The Opening of the St. Lawrence Seaway (1959)

From the July 1959 issue of the Socialist Standard

On April 25th last, the Canadian Government icebreaker D'Iberville moved into the locks opposite Montreal. Behind her were scores of other craft, decorated with bunting; helicopters were buzzing overhead and on the shores were hundreds of people who had got up early to watch the start of her voyage. For this was not only the end of the ice-bound winter season for Montreal; it was also the first journey into the recently completed St. Lawrence Seaway.

Opposition

At the formal opening ceremony last month, nobody wanted to mention the embarassing fact that, but for the opposition of the railroad interests in the U.S.A., the Seaway would have been built long before now. These interests, with the Canadian East Coast Ports of St. John and Halifax, feared the competition which the Seaway would offer, with its cheap transport from the Atlantic to the Great Lakes. Since the 1920’s, various Canadian Governments have wanted to go ahead with the project, but could not persuade the United States to co-operate. Finally, in 1951, the Canadians declared their intention of building the Seaway on their own. This forced the hand of the United States railway lobby, who did not want the Seaway—if it had to be built—to be completely beyond the influence of Washington. Even so, they insisted that tolls should be imposed on all craft using it; something the Canadian Government, which is traditionally opposed to canal tolls, found hard to swallow. Work started in 1954.

The Seaway is designed eventually to overcome the 602 feet difference in water level between the Atlantic and the Great Lakes. Most of this is concentrated between Lake Erie and Montreal; here we have some famous rapids and falls, the most spectacular of them at Niagara. These rapids have been an obstacle since the earliest days of exploration. In 1536, Jacques Cartier (who is credited with the discovery of the St.Lawrence River) was checked by the Lachine Rapids and in 1603 Samuel De Champlain was also held up near the same point. In the 18th century a one-foot canal was dug which allowed the small trading canoes to by-pass the rapids. Over the years this was deepened until in 1821 there was five feet of water available. Towards the end of the 19th century locks were built and the canals further deepened so that vessels lying 14 feet into the water could pass.

This system stayed until work was started on the Seaway, which is a series of 27 feet deep locks and canals from Lachine to Kingston, at the eastern end of Lake Ontario. Most of the merchant ships afloat can use it, being lifted more than 200 feet above sea level in the process. In addition, the Seaway Authority's powers extend to the Welland Ship Canal, which connects Lake Ontario and Lake Erie, and by-passes the Niagara Falls. Since 1932, the Welland Canal has been at least 25 feet deep; now it has been dredged to 27 feet. As a result, ships of up to 8,000 tons can sail from the Atlantic to Lake Erie—and, when canals connecting the other Lakes have also been dredged to 27 feet, to the farthest end of Lake Superior. A number of power dams have also been built, which will supply millions of kilowatts of hydroelectric power. The total cost was about £405 million, split between the Canadian and United States Governments.

Steel and Wheat

The territory around the Great Lakes contains about 40 per cent, of the population of the United States and Canada and some of the best agricultural land and richest industry in the whole of North America. The optimists reckon on about 40 million tons of cargo a year coming from these areas through the Seaway to the Atlantic. There is evidence that the Seaway was primarily intended as an economic stimulant and not as an aid to shipping, for only one third of the total cost was spent on navigational aids, the remainder going on the hydro-electric schemes. Indeed, the Seaway should do a lot to revive the Steel industry of the Middle West, whose resources of iron ore from the nearby Mesabi Range were almost exhausted during the war. Plans were being laid to move the steel mills to the east coast, within easy reach of ore from Venezuela and the recently opened fields in Labrador. Now the ore will travel conveniently and cheaply from Labrador through the Seaway—and the Steel works should stay put. According to The Economist of 25th April, it was the steel men’s support of the Seaway which made the U.S.A. Congress realise that they would also have to agree to it.

The Wheat trade will also be affected. Up to now, grain from Fort William and Port Arthur—(at the western end of Lake Superior)—has been shipped as far east as possible by vessels called “Lakers"—which, although they could sail freely over the lakes, were prevented by the shallow canals from moving past Lake Ontario. The grain was then loaded into smaller vessels to be taken to ports nearer the Atlantic and transferred to the oceangoing steamers. Now, the ’’Lakers” may sail direct to the Labrador port of Seven Islands to unload their grain, replacing it with iron ore for the return journey. Another possibility is that the grain may be shipped direct from Port Arthur and Fort William to Europe, sailing past Buffalo, Montreal and other ports which have prospered on the traffic. The Canadian Wheat Board expects that this will reduce the cost of freight by about 5 cents a bushel; in an effort to keep the grain trade, the ports have started a programme of capital investment. Montreal alone is to spend nearly £10 million on its grain elevator system, £6 million on wharves and £1¾ million on transit sheds.

Railways and Steamships

The Canadian railway system was in part developed on the assumption that ocean going ships would never get any farther up the St. Lawrence than Montreal. As a result, an intricate railway network now links the St. Lawrence and east coast ports with the interior. Rail freight charges are high and, to capture some of the traffic, the Fjell-Oranje Line in 1932 opened a regular service of small steamers direct from Europe to such ports as Toronto and Cleveland. This line has no interest in any inland freight system in Canada, and so could concentrate on a cheap steamship service. But organisations like the Canadian Pacific Railway Company, which has large investments in both steamships and railways, could hardly be expected to promote the cheaper steamship service to the Lakes at the expense of its railroads. Development of the direct Great Lakes service was therefore neglected, whilst the railways and the east coast ports also strenuously opposed the even greater threat of the Seaway.

After the second world war however, more shipping companies began services from Europe to the Great Lakes and in 1956 the two great transatlantic companies— Cunard and Canadian Pacific—had to open their own service, with boats on charter from a German company. Now nearly 30 lines offer a regular service and without enough cargo to fill their holds, they are in fierce competition. The Seaway has sharpened the struggle; new steamers are being specially built and a freight war has broken out between the combine (they call it a “Conference”)—which includes companies like Cunard, Canadian Pacific and Furness Withy—and the rest. The Canadian and .United States railway companies have joined this war and have forecast all round reductions in freight rates. The governments may also step in with some subsidies.

Uncertain Outlook

The future, as usual, is uncertain. There is considerable congestion at some points of the Seaway, particularly the Welland Canal, which now takes nearly twice as long to navigate as it did 20 years ago. Again, the St. Lawrence River is closed by ice for about 5 months of the year — ice which can form so quickly that sometimes ocean-going ships are trapped upstream. The Seaway means that the shipping companies must maintain an organisation at the Atlantic ports for the winter and one at the Great Lakes for the Summer. Many of them fear that this will cost more than anything they might save by using the Seaway. For several years they may have to absorb considerable losses and possibly reduce their services.

If there is a general cargo boom and if the railroad and steamship companies can sort out their differences and agree on an attractive combined rate, the Seaway will certainly prosper. These are big “ifs”; the whole thing was conceived, obstructed and finally built in a tug-of-war between interests wanting to realise a profit on their investments. In this crazy world, that is the measure by which the St. Lawrence Seaway will be judged.