded in establishing Orillia With the power project under as one of the most enterprising way, the decision-makers launched small towns in the province. As the second stage of their growth the Canadian Engineer commented: strategy - to offer inducements to potential customers who might be The town of Orillia has persuaded to relocate their plants. satisfactorily solved the C.J. Miller outlined the attraction question of municipal of Orillia to a prospective ownership, and has in customer in St. Catharines, Ontario successful operation an when he wrote: electrical plant which furnishes light for its the town will have about 300 streets and private h•p. to dispose of. As the consumption, and supplies town is anxious to induce power at such a cheap rate as manufacturers to locate here to have already superceded and as the plant will be owned steam in most of its and controlled by the town for factories, and induced a the public good as there are number of manufacturers to no shareholders looking for look to it as a desirable dividends this 300 h.p. of location for their surplus energy could be sold bu s i ness .^4 very ch eap . ^8 V The price of power was to be calculated on the wages paid out to This case study of Orillia*s workers. The larger the payroll, entrepreneurs has demonstrated that the lower would be the rate.'" these men were able to initiate and Consequently, free power was carry out decisions which played a offered to the Imperial Wall Paper key role in the town1 s development Manufacturing Co. to the extent of into a small manufacturing centre. 70 h.p. if the payroll was the Their pursuit of railways enabled equivalent of $40,000 yearly.°0 An them to exploit the economic attempt was made to induce the potential of the Muskoka and Oddfellows to build their projected Georgian Bay hinterlands. This home for the aged in Orillia by activity was important as it offering free light.°1 The town provided the necessary impetus for also negotiated a contract with the both commercial and small Provincial Government to supply manufacturing establishments to power to the Lunatic Asylum.°^ Some develop and expand. Had they not of the local industries were played a prominent role in railway concerned about new firms obtaining promotion, the extension of the a better deal on power, but the Midland R.ailway would probably have council assured them that such been delayed indefinitely and this would not be the case."^ would have had a similar effect upon the Northern. The latter On January 21, 1902, the line, without the imminent danger foresight and initiative of the of the competitive threat of the decision-makers resulted in the former could have built a branch transmission of hydro-electric line into the Georgian Bay-Muskoka power by the first municipally- regions from the existing line to 85

Collingwood or just as easily have be adequate to maintain growth. constructed a line due north from Without a change in direction, the Barrie and by-passed Orillia resultant manufacturing development altogether. Furthermore, either would have been impossible and railway could have proceeded up the Orillia would have been reduced to eastern shore of Lake Couchiching a small agricultural service centre and this could have thwarted buttressed with seasonal benefits 1 Orillia s dreams of controlling the from the tourist trade. That this Huskoka trade. It is interesting decline was avoided was due to the to speculate concerning the future initiative of those men who the villages of Atherly and Washago developed and implemented might have enjoyed had this taken successful growth strategies which place. Furthermore, without an overcame a potentially restrictive active bonus and investment policy, economic base, dependent on the it was unlikely that the community unreliable timber trade, and would have obtained stations, a encouraged the move into necessary prerequisite for the industrialization. Thus Orillia*s utilization of railways to their growth in the nineteeth century was maximum potential. Undoubtedly, in a large measure the direct the achievement of a railway result of entrepreneurial connection with Port Hope and with decision-making. Toronto played a large part in the economic development of Orillia. & "k -k With the completion of the Northern extension in 1871, Orillia NOTES underwent a period of steady growth both in terms of population 1 Gilbert A. Stelter and Alan increases and manufacturing F .J . Artibise, eds., The expansion (see Tables I and II). Canadian City: Essays in Urban 1 In all decades but one, Orillia s History (Toronto: McClelland population increase was greater and Stewart, 1977), p. 51. than that of Barrie, which had enjoyed a longer history and 2 See, for example, F.A. Dahms, consequently had a larger "How Ontariofs population, was the county seat for District Developed," Canadian Simcoe and which possessed a rail Geographical Journal, Vol. connection with Toronto as early as 94, No. 1 (Feb./Mar. 19 77), p. 1853. In spite of all these 5 2. See also Leo A. Johnson, initial advantages Orillia had History of the County of surpassed Barrie by 1911 in total Ontario, 1615-1875 (Whitby: population, in number of Corporation of the County of manufacturing establishments and Ontario, 1973), p. 135 and employees, as well as in total passim. value of products produced. The growth strategy of utilizing public 3 Stelter and Artibise, The power as a means of stimulating Canadian City, p. 51. manufacturing was successful. Had the entrepreneurs not pursued such 4 Ibid. See also Jacob Spelt, a progressive strategy, the town Urban Development in South- would have probably declined in (Toronto: population as, following 1891, the McClelland and Stewart, 1972), service centre function ceased to p. 148 . 86

5 Stelter and Artibise, The businessmen. Throughout the Canadian City, p. 16 1, See 1880s and early 1890s, they also C.N. Glaab, Kansas City carried on an extensive and the Railroads (Madison: wholesale and retail trade in State Historical Society of biscuits, drugs, clothing, and Wisconsin, 19625, p. viii. foundry products throughout the Georgian Bay and Northern 6 Stelter and Artibise, The District from Coboconck to Canadian City, p. 16 1; Miller, Parry Sound. See, for example, Men In Business, p. 91. the Ori Ilia Packet, November 1 5, 1895. 7 T. Nay I or, The History of Canadian Business, 1867-1914 16 The County Council had to pass Vol. II (Toronto: James a county by-law guaranteeing Lorimer and Co., 1975), p. 104. the debenture issue of Ori I lia for $75,000.00 for the power 8 Alan F.J. Artibise, Winnipeg: A scheme. Letterbook, Town Clerk Social History of Urban Growth, of Ori Ilia, Town clerk to R.I. 1874-1914 (Montreal: McGi I I- Banting, County Clerk, November QueenTs University Press, 25, 1899. 1975), p. 23. 17 To 1874, Municipal Government 9 A.T. Brown, Frontier Community; consisted of a Reeve and four Kansas City to 1870 (Columbia: Councillors, two elected by the University of Missouri Press, North Ward, and two by the 1963), pp. 88-89. South. After 1874, when OriMia was incorporated as a 10 Glaab, Kansas City and the town, along with the addition Railroads, p. 2. of a mayor, there were three councillors added for the new 11 Blaine A. BrownelI, The Urban West Ward, and the older wards Ethos in the South, 1920-1930 increased their representation (Baton Rouge: Louisiana State to three. It should also be University Press, 1975), p. noted that Orillia had a Board x i x. of Trade established in 1890 and that it existed for only 12 L. Gertler and R. Crowley, one year. This meant that the Changing Canadian Cities; municipal corporation was the The Next Twenty-Five Years major agency promoting growth (Toronto: McClelland and until 1898 when the Board of Stewart, 1977), p. 152. Trade was re-established.

13 Douglas McLeod, "0 r i I I i a : A 18 The Orillia Expositor, August Geographic Study of a Southern 21 , 1868. Ontario Town," B.A. Thesis (University of Toronto, 1953), 19 The Orillia Times, January 5, p. 20 . 1899.

14 Spelt, Urban Growth, p. 101. 2 0 M. Bliss, A Living Profit: Studies in the Social History 15 The local press printed of Canadian Business, frequent reviews of the 1883-1911 (Toronto: McClelland business climate for Ori Ilia's and Stewart, 1974), p. 10. 87

21 Alan F.J. Artibise, "The Usable 32 A.W. Currie, The Grand Trunk Urban Past: Perspectives on Railway of Canada (Toronto: Prairie Urban Development, University of Toronto Press, 1871-1951" (Bonnycastle 1957), p. 283. Memorial Lecture, delivered at the University of Winnipeg, 33 Town of Orillia, Council January, 1979), p. 10. I am Minutes, November 9, 1869. grateful to Professor Artibise for giving me a copy of this 3 4 Expositor, August 6, 1869. paper. 35 Town of Ori Ilia, Council 2 2 Artibise, Winnipeg: A Social Minutes, November 9, 1868.

Historyf p. 23. 36 Sessional Papers of Ontario, 35 2 3 Expositor, May 7, 18 67. V ict. , No. 24 , 187 1-1872, pp . 4-5. Toronto had 25 2 4 Ibid. shareholders, Orillia 16, Barrie 3, and Gravenhurst 1. 25 Ibid., December 17, 1874. 37 An Orillia delegation led by 26 See the introduction, by H . V . James Quinn spoke at meetings Nelles, to T.C. Keefer, The in Atherly, Warminster, and Philosophy of Railroads Penetanguishine on behalf of (Toronto: University of the Midland extension. Toronto Press, 1972), pp. x-x i . Expositor, September 9, 1869.

27 P.G. Goheen, "Currents of 38 The Northern interests Change in Toronto, 1850-1900," consisted of F.W. Cumberland, in Stelter and Artibise, The M.P.P., J.B. Robinson, Frank Canadian City, p. 57. Smith, A. McKellar, M.P.P., Wm. Lount, M.P.P., A.P. Cockburn, 28 Ibid. M.P.P. The Midland relied primarily on the efforts of 29 Expositor, April 24, 1G68. Col. D. Boulton and James Quinn. 30 Ibid., March 5, 1869. 3 9 The Northern Light, Orillia, 31 The Midland Railway originated in 1847 as the Peterborough and January 28, 1870. Port Hope Railway Company. In 1854, the name of the line was 40 Times, October 8, 1885. changed to the Port Hope, Lindsay and Beaverton Railway 4 1 Expositor, June 19, 1868. Company. In 1869, the final name change took place and the 42 Ibid., August 27, 1869. railway was called the Midland 4 3 Ibid. Railway. See Andrew F. Hunter, The History of Simcoe 4 4 Currie, Grand Trunk, p. 283. County, I (Barrie: The Historical Society of Simcoe 45 Northern Light, February 25, County, 1 948) , p. 204. 1870. 88

4 6 Ibid. 6 0 The Mail, Toronto, January 7, 1888. 47 Packet, May 11, 187 1 . 6 1 Ibid. 4 8 Ibid. 62 H.V. Nelles, The Politics of 4 9 Ibid. Development; Forests, Mines and Hydro-Elect ric Power in 5 0 Ibid. Ontario, 1849-1941 (Toronto: Macmillan, 1975), pp. 248-9. 51 Ibid. 63 K.C. Dewar, "State Ownership in 5 2 Ibid., February 20, 1872. Canada: The Origins of Ontario Hydro," Ph.D. Thesis 5 3 Expositor, January 15, 1869. (University of Toronto, 1975), p . 5 . 5 4 Packet, June 15, 1871. 64 H.V. Nelles, "Public Ownership 55 Toronto voted a bonus of of Electrical Utilities in $100,000 and Barrie voted Manitoba and Ontario, 1906-30," $20,000 for the Northern Canadian Historical Review, extension. Northern Light, Vol. LV I I , No. 4 (December February 11,1870. 1976), p. 46 1. Nelles dates the "experiment in public 5 6 The Northern Light under the ownership" in Manitoba and the ownership of Dr. Ramsay Ontario as 1906; Orillia original ly supported the launched their movement in Midland extension. However, 1897. early in 1870 his paper switched its support to the 65 Times, January 5, 1899. Northern. Ramsay later ran unsuccessful ly as a 66 Ibid., September 5, 1889. LiberaI-Conservative candidate in 1872, and many observers 67 Ibid., October 29, 1891. believed that Ramsay had been bought off by the more 68 Canadian Engineer, Vol. Ill, influential Northern interests. No. 10 (February 1896), p. Northern Light, January 20, 265. 1870. 6 9 Ibid. 57 Ibid., February 11, 1870. 70 Times, January 5, 1899; Report 5 8 Council Minutes, March 8, July of Black's inquiry made two 22, 1871; By Law #35, March 8, years previously. 1871; By Law #37, September 4, 1871 . 7 1 Packet, January 13, 1898.

59 The Irish Canadian, Toronto, 7 2 Ibid. Decembe r 6, 1871. 89

7 3 Keefer, Philosophy of Railroads, p. xx i i i •

74 Packet, December 22, 1898.

75 Times, January 5, 1899.

76 Ibid., February 2, 1899.

77 Ibid., February 9, 1899.

78 Letterbook, Town- Clerk of Orillia, C.J. Miller to Thomas L. Wi Ison, July 29, 1898.

7 9 Ibid.

8 0 Council Minutes, July 4, 18 99.

81 Ibid.

8 2 Ibid., February 14, 1899.

83 Letterbook, Town Clerk of Orillia, C.E. Grant to I. Laval lee, Canada Wood Specialty, March 10, 1898.

84 Canadian Engineer, Vol. X, No. 9 (September, 1903), pp. 235-237.