Retired President and ETR historian Murray A. Elder has written a multi-part history of the Essex Terminal Railway. Parts 2 through 21 follow:
by Murray A. Elder
(Issue 3)
In 1850, the Welland Canal permitted vessel drafts of 9’ and enabled much larger vessels to reach Detroit and Windsor. It took stagecoaches two and one-half days to travel from Detroit to Buffalo. The fee: $14.00, ferries included. Chicago to New York City took four days. Canada West (Ontario) had a population of 952,000. This setting encouraged the concept of expanded rail transportation.. Railways were new and all of Eastern Canada had only 66 miles of track that were operated by short lines using wood fired locomotives. When they ran out of fuel they were often restocked by passengers and crew who cut trees along the tracks. Amherstburg, a community of some importance, had about 1,000 people and boasted of 20 saloons. It was a busy port shipping hardwood, potash, salt pork, wheat and whiskey. The latter came from McLeods Distillery which is now Seagram’s, at Gordon.
In December 1853, the first train of the Grand Trunk Railway operated between the village of Windsor (pop. 750) and London. The Grand Trunk immediately requested legislation be passed for continued construction between Toronto and Montreal. (The Montreal & Kingston Railway and the Kingston and Toronto Railway legislation authorizing construction had been repealed.)
In 1854, the telegraph arrived and the Canadian Reciprocity Treaty (free trade) with the U.S. opened the door and trade doubled immediately. Machinery could now be imported for small manufacturing. This same year the Great Western Railway completed its line from the suspension bridge at Niagara to Windsor. The line was built to English standards by U.S. contractors and cost $66,000 per mile. (Today the cost of ties and rail in place would be over $500,000 per mile). When the first two passenger trains arrived with six cars each, carrying 1,200 people the civic leaders and the military of Detroit and Windsor celebrated and a cannon was fired. Train passengers continued by boat to the Port of Sarnia.
By July, thousands of immigrants were pouring in from Boston, New York and Philadelphia through Buffalo, across the Canadian land bridge to Detroit and Chicago. Unfortunately among these people was a group of German immigrants who arrived in Windsor with cholera causing the Great Western Railway station to became a temporary hospital. The railway also enabled others to come to Windsor and a large group know as the "Railroad French" who relocated from Lower Canada (Quebec).
You may wonder about the commodities hauled at that time. Here is an example taken from records of December 31, 1855, when the Michigan Central Railroad transferred goods to the Great Western Railway:
This was an era when cabinet ministers often served as railway executives. Many M.P.’s obtained charters for themselves and their friends, which of course helped special interest groups engaged in areas of construction, legal, investment and finance. Land sales and railway construction were notoriously more profitable than running them.
In 1856, passenger ferries appeared on the Detroit River. This same year it was announced that Canada's currency would change from pounds to dollars. Rail travel through Canada now took 30 hours between Chicago and New York.
In 1857 the village of Windsor had become a town of about 2,000 people and the newly built All Saints Anglican Church near the present City Hall was opened. Underwater cable was laid providing telegraph service between Canada and the U.S., dispensing with youths transporting written messages by boat between Windsor and Detroit.
The financial crash in Europe impacted Canadian railways. The stock promoters had been far too optimistic promising huge profits. Railways had been over sold and had also over borrowed. Insufficient revenues and disgruntled shareholders were the inevitable result. Reductions in equipment and track maintenance were made in order to pay dividends and construction costs. The failure of many of the new railways could be traced to these causes.
The average speed of trains was 25 M.P.H. and time marched on.
In 1858 Canada abolished imprisonment for debt other than by fraud and decimal coinage replaced the use of English pounds. This year also saw the start of the business known as "Hiram Walker." The company later organized the town of Walkerville, founded a dairy, foundry, needed support companies, and utilized the local production of grain. His live stock farm employed enough people to care for 750 to 1,000 hogs at a time. The Grand Trunk Railway reached Sarnia and it was no longer necessary for rail passengers to travel by boat from Windsor.
In Ontario of 1860 there was 2,000 miles of track. The vigorous construction of new rail trackage came to a halt. Railways were successfully competing with ships for passengers and freight. The problems of the day were iron rails that cracked in cold weather, snow, and maintenance of gauge. English built locomotives, which lacked bogies (small steering wheels at the front of steam engines), were unsuited to rough roadbeds and sharp curves.
The gauge at that time varied, English standard being 66 ½", but some companies used 42" or the U.S. gauge of 56 ½" (now the North American standard gauge). English standard was allegedly more expensive but required less maintenance. Reasons for the differing gauge are interesting, for example: the St Lawrence & Atlantic Railway (Portland, Maine to Montreal) used English standard to prevent traffic from being diverted to Boston, which was a rival port served by railroads using the U.S. standard gauge.
The English owned and controlled GTR had received both Imperial and Canadian government financial guarantees, but by 1860 it was virtually bankrupt. The Canadian government obtained a judgment against the railway, a questionable victory. A.T. Galt speaking on behalf of the Government said, "I am in the position of the man who had the good luck to win an elephant." This railway eventually became the CNR.
By 1861 the Town of Windsor had 2,501 people (Detroit 50,000) and as the principal railway terminus it tended to concentrate the population near the station. Businesses and professions moved from Amherstburg to Windsor. You could now take a train from Windsor to Hamilton in just 7 hours leaving at 7:45 a.m. This new mobility was very popular and weekend excursions were available to Niagara Falls for $3.00 per person vs. the regular fare of $14.00.
As rail trackage grew the railway companies expanded in other ways. The GWR purchased the three rail Suspension Bridge on the Niagara frontier. This permitted them to handle cars of broad as well as standard gauge. By 1866 the GWR had three rail track to London and Windsor and connections with the Michigan Central in the west and the New York Central Railroad in the east.
In 1867 the GWR reached from Sarnia to Port Erie. It was a broad gauge track and amazingly was narrowed five years later to the standard gauge of 56 ½" in one weekend in November. This same year they also started railcar-ferry transfers at the foot of Glengarry Avenue.
After February of 1869, the monopoly the Great Western Railway enjoyed in the Windsor-Detroit area was about to end with the completion of the Erie & Niagara Extension (the name changed to Canada Southern Railway in 1870). It ran from Fort Erie to Amherstburg to a point opposite Mooretown on the St. Clair River. This company collected $400,000 from municipalities wanting rail service along the way, sold $1,500,000 of shares, and sold $900,000 of first mortgage bonds. The objective was to monopolize east-west U.S. traffic that had been the mainstay of the GWR
The financing of railways was a continuing problem. The Governments of the Canadas (Upper and Lower) provided subsidies to railways and in 1882, this function was taken over by the Dominion Government. A grant of $3,200 per mile was provided in the four original provinces and later extended to the West where land, instead of money, was granted. The difficulties led promoters at times to stretch the truth a bit. One railway received $400,000 in grants and raised $500,000 in England in the form of bonds. The prospectus stated "company capacity was taxed to the limit," it was - they owned 2 engines, 1 passenger car, 2 box cars, 15 flat cars and 1 snow plow.
The first sleeping car was introduced by the Great Western Railway in 1870 as the Canada Southern Railway, Niagara to Amherstburg (Gordon), was nearing completion. This opened up the interior of Essex County, Tilbury to Amherstburg. The CSR was buying ties and materials and employing local construction labour. Twenty-five years later Essex County was cleared of timber.
Windsor was now the largest community in this part of Ontario with a population of 4,253.
In 1877 the fastest run on record between St. Thomas and Amherstburg was made by a CSR train powered by a wood burning locomotive. With one stop for water, it traveled 111 miles in 109 minutes.
To its everlasting regret, the Grand Trunk Railway turned down a government invitation to build a railway to the West Coast in 1880. But the challenge was accepted by the Canadian Pacific Railway. This same year Hiram Walker constructed the Lake Erie & Detroit River Railroad to serve south Essex.
Railways existing in 1882 opposed the construction of the CPR in southwestern Ontario calling it "extravagant and unnecessary" and further accused CPR of being enabled to buy public money to compete with a private concern. It should be noted that the GTR. was the largest taxpayer in Canada, and was probably the largest recipient of government assistance. At this same time the Great Western Railway had been suffering serious losses from competition with the CSR Their efforts to sell the GWR to the government had failed and the only alternative was a merger with the Grand Trunk Railway
In 1883, Windsor became the chief Detroit River crossing for the CSR, a blow to Amherstburg, and a deterrent to future growth there. The Amherstburg crossing was abandoned due to river ice that had created winter operating problems.
The CPR (the Ontario & Quebec Railway ) reached Windsor in 1890. With partners, they helped establish the Windsor Salt Company, and of course gained the rail traffic involved in getting this commodity to markets throughout the country (the present CBC-TV station is located on this site). Large railway companies kept buying the smaller ones so the CSR; G.T.R.; and CPR became the major railways in southwestern Ontario. Walkerville (formerly Walkertown) became incorporated with 1,100 people. This year also saw the beginning of the decline of dependence on the sailing ships as they were replaced by steam powered boats and gasoline engines.
The major events of 1891 was the completion of the first Sarnia to Port Huron railway tunnel, built by the GTR and the death of Sir John A. MacDonald.
The Wabash Railroad secured running rights over the GTR line between Detroit and Niagara Falls in 1898. The Norfolk Southern Railway uses these rights today and serves the Ford Talbotville plant.
In 1899, Hiram Walker died.
Canada of 1900 now had 17,657 miles of railway, 15,000 miles of which had been built in the last 30 years. The subject of much debate and study was 1) whether a tunnel or a bridge was the answer to winter ice problems on the Detroit River - a bridge was priced at $10,000,000 and 2) should the ultimate solution be located at Amherstburg or Windsor.
The gathering of information and data 75 to 100 years after the fact is a daunting but interesting undertaking. Our ancestors and predecessors were remarkable people. As the old century ended and the new began, our world was changing. Canada was growing, the population had reached 5,371,315 by 1901. The majority of Canadians were still living in rural settings. Agricultural job opportunities consumed about 40% of those in the labour force. Non-agricultural hourly workers earned $375 per year and salaried, supervisory, or white-collar workers could expect $484 per year. Sailboats in freight and passenger service were decreasing in number. Time was becoming important so boats with steam and internal combustion engines were now used to tow eight to ten sailing vessels against the current up the Detroit River. Henry Ford was using the same technology to power wagons.
The last of the line haul railways, CPR, had arrived in Windsor in 1890. Business was now intent upon extending their "east-west" traffic potential, the American railroads wanted Canadian business and shorter routes, and the Canadians sought U.S. business and routes. A small group of people in Amherstburg, Sandwich and Windsor recognized the importance of rail to the growth of their communities as that mode offered so much more than ships and wagons. They proposed a railroad that would parallel the Detroit River, a "north-south" connection to all other existing railways in Windsor. They were aggressively seeking a railway company, any company. Discussions had been held prior to 1898, with the Lake Erie & Detroit River Railway, owned by Hiram Walker, and the Flint & Pere Marquette Railroad (successor in 1903 to ownership of the L.E. & D.R.R.), and later with the principals of the Canadian Bridge Company which had been established in Walkerville in 1900. These early enthusiasts had secured the passage of a Special Act of Parliament authorizing the formation just such a railway.
This then was the genesis of the Essex Terminal Railway. An Act to incorporate the Essex Terminal Railway Company was assented to on the 15th of May 1902, 2 Edward VII, Chapter 62. Provisional Directors were John A. Auld, Franklin A. Hough of the Town of Amherstburg, former Mayor Ernest Girardot, Ralph Loveland, John Gowie-Watson of the Town of Sandwich, and Dr. Sidney Arthur King, of the City of Windsor.
It contained the usual words, "Whereas a petition has been presented praying that it be enacted as hereinafter set forth, and it is expedient to grant the prayer of the said petition: Therefore His Majesty, by and with the advice and consent of the Senate and the House of Commons of Canada, as follows:…" and continued with twelve provisions. Among them the head office to be in Amherstburg, limiting directors to not less than five nor more than seven, specifying the gauge of 4’ 8 ½", permitting the construction of trackage in or near the Town of Walkerville to a point in or near the Town of Amherstburg, and permitting the issuance of securities to the extent of $25,000 per mile, but, only in proportion to the length of railway constructed or under contract to be constructed, and two years in which to commence construction.
Formidable objectives at that time. The Company was given the right to enter into agreements with the Grand Trunk, the Lake Erie & Detroit River Railway, the Canadian Pacific, the Flint & Pere Marquette, and the Canada Southern railways. Significantly, on July 18, 1904 the Special Act was amended and F.C. McMath, President, Willard Pope, Chief Engineer, B.S. Colburn, Secretary Treasurer, George F. Porter, and Charles F. Doherty of Walkerville became Directors. They were all officials of the Canadian Bridge Company. Now the struggle to capitalize, build the trackage, and buy equipment began
Let me backtrack just a bit in order to explain a little more about the Canadian Bridge Company / ETR partnership. The Detroit Bridge & Iron Works Company had been awarded the construction contract for the Grand Trunk’s Victoria Bridge over the St. Lawrence River at Montreal in 1896. It was completed in 1898. Mr. Francis C. McMath, an official with Detroit Bridge & Iron Works, had secured the work by convincing the Grand Trunk Railway they should carry their bridge components from Detroit to Montreal free of charge as railway materials (On Company Service or O.C.S.). In 1898, the Detroit Bridge Company was purchased by American Bridge Company. Mr. McMath, not wishing to become part of that large organization, began looking at further opportunities for bridge building in Canada and purchased 33.6 acres of land in Walkerville from Hiram Walker. This was the formation of the Canadian Bridge Company. Perhaps Mr. McMath’s choice of name was influenced by the fact that American Bridge Co. provided 39% of the required capital. The Canadian Bridge Company appears to have negotiated a blanket contract for railway bridges from Winnipeg to Prince Rupert. This market then dictated the need for a rail connection from Canadian Bridge Company to the Grand Trunk Railway* and the existing rail charter provided a ready solution to the problem.
In 1903 the Wabash Railroad secured running rights from the G.T.R. through Ontario to Buffalo. The Pere Marquette Railway completed the acquisition of the Lake Erie & Detroit River Railway from Hiram Walker. Competition was ever present and the PMR, as the new owner of the LE.& DR, was attempting to purchase right of way for a company to be known as the P.M. Beltline from the Saginaw Salt Company (present location of CBC-TV on Riverside Drive) to Walkerville. Options on proposed rights of way for PMR, owned by Canadian Bridge Co., were not renewed and the plan failed to materialize.
With time running out by January 1906, the ETR directors ordered a stock book be opened for subscriptions for stock in the Company. They further ordered plans and surveys prepared and application be made to the Parliament of Canada for an act to amend the Acts of Incorporation extending the time for commencement and completion, and to permit the head office to be moved from Amherstburg to Walkerville (on Walker Road).
A month later $32,500 of capital stock was subscribed at $100 per share, and the first shareholders meeting was called for the 26th of February 1906, at the Canadian Bridge Company Ltd. They approved a general plan to lay trackage from the Grand Trunk Railway* east of Walkerville to a point on the line of the Canada Southern Railway* south of Windsor (point A, past point B to the P.C.T.C. on the enclosed map). In September of 1906, the shareholders approved a contract for the construction of this first section of track.
In January 1910, the directors considered and approved a general plan to extend the ETR’s line from the Canada Southern Railway to a point in the town of Amherstburg. This of course required another Act of Parliament amending the original Acts. The capital limit was increased to $400,000 and the bonding powers to $40,000 per mile of single track and $10,000 per mile of double track. By July the new powers of the Act were in place and plans for trackage from the Canada Southern to the Canadian Salt Company in the town of Sandwich and a branch track to the City of Windsor’s factory reserve were approved. A contract for $100,000 of ETR Stock and $208,000 in bonds was issued and secured by a mortgage on the ETR. The contractor was the Canadian Construction Company of New Jersey which may have been owned by Mr. McMath of Canadian Bridge Co. The nine miles of trackage were completed and the payments formalized in June of 1912 (points C to D - the Factory Branch, and points B to E on the map).
In March of 1913 a small parcel of land (Wellington Street Bridge) was sold and conveyed to the Detroit River Tunnel Company for $3,120. This permitted the construction of the railway tunnel entry built by the CSR
The negotiations to secure right of way and interchange facilities was often complicated and the minutes of meetings give only the barest of detail. Such negotiations with the CPR in 1914 resulted in the ETR granting long term running rights over parts of its’ track to CPR which resulted in some considerable expense due to delays experienced by ETR. The right of way for ETR in Ojibway was acquired with a proviso that the land revert to the Canadian Steel Corporation when it ceased to be used for railway purposes.
In 1915, Mr. McMath became president of the ETR. Salaries paid to the president and general manager were $1,000 and $1,800 per annum. The ETR had grown during the last two years and now issued $60,000 in bonds to pay for grading trestles, ties, rail, frogs, ballast and $2,072.30 for locomotives. This provided for the mainline to the northern limit of Ojibway, and the Windsor Factory Branch some 8,080 feet of track. The trust company was to sell the bonds at the best price but not less than 90% of par value plus accrued interest.
At the shareholders meeting of December 1917, the president reported that the construction of trackage from Ojibway to the quarries in Amherstburg (points G to H on the map) had commenced and would serve Bunner-Mond Company. The estimated cost was $425,000. In late 1917, fifty Hart Convertible Cars were ordered at a cost of $146,000 or $2,920 each and six flat cars at $8,400. Two Mogul locomotives were ordered from Montreal Locomotive Works for $78,000 or $39,000 each. This same meeting approved membership in the Canadian Rail Association. An engine house was approved at a cost of $16,000 and a yard for Ojibway at $30,000. Authorized Capital was increased from $400,000 to $1,500,000.
If you recall from Part 6 in last month’s newsletter, Mr. Francis C. McMath was the first president during E.T.R.’s formative years and there are still stories of his management. One in particular, was a letter to the roadmaster regarding progress on the track west of Dougall Road. He had inquired "why the hell the track had not been completed yet?" The scribbled response was "because the farmer hasn’t moved his G.. D… manure piles."
December of 1918, saw the vice president and general manager receive a raise to $2,000 per annum and Mr. John Holzhauser was appointed treasurer at $480 per annum. In January 1923, the general manager received an additional raise of $500 per annum and Mr. L.A. Paddock was elected President of the ETR. Mr. McMath became a director and remained through 1937.
Insurance claims of the day took the form of the following: a freight claim in 1924 confirms that theft or a leaky hopper car may have been a problem. The Company agreed to pay $2,000 to Auto Specialties Ltd. for an alleged loss of pig iron from freight cars. Another claim alleged a farmer lost a load of hay while crossing the railway tracks at Howard Avenue. Farmers often complained of horses hoofs catching in the tracks - the railway usually suggested they slow down. An accident involving a bus occurred on Howard Avenue on May 15, 1925. Details are sketchy, but it was necessary for the railway to engage legal assistance to defend itself. The verdict in one claim went against the Company and was appealed. Thirteen other claims from 28 people represented by seven law firms, and ranging in size to $50,000 each remained. A ceiling on a settlement with the claimants was approved by the ETR board of directors at a figure not to exceed $4,500. Settlement of all claims occurred in late 1926.
During 1925, Ford City (which became East Windsor in 1929 and Windsor in 1935) and Ford Motor Company reached agreement with the ETR to relocate the rail right-of-way and trackage, which had existed since 1907 east of Drouillard Road. The ETR would retain all seniority and rights it then possessed. (Seniority is gained by the first owner and thus is important at level crossings). This was advantageous to Ford Motor Company which gained usage of former railway lands for plant expansion and paid for a large part of the cost of trackage relocation. The new track extended to George Avenue. All streets and lanes (common on farm properties) were to be closed with the exception of Drouillard, Central, and George Avenues. The continued site development south of the GTW. and west of Pillette Road would also be facilitated. It was agreed by the parties that George Avenue would be reconstructed and remain as a level crossing until 1930, and no other type of crossing would be built other than a municipally owned subway.
In 1926, Brunner Mond (which became Allied Chemical and later General Chemical) negotiated agreements with the ETR and the Township which permitted them to quarry the limestone under the ETR right-of-way and the Second Concession of the Indian Stone Quarry Reserve, at Quarries near Amherstburg. The track and the road were diverted for a number of years and then rebuilt in their original location several years later.
Financing railway construction is always complicated and even with a well financed corporate parent it is not always easy. U.S. Steel had earlier dictated the building of certain track extensions by their subsidiary, Canadian Steel (formerly the Detroit Bridge and Canadian Bridge Companies), and had provided the financing.
By 1926, their treasury department was pressing the ETR for payment of $235,000 plus interest in notes held by that corporation. The board of the ETR offered to pay one note of $50,000 and proposed the balance of $185,000 be paid in three annual installments in the future, the last scheduled for January 1, 1929. The ETR argument for the schedule was strong in that the Amherstburg line had been built in 1917 at the instance of the U.S. Steel, and there had been practically no business over the line due to the discontinuance of Canadian Steel’s development at Ojibway. Therefore, it was reasoned by the ETR that no interest should be required. U.S. Steel agreed - it no doubt helped to have the U.S. Steel Chairman, Judge E.H. Gary, on the ETR board. The old notes were canceled and new notes were prepared bearing 6% interest on maturity. Incidentally, this is the same Judge Gary for whom Gary, Indiana, is named.
At this same board meeting the construction of an office was proposed and the purchase of a 30' x 100' lot on Lincoln Road at the E.T.R. for $1,500 was approved. A 28’ x 50’ office building (1601 Lincoln) was discussed: it was to be of one story, designed for the addition of a second story and it was to cost $11,000. Mr. Fred Woodall, of Woodall Construction Co., was a young brick layer on this job.
In 1927 the ETR bought a piece of land north of Giles Boulevard for a siding into the Hupp Automobile Company for $1,500. This was one of the early auto manufacturers whom many old timers recall testing their cars on the City streets. This company produced the "Huppmobile," the "Royal Windsor," the "Regal," and the "E.M.F. 30" (Everett, Metzger, and Flanders) and the "Flanders 20," later to become the "Studebaker."
In late 1928 the Township of Sandwich West made application to the Board of Railway Commissioners to open Ouellette Avenue, Windsor’s main street, as a level crossing over the CPR and the ETR Both railways opposed the application, and in April the following year the application was denied.
Our growing community continued to seek new rail crossings as farms were sold. Many farm crossings became streets and some were never dedicated to the City. A City request for one crossing of the main ETR line at Parent Avenue (behind the Caboto Club) was denied by the Board of Railway Commissioners. Level crossings and increased traffic were becoming troublesome for this railway built through the quiet farmlands of Essex County.
How was the ETR rail business in the early 30's?
| Loaded Cars | Ave.Per Day* | Tons handled | |
|---|---|---|---|
| 1930 | 29,388 | 96 | 749,338 |
| 1931 | 19,714 | 65 | 500,043 |
| 1932 | 14,656 | 48 | 384,935 |
| 1933 | 13,770 | 45 | |
| 1934 | 17,755 | 58 | |
| 1935 | 22,338 | 73 | |
| 1936 | 21,420 | 70 |
*six days/week
There have been some inquiries regarding the sources I’ve been using for history of the ETR and other railways. They are varied and some information has been gathered over a long period of time. Most of the information for this article came from minutes and other records of the Company which are not available for public scrutiny. A list of some other sources will be provided in the next newsletter.
The Depression, also known as the "dirty thirties," was difficult for the ETR and it’s employees.
In April 1931, Mr. William Woollatt ETR vice president and a long time employee retired. Mr. S.E. McGorman was elected to that position.
When the First National Bank closed in Detroit on February 11, 1933, the ETR had $27,503 of interline settlements on deposit. The loss created red ink that year. The Recon-struction and Finance Corporation later loaned the bank trustees $83,000,000 and the ETR recovered 50% of its’ balance and an additional 20% the following year, it appears some time later they may have recovered a further 20%. In April 1933, a banking resolution in favour of the National Bank of Detroit was approved by the board of directors (First Chicago NBD Bank, Canada, formerly NBD Bank, Canada, has been banker to the Company since 1983).
Mr. J. Kovinsky of Windsor purchased land on the Detroit River north of the Pittsburgh Coal dock in Sandwich and became a valued customer, one the ETR continues to serve today under the name of "K-Scrap."
In January 1937, ETR president, John W. Seens died. Ford Motor Company was reported ready to make a $5,000,000 capital expenditure on the plants in Windsor served by the ETR. (While the minutes are silent on the outcome it appears they went ahead. This still remains to be confirmed by my research.)
An unusual and mysterious special meeting of the board of directors was called for February of 1937, to be held in New York City, but it was canceled for lack of a quorum. A special meeting of the board was then held in Walkerville in March, and Mr. F.C. McMath tendered his resignation as a Director after 31 years with the Company. Mr. F.H. Kester was elected as new President of the ETR.
September 1, 1937, a special meeting of ETR shareholders was held in Windsor. All the directors elected at the previous annual meeting had submitted resignations effective with the close of business that day (this is normal when a change of ownership is about to be made). Mr. L.A. Forsyth, holder of the majority of proxies, chaired the meeting. He and Mr. M.W. McDonald, were representatives of the Dominion Coal and Steel Corporation, of Montreal. They were among those elected by shareholders to the board, and Mr. Forsyth became President of the ETR. Two of the former directors, Messrs. Krester and Holzhauser, were also reelected. The shares of Canadian Steel Corporation and thus ETR were acquired from U.S. Steel Corporation by Dominion Coal and Steel, and control removed from Pittsburgh to Montreal. The seven provisional directors all resigned at the next meeting. Three new Directors (of the seven) were re-elected and Mr. A. Cross became the President. The next meeting of the board was held in Montreal. Financial assignments necessary to complete the purchase from U.S. Steel, were authorized and executed.
The policy of the new owners seemed clearly to be one of funneling all available funds into the parent company for investment management. Strict spending guidelines were instituted and a very tight control for the ETR was the order of the day. Board meetings were not regularly scheduled and those held recorded only brief and necessary financial and legal details.
The following is heresay, but seems to conform with the existing documentation. The Hon. Mitchell Hepburn was premier of Ontario from 1934 to 1942. He was reportedly a quick witted, humourous and eloquent, seat-of-the-pants campaigner. It is alleged that while campaigning late in the Depression, he like all politicians, was promising new jobs - 1,200 of them. This involved the cancellation of some Town of Ojibway debt. He was reelected, and sought the jobs, only to learn that the Dosco purchase of Ojibway had been facilitated and the promised jobs were those existing at Canadian Bridge, Canadian Steel Corporation, and the ETR.
During the Second World War, the ETR handled the shipment of war production from many plants, Ford (trucks), General Motors (machine guns), and Canadian Steel. The latter company built 2,750 horse power triple-expansion marine engines; fabricated steel for freighters, produced sixty-nine 65’ steel tugs. They were moved to Ojibway and fitted them out on the dock. Three ocean going tugs of 260 tons, 111’ in length were also built in Ojibway and two auxiliary tankers of 740 tons, 179’ in length. Canadian Steel also built 34,000 Universal Carriers (traces of the test track continue to exist in Ojibway), most of which were shipped to Canadian forces overseas.
In November 1947, Mr. A. Cross, President of the ETR, resigned and Mr. C.B. Lang was appointed to that office. The Pere Marquette Railroad was merged with the Chesapeake & Ohio Railway Company.
To illustrate the Dosco management approval style, on January 30,1948, a Board meeting was held in Montreal and the purchase of a blacksmith block ($400), a weed sprayer ($800), and equipment to service diesels ($3,300) sanctioned. Most meetings were held in Montreal but some meetings were held in Walkerville by as few as two members with a proxy.
The audit fees, one of the ongoing sizable expenditures for any company, were almost minuscule. In 1948, $450 and 1949, $595.
On December 31,1949, Mr. C.B. Lang resigned and Mr. L.A. Forsyth was elected President. Construction of a personnel building at 1610 Lincoln Road (the present Freight and Yard Office building) was approved at $10,500.
During the 1950's the Essex Terminal Railway continued to operate as a small part of a very large company (Dominion Coal and Steel). Directed largely from Montreal, board meetings were held as required for the conducting of associated corporate affairs in Walkerville, Sydney, Montreal and New York.
Diesel locomotives were gaining in popularity. Steam units were retired with increasing frequency - many as scrap. The first diesel (ETR #101) was an Alco of 660 HP built by Montreal Locomotive Works and bought when declared surplus in Montreal by the federal government. It arrived in Windsor in 1946.
From meeting minutes, we can gain some insight into the activity of the Company. In 1951, expenses approved were as follows: (one) 800 HP GMD locomotive (ETR #102:1) for $114,000; (one) power tamper with tools at $30,000; additional yard trackage at $10,000 and (one) automatic oil burner at $750. The month of May saw Mr. St.Clair Ryley named General Manager, and in June a $5,000 expenditure provided 1,000' of track for Brunner Mond. Morton Salt Company of Chicago, parent of the Canadian Salt Company bought 500 acres of land in Ojibway.
In February 1952, $235,800 of expenditures were approved. This included (two) 100 ton diesel locomotives (ETR # 103 & #104) at $210,000 and (one) caboose for $3,400.
In July of 1955, a new pension plan for employees was approved and implemented (see "Ask Virginia", Rail & River Review Issue #1).
At a meeting in Montreal in autumn of 1956, one new pushcart for the Maintenance of Way department was approved at $225.
On October 19, 1956 the ETR sold mineral rights in Ojibway under its tracks to the Ojibway Development Company (Morton Salt). This was in conjunction with the purchase of 1,400 acres comprising the balance of Town of Ojibway.
At the beginning of the new year of 1957, Mr. L.A. Forsyth Q.C. died after a short illness. He had been president of the Dominion Coal and Steel Corporation Limited, and the ETR since 1937. Mr. C.B. Lang took over that position. In the spring, expenditures of $49,340 were approved. Most of the money, $45,000, was used for repairs to the River Canard Bridge.
Audit fees of $685 were paid for 1958, and like salaries and wages of that year this seems like a pittance today. The release and discharge of the ETR trust deed covering the first mortgage gold bonds due in July 1942, were executed by the Trustee that September. Repayment had taken many years.
Another change of officers was noted in February 1959, as Mr. A.L. Fairley was elected president of the ETR. About this same time, A.V. Roe, an English company, became the parent of Dosco.
The year 1960, was the last year in which a steam locomotive was operated in normal service on the ETR. Ole locomotive #9 was retired and is presently in St. Thomas where a small group of eager volunteers is rebuilding the unit and anticipates having it operational in soon (for more information contact Mr. Donald F. Broadbear of the Southern Ontario Locomotive Restoration Society).
A grant of mineral rights was made to Allied Chemical Company (successor to Brunner Mond) under the ETR right-of-way near Amherstburg under the condition that minerals must be extracted 800' or more beneath the ETR properties. The volume of business received from Allied Chemical by the ETR was $156,000 in 1959, and was a factor in the consideration.
By this time the parent company of Dosco and the ETR was now Hawker Siddley Canada Ltd.
In 1964, Mr. A.L. Fairley, Jr. retired as president and director of ETR in March, Mr. T.J. Emmert (a former president of Ford Canada) assumed the presidency of Dosco, and Mr. J. E. Clubb became president of the ETR.
A special general meeting of shareholders was held in Montreal on November 17, 1964. Four gentlemen were present by invitation - three from Chicago and one from Windsor. The formalities required in a corporate purchase i.e., the transfer of shares were completed, and Morton Salt Industries of Canada, Limited became the new owner of the ETR with Daniel Peterkin, Jr. elected as president. Control of the Company now moved to Chicago. Board and annual meetings were henceforth held in Windsor and several prominent local businessmen joined the board.
The Essex Terminal Railway board of directors met in Windsor on January 3, 1967 and elected me to the office of Vice President. Formerly a resident of Windsor, I was living in Buffalo, N.Y. at the time.
Morton’s business interests and investment in Windsor had grown markedly beyond the production of salt with the purchase of 2,200 acres largely comprising the Town of Ojibway, and the ETR. Morton, by virtue of this investment, had a keen interest in the development of the greater Windsor area. It was felt that one executive could best coordinate their non-salt activities.
The combined companies had many excellent employees with years of experience, but previous owners had severely limited initiative and investment. Equipment was old or non-existent, ties were softwood, and much of the rail 80# per foot or less.
The strengths of each company were reviewed and it was with some difficulty that supervisors were persuaded that the concerns of ETR, the largest company, were now closely tied to Ojibway, and the struggling marine terminal. Supervisors of each unit were encouraged to cooperate and enhance the operations of the other two companies. This resulted in a round of decisions that increased supervisory responsibilities, and provided work of an expanded nature for many of the ETR employees whose knowledge, skills and equipment were of inestimable help. The Maintenance of Way employees and their union were perhaps the most helpful and flexible and this led to five day work weeks, not always the case previously.
In the Freight Office a new freight accounting system was under consideration. The procedure had been to write each railcar number manually about 26 times on various documents. This provided ample opportunity for errors that in turn delayed cars and freight settlements. ETR accounting advisors recommended a new system which reduced the opportunity for error at once by about half. At this time the second floor of the personnel building was being adapted for a new freight office - it had been unfinished and used for signal equipment storage.
These activities brought other changes. Morton Terminal sought more package freight business from steamship lines with offices in Montreal and Toronto. These accounts strongly advocated dredging of the slip and an extension for the number one berth.
The navigation season was about to open and 1,200 tons of cargo was scheduled for loading onto the first saltwater vessel of that year. Other cargo was being received which included tobacco - 1,176 cases and 190 hogsheads (750 lb. wooden barrels), engines, canned goods, onions and 250 tons of navy beans. 500 to 600 tons of Portuguese tomato paste was inbound as was 9,480 tons of Japanese steel.
The 25 ton capacity gantry crane and the mobile crane were inspected prior to the first ship arrival and as a result major repairs made. We purchased a small bulldozer and proceeded to level debris brought from the Detroit riots and used for required land fill south of the terminal. Easements were granted and natural gas service for the terminal was secured. Agreements of any kind take time to negotiate and often raise complicated issues. Two such agreements were consummated, at that time, one with Romeo Machine Shop to service and repair vessels at Morton Terminal, and a second with Seaway Forwarding (stevedores operating primarily in Sarnia), subject to their obtaining new equipment. The north wall of the slip required tie-backs to help contain the wall and installation scheduled for 1968.
All of this was under way when "DISASTER" struck. In August, a sudden windstorm occurred during the night with 80 MPH gusts. These winds blew our 25 ton gantry crane (a whirley) along 800' of crane track and when it reached the end it toppled it over a tangled mass of metal.
The year 1968 started off well with a high level of car loadings for the Essex Terminal Railway. Payroll work, which had been sub-contracted, was taken over by the ETR office staff.
At Morton Terminal, as Morterm was then known, Green Giant and Heinz were planning increased exports through Windsor. The L.C.B.O. (Liquor Control Board of Ontario) were concerned with our security as they had lost 30 barrels of gin in Montreal and 1,000 bottles of gin in Toronto within a short distance of the discharge point. We however, attracted the business. Our first five ships of the season carried 4,500 tons of tomato paste, wines and liquor. At the same time 120,000 cases of canned goods were received for export. A 110 ton mobile crane was purchased and delivered from New Brunswick after rework in Montreal. It was capable of lifting 27 tons with 100' of boom at a 40' radius. The length of boom delivered was 200' (16 to 19 stories).
In the late fall, construction of Distribution Building # 2 began. It was designed for tobacco and canned goods but has seen numerous commodities during its last 29 years. Shippers and ship owners were at this time facing the problem of change. The operating costs for salt-water vessels serving the Great Lakes led to new methods of handling cargo. Containers were the buzzword of that time. Steamship lines were reducing the number of lake ports served, containers were becoming deck loads on package freighters, and new ships were being designed and built. Railways too were attempting to be part of this better mouse trap.
Our last vessel left on December 10 with a partial load, due to falling temperatures. Morton actually loaded and then removed tobacco and canned goods along with some Toledo cargo to permit an immediate move to Montreal before freeze up.
The ETR at this time received $7.50 for an intermediate switch (the move of a railcar between two railways by a third) with a free return for the empty. A submission seeking relief in the form of a rate adjustment was being prepared for the Board of Transport Commissioners, a rather powerful organization dominated by consummate bureaucrats.
Competition increased as salt water shipping companies were now offering to absorb land costs for containers delivered to their ports-of-call on the Atlantic coast. This was a serious threat to the Great Lakes and the Port of Windsor. Manchester Liners was delivering containers by vessel for furtherance to Chicago and other points by rail. This business was soon to be supplemented by the movement of containers barged to and from Detroit.
Pursuit of new business was constant and the prospect of 37,000 tons of large diameter import pipe kept the office busy. This represented outdoor storage and trans-shipment versus the large volume of indoor commodities like tobacco, and was very attractive. The first vessels arrived early in the season carrying 4,000 tons of pipe each from Genoa, Italy. High water levels facilitated the use of much of the 2,400' slip. Soon there was pipe in piles over much of Morton Terminal properties.
In the late summer Alfred E. Perlman, President of the Penn Central Railroad, was given a hi-rail trip over the ETR. This provided the opportunity to stress the potential savings for Penn Central if the ETR assumed exclusive responsibility for rail service in Amherstburg. Allied Chemical announced the construction of a $2-$3 million hydrogen fluoride facility to be built in in Amherstburg. This represented new railway potential (acid) for the ETR and bulk (fluorspar) delivered by saltwater vessels for Morton Terminal.
Intermediate switch traffic was a significant part of daily freight car moves. The rates had been unchanged for 52 years. As a small railway without cars used in interchange service the ETR suffered for a long time with increased costs of all kinds. Our submission to the Board of Transport Commissioners a year earlier had seen considerable opposition from larger railways but was at last considered and as of January 1970, the rate was increased from $4.50 to $9.00 per car.
Barging of containers between Detroit and Windsor with the assistance of McQueen Marine kept the Morton Terminal employees, the crane, and railway busy during a normally slack winter period. Over 791 containers were barged in March alone and 348 railcars in the first quarter. During this same period tobacco for export was taken into storage and would reach 35,000 500 lbs. cases by the end of the March.
Navigation season opened and ocean freighters were not as numerous due to package freighters being pulled from service and converted to container carriage. Many ships that formerly called at Windsor were now being turned at Montreal or Quebec City.
Container handling started to suffer in late 1970 from the establishment of a second barge operation on the Detroit River. Canbarge was attempting to gain a foothold in the container transfer business.
The track inspection trip of a year earlier with the president of the Penn Central had produced nothing in the way of results, possibly because he had more pressing problems. The P.C. filed for bankruptcy on June 22, 1970. A respectable sum of money was owed to the ETR and this possible loss was a worry. Fortunately the ETR held an even larger sum of P.C. money which became very difficult to relay. Eventually the matter was settled without any loss to the ETR.
For the Essex Terminal Railway Company, intermediate switch traffic was a significant part of our daily freight car moves. The rates paid had been unchanged for 52 years. As a small railway owning no cars in interchange service (on other railways) the ETR suffered for a long time as costs of all kinds increased. A year earlier the ETR made a submission to the Board of Transport Commissioners because for the larger railways, interswitching was reciprocal where ours was not. As a result, our submission saw considerable opposition from the larger railways. A decision was finally received and as of January 1970, the rate was increased from a paltry $4.50 to $9.00 per car and further improvement in the rate was sought.
Barging of containers between Detroit and Windsor with the assistance of our sub-contractor McQueen Marine kept Morton Terminal employees, the crane, and railway busy during a normally slack winter period. Morton handled over 791 containers in March alone and 348 railcars in the first quarter. During this same period tobacco for export was been taken into storage and would reach 35,000 cases of 500 lbs. each by the end of the March.
The Navigation Season opened but ocean freighters were not as numerous because package freighters were being withdrawn from service and converted to container carriage. Many ships that formerly called at Windsor were now being turned at Montreal or Quebec City.
Our trip a year earlier with the President of the Penn Central Railroad had produced nothing in the way of results for improved business, possibly because they had their own serious problems. The Penn Central Railroad filed for bankruptcy on June 22, 1970. They owed the ETR a considerable amount of money and this was a worry. Fortunately, the ETR held even larger sums of P.C. money that we were reluctant to release and therefore a settlement was reached without any loss.
Container handling at Morterm started to suffer in late 1970 and the establishment of Canbarge, a second barge operation on the Detroit River, eroded our business volume.
Michigan and Southwestern Ontario white beans destined to the United Kingdom was an important package freight commodity and now competition was fierce. Morton approached Michigan bean brokers with an all-inclusive rate to cover trucking, terminal handling, and barging. This seemed to meet with great favour. A short time into the season however, we had to deduct the trucking portion as bean farmers, due to poor experience in the past, were reluctant to loose control over their trucking.
Ensuring payment for services rendered is sometimes difficult. CAST, an important ocean carrier in 1971, was the contractual party responsible for paying Morton’s terminal charges. It was neglecting to pay the remaining destination charges for handling an Italian pipe consignment. A writ was issued. But Mr. Frank Narby, their President and principle shareholder, was a wiley individual who proved very difficult to track down and secure final payment. This was indeed a learning experience.
Five shiploads of Mexican fluorspar was booked for delivery early in the season, but more business volume was needed and cold storage was considered for flower bulbs, apples, cheeses, fish, and meat, etc. None of these ideas materialized, but we were successful in attracting many refrigerated containers of New Zealand and Australian meat.
Taking intermediate switches into account, over 33,000 loaded freight cars were handled by the ETR, and for every loaded car, you have to take into account it’s movement as an empty car. Our train crews were busy.
In January, there was an Act of God - or kids. High winds and blizzard conditions blew several empty Canadian Salt hoppers on the storage tracks at Salt Hill onto the main line. This was unbeknownst to Bill Moody, engineer of ETR #105, on the run back from Amherstburg. The engine and two cars were derailed upon impact. Fortunately, there were no injuries as the engineer put the train into emergency and bailed out.
These same winter conditions were playing havoc with our barging schedules at Morton Terminal due to wind and ice. We were now serving Nicholson Terminals, the Detroit Harbour Terminals in addition to Detroit Processing Terminals. Canbarge, which Nicholson and CN Rail favoured, was having difficulty. By April, they were carrying empties only and appeared to be ready to cease operations.
Our incentive rates for fifty or more containers per shipper per month had attracted business and larger containers were appearing - 40' long and weighing up to 40 tons. Morton Terminal, during the busiest year in its history, handled the equivalent of some 6,000 twenty-foot containers. Morton Terminal had become ETR’s fifth largest customer as most of these containers arrived and/or departed by rail.
The first vessel of 1971, was Russian, picking up tobacco for Britain; the second was German, discharging fluorspar, and the third was from Cyprus discharging tomato paste. Ships with steel were loading in Japan for expected delivery at Morton mid-June as the first of an 83,000 ton consignment.
The imposition of a U.S. surcharge influenced movement of steel over the Morton dock for some time. Exemption of steel in transit relieved this somewhat in August and 50 to 100 truckloads a day commenced movement.
At ETR, heavier freight cars were now appearing with greater frequency and our softwood ties were suffering without tie plates as this traffic demanded heavier rail, tie plates, and hardwood ties. The ETR began to lay 100# rail at the rate of 200 tons per year. We even bought the rail recycled from Expo ‘67 for a deal of $138.00 per ton.
The U.S. Interstate Commerce Commission decreed that all railcar rentals now be calculated on a time and mileage basis and be made retroactive for six months. This naturally meant new systems and increased the workload in our Freight Office and all other railroads substantially.
On September 21, 1971, the deck of the container barge collapsed as it was leaving the slip with thirteen containers on board. Nine contained scotch whiskey, one cocoa beans, two diesel engines, and one with silo parts. The majority of the containers floated and were quickly picked out of the river by our crane assisted by the tug. The diesel engines sank as did the rag top container of silo parts. Those that sank were recovered within a couple of hours with the assistance of a diver. The containers were moved on to Detroit the next day for delivery and completion of the damage claims from the receiver. In Detroit, the whiskey was held by Customs as the labels were allegedly water marked. It was eventually delivered to a landfill under Food and Agriculture regulations as contaminated by Detroit River water. Grown men cried as bulldozers crushed the hundreds of bottles of fine scotch whiskey. It is said that the sea gulls were happy for weeks.
While the original barge was being repaired, a rented barge was used. On November 4th, eleven containers were loaded but the move was canceled for 48 hours due to congestion in Detroit, an not unusual event. About 6:00 P.M. on the second day, the rented barge with a deck-load of eleven containers sunk at its moorings.
In October, Morton Terminal bought T.S. Warehouse Ltd., in order to gain the only border truck sufferance rights on the Canadian border. Track was laid into DB #1 to handle storage and loading of Chrysler KD’s (knock down) autos for South Africa and New Zealand.
By the end of 1971, ETR had another project on the go. A formal application for the construction of the Amherstburg extension was made. This was to accommodate Calverts Distillery which was receiving tankcars of whiskey from their plant in Gimli, Manitoba for packaging at Amherstburg. The bankrupt Penn Central Railroad advertised their intention of also building track. This was astounding! The ETR owned the right-of-way, was not bankrupt, had a Canadian Transport Commission (C.T.C.) application on file, it’s own board approval for the expenditure, and enjoyed 98% of existing Amherstburg rail business, and could move quickly. It seemed simple enough but the PCR. was threatening to build two miles of new track, rebuild old track, and force the construction of a new four a lane bridge largely with Federal and Provincial funds over its’ tracks under Highway 18. The ETR countered with a couple of options, one of which was to provide a direct connection between the Detroit Toledo & Ironton Railroad and the ETR in Windsor. This was very distasteful as the PCR wished a share of the automotive revenues generated by this connection and resisted all other proposals. (ETR was facilitating the movement through the CPR) The C.T.C., while not giving a decision, indicated the ETR could complete the purchase of right-of-way from Allied Chemical Company. Construction of track however, was delayed pending C.T.C. approval and this was anticipated by early spring 1972.
Morton Terminal continued to search for new business. In the early months of 1972 we became aware of the potential business offered by a grain elevator. Many meetings were attended and contacts made with knowledgeable people and principals in that business. A press report indicated that Montreal interests were considering Port Stanley on Lake Erie for an elevator. Morton did its best to convince Goderich Elevators to locate in Windsor without success. Maple Leaf Milling Company was slightly interested and at that point favouring Sarnia. Morton officials worked hard and in cooperation with the City of Windsor were successful in getting them to locate in here. This became the ADM facility adjacent to the south side of Morterm.
Morton Terminal Limited was located on a 90-acre portion of the original 2,200 acre Ojibway properties, and included the 2,400' slip built by U.S. Steel in 1917. The balance of the properties contributed to the operation of the Terminal by providing access roads (a real advantage when Namasco Steel was located in Ojibway), water mains and utility easements. The servicing of ship traffic was developing slowly and Seaway Forwarding Company, which performed similar services in Sarnia, provided the stevedoring equipment and manpower. In the early days, many of the casual labour longshoremen were residents of the Walpole Indian reservation on the St. Clair River. They were a colourful and hardworking group of longshoremen.
A large steel customer was proposing we handle his steel on the basis of warehouse receipts. This would have involved several million dollars worth of warehoused steel with a bank holding the steel title as security, releasing the steel as the loan was paid down and the steel delivered. This demonstrated the flexibility utilized to attract business but the procedure was not used in this case.
Adams Cartage had been located on the north side of the slip at Morton Terminal for many years handling the tonnage of Algoma Steel at Windsor. Adams had purchased the Empire-Hanna Coal docks about a mile north of Morterm earlier, and undertook to relocate dockage for the Algoma steel vessel, (M/V "Yankcanuck") and tonnage there. Morton was unsuccessful at this time in attracting this business. Their first year on the opening for navigation of the Seaway some difficulties at Adams arose and Morton was asked to stevedore the Algoma vessel at Adams dock, but the moving equipment and longshoremen between the operations would have been too costly. The former Adams Cartage building on the north side of the slip was moved to the head of the slip and refurbished for CP Ships use.
As salt water vessels engaged in transporting overseas package freight diminished in importance, vessels requiring heavier lifts and carrying bulk cargo stimulated serious consideration of the lift truck fleet and other equipment. Rental equipment was always available but the time and distance often made it excessively expensive in a competitive business. The existing small lift trucks were from the package freight age (some from Canada Steamship Lines) and belonged to the stevedoring company. Times were changing and new equipment was clearly needed. Large lift trucks were costly and just how big should they be? Who should buy them, Morton, or the contract stevedore? In the case of the crane, Seaway took delivery of a 200-ton $400,000 crawler crane in April. A large 80,000 lb. forklift was leased by Morton for the warehousing and handling operation, and included a container lifting attachment. It was delivered in September. The new lift truck was capable of picking up 35-ton 40' containers. The pursuit of business continued and the large fork truck assisted in the handling of sheet piling and coil.
In May 1972, the staff and offices of Morton Terminal and the Essex Terminal Railway moved under one roof at 1070 University Avenue in Windsor, half-way between both operations.
Water levels were a concern that year and dredging was undertaken at the mouth of the slip to ease berthing of the early vessels. The first ship was Taiwanese with a cargo of 4,700 tons of Japanese steel. The longshoremen at Montreal struck their employers early in the season and ocean cargoes were diverted to Windsor.
Containers were being diverted to trucks for movement direct to Detroit customers and CP Rail had contracted container movement to Detroit via an independent contractor. Mid-year, railed containers were again diverted to Morton Terminal by CPR. However trucks with the advantage of fewer handlings continued to bleed the container business away from the barges which had to charge for multiple handlings, (off rail to ground, to barge, off barge to ground, to truck). Some 200,000 sq. feet of stoned area was prepared with a rail track dividing the area so containers, and late lumber could be lifted from both sides of rail cars. These containers were intended for furtherance by truck. Business conditions dictated that container movements should once again move by barge and 479 did so for several months starting in November.
A strike at the Ambassador Bridge disrupted truck and container traffic for a few weeks and another in Britain reduced volumes also. Later in the year there was a Japanese seaman’s strike and Manchester Liners announced their decision to terminate their lake feeder service in November 1972, and divert their containers to CN Rail.
The Essex Terminal Railway was negotiating with Canadian National Railway who wished to move large volumes of cars over the ETR from east Windsor to the Canada Southern Railway yard providing access to the railway tunnel (under the Detroit River). Technically, this would be classified as intermediate switch traffic and did not offer attractive revenue, while congesting and delaying regular ETR traffic.
The reason for this potential change was interesting. Henry Ford II was leading a development effort in downtown Detroit. It is alleged, with very good authority, that Mr. Ford explained his need for their land to Grand Trunk Railway officials and suggested that any lack of cooperation might impact on the volume of railway business they enjoyed from Ford Motor Company. Ford is a big user of rail transported raw materials, parts and finished automobiles. The GTR very quickly read between the lines and started to consider their options. (This development later became the Renaissance Center.)
The passenger terminal in Detroit would have to be closed disrupting commuter traffic and also People Mover plans to move large numbers of railway commuters to offices in Detroit’s central business district. The CN Rail ferries, from downtown Windsor to the GTR in downtown Detroit, would have to be diverted to the Norfolk Western Railway docks near the Ambassador Bridge and track agreements and railcar routes changed. This eventually focused on a second option that was faster, less expensive and better: Move the freight cars from CNR Windsor (back of Ford via ETR) to the CSR yards and through the rail tunnel. Only someone like Henry Ford could have caused this series of events with such dramatic results over the next several years for Detroit.
The ongoing discussions between the ETR and Penn Central Railroad continued to have its lighter moments. Officials of this bankrupt company arrived in the ETR main office in mid-March and asked the ETR to lay its track on the north side of the ETR right-of-way in Amherstburg, rather than in the centre, in order to accommodate the PCR and its track on the south side. This was the equivalent of asking Chrysler to let Ford build a plant on the Chrysler parking lot. A two-day hearing was held in Amherstburg in June and a decision was optimistically expected by October.
In Windsor, Dome Petroleum informed the ETR they planned to store propane in exhausted salt caverns in the west end of Windsor. They would require 2,400 feet of track and rail service adjacent to their underground propane storage facility. It had to be completed by June 6th and carload movements would start in July. This represented not only business opportunities for rail movement of propane but for Morton Terminal the possible handling of 20,000 tons of offshore pipe.
A heavier locomotive was required and a bid was prepared for a used Century 420 Alco located in Warwick, N.Y. The Lehigh & Hudson River Railroad were the owners and were in receivership. The ETR was successful in their bid. This 1964, 2,000 HP cost $80,000 US plus duty and sales tax of $40,346 before being moved to Windsor.
Also at this time the Canadian Bridge Company was reducing its operations in Windsor. Some of their land on Walker Road became attractive to the ETR for the storage of Ford rail cars. A used Electromatic track tamper was purchased from the Algoma Central Railway to lift rail and pack ballast under the ties prior to leveling and aligning track. The Maintenance of Way department was delighted with this purchase. They rerail locomotives and rail cars, and repair and replace track. Years ago they stopped for coffee breaks and ate their lunches in ditches to get out of the cold winter weather. Today, as new equipment becomes available they learn new techniques while preserving the best of the old. They are truly an important part of any railway.
In August, while discharging steel from a Greek vessel on the number one berth, Morton’s crane under rental to Seaway Forwarding Agencies, suffered a failure and dropped four coils of steel. Fortunately there were no injuries and little damage to the vessel. The crane however incurred major damage, in the loss of its boom, outriggers, axles and counter weights.
Up until this time, the Essex Terminal Railway Company could only charge interswitching (a movement of rail cars between two railways by a third) rates for the movement of full cars. This traffic meant a gross revenue of $9.00 per loaded car, and other traffic subsidized the free-return movements. Any adjustments to the intermediate switching rates required government approval and the ETR wanted to argue that it cost just as much to move a full car as an empty. So in February 1974, the ETR started to prepare an application and supporting documents to get permission to charge a fee for the handling of empty cars moved as an intermediate switch.
While the above application was pending, the ETR laid 2.12 miles of 100 lb. rail in the first four months of the year, and a further 2,712 ties and 232 tons of rail by year end. The Track Department also commenced building $119,000 worth of new track west of Dougall Street for the transfer of CN-GT traffic via the ETR.
Derailments on the ETR occurred infrequently due to track improvements during the late 1960’s and early 1970’s but in early 1974, eighteen inches of broken rail caused five cars to jump the track on Crawford Avenue on rail due to be changed-out the following week. The particular rail involved had been milled in 1918.
Another project that had been in the works since 1971, was the acquisition of the Amherstburg extension. On March 7, 1975 the ETR finally received government approval to purchase the right-of-way, a time span from filing that makes even the postal service look good. As a part of the deal, the Penn Central Railroad received $580,000 in grant money from the Federal government in lieu of their rights to service Amherstburg.
Two heavy rail movements for Canadian General Electric to the J. Clarke Keith generating station in the West End required a supporting bent to be place in the centre of our Wellington Street Bridge which passes over the Detroit-Windsor rail tunnel. The plant was being converted from coal fire to natural gas and the weight of the power generators on the each of two cars was 759,000 lbs. At present, this bent is being stored south of the bridge.
In August at Morterm another of those events, which change the best of plans, occurred when a lake vessel knocked down one of the bridges over the Welland Canal. The proceeding two week blockage meant vessels with cargo booked for Windsor were discharged at Montreal or Hamilton, and others downbound (moving toward the sea) discharged at Windsor for furtherance by rail or truck.
An event of another sort occurred shortly thereafter when a pilot’s dispute took place. Luck swings both ways and in early 1975 an International Longshoreman’s strike of eastern ports unexpectedly diverted eleven vessels to Windsor. The government ordered the longshoremen back to work a little later but they refused to return for a time.
As container activity declined, Morton Terminal pursued lumber as a commodity suited to both the rail facilities and the large outdoor storage yard. There were also difficulties in the rail freight business with shipments down 7.9% in the first six months and losses accumulating. The major railways had several thousand workers on layoff and CP had 167 locomotives and 2,000 railcars mothballed. The fact that the Canadian Railways wished to keep their expensive and needed lumber cars in Canada helped this operation greatly. The lumber would move under attractive agreed upon charges and could be trans-shipped by truck to U.S. points. The large inventory close at hand would be attractive to the end use purchaser who could order split loads of dimension lumber. The first ten cars arrived in December and the number increased dramatically in the New Year.
In October 17,1974 Mr. B.G. McKeown, Sales Representative, was named an officer of the Company. He had been hired earlier as a rather personable brusk young man with no particular qualifications other than a B.A. degree with a major in English. However, it was felt that with the passage of time and some careful guidance he might develop some portion of his potential. This further step was proof of this early assessment.
The high cost of accidents was reinforced in early 1975 when the barge accidents of 1971 (see issue #18) were settled by insurers on behalf of Morton Terminal for $46,700. There were also five other parties to the settlement including the owner of the cargo, the owner of the tug company and the railway carrier each paying their share.
The sale of industrial properties in Ojibway had been slow, and as described earlier, the Company had been working diligently to attract a grain elevator to the waterfront site in Windsor, one of the few on the lower Great Lakes. Maple Leaf Mills of Toronto had engineering reports, soil reports, divers studies and more in hand and by the end of the year were about to decide on a joint venture with Lever Brothers in either Sarnia or Windsor.
The previous year ended without the employment opportunities and the anticipated rail business that could flow from volume storage of lumber at Morton Terminal. The staff was busy developing the procedural details of recording lumber ownership and preparation of the required documents for truckers and U.S. Customs. All procedures were tested to facilitate movement to the eventual customer. The business soon grew to ten accounts and about 500,000 board feet of lumber on the ground. By October, over 3,000,000 board feet had been received. In December through put grew to 5,000,000 FBM (foot board measure).
On another front, potential sales of Ojibway industrial land existed which could also impact business and employment at ETR and Morton Terminal during the year. Three options on the Ojibway properties were alive and looked positive. The most important was Maple Leaf Monarch Company of Toronto, followed by the UCO (United Farmers Co-Operative of Ontario). The third was option was Valente Construction, a residential contractor. Morton Windsor’s efforts to attract the first two companies was being enthusiastically supported by our ebullient Minister of Agriculture, Gene Whalen, while the UCO had been working closely with Redpath Sugar of Montreal.
The crucial option was with Maple Leaf Monarch. The many details within our power had been worked on for months and success was almost with in our grasp. Our competition was a location in Sarnia, and while that city wanted the oil seed plant, their city council insisted upon and supported a condominium development on an adjacent site, clearly a use incompatible with a manufacturing facility. In the end this defeated any hope of the Maple Leaf project for the City of Sarnia.
The Maple Leaf and the UCO’s options in Ojibway were extended once more to enable completion of more thorough studies. The planned projects would take 30 months after closing. By July, Maple Leaf closed on 48.267 acres south of Morton Terminal. UCO immediately chose the 20.087 acres of water frontage between Maple Leaf and Canadian Rock Salt.
The two companies had agreed to the joint use of their combined waterfront. Maple Leaf had been seeking a partner for the oil seed plant and Lever Brothers, an experienced oil seed producer, became that partner. Maple Leaf was responsible for the site, buildings etc., while Lever Brothers took care of the engineering and processing equipment, based on their latest European designs. When the plans were completed, it was estimated that construction of roads, rail trackage, sewers, water mains, natural gas, power, the elevator, dockage, and the oilseed mill would take 30 months to complete.
Dainty Foods, a good customer of the ETR since 1956, purchased an additional five acres of land adjacent to their existing rice mill in Ojibway. The anticipated need of better road connections to Huron Line brought forward demands for an early start on the Highway 18 / Huron Line section of the E.C. Row Expressway.
At ETR, track upgrading continued to be a priority. Softwood ties were being replaced with hardwood. The first shipment of oak switch ties arrived early in the year from West Virginia. Cross ties from the Appalachians were heavier, 175 to 190 pounds each and a special drill was acquired to prevent spike splitting. Business was picking up and train crews were being scheduled for Saturdays and Sundays largely to accommodate the rail traffic offered by Ford and Canadian Rock Salt.
The old ETR signal tower at the C&O and ETR, east of Walker Road, was automated at a cost to the ETR of $80,000. Rumours of a possible Canadian railway strike were causing some shippers to search for alternate methods of shipment, but a settlement was reached in mid-year. Consequently, the ETR did not gain any extra business.
Note: Regarding last month’s cover story and fillers. Jimmy Hoffa visited Morton Terminal about two days before he disappeared to help settle a union dispute. Mr. Elder said he settled the dispute quickly with short four-letter words.
In the latter part of 1976 and early 1977 we experienced unusually cold weather and that is the condition that makes track maintenance a challenge. Steel rail contracts, drifting snow clogs switches, and snow plows used on streets complicates crossing maintenance. Salt moisture also interferes with switch circuits. Low temperatures can cause the ball of the rail to break, possibly due to rail fatigue, or the rail contracting or being struck by low bed trucks at level crossings. In-plant trackage can be especially difficult to maintain in the confined quarters of some manufacturing facilities. Spikes loosening in ties with thaw and freezing cycles can cause loss of gauge.
Privately owned trackage has to be returned to service quickly so daily production may be shipped. Freezing of ties in place makes these repairs difficult, especially if the frost is deep in the ground. The track repair gang can use gauge rods in some cases, which maintain the 56½" gauge and usually enable continued careful use of the track, until permanent repairs can be made. Unsafe privately owned trackage can deprive a shipper of rail service, or he may incur the cost of damage to rail equipment. Most rail shippers have their track inspected in the late fall to insure against track failure during winter.
Three large storage warehouses at Morton can be profitable or a great expense. The substantial annual municipal tax bill arrives early in the year and is a cost that reminds management of the importance of constantly seeking storage accounts. Labour disputes often result in unexpected storage business and some 20,000 auto frames were delivered by rail (90 to a car) in January. Many carloads of automobile radiators were also delivered by rail a short time later. These events also work in reverse when such disputes result in work stoppages and loss of expected freight movements and storage, this happened in April when Allied Chemical suffered a three week strike. Lumber became an important commodity in 1976 and in early 1977. Morton Terminal had over twenty accounts and yard crews were working three shifts. This kind of activity made Morton Terminal one of the ETR’s five largest customers.
In April the responsibility for stevedoring vessels at Morton Terminal, which had previously been performed by a private contractor, was assumed by Morton. Cranes for the discharge of the first vessels were rented from Dean Construction. The first vessel was Liberian, crewed by Filipinos, and loaded with Japanese steel. The 6,112 metric tonnes of steel was discharged in 12 hours vs. 25 hours for the same vessel carrying 7,500 metric tonnes at Philadelphia. The 1977 Navigation Season looked good with ten cargos of fluorspar, four cargoes of steel, and miscellaneous equipment. At year’s end twenty-four vessels had been worked including some 81,000 tons of fluorspar and 44,000 tons of steel.
By mid-April, all of the decisions, plans, public and private approvals, were finally in place and Maple Leaf Monarch and UCO (United Farmers Co-Operative of Ontario) formally closed the property transactions.
The many entities who cooperated to make the buildings and create the jobs were finally seeing some result. Coordination was now the big task as construction crews engaged by the City of Windsor, the Windsor Utilities Commission, Morton Terminal, ETR, UCO, and Maple Leaf commenced work.
The pile drivers began in early July. Site preparation which was difficult as a result of the seemingly constant rain which turned the property into a quagmire. The twelve-inch water main that served Morton Terminal was located on the Maple Leaf property and was cut off by this activity. The construction of the new eight-inch water main along the new Maplewood Road was not completed until February, 1978 so trucked water was the only supply. The storage yard within Morton Terminal was enlarged so that the construction equipment and vehicles engaged in the Maple Leaf - UCO project could be secured each night. By October, the Maple Leaf concrete and steel building structure was sitting on mile of steel piling pounded to bedrock some eighty feet below. The soybean crushing mill was well under way.
The UCO piling was in the early stages of the driving process. The first four silos (160' high) were completed in October. Twenty-six miles of piles had been driven for the support of the eight 160' high silos (elevators) that now occupy the site. Building materials and equipment for both Maple Leaf and UCO that could be shipped via water were discharged and stored at Morton Terminal. Maintenance work on a sewer near our number one berth led to the discovery of a large void just below part of the dock surface. The required repairs were quickly completed.
The ETR was successful in its search for a more powerful locomotive and a 1500 HP unit built in 1971 (No. 107) was acquired for cash and the trade of an 800 HP unit (No. 101). The additional locomotive power was required to accommodate increased tonnage and the larger rail cars that were now becoming common.
The year’s stevedoring experience proved in every way that the purchase of a large crane and at least two large fork lift trucks could be justified and should receive immediate consideration.
Snow storms in late January made rail operations almost impossible. The average snowfall for this month is usually around 9.5", in 1978 we received 25.8" of snow. Downed power lines and blocked switches obstructed trains.
Our customers’ sidings were suffering from heavy ice buildups and derailments occurred when attempts were made to place cars. They were also complaining of a lack of certain types of rail cars that were trapped in snow in the U.S.
Ice removal around switches was time consuming; the heavy use of salt helped but snow would blow in the switches each night slowing train movements again the next day. A track maintenance man was put onto every locomotive to sweep out the switches as the train moved along. The ETR undertook to add a sixth crew to eliminate the overtime that had peaked over an extended period.
Snow removal at Morton Terminal was a problem as was the delay of discharging of rail container cars while the men cleared the work areas. There were also delays in the barging of containers to Detroit due to the high number received in December. Lumber continued to arrive and warehousing space was oversold by some twenty percent. Steel that had arrived late in the previous year continued to move out and would be the major activity until March.
A capital appropriation request was prepared for the purchase of a large crawler crane of 150 to 200 ton capacity to replace the 110-ton mobile crane acquired in 1968. A new American 225-ton crawler crane arrived in early June. After being used to assemble the new crane, the 110-ton crane was sold for $95,000.
The last ship of the year was handled in December when 700 tons of mining equipment was discharged.
Around town, General Motors purchased the Sandwich-Windsor-Amherstburg Street Railway (now Transit Windsor) Kildare Road plant on eleven acres, adjacent to the Essex Terminal Railway and was preparing for a $400 million reconstruction for the manufacturing of automotive transmissions.
Ford Motor Company announced the acquisition of a 324-acre site just east of Jefferson on the CN line (Chrysler spur) in Windsor for the construction of a new $533 million dollar engine plant.
The E.C. Row Expressway serving Ojibway was approved by City Council at it’s December meeting for tender.
The Ontario Carpenters Union delayed construction of all building across the province for a number of weeks during July and August seriously delaying the work on the $100 million dollar Maple Leaf and United Co-Op buildings in Ojibway.
Some intensive sales work had taken place in the late fall and resulted in the arrival of the first West Coast lumber in some years. The objective of the lumber companies was to penetrate the eastern U.S. market from Morton Terminal in Windsor. While cars handled by the ETR had declined in the early months, the lumber in inventory on the ground soon increased to 15 million board feet during the first quarter of the year. Forty-two cars of the Algoma Steel business that Morton has diligently sought was also received in January. The other reason for optimism was the announced retooling of the Ford Engine Plant on the ETR at a cost of $200 million and a resumption of production in early 1980.
In June, Maple Leaf Monarch commenced trial runs in its new plant, with a view to being in full operation in time to utilize the fall oil seed crops and in August the ETR moved forty-eight carloads of product.
Railway cross ties were increasing in price and an October purchase at $13.25 US was considered very attractive even though it resulted in a $17.65 landed Canadian cost. Approximately 2,800 cross ties are required per mile of track. When rail, spikes, bolts, angle bars, ballast and labour are added, the cost of new track is not insignificant.
One other important note for 1979: in a corporate reorganization during 1979, the Canadian Salt Company became the beneficial owner of the nominal shares held by ETR directors rather than Morton Industries of Canada.
Business volumes go up and down. In 1980 it appeared the decline of business activity would continue. These unsettled conditions no doubt raised concerns with employees and often result in labour difficulties.
The business decline for Morton Terminal and the Essex Terminal Railway really started in the fall of 1978. The retooling of the Ford plant reduced the usual carload traffic by half and now lagging car sales were effecting production from the remaining plant. Ford operated it’s plant for two weeks in January and two weeks February. Later in the season they operated only one week per month.
Kelsey-Hayes, a major shipper, was also suffering from a strike and refusal of the employees to ratify a contract. Customers were seeking a writ of possession and removing their goods from the plant. Rail sales were down over fifty-six percent from a comparable period in previous year. About mid-January the employees of Morton Terminal struck and significantly reduced some activities at the Terminal. These events are always unpleasant and neither party ever wins. Settlement occurred four months later in May. Customers returned to the Terminal slowly and it was some time before business and employment regained its former level. Warehousing did not recover until the following year.
The general public does not realize that steel rolling on steel wears. This is the reason railways move the left rail to the right side of the track particularly on curves to extend the life of the ball of the rail. Daily temperature extremes cause expansion and contraction, this can cause split rails in winter. In the case of locomotive wheels, the steel tires and flanges are carefully watched by our hostlers because sharp wheel flanges can split switches. During the life of locomotive wheels, their tires are cut to the original form and the flanges reshaped as required. When the tire is worn to a given point the wheels are replaced. So it was with engine No. 107, which returned to duty with a new set of wheels in early 1980. Then engine No. 106, because of its size (it was the largest engine the ETR owned to date and was too high to jack up inside the shop per the normal routine in 1980), was prepared for wheelwork at the CP shops in Toronto
Railway freight movements involve a lot of cooperation between companies. During declines in the business cycle it is every man for himself. In April 1980, ConRail decided to short-haul empty cars over the ETR under the "free return of the empty" provision. This of course was not only non-compensatory but also an expense. The cars should have been returned by reverse routing as these carriers earned the loaded revenue.
ETR refused the empty rail cars. ConRail blocked the ETR interchange and complained to the Canadian Transport Commission (the C.T.C. controlled the rates on loaded cars only). The ETR eventually agreed to accept about a dozen cars per day while preparing and filing tariffs to increase the intermediate switch rate for cars. The increased rates sought were on cars that had been previously handled as a load by the ETR (to $20) and on empty cars that had not been previously handled (to $25). The other railways agreed but ConRail remained silent.
The lack of cooperation continued. Another problem soon arose in which the ETR suffered a loss of traffic when ConRail refused to reduce their portion of the truck competitive rates and demanded a larger share of revenues than they had previously. The ETR Acts of Incorporation in 1902 and 1917 gave it the right to serve Amherstburg, so the ETR countered with the publication of Amherstburg as a station rather than Quarries a mile away. Subject to tariff publication, the ETR accepted Amherstburg traffic from and to other connections in addition to ConRail. This denied Conrail exclusivity and the C&O (now CSXT) or Norfolk Western could take the US traffic.
The disagreements between the two companies continued and ConRail next demanded rail freight settlements be paid in US funds. The practice at the time was to merely pass along the 60% surcharge received from the shippers. This led to the ETR withdrawing from the Canadian Freight Association and drafting a tariff providing for the payment of a surcharge reflecting 95% of the current bank exchange rate on US traffic. This tariff became effective December 18, 1980.
Tough times brought forth another dispute. The Brotherhood of Maintenance of Way felt the company should not permit another railway’s employees and equipment to be used to clean up and repair damage caused by another railway while using ETR tracks. This case went to arbitration and the company was awarded the decision.
Engine No. 101, yes No. 101, was found to need new traction motors. The work was completed at the ETR shops.
In August, business started improving for the ETR when the Ford recalled 350 employees, and Maple Leaf Monarch was proving to be an excellent customer moving some 160 loaded cars per month.
At Morton Terminal, 154 rail cars were delivered during the month of October, representing 9 million FBM of lumber. And in November, 10 million FBM was handled. The new crane had increased stevedoring efficiency and fluorspar production reached 232 kilo tons per hour for the season.