Reid Newfoundland Company Building a Railway Empire

The Reid Newfoundland Company was a major player in building a railway empire in the early 20th century.

The company's vision was to create a comprehensive railway system that would connect the island of Newfoundland to the rest of Canada.

The Reid Newfoundland Company's railway expansion was a massive undertaking that required significant investment and planning.

One of the company's most notable achievements was the construction of the Caribou Railway, which was completed in 1938.

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The Reid Newfoundland Company has a rich history that dates back to 1890. The company's beginnings started with the Newfoundland Government's plan to build a railway line from Whitbourne to Halls Bay at $15,600 per mile.

In 1892, George H. Middleton pulled out of the contract, but Reid negotiated with the government to operate the railway for 10 years in exchange for 5,000 acres of Crown Land per mile operated.

The company established the St. John's Street Railway Company in 1896 and was given permission to build the Petty Harbour Hydro Plant to supply power to it. Reid also negotiated a contract to build the railway from Whitbourne to Harbour Grace that same year.

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This contract gave Reid ownership of the entire railway for 50 years and an additional 5,000 acres of land for every mile built. Reid's land holdings grew to more than 6,500 square miles of forested land.

Reid was also allowed to purchase the St. John's dry-dock from the government for $325,000 as part of the 1896 contract.

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The Reid Newfoundland Company played a significant role in the development of the railway system in Newfoundland. The company was involved in the construction of several lines, with the Railway Contract of 1898 being a major point of controversy.

The contract granted Reid ownership of a telecommunications line, drydock ownership, rights to build the first hydroelectric plant in Newfoundland, and ownership of the railway after 50 years. This deal was highly advantageous for Reid, but raised concerns about the company's influence.

The Reid Newfoundland Company went on to operate an electrical railway for street cars in St. John's, powered by the hydro plant they built in Petty Harbour.

In 1897, the government eagerly anticipated development on the west coast, as soon as the French Shore question was settled. The construction of the railway was substantially completed that year.

The Reid family was anxious to build on their success in constructing the line and proceed with developing the extensive land holdings acquired under the operating contract of 1893. With construction completed, the Whiteway government faced the prospect of 2000 railway labourers being thrown out of work on the eve of a general election.

R.G. Reid was contracted to construct three branch lines to alleviate the situation: from Clarke's Beach to Tilton, from Harbour Grace to Carbonear, and from Notre Dame Junction to Lewisporte. Enabling legislation was passed to allow consolidation of the various railway lines under Reid.

A new government led by Sir James S. Winter and Finance Minister A.B. Morine began to negotiate the consolidation contract, resulting in an astonishing new vision. The railway contract of 1898 gave the Reids astonishing influence, allowing them to operate the railway for 50 years and then own it outright.

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The contract granted the Reids further lands, exceeding four million acres, as well as other significant assets, including the St. John's drydock, eight coastal steamers, and the government telegraph. The Reids were also tasked with developing the first hydro-electric power in the country and establishing a streetcar system in St. John's.

The first major industrial advantage of the railway was seen in the sawmilling industry, which benefited from improved access to the interior of Newfoundland.

New mills were established at Terra Nova, Benton, and Norris Arm, thanks to the railway's "development road" approach.

R.G. Reid's efforts to attract investors to the area paid off in 1898, when Lewis Miller, a Scottish lumberman, became interested in central Newfoundland pine.

By 1903, Miller had sold his timber rights to a consortium that included W.D. Reid and Harry Crowe, Newfoundland Timber Estates Ltd.

The pulp and paper industry also began to take off, with the British Harmsworths settling on central Newfoundland as the ideal location for their new mill.

They chose Grand Falls as the site for their mill and reached an agreement with local timber license holders to secure the necessary timber rights.

The uncertain status of the French Shore and Reid's interest in developing Grand Lake were key factors in the Harmsworths' decision to invest in central Newfoundland.

The Reid Newfoundland Company had a significant stake in the land and resources of the region. They received land grants in 1893, which allowed them to operate the Placentia branch and the main line west from Placentia Junction to Port aux Basques for ten years.

These land grants consisted of 5,000 acres per mile of track operated, taken in alternating blocks on either side of the line, eight miles deep with one or two miles frontage. This was a standard practice in Canada at the time.

Reid had the option of selecting alternative lands if the land along the railway was deemed unsuitable. This flexibility was likely a relief to the company, given the vast and often rugged terrain of the region.

Additional land grants were made under the 1898 contract, but these were more contentious. The government was eager to secure continued operation beyond 1903, as well as to develop the interior of the region, in which Reid had a significant stake.

The Reid Newfoundland Company's history is marked by controversy and significant contracts. The company had too much power, with the Reid family being the largest employer in Newfoundland, surpassing the government in 1911.

Concerns were raised about the Railway Contract of 1898, which granted Reid ownership of a telecommunications line, drydock, rights to build the first hydroelectric plant, and ownership of the railway after 50 years. This deal was a major point of contention.

The Reid family offered to sell the railway and steamships to the government in 1903, but their proposal was declined. R.G. Reid then offered to sell the railway again in 1909, after the People's party won the election with Reid's backing.

The Reid Newfoundland Company was rewarded with contracts to build five new branch lines in 1909, which covered the railway's annual operating losses. The company's profits from construction of the branches allowed plans for development based on Grand Lake and the Humber River system to move forward.

The Reid family's significant political influence was a key factor in their success, with the company being the largest landowner in Newfoundland. This allowed them to develop the forestry and pulp and paper industries.

The Reid Newfoundland Company made several offers to sell to the government, but were refused. However, after the company encouraged Newfoundland to join Canada in 1915-1916, the government eventually agreed to purchase the railway in 1923. The Railway Settlement Act closed, with the government assuming operation of the railway and paying Reid Newfoundland Company $2 million.