CANADIAN SHIPPING

IN THE

BRITISH COLUMBIA COASTAL TRADE

"by

GEORGE MACDGNALD SCHUTHE

A Thesis Submitted in Partial1 Fulfilment, of tne Requirements for the Degree of

THE UNIVERSITY OF APRIL, 1950 Th© University of British Columbia, April, 1950.

CANADIAN SHIPPING IN THE BRITISH COLUMBIA COASTING- TRADE by

George^ Macdonald Schuthe

(ABSTRACT)

Withiir: the last one hundred" and thirty years,

the coasting tirade of British Columbia has passed through

four more or less distinct stager of development: the

era of the early trading monopolist, the Hudson Bay Company;

the rise of the small-scale shipowner; the growth of

corporate shipping ; and, in the first half of

the twentieth century, the predominating influence of the national railway companies, particularly the Canadian

Pacific.

Fast passenger steamers are usually associated

with shipping, and yet, the more

prosaic tug boats, tankers, and fish packers, if less

spectacular, are just as important to the economy of the

province. Coasting steamers as cargo carriers are, in

fact, in process of being eclipsed by scows and ,

which, in the sheltered waters of the coast, are more

cheaply operated than self-propelled freighting vessels.

The routes of heaviest traffic on the coast are - 2 -

those serving the areas of densest population on the lower mainland and central and southern Island. Indus• trial communities, dependent on water transportation, are, nevertheless, scattered along the entire coast line. As employment is often seasonal, and labour, transient, flexible shipping services are essential. Year-round operations on some routes are possible only because government subsidies are provided. The highly seasonal tourist trade utilizes passenger facilities to capacity for not more than three months of the year.

Finding return cargoes for their vessels is as much a problem for the companies as for the owners of scows and barges. In general, coastal liners are the carriers of general cargo shipped from distributing points; scows and barges, of bulk commodities shipped to processing centres.

Traffic trends point to an expanding volume of

cargo shipped in coasting trade, with unrigged vessels

carrying an increasing percentage of the total tonnage.

While passenger ship traffic has declined slightly from its

war-time peak, partly as a result of competition' from air

lines, fast new steamers, equipped with automobile decks,

offer an inducement to travel by sea and promise to retain

the bulk of passenger traffic for the ships. The geography

of the coast eliminates any threat of new and serious - 3 -

competition from railway and highway transportation.

High construction-! and operating costs have been the chief concern of the coast shipping industry since the second world war. Costs have more than doubled since 1939, but rates and fares have not increased proportionately.

In consequence, steamship operations, with few exceptions, have been unprofitable, and on routes receiving government assistance, subsidies have sky-rocketed. In the circum• stances, the stability of the rate structure is to be attributed to the strong position of the railway companies in coast shipping, and to the government's subsidy policy.

* * •* TABLE OF CONTENTS Chapter Page Preface 1 1 Historical Background 1 The Earliest Traders The Hudson Bay Company Local Shipping Enterprise, 1858-1883 The G-rowth of Steamship Corporations, 1883-1901 2 The Three Major Coast Steamship Lines 24 The 's British Columbia Coast Steamship Service The Union Steamship Company of British Columbia Canadian National : (Pacific Coast Service) 3 Other Coast Shipping Enterprises of the Twentieth Century 42 4 Fish Packers, Tankers, and Tow Boats 54 5 The Evolution:of Canadian Coasting Trade Legislation and Some Aspects of the Effect of Coasting Laws 64 6 The Extent and Nature of the Coasting Trade 72 7 Freight Rates and Fares 90 8 The Cost of Providing Coastal Shipping Service 108 9 Competitive Elements in Coast Trans• portation 123 10 Operating Results and Government Aid 141 11 Conclusions 151 Appendix-; British Columbia- Coast Steam• ship Fleets of the Twentiet-h Century 15S. BlMlOgraphy 163 LIST OF TABLES Table Page 1 Snipgr Built: in Canadian and in Non-Canadian: Shipyards and Serving in the British Col• umbia Coasting Trade 71 2 Arrivals at: and Departures from British Col• umbia Ports of Vessels- in- Coas-ting Service, 194? and 1948 73 3 Arrivalsrat and Departures from British Col• umbia Ports of TUgs, other than Foreign- going Tugs-, 1947 and 1948 74 4 Population of the British Columbia Coast T$ 55 Coastal Passenger Traffic, Port of Vancouver 82 6 Cargo Loaded at Vancouver by Canadian Ves• sels In:Coastal Trader 1949 84 7 Cargo Landed at Vancouver1 by Canadian Ves• sels in Coastal Trade, 1949 85 8 Extracts^ from Canadian National Steamships' Freight Tariffs 95 9 Firsti: Class One Way Passenger Fares on Four B.C. Coast Routes, I915-I949 100 10 Minimum First: Class Cruise Fares, 1918-1949 103 11 Size of Crew Carried in Representative Types of British Columbia Coast Vessels- 109 12 Comparison ofOew Labour Costs, 1939-1949 110 ly Prices of Nine Passenger-Cargo Vessels Built; for British Columbia Coastal Service 120 I# Canadian Merchant. Vessels, other than Tugs, of 200 Net; Register Tone~ and Over in Ser• vice: on the British Columbia Coast, 1928" - 1938 - 1948 15 S&own and Barges of 10 Net: Register Tons- and Over in Service on the British Columbia Coast, hy Age Groups 139 IS Distribution of Canadian Government:. Subsid• ies to West Coast*: Services, 1892-1950 146 17 Canadian Government Subsidies for West Coast Services, 1925-1950 149 LIST OF FIGURES Figure Page- 1 Passengers Loaded and Landed at: Vancouver Monthly by Vessels lm Coastal Trader (Bar Diagram) 83 2 Three-year Moving Average Trend Fitted to the-'. IKunher of Passengers Embarked and Disembarked at Vancouver in Coastal Service. 88 3 Three-year Moving Average Trend Fitted to the Tonnage: of Cargo Loaded and Landed at Vancouver In: Domestic Trade 89 Evolution! of Control of Coast Steamship- Operations^ by the Canadian Pacific Rail- 125 Growth; of the- Scow and ? Flee*.. Relative to the Self-propelled Fleet: in British Columbia Coasting Service CANADIAN SHIPPING IN THE BRITISH COLOMBIA COASTAL TRADE

Supplement

ERRATUM Table 3 on page 74. The title should be amended to read: DEPARTURES FROM BRITISH COLOMBIA PORTS OP TUGS, OTHER THAN FOREIGN-GOING TOGS 1947 AND 1948

ADDENDUM

For comparison with tables 6 and 7, on pages 84 and 85, the following tables are appended:

A. Cargo Loaded at Vancouver by Canadian Vessels in Coastal Trade, 1950 B. Cargo Landed at Vancouver by Canadian Vessels in Coastal Trade, 1950

February, 1951. - 1 -

PREFACE

British Columbia coast shipping invites the attention of students of Canadian economics and history, for- surprisingly little research; has: been devoted to the? subject. Tlhere: exists: now a: real danger that material of potential significance to future, studies will he lost Irrecoverably unless efforts are; soon directed towards the collection and retention.of documents that, if still extant, must lie hidden and nigh: forgotten! m musty trunks aaid boxes:. To shipowners, mundane business activities are merely of passing interest; the significance of the contribution "being made to regional economic development: is: rarely appreciated. Hence, superseded tariffs are burned, traffic statistics go unrecorded, and, when: operations cease, records are often destroyed. Only thirty years-ago, "Captain! Cuttle'1, columnist: in Harbour and Shipping, complained that"up to the: present time the Vancouver Harbour Commissioners do not ©ven: know what tonnage of merchandise, local or coastwise:, passes over our wharves — all they have la- an approximate guess mad© from: vagu©^ returns-.11 TH© writer makes no pretension to dealing - II - exhaustively with amy phas« of British Columbia coast; shipping im th© essay that follows:. Historical aspects of the subject are considered In some: detail in? an attampt, to discover the pat term of growth of the: Industry. Special attention is devoted to the effect of sharply rising costs iir the past dee ads. Unpublished" statistics have beeni examined to confirm? the writer' a- suspicions concerning the? importance of scows? and harg®?s: 1m coast transpor.tatlona. geographical?features of the coast are taken for granted. NO attempt'has been made to describe? structural and i mechanical characteristics?of coasting steamers, although it is conceded that improved design and the sdoptioa of• feree efficient methods- of handling cargo would certainly result in? economies of operation?. MM ther has the question oC" labour:"- unions- baenn glv«ni more than passing mentiom, for their ihfluence: ih coast shipping is too recent to justify conclusions arrived at; through retrospect ion. ffies term:"coasting trade", for which there is, In ; no precise-definition^ ise taken to Include the? whole of, the coast: from: Mexico to southeast era Alaska, all of which lies within the "home? trade" area. Emphasis is placed, however, oa? the section? from? Paget. Sound' to Hynn Canal", wherein the majority of Canadian coastal vessels operate. iii -

While: my own experience in coast: shipping since 1937 has-, I hope, helped in a realistic approach: to my subject, I gratefully/acknowledge the generous- assistance of many persons intimately connected with the industry in British: Columbia. Almost all those upom whom I called for information were gracious^ and helpful. Some; confident tlal material that came to my attention could not., of course;, be reproduced, although it: served to aid my under• standing of several mat tern. Thanks- are especially the to: Mr. J. M. Alderson, of the Passenger Department of the Canadian Pacific Railway; Mrs. j\ w. Allardyce, daughter of the late Captain: Duncan Mackenzie; Mr. Gf. F. Bullock^ secretary of the Canadian Merchant Service Guild; Mr. H." W. Cameron, secretary of the Vancouver Merchants' Exchange; Mr. Patrick Donovan, of: the G.P.R.'s Public Relations Offlee; Mr. J. Fenner, formerly with-the; Canadian-Mexican Pacific Steamship Company; Mr. L. B. G©re, of Young and Gore : Company, Limited; Mr. N. R. lacking, former Marine Editor of the Vancouver Dally Province; , Mr. W. Hately, until recently General Freight Agent!, in: British Columbia for the Canadian National Rail• ways; Mr. J. C. Hector, of the Griffiths Steamship:Company; Captain: J. A. Heenan, Director, and other officers of the: Subsidies Division, Canadian Maritime Commission.; Mr. W. B. McLaren; naval architect; Captain Nell MaeLean:, retired master mariner of Canadian National Steamships; Mr. Gf. A. MaoMlllan, Superintendent, of Canadian National Steamships:; Mr. K. Middleton, Manager of Dodwell and

Company, Vancouver; Mr. CT. E. Vlnc.en.tt, of the Bervin [email protected]/Company; and Mr. Mex<: Wood, of FritisnCOlumbla Steamships, Limited.

G. M. S.

Vancouver and Ottawa- - 11 -

CANADIAN 5 SHIPPING- IF THE BRITISH COLUMBIA COASTAL TRADE

CHAPTER 1

HISTORICAL BACKGROUND

A. The? Earliest. Traders?

1 T&m commercial value? ihi the Camfeon market, of saa^otrcfcier fiirs> reported plentiful on? the * coast of North America?, directly inspired trading voyages to the? new land. Captain James? Cbok, who visited the Pacific Coast during the spring and summer of 1778, wrote? ini hl&= account of the voyages THee fwr of theses amlaals (ff©a=-ott®rs) ... i'» certainiy softer: aad finer than that of any others we know of; and therefore, the disoovery of this part of the continent: of North America, where? so valuable3 an article? of: commerce? may he^ mete, with, cannot be a matter of; indifference. 1 Although Cook did not, live -to witness the profitable sale? in China of the furs brought from? America, Captalm James King, completing the narrative of the voyage* recounted;

COok and Kin®, A Voyage?- to the^ Pacific Ocearo. v. 2, p. 2961 - 2^-

Tfie whole amount: of the value, in: specie and goods} that was- got from the furs-, in both ships;, I am confident, did not fall short of two thousand pounds: sterling .... When ... it: is remembered, that the furs-were;, at; first, collected' without: our having any idea of their real value;; that: the greatest part had been worn by the: Indians; from whomi we purchased1 them* that they were: afterward preserved with, little: car@i and frequently used for bed• clothes-, and other purposes* during our: cruize to the north; and that, probably, we; had never got: the full: v/alue for them: in China-? the advantages-that might be-derived from-a voyage- to that part:of: the- A&ericani coast:, undertakeni with commercial views;, appear to me of a-degree of importance sufficient to: call for the: attention of the Public:. The rage witiii which:our seamen: were: possessed to returna to Ctook's? RlVer, and, by another cargo ofi skins, to:make? their: fortunes, at one time, was not far snort of mutiny; and I must own, I could not: help ;indulging: myself, ins a- project ....: The report of a lucrative trade awaiting exploitation spurred enterprising merchants; and adven• turers to outfit expeditions-to the Northwest: Coast. Beginning, with the arrival at; NOotka: in August, 1785, of: a-small brig, fromi Macao under Captain James Hanna> a processiom of trading vessels came from; Bombay, , and Boston: seeking furs; some: vessels trading under licence? of the East India; and South Sesp monopolies-, and others, though British!, exhibiting the colours of Austria: and Portugal in; order to make tBnable their trading: position! im the Pacific. One of the adventurers:, Captain

Ihld, v.3> p.*57; John Mearesi who had spent the winter of 1786-7 collecting finrs inoPrince William SOund, brought two vessels to NOotka So?und in 1788, established harmonious^; relations with the native chiefs, and traded on the coast between 45° 30' and1 60° north latitude. Meanwhile:, Meares: left his: shipwrights: at NQotkato construct: the "NOrth-rWest America*, ""being the first bottbrni ever hullt and launched in; this part of the? globe;. * ^ The small v/essel was, in

May, 1789, seized by /as Spanish frigate, the: incident precipitating am Admiralty decision to commission an eocpedition under Captain George Vancouver for the purpose of-safeguarding British trading interests and surveying the coast north; of 30°. United States trading vessels:, the^ first of which had entered the; sea^- trade at NOotka- in 1788, came; im Increasing numbers to the Northwest Coast: in: succeeding years. The historian Begg notes! Ifial801, which was the: most flourishing period of the trade, fifteen: United States: vessels were engaged trading on the west coast, hut only one? British; During this year the United. States vessels "brought 18,000 skins to China; 4 Americanipredominance was largely the result of the East

5 Meares-; Voyages, cited: in Bancroft, History of British Columbia, p.€>, n. ^ Begg, History of British Columbian p.851. . 4. -

India Company' s monopoly in the? Pacific, a hindrance to th© participation of British adventurers:? lm the China market for furs; The: American position? was all hut: consolidated with the establishment: of Fort Astoria by the: Pacific Fur: Company at: the mouth of the when:the War of 1812 brought to a temporary halt Americani activities on? the coast. However, the North-West. Company of.Montreal, finding it impossible: to: utilize British supply ships that came around the Horn: from. England to carry furs to the. restricted Canton market, was forced to turn to American carriers.

F. The midsoni Bay Company

The: amalgamation of - the NOrth-rWest Company and the Hudson Bay Company In? 1821 began? a? new era ih: the development of the Pacific Coast. A small , built in 1826" at Fort Vancouver, om the Columbia, to trade along the coast was joined In: the following year by: the brigan- tine "Cadboro", from:England^ and several other sailing vessels were subsequently added to the coast fleet. Wind- propelled vessels, however, were?, owing to the hazardous coastline with treacherous river bars, narrow passes, and swift currents, Inadequate for maintaining service with desirable regularity. By 1834, the steam packet had proved itself In; British coastal shipping, and the "Royal William" had crossed the Atlantic. It: was not surprising^ therefore, that the Hudson Bay Company should have ordered a steamship for the Northwest Coast. On May 2,

1835, the steamer "" was launched at the yard of Green, Wigram, and Green, in Blaekwall. Two thirty-five: horsepower engines, constructed by Boulton and Watt^ turned side paddles to give the little vessel s trial speed of 9f knots. The "Beaver", accompanied by the barque "Col• umbia", arrived under sail at Fort Vancouver on April 10, 1836. By the beginning of summer the steamer was in coast service, burning wood im her fires, carrying supplies northward to the company stations at and Fort Simpson and to Sitka, base of the Russian American Fur Company, with whom trade agreements had been effected. Fort McLOughlin, on Mllbanke Sound, Fort Stikeen, and Fort Tako became ports of call in the next few years, company business then employing four sailing vessels and the new steamer exclusively in coast trade. Although financial losses borne by the company were, at first, heavy, an effective monopoly was established which was "to clear the shore forever of Boston ships and BostOED men." ^

5 Bancroft, History of British .Columbia:, p*60. - 6 -

In-order to lessen dependence on remote sources: of agricultural supplies, the Hudson-Bay Company encouraged farming-at; Fort-Vancouver and, more particularly, at the head of where, at Fort Nisqually, the Puget Sound Agricultural Company was: established in 1839• Thence• forward, local flour, butter, potatoes, beef, mutton, and pork made- up: ar large share of food cargoes:.

By 1843, the: increasing pressure of American settlement between the Columbia:River and Puget Sound had forced" the Hudson: Bay Company to s©ek a: new depot for coastal" operations; The- harbour of Camosuni, at the southern end of: Vancouver: Island, was selected after much deliberation, and a fort established there. Supply ships-from England began to sail directly to Fort : (as the new base was:named in 1845") rather than to Fort Vancouver, and, with the ; Treaty of 1846", the latter post lost Its significance iii company affairs. The California provided a"fillip-for the growth of Fort Victoria, American coasting vessels from finding It profitable? to carry miners' supplies from: the Hudson^ Bay Company's post. While for some time coal was?known to exist on

Vancouver Island, not until1 1B49 did the Hudson: Bay Company s^ee fit to combine mining with its fur trading operations. Then, efforts were made to extract: merchantable coal at - 7 -

Beaver Harbour, where Fort Rupert was established. Greater success rewarded operations at Harbour; in May of 1853 the first; full cargo was: shipped out to San Francisco. The growing scarcity of prime furs: directed the company to exploit:not; only mineral resources, but also the abundance; of the sea. Fort Langley, at the middle of the century, was packing two thousand barrels of salted salmon lit a season. in 1852, 'the company ordered from Greenes yard at Blackwall a:second steamer for the Pacific Coast. Despite Admiralty scepticism, screw, rather than side-wheel, pro• pulsion was- decided upon— at tribute to the company's prescience. Reaching Victoria in June, 1853, the new steamship MOtterM joined the coast fleet, in subsequent years making occasional trips south to San Francisco with consignments of cranberries; and produce from) Fort Dangley and coal1 from:Nanaimo. Jealously guarding its- commercial monopoly, the Hudson Bay Company forestalled all local competition for nearly a'decade after the formation, in 1849, of the colony of .^ The gold rush to the Fraser River

°" Denys Nelson1 cites an Instance of Hudson Fay Company tactics in: dealing with competitors: Captain: James Cooper, an Englishman^ entered the service of the Company in: 1B44, and commanded the hark ^Columbia" at; one period. Owing to ill - 8 -

In 1858 brought to an; end the existing comfortable order. Thousands of gold-hungry passengers from California were landed from? American: ships at Victoria to find transportation hy steamer, canoe, or skiff to Hope. Because the two company steamers "Beaver" and "Otter", operating between Victoria and Fort Langley, were unequal to the demands made upon, them for passage, and the Americans were threatening to,by-pass Victoria by cutting a pack trail from; Bellingham: Bay to the Fraser Canyon, Governor Douglas decided to

health he: left the sea and started farming on a large scale on Vancouver Island, taking up land at; Metchosinj, He brought orak. an irom vessel from England im seetionsr, which were "assembled" at Victoria; and, with Thomas Blsnkhorm as- partner, proposed trading with the Indians^. In 1852 the partners came up the Fraser to the Katsey Indians, now Hammond, and bought cranberries and potatoes for the San FrancisGO market. Cranberries were plentiful invtihe Delta, and Cooper purchased a barrel for 75^, to be sold later for §1.00 a? gallon. Cooper had, however, relied upon being able to procure his barrels; so necessary for this purpose, at Fort Langley, where they were made extensively for the salmon industry. He estimated that the cost to the company would be about: 30^ eachi. The company, however, strongly disapproved of the stranger poaching upon; their preserves, and would only sell 100 barrels for $3.00 each cash. Douglas" furthermore sent orders to Langley to purchase all further berries so that no such mattier would occur again. Nelson, Fort Langley. 1827-1927, A Century of Settlement, pp.19,20. - 9 - license, on terms favourable to the company, United States vessels to supplement existing transportation services. The influx of thirty thousand miners into the Hudson Bay Company's preserve: resulted in the revocation: of exclusive trading rights and the formation of the colony of British: Columbia. American:shallow-draft steamers came virtually to dominate the river carrying trade, for the deeper draft: "Otter" was unable to navigats the channel above Fort: Langley^ As excitement on the Fraser subsided:, Americani steamers withdrew, leaving the river trade to local competitors, particularly the British Columbia and Victoria Steam Navigation:Company. The third steamer to join the Hudson: Bay Company's coast fleet, the "Labouchere", arrived at . from England ini January, 1859, and was placed in the service of the northern:posts. After considerable agitation for a British flag steamer to rum between Victoria and San Franeisco, the "Labouchere" was awarded a subsidy of f1,500 a trip to carry passengers and mail between the two ports. Unfor• tunately, on:her second trip, In April, 1866, she struck: a reef after leaving and sank. From 1863 to 1870 the "Beaver" was out: of company service, engaged in-coast survey work for the Imperial Government. Her place on: the northern coast run was taken by the: "Otter" while the passenger and cargo service betLweem Victoria and was carried on by the side- wheeler "Enterprise", purchased early in: 1B6"2 from American owners. In:1874, after a short time im the Victoria and Nanaimo passenger trade, the "little black steamer", as the "Beaver" was: affectionately known, ended her career under HudsomBay Company colours, being disposed of to a Victoria firm for towing duties. In order to meet the aggressive competition of Irving's Pioneer Line* which had purchased the "Wilsom G-. Hunt" for Victoria— Fraser River service, the Hudson; Bay Company acquired the American sidewheeler "Olympia" in; 1878, transferred her to British registry, and, a few months later, renamed her "Princess Louise". Under threat of ruinous competition^ the company and Irving came to an agreement;, to quote "through" rates between Victoria and up-river points;. Hudson; Bay Company ships were left to maintain; the Victoria - New Westminster route and Irving's sternwheelers operated above the Queen City. On through traffic, freights were apportioned two-thirds to Irving and one-third to the company. Despite the settlement* small independent steamers, running directly betweenVictoria and Yale and thus obviating the necessity of trans-shipping at: New Westminster, forced a- more satisfactory compactt. As a result, the HudsomBay - 11 -

Gompany's coast shipping business and the Pioneer Line: were merged in January, 1883, to form the Canadian Pacific Navigation:Company.

C; Lfccal Shipping Enterprise, 1858-1883

The Fraser gold rush attracted from American coastal trade the Pacific Mail5 Steamship Company's steamer "Surprise" and John T. Wright's "Sea Bird", followed by a number of other-United States craft. More significantly, the lure of fortune brought to the colony of Vancouver Island a number of enterprising shipmasters who were destined to play reading parts In the development of coast- shipping. Such men:were: Captains Alexander Murray, William Moore, William Irving, and James Warren.

Captain:Murray entered the Victoria - Fraser River tirade in January, 1859, as master and part owner of the s terawhe el er "Governor Douglas:", built, at Victoria for the Victoria Steam Navigation Company. The same group of promoters, under the name of British Columbia Steam Navigation:Company, took delivery a few months later of a; sister ship, the "Colonel Moody", which they placed in service omthe Fraser between New Westminster and Hope. Ah audacious attempt to secure from:the governor of the colony the exclusive right to navigate the river having 12 - proved fruitless, the syndicate engaged in;intensive rate- cutting struggles with its American and Hudson Bay Company rivals and with a new competitor, Captain William Moore, whose shallow-draft sternwheeler "Henrietta" had the advantage of being able to steam up-river as far as Yale:. Captain Hurray, in i860, disposed of his share in: the Victoria and British Columbia Navigation Company, as the syndicate became known, to Captain William Irving. Two years later, the company was bought;out:by Captain John Wright, Jr., to operate in conjunction with the American vessel "Eliza Anderson" on: the Gulf of Georgia route. Ruinous competition, however, forced him off-the river late in:1863.

Meanwhile,- Gaptaim'Irving had returned to the Fraser with a new sternwheeler, the "Reliance", which proved itself a:popular vessel and a profitable investment. The "Henrietta" was-taken over by the partnership of Captains Charres Millard and Asbury Insley, who operated her with the "Hope" and "Caledonia". ^ Captain Moore^ returning to the Fraser with the "Flying Dutchman" asfter a period of remunerative trafficking on the , was joined' by Captain Insley in:a venture to build and operate; the

blg: sternwheeler "Alexandra". Yet another competitor was

The "Caledonia" was actually the first steamship: built in the colony of Vancouver Island, having been launched for San Francisco speculators on September 8", 185B. - 13 - the? Port Douglas Steam Navigation Company's fast: steamer "Lillooeif1, im service to Yale. Reflecting subsiding Cariboo:mining fervor, the year 1864 brought-Moore, Millard, and the "Lillooef s" owners to bankruptcy. Only the indomitable Irving among Fraser steamboatmen survived the financial reverses of the middle '610's, even: going ahead by builoling: the "Onward" to joim his successful "Reliance". Captain-; John Fleming, late of the Port Douglas Steam Navigation Company, was able eventually to recover the "Lillooet" and return her to service.

In an effort to break into the American monopoly in the carrying; trade between Victoria and Sin Francisco, a;British passenger and cargo steamer, the "Forwood", arrived on the coast in; the spring of 1859. Her owners, disheartened, withdrew her at the end of the summer when she had failed to realize their financial expectations. The first screw-propelled steamship built on Vancouver Island, the "Emily Harris", took the water early in 1861 and served for a decade as a general cargo carrier around the Gulf of Georgia. She was mainly occupied in; the transport of cattle from New Westminster to Victoria and coal from the Nanaimo mines, newly acquired from; the Hudson Bay Company. Apart from freighting, she engaged In towing when opportunity presented. Exploitation;of the forest resources was gathering momentum during the '60'a, demanding vessels not only for towing duties but also for supplying the; sawmills. Stamp and Company, at; Alberni, acquired two steamers, the "Diana" and the "Thames", for their coast shipping requirements. On Burrard Inlet:, Stamp's company, the British Columbia and Vancouver Island Spar, Lumber, and Sawmill Company, operated the sldewheeler "Isabel". The coal mines, too, were expanding production!and securing vessels to serve their coast shipping needs. The Vancouver Island Coal Mining and Land Company in\lB63~ brought: fromi England the "Fideliter", a small fitted to carry passengers, and placed her on: the Nanaimo - Victoria; and Nanaimo - New Westminster routes. After two years' service the vessel sank following a collision! with the "Alexandra". In 1865> the government screw steamer "Sir James Douglas" went into operation, transporting settlers' effects on the Vancouver Island coast and relieving on mall and passenger routes when not otherwise engaged on her regular duties under the colonial administration; The report, nine years later, of the British Columbia Agent for the Department of Marine and Fisheries bears witness to her rigorous employment The vessel under the British Columbia Government was badly used. She had been running for some years - 15 -

out of repair, each year adding to the ultimate expense of placing her in good order, until finally by the breaking of her shaft she was rendered in her then present condition; useless for any service. 8 The 1870's brought to an end the recession of trade on,the Fraser, besides diverting attention; to other rivers of the northern coast. Captain Fleming, in failing health, was succeeded by Captain Otis Parsons as of the "Lillooet" and the rebuilt: "Hope". When Captain William Irving died suddenly In 1872, his son, Captain: John Irving, still little more than a youth, assumed his father's business responsibilities; Hoping to profit from the gold excitement; in: the Cassiar, young Irving ordered the stern- wheeler "Glenora" and took her to Wrangel^ at the mouth of the Stikine River. Parsons followed with the "Hope", and Captain:Moor6j in 1875:, with his new acquisition, the "Ger• trude". In the struggle for monopoly that ensued, Irving took over the assets of Captain Parsons, including the new steamer "Royal City", and built another "Reliance". Moore was triumphant on the Stikine.? Irving emerged with; only the Hudson Bay Company opposing him.in the Fraser River trade. As usual, such victories were short-lived. The lucrative business presented by construction of the Canadian

° Canada, Department of Marine and Fisheries, Seventh Annual Report, for the fiscal year ended 30th June, 1874, Ottawa, MacLean, Roger and Company, 1875. - 16 -

Pacific Railway from Yale to Kamloops revived fierce competition among the rival steamship interests.

Irving, to prepare for anticipated heavy traffic, purchased an American sidewheeler, the "Wilson. G-. Hunt", for the Gulf run, thereby forcing the Hudson Bay Company into a co-operative agreement to share the profits of

"through" traffic between Victoria and points above lew

Westminster. Inevitably, Captain: Moore reappeared to contest the Fraser River monopoly, placing his sternwheeler

"Western Slope" on the Victoria - Few Westminster - Yale route* Irving countered by resuming the Victoria service in spite of his profit-sharing obligations to the Hudson

Bay Company, adding the fine steamers "William Irving" and

"Elizabeth J. Irving" to his Pioneer Line, fhe loss of

the latter ship-in 1881 nearly ruined Irving. Financial

assistance enabled him to carry on and to replace his burnt

ship with the "R. P. Rithet", named after a prominent

Victoria businessman who had interested himself in the Line.

The determined competition proved too much for Moore:, and

his ship passed into the hands of his creditors.

While none of the few attempts by British vessels

to break into the Victoria - San Francisco passenger and

cargo trade was successful, British sailing craft frequently

were engaged in the carriage of coal from Nanaimo to the - 17 -

California market. Seventeen colliers were so employed in;l865. Local Vancouver Island and mainland coasting voyages were made largely by sailing . A schooner, the "D. L. Clinch", In December, 1859, sailing from New Westminster to San Francisco, carried the first export cargo, consisting of cabinet wood and cranberries, from the colony of British Columbia. The famous old "Beaver" reappeared in 1874, towing and freighting for Stafford, Saunders, Morton and Company, and in this capacity was often employed attending deep-sea- vessels at Victoria and Nanaimo harbours. The next year, a former British gunboat, the "Grappler", converted for the mercantile service, went on the Victoria - Wrangel route, linking up with Captain Moore's Stikine River steamers. Two of the smaller steamships that appeared in the late *70's and became well-known in British Columbia waters were the "Woodside", which operated between and Victoria, and the "Skidegate", launched as a cannery tender for the Queen Islands; Joseph Spratt in 1875 acquired the oddly-named "Cariboo and Fly", a rebuilt sidewheeler that had been employed as a towboat and freighter around Victoria. With the "Wilson G-. Hunt", bought in 1881 from the Pioneer Line, and the "Maude", Spratt operated the East Coast Line, - 18 - serving Victoria, Hanaimo, and . Another Victoria organization, the British Columbia Merchants Line, operated by Captain James B. Warren and Joseph Boscowitz, a fur merchant, brought from England the steamer "Sardonyx" and placed her for a few years on a semi-monthly schedule between Victoria, Nanaimo, New Westminster and San Francisco. The Merchants Line fleet also included the new steamer "Barbara Boscowitz", running up-coast to , Naas, and Stikine River points, and a number of steam schooners, available for general freighting.

D. The Growth of Steamship Corporations, 1883-1901

The agreement between the Pioneer Line and the Hudson Bay Company to apportion receipts on "through" traffic between Victoria and up-river points on the Fraser was proving less than satisfactory, financially, to the Line's backers. Meanwhile, Captain Irving's connections, both business and social, with officials of the trading company were becoming more and more closely knit. In 1882 he married the daughter of the chief factor at Victoria. Early in 1883, he negotiated successfully the consolidation of the Hudson Bay Company's shipping interests with his Pioneer Line and, at the age of twenty-nine, became general manager of the new corporation, the Canadian Pacific Navigation Company.

Directors of the newly-formed organization Included, - 19 - besides Irving, Alexander Munro (Irving's father-in-law) and William Charles, of the Hudson Bay Company; Robert P. Rithet, J.P. (Irving's brother-in-law), a Victoria importer; and Robert Dunsmulr, Vancouver Island capitalist. Prominent shareholders were Captain William Spring, well-known in the. fishing industry; Peter McQuade, a Victoria ship chandler; and M. W. Tyrwhitt Drake, barrister at law. The company was incorporated on January 6, 1883, with capital stock of #500,000.

The combined fleet brought under one house flag the following vessels: "R. P. Rithet", "William Irving", "Reliance", and "Western Slope", from the Pioneer Line; "Princess Louise", "Enterprise", and "Otter", from the Hudson Bay Company; "Maude" and "Wilson Gf. Hunt", from Spratt's East Coast Line; and the "Gertrude", acquired from the British Columbia Merchants Line. Within a few months, the fast sidewheeler "" was purchased in San Francisco from the Central Pacific Railroad and placed on the Victoria - New Westminster route. Three main services from Victoria were offered: the Fraser River route: sailings daily with connections to the interior; the East Coast route: tri-weekly sailings for Nanaimo and way points; and the Northern route: twice-monthly depar• tures for ports between Alert Bay and Wrangel.

Opposition on the Victoria - Nanaimo route came - 20 -

in 1884 with the formation of the Peoples Steam Navigation Company, hacked by prominent Island citizens, among them •- John H. Turner, later provincial Minister of Finance. The company acquired an old United States sidewheeler, the "Amelia", and placed her under the British flag in competition with the MR. P. Rithet" on the East Coast route. The rate war that ensued ended when the Canadian Pacific Navigation Company agreed to withdraw its steamer in return for a grant of one-quarter of the gross earnings of the service. However, completion of the Esquimalt and Nanaimo Railway in 1886, and competition from the powerful Dunsmuir organization, adversely affected the fortunes of the Peoples Company.

In 1889, the "Amelia" was disposed of to the Canadian Pacific Navigation Company and retired from service soon afterward. Meanwhile, Turner, Beeton and Company, agents for the Peoples Steam Navigation Company, acquired the steamer "Rainbow", originally built in 1884 for Captain Moore under the name "Teaser", and operated her on the east coast of Vancouver Island.

The completion of the Canadian Pacific Railway to Burrard Inlet designated Vancouver as Canada's Pacific gate• way, ending Victoria's cherished hope of becoming the terminus of the transcontinental System. Ready to take advantage of the traffic created by the railroad, the 21 -

Canadian Pacific Navigation Company inaugurated steamship services connecting with the C.P.R. trains. Modern passenger vessels were ordered: the "Premier" from San Francisco builders for Puget Sound trade, and the twin-screw "Islander" from a shipyard for the Vancouver - Vic• toria route, as well as for occasional voyages to Alaska. While American eoastal navigation laws made it expedient to operate the "Premier" under United States registry, the vessel, after a serious collision in Puget Sound, came under British registry as the "Charmer" in 1894. To provide, connections with the Columbia River and with northern British Columbia, the veteran "Sardonyx" was purchased and operated until her loss in 1890. Replacing her, Commodore Irving acquired the "Danube", a British steamer brought to the coast under charter to the Canadian Pacific Railway. For the west coast of Vancouver Island, where the demand for transportation'; was-increasing, the company offered three sailings a month from Victoria to Barkley Sound points, using, at different times, the steamers "Maude", "Willapa", and "Tees". The Gulf Islands, too, were given regular steamer service.

Robert Dunsmuir, the leading figure in Vancouver Island capitalistic enterprise, in 1888 purchased Stamp's old sidewheeler, the "Isabel", and entered her im service - 22 - in. conjunction-! with the Esquimalt and Nanaimo Railway. In 1892 she was succeeded by the new wooden steamer "Joan" on the Victoria - Comox route. The service was expanded in 1896 with the acquisition of the "City of Nanaimo", which, for five years, had been operated between Nanaimo, Vancouver, and the Fraser River by the Mainland and Nanaimo Steam Navigation Company, Limited, of New Westminster.

Thirty mills were occupied in.1889 in sawing nearly forty-four million feet of logs cut from the forests of Vancouver Island, the Gulf Islands, and the lower main• land of British Columbia. Expansion of the industry to the. virgin forests of the northern coast was inevitable. With a view to serving the scattered logging camps, the Union Steamship Company of British Columbia, Limited, was organ• ized. Of the company1s early passenger steamers, the "" was entered in competition with Captain William. Rogers' steamer "Robert Dunsmuir", the "City of Nanaimo", and the "Rainbow", on the Vancouver - Nanaimo route, while the "Comox" furnished a weekly service to settlements northwest of Vancouver along a hundred miles of coastline;. Besides its regular cargo and passenger trade, the Union Steamship Company advertised excursion; trips and engaged in general towing.

The Klondyke gold rush awakened shipping interest, in Victoria and Vancouver in the summer of 1897. In the - 23 - van of Canadian ships attracted to the boom trade was the Union:freighter "" which, with her sister ship "", carried the bulk of early Vancouver traffic. The Canadian Pacific Navigation Company assigned the

"Islander*1, "Danube", and "Tees" to the Alaska service, operating from Victoria to Wrangel, Juneau, Skagway, and Dyea. F. C. Davidge and Company, Victoria shipping agents, chartered the collier "Bristol", fitted her with bunks for passengers and stalls for horses, and placed her on the Alaska run. The Canadian Pacific Railway, which had, so far, remained out of competitive coastal shipping, diverted its ocean steamers "Tartar" and "Athenian" into the trade in:1898. Another large British steamer, the "Ningchow", went on the northern route under charter to Evans, Coleman and Evans, shipping agents of Vancouver. Both the Canadian Pacific Navigation Company and the Union Steam• ship Company expanded their participation, in the trade, the former adding the newly-acquired "Amur" and the "Princess Louise", the latter, the "Cutch". The volume of Klondyk® traffic reached its peak early in 1898 and began rapidly to fall off by the end of the year. Nevertheless, completion of the railway between Skagway and Whitehorse in.1900 justified the continuation;of regular steamship service. - 24 -

CHAPTER 2". THE THREE MAJOR COAST STEAMSHIP LINES

A. The Canadian Pacific Railway's British Columbia Coast Steamship Service

Commodore Irving had gone north in.1899 to pioneer new steamboating frontiers. He "probably did more than any other In. solving the problems of transpor• tation to the Yukon and both he: and his ships became as well and popularly known in,the north as In; the waters of British Columbia ...." ^ For several years, despite; the acknowledged hostility of "Victoria interests who supported the locally-owned Canadian Pacific Navigation Company, the Canadian Pacific Railway had contemplated establishing its own coastal steamship-line; to connect at Vancouver with the railroad. Finally, the railway company succeeded In negotiations to purchase the entire fleet of fourteen: steamers of the Canadian Pacific Navigation Company, and In January, 1901, the change was effected with Captain J. W. Troup's appointment as manager.

Imits first summer of operations, the new organization; suffered th© loss of the wIs^ander,, in northern

Howay^ British Columbia, v. 4, p.1079. 25 -

•waters, a set-back to the Alaska service alleviated only by the timely acquisition of the steamer "Hating", later known as the "". The; main routes served in: early years by the company's vessels were: Vancouver to Victoria: and :; 4Victoria to Ahousetu, Cape Scott:, and way points; Vancouver to Alert Bay, , Kama, and Naas River points; Vancouver to Queen Charlotte Islands points; and Vancouver to Skagway, and way points. Until 1905 the "R. P. Rlthet" ran between Victoria and Mew Westminster, connecting with the "Transfer" and "Beaver" for Fraser River settlements. Fromthe beginning, the Canadian Pacific Railway Company undertook a progressive policy of expanding its British Columbia Coast Steamship Service through the purchase of modern, specialized steamers. First of a line of charac• teristic three-funnelled passenger vessels, the "Princess Victoria" arrived from her Tyneside builders in 1903 to begin an accelerated schedule of sailings: between-Vancouver, Vic• toria, and Seattle. Five years later, the larger "Princess Charlotte" was: built:on: the Clyde for the same triangle route. TWO of the early wooden steamers built locally for the company, the "Princess Beatrice" and the "Princess Royal", operated for a quarter of a century in coastal trade, the former originally on the Victoria: and Puget Sound route and later on the north coast route, and the latter to Puget Sound and the west coast of Vancouver Island.

The purchase of the Esquimalt and Nanaimo Railway in 1905: transferred the Dunsmulr steamers, maintaining Vic• toria - Oomox; and Nanaimo - Vancouver connections, to Canadian Paeiflc colours. Both the "Joan" and the "City of. Nanaimo", wooden vessels, were operated for a few years by their new owners and then sold to the Terminal Steam Navigation Company.

A handy cargo vessel, the "Princess Ena", was built: in. England for the company in 1907 to permit greater flexibility in the coastal carrying trade:. Whereas express passenger vessels were necessarily held to a rigid schedule that allowed little time to be spent alongside in: ports of call, the new freighter was: able to cater more especially to the needs of shippers, particularly where bulk cargoes were involved.

Between 1910 and the commencement of war, six more passenger ships were purchased for Canadian Pacific coastal service, reflecting the optimistic outlook that accompanied the growth of British: Columbia:' s population^ industries, and tourist trade. These vessels: were the "Princess Adelaide" and "Princess Alice", sister ships - 27 -

intended for night trips between Vancouver and Victoria; the "Princess Mary", to operate from Vancouver to Nanaimo, UniomBay, and Comox; the "Princess Sophia", for the Alaska route; the turbiner "Princess Patricia", for. twice-daily service between Vancouver and Nanaimo; and the "Princess Maquinna", to serve the West Coast of Vancouver Island. Two other fast steamers on:order in Great Britain were diverted into Admiralty;employment at the outbreak of hostilities. Except:for the addition of the little wooden steamer "Island Princess" to replace the "Queen City" in,Gulf service, war brought expansion of the Canadian Pacific coastal fleet to a temporary halt*

The disastrous sinking of the "Princess Sophia" In in October, 1918, left: the eompany without, adequate tonnage for the Alaska route at a time when steel shortages and a backlog of orders at United Kingdom shipyards made it virtually impossible to obtain a suitable: replace• ment. Eventually, Wallace's yard at con• tracted to build a vessel, and launched the staunch "Princess Louise" In the summer of 1921. Soaring costs of steel ship construction stood in: the way of further expansion:, of the coast fleet along general pre-war plans until 1925, when the magnificent ttirbine steamers -"Princess Kathleen" and "Princess Marguerite" were launched on the Clyde for the Vancouver - Victoria - Seattle triangle route. - 28 -

The Increasing popularity of automobile travel Introduced problems that could be properly solved only with new vessels of special design to permit the ferrying of large numbers of motor cars. As a preliminary measure, the wooden diesel "Motor Princess" was placed In service between Bellingham and Sidney in 1923 with accommodation for about three dozen cars. In: 1926, she was transferred to the Vancouver - Nanaimo route where she operated with the "Princess Patricia". Two years later, the new turbine steamer "Princess Blaine", provided with an automobile deck, supplanted the "princess Patricia" and relegated the car ferry to the summer trade between Steveston and Sidney. Of the old steamers, the "Princess Victoria" lent herself to adaptation as an automobile carrier, and as such was to become an unsuspected boon:to her owners in the '40's.

Industrial development on the west coast of Van• couver Island, particularly with regard to the fisheries and logging, made it possible for the: Canadian Pacific Railway to employ a two thousand ton , the "Nootka", fitted with fish oil tanks having a capacity of 170,000 gallons, in coast service commencing in. 1927. Besides-, the summer tourist traffic justified the addition in,1929 of the "Prin• cess NOrah", a new passenger vessel, to operate on the route popularized by the "Princess Maquinna". The last new acquisitions before the depressed *30's were two stBamers - 29 - for the over-night trip between Vancouver and Victoria, the "Princess Joan? and "Princess Elizabeth".

By 1935, the British Columbia Coast Steamship Service's operational fleet consisted of thirteen passenger vessels of an average age of fifteen years and an aggregate gross tonnage of 4:6,302. For comfort and speed, the ships were comparable: with any coastal vessels im the world. As a result; of depression! and war, however, the passenger fleet.in the summer of 1948, still numbering thirteen ships (of 43,725 gross tons), had advanced to an average age of twenty-nine years. The: veteran; "princess Victoria", after relegation to the inglorious role: of floating hotel at the Canadian Pacific Railway's holiday resort.at Newcastle Island, was once again participating in; the Vancouver - Nanaimo trade to meet emergency demands. Of the two fine ships; requisitioned by the British Admiralty In: 1941, thaj "Princess Marguerite" became a war casualty; the "Princess Kathleen'? re-entered coast service in; 1947 after extensive refitting. Desperately in need of tonnage to replace its worn-out steamers, the company was faced, as in. 1919, with a high cost market:for new construction; Delay, however, was out of the question, and in: 1946 contracts were let for two turbo-electric vessels, the '.'Princess Marguerite" and the "Princess Patricia", to be built at Fairfield's, Glasgow, for the triangle route. Both ships were placed in operation - 50 -

in 19^9, relieving the company of the need to retain the old steamers "Princess Adelaide", "Princess Alice", and "Princess Charlotte", which were subsequently sold to Greek buyers. Anew steamer, especially designed' to accommodate automobiles, Is*at present.under construction; in the United Kingdom to meet.the ever-Increasing traffic on the Vancouver - Nanaimo router.

About fifty-five ports of call are regularly served by Canadian Pacific "Princess" liners on the following; routes: (1) the Triangle Route;: Vancouver, Victoria, and Seattle; (2) Vancouver - Nanaimo; (3) Vancouver - Gulf Islands; (4) Vancouver - Westview - Comox; (5) Victoria and the west coast of Vancouver Island; (6) Vancouver - Ocean Palls - Prince Rupert - southeastern Alaska; and (7) Stevestom - Sidney: car ferry service in; the summer season only.

B. The Union Steamship Company of British Columbia

The Union Steamship Company of British Columbia, Limited, was formed in!l889 from a consolidation of the Burrard's inlet- Towing Company and the Moodyville) Ferry Company. Captain William Webster, manager of the new organization, brought from Bombay the company's original coastal passenger steamer, "Cutch", and entered her in Vancouver - Nanaimo service. A year later, in 1891, a - 31 - young marine engineer, Henry Darling, son of the consulting engineer for the Union Steamship Company of Mew Zealand, arrived at Vancouver to superintend the assembly of three steel steamships brought in sections' from Great Britain;

These were the "Comox'1, "Capilano", and "Coquitlam". Darling in 1894 became manager of the company, retaining the position: until 1901.

Because competition!from established steamers proved the Nanaimo service an unprofitable: undertaking, the: "Cutch" wasr withdrawn;f roan the route lm 1896. Meanwhile the "Comox" was- carrying passengers and cargo to coastal settlements north of Burrard Inlet, and the "Capilano" and "Coquitlam" were trading to the north coast: wherever business warranted. The Yukon gold rush, providing more traffic than the Union;Steamship Company could with Its small fleet handle,1 led to the acquisition of the "Cassiar", a converted wooden schooner. Opposition;in the lower mainland coastal trade developed at the turn of the century with the formation, by Captain; J. A. Gates, of the Terminal Steam Navigation Company, operating the "Defiance", the "Britannia", and later the "Baramba" to , Gibson's Landing, Britannia Mines, and other points. The "Haddy Hanson" (renamed "" when the Sechelt Navigation Company was incorporated in 1907) shared traffic to west . Union vessels consequently discontinued calls at Gibson's in.l9G4; service was maintained to , Alert Bay, Rivers Inlet and intermediate points, and later extended, with the aid of a mail subsidy, to Observatory Inlet and Canal.

In.1911, J. H. Welsford and Company, Liverpool shipowners, gained control of both the Union Steamship Com- pany and the Boscowitz? Steamship Company of Victoria, fhe latter company, incorporated in 1899, had grown:out of the British Columbia Merchants Line. At the time of its sale, the Boscowitz; fleet, engaging in northern British Columbia trade, consisted of two ships, a new twin-screw steamer, the "Venture**, second of that name In; the company's history, and a thirty-year-old iron^hulled steamer, the "Vadso". Both vessels were merged into the Union Steamship Company's operations and employed in the cargo and passenger service of the logging camps, fish canneries, and mining developments on the coast.

Plans of the Union Steamship Company to diversify its interests by catering to excursionists were initiated In 1914 with the purchase of the passenger steamer "Melmore",

War, however, intervened1; but In 1917 the company bought out the All Red Linei whose yachts "Selma" and "Santa Maria" had for a number of years carried passengers to coast holiday resorts between Vancouver and Powell River. The sister ships - 33 - were renamed "Chaaina" and "Chilco" (later "Lady Pam"), respectively. After the war, a new "Capilano" was built, especially for the Selma Park service of her owners. Taking over the Terminal Steam Navigation Company's assets in 1920, the Union Steamship Company obtained the Howe Sound resort on:Bowen Island that was subsequently developed into a popular vacation centre. The Terminal Company had been operating the "Bowena", formerly the "City of Nanaimo", since 1912, and the "Ballena", formerly the "Joan", since 1914. Fire damaged the latter steamer shortly before the company changed hands; the "Bowena" went under Union colours as the "Cheam". Budding competition from the Howe Sound Navigation Company was nipped in 1923 with the purchase of the company's Seaside Park steamer "Lady Evelyn", first of the Union "Lady" vessels. Three day-excursion ships were brought out from England in: the next two years: the "", "Lady Cecilia", and "".

To augment its coastal cargo shipping business, the Union Steamship Company in 1918 purchased the freighter "British Columbia" from:the Coastwise Steamship and Barge; Company, altering the vessel's name to "Chilllwack". The company bought the locally-owned freighter "Chilkoot" In; the following year.

Improved passenger and cargo service to Prince Rupert, Stewart, and other northern British Columbia ports was instituted with the arrival on the coast of the "Car- dena" in 1923 and the "Catala" in 1925 — Scottish-built, twin*screw steamers of about fifteen hundred gross tons. In 1927, the "" was retired from service and her name transferred to her successor, a freighter formerly registered as the "Ardgarvel". Thereafter, no new bottoms were added until the small diesel motor vessel "Lady Rose" joined the Union ifleet: in 1937.

The general business recession of the '30's, coupled with the death of the Union! Steamship Company's active president, R. A. Welsford, led the British owners to dispose of their interest in the enterprise in. January, 1938, to a group of "Vancouver businessmen that: included M. J. K. Allen, E. E. Buckerfield, F. H. Clendenning, Captain W. M. Crawford, Gordon Parrel, B. W. Fleck, W. H.

Malkin, W. H. Murrin, and W. C. Woodward. The Canadian Paeif1c Railway Company, through its subsidiary, the Con• solidate! Mining and Smslting Company, at the time acquired a minority interest in the steamships company and is now understood to hold a majority of the shares. Twelve ships, as well as the company's wharves and resort properties, were involved in; the transfer of ownership.

In the autumn of 1939,- the Union; Steamship Com• pany took over the freighting business of Frank Waterhouse and Company of Canada, whose steamers "Northholm", "East- - 35 - holm", and "Southholm" had for many years engaged in coast trade. 10 Mine ships, including chartered craft, made up the Waterhouse fleet. In 1943, the "Gray", previously owned by the Consolidated Whaling Corporation, was purchased for Waterhouse operation, the B. C. Cement Company's "Island King" was added in; 1945, and in; 1946 Union Steamships placed a new cargo vessel of the China coaster type, the "Chilkoot", in the service of the subsidiary company.

When Canadian National Steamships withdrew from, the subsidized Queen Charlotte Islands trade in the summer of 1940, the Union Steamship Company bought the veteran steamers "Prince Charles" and "Prince John", renaming them

"" 11 and "Cassiar", respectively, and operating them during the war years to the north coast and the Islands.

New tonnage for the passenger - cargo routes became available in 1946 with the purchase of three Castle class and their conversion; into modern coast liners. Southeastern Alaska, it was hoped, would furnish sufficient tirade to justify the extension of the northern route into American waters, but the highly seasonal business failed to reach sufficient volume to warrant maintenance of an inter• national service. Speculative plans to convert a number of

M 10 iji H©rthhOlm" foundered off Cape Scott in January, 1943, witnhe the loss of fifteen lives.

11 The "Camosun" was sold to Israeli interests in 1945. - 36 - other former naval vessels that the company had acquired were abandoned in the light of post-war operating experience. One hundred and seventeen ports of call are, at present, included in scheduled sailings of Union - Water- house vessels on;the following routes from Vancouver:

Route 1 Prince Rupert, Alice Arm, and Stewart; Route 2 Prince Rupert and Queen Charlotte Islands; Route Port; Hardy, Ocean Falls, and Bella Coola; 3 Route Knight Inlet and Allison Harbour; 5 Route 6 Westview and Stuart Island; Route 6A Sechelt and Pender Harbour; Route? 7 West Howe Sound; Route 8 East Howe Sound; Route: 10 Ehglewood, Quatsino Sound, and Port Alice; Route 11 Campbell River, Englewood, and Knight Inlet; Route 11A Woodfibre, Britannia Beach, and Port Mellon; Route 12 Gibson's, Gulf Coast, and Wastview.

C. Canadian National Steamships (Paeifie Coast Service)

While construction of the Grand Trunk Pacific Railway t© its terminus near the mouth of the Skeena River was stimulating coast freighting, a rush of real estate speculators and enterprising tradespeople to the north coast was, at the same time, giving impetus to passenger traffic. In 1909, Mackenzie Brothers, Limited, of Vancouver, adver• tised excursions in the steamer "Rupert City" to Prince Rupert, "giving intending buyers .of lots an opportunity of /12 looking over the townsite" for a return fare of twenty dollars.

12 Vancouver Daily Province, May 3, 1909, p.4. - 37 -

Well In advance of the arrival of the first train at Prince Rupert in 1914, the Grand Trunk Pacific Coast Steamship Company was organized, with Captain C. H. Nichol• son as manager, orders were placed on the Tyne for two modern express steamers to provide a link "between the rail• road and the centres of population of the lower mainland, Vancouver Island, and Puget Sound. The company also pur• chased the: British coaster "Bruno" to:fulfil a mail contract awarded for a regular service between Prince Rupert and the QueemCharlotte Islands. Until the vessel, after refitting, went into operation in 1910 as the "prince Albert", the Grand Trunk Pacific, in order to qualify for the: mail sub• sidy, operated Mackenzie Brothers' steamer "Henriette" under a: charter negotiated in November, 1909. Early in 1910, Mackenzie Brothers, LlmitBd, agreed to withdraw from; business- as-competitors0of the new steamship company with the under• standing that Captain Duncan Mackenzie would be given command of one of the new eoastal liners. Captain; Simon:Mackenzie afterwards superintended the conversion:of the British; coaster "Amethyst" to the passenger and cargo ship: "Prince John".

On jane- 12, 1910, the three-funnelled, twin-screw steamer "Prince Rupert" inaugurated the Grand Trunk Pacific's -service from: Seattle, Victoria, and Vancouver to Prince Rupert: and Stewart. Twice-weekly sellings began - 38 - in July with the arrival of a sister ship, the "prince George". Service was extended to Skagway during the summer months from 19l6r to 1918.

Fusion with the Canadian National System brought the Grand Trunk-Pacific Coast Steamship Company, for the sake of economy, under the management early in 1923 of B» C; Keeiey of the Canadian Government Merchant Marine.. The C.G.M.M. had, in the summer of 1921, begun a service between British Columbia and California, using steamships oof the 3,900 deadweight ton "Canadian Rover" class. Paper from Ocean Falls and occasional small shipments: of lumber were carried south; salt, oil, hardwoods, and general cargo were brought back from San Pedro and San Francisco. The vessels found additional employment of a seasonal nature freighting tin plate to the northern canneries and pilchard oil1 from the west coast of Vancouver Island. Too many voyages: on: the California route were made simply with "bal• last and stores" to be profitable, unfortunately, and in~ 1929 the service was discontinued. The-two Grand Trunk Pacific express liners were, after discontinuing calls at

Victoria and Seattle in11923, maintaining a tri-weekly schedule from Vancouver to the-northern coast while the "Prince John" served the Queen Charlotte Islands. The thirty-year-old "Prince Albert", with many years of active operation:ahead, was sold at the end of 1923 to new owners - 39 - who employed her im the contraband liquor trade off the California coast.

Heevy northward movements of logging equipment and cannery supplies made apparent the need for additional tonnage to supplement the "Prince John". As a temporary measure, the Consolidated Whaling Corporation's freighter "Gray" was operated on time charter in the summer of 1924. In the following year, the Scottish coaster "St. Margaret" was purchased, renamed the "Prince Charles-", and entered on the: morthernBrltish Columbia: and Queen Charlottes: routes Though not an ideal ship for the Islands trade, she served the company for fifteen:years.

The motorship:"Hurry On", owned by Hobbs Brothers, Limited, was chartered to supplement the regular Canadian National coast vessels in the summer of 1928. Next year, a small German-built freighter, the "Aktion", was brought to the coast to engage, as the "Prince William", in a short• lived service out of Prince Rupert to Skeena and Naas River canneries and to the Queen Charlotte Islands. Sir Henry Thornton? s plan for developing the Canadian National Systemi envisaged a fleet of fast, luxurious passenger liners running between Vancouver, Victoria, and Seattle. Giving effect-to the scheme, three palatial vessels, the "Prince Henry", "Prince David", and "Prince Robert", came to the coast to begin service in 1930. It was- soon; 40 - obvious: that the volume of traffic, particularly in depres• sion years, would not justify competition with, the established British Columbia Coast Steamship Service of the Canadian Pacific, and the new ships were withdrawn; from the route after a year's unprofitable- operation:. The "Prince Robert", although lacking cargo capacity and fitted with turbine; machinery that was not entirely suitable for leisurely steaming, remained arunit of the company's coast fleet, making summer cruises:to Alaska until the war, when she was requisitioned by the to serve as: an auxiliary cruiser.

By the summer of 1940, only the "Prince Rupert" and "Prince George" remained under the Canadian National flag on the coast. The "Prince William", after years of Inactivity, had gone to the Armour Towing and Salvage Com• pany; the "Prince Charles" and "Prince John", to the Union. Steamship Company. A further reduction of the fleet resul• ted from the total loss by burning of the "prince George-" at Ketchikan in 1945. The name was reassigned, however, to a new, larger vessel designed especially for the Alaska trade, completed by Yarrows, Limited, of Victoria, 1m 1948.

Ports of call in: the company's present year-round service out of Vancouver are Westview, Ocean Falls, Prince- Rupert, and Ketchikan. Northbound cargoes consist of general merchandise; southbound, largely of frozen; fish, - 41 - carried in refrigerated space, and paper. During the summer season:, ten-^day Alaska cruises to Skagway, with calls at ports en route, attract capacity loads of American tourists. - 42 -

CHAPTER y

OTHER COAST SHIPPING- ENTERPRISES OF THE TWENTIETH CENTURY

Snips exist for trade, and not trade for ships. Ships, like banks and other financial institutions, have an important place in assisting trade, but they are to be thought of primarily as the hand• maids of trade. They serve the demand-and-supply function, by transferring commodity surpluses, and mail, and passengers, from one place to another. The development of logging, mining, commercial fishing, and subsidiary industries created a need for shipping services that encouraged the formation of relatively small freighting companies early in the twentieth century. Mackenzie Brothers, Limited,, the Burrard Steamship Company, and the Lincoln Steamship Company, of Vancouver, and Leeming Brothers, Limited, of Victoria, were representative of owners who entered the coasting trade with small, wooden, screw-propelled vessels, some of which are still to be found in operation; Another firm, the Coast Steamship Company, Limited, incorporated in 1906, passed through the vicis• situdes of more than thirty years of British Columbia and Puget Sound freighting before igoing out of business. Owner• ship of the company changed hands in 1922. Eventually the

13 Mears, Eliot G., Maritime Trade of Western United States, p.447. - 43 - last two remaining vesselsv the "Coaster" and the "Matsqul", were disposed of In: 1937. The operations of the Coast Steamship Company in: its: early years were typical. Two small vessels, the "Fingal" and the "Clansman", carried groceries and cannery supplies to the Fraser River, return• ing to Vancouver with canned salmon: and feed. In season, the ships packed salt herring from Nanaimo to Vancouver and to Puget Sound ports. The "Celtic" and a larger steamer, the "British Columbia", followed the northern route to Prince Rupert and Ketchikan, carrying coal, groceries, and cannery supplies and bringing back canned salmon. Also in 1906, Captain: T. H. Worsnop organized the Canadian-Mexican Pacific Steamship Line to connect southern British Columbia ports with the Pacific terminus: of the Tehuantepec Railroad. Aided by Canadian and Mexican sub• sidies, the steamship line operated the vessels "Lonsdale" and "Georgia" under a working agreement with their managers, the firm of G. T. Symons; London. Cargoes from Europe, trans-shipped by rail from the Gulf of Mexico to Sallna Cruz, were freighted to Vancouver, Victoria, and New West• minster. Southbound, the Canadian-Mexican Pacific Line carried coal inn bulk"from Union; Bay to Mazratlan and Mam- zanlllo for delivery to the Southern Pacific Railroad at Tucson, Arizona^ When, as" was the custom for a brief period each year, the Mexican Government waived the tariff to - 44 -

permit the importation of a necessary quantity of grainy cargoes of sacked wheat were shipped. Both the "Lonsdale" and the "Georgia" accommodated passengers between Mexican* ports. Backed financially by E, H. Heaps, of Vancouver, Captain*Worsnop incorporated his line asthe Canadian-Mexican Pacific Steamship Company, Limited. In 1912, however, J. H. Welsford and Company, of Liverpool, bought out the local interests, intending to operate- the line^ im conjunction with their newly-acquired Union Steamship Company of British Columbia. The two Symons steamers left on voyages to japan under charter, and service to Mexico was not resumed. Silt•

ing of the harbour at Salina Cruz-, the 1914-18 war, and the opening of the Panama Canal ended hopes of re-establishing the Mexican trade route. More recently, attempts by Park Steamships, Limited:, and by Johnson Waltorn Steamships to operate a British Columbia:- Mexico line have Indicated little improvement in the outlook for the success of such a service. At about the time that Captain Worsnop was initiating his venture, a Scottish shipping man, William Eadie, started the Northern Steamship Company of British Columbia, offering a coastal freighting service from Van• couver to the west coast of Vancouver Island, the Queen Charlotte?Islands, and northern British Columbia. Three steamers, the "British Empire", "Cetriana", and "Petriana" were brought to Vancouver and operated until the early years of the first world war, the last remaining on the coast.as the Consolidated Whaling Corporation's tender "Gray".

In 1912; Captain:James Griffiths l2t", an enter• prising Pacific Coast tow boat operator and a pioneer in the use of ocean-going barges;, formed the Coastwise Steamship and Barge Company, Limited, as a Canadian unit in the trans• portation' system; he and his sons controlled. From 1914 to 1935, when the Granby Company was exploiting its Hidden. Creek properties; Coastwise vessels were employed very largely im the service of the; mining and smelting company; freighting copper concentrates from Anyox to the smelter at Tacoma or to Vancouver for rail trans-shipment east. In addition to its working agreement with the Granby Company, the steamship company contracted to carry ore and concen• trates from Britannia Mines, at the head of Howe SOund, and from Premier Gold Mine, in the Portland Canal district.

The Canadian Pacific steamer "Amur", well known on the northern coast, was the first acquisition of the Coastwise Steamship and Barge Company. Three years later, the "British Columbia" was purchased from the Coast Steamship

See Kelly, L. V., "Old Red-head", Vancouver Dally Province (Magazine Section), October p 23, 1943, v3. - 46 -

Company and operated until her sale to the union Steamship Company in 1918. Her place was taken by the small steamer "Marmion". In 1920, a wooden steamship constructed during the War, the "Anyox", joined the fleet. Ah American vessel, the "El Abeto", formerly engaged in carrying export lumber shipments from.the Queen Charlotte Islands, was transferred to Canadian registry and brought under the Coastwise flag as the "Griffco" in 1922. The company's largest steamer, the "Mogul", of nearly three thousand gross tons, entered the ore trade in the following year. When the old "Amur" came to grief in 1924, she was replaced by a larger vessel of the same name. Finally, the company acquired the Canadian Government Merchant Marine steamship "Canadian Rover" in a deal executed by the Kingsley Navigation Company ih: 1929. Under Coastwise colours she became the "Bornite".

To supplement the carrying capacity of his cargo steamers, Captain Griffiths operated a number of barges, including the "Baroda", "Riversdale", and "Lord Templetown" — the last two, steel hulls of more than two thousand gross tons. After 1919, the tug "Tartar" was employed handling scows at Anyox.

Besides the southbound traffic in concentrates,

coal tar was freighted from Anyox to Barnet, where it was:

used in the production: of roofing materials. Northbound, - 47 - coal from Cassidy (loaded at Blaney) and Union. Bay, lime from Blabber Bay, and machinery and general merchandise from Vancouver made up usual cargoes. The pulp and paper mill at Ocean Palls received coal shipments for some years, until the plant:was converted to oil fuel.

With the slump of the '30's, the Coastwise Steam• ship and Barge Company began the reduction of its fleet, disposing of the "Anyox" to the Pacific Salvage Company, the "Marmiom" to the Kelley Logging Company, and the "Mogul" to Japanese buyers. Following the termination of the Granby Company's operations at Anyox:, the "BOrnite", too, was sold to Japan* Finally, in 1946', when the last of its steamers left British Columbia waters, the Coastwise organisation ceased for a time to function in the capacity of shipowner, although in;1949 it resumed barge operations.

Frank Waterhouse and Company, old-established operators of ocean vessels out of Seattle, interested them• selves in. the British Columbia and Puget Sound trade in 1917. In the following year, the company took over three Canadian steamers fromCaptain Lincoln Rogers and his associates: the "Eastholm", "Selkirk", and "Westham". A new steel steamship,; the "Robert H. Merrick", was added to the fleet in 1924, and a motor vessel, the "Arran Firth", in 1925. The names of both vessels were changed in 1929, that of the former to "Northholm", and of the latter, to "Watco". At - 48 -

the same time, the Waterhouse organization bought from, the Kingsley Navigation Company the two-hundred-foot freighter "E. D. Kingsley", which thenceforth became the "Southholm", replacing the twenty-year-old "Westham". Additional tonnage: was from time to time taken on charter to meet requirements. Waterhouse vessels served most of the industrial settlements of British Columbia, including the west,coast of Vancouver Island, the Queen Charlottes, and the mainland coast north to Stewart. A substantial carrying trade was also conducted with Puget SCund ports. In 1939, the Union Steamship Company acquired control of Prank Waterhouse and Company of Canada, integrating the freighting company's operations with its own established passenger and cargo services. Some of British Columbia's Industrial corporations, aiming at vertical development, have organized their own subsidiary shipping services. Examples are to be found not only in the lumber industry, where a corporation such as the MaeMillan organization: may control every stage of handling and processing from the felling of the tree to the delivery of the manufactured product abroad, but also to a degree in fishing and mining, and in the cement industry. The British

x5 A MaeMillan subsidiary, the Canadian Transport Com• pany, has owned and operated tugs, barges, and deep-sea cargo steamships. - 49 -

Columbia Cement Company, succeeding the Vancouver Portland Cement Company in 1919, took over the steamer "Matsqui" to carry the firm's product from its Tod Inlet and Bamberton. plants. Four motor vessels were subsequently acquired: the "Laurel Whelan'% "Teco", "island King", and "Shean" — the. latter, an interesting early example of welded (rather than conventional riveted) construction. When, in recent years, barges seriously challenged self-propelled freighters in cement transport, the British Columbia Cement Company dis• posed of its ships. A subsidiary of the Pacific Lime Company, the Kingsley Navigation Company, Limited, incorporated in 1918, began by operating the former Canadian Pacific steamer "Queen City" from Texada Island. In the following year, the com• pany built the steamship "E. D. Kingsley" for the purpose of extending its service to United States ports. The new vessel, placed on an eighteen-day round trip schedule between British Columbia and California ports, made it possible to conduct a general freighting business, offering cargo space to shippers.

The Kingsley Navigation: Company in 1924 met com• petition from the Canadian Government Merchant Marine by purchasing the "Rochelie", fitting her with tanks for carrying

Subsequently reduced to a barge, the "Queen City" burned in 1921 while in tow from Blubber Bay to Ocean Falls with a cargo of lime. - 50 - bulk oil, and operating her with the "E. D. Kingsley". When the G.Gf.M.M. retired from the California trade in 1929, the Kingsley Line took over the three government freighters, retaining two, the "Canadian Coaster", renamed "Kingsley", and the "Canadian Observer", renamed "Rosebank", in service to San Francisco Bay and San Pedro. The smaller "E. D. Kingsley", having become surplus, was sold to Frank Water- house and Company of Canada. Besides handling Pacific Lime Company cargoes from Blubber Bay, Kingsley vessels carried lumber, laths, shingles, canned salmon, scrap iron and general cargo on southbound voyages, oil and a variety of merchandise on the return trips. The recession of trade in the '30's proved the California route oversupplied with tonnage, a situation which the Kingsley Navigation Company attempted to solve, first of all, by entering the "Rosebank" in intercoastal service, and eventually, by selling the "Rochelie" in 1938. The remaining vessels were relinquished to foreign buyers at war-inflated prices — the "Kingsley" in 194-3, and the

"Rosebank" in 19^6. Dodwell and Company, a British organization, had in 1912 incorporated an American subsidiary, The Border Line Transportation Company, to engage in the Puget Sound and British Columbia trade out of Seattle. As a result of the legislative restrictions imposed on foreign-flag ships - 51 - operating In Canadian waters, The Border Line Navigation Company was formed in 1929 in British Columbia to run a Canadian steamer, the "Border Queen". In 1934- a second vessel, the "Chilkoot", was purchased from the Union Steam• ship Company and named "Border Prince". Ports of call from Puget Sound to Prince Rupert were included in: the service offered jointly by the Dodwell subsidiaries, with cargoes comprised chiefly of newsprint, salt herring, and, from Fraser River mills, lumber and shingles for trans-shipment to American:ihtercoastal lines. After retiring the "Border Queen" in 1936, The Border Line Navigation: Company continued to operate its remaining vessel until 1943, when the uncer• tainty of income in view of rising labour costs and govern• ment rate-fixing practices led the company to realize on the "Border Prince's" enhanced market value..

Of the smaller companies, operating a single vessel, the Gait Steamship Company and the Bervin Steamship Company have been noteworthy. John G-alt, formerly of the Northern: Steamship and Union Steamship Companies, acquired the wooden steamer "Salvor" in 1924 and began an independent freighting service north to Rivers Inlet and Skeena and Naas River points. C. D. Vincent, following the loss of the "Trader",

the vessel with which he started1out as a shipowner, Joined in 1923 with the versatile shipbuilder and master mariner, Captain A. Berquist, in; purchasing the Union Steamship - 52 -

Company's freighter "Coquitlam", which thereupon-became- the "Bervin". For the small traders, salt herring from Galiano Island,. Read Island, and other loading places, for delivery at Vancouver and Seattle, formerly constituted the most important winter cargo. In summer, salt and supplies-were taken to the canneries. Cement, coal, paper, and — until scows attracted the business — lime, were commonly laden. Shipments of farm produce from the Fraser River provided freights up to the late '20'a, when highway truckers cap• tured the trade. As an Instance of the prodigious quantities of cargo handled in busy seasons by small coasters, the 120- foot "Bervin" once freighted 6,500 tons of merchandise In the course of a single month.

Three Vancouver companies— British Columbia Steamships, Limited, organized in 1942 by E. B.* Clark and Captain H. Terry, Gulf Lines, Limited, begun;in 1946 by T. M LePage and A. J. Jukes', and Marine Express Lines, Limited, started in; 1947 by Captain J. A. Macdonell — have established themselves in;promising post-war trades. British Columbia Steamships, with two coast freighters, the "Island Prince" and "Alaska Prince", initiated a service to Haines, on Lynn Canal, for shippers of cargo to Alaska and Yukon: destinations. Shipments transferred to motor trucks at Haines could be taken 157 miles to Champagne, Yukon Territory, and thence over the Alaska Highway to destinations as remote as Fairbanks- and Anchorage. Gfulf Lines, using converted naval vessels, fill a need for a fast, frequent passenger service between Vancouver, Westview, Texada Island, and other settlements, and Marine Express Lines operate the "jervis Express" between Vancouver and Jervis Inleti. - 54 -

CHAPTER 4

FISH PACKERS, TANKERS, AND TOW BOATS

Coastal vessels built especially for the trans• port of specific commodities- include fish carriers .and oil tankers. By far the greatest number of wooden:vessels- constructed in British Columbia shipyards has been for the fishing industry. While seine boats, forty to seventy-five feet in: length, used In:the salmon; herring, pilchard, and hallbuti fisheries, are adaptable for towing and freighting, fish packers, larger and faster than seine boats, generally ply between the fishing grounds and the packing and distributing centres: with cargoes of up to a hundred tons of freshly-caught fish; Speed and seaworthiness are essen• tial qualities of the craft. After 1923, when the Anglo British Columbia Packing Company installed a three-cylinder diesel in the "Laurel Leaf", the internal combustion oil engine was rapidly adopted" by the industry for packers and, in many cases, for seine boats, too. British Columbia's oil requirements have been met very considerably by imports of crude oil from: Calif• ornia and, to a lesser extent, from Peru and Mexico. At the Burrard Inlet:refineries, coastal tankers load gasoline: and various grades of oil for up-coast destin> atiOns. Marine depots established at convenient:points supply fishing, freighting, and pleasure vessels. The? largest:fleet of tankers Im the British Columbia coast trade— that owned by the Imperial Oil Shipping Company, Limited — had its inception in 1922 with the arrival of the "Imperial" from Halifax, in 1926' and 1927, three vessels were added: the "Fuelite", formerly owned by the Vancouver and Salvage Company, the new motor vessel "Marvolite", and the "Nanaimolite". Notableaddit• ions in 1938 and 1939 were the "Beeceelite" and a new "imperial" — each in;its turn the largest all-welded sea• going craft ever built in;Canada. Under a new system of naming Imperial vessels, the "imperial", "Beeceelite", and "Marvolite" became, in 19^7, the "imperial Vancouver", "imperial Nanaimo", and "Imperial Namu", respectively. Ships of the Imperial Oil ocean; fleet have, since the first world war, supplied the company's loco refinery with crude oil fromSan Pedro and Talara. Some of the better-known ships- in the trade have been the "Trontollte", "Albertolite", "Mina Brea", "OntariOlite", and "Imperial Edmonton", the; last, a type T2 motor tanker. The Standard Oil Company of British Columbia im 1937 brought the motor tanker "Pico" from California and has since operated her in coastal trade as the "Standard Service". The British American Oil Company, when it took over the properties of the Union; Oil Company of Canada, - 5£ - acquired the "Unacana", well-known on-the ooast since 1929, and renamed her the "Britamerican". The Shell Oil Company of British Columbia has distributed its products since 1947 in the "Western-Shell" and, before that, in: the "Shellco", now named the "Burnaco", Home Oil products are carried in the "Dinamac". Thus the coast tanker fleet consists almost entirely of private carriers, freighting only the cargo of the vessels' owners.

Early tow boats on; the British Columbia coast, owned generally by sawmill companies, were used to assist sailing vessels to and from loading ports. The master of a Swedish bark reported in; 1868 that "steam tugs, when desired, can be obtained at Victoria or Burrard Inlet at from $300 to $400 for towage to the mills and back to Vic• toria." Increasing lumbar and coal exports: provided ample work for the available tug boat;fleet, even engaging the once-elegant steamer "Beaver" in towing employment for part of her varied career. For the most part, however, tow boats were specialized craft, staunchly constructed for rigorous service. One such vessel, the "Etta White;", brought to Burrard Inlet by the Moodyville Sawmills in 1875, was in

16 Stevens, R. W., Stowage of Cargo, London, 1869, cited in?Harbour and Shipping, vol. 25, no. 10, October, 1942, p.3^2V - 57 - service until destroyed "by fire in 1920; another, the "Alert", formerly of the Hastings-Mill fleet, has seen sixty years of operation. The commercial firm of Evans, Coleman and Evans in: 1889 acquired the steam tug "Tepic" for its? marine department, using her primarily to tow barges laden with coal from Nanaimo. In the same year, the Union: Steamship Company of British Columbia brought together the tugs "Leonora", "Senator", and "Skldegate" as the nucleus of a proposed fleetI of vessels intended to serve the expanding lumber industry.

When,it became necessary to convey logs some dis• tance from coastal felling operations to sawmills, rafts, towed by steam tugs, provided the most economical form of transport. The pioneer of salt water rafting, Captain H. R. Robertson, turned his attention to the Pacific North• west in the 1890's, achieving a modest degree of success inndeveloping.log rafts that could withstand Pacific swells. His method of building a raft: within a floating cradle was adopted for the Improved Benson raft, formerly used in: the long haul" from-: and Oregon to California. In the protected waters of British Columbia, simple? flat rafts, made up of sections in which the logs are contained between, boom sticks held apart by cross sticks, suffice for the usual short haul. If the weather deteriorates, rafts can - 58/ - be taken;into a convenient: harbour and, in all likelihood, moored to the shore. ^ Operations in the Queen Charlotte Islands, on the other hand, demand a raft that is sturdy- enough for the Hecate Straits crossing and more readily constructed than the Benson type. Otis Gf. Davis, superin• tendent of the British Canadian Timber Company at Port

1 Renfrew, in 1909 found the answer. ® By eliminating the cradle (which, in salt water, was subject to the ravages of marine borers) he designed a raft that, built with limited facilities in sheltered bays and Inlets, would stand up to the rough seas that might: be met. on: a relatively short trip>ih open:water. ^ Davis took out patents on his invention in:the United States in 1913 and in Canada in 1919.

^ Popular refuges offering shelter from storms include Port Harvey, Port Neville, Bllnkinsop Bay, Mermaid Bay, Stillwater, Blind Bay, Pender Harbour, Secret. Gove, Halfmoon Bay, Halkett Bay, and Snug Cove.

^ "Retired Inventor States He's 'Practical' Logger", The Daily Colonist (Natural Resources Supplement), December 127~1948 7 pT^K ^ In the construction of a modern Davis raft, boom sticks, chained end to end, are strung out for a distance of from 480 to 560 feet: in two rows held nearly 80 feet apart by swifters, or cross logs. Between the boom.sticks and parallel to them, logs of assorted lengths are placed in such a way as not to leave a distinct lateral joint In the floor. Interlacing wire cables are run over and under the logs to form a secure mat. More logs are then rolled on;to the floor, gradually submerging it to a depth of from 15 to 24 feet/. Finally, top wires are drawn taut, to - 59 -

An improved raft, proof against the severs winter storms of the west coast of Vancouver Island, was developed in 19^5 by J. G. Gibson for the Kyuquot; to Port Mellon: towing route. The Gibson raft not only is remarkably sea• worthy, but also has the advantages of being assembled economically and, on arrival at a destination, of being reduced quickly to a flat boom. 20 An alternative to rafting has been to transport logs in carriers that were adapted originally from the hulls of old Sailing vessels. Captain Walter Wingate of the British-Pacific Transport Company brought the first, big

bind the raft firmly together. Towing wires from both sides, carried to a bridle on;the tug, further tend to prevent the raft from spreading apart. As much as four million-board feet of logs in two or three such rafts may compose the tow of a single powerful tug boat.

20 jn developing his patented raft, Gibson experimented, first of all, with reinforced Davis rafts, using wire straps to impart the additional strength. In 1945, he evolved a bottom in two sections that could be parted and removed from the completed raft. Master wires were laid across the mat formed by the two 40 feet by 160 feet sections. Up to 600,000 f.b.m. of logs were then loaded on the mat, after which the wires were carried around the raft, drawntaut, and clamped. The two sections of the mat could easily be released from the completed raft, ready for future use. In the initial three year period of their employment, more than a hundred of the Gibson- type rafts were towed in open water without loss. See "Gibson Rafts Stand Winter Storms and Keep Logs Moving to Sawmills", Forest and Mill, vol.2, no.19, October 15, 1948, pp.1,4. - 60 - log barge, the MBingamon", to British Columbia in 1924. Soon afterward, Captain B. L. Johnson enthusiastically adopted log barges, acquiring the "Drumrock" and the "Puako" for his Hecate Straits Towing Company. On the west coast of Vancouver Island, the Canadian Transport Company's power• ful steam tugs "Towmac" and "Logmac" were, until recently, towing landing barges which had been converted to carry

about 600,000 board feet of logs. 21

Until about 1900, British Columbia tow boats burned wood, the crews often having to chop their own fuel from the forests at settlements like Gibson's, Sechelt, and Lund. Coal next supplanted wood as the usual method of generating steam until the introduction of oil burners in 1911 offered an improved method of regulating steam pressure.

Diesel tugs, first represented in 1923 by Captain J. A. Gates' "Radio" and th© Young and Gore tow boat "Sea Wave", were rapidly adopted once the economical internal combustion engine had proved its dependability to lumbermen. Nowadays, approximately eighty per cent of th© British Columbia towing fleet is diesel-powered, and almost all new construction for the industry uses diesels. The general aim has been to install engines capable of supplying the maximum power

dL Western Business and Industry, vol.22, no.6, June, 1948, p.106. - 61 - possible in a of a given size. Industrial development made tow boating more than a mere adjunct of the lumbering business. Cargoes that could be transported efficiently in barges and scows came to include finished lumber and shingles, coal, sand and gravel, hog fuel, cement, lime, fertilizer, paper, oil, and gasoline. Typical barges have a capacity of from one hun• dred to four hundred tons. Some have special superstruc• tures to protect-cargoes from the weather; others are floating steel tanks designed to take liquids in bulk. Barges are classified by marine underwriting societies and are surveyed annually to assure their seaworthiness.

The tow boat industry has been peculiarly charac• terised by periods of amalgamation and consolidation. By way of example: the Progressive Steamboat Company, founded in 1906, and the C. S. Thicke Towing Company were absorbed in 1920 into the B.W.B. Navigation Company, later known as the Blue,Band Navigation Company. B.C. Mills Tug and Barge Company acquired the fleet in 1931, and fifteen years later sold out to the M. R. Cliff Tugboat Company. In another instance, Evans, Coleman and Evans in 1925 sold their float• ing equipment to the Pacific Tug and Barge Company, which merged in 1926 with Cdyle Towing Company, Hecate Straits Towing Company, and the British Pacific Barge Company to form the Pacific (Coyle) Navigation Company, Limited — a - 62 - two million dollar corporation. In the following year, the fleet of the Dominion Tug and Barge Company, which had absorbed the International Towing Company (itself a merger of Gilkey Brothers, Greer and Christie, and the Czar Towing Company), came under Pacific (Coyle) operation. At present, more than fifty British Columbia com• panies operate over two hundred and fifty tugs of all types, from boom boats to ocean-going vessels. Major tow boating companies include subsidiaries of large industrial firms as well as independent enterprises. In the first group are: Badwater Towing Company, Limited, a subsidiary of Pacific Mills, Limited; Canadian Transport Company, a subsidiary of H. R. MaeMillan Export Company; Canadian Tugboat Company, Limited, of New Westminster, a subsidiary of Canadian Western Lumber Company, Limited; Gilley Brothers, Limited, of New Westminster, a sub• sidiary of Evans, Coleman, and Gilley Brothers, Limited; and KIngcome Navigation Company, Limited, a subsidiary of the Powell River Company. Representative of the second group are: C. H. Gates and Sons, Limited; Coastal Towing Company, Limited; M. R. Cliff Tugboat Company, Limited; Gulf of Georgia Towing Company, Limited;- Harbour Towing Company, Limited; Island Tug and Barge Company, Limited, of Victoria; Marpole Towing Company, Limited; Nanaimo Towing Company, Limited; Pacific (Coyle) Navigation Company, Limited; Stone Brothers, Limited, of ; - 63 -

Straits Towing and Salvage Company, Limited; Vancouver Barge Transportation, Limited; Vancouver Tug Boat Company, Limited; Victoria Tug Company, Limited; Westminster Tug Boats, Limited; and Young and Gfore Tugboat Company, Limited. - 64 -

CHAPTER 5

THE EVOLUTION OF CANADIAN COASTING TRADE LEGISLATION AND SOME ASPECTS OF THE EFFECT OF COASTING LAWS

In the year that Vancouver Island became a

colony of Great Britain, the British Navigation Laws, which had limited the carrying trade between one colony

of the Empire and another, to British, shipping, were re•

pealed. The coasting trade between ports of a colony

remained closed to foreign shipping although provision

was: made to admit foreign vessels upon an address to the

Crown by the legislature of the colony concerned. From

a practical standpoint, the restrictions on foreign shipping

had little effect on transportation on the coasts of Van•

couver Island and British Columbia, except in the years

of the Fraser River gold rush. Sufferances were issued

by the Colonial Governor in 1858 and 1859 to authorize a pp

number of American steamers to engage in the river trade.

British Columbia, which since 1866 had con•

sisted of a-union of the mainland colony and Vancouver

Island, entered the Canadian Confederation; in 1871.

Matters of navigation and shipping in the new province

22 For an account of American steamers on the Fraser River, vide Hacking, N. Hi-', "Steamboat. 'Round the Bend", British Columbia Historical Quarterly, vol.8, no.4, October, 1944, pp.255-280. - 65 -

were thereupon: transferred to the Parliament of Canada, in accordance with section 91, subsection 10 of the British North America Act. By the Merchant Shipping (Colonial) Act, 1869, the restrictions that excluded foreign ships from carrying goods and passengers between ports in the Dominion: of Canada were to have ceased two "years after the proclamation of the Act. Canada, however, took early action to pass an Act for amending the law relating to the Coasting Trade and Merchant Shipping in British possessions, providing for the continued exclusion from the coasting trade of Canada of shipping of all foreign.countries that did not offer reciprocal coasting privileges to British vessels. The Act. was obviously intended to exclude-American ships, in view of the un- deviating policy of the United States since 1817 of reserv• ing the domestic trade to national shipping. None of the nine countries authorized by order-in-counc11 to enter the Canadian coastal trade actually became a threat to British shipping on the Dominion' s~ west: coast.

The Imperial1 Merchant Shipping Act: of 1894, part XIV, section 736, which reiterated, in so far as- Canada was concerned, that the legislature of a British possession might, by any act or ordinance, regulate its own coasting trade, added the stipulation that any such act or ordinance should treat all British ships- (including - 66 - the- ships: of any other British possession) in exactly the same manner as ships of the British possession- in which it had been passed:.

In 1902, an Act respecting the Coasting Trade of Canada ruled specifically that no goods or passengers- were to be carried by/ water from one part of Canada to another except in British ships. The act required, fur• thermore, that a foreign-built: British ship?, whether regis• tered in Canada or elsewhere, must first obtain a licence from the Minister of Customs upon?payment of a duty of twenty-five per cent on the fair value of the ship before engaging in the coasting trade of Canada. In the Revised Statutes of 1906", these provisions-were embodied in part XVI of chapter 113, which took the title of the Canada Shipping Act.

Few British ships registered outside Canada actually engaged in the British Columbia coasting trade from the time of the first world war. The Canadian Pacific steamer "Princess Victoria", originally of London registry, was- transferred to the Victoria; register soon; after the war; the Grand Trunk Pacific liners "Prince George" and "Prince Rupert" went from Newcastle to Prince Rupert registry with their acquisition by Canadian National Steam• ships. The only noteworthy example of a British vessel registered outside the Dominion and operating regularly - 67 - in the British Columbia coasting trade in the 1930's was the Union Oil Company's tanker "Unacana", of London, now the "Britamerican", of Vancouver. Only minor amendments- to coasting legislation were Introduced between 190&- and the drafting of the Revised Statutes of 1927, at which: time the laws governing the coasting trade of Canada appeared as part XVI of chap• ter 186. The most important., new section, as far as British Columbia was concerned, permitted the free entry into the coasting trade of foreign-built ships that had been acquired by British nationals as prizes of war or as reparations: and placed on British registry.

Obstacles remaining in the way of Canada's legislative autonomy In matters relating to merchant ship• ping were removed in 1931 by the Statute of Westminster. In the same year,> Canada was: a party to the British Common• wealth Merchant Shipping Agreement, article 11 of which states-: "While each part of the British Commonwealth may regulate its own coasting trade, it is agreed that any laws: or regulations from time to time in. force for that purpose shall treat all ships registered in the British Commonwealth in exactly the same manner as ships registered in that part." Thus, vessels from any part of the Common• wealth are free to enter the coasting trade of British - 68 -

Columbia on terms no less favourable than those enjoyed by ships of Canadian registry, though there is little evidence that advantage has been taken of the opportunity. Legislation:at present governing the coasting trade of Canada is embodied in part XIII of the Canada Shipping Act, 1934 (24-25 Geo. V, 1934, c.44). it restates the requirement that foreign-built; British ships be licensed by the Minister of National Revenue before engaging in the coasting trade of Canada, rules that no ship other than a British ship shall transport goods or passengers from one place in Canada to another place in Canada either directly or by way of a foreign port, and empowers the Governor in Council to suspend coastal laws" for the purpose of admit• ting ships- of any foreign country into the coasting trade of Canada. In appropriate circumstances, a foreign ship has been admitted by order-in-council into the British Columbia coasting trade. For instance, in view of the acute seasonal shortage of suitable; British vessels'to carry fish oil in bulk from up-coast reduction plants to rail head at Vancouver, coastal laws were waived to allow the United States tanker "Argo" to operate between Canadian ports for four months in the winter of 1948-49, and for another period of three months- commencing in November, 1949. - 69 -

When foreign-built vessels of British registry- are licensed to engage in the Canadian coasting trade they are first assessed a duty of twenty-five per cent ad valorem on the appraised value, in accordance with provisions of the Canada Shipping Act. Should, however, a foreign-flag vessel he admitted to the coastal trade for a specified period of time only, duty and taxes are assessed by the

Customs Division of the Department of National Revenue on a proportionate basis:, assuming the life of the imported vessel to be ten years. Accordingly, customs duty at twenty-five per cent is assessed on l/l20th of the appraised value of the vessel for each month, or portion of a month, that the ship operates in the coasting trade. Sales tax, at eight per cent, is charged on the gross amount thus computed.

It would appear that the Canada Shipping Act safeguards the interests of the owners and crews of Brit• ish-built and British-registered coasters hy preventing foreign competition in the domestic trades while, at the same time, affording a degree of flexibility by admitting foreign ships to the coastal trade when; beyond doubt., additional tonnage is urgently needed. Where Canadian coasting trade legislation is: criticized is In its not limiting coasting privileges to ships-built in Canada. - 70 -

The United States, it may be pointed out, has for many years limited her coastal trade to American-built vessels, and Australia has recently taken steps to restrict her domestic trade to Australian-built vessels. 2^ Only about one-third of the passenger and cargo vessels and tankers participat• ing in the British Columbia coasting trade are Canadian- built, although a few others received extensive refits in Canada. (See Table 1, page 71.) Because shipbuilding costs- are at least twenty- five per cent lower- In the: United Kingdom than in Canada 2^", any action? taken to limit the coasting trade of Canada to Canadian-built ships must: necessarily increase the operating costs to the extent: of the extra provision required for writing off the capital cost of the vessel. While the Canadian shipbuilding industry and allied trades would benefit: from: orders placed for new vessels, the additional burden of expense placed on the shipowner would have to be met either by increased fares and freight rates or by subsidies.

23 Australia, Shipping; Act, 194-9, s.30.

2^ Canada, Second Report of the Canadian Maritime Commission, p.39. Sterling devaluation has further in• creased the difference in costs. * - 71 -

TABLE 1

SHIPS BUILT IN CANADIAN AND IN NON-CANADIAN SHIPYARDS AND SERVING IN THE BRITISH COLUMBIA COASTING TRADE DECEMBER 31, 194-9

Passenger and Cargo Ships and Tankers, by Age Groups . " Excluding Vessels under 200 Gross Tons

AGE PASSENGER-CARGO CARGO ONLY TANKERS

~ CAN. ' NON-CAN. CAN. NON-CAN. CAN. NON: Less than 10 years 2 5 * 1 11 to 20 years 1 21 to 30 years 2 6 - 1

Over 30 i 6 # 6 2 years lT

19 7

* Includes 3 vessels extensively refitted in Canada. # Includes 3 vessels extensively refitted in Canada. - 72 -

CHAPTER 6

THE EXTENT AND NATURE OF THE COASTING TRADE

Snipping services in British Columbia have developed primarily in response: to the needs of, settlement -and industry along, the indented and island-studded coast• line; First among such; needs; was a steamship link: with a source, of supplies:; and a market. Consequently, when the; province was: admitted into the Dominion of Canada in 1871, provision was made for "an efficient mail service;, fort• nightly, by steam communication between Victoria and San Francisco, and twice a-week:between;Victoria and Olympia; the: vessels to be- adapted for the conveyance of freight

and passengers." 25 Some years later, with the construction of the Canadian Pacific Railway, Vancouver succeeded American; cities- as the entrepot: for British Columbia coast trade, and to the present: day has furnished a nucleus: for the economic life of the province. Most of the commerce of the Canadian west coast funnels through Vancouver: the major industries: of the coast are directed from there, labour is recruited there, provisions and equipment:are supplied from there; Naturally enough, then, shipping

25 schedule to the Order of Her Majesty in Council Admitting British Columbia into the Union, May 16, 1871, British North America Act and Amendments, p.80. - 73 -

TABLE 2R

ARRIVALS AT AND DEPARTURES FROM BRITISH COLUMBIA PORTS OF VESSELS IN COASTING SERVICE 194-7 and 1948

Excluding. Foreign-going Vessels

1947 1948 PORT /o NUMBER !° NUMBER

43,884 49.0 Vancouver 42,661 50.0 6,841 Victoria 8.0 8,381 9.3 9.4 Nanaimo 6,689 7.8 8,483

Powell River 7,494 8.8 7,903 8.8

New Westminster 5,292 6.2 5,818 6.5

Prince Rupert 3,712 4.3 3,379 3.7 11,968 Other Ports 12,690 14.9 13.3

85,379 100.0 89,816 100.0

Source: Canada, Dominion Bureau of Statistics, Shipping Report, 1947, 1948, Department of Trade and Commerce, Ottawa. - 74 -

TABLE j

ARRIVALS AT AND DEPARTURES FROM BRITISH COLUMBIA PORTS OF TUGS, OTHER THAN FQREIGN-G-OINGr TUGS 3.947 and 1948

1947 1948 PORT NUMBER % NUMBER

Vancouver 7,587 58.4 8,093 57.2

Victoria 1,132 8.7 1,195 8.4

Nanaimo 910 7.0 1,243 8.8

Powell River 1,162 8.9 1,184 8.4

New Westminster 1,042 8.0 1,245 8.8

Other Ports 1,160 9.0 1,188 8.4

12,993 100.0 14,148 100.0

Source: Canada, Dominion:Bureau of Statistics, Shipping Report, 1947, 1948, Department of Trade and Commerce, Ottawa. - 75 - services are concentrated there, as Tables 2 and 3 on: pages 73 and 74 affirm. While Vancouver is the predominant: dis• tribution ;centre, Victoria, Nanaimo, and Prince Rupert: are secondary entrepots, serving, respectively, the southern: part and west.coast of Vancouver Island, central Vancouver Island, and northern British Columbia. The population pattern of the coastal regions-of British Columbia, one of the factors that might he expected to bear some relation to the volume of traffic developed in: the coasting trade:, exhibits a-concentration of more than sixty per cent of the total coast population In;the two districts:; of Vancouver and Victoria. (See Table 4: on page 76.) Less than four per cent are to bB found outside the lower mainland and Vancouver island regions. Thus it is readily understandable that passenger and general cargo traffic on:the Vancouver - Nanaimo and Vancouver - Victoria routes should move in considerably greater volume than on the northern British Columbia routes. Industrial location is- another factor influencing the establishment of shipping services. Sites may be

determined on the basis-of such considerations as! proximity to sources of raw materials- or to cheap-and plentiful waterpower rather than nearness; to markets. When the= location involves large; expenditures in providing plant and fixed capital equipment, there is every reason for - 76 -

TABLE 4

POPULATION OF THE BRITISH COLUMBIA COAST

By Regions and Principal Districts

REGIONAL DISTRICT REGION DISTRICT POPULATION POPULATION 1946 1947, est.

LOWER MAINLAND 593,992 New Westminster 139,700 North Vancouver 32,520 Vancouver 379,850 VANCOUVER ISLAND 177,766 Alberni 14,800 Nanaimo 18,700 Victoria 111,350

CENTRAL MAINLAND COAST 15,276 Ocean Falls 3,200 Powell River 7,800

NORTHWESTERN COAST AND QUEEN CHARLOTTE ISLANDS 14,522 Prince Rupert 10,700 Queen Charlotte 1,600 Stewart 1,300

TOTAL COAST POPULATION 801,556

Source: British Columbia, Department of Trade and Industry, Regional Industrial Index of British Columbia, Victoria, 1948. - 77 - the growth of a relatively permanent settlement around the establishment. Such towns as-Ocean Falls, Port Alice, and Woodfibre, depending on newsprint, pulp, and paper manufac• turing, ChemalnuSi on;sawmill operations, and Britannia Beach, on copper mining, developed In this way. When the industry prospers, the town thrives; should, for any reason, the plant fail, the dependent community disperses. Swanson Bay and Anyox are examples of once-active settle• ments now reduced to "ghost" towns.

Logging and fishing are usually associated with-

purely temporary settlement, often involving the use of

floating camps that can be towed away when an area is

logged out-or when the fishing season ends. The imperman-

ence of such communities demands flexibility in the trans•

portation system serving them. Large scale logging operations, scattered along most of the coast, are to be found particularly in the vicinity of: Howe Sound, Jervis Inlet, Biate Inlet, Knight Inlet, Nanaimo, Comox, Campbell River, Johnstone and Queen Charlotte Straits, Port Renfrew, Barkley Sound and the Alberni Canal, , Tahsir Inlet, Zeballos Arm, Kyuquot Sound, Quatsino Sound, Burke and Dean Chan• nels, Douglas Channel, the Queen Charlotte Islands, and the Skeena and Naas Rivers. From these operations, logs - 73 - can be rafted or carried in barges to sawmills on the Fraser River and at Vancouver, Victoria, Bay, Chemainus, Nanaimo, and Port Alberni, or to pulp and paper plants at Woodfibre, Port Mellon, Powell River, Nanaimo, Duncan Bay, Port Alice, Port Alberni, Ocean Falls, and

Watson Island. Operations of plants, canneries, and stations in the fishing industry are seasonal in nature, commencing usually in April in the northern and central regions of the British Columbia coast, June on the southern coast, and July on the west coast of Vancouver Island, and con• tinuing until October. Reduction plants have a winter operating season as well, and cold storage plants, located at Kildonan, Klemtu, Butedale, and Prince Rupert, are in service throughout the year. Stations, reduction plants, and canneries are located near to the fishing grounds — at the estuaries of the Fraser, Skeena, and Naas Rivers; in the northern part of the Strait of Georgia; at Alert Bay, Knight Inlet, Smith Inlet, Rivers Inlet, Namu, Bella Bella, Klemtu, and Butedale; on the west coast of Van• couver Island, around Berkley, Clayoquot, Nootka, and Quatsino Sounds; and, to a limited extent, on the Queen Charlotte Islands.

Intensive mining operations usually result in

a more permanent type of settlement than either logging - 79 - or fishing. Coal is shipped from Nanaimo and Union Bay, copper from Britannia Beach, and limestone from quarries on Texada Island. Gold is mined at Zeballoa and at Tul- sequah, on the Taku River, and gold and silver at a number of mining properties in the Observatory Inlet - Portland Canal area. Around these operations, cities, towns and villages have become established, creating a steady demand for shipping services. Except for some pulp and paper mills, already mentioned, an explosives plant on James Island, and a cement works at Bamberton, on Saanich Inlet, large manufac• turing industries are concentrated in the cities of the lower mainland and Vancouver Island, near to the chief markets. As virtually none of the scattered small indus• trial communities on the coast is self-sufficient in the necessities of life, food, clothing, and household furnish• ings, as well as tools and equipment, must be brought in from the commercial supply centres. Regular steamer ser• vice lis available to more than a hundred and sixty ports of call; yet, there are many settlements that must depend upon? fish packers, tug boats, or launches for their trans• portation needs. Subsidized vessels furnish dependable, if infrequent, service to points in most districts where? there is human habitation. While the volume of actual or potential traffic alone would not justify calls at - 80 - many steamer landings, the Canadian Government, by providing subsidies, has recognized an obligation, to make reasonable transportation facilities available to sparsely-settled areas, Published statistics of the British Columbia coasting trade are, unfortunately, inadequate for purposes of a detailed study of traffic movements. Neither the Shipping Report, prepared annually by the Dominion Bureau of Statistics, nor the Annual Report of the National Har• bours Board presents information in such a way that special characteristics of the coast trades can be distinguished, fhe former publication shows details of foreign trade, but not domestic, cargo movements; the latter, to the extent that it refers to British Columbia, merely summarizes the trade of Vancouver Harbour. It was found, however, that daily lists of all vessels moving in an out of Vancouver Harbour, showing the tonnage of cargo and number of passen• gers landed and loaded, are prepared for the Information of th© National Harbours Board at Ottawa. From lists for

the year 194-9, made available to the writer, it has been possible to select the entries' relating to Canadian vessels inacoastal trade and to compile monthly statistics of passenger traffic and of cargo movements in self-propelled ships, scows and barges, and log rafts. These are shown - 81 - in;Tables: 5, 6, and 7. On the evidence that Vancouver is the focal point for the British Columbia coast trade, It may be assumed that characteristics of coast shipping illustrated by these tables are fairly representative of the British Columbia coasting trade as a; whole..

Table.5, page 82, and Figure: 1, page 83, showing the aggregate passenger traffic carried in 1949 to and from Vancouver in vessels:of the British Columbia Coast Steamship Service, Union Steamships, Gulf Lines, Canadian National Steamships, Marine Express Lines, Tymac Launch Service, Harbour Navigation Company, Howe^ Sound Lines, and Hamiltair, Limited, clearly exhibit a seasonal pattern!, reflecting tourist and holiday travel and movements of transient labour. During the summer months it IS: normal practice for the steamship companies to employ all avail• able passenger vessels and to speed up schedules for maximum utilization of transportation facilities. After Labour Day, which may be regarded as- marking the end of the tourist season, some units of the coast fleet are with• drawn from service and tight schedules are relaxed until mid-June brings about a resurgence of heavy passenger traffic.

Tables 6 and 7, on .pages 84 and 85, attest to the fact that barges and scows secure a preponderance of the bulk cargo shipped in the coasting trade, with the - 82 -

e 5

COASTAL PASSENGER TRAFFIC

Port of Vancouver, 194-9

Passengers Passengers Total Month Loaded Landed Passengers

34,102 January 39,223 73,325 February 29,877 28,232 58,109 March 42,237 38,974 81,211 54,943 April 56,230 111,173 56,945 May 64,290 121,235 75,022 june.- 89,750 164,772 145,195 July 146,980 292,175 119,426 August: 116", 290 235,716 81,929 September 83,333 165,262 October 54,460 50,712 105,172 40,266 November 39,603 79,869 51,986 December 48,877 100,863

1949 811,150 777,732 1,588,882

Source: National Harbours Board, Ottawa. PASSENGERS LOADED AND 'LMDSD AT VANCOUVER MONTHLY BY VESSELS IN COASTAL TRADE

Thousand 19 4 9 Passengers

C 00 ® I H

JAN FEB MAR APR MAY JON JUL AUG SEP OCT NOV DEC

Source: National Harbours Board, Ottawa, - 84 - Table 6 CARGO LOADED AT VANCOUVER BY CANADIAN VESSELS IN COASTAL TRADE 19 4 9 (Area.: Columbia River to Lynn Canal) TONS OP 2,000 POUNDS

JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER YEAR PASSENGER AND CARGO SHIPS General Cargo 19,427 14,897 19,075 19,539 21,227 24, 738 24,178 21,363 20,130 20,811 16,740 17,683 239,808 BARGES AND SCOWS (excl. Transfers) General Cargo 4,682 4,869 5,353 5, 562 6,207 7,003 5,340 6,397 5,948 5,575 4,909 3,855 65,700 Hog Fuel -5,180 4,646 8,220 6,160 9,390 8,050 6,910 7,310 6,450 11,250 9,640 9,920 93,126 Lumber and Piling 1, 852 1,136 971 2,506 723 1,432 558 1,024 899 396 1,683 920 14,100 Sulphur 1,150 180 964 2,487 1,993 6,774 Waste Paper 850 890 451 150 200 175 375 200 3,291 Rook, Sand and Gravel 9,279 16,926 21,915 3,923 8,286 13,186 14,459 1,848 2,962 983 93,767 Coal and Coke 524 404 400 305 300 430 2,363 Steel and Scrap 550 1,176 1,726 TRANSFER BARGES General Cargo 27,084 27,429 22,493 38,463 26,724 30,205 32,200 30,969 35,438 33,590 29,223 27,82.5 361,643 TOTAL DRY CARGO, BARGES 39,948 38,930 47,756 69,797 66,374 54,276 53,818 61,433 63,794 53,139 49,092 44,133 642,490 OIL TANKERS (SHIPS) Oil, Gasoline, etc. 27,958 32,701 31,461 27,496 29,266 35,396 25,324 27,796 25,075 33,605 19,715 32,072 347,865 TANK BARGES Oil, Gasoline, etc. 10, 633 10,019 12,256 12,099 12,145 11,335 10,688 10,663 12,692 13,389 13,514 8,725 138,158 Creosote Oil 354 350 350 350 352 1,756 TOTAL TANKER CARGO 38,591 43,074 43,717 39,595 41,761 46,731 36,362 38,459 37,767 47,344 33,229 41,149 487,779

LOG TOWS (Rafts) 7,440 8, 765 16,116 9,240 6,880 5,400 6,960 7,900 13,000 9,680 15,480 4,380 111,241

TOTAL OUTWARD CARGO 105,406 105,666 126,664 138,171 136,242 131,145 121,318 129,155 134,691 130,974 114, 541 107,345 1,481,318

Sources National Harbours Board, Ottawa. : - 85 - Table 7 CARGO LANDED AT VANCOUVER BY CANADIAN VESSELS IN COASTAL TRADE 19 4 9

(Area- Columbia River to Lynn Canal) TONS OF 2,000 POUNDS

JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBEEi OCTOBER NOVEMBER DECEMBER YEAR PASSENGER AND CARGO SHIPS General Cargo 8,415 7,333 8,280 9,871 9,155 10,429 11,588 15,152 9,155 Paper 11,773 12,204 14,746 128,099 720 374 195 225 225 360 380 300 258 575 270 240 4,122 FISH PACKERS AND FISHING VESSELS Fish, Fishmeal, etc. 1,185 3,564 853 522 1,784 982 1,724 3,488 3,174 4,036 2,807 1,598 2:5,717 TOTAL DRY CARGO, SHIPS 10,318 11,271 9,328 10,618 11,164 11,771 13,692 18,940 12,587 16,384 15,281 16,584 157,938 BARGES AND SCOWS (excl. Transfers) General Cargo 2,021 1,995 2,835 2,564 3,256 2,477 : 2^639 3,808 Pulp and Paper 4,913 2,648 2,455 2,789 34,400 17,055 17,532 16,355 15,544 15, 012 17,714 15,461 14,898 Coal 15, 549 17,051 14,194 15,031 191,396 16,963 13,775 14,933 13,359 12,218 10, 098 10,382 19,251 15,955 17,351 16,405 15,782 176,472 Lumber and Piling 14,260 5,761 10,991 14,278 10,132 21,004 8,186 14,247 14,347 18,165 9,877 23,451 164,699 Rook, Sand and Gravel 13,036 15,191 44,927 33,137 60,496 47,733 27,974 50,623 46,419 47,698 38, 090 32,173 457,497 Cement 2,829 4,298 11,066 12,994 14,455 14,453 13,150 17,152 12,433 9,938 8,735 4,977 126,480 Lime 840 770 709 1,192 1,273 487 419 1,139 953 1,204 288 856 10,130 Pyrites, Ore, Concentrates 625 1,180 1, 054 1,100 Z, 020 2,413 1,000 9,392 Fish 1,406 780 2,186 Scrap, Slag, Bricks 300 350 737 250 1,403 1,211 1,292 840 735 683 750 8,551 TRANSFER BARGES General Cargo 50,243 46,330 38,004 56,690 43,066 42,252 50,204 51,822 43,791 41,039 49,245 48,109 560,795 TOTAL DRY CARGO, BARGES 117,547 106,627 140, 557 150,008 162,491 158,483 130,807 175,186 157,115 156,707 141,702 144,918 1,742,148 OIL TANKERS (SHIPS) Oil, Gasoline, etc. 2,210 3,977 1,627 479 713 692 2,125 2, 915 1, 519 962 1,891 984 20,094 Empty Oil Drums 33 . 31 73 81 67 184 121 205 130 157 98 195 1,375 TOTAL TANKER CARGO 2,243 4, 008 1,700 560 780 876 2,246 3,120 1,649 1,119 1,989 1,179 21,469

LOG TOWS (Rafts) 97,836 64,400 59,300 72,638 106,891 109,885 106,862 100,980 91,863 88,440 95,815 66,420 1,061,330

TOTAL INWARD CARGO 227,944 186,306 210,885 233,824 281,526 281,015 253,607 298,226 263,214 262,650 254,787 229,101 2,982,885

Sources National Harbours Board, Ottawa. ' Table A (Supplementary)

CARGO LOADED AT VANCOUVER BY CANADIAN VESSELS IN COASTAL TRADE

1 9 5 Q (Ar«a: Columbia River to Lynn Canal)

TONS OF 2,000 POUNDS

JANUARY FEBRUARY MARCH APRIL WkY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER YEAR PASSENGER AND CARGO SHIPS

General Cargo 14,599 13,973 16,634 21,308 23,016 21,571 22,500 2:50,481 BARGES AND SCOWS (exol. Transfers) General Cargo 4,606 4,318 5,647 7,008 7,224 6,553 8, £79 10,183 8,817 8, 054 9,035 8,082 87,806 Hog Fuel 5,940 7,360 7, 290 10,370 11,840 13,660 11,000 10,990 11,830 11,52.0 10, 691 7,564 120,055 Lumber and Piling 680 408 1,733 1,609 2,950 1,928 1,391 641 994 1,299 4,363 949 Sulphur 580 875 18,945 1,605 2, 670 2,050 7,780 Waste paper 134 284 126 2:50 174 768 123 800 314 643 358 3,974 Rock, Sand and Gravel 4,513 15,973 7,223 2,195 14,258 10,847 3,789 13,738 6,974 303 7£5 80,538 Coal and Coke 424 406 1,021 432 Ore and Concentrates 2,283 1,978 3,426 871 Asphalt 446 6,721 900 210 TRANSFER BARGES 1,110

General Cargo 21,749 19,241 25,530 28,919 24,859 29,421 31,120 29,134 27,161 TOTAL DRY CARGO, BARGES 34,565 36,734 28,893 557,326 34,113 37,121 57,478 58,192 49,318 67,972; 69,501 55,731 63,550 65,222 61,769 46,571 666,538 OIL TANKERS (SHIPS) Oil, Gasoline, etc. 26,648 24,875 22,214 23,908 23,100 32,314 30, 519 24, 038 17,842 TANK BARGES 44,024 32,262 29,483 331,227 Oil, Gasoline, etc. 11,395 15,993 14,532 16,909 15, 707 13,494 20,838 Creosote Oil 15, 696 14, 15,338 17,060 365 9Z9 14,979 186,870 228 355 373 352 349 2,022 38,043 TOTAL TANKER CARGO 40,868 37,111 41,045 39,162; 45,808 51,357 40,107 33,123 59,362: 49,671 44,462 520,119 c Qftn LOG TOWS (Rafts) 520 •z /ton 6,073 5, 760 4,122 4,556 8,92.0 o, you 7,440 11,960 7, 520 5, 200 71,51 j 1 TOTAL OUTWARD CARGO - »- . j v v| M^/v I J. VJL J.

87,275 9^22 «*,«. IJ^SU UT^ jjjjui 152^41 126^ «,.!„ 161,926 u8>733 1>508(S49 Sources National Harbours Board, Ottawa. Table B {Supplementary)

CARGO LANDED AT VANCOUVER BY CANADIAN VESSELS IN CCASTAS. TRAPS 19 5 0 (Areft'i Columbia River to Lynn Canal) TONS OF 2,000 POUNDS JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER YEAR PASSENGER AND CARGO SHIPS General Cargo 9, 815 8,632 10,935 12,471 14,441 15,963 19,474 22,891 15,237 15,660 16,139 15,916 177,574 Paper 612 550 620 610 1,184 605 345 285 836 545 480 500 7,172 FISH PACKERS AND FISHING VESSELS Fish, Fishmeal, etc. 1,165 2,139 415 379 1,679 1,324 2,521 3,068 2,907 2,454 3,594 1,184 22,829 TOTAL DRY CARGO, SHIPS 11,592 11,321 11,970 13,460 17,304 17,892 22,340 26,244 18,980 18,659 20,213 17,600 207,575 BARGES AND SCOWS (axel. Transfers) General Cargo 1, 662 2,482 3,309 3,409 3, 212 4,178 3,812 6,136 5,337 3,946 4,758 5,681 47,922 Pulp and Paper 14,476 13,422 15,605 15,398 13,911 13,787 16,209 17,330 16,419 23,903 23,695 17,112 201,267 Coal 15,332 21,147 14,119 19,192 17, 855 22,112 13,614 18,900 16,835 15,373 17,326 16, 527 208,332 Lumber and Piling 16,276 15,820 17,357 16,202 15,052 23,697 19,042 18,058 11,851 17,995 19,675 14,824 205,849 Rook, Sand and Gravel 2,161 21,398 * 51,056 29,062 69,470 52,883 43,643 51,280 41,563 49,111 45,955 34,217 491,799 Cement 1,491 2,977 9,655 11,739 14,952 13, 671 10,379 19,117 15,737 14,869 8,898 4, 616 128,101 Lime 489 786 844 1,410 1,454 761 1,076 1,197 416 825 836 731 10,825 Pyrites, Ore, Concentrates 825 2,550 2,620 1,970 524 4,044 1,750 3,388 4, 000 2,740 3,500 27,911 Scrap, Slag, Bricks 420 1,521 500 546 250 1,200 1,600 683 1,436 1,000 550 9,706 TRANSFER BARGES General Cargo 43,084 27,884 34,178 53 , 540 40,938 49,484 52 i683 60*779 48,223 64,671 68,650 67,774 611,888 TOTAL DRY CARGO, BARGES 95, 796 108,886 150,264 152,422 177,914 184,867 161,658 196,147 160,452 196,129 193,533 165,532 1,943,600 OIL TANKERS (SHIPS) Oil, Gasoline, etc. 3,693 4,243 842 717 1,423 927 1,461 2, 512 1,508 929 2, 518 753 21,526 Empty Oil Drums 84 65 137 121 200 213 97 87 97 145 67 156 1,469 TANK BARGES Oil, Gasoline, etc. 465 50 460 1,112 1,982 4,069 TOTAL TANKER CARGO 3,777 4,308 979 838" 2,088 1,190 2,018 2, 599 1, 605 1,074 3,697 2,891 27,064 LOG TOTS (Rafts) 45,342 61,876 66,000 91,898 91,428 109,944 104,918 97,088 107,306 84,908 111,352 90,461 1,062,521 TOTAL INWARD CARGO 156,507 186,391 229,213 258,618 288,734 313,893 290,934 322,078 288,343 300,770 328,795 276,484 3,240,760

Source: National Harbours Board, Ottawa. - 86'- result that the total tonnage of dry cargo carried by unrigged vessels is approximately six times that moved hy self-propelled ships?. The; situation is reversed for tank vessels: employed in the transport: of gasollirat, fuel oil, and other petroleum products^ Without taking into account the importation of some half million tons of oil from California in;Canadian ocean-type tank steamers, ships:: In the coastal trade move about two and a half times: as: muchv. liquid cargo as do barges:.

It will also be noted that the movement of dry cargo outward from Vancouver in ships: is greater in ton• nage by about fifty-two per cent than: the inward movement, and, moreover, that shipments from Vancouver consist chiefly of general cargo; that is:, high class:merchandise such::as; fresh provisions;, canned goods, clothing, furnit• ure, and machinery. Cargoes brought Inward in ships are in large part the products: of the fisheries, the paper mills, the metal mines, and returned empty containers such as gasc cylinders, beer kegs, and bottles; In contrast, the tonnage of cargo moved inward to Vancouver by barges and scows exeeeds the outward move• ment by about one hundred and seventy-one per cent. Mostly, the cargoes carried in unrigged vessels are low and medium class commodities, such as sand and gravel, coal, lumber, hog fuel, and cement. Newsprint, too, is, nowadays, trans- - 87 - ported almost exclusively in "barges and scows im the coastal trade. A seasonal pattern.for cargo traffic is by no means as clearly defined as for passenger traffic, and dogmatic conclusions-cannot be formed from.the study of one. year's statistics. However, there are indications that coast shipping Is least active in the early part of the year and becomes very brisk in late summer, when the canneries and fish processing plants are Im full production. Trends of British Columbia coast passenger and cargo traffic, computed by the method of three-year moving averages over a period of seventeen years, are shown im

Figures 2 and 3, respectively (pages 88 and 89). They illustrate a remarkable growth In the volume of traffic alongside which there was no corresponding increase in the capacity of the self-propelled steamship fleet:. (See

Table 14, page I36' , and Figure 5, page 137 .) The ex• planation therefore must be in the greater utilization-; of passenger space in the coast steamers, particularly on: the routes of relatively dense traffic between Vancouver and Vancouver Island, and in.the development of the scow and barge fleet;. Sources: Annual Reports of the Harbour Commissioners of Vancouver (1932 - 1935); Annual Reports of the Rational Harbours Board (1936 - 1948). THREE-YEAR MOVING AVERAGE TREND FITTED TO THE TONNAGE OF CARGO LOADED AND LANDED AT VANCOUVER IN DOMESTIC TRADE

Million 1932 - 1948 Tons T 5

*1 CR C 00 CD

3 H

2 h-

1932 33 34 35 36 37 38 39 1940 41 42 43 44 45 46 47 48

Sources: Annual Reports of the Harbour Commissioners of Vancouver (1932 - 1935); Annual Reports of the National Harbours Board (1936 - 1948). - 90 -

CHAPTER 7

FREIGHT RATES AND FARES

Freight rates and passenger fares in the; British Columbia: coast trades are determined by the companies pro- Tiding the coastal transportation:services and, except.on; subsidized routes, are not subject, to government regulation. While The Transport Act, 1938 provides for the control of domestic shipping by the Board of Transport Commissioners of Canada, ships engaged in the transport of goods or passengers between ports or places in-British Columbia receive specific exemption under subsection 4 of section 12 of the Act. Where subsidies are paid for shipping ser• vices, the Canadian Maritime: Commission reserves the right; to approve the contractor's tariff.

AS a practical measure intended to maintain the stability of the rate structure, the chief shipping lines engaged in;coastal trade^ agree to notify one another of any intention to change a rate in force and to discuss any proposed change. The B.C. Coastwise Operators' Association; is the medium: for the exchange of such information. Rates are, in consequence, with few exceptions uniform among competing lines offering equivalent; services. Though they are not bound to a common tariff, the members of the 91 -

Association appear to recognize the need for broad co• operation in order to guard against unprofitable rate: warfare. Independent owners of small freighters, too, are guided by the tariffs published by members of the B.C. Coastwise Operators' Association and generally adhere to the established rates. Rates between ports not served by the coastal liners are based on: tariff rates for comparable distances. Only when the peak traffic season is drawing to a close is there evidence of rate cutting in attempts to secure the last cargoes. Over the past twenty-five years there were no substantial changes in the general level of coast freight rates until September, 194-7, when ceilings imposed by the Wartime Prices and Trade Board in October, 194-1, were lifted. On September 22, 194-7, a blanket increase of thirty per cent on existing rates was put in force. A further increase, involving a re-examination of the whole tariff structure, took effect from June 11, 194-8, with nonr- uniform upward adjustments of rates on: most commodities. To arrive at an accurate appreciation of the rise in coastal freight rates over the past decade, one must make a detailed comparison of the published tariffs now in-force with those that are superseded. In many cases, services that formerly were included in: the ship's 92 - charge, are now shown-! as separate charges. The basis of measurement; too, has, in the ease of a number of commod• ities, been changed. As an illustration of the increase in freight charges imBritish Columbia coast: shipping In recent years, there follows: an examination of. represent• ative tariffs issuedfay Canadia n National Steamships.

First of all, it must be noted that, in addition to the actual amount accruing to the ship as freight, there are levies made onoargo passing over wharves at such: ports as Vancouver, Victoria, and Prince Rupert. These levies, called wharfage charges, are assessed on general merchan• dise at the rate of 50$ a ton, weight or measure (2,000 pounds or 4© cubic fee*), whichever Is greater. A minimum charge per shipment is specified, the minimum for domestic coastal cargo having been increased on January 1, 1949, from 15^ to 20^. Secondly, charges are made for handling cargo between the. ship's slings? and the wharf at such ports as Vancouver, Victoria, and Prince Rupert. These handling

charges are applied on general merchandise at the; rate of |1 a ton; weight or measure (2,000 pounds or 40 cubic feet), whichever is greater, with ar minimum charge per shipment of 15$. Prior to June 11, 1948, the handling charge was at the rate of 90$ BE ton, with & minimum of 10^ on ship• ments over fifty pounds in weight and no charge for ship*- - 93 - ments up to fifty pounds; A third levy, Vancouver cargo rates — the pur• pose of which is to finance the services of the Harbour Master's department and to aid in maintaining a signal station and a fire boat in the Port: of Vancouver — was Introduced by the Vancouver Harbour Commission in: 1920 and isf now collected by the National Harbours Board. In 1924, cargo rates on general merchandise were raised from.10^ to their present level of 15c/ per ton, with a minimum charge of 5# on; a shipment1. When cargo requires cold storage in. transit, the commodity charge applied by the ship is increased by fifty per cent for providing refrigeration service. Wharfage and handling charges may or may not be included im the ship's charge quoted Im the tariffs. In general, in tariffs in use before June 11, 1948, wharfage and handling were hidden; im the ship' s= charge;; the tariff in force from that date shows wharfage and handling as^ separate: chargesi Cargo rates and, when they apply, cold storage charges are invariably treated as additional char• ges. With these qualifications-in mind, one may, for comparative purposes, extract the rates quoted for similar commodities in CNSS Tariff #10 and CNSS Tariff #20. The former, issued on December 20-, 1926, and effective from. January 1, 1927, although modified from time to time by - 94 - supplements, remained in force until superseded by the latter, Issued on June 10, 1948, and effective the follow• ing day, (See Table 8, page 95.) Consider, now, the freight charges, first, on a shipment of 100 pounds of general merchandise, and second, on a shipment: of one ton. of general merchandise, from Van• couver to Prince Rupert: CNSS CNSS: TARIFF TARIFF #10 #20 I I 1. 100 pounds of general merchandise shipped from Vancouver to Prince Rupert Tariff rate, minimum shipment .75 .85 Wharfage, Vancouver - .20 Handling, Vancouver - ,15 Wharfage, Prince Rupert - .20 Handling, Prince Rupert - .15 N.H.B. Cargo Rates, Vancouver .05 .05 .80 1.60

2. 2,000 pounds: of general merchandise shipped from Vancouver to Prince Rupert; Tariff rate 8.25 9.50 Wharfage, Vancouver - .50 Handling, Vancouver - 1.00 Wharfage, Prince Rupert - .50 Handling, Prince Rupert - 1.00 N.H.B. Cargo Rates, Vancouver .15 .15 8.40 12; 65

The above examples-show that the: charges for

shipping 100 pounds of general merchandise from Vancouver - 95 - Table 8

EXTRACTS FROM CANADIAN NATIONAL STEAMSHIPS' FREIGHT TARIFFS CNSS CNSS COMMODITY TARIFF TARIFF #10 1 Between VANCOUVER and VICTORIA Minimum shipment .65 .80 General merchandise n.o.s. per 100 pounds .25 per ton, weight or measurement 6.00 Fruit and vegetables o..r.d.& d. per 100 pounds .37* .45 Lumber, common or dressed, not exceeding 30 feet in length per 1,000 f.b.m. 6.00 10.00 Between VANCOUVER and PRINCE RUPERT Minimum shipment .75 .85 General merchandise n.o.s. per ton, weight or measurement 8.25 9.50 Cans, empty, in cartons per 40 cubic feet 4.00 5.00 Coal, bulk, from Union Bay, Nanaimo, Ladysmith, in lots up to 100 tons per torn of 2,240 pounds 4.00 per ton of 2,000 pounds 6.50 Fish, fresh, in ice o.r.d.4 d. 24,000 pounds or over, per 100 pounds .50 per 2,000 pounds 15.00 Salt, in boxes, sacks, or barrels 30,000 pounds or over, per 100 pounds .25 per ton^ weight or measurement 5.00 Between VANCOUVER and OCEAN FALLS .50 Minimum shipment .65 General merchandise n.o.s. per ton; weight or measurement 6.50 8.50 Between VANCOUVER and STEWART Minimum shipment .65 .85 General merchandise n.o.s. per ton, weight or measurement 8.50 10.50 Between VICTORIA and UCLUELET General merchandise n.o.s. per ton, weight or measurement 5.50 7.50 * 96' - to Prince Rupert have increased by one hundred per cent: and for shipping a ton* by just over fifty per cent. (It may be shown that the percentage increase in shipping charges declines from one; hundred per cent to just; over fifty per cent as the shipments are increased from 185 to 800 pounds.)

Next,, consider the; freight: charges applicable on two shipments of general merchandise, the first of 100 pounds and the second of one ton;, from Vancouver to Ocean;

Falls: CNSS CNSS TARIFF TARIFF #10 #20

1. 100 pounds of general merchandise;: shipped from Vancouver to Ocean Falls Tariff ratei minimum shipment: .50 .65 Wharfage, Vancouver - .20 Handling, Vancouver - .15 N.H.B. Cargo Rates, Vancouver .05 .05 Tii iToi

2. 2,000 pounds of general merchandise shipped from Vancouver to Ocean Falls Tariff rate 6.50 ' 8.50 Wharfage, Vancouver - .50 Handling* Vancouver - 1.00 N.H.B. Cargo Rates, Vancouver .15 .15 6.65 10.15

The examples indicate a~tariff increase on

minimum shipments from Vancouver to Ocean Falls of ninety- - 97 - one.per cent, and on shipments of a ton of general merchan• dise, of nearly fifty-three per cent. (The percentage in• crease, it may be shown, declines from ninety-one: per cent: to just under fiftyfthree per cent as the shipments are increased from 155 to 800 pounds.) It will he: noted that no provision IS-made for wharfage and handling at destin• ation, and, in fact; the shipping company's tariff does not list.top-wharfage charges that are levied by the; local wharfinger against the consignee of goods landed at Ocean Falls. Thestariff charges-on shipments of one ton;of general merchandise on representative British Columbia coast routes may he summarized as follows: CNSS CNSS PER CENT ROUTE TARIFF TARIFF INCREASE #10 #20 1 1 % VANCOUVER - VICTORIA 5.15 9.15 77.6 B; VANCOUVER- PRINCE RUPERT 8.40 12.65 50.6 c. VANCOUVER - OCEAN FALLS 6^.65 10.15 52.6 D. VANCOUVER - STEWART 8.65 12.15 40.5 E. VICTORIA - UCLUELET 5.50 9.00 63.6

As in;the case of Ocean Falls, top-wharfage is not Included in; the. shipping company's rates for cargo landed at Stewart and Ucluelet. At ports where the Government of Canada maintains piers, the local wharfinger is authorized to col• lect the; top-wharfage; charges shown in the Schedule to the - 98 -

Regulations.for the Use and Management of Government Wharves in Panada. Because the charges vary considerably for different goods within the category of general merchandise, it is not: practicable: in the foregoing summary to show wharfage: charges at ports other than those for which a rate; is listed in the shipping company's tariff.

The mean of the percentage increases in tariff charges on: shipments of general merchandise on the five routes-selected above is fifty-seven. If, then, the extracts from: GISS Tariff #10 and CNSS Tariff #20 are taken as representing coast shipping rates in 1939 and 194-9, respectively, the rise in the; level of freight rates cannot be regarded as excessive. By way of comparison, during the same period the index of general wholesale prices advanced by one hundred and seven per cent (from 75.4- to 156.6) and the: index of the cost of living in Canada by

Government Harbours and Piers Act, Regulations- for the Use and Management of Government: Wharves in Canada, P.C. 5244, October 18, 194-9. Typical rates listed in Part Second of the Schedule are: Beef, per 100 pounds- | 0.02 Beer, bottled, per dozem 0.005 Butter, per 100 pounds 0.02 Fish, fresh: Free Grain.of all kinds except; oats, per bu. 0.0025 Salt, per ton * 0.10 Minimum charge per entry 0.05 - 99 - sixty per cent (from 101.5; to 162.1). 2? Whether the freight rate increases were justified will become more apparent following an examination of revenues and operating costs. Passenger fares on; most of the routes served by

British Columbia coastal vessels remained virtually un-r changed from 1923until 1946. (See Table 9, page 100.) In recent years, however, the rising costs of furnishing water transportation services have raised fares to un> precedented high levels. On; most of the long trips, where meals-and berth are included inn the cost of passage, fares

have advanced by one-third to one-half since 1946r; on the short trips, by one-quarter to one-third. The; stability of the rate structure is a result, of the dominance; of the coast transportation industry by three major steamship --lines-: Canadian Pacific B, C:. Coast Steamship Service, Union Steamships, Limited, and Canadian National Steamships, each with a large capital investment in vessels and terminal facilities. For forty years there has:not been a rate war of any significance. The early days of coast passenger service, on the other hand, were punctuated with rate warfare as rival steamship; owners

27 Canada, Bureau of Statistics, Prices and Price, Indexes, October, 1949. - 100 -

Table: 9

FIRST GLASS OWE WAY PASSENGER FARES ON FOUR B.C. GOAST ROUTES

1915 - 1949

Between VANCOUVER and; NANAIMO . VICTORIA PRINCE RUPERT SKAGWAY

30.00 1915 2.00 1916 I 18.00 35.00 1917 20.00 I 1918 21.00 37.50 2.50 1919 I 40.00 1920 26.00 1921 2.75 1922 1.75 24.00 1923 1.50 1924 2.50 45.00 1925 1926 1927 1928 1929 1930 1931 1932 37.50 1933 40.00 1934 42.50 1935 45.00 1936 47.50 1937 1938 1939 52.50 1940 1941 I 1942 59.70 1943 58.86 1944 1945 .40 1946 26 59.50 1947 1.65 2.75 30.00 1948 3.00 31.50 I 63^0 1949 1.90 3.45 36.25 Sources Canadian Pacific and Canadian National tariffs - 101 - sought to fores one another out of business. Ninety years- ago, fares from Victoria to Hope fluctuated between twenty- five cents and ten dollars; from Victoria to New West• minster, between fifty cents and six dollars. Occasionally, in desperation, a steamboat owner would advertize passage in his vessel gratis. Sixty-five years ago> during another burst of rivalry, one; could for twenty-five cents take steamer passage from Victoria to Nanaimo. The last rate

skirmish occurred in 1908 when. the; Canadian Pacific began a service to Seattle inn opposition to the established American lins£> the Inland Navigation Company. Fares between Victoria and Seattle and between Vancouver and Seattle dropped to twenty-five cents in what the companies declared was a "fight to the finish." Differences were reconciled, nevertheless, and passenger fares restored to remunerative

levels. 28

It wiir be noted in Table 9 that fares for the international voyage between Vancouver and Skagway have fluctuated to a greater extent than those for domestic coasting trips. The explanation lies, in large measure, with the existence of American competition from Seattle. Apart from the limited number of Canadian passengers travel-

28 Jenkins, R. A. V., "Seattle- and Return for 50 Cents", Victoria Daily Times, July 10, 1948, p.3. - 102 - ling by way of- Wrangell, Juneau, and Skagway to and from northern British Columbia and the Yukom Territory, passen• ger traffic in: the southeastern Alaska trade is entirely American, and im order that a share of the American traffic will be attracted to the Canadian lines, the fare via Vancouver must necessarily be competitive with the fare by American steamer in direct service between-Seattle and ports. Alaskan travellers who use the Canadian lines usually complete the trip to the United States by train or steamer from Vancouver to Seattle.

Alaska cruises organized by Canadian steamship companies in the summer months are extremely popular with American tourists. According to an estimate by the United States Maritime Commission, Canadian vessels carried fifty-three per cent of the southeastern Alaska tourist traffic in 1934, fifty-eight per cent in 1935, sixty-two per cent in 1936, sixty-four per cent in 1937, and sixty- nine per cent in 1938. 2^ Cruise fares are calculated on the basis of- twice the normal one way fare between Van• couver and Skagway, with additional charges for "premium" accommodation and for side trips. Alaska cruise fares listed in the passenger tariffs of the Grand Trunk Pacific

29 United States of America, Economic Survey of Coast• wise and Intercoastal Shipping, United States Maritime Commission, 1939, p.21. - 103 -

Steamship Company and. its successor, Canadian National

Steamships, from 1918 to 1949 are shown in Table 10, below.

Table 10 MINIMUM FIRST CLASS ALASKA CRUISE FARE 1918 TO 1949

CRUISE PRINCE GEORGE PRINCE HENRY NEW SEASONS PRINCE RUPERT PRINCE ROBERT PRINCE GEORGE 1918 | 75.00 1925-1929 90.00 1930-1932 90.00 | 90.00 1933 90.00 1934 80.00 1935 85.00 100.00 1936 90.00 110.00 1937 90.00 115.00 1938-1939 95.00 115.00 1940-1941 105.00 1948-1949 |160.00

A steady upward trend is apparent, deviating only in the depression years 1934 and 1935. While the general principle in setting rates is to charge what the traffic will bear, the popularity of the Canadian cruise ships among American tourists would seem to indicate that fares are not at a level to discourage travel. Normally, in British Columbia coast shipping practice, thirty-day round trip fares are computed on the basis of twice the one way fare less ten per cent, although on a number of routes no reduction is authorized on round - 104 - trip tickets. Week-end fares, allowing a reduction of from fifteen to twenty-five per cent on the round trip fare, are available on such routes as Vancouver - Nanaimo, Vancouver - Victoria, Vancouver - Seattle, and Victoria - Seattle. Special excursion fares are offered from time to time, too. As long ago as 1899, the Canadian Pacific Navigation Com• pany announced Dominion Day trips between Vancouver and Victoria at a round trip rate of $1.50. Mackenzie Brothers, Limited, operators of the "Rupert City", in 1909 ran excur• sions from Vancouver to Prince Rupert for $20, return. Almost any holiday became the oocasion for excursion trips, the cheap fares assuring capacity shiploads.

For men who must travel at the lowest possible cost, the coast steamers generally provide "deck" passage at fares of less than half the first class rate. Meals and bed linen are not included and the accommodation is usually of an extremely low standard. Bunks are available in a common sleeping room and inexpensive meals, served up with a minimum of ceremony, may be purchased. In coast steamers that are equipped to handle automobiles, passengers may bring their cars as "baggage" at excess baggage rates. On one day in 1939, four hundred and three automobiles were carried between Vancouver and Nanaimo, and the average dally traffic for the year in vessels of the British Columbia Coast. Steamship- Service - 1D55 - was on© hundred, and ninety cars. 30 sample rates, in effect from October 1, 1948, are as-follows-:

Between: ONE WAY AUTOMOBILE RATES VANCOUVER Wheel-base Measurement;

and Up to 110" Over 110" • I NANAIMO J, 50 4.50 VICTORIA 4.00 5.00 SEATTLE 6.05 7.20

It is not proposed to treat in detail the subject of the rate structure in the towing industry, but; merely to ,outline briefly the development of the present system of

assessing charges-. 31 Before the first world war, rates were a matter for negotiation: between the parties to an

agreement to provide towing services. In 1918, however, a Royal Commission, with Mr. W. E. Burns as chairman, inves• tigated certain- issues in dispute between the Canadian Merchant Service Guild, representing coastal steamship and tOw boat officers, and the employing companies-, and recom• mended a number of improvements in working conditions. The tow boat owners thereupon.organized their own: assoc• iation (the B.C. Tow Boat Owners' Association) for the

3° Stockdlll, C. E., "The British Columbia Coastal Service: Some Historical Facts and Figures", Canadian Pacific Staff Bulletin^ December 5, 1940. 31 The material of this paragraph is based chiefly on an address by J. A. Lindsay, "Rate Structure in the - 106 - purpose of securing co-operation in regularizing not only wage scales and conditions of employment but also service rates. Though efforts to standardize rates during the

1920's were ineffectual, the adversities of the early '30'r left owners less inclined to exercise independence. In;

1934, a schedule of rates between zones, each ten miles

square, laid out on a chart of the British Columbia coast,

was put in force. For some commodities rates were quoted

to include both scow and towing charges:. In: 1937, the:

zone system was modified, and basic rates were applied to

three zones:, viz.; thirty-five miles: and under, thirty-six

to seventy miles, and over seventy miles. For example, the:

loaded scow rate was $2.00 a mile in: the first zone, $1.75

a mile in: the second, and $1.33 1/3 in;the third. Mileage

rates varied, depending on whether scows were moved light

or loaded, and whether employment was one way or round trip.

Additional scows In;tandem were charged sixty per cent of

single scow rates. Where trip-rates were not appropriate,

tugs could be hired on an hourly or daily basis', the daily

rate being twelve times the hourly rate. For such cases,

rates were graduated for nine categories of tow boats

Towboat industry", reported in Harbour and Shipping, Novem• ber, 1941, pp.362-365, and the Canadian Merchant Service guild Annual for 1941, pp.17, 26. - 107 - classed according to the vessels* power. Rate revisions in 1940 and 1941 brought increases of about ten per cent, and, following the removal of wartime controls in September, 1947, further increases of thirty-two per cent for log towing and twenty per cent for scows were put in effect to compensate for higher operating costs. Barge lines, offering scheduled services as common carriers, do not.adhere to the rate system described in the foregoing paragraph but instead publish competitive tariffs similar to those issued by the steamship lines. - 108 -

CHAPTER 8

THE COST OF PROVIDING- COASTAL SHIPPING SERVICE

In: tine examinationof thesub je-ct: that occupies the present chapter, the total expenses involved in oper• ating a steamship are grouped as follows:

A. Running expenses 1. Wages and benefits'paid to crews 2. Fuel 3. Provisions: and stores 4. Maintenance and repairs 5. Stevedoring 6. Insurance:

: B ; Overhead expenses 1. Management. 2. Maintenance of terminals

3. Interest and depreeiationi

Wages; together with overtime and vacation pay, will usually account for between thirty and forty per cent of the total running expenses of medium-size and large steamers operating in the British Columbia coasting trade.

The number of menlaia crew will depend, of course, on th©-- size of the ship, the complexity of the machinery onboard, the amount of passenger accommodation, and the nature of the service performed by the vessel. An indication of the size of crew for different types-of coast vessels is given in Table 11, on page 109. - 109 -

Table: 11

SIZE OF CREW CARRIED IK REPRESENTATIVE TYPES OF BRITISH COLUMBIA COAST VESSELS Vessel Gross Service Crew Tonnage Catala 1,476 Pas senge r-c argo 54 CMlcc-tiir 1,837 Passenger-cargo 52 Chilkoot: 1,356 Cargo 25 George McGregor 101 Towing 7 Imperi al Vancouver 1,512 Oil tanker 20 Lady Cecilia? 944 Day passenger 33 Prince Rupert 3,379 Passenger-cargo 98 Princess Kathleen: 5i>908 Passenger-cargo 108 Princess Louise 4,032- Passenger-cargo 106 Cargo 22 Southholm 1,029

Progressively improving basic pay scales, in• creased pay for overtime, and additional paid Holidays have, since 1939, more than-doubled the wages- expense borne by the: companies-. Table 12; on: page 110, presents^ a comparison: of the manning scale and basic rates of pay in force in 1939 and 1949 in; a typical coastal steamer with cabin accommodation for approximately two hundred passengers. It isr apparent that formerly low-paid crew members, such as messmem, porters, and dishwashers;, have gained relatively greater basic pay increases than have officers and more senior personnel. Trade unions, able to take advantage of the fact that the high level of - 110 -

Table 12 COMPARISON OF GREW LABOUR COSTS 1939 - 1949 ss PRINCE RUPERT

RATING 1939 WAGES 1949 WAGES . PER CENT NO. RATE TOTAL NO. RATE TOTAL INCREAS # 1 I 4, f 7° Master 1 As agreed 1 As agreed First Officer 1 170.00 170.00 1 257.00 257.00 51.2 Second Officer 1 150.00 150.09 1 224.00 224.00 49.3 Third Officer 1 110.00 110.00 2 180.00 360.00 63.6 Quartermaster 3 75.00 225.00 3 144.00 432.00 92.0 Lookoutman 3 70.00 210.00 3 139.00 417.00 98.6 Dayman 2 70.00 140.00 3 139.00 417.00 98.6 Watchman 1 75.00 75.00 1 144.00 144.00 92.0 Winchman 1 75.00 75.00 1 144.00 144.00 92.0 Stevedore 1 70.00 70.00 1 139.00 139.00 98.5 Deckhand 6 ' 65.00 390.00 5 134.00 670.00 106.2 Chief Engineer 1 235.00 235.00 1 310,00 310.00 31.9 Second Engineer 1 170.00 170.00 1 246.00 246.00 44.7 Third Engineer 1 150.00 150.00 1 224.00 224.00 45.3 Fourth Engineer 1 140.00 140.00 1 213.00 213.00 ' 52 • 1 Junior Engineer 5 115.00 345.00 3 190.00 570.00 65.2 Oiler 3 80.00 240.00 3 149.00 447.00 86.3 Fireman 6 70.00 420.00 6 139.00 834.00 98.6 Storekeeper 1 80.00 80.00 1 149.00 149.00 86.3 Chief Steward 1 145.00 145.00 1 255.00 235.00 62.1 Second Steward 1 105.00 105.00 1 185.00 185.00 76.2 Storekeeper 1 80.00 80.00 1 163.00 163.00 103.8 Night Saloonsman 1 55.00 55.00 1 153.16 153.16 178.5 2nd Night Saloonsman 1 55.00 55.00 1 144.33 144.33 162.4 Linenkeeper 1 55.00 55.00 1 153.16 153.16 178.5 Steerage Steward 1 55.00 55.00 1 148.16 148.16 169.4 Stewardess 1 80.00 80.00 1 138.41 138.41 73.0 Saloonsman 1 55.00 55.00 1 148.16 • 148.16 169.4 Walter and B.R. 13 55.00 715.00 17 148.16 2,518.72 169.4 Bellman 1 55.00 55.00 1 148.16 148.16 169.4 Janitor 1 45.00 45.00 1 138.16 138.16 207.0 Messmsn 4 40.00 160.00 3 133.16 599.48 232,9 Porter 6 40.00 240.00 5 126.57 652.85 216^.4 Bellboy 3 25.00 75.00 Chief Cook 1 119.45 119.45 1 218.00 218.00 82.5 Second Cook 1 75.00 75.00 1 178.16 178.16 137.5 Assistant Cook 1 60.00 60.00 3 163.16 489.48 171.8 laker 1 75.00 75.00 1 178.16 178.16 137.5 Night Cook — 1 168.16 168.16 Butcher 1 75.00 75.00 1 178.16 178.16 137.5 Pantryman 1 55 • 55 55.55 1 163.16 163.16 193.7 Dishwasher 3 40.00 120.00 6 143.16 858.96 257.9 Purser 1 170.00 170.00 1 246.00 246.00 44.7 First Assistant Purser 1 110.00 110.00 1 226.50 226.50 105.9 Second Ass't. Purser 1 90.00 90.00 1 174.00 174.00 93.3 Third Assistant Purser 1 80.00 80.00 1 147.00 147.00 83.8 Radio Officer 1 75.00 75.00 1 141.00 141.00 88.0 Barber 1 .25 .25 1 • 25 .25 Beautician 1 .25 .25 1 .25 • 25 News Agent 1 .25 1 * 25 .25

92 6,475.75 98 14,870.2 4 129.6

DALLY COST (exclusive of Master's salary, crew's overtime, et cetera): 1939: $212.90 1949: #488.88 - Ill - employment! after the war left only a small pool of labour on which the companies could draw to fill menial positions afloat, succeeded in their demands for higher pay and better working conditions. Unfortunately, some anomalous situations have resulted; for instance, radio officers, who are: poorly organized in the: coast ships, are receiving lower wages than most members of the catering staffs. While the payroll account in respect of basic wages has, for a coasting ship such as the "Prince Rupert", grown to two hundred and thirty per cent of what it was in 1939, the Increase has-been much less than for Canadian1 ocean-going ships. Rates of pay which, before the second world war, were lower In the deep-sea than in the coast, trades were, in 194-9, considerably higher, as a few exam• ples will indicate; Gana&'i an Oc ean- B.C. Co as t al Going Vessel Vessel 1939 1949 1939 1949 First Officer $135.00 $285.00 $170.00 $257.00 Chief Engineer 190.00 400.00 235:. 00 310.00 Ordinary Seaman: 37.50 150.00 65.00 134.00 Fireman, 55.00 170.00 70.00 139.00 Messman: 37.50 160.00 40.00 133.16

A comparison:of overtime rates in 1939 and 1949 la apt to be misleading owing to the many variations that have taken place in the: rate schedule and In the service 11Z conditions. It is a safe conclusion; however, that changes in rates and working conditions have been in. favour of the crewsr and have added to the running costs of the vessels'. Other benefits enjoyed by crews include vacations on pay, payments in lieu of holidays, and contributions to the Workmen's Compensation Board, all of which are; reflected in labour costs. The. second item to be considered in examining the running costs of a vessel is fuel. All but: a few of the: ships: in: the: British Columbia coastal trade are Steamers, burning oil fuel — a fact that may seem strange when good bunker coal is available on Vancouver island. However, with bunker fuel oil at: about $13.50 per ton and coal at $11.00 per ton, trimmed, oil is the more econom• ical fuel. In the first place, it may be assumed that two tons of bunker oil will develop approximately the same power as three tons of coal. Furthermore, oil fuel is cleaner than coal, can be loaded more conveniently, and takes up less useful space in the ship; The smaller fire room crew needed gives oil a further advantage over coal. The trend from coal to oil fuel actually began before the first world war, the Grand Trunk Pacific Steam• ship Company having converted the "Prince George" and "Prince Rupert" In 1912. Soon-after the war, the use of oil fuel became general In coast steamers. - 113 -

Fuel oil expense^is usually from fifteen to twenty per cent of the total running expense of a coast steamer. The advance^ in the price of oil since 1939 is, therefore, of major significance to the shipping companies.

Bunker MGW fuel oil cost $1.01 a barrel at Vancouver before the war. In 194-3, the price had risen to $1.52; in.1946, to $1.92; in 1947, to $2.50; and in 1948, to $3.05. By September, 1949, it:had declined to $2.08, but: was still more than double the 1939 price.

Small shipsc, particularly those of under a thousand horse>-power, are more economically operated with diesel than with steam engines; Not' only is the initial cost of suitable diesel engines: lower than the cost of reciprocating engines for small vessels, but the fuel cost per horse-power is also less. Besides, fewer men:are needed on; the engine room;staff when internal combustion engines are used. Offsetting, to some; extent, the desir• able features of diesel propulsion is one important limit• ation: the-diesel engine is a precision machine requiring expensive periodical overhauls if peak performance is to be maintained, and immediate attention to faults that may develop. Since the early 1920' a-, diesels have proven economical and reliable in coastal cargo vessels-, , tankers, , and fish packers, and they are the- logical choice when machinery is being selected for new - 114 - vessels of up to, say, fifteen Hundred gross tons. Provisions and stores constitute- the third item, of running costs, making up about ten per cent of the total running expense of coastal cargo ships, and around twenty per cent in the case of passenger vessels. Victuals- for crew and passengers, deck stores', such as cordage, painty and canvas, engine room stores used in maintaining the propulsion and auxiliary machinery, and steward's stores, including linen, crockery, table-ware, galley utensils, and other articles required in the catering department, are constantly expended in the operation, of a ship and must be replaced. The cost of supplying food and consumable: stores has more than doubled since 1939, if one regards the Dominion Bureau of Statistics' index of general

wholesale prices (1926 = 100, 1939 a 75.4, October, 1949 = 157.1) as a valid Indicator. Maintenance and repairs^ are the. fourth item to consider. Ordinary maintenance is performed by a ship^s crew, or by shore personnel: who carry out their work in port.without delaying the vessel. Major repairs that can

be deferred are normally performed when the ship, can bee withdrawn:from service and turned over to a shipyard. Extensive quadrennial surveys', Undertaken in order to pre• serve the vessel's classification: with registration societies, must be provided for. The cost of repairs and - 115 - maintenance, depending to a considerable extent on the age and condition of the ship:, as well as on various uncalcul- able factors, will usually amount to approximately eight per cent of running costs. Charging out rates for ship• yard labour have increased from seventy to one hundred and fifty per cent since 1939, and for equipment, rates have

In: soma cases doubled. 3 2

Stevedoring expense, the fifth item, is respon--

sible for. about, ten per cent of running costs — more, for

cargo vessels; and somewhat less, for passenger vessels.

Depending upomthe nature of the cargo handled, stevedoring

costs for loading may run to as much as $2.50 a ton, and

for discharging, to $2.00. Some owners of small vessels,

whose crews formerly loaded and discharged the cargo carried,

allege that union success in reserving cargo handling to

longshoremen has slowed the turn-around in port, thus adding

to operating expense. Increased costs since 1939 are,

nevertheless, primarily the reflection of basic wage in•

creases for stevedores from 90$ an hour, the pre-war rate,

to $1.35 an hour, the introduction of a special commodity

bonus of 10^ an hour, and time and one-half for overtime

instead of time and one-third.

32 Tariff of Shipyard Charges, Company, June 1, 1937, and Tariff of Shipyard Charges, B.C. Ship• builders' Federation, November 1, 1948. - 116 -

Insurance expense is the last item to be con• sidered under running costs. It may be subdivided into hull and machinery insurance, covering marine risk, and protection and indemnity insurance, covering liability for injury and loss of life. Premiums will depend upon the insured value of the vessel, its trading limits, and the underwriter's views of the experience record of the owners. In at least one instance, a coast shipping company has set: up its own insurance fund to cover marine risk. Insurance expense is usually fifteen per cent or less of the total running costs of British Columbia coasting steamers. Management expenses, as part of overhead, vary widely with the nature of the shipping service offered by a company. The: Canadian Pacific and Canadian National coast steamship lines have not only their own passenger, freight, and general offices, but also the facilities of nation-wide transportation systems upon which to draw. Small companies may direct their operations simply from an unpretentious office in_ Vancouver and, when necessary, appoint: agents for their vessels at ports of call. Regard• less of the size of the: enterprise, it iS' certain: that the cost of management has- risen since 1939 In step with wages, office supplies; and rents. - 117 -

Tlx© maintenance of terminals is an important item of expense for those companies whose operations require the provision of private wharves, freight, sheds, and passenger depots;; At the smaller ports-, public wharves, at which side-wharfage: charges may be levied on: the ships-using them, are normally adequate. interest;and depreciation charges are a large item of overhead expense for most shipowners. The first will depend, of course; upon the method of financing the purchase of.a ship; the second, upon: the capital cost and the age to which it is considered that a ship may fas usefully operated. Under the Income War Tax Act-. authority is 33) vested in the Minister of National Revenue to allow a deduc• tion from taxable income in respect of depreciation. Six per cent is the rate ordinarily allowed for ships. An extra allowance of thirteen per cent was permitted in the case of ships purchased from the War Assets Corporation^ the extra depreciation to be-taken: only in the fiscal year in which the- ship was-acquired. In addition, depreciation at double the rate normally allowed in respect of ships purchased from the War Assets Corporation:or built in

33 R.S. 1927, c.97, a.5(a); and 19^7, c.63, s.6(l)(n)(ii). - 118 -

Canadian shipyards "between November 10, 194-4, and December 31, 1949, was authorized by orders-in-council. The Canadian Vessel Construction Assistance Act, passed in 1949, extends the depreciation allowance to whatever amount an owner may elect of the capital cost of a vessel on which construction was commenced after January 1, 1949, up; to a maximum of thirty-three and one-third per cent in any taxation year.

Regardless of the depreciation policy a shipowner may adopt for income; taxation purposes, he will usually write off the- capital cost: of a new ship-at a rate of from four to six per cent on the assumption that the vessel will have a useful life of from sixteen years and eight months to twenty-five years. At the end of that time, the ship;; will appear on the books at its estimated scrap value.

Depreciation charges:for ships purchased at inflated prices are a heavy drain on the earnings of a steamship-company. However undesirable it may be. to buy ships at peak prices, steamship lines are nevertheless obliged to furnish adequate accommodation for the traffic offering if they are to retain public goodwill. The major steamship companies in British Columbia found themselves,

34 p 8640, November 10, 1944; P.C. 1449, April 16, 4o. 1946; and P.C: 2487, June 24, 1947. - 119 -

In 194-5, with fleets sorely depleted through government requisition for war service, marine loss, and obsolescence. With no alternative but to acquire new tonnage, they have necessarily burdened themselves for many years with the responsibility of providing extraordinarily large deprec• iation reserves, fable 13, on page 120, presents some examples of prices of vessels built for British Columbia coastal passenger-cargo service, illustrating the relatively high cost of construction after each of the world wars.

Shipping companies are, understandably, loath to disclose the details of their operating costs and, for that reason, particulars of actual cases may not be used in the analysis which follows. However, in resorting to hypothet• ical cases the writer believes.that the example below shows fairly accurately the rise in costs relative to freight rates and fares and the difficulty experienced with a new steamer, built at inflated prices, in showing a profit indeed, in breaking even — on its operations. Steamer A, valued at one million dollars, furnish• ed a weekly passenger and cargo service between Vancouver and Prince Rupert in 1939, making forty-eight trips in the year and laying up for annual overhaul for four weeks. Steamer B, which replaced Steamer A after the second world war, is a new vessel costing three million dollars. Her cargo capacity, four hundred and fifty tons, and her 120 -

Table 13

PRICES OF NINE PASSENGER-CARGO VESSELS BUILT FOR BRITISH COLUMBIA COASTAL SERVICE 1921 - 194-9

YEAR NAME OF GROSS REPORTED PRICE BUILT VESSEL TONNAGE PRICE GROSS

1921 Princess Louise- 4,032 fl,400,000* 1347 1924 Princess Kathleen 5,908 1,280,866* 217 1925 Princess-' Marguerite 5,875 1,258,889* 214 1928 Princess Elaine 2,125 639,539* 301 232 1928 Princess Norah 2,731 633,559* 1930 Princess Elizabeth 5,251 1,128,944* 215 1930 Prince Robert 6,892 2,193,375* 318 1948 Prince George^ 53,812 3,098,000# 533 1949 Princess Marguerite 5,911 4,000,000** 678 Notes: Canada, Report of the Royal Commission to inquire into Railways and Transportation in Canada, 1931-2, Ottawa, King's Printer, 1932, p.26.

% • Disclosed by R. C. Vaughan, C.M.G., Chairman and President, Canadian National Railways, in an address at the launching of the Prince George at Esquimalt, October 6, 1947. ** At the launching of the Princess Marguerite at Govan, May 26, 1948, Captain R. W. McMurray, Managing Director of Canadian Pacific Steamships, Limited, said: "Take the ship which was launched to-day for example; she has been built to replace the original Princess Marguerite, built in 1924, and torpedoed and sunk In 1942. The new ship will have the same tonnage and horsepower as her predecessor, but her cost will be almost exactly four times as much." Allowing for the lower value of the pound sterling in 1948, the price in dollars of the new ship would appear to be in the neighbourhood of four millions. - 121

accommodation for two hundred passengers are about the same as those of her predecessor. She carries on the same schedule with the same size of crew. Comparative daily operating costs for the two ships, each of which was a unit of a fleet of coast steamers operated by the "Coast Passenger and Freighting Company", are shown hereunder.

"COAST PASSENGER AND FREIGHTING COMPANY" VESSEL A VESSEL B 1939 194-9 I $ Running Expenses Wages and overtime 260 600 Fuel 185 - 370 Provisions and stores 145 300 Maintenance and repairs 75 150 Stevedoring 165 250 Insurance 110 330

Total Running Expenses . 940 2,000

Overhead Expenses Management 20 30 Maintenance of terminals 75 100 Interest and depreciation 260 800 Total Daily Costs 1,295 2,930

If steamer A carried an average cargo of three hundred and fifty tons at the 1939 rate of $8.25 a ton,

and two hundred and ninety passengers at the 1939 fare of $24, revenues would balance expenditures for the year's operation of the vessel. That is: - 122 -

Total expenses for 1939: (365 x $1,295) = I 472,675

Total revenues: for 1939: 350 tons-® $8.25 = $2,887.50 x 48 = $ 138,600 290 passengers @ $24 = 334,080 $ 472,680

With the same amount of cargo and same number of passengers carried in Steamer B' at the 1949 level of rates and fares, the results are very different:

Total expenses for 1949: (365 x $2,930) = §1,069,450

Total revenues" for 1949: 350 tons @ $12.50 = $4,375 x 48 a $' 210,000 290 passengers: @ $36.25 = $10,512.50 x 48 = 504,600 | 714,600

Whereas Steamer A, in 1939, broke even^ Steamer B, carrying the equivalent In cargo and passengers in 1949, recorded a loss-of $354,850 (or just over $972 per day). If the foregoing analysis-has a reasonable measure of validity,.it explains how reduced opportunities for the profitable operation of steamers on several of the coast routes are having the effect, of depriving coastal communities of frequent liner service, or requiring govern• ment . subsidization of essential services, and, at the s^ame time, of providing opportunities for cheaper barge operat• ions . - 123 -

CHAPTER 9

COMPETITIVE ELEMENTS IN7COAST TRANSPORTATION

The operators of steamship services in the British-

Columbia coastal trades must necessarily have regard for actual or potential competition from other media of trans• portation by sea, land, and air. Except in the lower main• land and southern Vancouver Island districts of the coast, railway and motor truck transportation have not seriously threatened steamship operations, but on many routes scows and barges are securing cargo and air lines are'attracting passenger traffic that formerly went to the steamship com• panies .

Competition between the steamship owners them• selves, traditionally carried on with vigour, has tended to disappear as strong companies absorbed their weaker rivals In the: struggle for survival. Because few private

Inve s tor sr. after examining the record of British Columbia coastal shipping were prepared to risk the heavy capital investment im ships?, wharves, freight sheds, and passenger terminals needed" for a modern passenger-cargo line, steam• ship operations: have come almost completely under the control of the Canadian Pacific Railway Company. Only Canadian

National Steamships and a few minor companies now remain 124 - outside the Canadian Pacific orbit. The evolution:of control by the Canadian Pacific over a major portion of the coast shipping Industry is:illustrated graphically In Figure 4, on page 125:. The last important clash between the Canadian National and the Canadian Pacific steamship lines took place in 1930, when the government-owned line, inspired by Sir Henry Thornton, endeavoured to compete directly with the Canadian Pacific in the "Tri-City Service" between Vancouver, Victoria, and Seattle. In commenting upon the; unsuccessful venture, the Duff Commission- in: 1931-2 wrote: It is Impossible^ to believe that any public interest was served by this duplication of coastal services. Any success that might-have come to the Canadian National could only have been largely at the^ expense of the Canadian Pacific. The Canadian National was: at some disadvantage in not. having a service of steamships under its own control, but this situation could have been met; had the managements of the two systems-been, willing to enter into a working arrangement. This- is another instance where a willingness to co• operate would have avoided a sacrifice of funds and obviated the heavy losses- which fell upon both systems. 35 Since- 1931, the Canadian;Pacific has had prac• tically a free hand in the steamer trades of Vancouver

35 Canada, Report of the Royal Commission: to inquire into Railways and Transportation in Canada; 1931-2, p.27. - 125 -

Figure 4

CANADIAN PACIFIC RAILWAY

(B.C C.S.) 195Q

UNION STEAMSHIPS 1940

FRANK WATERHOUSE AND •aH •p CO. OF CANADA LTD. •uH PQ 1930 •P %

HOWE SOUND H 1920 NAVIGATION CO. NAVIGATION CO. ALL RED LINE § LINCOLN STEAMSHIP CO. I 1910 BOSCOWITZ STEAMSHIP CO. | ESQUIMALT AND NANAIMO RAILWAY 1900 CANADIAN PACIFIC NAVIGATION CO.

EVOLUTION OF CONTROL OF COAST STEAMSHIP OPERATIONS BY THE CANADIAN PACIFIC RAILWAY - 126 -

Island. Union Steamships-, calling at small communities, logging camps, and canneries- of the coast north of Van• couver furnishes servicesc that supplement, rather than compete with, the mail services .of the railway companies4 steamers to the larger eoast ports. One of the few remain*- ing competitive operations-was eliminated in 1948 when the Canadian Pacific discontinued the run between Vancouver and Prince Rupert. Duplication of services cannot be entirely avoided, for ships> though bound for different final destinations", must necessarily travel up-coast along much the same routes. Schedules can be arranged, never• theless, to permit calls at ports en route to be made on different days of the week. The growth of communities within eighty miles-of Vancouver and their need for improved transportation ser• vice with the metropolis have encouraged the formation since 1945 of several new shipping enterprises-, among them, Gulf Lines, Limited. These aggressive new companies, starting out modestly, though practically, with surplus naval craft, refitted for passengers or cargo, are pro• viding the long-established shipping lines-, particularly Union Steamships, Limited, with serious- competition, whether such companies as Gulf Lines will, in,the long run^ survive and perhaps - expand into major transportation; - 12? - systems will depend upon.their ability to operate effic• iently, their success in retaining the goodwill they have already created, and, it must be admitted, the policy adopted towards them by the Canadian Pacific Railway. Experience of the past would seem to indicate that, sooner or later, the small coast lines gravitate towards the more powerful capital interests. Early In the present century, the threat of rail and highway competition to water transportation services was very real. Steamer operations along the east coast of Vancouver Island between Victoria and Nanaimo came to an end in 1905 after a losing struggle with the Esquimalt.and Nanaimo Railway. On the lower mainland, small freighters engaged in the trade between Vancouver and Fraser River points were forced to withdraw when the Vancouver and Lulu Island Railway was completed in 1903 and the British Colum• bia Electric Railway Company's New Westminster line was opened in 1911. Yet, while railway and motor truck trans• portation succeeded water transportation on several routes in the past, the likelihood that a railroad or highway will be constructed along the coastline from Vancouver to Prince Rupert is exceedingly remote. The shortest rail route from Vancouver to Prince Rupert, by Canadian National via Red Pass Junction, covers more than twice the distance - 128 - of the coast steamer route. Even with the Pacific Great

Eastern Railroad extended to Prince George, the distance by rail between Vancouver and Prince Rupert will be seventy

per cent greater than by steamer. Only a small proportion:

of total coastwise traffic — part of that, say, which

originates in or is destined for the Bulkley Valley region

— will likely he affected by prospective rail competition.

By highways 1, 2, and 16, Prince Rupert can be

reached by automotive transport from Vancouver, but the

route, via and Prince George, is circuitous and long,

and therefore not seriously competitive with the steamer

route.

The possibility exists that the Alaska Highway

may attract potential cruise traffic from the Canadian

Pacific and Canadian National steamship lines. On the

other hand, there is every reason to believe that the road

will develop tourist Interest and that passengers travel•

ling in one direction by bus:or private car will choose to

make the return trip by steamer. Steamship travel may, in

this manner, be stimulated.

A greater threat to steamship operators is

presented by the development of air lines. Scheduled air

services, now available to many of the coast ports, and

non-scheduled services, to others, are offered at fare's

usually only a quarter to a third greater than for steam- - 129 - ship passage. Routes flown hy the air lines on a schedule basis in competition with steamship services include the- following: Canadian Pacific Air Lines Vancouver - Port Hardy - Sandspit - Prince Rupert.

Queen Charlotte Air Lines Vancouver - Nanaimo - Comox. Vancouver - Powell River - Minstrel Island - Alert Bay - Sullivan Bay. Vancouver - Tahsis - Ceepeecee - Chamiss Bay - Zeballos. Trans-Canada Air Lines Vancouver - Victoria - Seattle. United Air Lines Vancouver - Seattle. Flights are made on the longer trips daily, except on Sum- day, and on the shorter routes, several times a day, as traffic conditions warrant. The advantages of air line- transportation lie in the frequency of service and the speed of travel that are normally possible. For these, the passenger is willing to pay a slightly higher fare. For instance, six flights a week are scheduled from Vancouver to Prince Rupert, and four steamer sailings. The trip by air takes five and a quarter hours? by sea, from thirty-seven to forty-two hours, depending upon the route followed. The fare by plane is $44.85; by ship, f36.25. Statistics supplied by the Air Transport Board - 130 - and by th© National Harbours Board provide a rough indic• ation of. the effect of air lines competition with steam• ship services. For the: month of September, 1948, flights between Vancouver and twelve, ports on the British Columbia coast carried 14,791 passengers. During the same month,

173,233 passengers arrived at, or departed from, Vancouver in coastal steamers. Air lines, then, appeared to be taking about eight per cent.of the total coastal passenger traffic.

Just as the air lines are attracting passenger traffic that formerly went by steamer, scows and barges are strong contenders for much of the cargo business. New evidence of the fact is contained in the announcement of

the award to Coastwise Steamship and Barge Company of a contract to transport fifteen thousand tons of liquid caustic and chlorine chemicals annually by barge from

Tacoma to the recently constructed pulp mill of the Columbia ^6 Cellulose Company, near Prince Rupert. ^3 is, the

actual tonnage carried by barges and scows in British

Columbia coast operations is considerably greater tham that

freighted by steamers, and, indeed, the geography of the

coast favours the successful use of unrigged vessels.

36 Harbour and Shipping, October, 1949, p.568. - 131 -

Lying off the southern British Columbia mainland between;40° 19' and 50° 52' north latitude, Vancouver Island provides coastal shipping with sheltered navigable waters from Juan de Puca Strait to Queen Charlotte Strait. Further north, a chain of smaller islands forms sheltered channels to the Alaska boundary, leaving only twenty-seven miles in

Queen Charlotte Sound, eight miles in Milbanke Sound, and

approximately thirty miles in Chatham Sound open to the

ocean^ Between Vancouver and Prince Rupert, eighty-nine

per cent, and between Vancouver and Ocean Falls, ninety-one

per cent of the "" is In water sheltered from

the open seas Thus protected from heavy Pacific seas and

swells, tugboats with scows, barges, and log rafts are able

to compete effectively with self-propelled cargo ships.

The economies of tug and scow operations arise

from the relatively low capital cost of floating equipment,

the small crew required to man the vessels, and the flex•

ibility possible by virtue of the fact that the cargo carrier

is separable-from its propulsion unit. In recent years, the

War Assets Corporation has had for disposal diesel tugs of

four hundred horse-power, suitable for general towing, at

one-fifth of their war-time price to the government of

|125,000. Ninety-foot.wooden scows may be reckoned to cost

about |7,000 each. At such prices, depreciation charges

are not the formidable load that the purchaser of self- - 132 - propelled cargo tonnage must be prepared to carry. Further• more, the simplicity and sturdiness of tugs and scows, and the absence; of auxiliary machinery, help to keep down repair and overhaul costs. A crew of-seven mem— approximately half the number required in a small coasting freighter — is adequate for a tug of the kind referred to, and, as no crew is needed in scows, wages and victualling expense are held to a minimum. Because the tug is relieved of the necessity of remaining in harbour while scows are being loaded or discharged, the crew can be. usefully employed for a greater part of the timer. Having delivered its scow or scows to their destination, a tug, unlike a cargo ship, which is immobilized during the handling of cargo, is free to per• form other assignments.

Compared with ships, barges and scows are less seaworthy and less capable of furnishing fast, regular service. Their usual lack of derricks and winches makes them dependent upon harbour equipment for loading and dis• charging and, in that way, limits the scope of their use• fulness. Their lack of propelling machinery, too, can result in delays while tugs are being sought to shift them from their berths.

There is a similarity between the type of com• petition offered by scow and barge operations to self- propelled ships and by motor trucks to railways, although - 133 - the., parallel should not be carried too far. For one thing, a relatively small investment will put a tug and scow oper• ator in business in the same manner that possession of a vehicle makes it possible for a trucker to ha>ul freight for gain. Then, too, as highways may give access to points not served by railroad, scows can often be taken to places where ships-would find it impossible to handle cargo. It is not unusual, for Instance, for a scow to be run into shallow water or intentionally beached to facilitate cargo handling, whereas, without the aid of lighters, a ship requires a wharf with an ample depth of water alongside.

Again, as the scow operator is not concerned with a number of the rules prescribed for steamship operation, such, for example, as those dealing with loadlines, he enjoys advan• tages much the same as those of the trucker over the rail• road In freedom from strict regulation. Finally, it may be noted that certain classes of commodity lend themselves especially to trucking in land transportation, and to . freighting by scow in water transportation. Here the similar• ities end. British Columbia coasting vessels are, unlike the railways, under no obligation to a controlling authority to maintain unremunerative- services, to submit tariffs for approval, or to refrain; from.discriminating between shippers.

Barges and scows are particularly suited for the carriage of homogeneous commodities shipped in bulk. Cargoes - 134 - of sand and gravel entering Vancouver Harbour from Hillside, the Fraser Banks, and the North Arm,average more than twelve hundred tons daily. Goal is shipped by barge and scow from

Nanaimo and Union Bay; cement, from Bamberton; lime from

Blubber Bay and Fitzhugh Sound. Large covered barges and scows carry more than five hundred tons of newsprint and paper a day to Vancouver from Ocean Falls and Powell River.

Pulp from the mills and concentrates from; the mines of Howe

Sound, as well as lumber and ties from Victoria, Chemainus, and Nanaimo, move to coast destinations in barges and scows.

Refrigerated barges are used for fish cargoes; tank barges, for oil. In exposed waters, particularly off the west coast of Vancouver Island, the hulks of old sailing vessels and naval landing craft are used as log-carrying barges.

Securing return cargoes is as much a problem for the operator of barges and scows as: for the owner of self- propelled eoasters, for the unrigged vessels find employment almost exclusively in bringing bulky raw materials to Indus• trial centres and the ships, in carrying supplies from the cities to outlying camps and communities. The economic development of British Columbia •— urban concentration In the southwest and thinly scattered and often impermanent settlement northward along the coast -- precludes any real success in balancing inward and outward cargoes. One-way

freighting charges must, therefore, cover the expense of a - 135 - round voyage. Covered barges in the newsprint trades are able to secure a proportion of general cargo on their return trips to the paper mill towns. Nevertheless, shippers tend to continue their support of the mail and passenger steamers in order to retain the benefits of the services the regular liners provide.

Apart from general merchandise, trucks, and machinery, outward cargoes carried in barges and scows from the lower mainland include hog fuel, salt, sulphur, and waste paper. Hog fuel, in particular, moves in a consider• able volume to Chemalnus, Powell River, Port Mellon, Wood- fibre, and the Fraser River, more than two hundred and fifty tons, on the average, leaving Vancouver daily.

The competitive advantages of barge and scow operations have led to the displacement of self-propelled coasters from most of the bulk cargo trades around the Gulf of Georgia and to the rise of barge lines as competitors in the general cargo trades of southern British Columbia.

Among dry cargo vessels measuring between 200 and 1,200 net tons, the aggregate tonnage of barges and scows increased by sixty-eight per cent in a twenty year period (1928 to

1948) while the aggregate tonnage of self-propelled freight• ers declined by eighty per cent.„ (See Table 14 on page 136.)

Vancouver Barge Transportation, Limited, operates common carrier services between Vancouver and Victoria, - 136 -

Table 14

CANADIAN MERCHANT VESSELS, OTHER THAN TUGS, OF 200 NET REGISTER TONS AND OVER IN SERVICE ON THE BRITISH COLUMBIA COAST 1928 - 1938 - 1948

1928 1938 1948 NO. TONS NO. TONS NO. TONS

SELF-PROPELLED VESSELS Passenger-cargo 30 31,329 26 38,479 26 36,589 Dry Cargo 27 25,415 17 13,174 9 5,083 Tank 2 505 2 621 5 2,783

59 57,249 45 52,274 40 44,455

SCOWS AND BARGES 200 - 1,200 Tons Dry Cargo 176 52,595 217 65,691 310 88,317 Tank 1 206 7 2,226 9 2,759 Over 1,200 Tons Dry Cargo 12 24,032 14 31,274 8 14,610 Tank - - - - 1 3,824

189 76,833 238 99,191 328 109,510

TOTALS 248 134,082 283 151,465 368. 153,965

Source: Canada, Department of Transport, List of Vessels on the Registry Books of the Dominion of Canada, for the years 1928, 1938, 1948, Ottawa, King's Printer. - 137 -

Figure 5 GROWTH OF THE SCOW AND BARGE FLEET RELATIVE TO THE SELF-PROPELLED FLEET IN BRITISH COLUMBIA COASTING SERVICE 1928 - 1938 - 19^8 (Vessels of 200 Net Reg. Tons and Over, Excluding Tugs)

1 000 TONS 12!

Self-propelled Vessels in Red Scows and Barges in Green

10d—

75H

5CH •

25

- 1928 1938 1948

Source: Canada, Department of Transport, List of Vessels on the Registry Books of the Dominion of Canada, for the years 1928, 1938, 1948, Ottawa, King's Printer. - 138 -

Cowichan Bay, Chemainus, Nanaimo, Courtenay, Gibson's

Landing, Westvlew, and Texada Island, employing scows of from 130 to 450 register tons on a thrice-weekly schedule, receiving cargo for prepaid or collect shipment up to a half hour before sailing time. The company has its own wharves at Vancouver, Victoria, Nanaimo, and Courtenay; at other points it uses the" government wharves.

Special use is made- of unrigged vessels by the railway companies, who employ large "transfer" barges fitted with tracks to ferry railroad freight cars across the Gulf of Georgia and between Vancouver and the Pacific Great

Eastern terminal at Squamish. The use of transfers saves

time and reduces expense by eliminating the handling oper•

ations Involved in the trans-shipment of goods from car

to vessel and again to car. Canadian Pacific transfer

barges operate from Vancouver to Nanoose Bay and Ladysmith?

Canadian National, from Port Mann to Cowichan Bay.

The Canadian List of Shipping shows:more than

nine hundred barges-and scows in service on the British

Columbia coast. (See Table 15 on page 139.) Two-thirds:

of the number are twenty years old and over. Reflecting

the slowed-down industrial activity of the '3"0's, very

little scow construction took place between 1930 and 1939.

The war then brought about renewed building in local yards

and also resulted In the importation of scows from the - 139 -

Table 15

SCOWS AND BARGES OF 10 NET REGISTER TONS AND OVER IN SERVICE ON THE BRITISH COLUMBIA COAST BY AGE GROUPS

(As at September 30, 1949)

NUMBER OF SCOWS AND BARGES AGE 10 to 199 200 to 1,200 Over 1,200 Tons Tons Tons

Less than 10 years 129 117 3

10 to 19 years 23 34 -

20 to 29 years 263 121 1 _ 30 to 39 years 121 48

40 to 49 years 30 13 2

50 years and over 2 1 4

TOTALS 568 334 10

Source: Canada, Department of Transport, List of Shipping, and Supplements 1, 2, and 3, Ottawa, King's Printer, 1949. - 140 -

United States.

The future-development of.the British Columbia scow fleet may well he forecast by the: trend among New York operators to replace wooden with all-welded steel vessels.

According to reports-, steel scows-measuring 120 feet by 32 feet by 9-| feet, built by the-Dravo Corporation for the

Delaware, Lackawanna and Western Railroad Company, cost: less to maintain, have? greater reserve buoyancy, and offer less towing resistance than wooden scows-. 37

37 "Wooden Vessels Replaced by All Welded Steel Craft", Harbour and Shipping, October, 1949, P.575. - 141 -

CHAPTER 10

OPERATING- RESULTS AND GOVERNMENT AID

It la-not: a mis?-statement to say that the history of British Columbia coastal passenger and cargo shipping is an account?of failures: rather than-successes. Company after company has: acquired ships-, endeavoured to operate them profitably, and eventually disposed of them to — for the time being, stronger -- competitors. In recent times, only the Canadian Pacific Railway's British Columbia Coast

Steamship Service has-retained its identity as a: company controlled in Canada-over a-period approaching fifty years of continuous operations^.

Consolidated financial statements made public by

the major steamship companies are singularly uninformative.

In them, results of steamship-operations are usually so

combined with the returns from railway, or-estate, oper•

ations as to be inextricable. Nevertheless, there is ample

evidence that the coast shipping business is not; particularly

lucrative.

For the past three years, the Union Steamship

Company of British Columbia, Limited, whose subsidiaries

include Union Steamships, Limited, and Frank Waterhouse and

Company of Canada, Limited", has operated at a loss ranging - 14:2 - from $51,051 for the year ended January 31, 1949, to $142,984 for the^year ended January 31, 1947. The com• pany' s position at the end of the fiscal year in January, 1949, was such that current assets were only two-thirds of current liabilities an obviously unsound condition.

That the- operations of Canadian National Steam• ships-have also been unprofitable in recent years may he concluded" from statements made in evidence before the Sessional Committee on Railways and Shipping Owned, Oper• ated and Controlled by the Government. On March 29, 1949, Mr. T. H." Cooper, Vice-president and Comptroller of Canadian National Railways;, was asked" what profit and loss there had been with respect to the steamers "Prince George" and "Prince Rupert". Mr. Cooper: I can tell you that. The operation of the Pacific Steamship Company (sic) resulted In a loss of: $137,707. Mr. Fulton: How does that compare in general with the record of previous years? Mr. Cooper: In 1947 the loss was $95,000. The operation of the S.S. Prince Rupert resulted in: a loss: of $167,000. The operation of the S.S. Prince George showed" a profit of $89,000; and the dock at Vancouver resulted in a loss"of $59,000; and, that makes up the net; of $137,000. Mr. Fultonr The only one which showed a profit; was the new ship,* the Prince George?

38 The Union Steamship Company of British Columbia, Limited, Report and Financial Statement for the year ended January 31, 1949. - 143 -

Mr. Cooper: Yes, the new vessel showed, a profit. Mr. Fulton: And the other one is an old" ship? Mr. Cooper: Yes, but it is still doing a pretty fair Job. Mr. Fulton: And might I ask you, Mr. Cooper, when you say the Prince George showed a profit, Is that an operating profit, or does that take; in; the purchase price — is it an over-all return on the Investment in the vessel or just an operating profit? Mr. Cooper: No, it is an operating profit. It includes depreciation but not interest. 39

If interest at four per cent were to have been charged on the investment in the "Prince George", no profit would have been shown on her operation.

Evidence before the Standing Committee on Rail• ways and Shipping in previous years further discloses

Canadian National experience of unprofitable operations.

On March 19, 194-0, for example, Mr. S. J. Hungerford,

President of the Canadian National System, stated, "The

'Prince Charles' and the 'Prince John' were engaged in the

Vancouver - Queen Charlotte Island service, as you know.

That was a highly unprofitable service. We were losing a lot of money, notwithstanding the subsidy (of |12,000 a year). ...We were losing somewhere in- the neighbourhood of f40,000 a year on, that service." 40 And on May 21,

39 Canada, Sessional Committee on Railways- and Shipping, Minutes of Proceedings and Evidence, Tuesday, March 29, 1949, p.94. 4^ Canada, Standing Committee on Railways and Shipping, Minutes of Proceedings and Evidence, March 19, 1940, p.47. - 144 -

1941, Mr. Cooper, asked if the "Prince Robert" and "Prince

David" had ever made any money, replied, "They were not profitable to the railway." ^1

The Canadian Pacific, too, has found that not

all its coast steamship operations were remunerative

undertakings. With revenue from its Vancouver - Ocean

Falls - Prince Rupert service insufficient to cover expenses,

the company in October, 1948, withdrew its steamer from the

route, citing high wages and fuel costs as the two principal ho

factors responsible.

Steamship subsidy statistics also attest to the

fact that a number of coast services would be unable, on

the basis of the revenue traffic they produce, to operate

without financial assistance. For many years, the Canadian

Government has^ contributed pecuniary aid to assure that

essential steamship services would be available to outlying

communities and industries'. Since 1892, when the Department,

of Trade and Commerce undertook the administration of

subsidies and subventions, sums' totalling 5.7 million dol•

lars have been paid in direct assistance to west' coast

M Canada, Standing Committee on Railways and Shipping, Minutes of Proceedings and Evidence, May 21, 1941, p.135.

^2 "Princess Adelaide to End 38 Years of Operation", Vancouver Daily Province, September 16, 1948, p.36'. - 145 - steamship lines. The distribution of this amount is shown, in Table 16 on page 146.

The Steamship Subsidies Stabilization Fund, out of which $1,474,546 was paid in additional subsidies to west coast services in the period from 1942 to 1948, requires a brief explanation. Early In 1942 it became apparent that, with freight rates and passenger fares

"frozen" by the Wartime Prices and Trade Board, subsidies would have to be increased to reimburse contracting com• panies for increased fuel costs, war risk insurance, and war bonuses paid to crews of vessels. Instead of raising the amounts of contractual subsidy payments, the govern• ment provided, by order-in-council 4^, for the establish• ment of a fund to be used to compensate owners for their extra expenditures consequent upon the existence of a state of war. The continued national emergency after the war made necessary the extension of authority to pay additional subsidies, even though war bonuses had, at that time, been:

incorporated in wages. 44 Following the lifting of the ceiling on transportation charges on September 15, 1947,

45 P.O. 5653, July 2, 1942.

44 P.O. 3020, July 25, 1946, and P.O. 2082, June 6, 1947. DISTRIBUTION OF CANADIAN GOVERNMENT SUBSIDIES TO WEST COAST SERVICES 1892 - 1950

1. British Columbia and Mexico 1907-1913 | 307,289

2. Port Essington and Queen Charlotte Islands 1905-1906 500

3. Vancouver and Howe Sound 1903-1932 52,269

4. Vancouver and Northern British Columbia 1896-1947 686,240 Prince Rupert and Queen Charlotte Islands 1909-1947 636,823 Vancouver, Northern British Columbia and H3 Si Queen Charlotte Islands 1947-1950 1,152,000 & 1942-1948 1,135,555 H Subsidies Stabilization Fund 3,610,618 ON

5. Victoria and San Francisco 1892-1925 143,169

6. Victoria and West Coast of Vancouver Island 1902-1950 549,429 1943-1948 217,106 Subsidies Stabilization Fund 766,535

7. Victoria, Nanaimo and Comox 1892-1894 142

8. Victoria, Vancouver and Skagway 1902-1948 702,157 1943-1944 121,885 Subsidies Stabilization Fund 824,042

$5,704,564

Source: Subsidies Division, Canadian Maritime Commission. - 147 -

5 payments from the fund terminated on January 31, 1948. ^

The administration of shipping subsidies in 1947 became the responsibility of a branch of the Canadian Mari• time Commission, whose duty it is: to examine all applications for government aid, to make recommendations for contracts, and to supervise the performance of services for which assis• tance is provided. Before a subsidy is awarded, the public

interest in the proposed service and the ability of the:

applicant to perform are carefully considered. Once the

essentiality and the minimum;requirements of a service are

established, the adequacy of the intended vessel and the

suggested scale of rates and fares are investigated. Finally,

a reasonable subsidy, intended to cover the expected deficit

in furnishing the contractual service, is agreed upon. Oper•

ating results are kept under review and the experience

applied to subsequent renewals of the contract. While the

Commission's officials are guided by a "formula" governing

subsidy awards, of necessity much depends upon, personal

judgment.

Complexities in the administration of subsidies

on the British Columbia coast result from the fact that the

two companies in receipt of government aid operate non-

*5 P.C. 4732, November 19, 1947. - 148 - subsidized as well as subsidized services. Some costs, such, as expenses of management, are common:to ail operations conducted by a company, and yet a portion of these costs must be charged to the subsidized service. The amount char• ged is, in the final analysis, only an intelligent estimate,

and if the proper charge is- in fact exceeded it follows that the subsidy more than: reimburses the contractor for the

costs he actually incurs. He is then able to apply a part

of the grant; to his- unsubsidized, and perhaps competing,

services. Another complexity arises when an unsubsidized

steamer attempts:-to capture the profitable share of traffic

on; a subsidized route, leaving the contracting vessel with

the responsibility of carrying the less remunerative cargo.

Only a system of licensing coasting vessels for specific

trades can correct such a situation.

Subsidy payments to west coast lines over the

past twenty-five years are shown in Table 17, on page 149.

It will be noted that, except on the: Victoria, Vancouver,

and Skagway route, subsidized services have required con•

siderably more financial aid since the second world war

than In pre-war years. Subsidies are, in.fact, indirect

financial aid to residents of the more isolated sections;

of the British Columbia coast. By and large, war has not:

increased the affluence of the Inhabitants of remote commun•

ities to the extent that they can shoulder the full burden - 149 -

Table 17

CANADIAN GOVERNMENT SUBSIDIES FOR WEST COAST SERVICES 1925 - 1950

VICTORIA VICTORIA VANCOUVER VANCOUVER PRINCE RUPERT YEAR VANCOUVER AND WEST COAST AND AND AND VANCOUVER HOWE NORTHERN AND SKAGWAY ISLAND SOUND B.C. Q.C.I.

1925/26 25,000 15,000 5,000 24,800 20, 596 1926/27 25,000 15,000 6,250 31,000 21, 000 1927/28 24,107 15,000 5,000 24,800 21, 000 1928/29 25,000 15,000 5,000 24,800 21, 000 1929/30 25,892 15,000 5,000 24,800 21, 000 1930/31 25,000 15,000 5,000 24,800 21, 000 1931/32 25,000 12,000 4,000 19,640 16, 800 1932/33 12,500 11,250 18,600 15, 447 1933/34 12,500 11,250 18,600 15, 447 1934/35 12,000 10,000 ,18,000 12, 000 1935/36 12,000 10,000 18,000 12, 000 1936/37 12,000 10,000 18,000 12, 000 1937/38 12,000 10,000 18,000 12, 000 1938/39 10,000 10,000 15,000 12, 000 1939/40 10,000 10,000 15,000 12, 000 1940/41 10,000 10,000 15,000 12, 000 1941/42 10,000 10,000 15,000 22, 000 1942/43 10,000 10,000 97,693* 48, 757* 1943/44 131,885* 82,152* 80,714* 73, 929* 1944/45 10,000 48,468* 114,082 69, 659* 1945/46 10,000 52,684* 193, 641* 1946/47 10,000 39,351* 333, 427* 655* 1947/48 10,000 44,452* 759, 000 1948/49 70,000 388, 000 1949/50 60,000 345,

(•* including Stabilization Fund payments)

Source: Subsidies Division, Canadian Maritime Commission. — 150 -

of higher transportation:costs, and consequently the

Canadian Government has been called upon to bear a pro• portionately larger share than formerly. Corresponding situations exist in other countries: in Great Britain, for example, where, before the war, an annual grant of

-&60,000 was adequate for maintaining services in the

Western Highlands and Islands of Scotland, but in 194-9

•L240,000 was required. 4^

46 Fairplay, March 24, 1949, p.760. - 151 -

CHAPTER 11

CONCLUSIONS

Four more or less distinct stages are evident in the development of British Columbia coast steamship trans- . portation. Though the stages overlap, approximate turning points are readily distinguishable. Commencing with an era when the Hudson Bay Company exercised, under a royal charter, an absolute trading monopoly, coast transportation moved with the Fraser River gold rush Into a period of

intensely competitive, small-scale shipping enterprise

carried on by individual1proprietors and partnerships.

There followed, logically, the growth of steamship corpor•

ations — dating from, say, the formation of the Canadian

Pacific Navigation Company — as settlement., industrial

expansion, and rail communication with the rest of the

North American continent increased the flow of water-borne

passenger and cargo traffic. Since 1901, the entry of the

national railway companies into British Columbia shipping

has led to their virtual domination of passenger and cargo

liner services.; In particular, the Canadian Pacific Rail•

way stands out at the half century as the major force in.

coastal steamship operations, with a near-monopoly in most

of the established liner trades. Still for the most part - 152 - in the stage of competitive corporate, enterprise are the sections of the shipping industry concerned with the oper• ation of oil tankers, fish packers, tow boats, and scows and barges.

Traffic is, as one would suspect, heaviest in the regions of the lower mainland and Vancouver Island wherein ninety-six per cent of the coast population is con• centrated. While the main arteries of trade extend from

Vancouver to central and southern Vancouver Island, many settlements, dependent on regular transportation links with the chief distribution centres, are widely scattered along the coast. Industrial operations, especially fish packing, canning, and processing, are often seasonal, and labour is transient. Revenue traffic developed in most remote com• munities would not be enough to justify year-round steamship calls, and only because subsidies are provided are regular services possible.

The tourist trade imparts a pronounced seasonal pattern to passenger traffic on the coast, travel in the months of July and August accounting for approximately one- third of the annual passenger movement. Facilities are taxed during the summer but ships must be laid up for lack of employment, earning nothing, during the rest, of the year.

The utilization of cargo capacity in. ships and unrigged vessels presents an interesting contrast. An ideal - 153 - shipping operation.would provide full cargoes for both outward and inward voyages in order to maximize revenue.

Such a situation is seldom realized. Coastal liners nor• mally freight general merchandise from the large distrib• uting ports and want for return cargoes; scows and barges carry bulk commodities in one direction and go back empty.

Petroleum products, moved in tank ships as well as in; barges, are one-way cargoes. , Despite the fact, that the

steamers obtain a share of fish and paper cargoes, the fish

packers, cans, collapsed crates, and salt, and the newsprint

barges, a certain:amount of general cargo to contribute to

the revenue of round voyages, the problem of unused capacity

has yet found no adequate solution.

Traffic trends, though not an infallible guide

to the future, indicate the continued growth of cargo ship•

ping. Scows and barges, now carrying in the aggregate about

six times as much: dry cargo tonnage as self-propelled ships,

will probably secure an even larger share of future business.

Air lines competition may be partly the cause of the slight

decline of steamship passenger traffic from its wartime

peak, but.future prospects for the steamers are not clouded.

For one thing, the construction of new automobile ferries

is a significant response to the- demand for passenger

facilities to meet modern needs. - 154 -

The greatest problem facing the coastal steamship companies since the second world war has been the sharp rise in the cost of providing service. Operating expenses have more than doubled in a decade. Total running and overhead costs for a new ship may now be: two and a quarter times as much as:for a similar ship in 1939. Revenues have not increased proportionately: on five representative routes the freight rate for shipping a ton. of general mer• chandise averages fifty-seven per cent higher than in 1939; on four representative routes first class passenger fares are up an average of thirty-three per cent In ten years.

Unrigged vessels, operated more cheaply than cargo ships, are making steady inroads into coast shipping.

Many of the bulk cargo trades in which ships formerly par• ticipated — cement, lime, newsprint, for instance — are now served almost exclusively by barges and scows. While the barge and scow fleet expands, the number and tonnage of cargo and passenger-cargo ships shows a steady decline.

Little foresight and long-term economic planning are reflected by the sporadic growth of coast shipping fleets. During the 1930*s, for example, practically no orders were placed for new vessels, In spite of the fact that traffic trends were sloping'upward. New construction is largely governed by current demands for tonnage, and, - 155 -

consequently, there has "been a tendency to build vessels during periods of high costs rather than in times of slack• ened activity when construction is relatively cheap. As a result, operations are too often burdened with unduly high overhead costs. Improvement might well come about through the implementation, justified by the Canadian

Government's interest in subsidized services, of a policy of state encouragement or direction to assure the orderly and timely replacement of outmoded vessels. - 156 -

APPENDIX

PARTICULARS OF THE CHIEF BRITISH COLUMBIA COAST FLEETS OF THE FIRST HALF OF THE TWENTIETH CENTURY

PERIOD OF „.ir_. rt______YEAR CROSS TTrim--_ WTAU SERVICE NME 0F SHIP BUILT LENGTH BEAM T0KKAGE

1929-1936 Border Queen 1913 201.1 41.0 934 (ex ?Mahony) 1934-1943 Border Prince 1919 172.6 30.2 710 (ex Chilkoot) Boseowitz Steamship Company

1899-1905 Barbara Boseowitz 1883 120.0 ' 22.0 270 .4 1905-1909 Venture 1902 153 36.2 812 1908-1911 Vadso (ex Bordeaux) 1881 191.2 28.7 908 1910-1911 Venture 1910 180.4 32.1 1,011 British Columbia Cement Company,, Limited

1918-1924 Matsqui 1911 82.3 21.0 113 1920-1923 Laurel Whelan 1917 240.5 43.9 1,357 23 1920-1939 Teco 1918 117.0 .4 * 194 1924-1935 Shean (ex Caria) 1920 15:0.0 23.8 420 28.2 1929-1945 Island King 1920 165.1 591 (ex Columba, Granit) British Columbia Steamships, Limited

1942- Island Prince 1908 123.5, 28.8 416' (ex Salvor, Leebre) 2 710 1943- Alaska Prince 1919 172.6 30. (ex Border Prince, Chilkoot) - 157 -

PERIOD OF YEAR GROSS SERVICE NAME OF SHIP BUILT LENGTH BEAM TONNAGE

Canadian-Mexican Pacific Steamship Company, Limited 1907-1912 Georgia 1889 335.0 40.2 2,797 (ex Regina Elena, Sikh) 1907-1912 Lonsdale 1889 340.0 41.0 3,171 (ex Ville du Havre)

Canadian National Steamships, Grand Trunk Pacific Steamshi Company, and Canadian Government Mer chant Marine 762 1910-1916 Henrlette 1874/1905 160.0 30.0 1910-1923 Prince Albert 1892 232.0 30.0 1,015 (ex Bruno) 1910- Prince Rupert 1910 306.7 42.2 3,379 1910-1945 Prince George 1910 306.7 42.2" 3,372 29. : 1911-1940 Prince John 1910 185.3 6 905 (ex Amethyst) 1921-1928 Canadian Farmer 1920 251.0 43.6 2,410 2 1921-1929 Canadian Observer 1920 251.0 '43.6 ,410 1921-1929 Canadian Rover 1920 251.0 43.6" 2,422 1924-1929 Canadian Coaster 1921 251.0 43.6 2,422 .4 ,752 1928-1928 Canadian Ranger 1918 400 52.3 5 1925-1940 Prince Charles 1907 241.7 33.1 1,344 (ex St.Margaret, 0hieftain ) 1929-1940 Prince William 1915 177.0 24.0 409 (ex Aktion) 366.4 1930-1931 Prince Henry 1930 57.1 6,893 1931-1931 Prince David 1930 366.4 57.1 6,892 366 1931-1939 Prince Robert - 1930 .4 57.1 6,892 1948- Prince George 1948 350.0 52.0 5,812

Canadian Pacific Railway (B.C , Coast Steamship Service) 113.5 1901-1903 Maude 1872 21.0 175 ,525 1901-1906" Yosemite 1862 282.3 34.8 1 1901-1909 R. P. Rithet 1882 177.0 33.6 1,012 932 1901-1916 Princess Louise 1869 180.0 30.0 (ex: Olympia) 1901-1931 Otter „ 1900 128.0 24.5 366 - 158 -

PERIOD OF -XEAR GROSS SERVICE . NAME OF SHIP BUILT LENGTH BEAM TONNAGE

1901-1901 Islander 1888 240.0 42.0 1,495 27 1901-1905 Danube 1889 215.6' .7 887 1901-1935 Charmer (ex Premier) 1886 200.0 42.0 1,044 1901-1909 Transfer 1893 122.0 24.5 264 1901-1925 Tees, 1893 165.0 26.0 679 1901-1902 Willapa 1882/1889 136.0 22.0 373 (ex ) 1901-1917 Queen City 1894 116.0 27.0 391 1901-1919 Beaver 1898 140.0 28.0 545 1901-1913 Amur 1890 216.0 28.1 907 1901-1919 Princess May 1888 249.0 33.2 1,708 (ex Hating, Nlngchow, Arthur, Cass) 1902- Princess Victoria 1903/1930 300.0 57.6' 3,167 1903-1928 Princess Beatrice 1903 193.4 37.4 1,290 1905-1912 City of Nanaimo 1891 159.0 32.0 821 1905-1914 Joan 1892 176.8 . 30.0 869 ,368 1907-1932 Princess Ena 1907 195.1 38.2 1 1907-1932 Princess Royal 1907 228.0 40.0 1,997 1908-1949 Princess Charlotte 1908 330.0 46.7 3,925 1910-1949 Princess Adelaide 1910 290.5 46.1 1,910 1910- Princess Mary 1910/1914 248.4 40.1 2,155 I9II-I949 Princess Alice 1911 290.6 46.1 1,904 1912-1918 Princess Sophia 1911 245.2 44.1 2,320 1912-1937 Princess Patricia 1902 270.0 32.1 1,158 (ex Queen Alexandra) 232 1913- Princess Maquinna 1913 .5 38.0 1,777 1918-1930 Island Princess 1913 116.2 23.1 339 1921- Princess Louise 1921 317.2 48.1 4,032 1923- Motor Princess 1923 153.0 43.5 1,243 1924- Princess -Kathleen 1924/1947 350.1 60.I 5,908 1925-1942 Princess Marguerite 1925 350.1 60.1 5,875 1926- Nootka 1919 251.3 43.9 2,069 (ex Emperor of Port McNichol, Canadian Adventurer) 1928- Princess Elaine 1928 291.4 48.1 2,027 1928- Princess Norah 1928 250.1 48.1 2,731 1930- Princess El12abeth 1930 353.3 52.1 5,251 1930- Princess Joan 1930 353.3 52.1 5.251 1949- Princess Marguerite 1948 359.5 56.2 5,911 1949- Princess Patricia 1949 359.5 56.2 5,911 - 159 -

PERIOD OF YEAR GROSS SERVIOS NAME OF SHIP BUILT L^{'m fr„ TONNAGE

Coast Steamship Company, Limited and Coast Steamship Company, (1922) Limited 1906-1919 Fingal 1895 85.0 19.1 91 1906-1930 Clansman 1899 82.0 17.2 72 1907-1932 Celtic 1907 89.4 24.5 239 1915-1916' British Columbia 1903 170.1 27.1 557 (ex Onyx) 1916-1937 Coaster 1916 94.0 21.0 149 1924-1937 Matsqui 1911 82.3 21.0 113

Coastwise Steamship and Barge Company, Limited 1913-1924 Amur 1890 216.0 28.1 907 1916-1918 British Columbia 1903 170.1 27.1 557 (ex Onyx) 1916-1918 Henriette 1874/1905 l60.0 30.0 762 1918-1931 Marmion 1893 140.0 24.0 324 1920-1930 Anyox 1917 193.4 39.7 1,267 1922-1946 Griffco (ex El Abeto) 1920 220.0 40.1 1,426 1923-1933 Mogul 1896 310.0 44.0 2,935 (ex Kingtor, Caesar) 1924-1945 Amur (ex J.H.Plummer) 1903 246.4: 36.6 1,643 1929-1937 Bornite 1920 251.0 43.6 2,422 (ex Canadian Rover)

Frank Waterhouse and Company of Canada, Limited

1918- Eastholm 1913 93.0 24.3 197 1918-1929 Westham 1909 85.3 22.0 199 1918-1934 Selkirk 1898 95.6" 24.0 142 1929- Southholm 1919 200.0 32.0 1,029 (ex E.D.Kingsley) 1924-1943 Northholm 1924 150.2 25.2 447 (ex Robert H. Merrick) (ex Arran 1925-1934 Watco Firth) 1921 138.3 23.3 342 1942-1948 Gray (ex Petriana) 1909 182.7 27.9 707 1945- Island King 1920 165.1 28.2 591 (ex Columba, Granit) - 160 -

LENGTH MMK lui^T TS&E PSERv?CEF ™E °F SHIP

Gulf Lines, Limited 1944 107.6 1946- Gulf Wing 17.9 103 1946-1947 Gulf Stream 1915 146.0 22.9 336 (ex HMCS Wolf, Bluewater) 1942 28.0 1948- Gulf Mariner 155.9 609 (ex HMCS Truro)

Imperial Oil Shipping Company, Limited 1898 200.0 32.0 796 1922-1939 Imperial (Impoco) 1926 90.0 19.0 1926- Imperial Namu 131 (ex Marvolite) 376 1926-1934 Fuelite 1909 145.5 27.6 7) (ex Hercules No. 1926 170.0 1927-1939 Nanalmollte 31.2 513 (ex Toedjoe) 400 1938- Imperial Nanaimo 1937 120.0 27.0 (ex Beeceelite) 39.8 1939- Imperial Vancouver 1938 230.0 1,512 (ex Imperial)

KlnRsley Navigation Comoany, Limited 1894 116". 0 27.0 357 1917-1920 Queen City 200.0 1,029 1919-1929 E. D. Kingsley 1919 32.0 1924-1938 Rochelie 1913 241.0 36'. 0 1,487 2,410 1929-1946 Rosebank 1920 251.0 43.6" (ex Canadian Observer) 1921 2,422 1929-1943 Kingsley 251.0 43.6 (ex Canadian COaster)

Mackenzie_ Brothers,, Limited 1895 85.0 19.1 91 1895-1906' Flngal 81.5 1895-1906 Staffa 1893 15.3 51 72 1899-1906 Clansman 1899 82.0 17.2 1906'-1910 762 Henriette 1874/1905 160.0 30.0 1886 2,898 1909-1910 Rupert City 310.3 38.1 (ex Powhatan) - 161 -

PERIOD OF NAME YEAR GROSS SERVICE OF SHIP BUILT LENGTH BEAM I9NNAG3

Northern Steamship Company of Br11iah _Co1umb1a -1914 30.1 1908 Cetriana (ex Norway) 1891 203.0 939 1909 1908-1912 Petriana 182.7 27.9 707 26 1912-1914 British Empire 1902 167.5 .6 576

Lincoln Rogers and Associates (Burrard Steamship Company, Lincoln Steamship Company) .0 1907-1913 Ophir 1907 91.4 24 212 1909-1918 Weatham 1909 85... 3 *2. ^ 199 1910-1918 Selkirk 1898 95.6 24.7 142 1913 -1918 Eastholm ^) 93.0 24.3 197

Terminal Steam Navigation.Company^ Limited 62 101 1902-1910 Defiance . 1897 .0 16.0 .8 1902-1919 Britannia 1902 104 '22.4 326 177 1,012 1909-1917 Baramba (ex R.P.Rithet) 1882 .0 33.6 1914-1920 Ballena (ex Joan) 1892 176.8 30.0 869 1912-1920 Bowena 1891 159.0 32.0 821 (ex City of Nanaimo)

Union.: Steamship Company of British Columbia 23 1890-1900 Cutch 1884 180.0 .0 365 101 101 1891-1920 Comox 1891 .0 18.1 1891-1915 Capilano 1892 120.0 22.2 231 1892-1903 Coquitlam 1892 120.0 22.0 256 1901-1925 Cassiar 1890/1901 120.6 29.0 597 (ex J.R.McDonald) 1905-1936 Camosun 1905 192.7 35.2 1,369 32.1 962 1908-1925 Cowichan 1908 157.1 1910-1943 Cheakamus 1910 145.3 28.1 689 (ex Cheslakee) .1 ,134 1911-1949 Chelohsin 1911 175.5 35 1 1911 -1914 Vadso (ex Bordeaux) 1881 191.2 28.7 908 .4 1,011 1911-1946 Venture .. 1910 180 32.1 1914-1916 Melmore 1892 156.2 25.8 424 22.1 1917-1925 1881 141.8 259 (ex Selma, Santa Cecilia) - 162 -

PERIOD OF _OT„ GROSS SERVICE NAME OF SHIP YEABUILR T IrmmTLENGTI H BEAM TONNAGE

1917-1948 154 22.0 Lady Pam 1383 .0 309 (ex Ghilco, Santa Maria) 1919-1927 Chilliwack 1903 170.7 27.1 557 (ex British Columbia, Onyx) 1920 1920-1949 Capilano . 135.0 26,9 374 .2 1920-1934 Chllkoot 1919 172.6 30 756 1920-1926 32.0 Che am 1891 159.0 821 (ex Bowena, City of Nanaimo) 1923-1936 26.1 Lady Evelyn 1901 189.0 582 (ex Deerhound) .8 1923- Card'ena 1923 226 37.1 1,559 1924- 1924 .1 ,396 Lady Alexandra 225.4 40 1 .0 54 1924-1943 Comox 1924 54 15.5 28 944 1925- Lady Cecilia 1919/1925 219.5 .6 (ex Swindon) 1925- 1919/1925 28.6 950 Lady Cynthia 219.3 (ex Barnstaple) 1926- 1925 1,476 Catala 217.5 37.1 1927- Chllliwack 1917 200.2 30.2 934 (ex Ardgarvel) 21 199 1937- Lady Rose 1937 100.7 .1 (ex Lady Sylvia) 1940- Cassiar 1910 185.3 29.6" 905 (ex Prince John, Amethyst) 1940-1945 1907 .7 ,344 Camosun 241 33.1 1 (ex Prince Charles, St.Margaret, Chieftain) 1946- /1946 235.8 36 Coquitlam 1943 .6 1,833 (ex HMCS Leaside) /1946 235.7 ,835. 1946- Camosun 1943 36.6 1 (ex HMCS St.Thomas) 1946 <2 1 ,336 1946- Chilkoot -X> ^ 36.7 1 /1947 235.7 36 1,837 1947- 1943 .6 (ex HMCS Hespeler)

* * * - 163 -

BIBLIOGRAPHY

Books and Special Articles

1. Bancroft, H. H., History of British Columbia. San Francisco, The History Company, 1887. (The Works of Hubert Howe Bancroft, vol,32.)

2. 3egg, Alexander, History of _BrltlshiColumbia, Toronto, William Briggs, 1894.

3. Boam, H. J. , British Columbia: Its- History, People,. Commerce, Industries, and Re sources," London, Sells, 1912.

4. Bo wen, F. C, History of the Canadian Pacific Line, London, Sampson, Low, Marston and Company, 1929.

5. Brown, N. C., Logging,, - ... Transport at I on, New, York, Wiley, 1936.

6. Cook, James, and King, James, A Voyage to the Pacific Ocean, London:, Strahan, 1784, 3 vols.

7. Evenson, W. T., "Ocean Log Rafts as Constructed in the ", West Coast Lumberman, vol. 5.0, pp. 28,29, July 15, 1935. 8. "G-lbson Rafts Stand Winter Storms and Keep Logs Moving to Sawmills", Forest and Mill, vol.2, pp.1,4, Oct. 15, 1948. 9. Hacking, N. R., Early Maritime History of British Columbia, University of British Columbia, 1934. [Graduating essay for the Degree of Bachelor of Arts in the Department of History.)

10. Hacking, N. R., "Steamboat 'Round the Bend", British Columbia'Historical Quarterly, vol.8, pp.255-280, October, 19447

11. Hacking, N. R., "Steamboatlng on.: the Fraser In the Sixties", British Columbia'Historical Quarterly, vol.10, pp.1-41, January, 1946. - 164 -

12. Hacking, N. R.,"Steamboat -Days, 1870-1883", British Columbia Historical Quarterly, vol.11, op.o*9~-lll, April, 19477

13. Hamilton; J. H., "The Beaver", Western Shores, Vancouver, Progress Publishing Company7 1933, c.10.

14. Hopkins, J. C., ed., Canada - An Encyclopaedia of the Country. Toronto, Linscott, 1898, vol.3, op. 307,308.

15. Howay, F. W., and Scholefield, E. 0. S., British Columbia from the Earliest Times to the Present, Vancouver, Clarke, 19l4, ~4"oTs .

16. Jenkins, R. A. V., "Seattle and Return for 50 Cents", Victoria Daily Times, July 10, 1948, p.3.

17. Kelly, L. V., "B.C. Towboat Industry Built by Skill, Courage", Vancouver Daily Province, March 25, 1948, P.44.

18. Kelly, L. V., "Old Red-head", Vancouver Dally Province Magazine Section; October 23, 19437 p.3.

19. Leiterman, D. S., Trade Unionism in; the Canadian Merchant Navy, University of British Columbia, 1947. (Graduating essay for the Degree of Bachelor of Arts in the Department of Economics, Political Science and Sociology.)

20. Lower, J. A., "The Construction of the Grand Trunk Pacific Railway in British Columbia", British Columbia Historical Quarterly, July, 1946.

21. McKelvie, B. A., Maqulnna the Magnificent, Vancouver, Uhe Vancouver Daily Province, 1946.

22. McLeod, Norman, "British Columbia's Pioneer Navi• gators" , Sea Lore, Vancouver, vol.1, pp.55-57, September, 1935.

23. Mears, E. G. , Maritime Trade of Western United'...States, Stanford University Press, 1935. ' - 165 -

24. Nelson, D., Fort Langley, 1827-1929, A Century'of Settlement, Vancouver, Art, Historical and Scientific Association, 1927.

25. Patton, M. J., "Shipping and Canals", in Shortt, A., and Doughty, A. G., eds., Canada and Its Provinces, Toronto, Glasgow, Brook and Company, 19l4, vol.10.

26. "Retired Inventor States He's Practical Logger", The Dally Colonist, Natural Resources Supplement, Victoria, December 12, 1948, p.4.

27. Stockdill, C. E., "The British Columbia Coastal Service: Some Historical Facts and Figures", Canadian Pacific Staff Bulletin, December 5, 1940.

28. Wright, E. W., ed., Lewis and Dryden's Marine History of the Pacific Northwest, Portland, Lewis and Dryden, 1895.

Government Publications

29. British Columbia, Department of Trade and Industry, Regional Industrial Index of British Columbia, Victoria, 1948.

30. Canada, Annual Reports of the Department of Marine and Fisheries (and succeeding Departments), commencing 1868, Ottawa, King's Printer.

31. Canada, Annual Reports of the National Harbours Board, 1936 to 1948, Ottawa, King's Printer.

32. Canada, British North America Act and Amendments, Ottawa, King's Printer, 1938.

33. Canada, Department of Fisheries, Department•of Transport, List of Vessels on the Registry Books of the Dominion of Canada, annual, Ottawa, King's Printer.

34. Canada, Dominion Bureau of Statistics, Prices and Price Indexes, October, 1949, Ottawa.

35. Canada, Dominion Bureau of Statistics, Shipping Report, annual, Ottawa. - 166 -

Canada, Report of the Royal Commission to Inquire into Railways and Transportation in Canada, 1931-2, Ottawa, King's Printer, 1932.

Canada, Second Report of the Canadian Maritime Commission, Ottawa, King's Printer, 19^97

Canada, Sessional Committee on Railways and Shipping Owned Operated and Controlled by the Government, Minutes of Proceedings and Evidence, annual, Ottawa, King's Printer.

United States of America, United States Maritime Commission, Economic Survey of Coastwise and Inter- ooastal Shipping, March 15, 1939.

Vancouver, Annual Reports of the Harbour Commissioners of Vancouver, 1920 to 1935.

Year Books and Periodicals

A.B.C. British Columbia Lumber Trade Directory, Vancouver, Progress Publishing Company, 19^8.

British Columbia Directory for the years 1882-83, Victoria, Williams, 1882.

British Columbia Journal of Commerce Year Book, annual, Vancouver.

Canadian Navigators' Federation Year Book, annual, Vancouver, 1920 to 1922.

Canadian Merchant Service Guild Year Book, annual, Vancouver, 1923 to 194-7"

The Dally Colonist, Victoria. (Files in the Provin• cial Library, Victoria, B.C.)

Guide to the Province of British Columbia for 1877-8, Victoria, Hibben, 1877.

Harbour and Shipping, monthly, Vancouver. (Files in the Library, University of British Columbia.) - 167 -

49. Henderson's British Columbia Gazetteer and Directory for 1964, Vancouver~Hendei"soirr~1^04. 50. Henderson's Vancouver Directory for 191Q, Vancouver,

Henderson, 1910.

51. Lloyd's Register, annual, London, Lloyd's Register.

52. The Vancouver Daily Province, Vancouver. (Files in the offices of the company, Vancouver.) 53. Western Business and Industry, monthly, Vancouver.