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The History of Canadian Railroads
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In its earliest years Canadian railroading was influenced by British rail practice, but after a decade of experience with North American economic and geographic realities, American practice began a fairly rapid rise to dominance that has remained to the present. The first transborder line was completed between Portland, Maine, and Montreal in 1852; it was known as the Atlantic and St. Lawrence Railroad in the three northern New England states and the St. Lawrence and Atlantic in Quebec. At the behest of the Maine promoters of this line a gauge of 5 feet, 6 inches, was adopted to exclude Boston and its standard-gauge railroads from participation. Once the railroad opened, the international company was sold to and extended by a British company, the Grand Trunk Railway, which ultimately constructed a line from Rivière-du-Loup on the St. Lawrence estuary below Quebec city to Sarnia on the St. Clair River at the Ontario-Michigan frontier. The Grand Trunk infrastructure was much more costly than that found on any other rail line in North America following British practice but was laid out on the Maine gauge of 5 feet, 6 inches, which became the first widely adopted Canadian gauge. Only later when the rail crossings of the international boundary became numerous and the generally unsatisfactory example of the Grand Trunk was fully understood were the broad Canadian lines narrowed to the standard gauge.

The Canadian Shield posed a serious obstacle to transcontinental planning. British Columbia, then a British crown colony, was concerned about the impact of an influx of gold prospectors from the United States, and it sought to join the Canadian confederation. In 1871 Prime Minister John A. Macdonald offered British Columbia a railroad connection with the Canadian network within 10 years. An agreement was reached with little knowledge of where and how such a rail line could be built. A Canadian Pacific Railway survey was begun under the direction of Sanford Fleming, former chief engineer of the Intercolonial Railway in the Maritime Provinces. There was some question as to the best route across the Canadian Shield from Callender in eastern Ontario (then the head of steel production in eastern Canada) to the edge of the prairies in eastern Manitoba, but simplicity of construction favoured the northern shore of Lake Superior. In the prairies the choice seemed to rest on which pass through the Rockies would be used. Fleming strongly favoured Yellowhead Pass near present-day Jasper, but the rail builders chose instead Kicking Horse Pass west of Calgary because it would place the railroad much closer to the 49th parallel, thus shielding business in western Canada from competition with American railroads. The final question to be resolved by the Fleming Survey was the route to be employed across the Coast Ranges of British Columbia. Five routes ranging between the Fraser River valley in the south and the Skeena River near the 54th parallel in the north were considered, but the Fraser gorge route to the mouth of that river was selected. By 1885, when the Canadian Pacific Railway was completed by a joining of tracks at Craigellachie in British Columbia, Burrard Inlet, north ofthe Fraser mouth, was selected as a new port and was named for George Vancouver, the British naval captain who conducted the most detailed survey of this coast.

The Canadian Pacific Railway tied the recently formed dominion together but operated on such a thin market that its charges were high and its network of lines limited. In Manitoba at the turn of the 20th century wheat farmers sought more rail lines, and the province encouraged ramification of the lines with land grants. By the end of the first decade of the century one granger road, the Canadian Northern Railway, promoted a line from Montreal to Winnipeg and then, along with its network of prairie railroads, a second rail route to the Pacific coast, using Yellowhead Pass. This second transcontinental line was finished during World War I, though wartime inflation led to bankruptcy for its promoters.

In the first decade of the 20th century a third transcontinental line was advanced rapidly through a large government subsidy. A proposal was made to construct a rail line from Moncton, N.B., near the ports of Halifax and Saint John, passing through mainly timbered land to the south bank of the St. Lawrence River at Levis opposite Quebec city. From there, the National Transcontinental Railway crossed the Canadian Shield to Winnipeg. There the project was joined to a line of the Grand Trunk. The Grand Trunk Pacific Railway beginning at Winnipeg passed through the fertile belt of the prairies to Edmonton, continuing thence to Yellowhead Pass and across central British Columbia to a totally new port on Kaien Island in Canada just south of the Alaska Panhandle, which was named Prince Rupert. Unfortunately the addition of two new transcontinentals within little more than a year in a time of great inflation placed both concerns in bankruptcy and led to their reversion to public ownership as the Canadian National Railways in 1918.

Since then, there have been further demands for rail lines in Canada, mostly to gain access to heavy raw materials. Manitoba shaped a new port at Churchill on Hudson Bay at the end of the 1920s. Lines from the north shore of the Gulf of St. Lawrence were pushed into Labrador to reach iron deposits in the 1950s. Access to lead-zinc deposits near Great Slave Lake brought a "railway to resources" at Hay River in the Northwest Territory. British Columbia took over an initially private company, the Pacific Great Eastern Railway, and shaped it into the British Columbia Railway. Even Canadian Pacific has reflected this increasing focus on resource flows. In 1989 it opened the longest tunnel in the Western Hemisphere, just over nine miles, under Rogers Pass in the Selkirk Range of British Columbia. This reflects the turnabout in rail flows in Canada, where transpacific shipping has overtaken transatlantic routes. The steep grades in Rogers Pass required huge horsepower in helper (pusher) engines. By tunneling beneath Mount Macdonald, the transit of the Selkirks was flattened to just under 1 percent.

 

Canadian Pacific Ltd.

Formerly (1881-1971) The CANADIAN PACIFIC RAILWAY COMPANY, a privately owned company that operates one of Canada's two transcontinental railroad systems. The company was established to complete a transcontinental railroad that the government had begun under the agreement by which British Columbia entered the confederation in 1871. The main line from Montreal to Port Moody (a Vancouver suburb) was completed in 1885. Later the company absorbed other railroads, including several in the United States.

For much of the company's history, most of its owners lived outside Canada, but this began to change after World War II as more Canadians began to invest in the company. By the late 20th century, about two-thirds of the voting rights were held in Canada.

Canadian Pacific initially received a land grant of 25,000,000 acres (10,000,000 hectares). Over the years it acquired assets in mining and smelting and in timber. In 1956 it set out to develop these assets, establishing subsidiaries in oil and gas, minerals, fertilizers, food products, forest products, real estate, hotels, finance, trucking, telecommunications, shipping lines, and airlines. These assets were centralized in a holding company, Canadian Pacific Investments Ltd., in 1962, and the parent company was renamed Canadian Pacific Ltd. in 1971. In 1980 Canadian Pacific Investments Ltd. became Canadian Pacific Enterprises Ltd. It sold its airline in 1987.

By the late 20th century railroad activities accounted for only a small part of the company's net earnings. Rail freight tonnage was largely in minerals, manufactured products, and grain. Canadian Pacific's passenger services were taken over in 1978 by the crown corporation VIA Rail Canada.

 

Canadian National Railway Company

A corporation created by the Canadian government in 1918 to operate a number of nationalized railroads (including the old Grand Trunk lines, the Intercolonial Railway, the National Transcontinental Railway, and the Canadian Northern Railway) as one of Canada's two transcontinental railroad systems. Headquarters are in Montreal.

In its early years Canadian National engaged in a fierce competitive struggle with the privately owned Canadian Pacific Ltd. This ended with the Canadian National-Canadian Pacific Act in 1933, which directed the railways to cooperate in seeking economies and eliminating duplication of services. In 1978 Canadian National's passenger services were taken over by VIA Rail Canada, a crown corporation set up to operate all Canadian passenger services except commuter services. In 1995 the government privatized the company.

Canadian National's transcontinental line runs across Canada from several east-coast cities to Vancouver and Prince Rupert, B.C. The company also owns a chain of hotels, the CN Tower in Toronto, trucking companies, ferry lines, and telecommunications services.

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