Midland Railway of Canada
Encyclopedia
The Midland Railway of Canada was a historical Canadian
railway which ran from Port Hope
, Ontario
to Midland
on Georgian Bay
.
and the company was originally named The Peterborough and Port Hope Railway Company, chartered December 16, 1846. Six years elapsed and nothing was done about it. On December 18, 1854, a new charter was issued for a line of railway from Port Hope to Lindsay
, with hopes of eventually extending to Lake Simcoe
. It was named The Port Hope, Lindsay and Beaverton Railway Company.
, January 1, 1871, the road planned a more ambitious expansion to the waters of Georgian Bay
, renaming the road The Midland Railway of Canada, on December 24, 1869.
was replaced by Adolf Hugel of Pittsburgh. Hugel invested money in steel rails and struggled to cut costs. In recognition of his efforts to improve the line the British bondholders agreed in 1874 to lower the rate on their investments, and not to cash the interest coupons.
Net earnings and the ability to pay interest on the fixed debt declined sharply after 1875, the Midland was insolvent
and the ownership of the line essentially passed to the bondholders. The Chairman of their Committee was Sir Henry Tyler of the Grand Trunk Railway
and most of the other members were GTR nominees. When George Albertus Cox
, a prosperous insurance agent for Canada Life
and several times Mayor of Peterborough
, took over as President of the MR in August 1878 it was soon apparent that here was a character with a natural affinity for making money who would shake things up. He vowed on his first day with Canada Life that he would become its President, which he did in 1900, and his insurance branch in Peterborough was soon doing half the company’s business.
Cox first floated a proposal to purchase the Toronto and Nipissing Railway
in July 1881 in order to gain the supreme prize of direct Midland Railway access to Toronto. Negotiations continued throughout the Fall and Winter when the shareholders and bondholders were presented with a proposal for ‘Approving an agreement between the Toronto and Nipissing Railway Company; the Whitby, Port Perry and Lindsay Company, the Victoria Railway Company, the Toronto and Ottawa Railway Company; the Grand Junction Railway Company and the Midland Railway Company for the purpose of consolidating said companies into one company, under the name of the Midland Railway of Canada.’
The T&NR and the Midland Railway had always maintained good relations and since it was certain that the T&NR could not long survive in its present form, work commenced during the negotiations to lay a third rail
from Midland Junction to Scarborough Junction. The first through passenger train from Peterborough to Toronto ran on December 15 1881. An Act enabling the merger came into force on Saturday April 1 1882 and on that day the first official trains of the new Midland Railway of Canada travelled the system. On January 1 1884 the GTR finally consolidated its hold on the Midland group of companies by leasing them; full ownership was obtained in 1893. It was eventually absorbed into the Canadian National Railway
system.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
railway which ran from Port Hope
Port Hope, Ontario
Port Hope is a municipality in Southern Ontario, Canada, about east of Toronto and about west of Kingston. It is located at the mouth of the Ganaraska River on the north shore of Lake Ontario, in the west end of Northumberland County...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
to Midland
Midland, Ontario
Midland is a town located on Georgian Bay in Simcoe County, Ontario, Canada.Situated at the southern end of Georgian Bay's 30,000 Islands, Midland is the economic centre of the region, with a 125-bed hospital and a local airport. It is the main town of the southern Georgian Bay area...
on Georgian Bay
Georgian Bay
Georgian Bay is a large bay of Lake Huron, located entirely within Ontario, Canada...
.
Early days
This railway was originally conceived as a rail link between Port Hope and PeterboroughPeterborough, Ontario
Peterborough is a city on the Otonabee River in southern Ontario, Canada, 125 kilometres northeast of Toronto. The population of the City of Peterborough was 74,898 as of the 2006 census, while the census metropolitan area has a population of 121,428 as of a 2009 estimate. It presently ranks...
and the company was originally named The Peterborough and Port Hope Railway Company, chartered December 16, 1846. Six years elapsed and nothing was done about it. On December 18, 1854, a new charter was issued for a line of railway from Port Hope to Lindsay
Lindsay, Ontario
Lindsay is a community of 19,361 people on the Scugog River in the Kawartha Lakes region of south-eastern Ontario, Canada. It is approximately west of Peterborough...
, with hopes of eventually extending to Lake Simcoe
Lake Simcoe
Lake Simcoe is a lake in Southern Ontario, Canada, the fourth-largest lake wholly in the province, after Lake Nipigon, Lac Seul, and Lake Nipissing. At the time of the first European contact in the 17th century the lake was called Ouentironk by the Huron natives...
. It was named The Port Hope, Lindsay and Beaverton Railway Company.
Expansion
Although it would be quite some time before the rails were pushed beyond Lindsay, more than a year before the line opened to BeavertonBeaverton, Ontario
Beaverton is a community in Brock Township in the Regional Municipality of Durham, Ontario, Canada.Originally part of Thorah Township in Ontario County, Beaverton was first settled in 1822. The settlement is located on Lake Simcoe at the mouth of the Beaver River...
, January 1, 1871, the road planned a more ambitious expansion to the waters of Georgian Bay
Georgian Bay
Georgian Bay is a large bay of Lake Huron, located entirely within Ontario, Canada...
, renaming the road The Midland Railway of Canada, on December 24, 1869.
Financial matters
The Midland Railway had started the 1870s in good financial condition. In 1870 its receipts were $242,157 against expenses of $113,227, an Operating Ratio of 47%. In 1872 Frank Shanly was awarded a contract to build a fifty-three mile extension from Beaverton to a terminus on Georgian Bay at Midland. There were unforeseen difficulties with the ground and a rapid increase in labour costs, which ruined Shanly. The Midland was financially strapped, could not afford to pay Shanly for the extras, and seized the contract back in February 1873. At the same time the recession hit freight receipts which fell by 30% between 1872 and 1874. The first Midland Railway manager D’Arcy E. Boulton of Cobourg, OntarioCobourg, Ontario
Cobourg is a town in the Canadian province of Ontario, located in Southern Ontario 95 km east of Toronto. It is the largest town in Northumberland County. Its nearest neighbour is Port Hope, to the west. It is located along Highway 401 and the former Highway 2...
was replaced by Adolf Hugel of Pittsburgh. Hugel invested money in steel rails and struggled to cut costs. In recognition of his efforts to improve the line the British bondholders agreed in 1874 to lower the rate on their investments, and not to cash the interest coupons.
Net earnings and the ability to pay interest on the fixed debt declined sharply after 1875, the Midland was insolvent
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
and the ownership of the line essentially passed to the bondholders. The Chairman of their Committee was Sir Henry Tyler of the Grand Trunk Railway
Grand Trunk Railway
The Grand Trunk Railway was a railway system which operated in the Canadian provinces of Quebec and Ontario, as well as the American states of Connecticut, Maine, Michigan, Massachusetts, New Hampshire, and Vermont. The railway was operated from headquarters in Montreal, Quebec; however, corporate...
and most of the other members were GTR nominees. When George Albertus Cox
George Albertus Cox
George Albertus Cox was a very prominent Canadian businessman and a member of the Canadian Senate.He was born in Colborne, Upper Canada in 1840. He began work as a telegraph operator for the Montreal Telegraph Company and became their agent in Peterborough, Ontario. In 1861, he became an agent for...
, a prosperous insurance agent for Canada Life
Canada Life Financial
Canada Life Financial Corporation is a Canadian company that offers life, health, and disability insurance for groups and individuals.Founded in 1847, it was acquired by The Great-West Life Assurance Company in 2003, after rejecting a hostile takeover bid by rival Manulife.Hugh Cossart Baker, Sr...
and several times Mayor of Peterborough
Peterborough, Ontario
Peterborough is a city on the Otonabee River in southern Ontario, Canada, 125 kilometres northeast of Toronto. The population of the City of Peterborough was 74,898 as of the 2006 census, while the census metropolitan area has a population of 121,428 as of a 2009 estimate. It presently ranks...
, took over as President of the MR in August 1878 it was soon apparent that here was a character with a natural affinity for making money who would shake things up. He vowed on his first day with Canada Life that he would become its President, which he did in 1900, and his insurance branch in Peterborough was soon doing half the company’s business.
Merger
The Midland (144 route miles) was surrounded by railways which also were not making money:- The Grand Junction Railway of Canada (90 route miles)
- The Belleville and North Hastings Railway (15 route miles)
- The Victoria RailwayVictoria RailwayThe Victoria Railway is an historic long Canadian railway that operated in Central Ontario. Construction under Chief Engineer James Ross began in 1874 from Lindsay, Ontario with authority to build through Victoria County to Haliburton, Ontario, to which it opened on...
(56 route miles) - The Whitby, Port Perry and Lindsay Railway (46½ route miles)
- The Toronto and Nipissing RailwayToronto and Nipissing RailwayThe Toronto and Nipissing Railway was chartered in 1868 to build a narrow gauge railway in Ontario, Canada from Toronto to Lake Nipissing, via York, Ontario, and Victoria Counties. It opened in 1871, with service between Scarborough and Uxbridge. By December 1872 it was extended to Coboconk...
(114 route miles of 3' 6" gauge)
Cox first floated a proposal to purchase the Toronto and Nipissing Railway
Toronto and Nipissing Railway
The Toronto and Nipissing Railway was chartered in 1868 to build a narrow gauge railway in Ontario, Canada from Toronto to Lake Nipissing, via York, Ontario, and Victoria Counties. It opened in 1871, with service between Scarborough and Uxbridge. By December 1872 it was extended to Coboconk...
in July 1881 in order to gain the supreme prize of direct Midland Railway access to Toronto. Negotiations continued throughout the Fall and Winter when the shareholders and bondholders were presented with a proposal for ‘Approving an agreement between the Toronto and Nipissing Railway Company; the Whitby, Port Perry and Lindsay Company, the Victoria Railway Company, the Toronto and Ottawa Railway Company; the Grand Junction Railway Company and the Midland Railway Company for the purpose of consolidating said companies into one company, under the name of the Midland Railway of Canada.’
The T&NR and the Midland Railway had always maintained good relations and since it was certain that the T&NR could not long survive in its present form, work commenced during the negotiations to lay a third rail
Dual gauge
A dual-gauge or mixed-gauge railway has railway track that allows trains of different gauges to use the same track. Generally, a dual-gauge railway consists of three rails, rather than the standard two rails. The two outer rails give the wider gauge, while one of the outer rails and the inner rail...
from Midland Junction to Scarborough Junction. The first through passenger train from Peterborough to Toronto ran on December 15 1881. An Act enabling the merger came into force on Saturday April 1 1882 and on that day the first official trains of the new Midland Railway of Canada travelled the system. On January 1 1884 the GTR finally consolidated its hold on the Midland group of companies by leasing them; full ownership was obtained in 1893. It was eventually absorbed into the Canadian National Railway
Canadian National Railway
The Canadian National Railway Company is a Canadian Class I railway headquartered in Montreal, Quebec. CN's slogan is "North America's Railroad"....
system.