From the beginning in Canada, to a much greater degree than in Great Britain or in the United States, the railway was designed to serve through traffic. But it was regarded at first as only a very minor link in the chain. River and canal were still considered the great highways of through traffic. Only where there were gaps to be bridged between the more important waterways was the railway at first thought profitable. In the phrase of one of the most distinguished of Canadian engineers, Thomas C. Keefer, the early roads were portage roads.

In 1832, two years after the completion of the Liverpool and Manchester Railway, a charter was granted by the legislature of Lower Canada to the Company of the Proprietors of the Champlain and St Lawrence Railroad, for a line from Laprairie on the St Lawrence to St Johns, sixteen miles distant on the Richelieu river, just above the rapids. From St Johns transportation to New York was easily effected, through the Richelieu to Lake Champlain and thence to the Hudson. This portage road promised to shorten materially the journey from Montreal to New York.

Construction was begun in 1835, and the road opened for traffic in July 1836. The rails were of wood, with thin flat bars of iron spiked on. These were apt to curl up on the least provocation, whence came their popular name of 'snake-rails.' At first horse power was used, but in 1837 the proprietors imported an engine and an engineer from England. Some premonition of trouble made the management decide to make the trial run by moonlight. In spite of all the efforts of engineer and officials, the Kitten would not budge an inch. Finally an engineer, borrowed from the Baltimore and Ohio Railroad, reported that all that was needed was 'more wood and water,' and given these the Kitten gambolled along at twenty miles an hour.

The Champlain and St Lawrence was at first operated only in the summer, when its services as a portage route were most needed. After a decade of moderately successful working, it was decided, significantly, to lengthen the rail and shorten the water section of the route. By 1852 the rails had been extended northward to St Lambert, opposite Montreal, and southward to Rouse's Point, on Lake Champlain. Twenty years later this pioneer road, after a period of leasing, was completely absorbed by the Grand Trunk Railway.

The first railway engine in Canada.
Champlain and St Lawrence Railroad, 1837.
From a print in the Château de Ramezay.

For ten years the sixteen-mile Champlain and St Lawrence was the sole steam railway in British North America, while by 1846 the United Kingdom had built over twenty-eight hundred miles, and the United States nearly five thousand. Political unrest, commercial depression, absorption of public funds in canals, hindered development in Canada. Many projects were formed and charters secured—for roads in the western peninsula of Upper Canada, between Cobourg and Rice Lake, on the Upper Ottawa, in the Eastern Townships, and elsewhere—but they all came to nothing. It was not until the railway mania broke out in England in the middle forties—when 'King' Hudson, first of the great promoters and speculators, turned all to gold; when ninety schemes were floated in a single week, calling for eighty million pounds; when companies capitalized at over seven hundred millions scrambled for charters and all England fought for their shares—that Canadian promoters found interest awakened and capitalists keen to listen. At the same time, the active competition of United States roads for the western traffic and the approaching completion of the St Lawrence canal system prompted further steps. A second stage in Canadian railway building had begun.

First may be noted three small lines, which were in their beginnings chiefly portage roads of the most limited type. The Montreal and Lachine, begun in 1846 and completed in 1847, was the second complete road built. Its track of eight miles took the place of the earlier stage route round the Lachine rapids. Five years later an extension, the Lake St Louis and Province Line, was built from Caughnawaga, on the opposite shore of the St Lawrence, to the boundary and beyond to Mooer's Junction, where it made connection with American roads, and thus offered a route from Montreal to New York rivalling the older Champlain and St Lawrence route. A steam ferry, which could carry a locomotive and three loaded cars, was used for crossing from Lachine to Caughnawaga. The enlarged line, known as the Montreal and New York Railroad, did not prosper, and was eventually absorbed by its rival, the Champlain and St Lawrence. The third completed road, the St Lawrence and Industry Village, was also built in Lower Canada, running from Lanoraie on the north bank of the St Lawrence twelve miles to the village of Industry, later Joliette. It was opened for traffic in 1850, and was a road for use in summer only. Meanwhile, the desirability of building a road to circumvent Niagara had not escaped attention. In 1835 the Erie and Ontario Railroad was chartered, and in 1839 the line was opened from Queenston to Chippawa. The grades near Queenston were too steep for the locomotives of the day, and the road was operated by horses; even so, it halted a hundred feet above the level of the river, and failed to make good its promise as an effective portage route. In 1852 the charter was amended, and two years later the road was rebuilt from Chippawa to Niagara-on-the-Lake, and operated by steam. It was later extended to Fort Erie and absorbed by the Canada Southern.

More ambitious schemes were under way—the planning of the St Lawrence and Atlantic in Canada East, and of the Great Western and later the Northern in Canada West. These roads were all designed to secure for Canadian routes and Canadian ports a share of the through traffic of the West. They were all links in longer chains; the time of independent through roads had not yet come. The St Lawrence and Atlantic was built to secure the supremacy of the upper St Lawrence route by giving Montreal a winter outlet at Portland. The Northern, running from Lake Ontario at Toronto to Georgian Bay at Collingwood, was a magnified portage road, shortening by hundreds of miles the distance from Chicago and the upper lakes to the St Lawrence ports. The Great Western, connecting Buffalo and Detroit, was the central link in the shortest route between New York and Chicago. Not only were these roads important in themselves, but the experience acquired in the endeavour to finance and construct them largely determined the policy of the great era of railway construction which began with the chartering of the Grand Trunk.