Steel at the Sault : Francis H. Clergue, Sir James Dunn and the Algoma Steel Corporation, 1901-1956

Steel at the Sault focuses on the emergence of steelmaking at Sault Ste Marie, Ontario. As Canada's third-largest primary producer, Algoma Steel originated in the adventures of its two founders - the flamboyant American promoter F.H. Clergue and the 'last of the multimillionaires,' Sir James Dunn. Algoma's troubled but ultimately fruitful evolution cannot be explained in terms of daring, if at times devious, entrepreneurship along. The dictates of geology, corporate management, and industrial economics also play a crucial role, as do the intricacies of Canadian federalism. The principle thread in the pattern of development, McDowall argues, has been the symbiotic relationship of businessmen and politicians - a relationship typified by the friendship of Sir James Dunn and C.D. Howe, who joined forces at the Sault to pursue the common goal of increased steel production, albeit for different reasons and rewards. Contents 7 ACKNOWLEDGMENTS 9 Introduction 23 1. The Iron and Steel Industry in Ontario: Troubled Beginnings to the 1890s 30 2. Iron and Steel in 'New Ontario' 45 3. Rails and Shells: Algoma Steel and the Precarious Rewards of National Prosperity 1905-19 72 4. Frustrated Ambitions: Algoma Steel in the 1920s 91 5. A New Brunswicker in the 'Financial Aristocracy' of Europe: Sir James Hamet Dunn 1900-30 117 6. Cutting the Gordian Knot: Sir James Dunn and the Takeover of Algoma Steel 1930–5 146 7. The Road to Recovery: Sir James Dunn and Algoma Steel 1935-9 174 8. Algoma Steel and the Second World War: Steel in a Regulated Economy 200 9. An Empire Realized: Dunn and Algoma Steel 1945–56 234 Conclusion 270 MAP AND DIAGRAMS 282 NOTE ON SOURCES 285 NOTES 289 INDEX 339