Canada and Its Provinces in Twenty-Two Volumes and Index
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::;:i:;!U*-;„2: UNIVERSITY OF CALIFORNIA AT LOS ANGELES (SDi'nbutgf) (ZBDition CANADA AND ITS PROVINCES IN TWENTY-TWO VOLUMES AND INDEX VOLUME X THE DOMINION INDUSTRIAL EXPANSION PART II The Edinburgh Edition of ' Caxada and its Provinces' is limited to Sjs Impressions on All- Rag Watermarked Paper This Impression is Nuviber /.iP..t> LORD STRATHCONA AND MOUNT ROYAL From a photograph by Lafayette CANADA AND ITS PROVINCES A HISTORY OF THE CANADIAN PEOPLE AND THEIR INSTITUTIONS BY ONE HUNDRED ASSOCIATES GENERAL EDITORS: ADAM SHORTT AND ARTHUR G. DOUGHTY VOLUME X THE DOMINION INDUSTRIAL EXPANSION EDINBURGH EDITION PRINTED BY T. ds" A. CONSTABLE AT THE EDINBURGH UNIVERSITY PRESS EOR THE PUBLISHERS ASSOCIATION OF CANADA LIMITED TORONTO 1914 . t ( * * " Copyright in all countries subscribing to the Berne Convention — F V. I O CONTENTS rAOK NATIONAL HIGHWAYS OVERLAND. By S. J. MLean I. EARLY GENERAL HISTORY ...... 359 Highways and Highway Travel— Beginnings of Railways n. THE MARITIME PROVINCES ..... 378 The Halifax and Quebec Project—The European and North American Project in. THE CANADAS ....... 39I Railway Policy of Francis Hincks—Railway Expansion in the Canadas IV. CONFEDERATION AND RAILWAY EXPANSION . -417 The Intercolonial—The Canadian Pacific—Railway Develop- ment in Ontario —Quebec Railway Projects— Rate Wars The Gauge Problem V. THE GOVERNMENT AND THE RAILWAYS .... 432 Eastern Expansion of the Canadian Pacific — The Grand Trunk "'. the Canadian Pacific— Manitoba and the Canadian Pacific—The Dominion and the Provinces—The Dominion Subsidy Policy VL RECENT RAILWAY DEVELOPMENT. .... 449 The Influence of 'Wheat'— British Columbia and the Yukon —The Canadian Northern—The Grand Trunk Pacific—The Great Northern in Canada—Government Railways—Govern- ment Aid— Railway Rates—The Board of Railway Com- missioners SHIPPING AND CANALS. By M. J. Patton I. SHIPBUILDING AND SHIPPING UNDER THE FRENCH REGIME . 475 U. SHIPPING ON THE GREAT LAKES, 1760-1812 . .48$ in. THE BEGINNINGS OK INLAND STEAM NAVIGATION . 493 On the Lower St Lawrence—On Lake Ontario—Un the Ottawa and the Ridcau—On Lake Eric vU — v-iii THE DOxMINION: INDUSTRIAL EXPANSION PAGE IV. THE CANALS OF CANADA ...... Under the French Regime—Under British Rule—The St Lawrence Canals—The Lachine Canal—The Beauharnois and Soulanges Canals—The Cornwall Canal—The Williams- burg Canals—Chambly Canal—The Rideau-Ottawa Canal System—The Rideau Canal—The Murray Canal—The Trent Canals—The Burlington Bay Canal—The Desjardins Canal The VVelland Canal—The Sault Ste Marie Canal—Minor Canals—Abortive Canal Projects— Proposed Canals V. THE DEVELOPMENT OF SHIPPING ON THE GREAT LAKES 536 On Lake Ontario and the River St Lawrence—On the Upper Lakes—Efiect of Railways VI. PRESENT-DAY GREAT LAKE LINES .... 55° VII. .MARITIME AND MINOR INLAND SHIPPING 558 Atlantic Coast Shipping—Minor Inland Shipping : Central Canada—Minor Inland Shipping: Western and Northern Canada— Pacific Coast Shipping VIM. SHIPBUILDING IN CANADA. ..... 574 Quebec as a Shipbuilding Centre—The Maritime Provinces IX. OCEAN SHIPPING ....... 589 Beginnings of Atlantic Shipping — The Royal William : First Atlantic Steamship — The Cunard Line — The Allan Line—The Dominion Line—The Beaver Line—Canadian Pacific Railway Steamship Line—Canadian Northern Rail- way Steamship Line—Other Canadian Lines—Pacific Ship- ping—Ocean Terminal Facilities THE BANKING SYSTEM OF CANADA. By ADAM Shoktt THE EARLY YEARS OF CONFEDERATION 627 OPTIMISM AND SPECULATION 635 CO.M.MERCIAL REACTION AND FINANCIAL DEPRESSION 639 A DECIDE OF GENERAL STAGNATION 642 THE CANADIAN BANKERS' ASSOCIATION 645 TWENTIETH-CENTURY EXPANSION . 646 RECENT DISASTROUS BANK FAILURES 648 THE CURRENCY ACTS 650 THE FUNCTIONS OF THE BANKING SYSTEM 652 ILLUSTRATIONS LORD STRATHCONA AND MOUNT ROYAL . Frontispiece From a pholografh by Lafayelle RAILWAY MAP OF CANADA, 1912. (In three sections) Facingpage ^^c) THE FIRST STEAM RAILWAY TRAIN IN CANADA ON THE CHAMPLAIN AND ST LAWRENCE RAILWAY, 1837 „ 370 From a print in tht Ch&teau de Ramttay SIR SANDFORD FLEMING .... ,,418 From a photograph by Topl/y, Ottawa SIR WILLIAM VAN HORNE .... „ 450 From the painting by Wyatt Eaton WILLIAM HAMILTON MERRITT . „ 524 From a contemporary photograph MAP OF THE GREAT LAKES SYSTEM OF SHIP- PING AND CANALS, 1912 .... « S38 MAP OF CANADA'S OCEAN SHIPPING, 1912. „ 590 SIR SAMUEL CUN.A.RD, Bart .1 596 From a eonttmporary photograph NATIONAL HIGHWAYS OVERLAND VOL. X 'MAI Ij WA^50ICA 'aultS J, eCu^Vitl <T^;5PV^ v..„.._ . -I'lflWkJ, A. ^' >-^ ii\fiif^ i^'J X'r\.. „ . \. ffOmrvda ^ ,,PhM A^ p»- -r- \ ,>~^\ /—TAJJ^oronto 1 pf''"""' * / , laK?'?1 ' CoblrHnU^ Alba ''''''''''i-,H'atiiHiu''y''' TWMmtogb C . rff ifti,*: Prepared expressly foJ 'ADA - EASTERN SECTION lida jtiiil h.s I'lMiviiirt* s' y^n^^ ^'^ 53ainw.«/iori. '"'"J ivitj, — <"'-lnnf i/Ayi'nisycs "Itu'wort ^-_ ^^ If" N . ^ lOturche f 'evils i^ji, ^"~"ttr', \" TMv-j=>jc2-^'~~-<v ir I „ _—^_ "SI- •^t^M" -^ ^ <'^&I0& ^^iv» luj^iv^' Ji- ''J^ RAILWAY SYSTEMS Canadian Pacific ^^mk . '"^ Canadian Northern m^Km^ . Mt/nl 'i/i/>/ia:> 1 Grand Trunk ^^^ Other Railways ^-«b EnalUK Mile.» !• «4* 9Q lao . -VW/.>.'i^ \ 1 a' 15 Lon^itudA ) ( :>« MtakMjb fit«^<yhfj blMMM* Prepared expressly ^op ADA - CENTRAL SECTION r Ir Tl»ut I. >o-' !-i' '• 7 "'*S^^»'"'S3|liLi, , a/ '_7l -rf^fliS^'^''^""*" I i^ mill Its I'rcivim-f s' Ofiliahu jJi \Bla^-w Roll atmi CV13*700 \^«^/T«AyprJMr MrGpikie ILOOO (>d^^X^ ^4i ^ Maceviil^. V'Zo^u^ S'- ^^^'teiUi^a *, CJiuti W"'"i Shutwan f I JV»'' j^Vi) \' \ \ Setorv. o -ji lA 1 5f;^>S"33«te*«"^,. vi^a^L' -I - «^- ^s^*sr -'''"•'.'/'f.vj \ - RAILWAY SYSTEMS Canadian Pacific ^m^m-* Canadian Northern ^^^^ . Grand Trunk m^^mm _ Other Railways mm^ ^ L^ la ZJuibui^t Geu^pineal Iiuti' Prepare cl expressly .DA - WESTERN SECTION ae , r-: - \ s »^hl>• iraiw*»^ j •....iinl-} : \ ^-.^ vC'* UraibMl^^jaOii tort lAirt^ ^( „\/- \J> r^'A „uJ,<^ '"} , it t„„, / ilku \ .«„J.I. ''•?; Be-r /^f'h J - \j/.."'-. tV,,,. 'Pnrk •• [ (.tore* , 1 . r3*fc- 1 rf--# SnA , ?3f^ r R«in**J*"^ *3.v^ J«b>F-' and Its ^ll.vlll,•l•^ NATIONAL HIGHWAYS OVERLAND I EARLY GENERAL HISTORY Highways and Highway Travel SETTLEMENT in Canada in the latter days of the eighteenth and the beginning of the nineteenth centuries followed the waterways. The extensive coast-line of Nova Scotia with its numerous indentations, and the rivers finding their estuaries therein, afforded a relatively easy method of travel and determined the early lines of settlement. In New Bnmswick the conditions so late as 1849 enable one to understand the earlier conditions. In that year Lieutenant-Governor Head pointed out in a dispatch to Earl Grey that the province was divided into long stretches of settlement with tracts of wilderness be- tween, which were traversed at a few points by roads leading from one settlement to another. North from St John to Madawaska the line of settlement followed the River St John for two hundred miles. There was also a thin fringe of settlement along the coast from Baie Verte to the mouth of the Restigouche. In travelling from the valley of the St John to Chaleur Bay the greater part of the journey was made by canoe, and it was necessary to spend five nights in the woods on the way. In the Canadas the early course of settlement was determined by the St Lawrence and the Great Lakes. While the almost continuous line of whitc-wailcd villages which is to be found along the shores of the St Lawrence is in part due to the French-Canadian system of subdivision of property, it is also in part attributable to the fact that in the earlier days the river was the only highway. 36o NATIONAL HIGHWAYS OVERLAND But when settlement began to press back into the fertile stretches of land more remote from the waterways, the need of overland highways began to be felt. In Lower Canada the ' Edicts and Ordinances ' of Louis xiv introduced the system of common roads which had prevailed under the feudal r6gime. This system was in general followed after the Cession. The supervision of road construction was in the hands of the Grand Voycr, a provincial official with extensive discretionary powers. In general each proprietor was responsible for the construction of the roads through his own lands. Where especial difficulties rendered such con- struction too onerous for the individual concerned, the Grand Voyer might declare the road a public work. In 1832 his powers were transferred to the Road Commissioners. This body exercised these powers until 1841, when they were transferred to the municipal authorities. One of the first acts passed by the parliament of Upper Canada, sitting at Newark in 1793, placed the local roads under the control of a superintendent elected by the resident ratepayers. Roads were to be constructed and maintained by statute labour. Subsequently the statute labour was de- termined in proportion to property. Every male inhabitant between twenty-one and fifty not rated on the assessment roll was liable for three days' work. During the period prior to 1841 the different provinces supervised the construction of the main trunk roads. In Upper Canada Lieutenant-Governor Simcoe, whose military training impressed him with the advantages of easy com- munication, planned a system of main highways which were to run north and south and east and west throughout the province. Thanks to his efforts Yonge Street was con- structed from Toronto to Lake Simcoe in 1794, the work being done by the Queen's Rangers. With the opening of this road the North-West Fur Company diverted its cargoes from the Ottawa to the St Lawrence, Lake Ontario, and this new portage road. This route gave a more expeditious connec- tion with the trading post at Mackinaw. The importance of this route to the transit trade across Canada is seen in the fact that the British goods which thus found their way to EARLY GENERAL HISTORY 361 Mackinaw were thence distributed as far south as the Spanish settlements at the mouth of the Mississippi.