A century of trains through Richmond

Posted Jan 12, 2012 By John Curry

The year 2012 means that it has now been 100 years that trains has been passing through Richmond.

The rail line, opened in 1912, was built as part of the Canadian Northern Railway's main line between Toronto, Ottawa and Montreal. And as such, it was part of an attempt by two of Canada's most famous railroad entrepreneurs to establish a second transcontinental railway system in the country, taking on the Canadian Pacific Railway (CPR).

This attempt by William Mackenzie and Donald Mann, who were both knighted in 1911 for their efforts in the Canadian railway industry and who are now both in the Canadian Railway Hall of Fame, came to financial disaster. Strapped for the need for more money to complete their system and with their British financial sources dried up due to the outbreak of World War One, the pair were forced to transfer ownership of their Canadian Northern Railway to the federal government in November 1916. With this takeover, the federal government owned two railway systems, not only the Canadian Northern Railway but also the Canadian Government Railways, formerly the Intercolonial Railway, which served the Maritimes. In 1918, the government renamed these two systems Canadian National Railways. And in 1922, the Canadian National Railways was established as a corporation with its own Board of Directors.

Add to this mix the Grand Trunk Pacific, a subsidiary of the Grand Trunk Railway which went into receivership in 1919 and was taken over by the federal government.

This situation remained until 1923 when federal legislation amalgamated the Grand Trunk Railway into the new Canadian National Railways.

Thus, in the course of seven years, 1916 to 1923, the federal government came to control an extensive railway system that crossed the country, with only the Canadian Pacific Railway as direct competition. It had done so in order to avert what could have become a major financial crisis. The government had guaranteed the bonds issued by the Canadian Northern Railway and the Grand Trunk Pacific and Canada as a country would have been bankrupt had these railways been forced to close down. Federal ownership and operation was the only solution.

The railway line through Richmond, part of the Canadian Northern Railway system, was part of this ownership turmoil. It had come about when the two railroad entrepreneurs felt forced to expand into eastern Canada as a result of the Grand Trunk Railway's expansion into western Canada where Canadian Northern Railway had its base.

But when Mackenzie and Mann decided to expand into Ontario, there were virtually no independent lines left to acquire and so they had to undertake the costly construction of major trunk lines such as the line through Richmond. This expensive proposition of building lines ultimately led to the bankruptcy of Canadian Northern Railway and its takeover by the federal government.

William Mackenzie and Donald Mann joined forces in Mackenzie, Mann and Company Limited after both had been involved in various entrepreneurial ventures including railway construction. Mackenzie looked after financing their railway ventures while Mann oversaw the construction. They realized that the future of railroading in Canada lay in the West and that's where they turned their attention to take on the powerful Canadian Pacific Railway (CPR).

However, it was only in the late 1890's that they really made headway, opening a line in Manitoba in 1897. This was followed by a rapid expansion, building and acquiring more rail lines, promoted as farmer friendly in contrast to the farmers' view of the CPR.

In 1899, Mackenzie and Mann created Canadian Northern Railway to consolidate all of their railway holdings.

In 1901, Canadian Northern Railway reached Port Arthur, linking Winnipeg to the lakehead, an important destination for the export of prairie products.

With the federal government of Sir Wilfrid Laurier clamouring for a second transcontinental railroad to promote Canada's western development, Mackenzie and Mann stepped forward, with a goal for the Canadian Northern Railway to span the continent.

The Grant Trunk Railway also announced similar plans to expand to the Pacific coast and so the race was on. The folly of railroad overbuilding was about to unfold.

Eventually, thanks to these efforts, Canada would end up with three transcontinental railways but two of them would end up being taken over by the federal government.

The first decade of the 20th century saw Canada's economy boom. Mackenzie was able to find lots of financing overseas, mainly in Britain, to support Canadian Northern Railway's expansion throughout the West.

In 1910, the line through Richmond, connecting Ottawa with Napanee and Toronto, was started, opening in 1912. It was a heady time for Mackenzie and Mann, with both being knighted in 1911 and with them being praised overseas for their enterprising ways, with Mackenzie even being called the "railway king of Canada."

Canadian Northern Railways not only had costly railway construction to cover eastern Canada but building a line through the Rocky Mountains resulted in a massive debt for the company. Mackenzie drove the last spike in Canadian Northern Railway's line to the Pacific in 1915 but by then Canadian Northern Railway was on the precipice of bankruptcy.

The outbreak of the First World War in 1914 dealt a blow to Mackenzie and Mann as their Canadian Northern Railway, already in financial trouble, saw a major source of its funding dry up, with Britain even outlawing the export of capital. In addition, the war halted immigration to the West, rail workers joined the fighting forces and material costs ballooned due to the war effort.

The Grand Trunk Pacific system was similarly on the edge of ruin financially.

A Royal Commission set up in 1916 to examine Canada's railways recommended that Canadian Northern Railway and Grand Trunk Pacific be nationalized. Mackenzie and Mann did receive money from the government for their shares but their debts outweighed these funds.

Were it not for the entrepreneurial drive of these two, Mackenzie and Mann, the railway line through Richmond would not have been built and would not have continued to see the movement of rail traffic even now, 100 years later.

Indeed, it is likely that Mackenzie and Mann passed through Richmond on the train at least once. Mackenzie probably travelled through Richmond on numerous occasions as he went to lobby federal politicians for funding or better rail rates. But in October 1915, Canadian Northern Railway held a grand opening celebration for its newly completed transcontinental route. Members of Parliament and media travelled from Quebec City to Vancouver in a lavishly appointed training, stopping at various cities and towns along the route to toast the completion of this new transcontinental route. The line through Richmond would have been part of the route for this celebration tour. While a successful promotional initiative, this celebratory tour could not allay the railway's ongoing financial troubles which saw the takeover by the national government in 1916.

William Mackenzie was born in 1849 near Peterborough.

He became a teacher but then entered the world of business as the owner of a saw mill and grist mill. He became involved in the railway business as a contractor, working on projects in Ontario, British Columbia, Maine and what became Saskatchewan and Alberta between 1874 and 1891.

Joining up with Donald Mann as Mackenzie Mann & Company Limited, they eventually formed the Canadian Northern Railway Company in 1899. Mackenzie served as president from 1902 until it was taken over by the federal government.

The Canadian Railway Hall of Fame calls Sir William Mackenzie the financial wizard of the Canadian Northern Railway.

But he was involved in much more than the world of railways.

He owned the Toronto Street Railway which eventually became the Toronto Transit Commission. He was involved in gas, electric and telephone utilities as well as coal mining, whaling and timber. He also owned La Presse, then the largest newspaper in Canada.

Even after the takeover of Canadian Northern Railway by the federal government, Mackenzie continued his enterprising ways, investing in radio, telephone and rubber tire companies. He died in 1923 at the age of 74.

Donald Mann was born in Acton, Ontario in 1853, studying as a Methodist minister before entering the lumber business.

He contracted with the Canadian Pacific Railway from 1879 to 1885.

He then partnered with William Mackenzie on developing a railway system which eventually became the Canadian Northern Railway. While Mackenzie concentrated on financing this railway, Mann focused on railway construction.

Indeed, the Canadian Railway Hall of Fame refers to Sir Donald Mann as the "master builder" of the Canadian Northern Railway.

After the federal government took over the Canadian Northern Railway in 1917, Mann spent his remaining years promoting mining projects. He died in November, 1934 at the age of 81.

Besides his railway enterprises, he is also known for donating the Mann Cup which is the trophy awarded to the senior men's lacrosse champions of Canada. He made the donation in 1910.

john.curry@metroland.com