Canadian Northern Railway

Canadian Northern Railway (CNoR) was a major Canadian railway system created in 1899 by railway entrepreneurs Sir William Mackenzie and Sir Donald Mann. It grew from a collection of independent branch lines in Manitoba and the prairie provinces into a transcontinental network linking central Canada, the western provinces, and the Pacific coast. At its greatest extent immediately before its absorption into Canadian National Railway, the system had a main line running from Quebec City to Vancouver through Ottawa, Winnipeg, and Edmonton, together with extensive branch and subsidiary lines in Manitoba, Saskatchewan, Alberta, Ontario, Quebec, Nova Scotia, Cape Breton Island, Minnesota, and Vancouver Island. The company emerged partly as a response to the dominance of Canadian Pacific Railway. Its early network relied on the acquisition, consolidation, and completion of smaller railways, many of which had been sponsored by provincial or federal governments as alternatives to the CPR monopoly. The company’s first major strategic achievement was the completion in 1901 of a route from Winnipeg to Port Arthur–Fort William on Lake Superior, modern Thunder Bay. This gave prairie grain access to Great Lakes shipping and connected western producers with eastern markets. CNoR also extended northward through Manitoba and Saskatchewan, eventually reaching The Pas, while building or acquiring lines in eastern Canada. During the first decade of the twentieth century, CNoR expanded toward Edmonton and then west through the Rocky Mountains to British Columbia. The western construction program was expensive and often duplicated routes being developed by the Grand Trunk Pacific Railway. In British Columbia, difficult terrain, river crossings, tunnels, and steep mountain construction substantially increased costs. The company also built the Mount Royal Tunnel to reach central Montreal and entered the trans-Atlantic passenger business through the Royal Line, operated by the Canadian Northern Steamship Company. These projects broadened the company’s ambitions but added to its financial burden. CNoR completed its transcontinental railway in January 1915, when the last spike was driven near Basque, British Columbia. Montreal–Vancouver passenger and freight services began later that year. The achievement came as the company was already carrying heavy debt and facing high construction costs. Wartime traffic did not produce sufficient returns because Canadian Pacific retained much of the profitable business. By 1917 the federal government had effectively taken control, and Mackenzie and Mann resigned from the board in 1918. CNoR operations were subsequently coordinated with the government-owned Canadian Government Railways under the Canadian National Railway name. The two systems formally ceased to exist as separate corporate entities when Parliament completed the incorporation of Canadian National Railways in 1923. Much of the former CNoR infrastructure remains in use within the modern CN network, although many branch lines were later abandoned or transferred to short-line operators.

Canadian Northern Railway developed from a group of local and regional railways built in Manitoba during the late nineteenth century. These lines were created in an environment dominated by Canadian Pacific Railway, whose federally supported transcontinental system had a powerful position in western Canada. Manitoba governments encouraged competing routes, while the Northern Pacific Railway also expanded northward from the United States. In 1888, Northern Pacific and the Manitoba government formed the Northern Pacific and Manitoba Railway Company, which operated lines from the American border to Winnipeg and west toward Portage la Prairie, Morris, and Brandon. CNoR later acquired much of this infrastructure, including the Winnipeg station. In January 1896, William Mackenzie and Donald Mann took control of the financially troubled Lake Manitoba Railway and Canal Company. They expanded north into Manitoba’s Interlake region, west and east of Winnipeg, south toward the United States border, and eastward toward Ontario. On January 13, 1899, the Canadian Northern Railway was established to consolidate the companies and charters controlled by the two partners. Its early growth was based on a pragmatic combination of new construction, acquisitions, and completion of unfinished or bankrupt railway projects. The first major step toward a national system was the construction of a line from Winnipeg to Port Arthur–Fort William on Lake Superior. Completed on December 30, 1901, the route gave prairie grain a connection to Great Lakes shipping and enabled eastern Canadian goods to move west. By 1902, the company had assembled approximately 1,900 kilometres of continuous and profitable track across the prairie region. It also pursued northern expansion, first reaching Swan River and then extending through Manitoba and what later became Saskatchewan. Parliamentary pressure in 1907 encouraged the company to continue toward Hudson Bay. The line reached The Pas by 1910, but CNoR did not complete the section from The Pas to Churchill; that route was finished after the system had become part of CN. CNoR reached Edmonton in 1905. It later resumed westward construction, reaching Stony Plain by 1907 before a financial crisis interrupted the project. When construction restarted in 1910, the company altered its route to avoid excessive interaction with the Grand Trunk Pacific line. The western extension crossed the Rockies and continued through British Columbia to the Vancouver region. Construction was costly because the railway often had to use less advantageous sides of major rivers and build through difficult canyon and mountain terrain. At Hells Gate in 1913, blasting for the railway caused a major landslide in the Fraser River. The obstruction damaged salmon migration, and the ecological effects persisted until later fishway construction. The company also expanded in eastern Canada. It acquired or built lines in Quebec, Ontario, Nova Scotia, Cape Breton Island, and other regions. The Mount Royal Tunnel project enabled a direct approach to Montreal and formed an important part of the company’s eastern main line. In 1910, CNoR entered ocean transportation through the Canadian Northern Steamship Company, operating two former Egyptian Mail Steamship Company vessels as Royal Edward and Royal George. Both were requisitioned as troopships during the First World War; Royal Edward was sunk by a German submarine in 1915 while carrying troops toward Gallipoli. Plans for a trans-Pacific service did not proceed. CNoR’s final transcontinental link was completed on January 23, 1915, at Basque, British Columbia. Montreal–Vancouver freight and passenger operations began six months later. The achievement did not resolve the company’s financial problems. Construction through the Rockies and British Columbia, the Mount Royal Tunnel, duplicated routes being developed by other railway companies, and the acquisition and maintenance of a geographically dispersed network imposed heavy costs. The profitable prairie lines could not generate enough income to support the less productive portions of the system, while Canadian Pacific captured much of the wartime traffic. By 1917, CNoR was unable to meet its obligations without government assistance. The federal government became the majority shareholder and assumed effective control. On September 6, 1918, Mackenzie and Mann resigned as directors and a government-appointed board took over. CNoR executive David Blyth Hanna and his colleagues then managed both CNoR and the federally owned Canadian Government Railways. A December 1918 order placed the two systems under the Canadian National Railway operating name. They remained separate corporations until Parliament completed their formal incorporation into Canadian National Railways on January 20, 1923. Although the CNoR corporate identity disappeared, important parts of its main lines, including the Mount Royal Tunnel, the Yellowhead route to Vancouver, and major Ontario and Quebec corridors, continued within the CN system.

1. 1923Formal incorporation into Canadian National Railways

   CNoR and Canadian Government Railways were legally consolidated into the national railway system.

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2. 1918Government-appointed management takes control

   The founders resigned and the federal government coordinated CNoR operations with Canadian Government Railways.

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3. 1915Transcontinental railway is completed

   The last spike was driven in British Columbia and Montreal–Vancouver service commenced later in the year.

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4. 1912Mount Royal Tunnel construction begins

   CNoR began building a double-track route through Mount Royal to reach Montreal more directly.

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5. 1910The Pas line is completed

   The company completed its northern Manitoba extension to The Pas.

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6. 1905Edmonton is reached

   CNoR extended its western prairie network to Edmonton.

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7. 1901Winnipeg–Port Arthur connection opens

   The completed line connected prairie rail traffic with Lake Superior shipping at Port Arthur–Fort William.

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8. 1899Canadian Northern Railway is established

   Railway companies controlled by Mackenzie and Mann were consolidated into CNoR.

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9. 1896Mackenzie and Mann take control of Lake Manitoba Railway

   The two railway entrepreneurs acquired control of the financially troubled Lake Manitoba Railway and Canal Company and began expanding its network.

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A privately operated, government-supported competitor to Canadian Pacific Railway that sought to create an alternative national transportation network connecting prairie producers, eastern Canadian markets, and Pacific ports.

• Prairie and Lake Superior rail networkFreight and passenger railway1901

  CNoR’s central western system connected Winnipeg and other prairie points with Port Arthur–Fort William on Lake Superior. The route was strategically important because it linked western grain production with Great Lakes transport and eastern Canadian markets. It incorporated acquired and newly built lines across Manitoba and Ontario.

• Transcontinental main lineIntercity railway1915

  The transcontinental route linked Quebec City and Vancouver through Ottawa, Winnipeg, and Edmonton. It crossed the Canadian Rockies and difficult British Columbia terrain, allowing CNoR to offer a national alternative to Canadian Pacific. Passenger and freight service began after completion in 1915.

• Northern Manitoba lineRegional railway1910

  CNoR developed a northern route through Manitoba and Saskatchewan, reaching The Pas in 1910. The company intended to continue toward Hudson Bay, but the section to Churchill was completed only after the railway became part of CN.

• Royal LineTrans-Atlantic passenger shipping1910

  Through the Canadian Northern Steamship Company, CNoR operated Royal Edward and Royal George on North Atlantic routes between Britain, Montreal, and Halifax. Both ships entered wartime service during the First World War; Royal Edward was sunk in 1915 and Royal George was later sold.

• 1914Grand Beach resort development

  Manitoba

  CNoR acquired land on Lake Winnipeg and developed a resort that included the Grand Beach Hotel.

  Outcome. The resort later passed to the Canadian government and the hotel was eventually demolished.

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• 1911Port Mann and Vancouver expansion

  British Columbia

  CNoR developed Port Mann on the Fraser River as a western operating centre and planned connections to Vancouver and the Fraser River delta.

  Outcome. The western infrastructure supported completion of the transcontinental route, although construction costs contributed to the company’s financial weakness.

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• 1900Prairie network expansion

  Manitoba · Saskatchewan · Alberta

  CNoR consolidated and extended branch lines across the prairie provinces to create a continuous network feeding its Lake Superior route and later its western main line.

  Outcome. The network became a substantial regional system and formed the base of the eventual transcontinental railway.

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• 1923Merge into Canadian National RailwaysM&A

  The federal government sought to simplify the financing and operation of CNoR and other government-controlled railway assets.

  What changed. Parliament incorporated CNoR and Canadian Government Railways into Canadian National Railways.

  Aftermath. The CNoR corporate entity ceased to exist, while substantial parts of its infrastructure continued under CN.

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• 1917Accept federal controlStrategy

  Heavy construction costs, debt, weak returns from some regions, and competition for wartime traffic threatened the company’s solvency.

  What changed. CNoR obtained government assistance, with the federal government becoming the majority shareholder and assuming effective control.

  Aftermath. The company’s management was replaced and its operations were coordinated with Canadian Government Railways before the 1923 national railway merger.

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• 1910Enter the trans-Atlantic passenger businessProduct launch

  CNoR sought to extend its transportation offering beyond railway routes and participate in immigration and passenger traffic across the North Atlantic.

  What changed. It created the Canadian Northern Steamship Company and operated two vessels under the Royal Line brand.

  Aftermath. The ships were requisitioned during the First World War; Royal Edward was sunk in 1915 and Royal George was sold in 1916.

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• 1901Build a Winnipeg–Lake Superior routeStrategy

  CNoR sought to challenge Canadian Pacific and give prairie producers an alternative outlet for grain and other traffic.

  What changed. The company combined existing lines and new construction to reach Port Arthur–Fort William on Lake Superior.

  Aftermath. The route became the foundation of CNoR’s western network and its connection to eastern markets.

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• 1923Canadian Northern Railway is formally absorbed into Canadian National Railways

  Parliament completed the corporate consolidation of CNoR and Canadian Government Railways into Canadian National Railways.

  M&A
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• 1918Mackenzie and Mann leave the board

  The company’s founders resigned as directors and were replaced by a government-appointed board.

  Leadership change
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• 1918CNoR and Canadian Government Railways are operated under the CNR name

  A Privy Council order coordinated the two railway systems under the Canadian National Railway name.

  M&A
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• 1917Federal government assumes effective control

  Financial distress led the federal government to provide assistance and become the railway’s controlling shareholder.

  Leadership changeRegulation
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• 1915Canadian Northern Railway completes transcontinental route

  The final spike was driven in British Columbia, followed by the start of Montreal–Vancouver service.

  Product launch
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• 1913Hells Gate landslide damages Fraser River salmon runs

  Railway blasting in British Columbia triggered a landslide that obstructed the Fraser River and severely affected salmon migration.

  Other
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• 1910CNoR establishes Royal Line steamship service

  The company entered the North Atlantic passenger business through the Canadian Northern Steamship Company.

  Product launch
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• 1905CNoR reaches Edmonton

  The railway reached Edmonton as Alberta became a Canadian province.

  Product generation
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• 1901Winnipeg–Port Arthur line is completed

  CNoR completed its first major strategic connection between the prairies and Lake Superior.

  Product launch
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• 1899Canadian Northern Railway is incorporated

  Railway companies controlled by Mackenzie and Mann were consolidated into the Canadian Northern Railway.

  Other
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1. Canadian Northern Railway
2. Canadian Northern Railway Company map, 1906
3. Canadian Rail, May–June 1961