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Northern Ontario History

A Northern Province for Ontario? – by Livio Di Matteo (Part 2 of 2)

Originally published in February,1997

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario.  Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

These figures suggest that a province of northern Ontario would be as viable economically as Saskatchewan, Manitoba or any other of the Atlantic provinces and should be able to
generate comparable levels of government expenditure and revenue. – Livio Di Matteo

While the North would definitely have been economically viable as a separate province at the turn of the century, that does not mean it still would be today. Modern northern Ontario has seen a decline in its traditional natural resource and transportation employment base. Since the mid-twentieth century, the north’s economy and population have grown at a much slower rate than the south and the north has possessed a chronically higher unemployment rate. Since the 1960s, the north’s economy has been supported by a substantial expansion of government spending to the point where the broader public sector accounts for nearly one-third of the labour force.  

As well there has been a decline in the importance of natural resource revenues to the Ontario government to the point to where they account for barely one percent of provincial revenue.  Combined with the higher per capita cost of providing government services in the north, the implication is that the last twenty-five years have seen a reversal of the traditional fiscal flows from the north to the south.

Nevertheless, interesting questions are what an economy of northern Ontario would look like in terms of  size and whether it would provide the necessary tax base for our current level of government services. Unfortunately, estimates of Gross Domestic Product (GDP) are not provided on a regional basis. However, using data from the 1991 census, it is possible to construct a crude approximation to the region’s GDP using household income data which yields a regional output of nearly 21 billion dollars. With a population of about 870,000, the economy of northern Ontario would be at the middle ranks of Canada’s provinces. Northern Ontario’s economy would be bigger than any one of the Atlantic provinces, slightly smaller than Manitoba’s and about the same size as Saskatchewan.

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A Northern Province for Ontario? – by Livio Di Matteo (Part 1 of 2)

Originally published in February,1997

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario.  Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Between 1867 and 1899, the timber industry produced about 28 percent of total provincial revenues. These revenues contributing greatly to the welfare of Ontario citizens. Whereas northern Ontario accounted for at best 10 percent of the province’s population it consistently provided about one quarter of the province’s total revenue. – Livio Di Matteo

There are periodic calls for Northern Ontario to form a separate province, which seem to surface whenever the north feels it is being poorly treated by the provincial government.  The demand for a separate province feeds on the large amount of northern lore regarding the supposedly exploitative nature of the relationship between the north and southern Ontario.  A persistent theme in northern Ontario history is that it served as a natural resource frontier for the economy of the industrialized south by providing resource inputs into southern industry.  Moreover, much importance is attached to the natural resource rents from forests and mines which provided the Ontario government with a large proportion of its tax revenue in the first half of this century.

The case that usually follows is that northerners should have their own province so that the economic benefits from northern resources are retained for northerners.  The failure of the north’s economy to grow at the same rate as the south over the last 30 years, with the subsequent outmigration of youth, is blamed on the absence of provincial status and the ability to control our own economic destiny.  The implicit argument is that the North would be better off economically as a province though there have not been any arguments rooted in economic analysis to evaluate this point.  Moreover, given that the market for natural resources is international in scope, no explanation of how being a separate province might change the terms of trade for northern Ontario resources has been offered.

The best case for a province of northern Ontario rests in the past during the period 1870 to 1920 which was a time of rapid growth on par with the Prairies.  However, the Prairies were federal territories which obtained provincial status while northern Ontario remained part of Ontario. 

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Breakaway Country [Northwestern Ontario] – by Livio Di Matteo

The National Post is Canada’s second largest national paper. This article was originally published in the Financial Post on September 06, 2006.

Livio Di Matteo is professor of economics at Lakehead University in Thunder Bay, Ontario, and a co-author of a recent paper in Canadian Public Policy dealing with “Mantario.”

How can we empower people in these regions to help solve their own problems rather than wait for a supplicated solution from a pharaoh in a distant capital? In an act of supreme neglect, the Canadian federation has allowed its vital “zone of transit” [Northwestern Ontario] to decline to the point where an errant moose could choke the lifeblood of the nation. – Livio Di Matteo (Sept/06)

The isolated residents of northwestern Ontario are tired of life as a resource extraction colony. One option would be to create a new province – Mantario

The northwestern portion of Ontario, comprising the Districts of Thunder Bay, Kenora and Rainy River, represents 60% of Ontario’s land and an area the size of France. It was an imperial acquisition of the 19th-century when the province viewed itself as “Empire Ontario.”

It is a region rich in natural resources but sparse in population, and yet it is vital to the Canadian federation as an east-west transport corridor for road, ship and rail. Indeed, one can only imagine how different Canadian history might have been had northwestern Ontario become part of Minnesota. While alienation from Southern Ontario has affected all of Northern Ontario, sparking periodic calls to separate, the feeling has become particularly acute in the region stretching from White River to Kenora.

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Thirty-Eight Years of Progress [Timmins History]– by Norman E. Green

A Brief History of the Porcupine District

Hollinger Consolidated Gold Mines Limited: Public Relations Section – Timmins (This document was published between 1947 and 1949.

More than two hundred years before gold was discovered in the Porcupine, a narrow winding trail made its way from Porcupine Lake to the Mattagami River. Indians and Trappers, carrying canoes and heavy packsacks on their backs, crossed this trail many times, intent only on reaching their destination at either end and continuing their journey.

Little did they realize that beneath their feet, in places close enough to be marked by their boots, lay unmeasured wealth, gold which has since played a prominent pat in all phases of the history of our country.

Following the discovery of silver at Cobalt, and the development of that area, interest in the possibility of similar deposits in the Porcupine district was aroused. In 1896, 1898, 1899, 1903, 1905, and 1906, parties of government surveyors working in the district were impressed by the nature of the country and the possibilities it offered. In 1908, Dr. W. A. Parks, of Toronto University, examined the district and in his report stated: “I regard the region south of Porcupine Lake as giving promise to the prospector.”

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Timmins Unhappy With Canadian Hall of Fame Gold Discoverers Exclusions – by Gregory Reynolds

This column was originally published in the Late Summer, 2010 issue of Highgrader Magazine which is committed to serve the interests of northerners by bringing the issues, concerns and culture of the north to the world through the writings and art of award-winning journalists as well as talented freelance artists, writers and photographers.

Timmins Owes its Very Existence to Six Men Not Three!

Timmins city clerk Jack Watson says with a note of bitterness in his voice:
“We submitted all six and were upset with the decision. We appealed but lost.”

The community that calls itself The City With a Heart of Gold has every right to the motto because literally the ground beneath it, the heart of Mother Earth, has arteries of gold.

There has been gold production in Timmins continuously since 1910 and it will continue for  many more decades. There is no reason for a thriving modern city to be located in the middle of nowhere; there is no port to support international trade, no junction of railways, no meeting of highways that is a destination point.

Yet, Timmins is in the midst of a four-year celebration of 100 years of history and achievements.

No achievement was greater than the exploits of these six men: Sandy McIntyre, Hans Buttner, Harry Preston, John (Jack) Wilson, Benny Hollinger and Alex Gillies.

They discovered in 1909 the gold deposits that became the Big Three producers in Canadian mining history, the Dome (1910-still in production), the Hollinger (1910-1968) and the McIntyre (1912-1988).

Yet earlier this year the Canadian Mining Hall of Fame inducted just three of the six into its illustrious membership. Wilson and Harry Preston found the gold outcrop that was to become the Dome or as its workers fondly called it, The Big Dome. Only Wilson made into the Hall.

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Michael Barnes Keeps Northern Ontario’s Mining Heritage Alive – by Adelle Larmour

Established in 1980, Northern Ontario Business  provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. This article is from the November, 2010 issue.

Chronicled the North’s Facinating History and Folklore

Humility and hard work has kept one Ontario author’s pen to the parchment. 

Michael Barnes, a prolific Haliburton-based writer and author of several Canadian bestsellers, describes himself as a middle-rank writer that people don’t remember. Yet he has produced more than 50 books, the majority of them about the history of Northern Ontario.

“I’m one of those people that fill up bookshelves in libraries,” he said.

Even though people may not remember his name, they recognize him as the fellow who writes mining books. “That doesn’t bother me. I would rather have the guy up the hydro pole shout down and say: ‘I just read your latest book.’… I want them in the hands of the average person.”

His written contribution to preserving the history of Ontario’s North was recognized by the Canadian government when he was named a Member of the Order of Canada in 1994.

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Chile Mine Rescue Teaches Us That Modern Civilization Built on Mining — John R. Hunt (On the Rocks)

I spent most of one night and the next day watching the rescue of the Chilean miners. Like most people I am delighted, and a little surprised, that the rescue was successful. The news they are likely to make a very healthy buck out of their adventure is also pleasing.

I thought the commentators missed one point when they were pontificating about mining and miners. If it were not for the metal ore miners dig up, modern civilization could not exist. This is not an exaggeration. Just walk around your home and consider all the things made out of metal, or held together with metal.

Plastics have replaced some metal but I even your computer has some vital bits of gold and other precious metals performing tasks I do not understand and cannot spell. That awful tangle of wires that connect your computer, printer, scanner and also connect to the power source are most likely made of copper, possibly from the same mine the 33 Chileans were trapped in.

Mining is dangerous, even if safety regulations have made mining a lot safer in Canada than in many other countries. Even as this is written there is news of miners trapped beneath the surface in Ecuador and a much bigger and nastier accident in China.

According to many reports the Chinese mines kill more than 2,000 miners a year. There are not only many big operations which can be supervised but also many illegal small mines where anything goes.

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Elliot Lake Uranium Mining History – Our Wild Atomic City – by Alan Phillips (Originally Published in Maclean’s Magazine – May 25, 1957)

Denison Mine was the largest uranium deposit in Elliot Lake, Ontario.

Here’s a Graphic Picture of Ontario’s Elliot Lake

A billion-dollar order for uranium
A $300-million spending spree to fill it
A lawless horde of transients
A Communist struggle to control mine workers
A serious outbreak of disease

Just off the Trans-Canada Highway skirting Lake Huron’s north shore, a buried vein of ore snakes north through the Algoma Basin in the shape of an upside-down S. It curves for ninety miles beneath the pineclad granite knolls, a mother lode that is spawning eleven giant uranium mines in the greatest eruption of growth since gold gave birth to Dawson City.

The hub of these mines is a chaotic city-to-be called Elliot Lake. Twenty-two months ago it was just a stand of timber dividing two lakes, so wild that a bulldozer leveling brush ran over a large black bear. Today it’s a prime example of a boom town, familiar symbol of dynamic growth – and trouble.

For a couple of months this spring Elliot Lake made headlines that had nothing to do with uranium. An outbreak of jaundice packed ninety victims into nearby Blind River’s 59-bed hospital. About three hundred cases were reported before the disease began to wane early last month. Provincial health officials insisted that the outbreak did not rate as an epidemic while union officials were demanding the mines shut down until the sewage system was improved.

Infectious disease is an age-old bugbear of the boom town, which has its other ageless features. It is the nation in miniature with its time span speeded up as in a silent movie.

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February 29, 1912 Speech to the Empire Club by Professor Arthur P. Coleman, University of Toronto – Ontario Mines and Miners

The Empire Club of Canada, established in 1903, in Toronto is recognized as one of Canada’s oldest and largest speakers’ forums with a membership comprised of some of Canada’s most influential leaders from the professions, business, labour, education and government. Over its history it has been addressed by more than 3500 prominent Canadian and international leaders – men and women who have distinguished themselves in many fields of endeavour.

The Empire Club’s luncheon meetings attract audiences of 200 to 1,000 and usually take place on Thursdays at the Fairmont Royal York Hotel from September through June. Consult their events page for a detailed listing of this year’s events and links to their reservation forms. The addresses are broadcast on Rogers Television and many attract newspaper reports and editorial comment.

Ontario Mines and Miners (February 29, 1912)

Mr. President and Gentlemen,

Probably some of you are not quite familiar with the fact that Ontario has been a mining country for a very long time. Nearly 100 years ago, in 1815, a little iron mine was worked on the north shore of Lake Erie, of all places in the world, and a certain amount of iron was smelted, about a ton a day. It was poured right into moulds to make potash kettles and stoves, for which there was good sale. This was quite a prosperous mining industry for a time, but there were ups and downs, and in two or three years the industry disappeared, and now one cannot even find the ruins of the old smelter.

Then came copper mining, about half way through the century, begun by two English companies on the north shore of Lake Huron at Bruce Mines. They have been revived once in awhile in later times, but have not amounted to much since those early days when they were prosperous.

Then came the turn for gold. The present generation thinks there never was any gold mining before Porcupine was discovered; but gold was found in earlier years over many parts of northern Ontario, and you can scarcely go fifty miles through the whole width of the province without seeing abandoned gold mines. Gold was first struck in 1856 in the township of Madoc and one or two adjoining townships.

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A History of the Canadian Shield – Canada’s Mineral Treasure Trove – David Kilgour (Part 2 of 2)

The Honourable David Kilgour P.C., is the Conservative Member of Parliament for Edmonton Southeast. http://www.david-kilgour.com/mp/house.htm

North of the Fiftieth Parallel

In addition to its northeast and northwest, Ontario also has another north, the one beyond the fiftieth parallel where boreal forests become tundra. Sioux Lookout, Moosonee and Red Lake/Balmertown are its major cities; places like Pickle Lake and Ear Falls are its “towns.” Most of its approximately 30,000 residents live in isolated communities, accessible mostly by bush planes.

Culturally, the various Ontario Norths differ both from each other and from the southern part of the province. Many non-British newcomers reached parts of northern Ontario and Prairie Canada in roughly equal numbers and at about the same time. Today, despite the passage of three generations, multiculturalism has triumphed in numerous northern communities.

Francophones are found everywhere in northern Ontario, although most numerous in the northeast, and today command reasonable access to francophone education, radio and health services in a number of census districts. A second major group is the aboriginal peoples who predominate “north of fifty” either as status Indians, with treaty rights, as non-status Indians, or as Métis. Ojibway is spoken in the south; Ojibway and Cree in the centre; Cree only in the north. Band councils and Band chiefs are the municipal governments of these peoples. It troubles small native communities who live from fishing and hunting that their band chairmen are not yet recognized by Queen’s Park and Ottawa as they are by other Indians.

The living conditions of Ontario aboriginals tend to vary with the situation of the neighbouring white centres. The Fort William band members near Thunder Bay live quite well; conditions for people living near less prosperous centres are often outrageous. Native communities in some remote reserves compare unfavourably with settlements in developing world nations. Virtually nowhere today do hunting, fishing, trapping, and wild rice harvesting provide decent livings. High school and junior education is generally inadequate for young persons choosing either to remain in the north or to seek future-oriented jobs in the south.

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A History of the Canadian Shield – Canada’s Mineral Treasure Trove – David Kilgour (Part 1 of 2)

The Honourable David Kilgour P.C., is the Conservative Member of Parliament for Edmonton Southeast. http://www.david-kilgour.com/mp/house.htm

The Canadian Shield is, to most Canadians and foreigners alike, the quintessential Canada. I share this view having lived in the Gatineau Park spur of it for more than a decade and having often vacationed at Lake of the Woods for many more years. In countless ways, the Shield is idyllic. I think, for example, of the hundreds of motor boats which gather each July 1st in Kenora Bay at the north end of Lake of the Woods to watch Canada Day fireworks. Mingled with townspeople at these annual events under the stars are summer residents from all over the country. Many would move to the area to live year round if they could somehow earn a living; some do.

Approximately two million Québeckers and Ontarians combined live on the Canadian Shield. Since its borders are physical rather than political, residents on both sides of the provincial boundary lack effective structures through which they can pursue common regional concerns. The north of both provinces contains relatively thinly-populated frontier hinterlands; for many years, each of them has had only a limited influence on its respective provincial parliament and upon Ottawa policy makers.

The Shield in fact occupies more than forty per cent of our national territory across five provinces, but contains only eight per cent of our national population. In recent years, vigorous natural resource competition from developing countries, a declining resource-orientation of the world economy, and the weakened political position of the American economy have reduced mineral exploration and development across the region. Decades ago, it also contributed to the development of our national self-identity through the art of the Group of Seven and considerable writing about Northern self-reliance.

John Diefenbaker’s view that our national future lay in harnessing the distant North was popular in its day.

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Brief History of Ontario Mining

Prospecting and Developing

Ontario has become one of the most fortunate and richest regions of the world primarily for two reasons. It has vast natural resources including mineral deposits of untold potential. The increasingly complex skills and knowledge necessary for the discovery and development of these deposits have been acquired, refined and applied vigorously by residents of Ontario with growing sophistication during the last 200 years.

Although native peoples knew of some of its mineral deposits and drew on them to meet their own needs, the extent of Ontario’s mineral potential did not begin to become clear until major discoveries of silver and gold were made early in the 20th century on the province’s section of the Precambrian Shield, Canada’s primary geological formation. Massive deposits of copper-nickel ores had been uncovered near Sudbury in the 1880s. But knowledge of their presence did little to change the prevailing view that the Precambrian region of northern Ontario was a barrier to progress. Something of the character of that region, and of what had to occur before its rocks would yield up their riches, may be found in the poetry of Robert W. Service:

I am the land that listens, I am the land that broods;
Steeped in eternal beauty, crystalline waters and woods.
Long have I waited lonely, shunned as a thing accurst,
Monstrous, moody, pathetic, the last of the lands and the first;
Wild and wide are my borders, stern as death is my sway,
And I wait for the men who will win me — and I will not be won in a day.

Men and women, with the qualities that Robert Service identified, settled in Ontario as the 19th century ended and the 20th century began. The record of how they and successive generations transformed its mineral potential into the reality of wealth, with few of them becoming rich in the process, is a central though often neglected feature of the history of Ontario and Canada. Indeed, the emergence of Ontario as the most populous and wealthiest Canadian province, and of Canada as an industrialized and respected nation, cannot be fully understood without some appreciation of the key roles that prospecting and mining have played in that development.

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Brief History of Northern Ontario

This brief history was originally posted on the Ontario Ministry of Northern Development, Mines and Forestry www.mndm.gov.on.ca

The largest single population increase in the history of Northern Ontario
occurred in the 1950s during a period of unprecedented economic prosperity.
The boom, mostly in the mining sector, pushed the population from 536,000
in 1951 to 722,000 in 1961.

Northern Ontario a Vast and Magnificent Land

Northern Ontario is a unique land sculpted by geology, tempered by climate. Imagine more than a million square kilometre expanse of Precambrian forests and lakes punctuated occasionally by towns and cities — a contrast to the flat, populous, lowland area that is southern Ontario.

Northerners believe that living on this ruggedly beautiful land and battling climatic extremes has imbued them with a distinctiveness.

The mists of time in Northern Ontario lift 9,000 years ago with the arrival of the ancestors of First Nations people. From them descended the woodland, hunter-gatherer societies of the Algonkian culture.

The first European forays into the area came in the early 17th century by explorers from competing colonial empires, England’s Henry Hudson and France’s Samuel de Champlain. Initially, they were looking for a shorter trade route to Asia. They found something else, a land blessed with fur, which was in great demand in Europe.

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The Arrogance of Inco – by Val Ross (Originally Published in May 1979 – Part 3 of 4)

“The Arrogance of Inco” was originally published as the cover story in the May, 1979 issue of Canadian Business. Reporter Val Ross, who died in 2008, spent two and a half months researching and writing this lengthy expose of the then Inco Limited. It has become a “classic must read” for anyone wishing to understand the often bitter history between Sudbury and the company that defined the Canadian mining industry.

3-Foreign Wars, Foreign Conquests

World War One boosted International Nickel up fortune’s wheel. The demands of World War Two and the Cold War arms race would put the company over the top – and heading down.

In the second half of the century Inco reaped the consequences of what it had sowed in the first the demand it had created for nickel ultimately exceeded its capacity to produce it – and left a vacuum for new producers to fill. Its booming good health attracted envy from customers, who might, had Inco been less arrogant, have felt more loyalty to the company when the chips were down; and it also attracted the critical attention of governments, consumer groups and environmentalists.

No one foresaw this, of course. The company’s chairman and president during World War Two, Robert Crooks Stanley, the man who’d spent four decades of his life convincing the world of nickel’s place in civilian life, made the necessary adjustments to war in a spirit of confident responsibility. “The first obligation of every corporation,” he noted serenely, “is to give the utmost support to his [sic] government in the prosecution of the war.” He plowed $38.5 million of the company’s money into boosting production by 20% and expanding the Huntington rolling mill facilities. Just as in World War One, the company nearly doubled its nickel output. But to do so it sacrificed costs, efficiency and profits, which dropped from $37 million in 1939 to $25 million in 1945.

Meanwhile, Stanley’s friend and fellow board member, John Foster Dulles, was creating a niche for himself in the postwar world. Dulles chaired the corporate heavyweight Committee for a Just and Durable Peace sponsored by the National Council of Churches of Christ in America; advised the American delegation at the United Nations conference, and made more and more friends with the Republican party establishment. It must have seemed to the board of directors that the company’s postwar position would surely be enhanced by friends with such political power.

They were wrong.

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The Arrogance of Inco – by Val Ross (Originally Published in May 1979 – Part 2 of 4)

“The Arrogance of Inco” was originally published as the cover story in the May, 1979 issue of Canadian Business. Reporter Val Ross, who died in 2008, spent two and a half months researching and writing this lengthy expose of the then Inco Limited. It has become a “classic must read” for anyone wishing to understand the often bitter history between Sudbury and the company that defined the Canadian mining industry.

2-The Monopoly Years

Whether the 20th century would belong to Canada, as Laurier had promised, was anybody’s guess, but it was clear from the start that it would have a place for the nickel from Canada.

No one was under the illusion that its control wasn’t solidly in American hands. The International Nickel Company’s chief executives were American, its refining operations were located in America, and so were its marketing policymakers.

When, in 1890, US Navy tests demonstrated that nickel-steel plate was impervious to shells fired at a velocity of 1,700 feet per second, the Glasgow Herald prophesized the dawn of a new age. “When irresistible nickel-plated breach loader confronts the impenetrable nickel-plated ironclad [vehicle], then…war as a fine art will have come to an end.”

On the contrary, nickel flourished in war-making and war-making flourished with the help of nickel. The Spanish-American War of 1898 demonstrated the invincibility of US nickel-steel-plated ships. Soon nickel was almost entirely a military material. Demand for it quickened in the dreadnought-building races between the Great Powers. Then, in 1914, the guns of war sounded, and nickel boomed. Between 1914 and 1918, the output of the Sudbury area mines more than doubled.

How awkward when it was learned in the middle of the war that some of this product was destined for German guns!

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