The St Lawrence and Atlantic was the Canadian half of the first international railway ever built. At the outset much more than half of the enterprise and activity was centred in the United States, for the Canadas were still apprentices in railway promotion and construction. The ambition of an American seaport prompted the planning of the line, the untiring energy of an American promoter made it possible, and American contractors built the greater part.
The little city of Portland possessed the most northerly harbour on the Atlantic coast of the United States. Mr John A. Poor, whose lifetime was devoted to the extension of railways in northern New England, dreamed of making it, by a road to Montreal, the outlet of the trade of the West, at least so far as freight traffic went. Passengers and mails, he conceived, could best be carried to Europe from Halifax, nearly six hundred miles nearer than New York to Liverpool, but the railway connecting Halifax with the large American cities should pass through Portland, and thus make it an important divisional point, if not a terminus. His enthusiasm fired his fellow-citizens: the city subscribed for stock in the proposed road to Montreal, and guaranteed bonds, while private subscriptions mounted still higher, at least on paper. More difficulty was experienced in inducing allies in Montreal to undertake the Canadian half of the road. Before 1845, however, Montreal business men were convinced that a railway to Portland or Boston offered them the best means of recovering from the blow inflicted by the repeal of the British preference on Canadian wheat and flour. If Montreal could not be the New York of Canada, it might at least occupy the position which Buffalo was now achieving, gathering all the trade of the interior to forward it in summer and especially in winter over the new road. The advantage of such a line in the development of the Eastern Townships was also evident.
The only question in dispute in Canada was as to the relative merits of the Boston and the Portland route. The superior energy of the Portland promoters weighed down the scale in favour of their city. In February 1845 Poor struggled five days through a north-east blizzard, and reached Montreal just in time to turn the vote of the Board of Trade against Boston. He organized a spectacular race of express sleighs to disprove the claim that, though the British packet called at Portland before going on to Boston, the route by Boston would prove speedier. Relays of teams were provided all along the rival roads from Boston and from Portland, five to fifteen miles apart; evergreen bushes were set up in the snow to mark the road; part of the Montreal mail was taken off at Portland, and part at Boston, and dispatched by the rival couriers. The Portland relay covered the distance, nearly three hundred miles, in twenty hours, and dashed into Montreal, with all colours flying, twelve hours ahead of the Boston contingent. The cheers that greeted the victors marked the definite turn of popular favour toward the Portland route. Two allied companies were incorporated—the Atlantic and St Lawrence to build the United States section of the railway, and the St Lawrence and Atlantic to build from Montreal to the border.
The St Lawrence and Atlantic was a valuable medium of experience, if not of traffic. In its management were found the leading business men of Montreal, such as Moffat, M'Gill, Molson, Stayner, and Torrance. At first all was fair. Subscriptions came in freely from Montreal and the Eastern Townships. One of the youngest of the directors, Alexander T. Galt, then commissioner of the British-American Land Company, succeeded in floating a large quantity of stock in England—the first of countless railway appeals to the London market—only to have the subscriptions withdrawn in 1846 when the Hudson bubble burst. The Canadian stockholders put up what money they could. The city of Montreal took £125,000 stock. The British-American Land Company and the Montreal Seminary each lent £25,000. Country subscribers were permitted to make payments in pork or eggs for the use of the construction gang, though one director resigned because not allowed to turn in his farm. The contractors, Black, Wood and Company, as was customary in the United States at the time, took a large portion of their payment in stock. Still, funds were lacking. Internal difficulties developed; directors did not direct; and in 1849 the finances were found to be in a hopelessly tangled state. Galt then took charge as president, with John Young—forwarder and born promoter, active in all transportation schemes, whether for canal, railway, or bridge—as vice-president. Under their skilful financing the work went on, but scarcely forty miles could be opened in 1849. To complete the road to the border, in the depression which prevailed, seemed utterly beyond the unaided resources of private capitalists, and the directors turned to the government for aid.
Meanwhile, Upper Canada lagged in action, although schemes were many. Omitting merely local projects, the roads most in the public eye were those leading west and north from Lake Ontario. The Great Western project had been longest under way, and showed a significant evolution. In 1834 the legislature of Upper Canada had granted a charter to the London and Gore Railroad Company. This road was designed to carry the products of the rich western peninsula to the bordering lakes, and chiefly to Lake Ontario. The main line was to run in the direction of Governor Simcoe's great highway, Dundas Street, from Burlington Bay to London, while power was taken to extend the road to Lake Huron and the navigable waters of the Thames. Nothing was done under this charter. When it was renewed by an Act of 1845, the name was changed to the Great Western, and, more important, the route was altered to extend from the Niagara river via Hamilton to Windsor and Sarnia. For meanwhile the New York Central had reached Buffalo, and the Michigan Central was being pushed westward from Detroit toward Chicago. A road through Canada would provide a shorter link than one south of Lake Erie, and the Great Western was designed to fill this gap.
With all the possibilities of through and local traffic, and of comparatively good grades and few curves, the road was long in starting. An eminent American engineer, Charles B. Stuart, reported glowingly on the prospects. Two citizens of Hamilton, Allan MacNab, fiery politician and calculating lobbyist, and Isaac Buchanan, untiring advocate of railways, protection, and paper money, threw themselves into the campaign. Samuel Zimmermann, the best known contractor of the period, a Pennsylvanian who had come to Canada to take a Welland Canal contract, and stayed to be the power behind the scenes in the provincial legislature, was prepared to build the road. Hudson gave the scheme his approval. All to no immediate purpose. The contracts were let, ground was broken at London in 1843, but the money to build was not forthcoming. In consequence the Great Western also turned to parliament for aid.
The Toronto, Simcoe and Huron Union Railroad Company—later known as the Northern—the first road in Upper Canada on which steam locomotives were used, was still slower in emerging from the promotion stage. The idea of building a great portage road between Lake Huron and Lake Ontario was an obvious one, and proposals for its construction were frequent. It was not until the scheme was taken up by Frederick Chase Capreol, a sanguine and ingenious Englishman many years resident in Toronto, that any real progress was made. Capreol conceived the brilliant idea of combining the lure of a lottery and the increment of land values to finance a road from Toronto to Georgian Bay. His proposal was to raise funds by a lottery for the purchase of 100,000 acres of land along the route of the railroad, and to pay for the road out of the increase in the value of the land. Objections moral and financial were urged, and Capreol modified his scheme. In 1849 an Act was passed granting a charter and permitting the raising of money either by subscription or by lottery, but it was reserved by the governor-general for royal assent, on account of the lottery clause. Capreol, nothing daunted, sailed for England, and in seven weeks was back with royal assent assured. The lottery, for all its alluring promises, fell flat. Then the Northern, too, clamoured for public aid.