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1 Chris Willmore 2 A barn near St. Adolphe, Manitoba (ca. 1920). Original photograph in the Anthologist’s collection. Cover Image: Dixon, S. J. (ca. 1890). Untitled (Toronto) [Photograph]. Anthologist’s collection. 3 STORIES FROM CANADA’S Economic History Collected From CONTEMPORARY NEWSPAPERS SECOND EDITION “And let us, ciphers to this great accompt, / On your imaginary forces work.” Shakespeare, Henry V, Act 1, Prologue CURATED, EDITED AND ANNOTATED BY Christopher Willmore Victoria, B.C., 2019 4 All articles in this collection are in the public domain in Canada; they were re–typed from their sources by Christopher Willmore. Edited Text and Annotations © Christopher Willmore 2019 ISBN 978–1–9992295–3–5 A Skeride Publication 5 To ELISHEA For Her Patience & MY PARENTS For Their Support 6 A QUICK NOTE This work is not intended as a comprehensive textbook, but as an invitation to explore. Don’t feel you have to read it cover–to–cover; feel free to flip through these pages and start reading whatever catches your interest. I find that part of the fun in reading from the past is seeing how language evolves. To that end, I’ve left spelling and punctuation mostly as it was in the original articles. Since these stories are drawn from newspapers, which were often printed on a tight deadline, there are more errors than usual in the source material. I have silently corrected obvious typos, and sometimes changed spelling to be internally consistent in each article. I have also added paragraph breaks for ease of reading, and broken up some run–on sentences with commas. All text in bold (save some article titles) is mine, as are all footnotes1 and [words in square brackets]. I’ve made use of the following standard devices to comment on the text: […] = “I’ve skipped some words here.” [sic.] = “I know this looks like a typo, but it was written that way in the original.” Ibid. = “Same source as the above.” It was common in the past for Canadian newspapers to use words that are now (and in many cases, were then) ethnic slurs, especially when writing about Indigenous people. I believe it is important to acknowledge that these hurtful terms were used, but I have no wish to either perpetuate them, or to introduce them to new audiences. I have therefore replaced such words with their first letters followed with several dashes, as in h––––– (referring to a person of mixed heritage), s––––– (an Indigenous woman) and s–––––h (an Indigenous man). That’s it! You’re all set – enjoy! C. WILLMORE 1 Like this one. 7 Table of Contents A QUICK NOTE .................................................................................................................................... 6 I. Newfoundla.

Education
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1 Chris Willmore 2 A barn near St. Adolphe, Manitoba (ca. 1920). Original photograph in the Anthologist’s collection.
Cover Image: Dixon, S. J. (ca. 1890). Untitled (Toronto) [Photograph]. Anthologist’s collection. 3 STORIES FROM CANADA’S Economic History Collected From CONTEMPORARY NEWSPAPERS SECOND EDITION “And let us, ciphers to this great accompt, / On your imaginary forces work.”
Shakespeare, Henry V, Act 1, Prologue CURATED, EDITED AND ANNOTATED BY Christopher Willmore Victoria, B.C., 2019 4
All articles in this collection are in the public domain in Canada; they were re–typed from their sources by Christopher Willmore. Edited Text and Annotations © Christopher Willmore 2019 ISBN 978–1–9992295–3–5 A Skeride Publication 5 To ELISHEA
For Her Patience & MY PARENTS For Their Support 6 A QUICK NOTE This work is not intended as a comprehensive textbook, but as an invitation to explore. Don’t feel you have to read it cover–to–cover; feel free to flip through these pages and start reading whatever catches your interest. I find that part of the fun in reading from the past is seeing how language evolves. To that end, I’ve left spelling and punctuation mostly as it was in the original articles.
Since these stories are drawn from newspapers, which were often printed on a tight deadline, there are more errors than usual in the source material. I have silently corrected obvious typos, and sometimes changed spelling to be internally consistent in each article. I have also added paragraph breaks for ease of reading, and broken up some run–on sentences with commas. All text in bold (save some article titles) is mine, as are all footnotes1 and [words in square brackets]. I’ve made use of the following standard devices to comment on the text: […] = “I’ve skipped some words here.” [sic.] = “I know this looks like a typo, but it was written that way in the original.” Ibid. = “Same source as the above.” It was common in the past for Canadian newspapers to use words that are now (and in many cases, were then) ethnic slurs, especially when writing about Indigenous people. I believe it is important to acknowledge that these hurtful terms were used, but I have no wish to either perpetuate them, or to introduce them to new audiences. I have therefore replaced such words with their first letters followed with several dashes, as in h––––– (referring to a person of mixed heritage), s––––– (an Indigenous woman) and s–––––h (an Indigenous man).
That’s it! You’re all set – enjoy! C. WILLMORE 1 Like this one. 7 Table of Contents A QUICK NOTE ............................................................................................... ..................................... 6 I. Newfoundland ............................................................................................... ........................19 1. A Natural History of Newfoundland’s Fisheries (1859) ................................................................. 20 2. Among the Fishermen of Newfoundland (1884) ........................................................................... 27
The Bait Act and its Aftermath ............................................................................................... .......... 31 3. No More Bait (1887) ............................................................................................... ................................. 31 4. Concerns About the Bait Act (1889) ............................................................................................... .......... 33 5. Realities of Competition with the French (1890)..................................................................................... .. 34 6. Suspension of the Bait Act (1893) ......................................................................................... ...... ............. 36 7. Waste of Herring Prior to the Bait Act (1896) ........................................................................................... 37 8. The Aftermath of the Bait Act (1896) ............................................................................................... ........ 38 Factors Influencing the Price of Cod ............................................................................................... .. 39 9. Song of the Fisherman (1889) ............................................................................................... ................... 39 10. Fishermen, Prepare for War! (1894) ............................................................................................... ........ 39 11. A Cod Cartel (1894) ............................................................................................... ................................. 41 12. The Codfish Cull (1894) .................................................................................... ...........
........................... 43 13. Abuses of the Truck System (1894) ............................................................................................... ......... 45 14. Smelly and Hard to Prepare (1903) ............................................................................................... ......... 47 The Crash of 1894 ............................................................................................... .............................. 48 15. No Calm Before the Storm (Early December, 1894) ................................................................................ 48 16. The Crash (December 10, 1894) ............................................................................................... .............. 50 17. The Aftermath (February, 1895) ............................................................................................... .............. 50 18. The Roots of All Trade (1894) ............................................................................................... .................. 51 19. A Run on Three Banks (May, 1895)...................................................................................... ................... 52 20. Signs of Recovery (November, 1895) ............................................................................................... ....... 53 Our Staple Product: The Letters of James Murray ............................................................................ 55 21. Relieving the Fish Market (July, 1897) ............................................................................................... ..... 55 22. Mr. Anderson Replies (July, 1897) ...............................................................................................
........... 56 23. The Price of Fish (July, 1897) ............................................................................................... ................... 57 24. Our Staple Product (July, 1897) ............................................................................................... ............... 59 25. On the Subject of Dry Codfish (July, 1897) .............................................................................................. 61 26. The Staple Industry (July, 1897) ............................................................................................... .............. 63 27. The Chief Consumers of Dried Codfish (July, 1897) ................................................................................. 64 28. The Final Letter (August, 1897) ............................................................................................... ............... 66 29. The Man Who Owned Half of Newfoundland (1898) .................................................................. 68 30. The Reids and Labrador (1907) ............................................................................................... .... 71 II. Fur ............................................................................................... .........................................73 Beavers and their Fur ............................................................................................... ........................ 74 1. The Beaver (1887) ............................................................................................... .................................... 74
2. One of the Romances of the French Regime (1918) .................................................................................. 77 3. The Beaver Club (1910) ............................................................................................... ............................. 78 4. ‘Made Beaver’ as a Currency (1921) ............................................................................................... .......... 80 Fashion and the Beaver Hat ............................................................................................... ............... 83 8 5. “Many in Number and so Absolutely Unlike” (1909) ................................................................................. 85 6. “Becoming and Refined” (1911) ............................................................................................... ................ 86 7. Mrs. Quain’s First Reception (1914) ............................................................................................... .......... 93 Edmonton and the Fur Trade ............................................................................................... ............. 93 8. The Founding of Edmonton (1921) ............................................................................................... ............ 93 9. How the Trade is Handled (1899) ............................................................................................... ............ 104 10. Seasonal Shipments (1899)
............................................................................................... ................... 106 11. The Revillons (1906) ............................................................................................... ............................. 109 12. Further History of the Revillons (1918) ............................................................................................... .. 111 13. Competition and Indigenous Fur Traders (1922) ................................................................................... 112 14. How Fur was Sold in London (1894) .......................................................................................... 113 Fur Farming ............................................................................................... ..................................... 117 15. Capacity and Quality Constraints to Trapping (1926) ............................................................................ 117 16. A Rapidly Developing Industry (1928) ............................................................................................... .... 118 17. A Russian Prince and Canadian Muskrat Rancher (1929) ...................................................................... 119 18. The Growth of Fur Farming (1935) ............................................................................................... ........ 120 19. A Demonstration of Dentistry (1934) ............................................................................................... .... 120 20. A Mink Factory (1949)..................................................................................... ..................................... 121 Freight and Transportation
............................................................................................... .............. 124 21. By Canoe (1920) ............................................................................................... ................................... 124 22. By Dog Train (1897) ............................................................................................... .............................. 127 23. By Cayoose (1883) ............................................................................................ ... ................................ 131 24. By Steamboat (1921) ............................................................................................... ............................ 133 Traders and Trappers ............................................................................................... ....................... 136 25. Silhouette of the Northern Fur Trapper (1909) ..................................................................................... 136 26. Wending Home (1907) ............................................................................................... .......................... 138 27. A Companionable Tobacco Pipe (1909) ............................................................................................... . 140 28. Jack Norris, Pioneer (1916) ............................................................................................... ................... 143 29. Pa–Ta of the Biigtigong Nishnaabeg (1923) .......................................................................................... 152 30. The Tales of Johnny Berens (1923) ............................................................................................... ........ 154 31. A Unique Family Gathering (1906)
............................................................................................... ........ 161 32. Number Sixteen (1894) ............................................................................................... ......................... 162 III. The Treaties, and After ............................................................................................... ....... 166 Starvation, the End of the Buffalo, and Sitting Bull......................................................................... 167 1. Conditions Near Battleford (1879) ............................................................................................... .......... 167 2. The Indians in Manitoba (1879) ............................................................................................... .............. 168 3. Starvation and Cattle Ranching in Alberta (1912) ................................................................................... 171 4. The Buffalo are Near Extinction (1882) ............................................................................................... .... 172 Land and the Treaties ............................................................................................... ...................... 174 5. An Early Treaty Talk (1849) ............................................................................................... ..................... 174 6. Treaties and the Mounted Police (1885) ............................................................................................... . 177 7. An Account of a Signing of Treaty 6 (1918) ............................................................................................. 179
8. A Treaty 6 Payment (1884) ....................................................................................... ........ ..................... 182 9. Indian Department Oxen and Treaty 6 (1884) ........................................................................................ 184 10. Denied Rations (1885) ............................................................................................... .......................... 186 11. Crowfoot’s Oration (1886) ............................................................................................... .................... 187 12. Hunger, Rations and Hayter Reed (1888)..................................................................................... ......... 189 13. The Signing of Treaty 8 (1899) ............................................................................................... ............... 191 9 14. “Nothing to be gained by being Indians” (1882) ................................................................................... 197 15. Speculation in Scrip (1911) ............................................................................................... .................... 198 16. Conflict Over Urban Land (1882) ............................................................................................... ........... 204 17. Minor Chiefs Swear Not to Sell Lands (1913) ........................................................................................ 206 18. The Life of Peter Hourie (1920) ............................................................................................... .. 207
The Potlatch ............................................................................................... .................................... 214 19. A Songhees Potlatch (1874) ............................................................................................... .................. 214 20. ‘Evils’ of the Potlatch (1896) ............................................................................................... ................. 215 21. “The Potlatch is Our Bank” (1896) ............................................................................................... ......... 216 22. The Potlatch Economy (1898) ............................................................................................... ............... 218 23. A Fort Rupert Potlatch (1899) ............................................................................................... ............... 220 24. Albert Edward Edenshaw, Chief of the Haidas (1897) ........................................................................... 221 25. A Potlatch in Settlement of Debts (1900) ............................................................................................. 222 26. Collecting Debts for the Potlatch (1902) ........................................................................................ ....... 223 27. “The Last Great Potlatch” of the Songhees (1910) ................................................................................ 225 28. The Indian Act’s Potlatch Ban (1913) ............................................................................................... ..... 226 29. “The Last of its Kind” (1922) ............................................................................................... .................. 227
30. The Feast of the Bear (1900) ............................................................................................... ...... 229 31. Sacket of the Quatsino First Nation (1895) ............................................................................... 233 The Oolichan................................................................................. .................................................. 235 32. Food and Light (1883) ............................................................................................... ........................... 235 33. Use and Preparation of the Oolichan (1885) ......................................................................................... 235 34. Catching the Candle–Fish (1884) ............................................................................................... ........... 237 Settler Perceptions of Indigenous Women ..................................................................................... 238 35. L. M. Montgomery on Saskatchewan (1891)..................................................................................... .... 238 36. How a Woman Should Dress (1892) ............................................................................................... ...... 241 37. “Woman’s Position Among the Indians” (1887) .................................................................................... 241 38. “Infinite Patience” (1911) ............................................................................................... ..................... 243 39. “The heavy end of the burden” (1911) ............................................................................................... .. 244
40. The Green Corn Dance of the Onondaga (1896) ........................................................................ 244 “Back and Forth from Time Immemorial” ....................................................................................... 248 41. Mrs. White–Feather and Mrs. Full–Moon (1925) .................................................................................. 2 48 42. “Two Women Turned Back” (1925) ............................................................................................... ....... 249 43. A Right, Interrupted (1925) ............................................................................. .................. ................... 250 44. “With Bag and Baggage Galore” (1908) ............................................................................................... . 251 45. “Tribes thus United” (1908) ............................................................................................... .................. 252 IV. Chinese Immigration ............................................................................................... .......... 255 Changing Perspectives on a Chinese Head Tax ............................................................................... 256 1. Mr. Bunster’s Argument (1871)..................................................................................... ......................... 256 2. A Motion for a Head Tax (1875) ............................................................................................... .............. 259 The Head Tax of 1878 ...............................................................................................
...................... 260 3. Difficulties Collecting the Tax (1878) ............................................................................................... ....... 260 4. ‘A Bathos of Meanness’ (1878) ............................................................................................... ............... 262 5. The Turning Point (1878) ............................................................................................... ........................ 263 6. The Strike (1878) ............................................................................................... .................................... 264 7. More ‘Inconvenience’ (1878) ............................................................................................... .................. 265 10 8. Chinese Cooks are not Easily Replaced (1878) ........................................................................................ 265 9. Collection of the Tax Resumes (1878) ............................................................................................... ..... 265 10. Unconstitutional and Void (1878) ............................................................................................... ......... 265 11. An Anti–Chinese Meeting (1885) .............................................................................................. 266 12. A “Monster Public Meeting” (1886) ..........................................................................................
268 The Occupations ............................................................................................... .............................. 268 13. Statistics of Victoria’s Chinese Trade (1901) ......................................................................................... 269 14. Catching Fish (1861) ............................................................................................... ............................. 269 15. A Chinese Restaurant (1883) ............................................................................................... ................. 270 16. Hing, the Chinese Servant (1885) ............................................................................................... .......... 270 17. Hing Celebrates the Chinese New Year (1885) ...................................................................................... 272 18. Farmers and Sanitation Workers (1891) ............................................................................................... 273 19. Sanitary Issues with Chinese Laundries (1908)..................................................................................... . 274 20. Improved Sanitation in Chinese Laundries (1908) ................................................................................. 275 The Fall of Kwong Lee ............................................................................................... ...................... 275 21. A Meeting in Chinatown (1884)..................................................................................... ....................... 275 22. The Second Meeting (1884) ...............................................................................................
.................. 276 23. An Auction of Goods (1885) ............................................................................................... .................. 276 Standard of Living and Way of Life ............................................................................................... .. 277 24. A Chattel Mortgage (1900) ............................................................................................... .................... 277 25. What’s in a Name? (1908) ............................................................................................... ..................... 278 26. Edmonton’s Chinese Community (1908) .............................................................................................. 279 27. An Edmontonian Aviator (1923) .................................................................................... ........... ............ 282 28. A Walk Through Victoria’s Chinatown (1886) ....................................................................................... 283 29. A Prosperous Tailor’s Household (1902) ............................................................................................... 287 30. Chinese New Year in Victoria (1903)..................................................................................... ................ 290 Victoria: Opium Smuggling Central ............................................................................................... .. 295 31. A ‘Lucrative Trade’ (1865) ............................................................................................... ..................... 295 32. “The Use of the Deadly Drug in Victoria” (1881)
................................................................................... 296 33. “Chinese and Opium Smuggling to the States” (1885) .......................................................................... 297 34. Canned Opium (1878) ............................................................................................... ........................... 298 The Business of Opium ............................................................................... ................ .................... 299 35. Dr. Helmcken’s License Fee (1865) ............................................................................................... ........ 299 36. Alcohol and Opium (1884) ............................................................................................... .................... 299 37. War and the Opium Trade (1894) ............................................................................................... .......... 300 The Beginning of the End for the Opium Industry........................................................................... 301 38. Low Prices from a Rival (1889) ............................................................................................... .............. 301 39. A Falling Chinese Population (1890) ............................................................................................... ...... 302 40. Lower Taxes are Bad for Smugglers (1894) ........................................................................................... 303 41. The Wilson Bill (1894) ............................................................................................... ........................... 304 42. A Celebration of the End (1894) ...............................................................................................
............ 305 Supply and Demand of Chinese Workers ........................................................................................ 306 43. “A Flood of Celestials” (1876)..................................................................................... .......................... 306 44. Where do they Come From? (1884) … Disclaimer: This is a machine generated PDF of selected content from our databases. This functionality is provided solely for your convenience and is in no way intended to replace original scanned PDF. Neither Cengage Learning nor its licensors make any representations or warranties with respect to the machine generated PDF. The PDF is automatically generated "AS IS" and "AS AVAILABLE" and are not retained in our systems. CENGAGE LEARNING AND ITS LICENSORS SPECIFICALLY DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES FOR AVAILABILITY, ACCURACY, TIMELINESS, COMPLETENESS, NON- INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Your use of the machine generated PDF is subject to all use restrictions contained in The Cengage Learning Subscription and License Agreement and/or the Gale OneFile: Business Terms and Conditions and by using the machine generated PDF functionality you agree to forgo any and all claims against Cengage Learning or its licensors for your use of the
machine generated PDF functionality and any output derived therefrom. North of the Colour Line: Sleeping Car Porters and the Battle Against Jim Crow on Canadian Rails, 1880-1920 Author: Mathieu, Sarah-Jane (Saje) Date: Spring 2001 From: Labour/Le Travail Publisher: Canadian Committee on Labour History Document Type: Article Length: 15,184 words Full Text: IN APRIL 1854, the Great Western Railway declared that it urgently needed eight hundred workers to guard its tracks against stray cattle and hog crossings. Its advertisement, strategically placed in Canada's most important black newspaper of the day, the Provincial Freeman, sought African Canadians for the task. [1] Before the turn of the century, African Canadian men laid down tracks for the transcontinental railroad and worked as cooks and dining car attendants for the Grand Trunk Railway. [2] Black railroaders became more prominent figures on Canadian rails by the 1870s when the Pullman Palace Car Company introduced sleeping car porters to Canada. [3] George Pullman advertised his porters much in the same way he did his opulent sleeping cars: both, he promised, would provide comfort, luxury, and great service. [4] Canadian railway companies experienced rapid growth between the 1880s and World War I. They spent the period bemoaning persistent labour shortages, blaming restrictive immigration and labour laws for their troubles. William Van Horne, general manager of the Canadian Pacific Railway, fumed over Prime Minister
Wilfrid Laurier's opposition to foreign industrial workers, insisting that Canadian prosperity depended on unencumbered immigration. Van Horne, who normally remained tight lipped on federal matters, denounced Canada's restrictive immigration policy, claiming that "[w]hat we want is population. Labour is required ... throughout North and South America." He stressed that the "governments of other lands are not such idiots as we are in the matter of restricting immigration." [5] Annoyed with chronic workforce shortages, Canadian railway companies experimented with Canadian and foreign-born black labour. They initially envisioned black workers for treacherous work -- like hauling hog and cattle road kill from railway tracks -- believing that workers of African descent were well suited for those positions. Because demand for workers soared when able hands were few, African Canadian railwaymen eventually enjoyed a wider range of employment options during the early days of railroading. For instance, the Intercolonial Railways tapped into existing black communities in the Maritimes and Quebec, finding a ready- made pool of experienced transportation workers. In later years, the CPR turned a gleaming eye to Southern African Americans and West Indians as an under-explored source of cheap labour. As of the 1890s, company managers culled African American workers from the Deep South, exporting them to Canada as needed. By the turn of the century, Canadian industrialists also positioned black w orkers as a useful weapon against white workers clamouring for unionization.
White workers recognized management's heavy-handed tactics and protested the introduction of black workers in Canadian industries as demeaning to their manhood. Black labourers were, in their minds, scabs imported for the sole purpose of undermining unionization. The Canadian Brotherhood of Railway Employees (CBRE), the most powerful railway union of its time, codified its contempt for black railwaymen at its inaugural meeting in 1908 by extending membership to white men only. Locked out of meaningful partnership with white railwaymen by constitutional decree, black railroaders witnessed white supremacy as an integral part of Canadian trade unionism. Though excluded from white unions, black workers viewed the rails as a viable career path, defending their right to work and newly- found place in Canadian industry. They understood that companies saw them as a disposable workforce, easily dismissed during economic recession. Black railroaders protested their displacement and capitalized on the national press and House of Commons when making their grievances known. Though often migrant workers, they affirmed their right to a livelihood as well. Unable to gain the respect of their white co-workers, they formed a union of their own in 1917, the Order of Sleeping Car Porters -- the first black railway union in North America. John Arthur Robinson, who emerged as the chief defender of black workers during this era, cut his young union's teeth fighting Jim Crow trade unionism and segregationist employment policies on Canadian rails. He and
other sleeping car porters used existing labour law and publicized the discrimination they faced in the Canadian workforce. By World War I, these politically savvy actors forced a place for themselves in the Canadian House of Labour and unmasked white supremacy in every aspect of their lives as working men and Canadian citizens. The rapid growth in Canadian railway industries, the emergence of trade unionism, and institutionalization of segregation across North America gave way to Jim Crow employment practices on Canadian rails between the 1880s and 1914. White supremacy, institutionalized in separate and unequal practices governing both black and white workers, dictated labour-management relations as well as railway trade unionism. Both white workers and railway managers acted out their frustrations on black workers. Canadian companies imported black workers, even considering for a time the annexation of a Caribbean island as a source of cheap labour, because they viewed black men as a malleable class of workers, softened by Southern Jim Crow and colonial rule. Railway executives exploited racialized divisions in their workforce by pitting railroaders against each other and displacing white union men with illegally imported black labour. White railway workers created, fostered, and capitalized from a racially stratified workforce. By 1915, white railwaymen demanded and won a colour line on Canadian rails. Separate and unequal
guidelines prescribed the roles and privileges of black railroaders, hindering their career options in the process. They fought against the introduction of black workers on the rails, targeting them as the sole reason for their failed union efforts. Yet if Canadian industrialists and white trade unionists held conflicting positions on black labour, both conceded to a racialized division of the workforce. Consequently, the period from 1880 to World War I saw Jim Crow institutionalized as an ideal rationale for labour-management relations in the Canadian railway industry. Canadian railways experienced unprecedented growth after the completion of the CPR transcontinental line in 1885. The Grand Trunk Railways (GTR), in conjunction with the Intercolonical Railway (ICR) and Canadian Northern Railway (CNRY), completed another transcontinental line and joined the rapacious competition for passenger traffic. [6] Steam railway revenues soared at the turn of the century thanks to William Van Horne's and Charles M. Hays' enterprising expansion of railway service, especially in sleeping, dining, and parlour car departments. [7] A four hundred-pound bonvivant, Van Home decided that he would make Canadian sleeping cars the most palatial liners in North America. The ambitious president tripled investments in the CPR's parlour and sleeping car department between 1885 and 1895. [8] He commissioned artists and interior designers who improved on Pullman's designs: they broadened berths to accommodate Van Horne's girth, installed bathrooms on first-class sleepers, and served generous portions
i n dining cars. [9] Van Home's tactics proved most lucrative. The Canadian Pacific Annual Shareholders reports boasted that revenue from the parlour and sleeping car department swelled from $24,071 in 1884 to $721,006 in 1904, with a profit margin for the latter year of over a half million dollars. [10] Even smaller lines like the Canada Atlantic Railway (CAR) joined the excitement over sleeping cars. In November 1898, the CAR ordered four new cars from the Pullman Palace Car Company at a total cost of $31,740: two first-class sleeping cars with mahogany interiors and two second-class sleepers "finished in oak with double thick glass ... [and] seats of leather." [11] That same year, the Intercolonial Railway spent $159,526.40 on eight sleeping cars built by Pullman's chief competitor, the Wagner Palace Car Company of New York. [12] Corporate enthusiasm over sleeping car service produced a prodigious demand for other symbols of Pullman's signature service -- black railway workers. Soon after the Civil War, George Pullman singled-out newly emancipated African American men for his service, regarding them as seasoned service workers. Historian Braislford Brazeal contends that Pullman also solicited black porters because they were a "plentiful source of labor [and] societal caste distinctions between Negro and white people created a 'social distance' which had become an accepted fact in the mores of American society." [13] Canadian railway companies avidly
sought black railroaders for their sleeping car service because the image of broad smiling, white-gloved, crisply uniformed black men proved a moneymaking triumph with Canada's wealthy white railway clientele. Initially, the CPR, GTR, and ICR culled early black railwaymen from Canadian cities with sizable African Canadian populations, namely Halifax, Montreal, and Toronto. [14] In later y ears, Canadian railway companies turned to the Southern United States and West Indies for other black railroaders. The Intercolonial Railway found a ready supply of black transportation workers in Africville, Halifax's historically black neighbourhood. Bordered by railway tracks and Halifax Harbour, Africville became a black neighbourhood during the 18th century when thousands of African American Loyalists and West Indians migrated to Halifax. [15] A vibrant port city and the railway capital of the Maritirnes, Halifax teemed with black transportation workers. [16] Black Haligonians' lives were steeped in Maritime culture. Hundreds of African American and West Indian seafarers docked in Halifax on their transatlantic steamship routes, with many establishing permanent residence in the city after careers at sea. Already accustomed to transnational lifestyles, mariners were well suited to life on the rails. Many seafarers welcomed railway work as relief from long, dangerous sojourns at sea. Charles Pinheiro, a Barbadian steward on the SS Acadia joined the ICR sleeping car department in 1888 and remained in its employ until his retirement. [17] Other black mariners wedded railroading with
seafaring in order to insure full employment, offset boredom, and shield themselves from seasonal layoffs. In some cases, mariners retired their sealegs for work on the rails after marrying into Halifax families. Demararan seaman James Knight married Annie Joseph, a Halifax mariner's daughter, in 1880; thereafter, he worked intermittently for the ICR and sailed on the Orion. [18] Black Haligonians enthusiastically joined the rails during the ICR's heyday. The railroad promised steady employment and a respectable wage for those fortunate enough to land full-time employment, such as W. H. Blair, John Collins, Thomas Corbett, Joseph H. Daley, P. Driscoll, and P. Grannan, each of whom portered over 340 days during 1898. [19] In fact, black railroaders readily found work across Canada. Many African Canadians migrated westward for promotions or better opportunities with the Pullman Palace Car Company, the Canadian Pacific Railway, and the Grand Trunk Railways headquartered in Montreal. Payroll rosters indicate that forty-nine men in Montreal, one hundred in Toronto, and thirty-nine in London portered for the GTR in 1902. [20] Full-time porters drew monthly salaries ranging from $20-35 per month to $300-450 a year. [21] Experienced porters were rewarded with higher-waged runs on private government cars. David Hawes and John B. Cameron, who manned the sleepers Cumberland, Montreal, and Ottaw a exclusively reserved for prominent members of Parliament, earned annual salaries of $420. [22] Even
Winnipeg offered work for men willing to bear its harsh winters and long runs to the Pacific coast. Canadian Northern Railway payrolls show that seventy-six men portered out of Winnipeg during the summer of 1909, with wages varying from $1.75 per day to $50 per month for seasoned railroaders like E. Naperton. [23] Black railroaders in Canada enjoyed a broad range of employment options not available to black railwaymen in the United States at the turn of the century, where Jim Crow and the Big Four brotherhoods limited their occupational choices. Variable wages, uncertain demand, and exclusion from white unions taught these black railroaders the importance of diversifying their experience on the rails, as evidenced by employment patterns on the Intercolonial Railway. R. J. Murray was a brakeman for 51% days, worked as a baggagemaster for 2 days, and portered for 12 3/4 days, while L. Scothorn worked as a brakeman for 67 days, then as a shunter for 14 days, and finally portered for 5 days. [24] B. Dickie, R. Elliott, J. R. Fraser, J. P. Gough, and B. F. McKinnon supplemented their portering wages with work as brakemen, car-checkers, shunters, and baggagemasters. [25] Working the rails in any capacity meant flirting with danger. Brakemen had the death-defying task of running on top of moving railway cars, made icy during winter months, and turning the brake
wheel while also maintaining their balance. Those who failed met with sudden death along the tracks. The shunter's work proved no less perilous. Switchmen, as they were also known, dropped a levy to stop the cars and switched often poorly lit tracks so that trains going in the opposite direction could gain safe passage. Less hazardous, though equally rare, were black nightwatchmen who moonlighted when on leave from the sleeping car service. [26] Other black railroaders like Peter Bushenpin and David Jones worked as coopers for the ICR after years of portering. [27] Black men worked as waiters and cooks on the ICR, GTR, and CPR, higher paying positions otherwise solely reserved for white men working for other North American railway companies. [28] Black railwaymen in Canada held a virtual monopoly over sleeping car service as early as the 1880s. Caring for passengers in first class sleeping cars remained the porter's primary function, though the company also expected that he render various other services without compensation. The porter was responsible for all aspects of the sleeping car ride, except for collecting tickets, which the conductor performed. Railway companies required that porters report to their cars two hours prior to a scheduled run in order to prepare their sleepers. Once assigned to a car, they insured that it was clean and fully equipped; in case it was not, they hurriedly buffed and polished before passengers boarded. Canadian railway companies did not pay porters for this time consuming compulsory dead work.
Wood or coal burning ovens heated early sleepers not yet equipped with central heating at the turn of the century. Before leaving the station on a run, porters had to load their sleepers with enough fuel for the journey. They constantly struggled to keep soot from soiling the car or flying cinders from starting unruly fires. In summer, huge blocks of ice cooled down the sleepers. Loading these slabs was clumsy, dangerous work as it required that porters crawl onto the sleeper's roof and drop the cube down into its cooling mechanism compartment. Controlling the temperature, an on- going annoyance to both passengers and workers, often made early sleeping cars unbearably hot or cold, depending on the season. Once on the road, the sleeping car porter tended to his passengers' every whim. The porter greeted travelers, stowed luggage, pulled down berths in the evening, and hurriedly converted them back into seats in the morning. Responsible for remembering passengers' schedules, he was severely reprimanded when someone missed their stop. The porter, whom passengers condescendingly called 'George' or 'boy', served food, mixed drinks, shined shoes, cared for small children, sick passengers, and drunken ones too. [29] Herb Carvery, who portered during the 1950s, remembered "we were babysitters, not only for little kids but for adults....[S]omeone would get drunk on the train and many times you would have to say up all night just to watch them so they wouldn't aggravate somebody else." He added that when "someone would get sick, you would have to attend to them." [30] Historians on wheels, passengers expected that the sleeping car porter know the landscape and history of areas along his trek. A confidante and
armchair therapist, the porter feigned interest in travelers' tales and told a few os his own. Sleeping car porters tended smoggy smoking cars, swept up cigarette and cigar ashes, washed out cuspidors, and inhaled stale, smoky air for hours on end. In the days before automated washrooms, they did their best to maintain sanitary conditions in crudely equipped lavatories. Porters frequently suffered chronic sleep deprivation since the company worked them on seventy-two hour shifts without providing any sleeping quarters. They endured other health hazards on the road as well. Derailments, common in the early days of rail travel, cost many railroaders their lives, particularly when traveling through the Rockies' slippery slopes. [31] Policing gamblers, thieves, and rambunctious passengers also posed a constant danger for black railwaymen. The consummate diplomat, the porter walked a social tight rope in Pullman's romanticized mobile time capsule. In 1930, journalist Murray Kempton reflected that for many white travelers, porters seemed like "a domestic apparently unaltered by the passage of time or the Emancipation Proclamation." Yet alluding to the film The Emperor Jones featuring Paul Robeson, Kempton proposed that "[t]here was a certain thrill to the notion that he might be a Communist or a murderer or even an emperor." [32] Sleeping car porters understood that these racialized fantasies were inseparable from their passengers' other expectations. They enabled white passengers to cling to an Antebellum racial ideal, while black
workers understood that their livelihood -- and at times their very lives -- depended on acting out the part of this offensively racialized construction. Challenges to the charade and perceived social transgressions, especially against white women, carried heavy penalties: a porter could be fired or subjected to a wo rse fate -- lynching. Required to smile and act submissively, they did so hiding their thoughts, their dreams, and sometimes their rage. [33] Though the work was certainly taxing, black Canadians embraced railway employment since other industrial jobs presented a different set of hazards without the reward of lasting employment. Likewise, working for Canadian railway companies afforded enterprising black transportation workers the freedom to pursue other professional interests. African Australian John D. Curl portered for a time before opening a cigar shop in Halifax. [34] B. A. Husbands operated a West Indian import goods store with money obtained from seafaring and portering, while Jamaican-born Rufus Rockhead financed his famous Montreal jazz club with income earned on the rails. [35] Thus it seemed that by the end of the 19th century, Canadian railway companies and African Canadians had struck a mutually beneficial covenant. The railroads needed workers just as African Canadians needed stable employment. Canadian railway companies found an untapped pool of ready black workers among African Canadians who spoke English and adapted easily
to railroading because of their experience in other transportation sectors. Best of all, black railroaders did not belong to any unions. For African Canadians, the rails fulfilled the wanderlust of men accustomed to lives on the move and promised dependable work during a period of industrial transition. African Canadian railroaders hoped for a secure place on the rails but they did not find it. During periods of high unemployment or economic recession, Canadian railway companies discharged black workers, replacing them with inexperienced white labour. The Halifax Herald exposed this practice in the spring of 1898 when it headlined "Colored Porters on the Intercolonial Railway Were All 'Fired' and Without Cause." [36] J. S. Barbee, one of the dismissed ICR porters, told reporters "[o]ur places have been filled by white officials," and accused railway managers with "drawing the color line with a vengeance." [37] William Dixon, another fired ICR sleeping car porter and brother of the celebrated pugilist George Dixon, informed Halifax journalists that "the action of the government ... is a shabby piece of business. Men with families have been turned out without notice or cause, and failing to find work in Halifax they must leave the city." [38] All of the fired Intercolonial Railway porters shared similar backgrounds. Experienced transportation workers, many had joined the ICR after careers at sea. A number of the men were West Indians, residing in Africville after marrying white or bi-racial
women. All of the porters also belonged to Union Lodge, a black freemasons' temple popular with seafarers, sleeping car porters, and prosperous black Haligonian businessmen. Established in January 1856, Union Lodge members controlled commercial assets in Africville and served as guardians of their community's interests. [39] Hence, the federally-owned Intercolonial Railway's move against sleeping car porters roused black Haligonians who viewed these Union Lodge men as Africville's prominent denizens. Disillusioned, black Haligonians questioned whether the rails were indeed a wise investment in their future when white supremacy -- more than industriousness -- determined their fate. "Righteously indignant," black Haligonians gathered to "consider the best means to be taken to remedy a most serious matter." [40] Reverend Doctor J. Francis Robinson, an African American Baptist minister stationed in Halifax, led the charge. Speaking before his predominantly black congregation at the Cornwallis Street Baptist Church only days after the firings, Reverend Robinson did not mince words. "The recent dismissal of the porters from the service of the ICR brings us face to face again with the race, which in the United States and here remains an unsettled question." Robinson urged his congregation and all African Canadians to concede that race "is no longer a sectional question: it is a national question." [41] Reverend Robinson and other black Haligonian protesters
insisted that in addition to race, the ICR's move against black workers underscored citizenship, right to work, and living wage issues of import to all Canadians. "Don't drive the poor white or the poor black man out of your country. Give him work and give him good pay.... [A] policy which would arm the strong and cast down the defenceless is unwise ... and one fraught with disastrous consequences." Robinson admonished white supremacist employment practices, reminding the Canadian government that "[p]eace between the races is not to be secured by degrading one race and exalting another; by giving power and employment to one and withholding it from another." Alluding to the United States' strained race relations, Robinson alerted his congregation that "[e]xperience proves that those [who] are most abused can be abused with greatest impunity." He stressed that white Canadians should distinguish themselves from Americans by "maintaining a state of equal jus tice between the classes." African Canadians hoped for due process and "equal justice between the classes" but knew that they would only be attained through political mobilization. Peter Evander McKerrow, a West Indian sailor turned powerful black Haligonian businessman, maintained that since Reconstruction African Americans enjoyed certain citizenship rights still denied to blacks in the Maritimes. "The United States with her faults ... has done much for the elevation of the colored races. She has given to the race professors in colleges, senators, engineers, doctors, lawyers, mechanics of every description.
Sad and sorry are we to say that is more than we can boast of here in Nova Scotia." For Reverend Robinson, the solution to black railwaymen's problems was a simple one. He insisted that if "the Negro porters and the race [were] as strongly organized into labour protective unions, etc., like their white brothers, the ICR would not have succeeded so well and peaceably in displacing their colored labour and substituting white in their stead." [42] Without unionization, black railwaymen in Canada would never enjoy true job security and would continually be forced into unemployment or positions "at starvation wages," held Robinson. [43] He berated the Canadian government and ICR managers for subjecting black men and their families to a life of poverty and degradation. "For over 250 years, this race served in bondage, suffering the most poignant sensations of shame, immorality, demoralization and degradation. Its men have been victimized, and they are still victimized, proscribed against and imposed upon by the dominant race both in the United States and here in Canada." Reverend Robinson warned a gainst such white supremacist practices as violations of African Canadians' "civil rights [and] the human right to gain an honest livelihood for themselves and their families." [44] Black Haligonians called immediate attention to Jim Crow in railway employment policy by notifying the national press. [45] "Have No Use For Them -- Coloured Men on the Intercolonial Railway All
Fired," exclaimed the Tory newspaper Chatham Planet. The Ontario newspaper accused the Liberal government of betraying its African Canadian constituents. "Liberal leaders at Ottawa seem to have completely lost their heads. ... While Premier Laurier speaks in the most flattering manner of the African race, his officials strike them down in a most brutal way, no complaint, no investigation -- just kick them out." [46] Blacks in the Maritimes also contacted their federal members of Parliament Benjamin Russell and future Prime Minister Sir Robert Borden. Reverend Robinson emphasized that one thousand African Canadian voters in the Maritimes, "a sufficient number to give them the balance of power" would "get organized ... so that their voices and vote would be respected." [47] Conservative Parliament members took Robinson's warning to heart and laid the case of "Coloured Intercolonial Porters" before the House of Commons. [48] George Foster, the member from New Brunswick, inquired whether newspaper reports that "all the porters on the Pullman cars had been dismissed from the service of the Intercolonial" were indeed true. If so, Foster demanded that the Minister of Railways and Canals explain "whether they were dismissed for cause or whether the hon. gentleman is drawing the colour line in that service." [49]
Speaking for the Liberal government, Minister Blair rejected any notion that the colour line fueled employment practices on the government-owned ICR. "I am quite sure that the colour line has not been drawn." He assured the House that nothing had "been done in view of discriminating against the colour line in that service." Alphonse La Riviere of Quebec was not so easily persuaded, proposing instead "[p]erhaps the gentleman is colour- blind."[50] Ironically, while Blair denied any governmental wrongdoing with respect to ICR porters, the Minister of Railways and Canals never actually disputed the existence of a colour line in Canadian industries. Over the next two weeks, federal legislators debated the application of discriminatory employment policies, worrying less about its existence than its gentlemanly exercise. Representatives from Ontario and Nova Scotia resuscitated the "colour line" debate again during question … PURPOSEFUL READING (3-2-1) REPORT Version 2.0 Lightly Adapted from a template by Geraldine Van Gyn. Question 1: In your own words, what are the 3 most important concepts, ideas or issues in the reading? Briefly explain why you chose them. Concept 1 (In your own words) (2 marks)
Concept 2 (In your own words) (2 marks) Concept 3 (In your own words) (2 marks) Question 2: What are 2 concepts, ideas or issues in the article that you had difficulty understanding, or that are missing but should have been included? In your own words, briefly explain what you did to correct the situation (e.g. looked up an unfamiliar word or a missing fact), and the result. Cite any sites or sources used in APA format. Issue 1 (In your own words) (1 mark) Citation 1 (in APA format) (1 mark) Issue 2 (In your own words) (1 mark)
Citation 2 (in APA format) (1 mark) Question 3: What is the main economic story of the reading? (Economics studies the allocation of scarce resources.) Story (In your own words) (2 marks) ECON 321 The Economic History of Canada The CPI and How to Use It OPTIONAL HANDOUT Version 1 Recommended Reading • Stand-Up Economics: Chapter 17, Section 17.2 [Very short] • Stand-Up Microeconomics:
http://standupeconomist.com/stand-up- economics-the-micro-textbook/ (Choose the version with calculus.) 2 http://standupeconomist.com/stand-up-economics-the-micro- textbook/ Optional Readings Part 1: Solved Problems • California Department of Finance, “How to use CPI Data,” http://www.dof.ca.gov/Forecasting/Economics/Documents/How _to_Use_CPI_Data. pdf • Gavin Thompson, “How to adjust for inflation,” www.parliament.uk/briefing- papers/SN04962.pdf • Gerald Perrins and Diane Nilsen, “Math calculations to better utilize CPI data,” http://www.bls.gov/cpi/cpimathfs.pdf • ILO, “An Introduction to Consumer Price Index Methodology,” http://www.ilo.org/public/english/bureau/stat/download/cpi/ch1. pdf (ADVANCED mathematical details of price index calculation. Overkill for this course, but presented for the curious.) 3 http://www.dof.ca.gov/Forecasting/Economics/Documents/How
_to_Use_CPI_Data.pdf http://www.parliament.uk/briefing-papers/SN04962.pdf http://www.bls.gov/cpi/cpimathfs.pdf http://www.ilo.org/public/english/bureau/stat/download/cpi/ch1. pdf Optional Readings Part 2: Canada’s CPI • Statistics Canada, Your Guide to the Consumer Price Index, Catalogue No. 62-557- XPB. http://www5.statcan.gc.ca/olc-cel/olc.action?objId=62- 557- X&objType=2&lang=en&limit=1 (A non-technical introduction to the CPI.) • Inflation Calculator, Canada’s CPI Basket of Goods and Services, http://inflationcalculator.ca/cpi-basket/ (Shows what’s in the basket, and how basket weights have changed over time.) • James Rossiter, “Measurement Bias in the Canadian Consumer Price Index,” Bank of Canada Working Paper 2005-39. http://www.bankofcanada.ca/wp- content/uploads/2010/02/wp05-39.pdf (Problems with the CPI, and how to deal with them.) • Chiru, R. et al. (2015). Calculation of the Consumer Price Index. In The Consumer Price Index Reference Paper [Statistics Canada Item 62-553-X]. Retrieved from https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm
(Official details on CPI Calculation, from the definitive reference.) 4 http://www5.statcan.gc.ca/olc-cel/olc.action?objId=62-557- X&objType=2&lang=en&limit=1 http://inflationcalculator.ca/cpi-basket/ http://www.bankofcanada.ca/wp-content/uploads/2010/02/wp05- 39.pdf https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm What is a price index? • Tracks the price of a basket of goods over time. • (e.g. 1 can of pop + 1 cookie, or 1 bottle of cookie pop) • Everything is compared to a base year. • Let Ct = cost of the basket in year t • Cbase = cost of the basket in the base year • Index = Ct/Cbase x 100 • This shows how prices have changed since the base year. • e.g. Index of 115 means prices are 115% of base year prices • The CPI is a measure of the price level. • Inflation measures the change in the price level. 5
Using an index to calculate yearly inflation, f • Let Pt = Price index for year t • Inflation, f = the % increase in P from one year to the next • The rate of inflation in 2016 (say) would then be (P2016 – P2015)/P2015 • f2016 = (P2016 – P2015)/P2015 6 Some Common Indices • Consumer price index (CPI): goods bought by a representative household • Producer price index (PPI): goods bought by a representative producer • GDP Deflator: all goods and services produced within Canada in a given year. 7 0% 10% 20% 30%
40% 50% 60% 70% 80% 90% 100% 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 W e ig h ts ( % ) Year Evolution of Canadian CPI Basket Weights (Broad Classes) Food Shelter
Household Operations, Furnishings & Equipment Clothing and Footwear Transportation Health and Personal Caare Recreation, Education and Reading Alcoholic Beverages and tobacco Products More details: http://inflationcalculator.ca/cpi-basket/ These weights are shares of spending (since $ are a convenient common unit). http://inflationcalculator.ca/cpi-basket/ How do these weights figure in? • Canada (and many other countries) use a Laspeyres price index, which is a bit more complicated than our basic cookies & pop index. • We need three components: • A price for each class j in year t, ��� • A base year price for each class, �0� • A weight/share of base year spending by class, �0� (if the weights never change) • Canada uses a modified Laspeyres index called a Lowe index, in which the shares are calculated using data from different years: quantities are from some weight reference year for which we have good quantity data, while prices are
from the base year (price reference year). For details, see sections 6.23 to 6.35 on https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm 8 https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm How do you calculate shares of spending? • The share of spending of Class j in year t is the % of the value of the basket that year that was spent on Class j. • Let ��� be the quantity of Class j goods bought in Year t. • Then total spending on Class j in Year t is ������ (Price x Quantity) • If there are n categories, total spending on ALL basket goods in year t is σ�=1 � ������. • The share of spending of Class j in year t is therefore ��� = ������ σ�=1 � ������ • (Divide the amount spent on Class j, by the amount spent on
all classes, in Year t.) 9 � � Assembling the Laspeyres Price Index • Suppose we are keeping our weights constant at base year (Year 0) levels. • If there are n classes, then the Laspeyres price index for year t, Lt, is �� = � �=1 � ��� �0� �0� × 100 • Keep in mind this is simpler than the CPI calculation actually used by Statistics Canada. For details, see https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm 10 � �
https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm Example: Apples and Oranges • Using Year 0 as the base year, let’s calculate a Year 1 price index. • For our Laspeyres Index, we only need Year 0 shares. • Year 0 spending on apples: 1 $/apple x 10 apples = $10 • Year 0 spending on oranges: 3 $/orange x 8 oranges = $24 • Total Year 0 spending: $10 + $24 = $34 • s0apples = $10/$34 = 29%, s0oranges = $24/$34 = 71% 11 Year 0 Price Year 1 Price Year 0 Quantity Year 1 Quantity Apples $1 $2 10 9 Oranges $3 $4 8 7 Moving on… �1 = �1������ �0������ �0������ +
�1������� �0������� �0������� × 100 �1 = $2 $1 × 29% + $4 $3 × 71% × 100 = 152.9 (rounded) • Note that, by definition, the index is 100 in the base year. • The choice of the base year depends on the application – your text uses the project’s ‘Year 0’, because that’s a very convenient choice for engineering economics applications. • We could have just as easily used Year 1: in CPI indices, etc., the base year can be any year for which complete data is available. • For example... Cake ingredients as a basket, 1925 as the base year: 12 13
15 20 25 30 35 40 45 50 55 60 1914 1919 1924 1929 1934 1939 1944 1949 1954 1959 Cost of Ingredients (Canadian cents) (Sources: DBS, The Canadian Cookbook 1925 & 1953) Standard Cake Raisin Cake 14 50 75
100 125 150 175 1914 1919 1924 1929 1934 1939 1944 1949 1954 1959 In d e x (1 9 2 5 = 1 0 0 ) Year Laspeyres Indices (1925 base) vs Official Canadian CPI CPI(1925 base) Standard Cake Raisin Cake
15 -30% -20% -10% 0% 10% 20% 30% 1914 1919 1924 1929 1934 1939 1944 1949 1954 1959 Year-on-Year Inflation, 3 Canadian Indices CPI Standard Cake Raisin Cake Year-on-Year Inflation = % change in a price index from one year to the next. Problems with indices • Substitution bias: Pizza’s more expensive? Switch to ramen.
Problem: weights don’t reflect this. (This is one reason Canada re- calculates weights.) • Increase in quality bias: a phone in 2002 is not the same as a phone in 2019 • New product bias: things that didn’t exist at the basket’s creation aren’t taken into account. • Outlet bias: where should price be sampled? Thrifty’s or CostCo? 16 = 2002 2019 ??? = Party trick: Price in any year • Let �� = cost in year t Cx CY = CPIX CPIY
• When you hear ‘in 1995 dollars’ or some such, this is what they’re talking about. • Intuition: If things are twice as expensive in Year X as in Year Y, the cost in Year X is twice the cost in Year Y. 17 � � Where this might come in useful… • Marty McFly uses a time machine to travel between 1955, 1985 and 2015. • All of his destinations are in the United States. • The US CPI was 26.8 in 1955, 107.6 in 1985 and 235.8 in 2015. • The time machine is made out of a DeLorean DMC-12 car. • In 1985, a DeLorean could be bought for $12,000 • In 2015, a DeLorean sold on average for for $54,000. • Has the DeLorean become cheaper or more expensive with age? 18 Originally, this example included
highway construction costs... …but where we’re going with this example, we don’t need roads. P1985 = P2015 CPI1985 CPI2015 P1985 = $54,000 107.6 235.8 = $24,641.22 • In real terms, the DeLorean has doubled in price! • Should Marty (and Doc) start a cross-time used car dealership? • Sadly, over 30 years, that return only averages to about 2.5% a year… • $24,641.22 = $12,000 × 1 + 0.24742 30 • Probably better to bring back a sports almanac… What is the 1985 equivalent of $54,000 today? 19 http://www.kedificil.com/wp-content/uploads/2013/08/great- scott-doc-back-to-the-future-drawing.jpg http://www.kedificil.com/wp-content/uploads/2013/08/great-
scott-doc-back-to-the-future-drawing.jpg 20 300 350 400 450 500 550 600 650 C a n a d ia n C e n ts
Price of Cake Ingredients (2017 $) (Sources: DBS, Statistics Canada, The Canadian Cookbook, Thrifty's) Standard Cake Raisin Cake 2017 Standard 2017 Raisin When I deflate using the official CPI, note the LOW cost during WWII, and the HIGH cost in the late 1940s and early 1950s… Inflation tracking for time travelers • When going back in time from 1985 to 1955, Marty was surprised to find how cheap everything was. • A 12-ounce bottle of Pepsi cost 10 cents in 1955, compared to 15 cents in 1985 (inferred from the cost of a 2-litre bottle). • Let’s calculate average annual inflation between 1955 and 1985 using first the CPI, and then by using the price of 12 ounces of Pepsi. • The two values will not be the same! There’s immediately clear reason why the price of Pepsi should track the CPI perfectly.
• Our two baskets (CPI basket, 12 ounces of Pepsi) are very different. 21 Pepsi Ad, 1955 • Let P stand for the index used. After 30 years of inflation of f per year, something that cost $1 in 1955 would cost $1 x 1 + f 30 in 1985. • Our index is �55 in 1955, and �85 in 1985. �55 1 + f 30 = �85 �85 �55 1 30 − 1 f��� = 107.6 26.8 1
30 − 1 = 4.7 % f����� = 0.15 0.10 1 30 − 1 = 1.4 % 22 1985 ad for Pepsi What’s so bad about inflation? • If all prices rise, including wages, why worry? • First: some redistribution of income (winners and losers) • If your income is ‘sticky’, you can lose out. • (Important in many union negotiations) • Menu costs: it costs money to send someone around with the price gun and/or print new menus • Sometimes inflation can’t be accurately predicted. • Unexpected(ly high) inflation helps borrowers and hurts
lenders. • Your turn: why? • Unexpectedly low inflation helps lenders and hurts borrowers. • Deflation is sticky, and brings its own problems… 23 24 Inflation bad, deflation good? Not quite… • In the 1990s (and after), Japan saw falling prices for just about everything. • You’d think this would boost spending, since demand slopes downward. • BUT people expected prices to fall. • A vicious self-fulfilling cycle of expectations. • This trap is VERY difficult to get out of. • Stable, small, positive inflation is what most central banks aim at • (about 2% a year is a common target) • It’s uncertain whether the Bank of Japan can create lasting inflation.
• (credibility, overcoming expectations) (Source: http://www.japanreview.net/essays_can_the_bank_of_japan_cre ate_inflation.htm ) Well worth reading, if a bit beyond the scope of this course. 25 http://www.japanreview.net/essays_can_the_bank_of_japan_cre ate_inflation.htm (Source: http://avondaleam.com/us-vs-japan-cp/ ) 26 http://avondaleam.com/us-vs-japan-cp/ ECON 321 SPRING 2020 – INDIVIDUAL ASSIGNMENT 5 TO BE SUBMITTED VIA COURSESPACES BY 11:59 PM ON MARCH 10th, 2020 Name (First, Family) Last 3 digits of SID TO SPEED UP MARKING, PLEASE ANSWER THE QUESTIONS IN THE FORMS AND SPACES PROVIDED. THE T.A. RESERVES THE RIGHT TO NOT MARK ANY
QUESTIONS THAT ARE NOT ANSWERED IN THE EXPECTED LOCATIONS. By submitting this assignment you agree to the following honor code, and understand that any violation of the honor code may lead to penalties including but not limited to a non-negotiable mark of zero on the assignment: Honor Code: I guarantee that all the answers in this assignment are my own work. I have cited any outside sources that I used to create these answers in correct APA style. Marking scheme – Make sure you answer all the questions before handing this in! Question Marks 1 a 12 2 a 3 b 3 c 3 3 a 4 b 4 Total
29 QUESTIONS 1. Read the following paper: MacDonald, N. (1977). The Canadian Pacific Railway and Vancouver’s Development to 1900. BC Studies, 35, pp. 3-35. Retrieved from https://doi.org/10.14288/bcs.v0i35.936 (The article is open access, so you should have no trouble accessing it off campus.) a. (12 marks) Write a 3-2-1 report on the article using the form provided on Coursespaces. 2. [Analysis] Read the following two short articles: · From the textbook: VI.8 “A Subtle Ingenuity in Advertising” (1914), p. 440. · Oyeniran, C. (2019). Sleeping Car Porters in Canada [Web Page]. The Canadian Encyclopedia. Retrieved from https://www.thecanadianencyclopedia.ca/en/article/sleeping-car- porters-in-canada After you have done so, briefly answer the following questions, based on what you learned in your reading and in ECON 321. a. (3 marks) According to the textbook article, the C.P.R. “tried the American cooks and waiters” but found them “unreliable, leaving after two or three months’ employment.” Meanwhile,
“the men found in London remained the whole season”. Based on the readings and other material from ECON 321, why do you think that American cooks and waiters were more likely to quit than cooks and waiters brought in from Europe? Briefly explain your reasoning. b. (3 marks) According to the textbook article, the C.P.R. wanted to “harmonize” the skin tone and hair color of waiters and cooks to “the setting of the particular car to which the shade of color should be confined”. In 1914, the company went to a lot of trouble and expense to find employees of just the right appearances in London. Based on the readings and other material from ECON 321, why would the C.P.R., in 1914, have found it desirable (and presumably, profitable) to employ cooks and waiters with appearances that matched the customers in the cars in which they would serve? c. (3 marks) The C.P.R. made an effort to match the skin and hair tones of its cooks and waiters to the passengers in their cars, but even in 1914 most of its porters, who also had face-to- face contact with passengers, were black. Why would the C.P.R. in 1914 prefer black porters, but cooks and waiters of mixed
appearances that matched the passengers? If you feel you need more information for this question, I recommend skimming these optional readings: Black Porters on the C.P.R.: Matthieu, S. (2001). North of the Colour Line: Sleeping Car Porters and the Battle against Jim Crow on Canadian Rails, 1880 – 1920. Labour, 47(47). Retrieved from https://go-gale- com.ezproxy.library.uvic.ca/ps/i.do?p=ITBC&u=uvictoria&id= GALE%7CA79381643&v=2.1&it=r C.P.R. Cooks: From the textbook, VI.7 How the Canadian Pacific Selects Cooks (1912), pp. 439-440. 3. [Math] In 1881, the Canadian Pacific Railway syndicate was awarded $25,000,000 as part of its contract. By 1893, some people were complaining that the $0.75 that the C.P.R. charged for its meals was too high. In 2020, $25,000,000 isn’t that much for a large infrastructure project, and paying $0.75 for a meal would be a bargain. This is because the purchasing power of the Canadian dollar has changed over time. In this question, you will be asked to adjust for inflation, and turn the 1881 and 1893 values into 2020 dollars. If we had a CPI (Consumer Price Index) or other reliable price
index for Canada going back to 1881, this wouldn’t be a problem. Prices indices are designed to make the sort of conversion we want easy. By design, if X and Y are years, P is ‘Price’ and CPI is the Consumer Price Index, This means that to put a ‘Year X’ price in 2020 dollars, we just need to plug the appropriate values into Example: Q: In 1939, large eggs sold for $0.26 a dozen in Victoria, B.C. (at a now-defunct supermarket called Ray’s). The Canadian CPI for 1939 is 7.7. The current estimate of the Canadian CPI for 2020 is 136.8. Use this information to convert the price of eggs in 1939 to 2019 dollars. A: Px/Py = CPIx/CPIy P2020 = $0.26 x 136.8/7.7 = $4.62 In 2020 dollars, a dozen egg’s at Ray’s cost $4.62. That means eggs have actually gone down in price, in real terms, since in 2019, large eggs sell for $3.69 a dozen in Victoria, B.C. (at Thrifty’s). (For more details, see the CPI lecture notes in the same folder as this assignment.) The problem is that we don’t have a CPI for Canada going back to 1881. The Canadian CPI series starts in 1914. In this question, you’ll try to make up for that by ‘patching in’ two price indices that DO go back to 1881 – those of Canada’s two main trading partners at the time, the U.S. and Britain.
You will use the U.S. and British price indices to put the 1881 and 1893 prices in terms of 1914 dollars, then use the Canadian CPI to bring the price indices from 1914 to 2020. This will give you a rough range for the ‘2020 dollars’ equivalent of the two items were are looking at – a large cash subsidy in 1881, and an ‘expensive’ train lunch in 1893. Information Needed: C.P.R. cash subsidy, in 1881 dollars: $25,000,000 Cost of a C.P.R. lunch, in 1893 dollars: $0.75 Year US CPI British CPI Canadian CPI 1881 10.2 100.0 1893 9.0 95.0 1914 10.0 105.5 6.0 2020
136.8 a. (4 marks) What is the range of values, in 2020 dollars, for a $25,000,000 subsidy in 1881? Estimate using the U.S. (and Canadian) CPI: $_______________________ Show your work: Estimate using the British (and Canadian) CPI: $________________________ Show your work: b. (4 marks) What is the range of values, in 2020 dollars, for a $0.75 lunch in 1893? Estimate using the U.S. (and Canadian) CPI: $_______________________ Show your work:
Estimate using the British (and Canadian) CPI: $________________________ Show your work: 2

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1 Chris Willmore 2 A barn n.docx

  • 1. 1 Chris Willmore 2 A barn near St. Adolphe, Manitoba (ca. 1920). Original photograph in the Anthologist’s collection.
  • 2. Cover Image: Dixon, S. J. (ca. 1890). Untitled (Toronto) [Photograph]. Anthologist’s collection. 3 STORIES FROM CANADA’S Economic History Collected From CONTEMPORARY NEWSPAPERS SECOND EDITION “And let us, ciphers to this great accompt, / On your imaginary forces work.”
  • 3. Shakespeare, Henry V, Act 1, Prologue CURATED, EDITED AND ANNOTATED BY Christopher Willmore Victoria, B.C., 2019 4
  • 4. All articles in this collection are in the public domain in Canada; they were re–typed from their sources by Christopher Willmore. Edited Text and Annotations © Christopher Willmore 2019 ISBN 978–1–9992295–3–5 A Skeride Publication 5 To ELISHEA
  • 5. For Her Patience & MY PARENTS For Their Support 6 A QUICK NOTE This work is not intended as a comprehensive textbook, but as an invitation to explore. Don’t feel you have to read it cover–to–cover; feel free to flip through these pages and start reading whatever catches your interest. I find that part of the fun in reading from the past is seeing how language evolves. To that end, I’ve left spelling and punctuation mostly as it was in the original articles.
  • 6. Since these stories are drawn from newspapers, which were often printed on a tight deadline, there are more errors than usual in the source material. I have silently corrected obvious typos, and sometimes changed spelling to be internally consistent in each article. I have also added paragraph breaks for ease of reading, and broken up some run–on sentences with commas. All text in bold (save some article titles) is mine, as are all footnotes1 and [words in square brackets]. I’ve made use of the following standard devices to comment on the text: […] = “I’ve skipped some words here.” [sic.] = “I know this looks like a typo, but it was written that way in the original.” Ibid. = “Same source as the above.” It was common in the past for Canadian newspapers to use words that are now (and in many cases, were then) ethnic slurs, especially when writing about Indigenous people. I believe it is important to acknowledge that these hurtful terms were used, but I have no wish to either perpetuate them, or to introduce them to new audiences. I have therefore replaced such words with their first letters followed with several dashes, as in h––––– (referring to a person of mixed heritage), s––––– (an Indigenous woman) and s–––––h (an Indigenous man).
  • 7. That’s it! You’re all set – enjoy! C. WILLMORE 1 Like this one. 7 Table of Contents A QUICK NOTE ............................................................................................... ..................................... 6 I. Newfoundland ............................................................................................... ........................19 1. A Natural History of Newfoundland’s Fisheries (1859) ................................................................. 20 2. Among the Fishermen of Newfoundland (1884) ........................................................................... 27
  • 8. The Bait Act and its Aftermath ............................................................................................... .......... 31 3. No More Bait (1887) ............................................................................................... ................................. 31 4. Concerns About the Bait Act (1889) ............................................................................................... .......... 33 5. Realities of Competition with the French (1890)..................................................................................... .. 34 6. Suspension of the Bait Act (1893) ......................................................................................... ...... ............. 36 7. Waste of Herring Prior to the Bait Act (1896) ........................................................................................... 37 8. The Aftermath of the Bait Act (1896) ............................................................................................... ........ 38 Factors Influencing the Price of Cod ............................................................................................... .. 39 9. Song of the Fisherman (1889) ............................................................................................... ................... 39 10. Fishermen, Prepare for War! (1894) ............................................................................................... ........ 39 11. A Cod Cartel (1894) ............................................................................................... ................................. 41 12. The Codfish Cull (1894) .................................................................................... ...........
  • 9. ........................... 43 13. Abuses of the Truck System (1894) ............................................................................................... ......... 45 14. Smelly and Hard to Prepare (1903) ............................................................................................... ......... 47 The Crash of 1894 ............................................................................................... .............................. 48 15. No Calm Before the Storm (Early December, 1894) ................................................................................ 48 16. The Crash (December 10, 1894) ............................................................................................... .............. 50 17. The Aftermath (February, 1895) ............................................................................................... .............. 50 18. The Roots of All Trade (1894) ............................................................................................... .................. 51 19. A Run on Three Banks (May, 1895)...................................................................................... ................... 52 20. Signs of Recovery (November, 1895) ............................................................................................... ....... 53 Our Staple Product: The Letters of James Murray ............................................................................ 55 21. Relieving the Fish Market (July, 1897) ............................................................................................... ..... 55 22. Mr. Anderson Replies (July, 1897) ...............................................................................................
  • 10. ........... 56 23. The Price of Fish (July, 1897) ............................................................................................... ................... 57 24. Our Staple Product (July, 1897) ............................................................................................... ............... 59 25. On the Subject of Dry Codfish (July, 1897) .............................................................................................. 61 26. The Staple Industry (July, 1897) ............................................................................................... .............. 63 27. The Chief Consumers of Dried Codfish (July, 1897) ................................................................................. 64 28. The Final Letter (August, 1897) ............................................................................................... ............... 66 29. The Man Who Owned Half of Newfoundland (1898) .................................................................. 68 30. The Reids and Labrador (1907) ............................................................................................... .... 71 II. Fur ............................................................................................... .........................................73 Beavers and their Fur ............................................................................................... ........................ 74 1. The Beaver (1887) ............................................................................................... .................................... 74
  • 11. 2. One of the Romances of the French Regime (1918) .................................................................................. 77 3. The Beaver Club (1910) ............................................................................................... ............................. 78 4. ‘Made Beaver’ as a Currency (1921) ............................................................................................... .......... 80 Fashion and the Beaver Hat ............................................................................................... ............... 83 8 5. “Many in Number and so Absolutely Unlike” (1909) ................................................................................. 85 6. “Becoming and Refined” (1911) ............................................................................................... ................ 86 7. Mrs. Quain’s First Reception (1914) ............................................................................................... .......... 93 Edmonton and the Fur Trade ............................................................................................... ............. 93 8. The Founding of Edmonton (1921) ............................................................................................... ............ 93 9. How the Trade is Handled (1899) ............................................................................................... ............ 104 10. Seasonal Shipments (1899)
  • 12. ............................................................................................... ................... 106 11. The Revillons (1906) ............................................................................................... ............................. 109 12. Further History of the Revillons (1918) ............................................................................................... .. 111 13. Competition and Indigenous Fur Traders (1922) ................................................................................... 112 14. How Fur was Sold in London (1894) .......................................................................................... 113 Fur Farming ............................................................................................... ..................................... 117 15. Capacity and Quality Constraints to Trapping (1926) ............................................................................ 117 16. A Rapidly Developing Industry (1928) ............................................................................................... .... 118 17. A Russian Prince and Canadian Muskrat Rancher (1929) ...................................................................... 119 18. The Growth of Fur Farming (1935) ............................................................................................... ........ 120 19. A Demonstration of Dentistry (1934) ............................................................................................... .... 120 20. A Mink Factory (1949)..................................................................................... ..................................... 121 Freight and Transportation
  • 13. ............................................................................................... .............. 124 21. By Canoe (1920) ............................................................................................... ................................... 124 22. By Dog Train (1897) ............................................................................................... .............................. 127 23. By Cayoose (1883) ............................................................................................ ... ................................ 131 24. By Steamboat (1921) ............................................................................................... ............................ 133 Traders and Trappers ............................................................................................... ....................... 136 25. Silhouette of the Northern Fur Trapper (1909) ..................................................................................... 136 26. Wending Home (1907) ............................................................................................... .......................... 138 27. A Companionable Tobacco Pipe (1909) ............................................................................................... . 140 28. Jack Norris, Pioneer (1916) ............................................................................................... ................... 143 29. Pa–Ta of the Biigtigong Nishnaabeg (1923) .......................................................................................... 152 30. The Tales of Johnny Berens (1923) ............................................................................................... ........ 154 31. A Unique Family Gathering (1906)
  • 14. ............................................................................................... ........ 161 32. Number Sixteen (1894) ............................................................................................... ......................... 162 III. The Treaties, and After ............................................................................................... ....... 166 Starvation, the End of the Buffalo, and Sitting Bull......................................................................... 167 1. Conditions Near Battleford (1879) ............................................................................................... .......... 167 2. The Indians in Manitoba (1879) ............................................................................................... .............. 168 3. Starvation and Cattle Ranching in Alberta (1912) ................................................................................... 171 4. The Buffalo are Near Extinction (1882) ............................................................................................... .... 172 Land and the Treaties ............................................................................................... ...................... 174 5. An Early Treaty Talk (1849) ............................................................................................... ..................... 174 6. Treaties and the Mounted Police (1885) ............................................................................................... . 177 7. An Account of a Signing of Treaty 6 (1918) ............................................................................................. 179
  • 15. 8. A Treaty 6 Payment (1884) ....................................................................................... ........ ..................... 182 9. Indian Department Oxen and Treaty 6 (1884) ........................................................................................ 184 10. Denied Rations (1885) ............................................................................................... .......................... 186 11. Crowfoot’s Oration (1886) ............................................................................................... .................... 187 12. Hunger, Rations and Hayter Reed (1888)..................................................................................... ......... 189 13. The Signing of Treaty 8 (1899) ............................................................................................... ............... 191 9 14. “Nothing to be gained by being Indians” (1882) ................................................................................... 197 15. Speculation in Scrip (1911) ............................................................................................... .................... 198 16. Conflict Over Urban Land (1882) ............................................................................................... ........... 204 17. Minor Chiefs Swear Not to Sell Lands (1913) ........................................................................................ 206 18. The Life of Peter Hourie (1920) ............................................................................................... .. 207
  • 16. The Potlatch ............................................................................................... .................................... 214 19. A Songhees Potlatch (1874) ............................................................................................... .................. 214 20. ‘Evils’ of the Potlatch (1896) ............................................................................................... ................. 215 21. “The Potlatch is Our Bank” (1896) ............................................................................................... ......... 216 22. The Potlatch Economy (1898) ............................................................................................... ............... 218 23. A Fort Rupert Potlatch (1899) ............................................................................................... ............... 220 24. Albert Edward Edenshaw, Chief of the Haidas (1897) ........................................................................... 221 25. A Potlatch in Settlement of Debts (1900) ............................................................................................. 222 26. Collecting Debts for the Potlatch (1902) ........................................................................................ ....... 223 27. “The Last Great Potlatch” of the Songhees (1910) ................................................................................ 225 28. The Indian Act’s Potlatch Ban (1913) ............................................................................................... ..... 226 29. “The Last of its Kind” (1922) ............................................................................................... .................. 227
  • 17. 30. The Feast of the Bear (1900) ............................................................................................... ...... 229 31. Sacket of the Quatsino First Nation (1895) ............................................................................... 233 The Oolichan................................................................................. .................................................. 235 32. Food and Light (1883) ............................................................................................... ........................... 235 33. Use and Preparation of the Oolichan (1885) ......................................................................................... 235 34. Catching the Candle–Fish (1884) ............................................................................................... ........... 237 Settler Perceptions of Indigenous Women ..................................................................................... 238 35. L. M. Montgomery on Saskatchewan (1891)..................................................................................... .... 238 36. How a Woman Should Dress (1892) ............................................................................................... ...... 241 37. “Woman’s Position Among the Indians” (1887) .................................................................................... 241 38. “Infinite Patience” (1911) ............................................................................................... ..................... 243 39. “The heavy end of the burden” (1911) ............................................................................................... .. 244
  • 18. 40. The Green Corn Dance of the Onondaga (1896) ........................................................................ 244 “Back and Forth from Time Immemorial” ....................................................................................... 248 41. Mrs. White–Feather and Mrs. Full–Moon (1925) .................................................................................. 2 48 42. “Two Women Turned Back” (1925) ............................................................................................... ....... 249 43. A Right, Interrupted (1925) ............................................................................. .................. ................... 250 44. “With Bag and Baggage Galore” (1908) ............................................................................................... . 251 45. “Tribes thus United” (1908) ............................................................................................... .................. 252 IV. Chinese Immigration ............................................................................................... .......... 255 Changing Perspectives on a Chinese Head Tax ............................................................................... 256 1. Mr. Bunster’s Argument (1871)..................................................................................... ......................... 256 2. A Motion for a Head Tax (1875) ............................................................................................... .............. 259 The Head Tax of 1878 ...............................................................................................
  • 19. ...................... 260 3. Difficulties Collecting the Tax (1878) ............................................................................................... ....... 260 4. ‘A Bathos of Meanness’ (1878) ............................................................................................... ............... 262 5. The Turning Point (1878) ............................................................................................... ........................ 263 6. The Strike (1878) ............................................................................................... .................................... 264 7. More ‘Inconvenience’ (1878) ............................................................................................... .................. 265 10 8. Chinese Cooks are not Easily Replaced (1878) ........................................................................................ 265 9. Collection of the Tax Resumes (1878) ............................................................................................... ..... 265 10. Unconstitutional and Void (1878) ............................................................................................... ......... 265 11. An Anti–Chinese Meeting (1885) .............................................................................................. 266 12. A “Monster Public Meeting” (1886) ..........................................................................................
  • 20. 268 The Occupations ............................................................................................... .............................. 268 13. Statistics of Victoria’s Chinese Trade (1901) ......................................................................................... 269 14. Catching Fish (1861) ............................................................................................... ............................. 269 15. A Chinese Restaurant (1883) ............................................................................................... ................. 270 16. Hing, the Chinese Servant (1885) ............................................................................................... .......... 270 17. Hing Celebrates the Chinese New Year (1885) ...................................................................................... 272 18. Farmers and Sanitation Workers (1891) ............................................................................................... 273 19. Sanitary Issues with Chinese Laundries (1908)..................................................................................... . 274 20. Improved Sanitation in Chinese Laundries (1908) ................................................................................. 275 The Fall of Kwong Lee ............................................................................................... ...................... 275 21. A Meeting in Chinatown (1884)..................................................................................... ....................... 275 22. The Second Meeting (1884) ...............................................................................................
  • 21. .................. 276 23. An Auction of Goods (1885) ............................................................................................... .................. 276 Standard of Living and Way of Life ............................................................................................... .. 277 24. A Chattel Mortgage (1900) ............................................................................................... .................... 277 25. What’s in a Name? (1908) ............................................................................................... ..................... 278 26. Edmonton’s Chinese Community (1908) .............................................................................................. 279 27. An Edmontonian Aviator (1923) .................................................................................... ........... ............ 282 28. A Walk Through Victoria’s Chinatown (1886) ....................................................................................... 283 29. A Prosperous Tailor’s Household (1902) ............................................................................................... 287 30. Chinese New Year in Victoria (1903)..................................................................................... ................ 290 Victoria: Opium Smuggling Central ............................................................................................... .. 295 31. A ‘Lucrative Trade’ (1865) ............................................................................................... ..................... 295 32. “The Use of the Deadly Drug in Victoria” (1881)
  • 22. ................................................................................... 296 33. “Chinese and Opium Smuggling to the States” (1885) .......................................................................... 297 34. Canned Opium (1878) ............................................................................................... ........................... 298 The Business of Opium ............................................................................... ................ .................... 299 35. Dr. Helmcken’s License Fee (1865) ............................................................................................... ........ 299 36. Alcohol and Opium (1884) ............................................................................................... .................... 299 37. War and the Opium Trade (1894) ............................................................................................... .......... 300 The Beginning of the End for the Opium Industry........................................................................... 301 38. Low Prices from a Rival (1889) ............................................................................................... .............. 301 39. A Falling Chinese Population (1890) ............................................................................................... ...... 302 40. Lower Taxes are Bad for Smugglers (1894) ........................................................................................... 303 41. The Wilson Bill (1894) ............................................................................................... ........................... 304 42. A Celebration of the End (1894) ...............................................................................................
  • 23. ............ 305 Supply and Demand of Chinese Workers ........................................................................................ 306 43. “A Flood of Celestials” (1876)..................................................................................... .......................... 306 44. Where do they Come From? (1884) … Disclaimer: This is a machine generated PDF of selected content from our databases. This functionality is provided solely for your convenience and is in no way intended to replace original scanned PDF. Neither Cengage Learning nor its licensors make any representations or warranties with respect to the machine generated PDF. The PDF is automatically generated "AS IS" and "AS AVAILABLE" and are not retained in our systems. CENGAGE LEARNING AND ITS LICENSORS SPECIFICALLY DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES FOR AVAILABILITY, ACCURACY, TIMELINESS, COMPLETENESS, NON- INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Your use of the machine generated PDF is subject to all use restrictions contained in The Cengage Learning Subscription and License Agreement and/or the Gale OneFile: Business Terms and Conditions and by using the machine generated PDF functionality you agree to forgo any and all claims against Cengage Learning or its licensors for your use of the
  • 24. machine generated PDF functionality and any output derived therefrom. North of the Colour Line: Sleeping Car Porters and the Battle Against Jim Crow on Canadian Rails, 1880-1920 Author: Mathieu, Sarah-Jane (Saje) Date: Spring 2001 From: Labour/Le Travail Publisher: Canadian Committee on Labour History Document Type: Article Length: 15,184 words Full Text: IN APRIL 1854, the Great Western Railway declared that it urgently needed eight hundred workers to guard its tracks against stray cattle and hog crossings. Its advertisement, strategically placed in Canada's most important black newspaper of the day, the Provincial Freeman, sought African Canadians for the task. [1] Before the turn of the century, African Canadian men laid down tracks for the transcontinental railroad and worked as cooks and dining car attendants for the Grand Trunk Railway. [2] Black railroaders became more prominent figures on Canadian rails by the 1870s when the Pullman Palace Car Company introduced sleeping car porters to Canada. [3] George Pullman advertised his porters much in the same way he did his opulent sleeping cars: both, he promised, would provide comfort, luxury, and great service. [4] Canadian railway companies experienced rapid growth between the 1880s and World War I. They spent the period bemoaning persistent labour shortages, blaming restrictive immigration and labour laws for their troubles. William Van Horne, general manager of the Canadian Pacific Railway, fumed over Prime Minister
  • 25. Wilfrid Laurier's opposition to foreign industrial workers, insisting that Canadian prosperity depended on unencumbered immigration. Van Horne, who normally remained tight lipped on federal matters, denounced Canada's restrictive immigration policy, claiming that "[w]hat we want is population. Labour is required ... throughout North and South America." He stressed that the "governments of other lands are not such idiots as we are in the matter of restricting immigration." [5] Annoyed with chronic workforce shortages, Canadian railway companies experimented with Canadian and foreign-born black labour. They initially envisioned black workers for treacherous work -- like hauling hog and cattle road kill from railway tracks -- believing that workers of African descent were well suited for those positions. Because demand for workers soared when able hands were few, African Canadian railwaymen eventually enjoyed a wider range of employment options during the early days of railroading. For instance, the Intercolonial Railways tapped into existing black communities in the Maritimes and Quebec, finding a ready- made pool of experienced transportation workers. In later years, the CPR turned a gleaming eye to Southern African Americans and West Indians as an under-explored source of cheap labour. As of the 1890s, company managers culled African American workers from the Deep South, exporting them to Canada as needed. By the turn of the century, Canadian industrialists also positioned black w orkers as a useful weapon against white workers clamouring for unionization.
  • 26. White workers recognized management's heavy-handed tactics and protested the introduction of black workers in Canadian industries as demeaning to their manhood. Black labourers were, in their minds, scabs imported for the sole purpose of undermining unionization. The Canadian Brotherhood of Railway Employees (CBRE), the most powerful railway union of its time, codified its contempt for black railwaymen at its inaugural meeting in 1908 by extending membership to white men only. Locked out of meaningful partnership with white railwaymen by constitutional decree, black railroaders witnessed white supremacy as an integral part of Canadian trade unionism. Though excluded from white unions, black workers viewed the rails as a viable career path, defending their right to work and newly- found place in Canadian industry. They understood that companies saw them as a disposable workforce, easily dismissed during economic recession. Black railroaders protested their displacement and capitalized on the national press and House of Commons when making their grievances known. Though often migrant workers, they affirmed their right to a livelihood as well. Unable to gain the respect of their white co-workers, they formed a union of their own in 1917, the Order of Sleeping Car Porters -- the first black railway union in North America. John Arthur Robinson, who emerged as the chief defender of black workers during this era, cut his young union's teeth fighting Jim Crow trade unionism and segregationist employment policies on Canadian rails. He and
  • 27. other sleeping car porters used existing labour law and publicized the discrimination they faced in the Canadian workforce. By World War I, these politically savvy actors forced a place for themselves in the Canadian House of Labour and unmasked white supremacy in every aspect of their lives as working men and Canadian citizens. The rapid growth in Canadian railway industries, the emergence of trade unionism, and institutionalization of segregation across North America gave way to Jim Crow employment practices on Canadian rails between the 1880s and 1914. White supremacy, institutionalized in separate and unequal practices governing both black and white workers, dictated labour-management relations as well as railway trade unionism. Both white workers and railway managers acted out their frustrations on black workers. Canadian companies imported black workers, even considering for a time the annexation of a Caribbean island as a source of cheap labour, because they viewed black men as a malleable class of workers, softened by Southern Jim Crow and colonial rule. Railway executives exploited racialized divisions in their workforce by pitting railroaders against each other and displacing white union men with illegally imported black labour. White railway workers created, fostered, and capitalized from a racially stratified workforce. By 1915, white railwaymen demanded and won a colour line on Canadian rails. Separate and unequal
  • 28. guidelines prescribed the roles and privileges of black railroaders, hindering their career options in the process. They fought against the introduction of black workers on the rails, targeting them as the sole reason for their failed union efforts. Yet if Canadian industrialists and white trade unionists held conflicting positions on black labour, both conceded to a racialized division of the workforce. Consequently, the period from 1880 to World War I saw Jim Crow institutionalized as an ideal rationale for labour-management relations in the Canadian railway industry. Canadian railways experienced unprecedented growth after the completion of the CPR transcontinental line in 1885. The Grand Trunk Railways (GTR), in conjunction with the Intercolonical Railway (ICR) and Canadian Northern Railway (CNRY), completed another transcontinental line and joined the rapacious competition for passenger traffic. [6] Steam railway revenues soared at the turn of the century thanks to William Van Horne's and Charles M. Hays' enterprising expansion of railway service, especially in sleeping, dining, and parlour car departments. [7] A four hundred-pound bonvivant, Van Home decided that he would make Canadian sleeping cars the most palatial liners in North America. The ambitious president tripled investments in the CPR's parlour and sleeping car department between 1885 and 1895. [8] He commissioned artists and interior designers who improved on Pullman's designs: they broadened berths to accommodate Van Horne's girth, installed bathrooms on first-class sleepers, and served generous portions
  • 29. i n dining cars. [9] Van Home's tactics proved most lucrative. The Canadian Pacific Annual Shareholders reports boasted that revenue from the parlour and sleeping car department swelled from $24,071 in 1884 to $721,006 in 1904, with a profit margin for the latter year of over a half million dollars. [10] Even smaller lines like the Canada Atlantic Railway (CAR) joined the excitement over sleeping cars. In November 1898, the CAR ordered four new cars from the Pullman Palace Car Company at a total cost of $31,740: two first-class sleeping cars with mahogany interiors and two second-class sleepers "finished in oak with double thick glass ... [and] seats of leather." [11] That same year, the Intercolonial Railway spent $159,526.40 on eight sleeping cars built by Pullman's chief competitor, the Wagner Palace Car Company of New York. [12] Corporate enthusiasm over sleeping car service produced a prodigious demand for other symbols of Pullman's signature service -- black railway workers. Soon after the Civil War, George Pullman singled-out newly emancipated African American men for his service, regarding them as seasoned service workers. Historian Braislford Brazeal contends that Pullman also solicited black porters because they were a "plentiful source of labor [and] societal caste distinctions between Negro and white people created a 'social distance' which had become an accepted fact in the mores of American society." [13] Canadian railway companies avidly
  • 30. sought black railroaders for their sleeping car service because the image of broad smiling, white-gloved, crisply uniformed black men proved a moneymaking triumph with Canada's wealthy white railway clientele. Initially, the CPR, GTR, and ICR culled early black railwaymen from Canadian cities with sizable African Canadian populations, namely Halifax, Montreal, and Toronto. [14] In later y ears, Canadian railway companies turned to the Southern United States and West Indies for other black railroaders. The Intercolonial Railway found a ready supply of black transportation workers in Africville, Halifax's historically black neighbourhood. Bordered by railway tracks and Halifax Harbour, Africville became a black neighbourhood during the 18th century when thousands of African American Loyalists and West Indians migrated to Halifax. [15] A vibrant port city and the railway capital of the Maritirnes, Halifax teemed with black transportation workers. [16] Black Haligonians' lives were steeped in Maritime culture. Hundreds of African American and West Indian seafarers docked in Halifax on their transatlantic steamship routes, with many establishing permanent residence in the city after careers at sea. Already accustomed to transnational lifestyles, mariners were well suited to life on the rails. Many seafarers welcomed railway work as relief from long, dangerous sojourns at sea. Charles Pinheiro, a Barbadian steward on the SS Acadia joined the ICR sleeping car department in 1888 and remained in its employ until his retirement. [17] Other black mariners wedded railroading with
  • 31. seafaring in order to insure full employment, offset boredom, and shield themselves from seasonal layoffs. In some cases, mariners retired their sealegs for work on the rails after marrying into Halifax families. Demararan seaman James Knight married Annie Joseph, a Halifax mariner's daughter, in 1880; thereafter, he worked intermittently for the ICR and sailed on the Orion. [18] Black Haligonians enthusiastically joined the rails during the ICR's heyday. The railroad promised steady employment and a respectable wage for those fortunate enough to land full-time employment, such as W. H. Blair, John Collins, Thomas Corbett, Joseph H. Daley, P. Driscoll, and P. Grannan, each of whom portered over 340 days during 1898. [19] In fact, black railroaders readily found work across Canada. Many African Canadians migrated westward for promotions or better opportunities with the Pullman Palace Car Company, the Canadian Pacific Railway, and the Grand Trunk Railways headquartered in Montreal. Payroll rosters indicate that forty-nine men in Montreal, one hundred in Toronto, and thirty-nine in London portered for the GTR in 1902. [20] Full-time porters drew monthly salaries ranging from $20-35 per month to $300-450 a year. [21] Experienced porters were rewarded with higher-waged runs on private government cars. David Hawes and John B. Cameron, who manned the sleepers Cumberland, Montreal, and Ottaw a exclusively reserved for prominent members of Parliament, earned annual salaries of $420. [22] Even
  • 32. Winnipeg offered work for men willing to bear its harsh winters and long runs to the Pacific coast. Canadian Northern Railway payrolls show that seventy-six men portered out of Winnipeg during the summer of 1909, with wages varying from $1.75 per day to $50 per month for seasoned railroaders like E. Naperton. [23] Black railroaders in Canada enjoyed a broad range of employment options not available to black railwaymen in the United States at the turn of the century, where Jim Crow and the Big Four brotherhoods limited their occupational choices. Variable wages, uncertain demand, and exclusion from white unions taught these black railroaders the importance of diversifying their experience on the rails, as evidenced by employment patterns on the Intercolonial Railway. R. J. Murray was a brakeman for 51% days, worked as a baggagemaster for 2 days, and portered for 12 3/4 days, while L. Scothorn worked as a brakeman for 67 days, then as a shunter for 14 days, and finally portered for 5 days. [24] B. Dickie, R. Elliott, J. R. Fraser, J. P. Gough, and B. F. McKinnon supplemented their portering wages with work as brakemen, car-checkers, shunters, and baggagemasters. [25] Working the rails in any capacity meant flirting with danger. Brakemen had the death-defying task of running on top of moving railway cars, made icy during winter months, and turning the brake
  • 33. wheel while also maintaining their balance. Those who failed met with sudden death along the tracks. The shunter's work proved no less perilous. Switchmen, as they were also known, dropped a levy to stop the cars and switched often poorly lit tracks so that trains going in the opposite direction could gain safe passage. Less hazardous, though equally rare, were black nightwatchmen who moonlighted when on leave from the sleeping car service. [26] Other black railroaders like Peter Bushenpin and David Jones worked as coopers for the ICR after years of portering. [27] Black men worked as waiters and cooks on the ICR, GTR, and CPR, higher paying positions otherwise solely reserved for white men working for other North American railway companies. [28] Black railwaymen in Canada held a virtual monopoly over sleeping car service as early as the 1880s. Caring for passengers in first class sleeping cars remained the porter's primary function, though the company also expected that he render various other services without compensation. The porter was responsible for all aspects of the sleeping car ride, except for collecting tickets, which the conductor performed. Railway companies required that porters report to their cars two hours prior to a scheduled run in order to prepare their sleepers. Once assigned to a car, they insured that it was clean and fully equipped; in case it was not, they hurriedly buffed and polished before passengers boarded. Canadian railway companies did not pay porters for this time consuming compulsory dead work.
  • 34. Wood or coal burning ovens heated early sleepers not yet equipped with central heating at the turn of the century. Before leaving the station on a run, porters had to load their sleepers with enough fuel for the journey. They constantly struggled to keep soot from soiling the car or flying cinders from starting unruly fires. In summer, huge blocks of ice cooled down the sleepers. Loading these slabs was clumsy, dangerous work as it required that porters crawl onto the sleeper's roof and drop the cube down into its cooling mechanism compartment. Controlling the temperature, an on- going annoyance to both passengers and workers, often made early sleeping cars unbearably hot or cold, depending on the season. Once on the road, the sleeping car porter tended to his passengers' every whim. The porter greeted travelers, stowed luggage, pulled down berths in the evening, and hurriedly converted them back into seats in the morning. Responsible for remembering passengers' schedules, he was severely reprimanded when someone missed their stop. The porter, whom passengers condescendingly called 'George' or 'boy', served food, mixed drinks, shined shoes, cared for small children, sick passengers, and drunken ones too. [29] Herb Carvery, who portered during the 1950s, remembered "we were babysitters, not only for little kids but for adults....[S]omeone would get drunk on the train and many times you would have to say up all night just to watch them so they wouldn't aggravate somebody else." He added that when "someone would get sick, you would have to attend to them." [30] Historians on wheels, passengers expected that the sleeping car porter know the landscape and history of areas along his trek. A confidante and
  • 35. armchair therapist, the porter feigned interest in travelers' tales and told a few os his own. Sleeping car porters tended smoggy smoking cars, swept up cigarette and cigar ashes, washed out cuspidors, and inhaled stale, smoky air for hours on end. In the days before automated washrooms, they did their best to maintain sanitary conditions in crudely equipped lavatories. Porters frequently suffered chronic sleep deprivation since the company worked them on seventy-two hour shifts without providing any sleeping quarters. They endured other health hazards on the road as well. Derailments, common in the early days of rail travel, cost many railroaders their lives, particularly when traveling through the Rockies' slippery slopes. [31] Policing gamblers, thieves, and rambunctious passengers also posed a constant danger for black railwaymen. The consummate diplomat, the porter walked a social tight rope in Pullman's romanticized mobile time capsule. In 1930, journalist Murray Kempton reflected that for many white travelers, porters seemed like "a domestic apparently unaltered by the passage of time or the Emancipation Proclamation." Yet alluding to the film The Emperor Jones featuring Paul Robeson, Kempton proposed that "[t]here was a certain thrill to the notion that he might be a Communist or a murderer or even an emperor." [32] Sleeping car porters understood that these racialized fantasies were inseparable from their passengers' other expectations. They enabled white passengers to cling to an Antebellum racial ideal, while black
  • 36. workers understood that their livelihood -- and at times their very lives -- depended on acting out the part of this offensively racialized construction. Challenges to the charade and perceived social transgressions, especially against white women, carried heavy penalties: a porter could be fired or subjected to a wo rse fate -- lynching. Required to smile and act submissively, they did so hiding their thoughts, their dreams, and sometimes their rage. [33] Though the work was certainly taxing, black Canadians embraced railway employment since other industrial jobs presented a different set of hazards without the reward of lasting employment. Likewise, working for Canadian railway companies afforded enterprising black transportation workers the freedom to pursue other professional interests. African Australian John D. Curl portered for a time before opening a cigar shop in Halifax. [34] B. A. Husbands operated a West Indian import goods store with money obtained from seafaring and portering, while Jamaican-born Rufus Rockhead financed his famous Montreal jazz club with income earned on the rails. [35] Thus it seemed that by the end of the 19th century, Canadian railway companies and African Canadians had struck a mutually beneficial covenant. The railroads needed workers just as African Canadians needed stable employment. Canadian railway companies found an untapped pool of ready black workers among African Canadians who spoke English and adapted easily
  • 37. to railroading because of their experience in other transportation sectors. Best of all, black railroaders did not belong to any unions. For African Canadians, the rails fulfilled the wanderlust of men accustomed to lives on the move and promised dependable work during a period of industrial transition. African Canadian railroaders hoped for a secure place on the rails but they did not find it. During periods of high unemployment or economic recession, Canadian railway companies discharged black workers, replacing them with inexperienced white labour. The Halifax Herald exposed this practice in the spring of 1898 when it headlined "Colored Porters on the Intercolonial Railway Were All 'Fired' and Without Cause." [36] J. S. Barbee, one of the dismissed ICR porters, told reporters "[o]ur places have been filled by white officials," and accused railway managers with "drawing the color line with a vengeance." [37] William Dixon, another fired ICR sleeping car porter and brother of the celebrated pugilist George Dixon, informed Halifax journalists that "the action of the government ... is a shabby piece of business. Men with families have been turned out without notice or cause, and failing to find work in Halifax they must leave the city." [38] All of the fired Intercolonial Railway porters shared similar backgrounds. Experienced transportation workers, many had joined the ICR after careers at sea. A number of the men were West Indians, residing in Africville after marrying white or bi-racial
  • 38. women. All of the porters also belonged to Union Lodge, a black freemasons' temple popular with seafarers, sleeping car porters, and prosperous black Haligonian businessmen. Established in January 1856, Union Lodge members controlled commercial assets in Africville and served as guardians of their community's interests. [39] Hence, the federally-owned Intercolonial Railway's move against sleeping car porters roused black Haligonians who viewed these Union Lodge men as Africville's prominent denizens. Disillusioned, black Haligonians questioned whether the rails were indeed a wise investment in their future when white supremacy -- more than industriousness -- determined their fate. "Righteously indignant," black Haligonians gathered to "consider the best means to be taken to remedy a most serious matter." [40] Reverend Doctor J. Francis Robinson, an African American Baptist minister stationed in Halifax, led the charge. Speaking before his predominantly black congregation at the Cornwallis Street Baptist Church only days after the firings, Reverend Robinson did not mince words. "The recent dismissal of the porters from the service of the ICR brings us face to face again with the race, which in the United States and here remains an unsettled question." Robinson urged his congregation and all African Canadians to concede that race "is no longer a sectional question: it is a national question." [41] Reverend Robinson and other black Haligonian protesters
  • 39. insisted that in addition to race, the ICR's move against black workers underscored citizenship, right to work, and living wage issues of import to all Canadians. "Don't drive the poor white or the poor black man out of your country. Give him work and give him good pay.... [A] policy which would arm the strong and cast down the defenceless is unwise ... and one fraught with disastrous consequences." Robinson admonished white supremacist employment practices, reminding the Canadian government that "[p]eace between the races is not to be secured by degrading one race and exalting another; by giving power and employment to one and withholding it from another." Alluding to the United States' strained race relations, Robinson alerted his congregation that "[e]xperience proves that those [who] are most abused can be abused with greatest impunity." He stressed that white Canadians should distinguish themselves from Americans by "maintaining a state of equal jus tice between the classes." African Canadians hoped for due process and "equal justice between the classes" but knew that they would only be attained through political mobilization. Peter Evander McKerrow, a West Indian sailor turned powerful black Haligonian businessman, maintained that since Reconstruction African Americans enjoyed certain citizenship rights still denied to blacks in the Maritimes. "The United States with her faults ... has done much for the elevation of the colored races. She has given to the race professors in colleges, senators, engineers, doctors, lawyers, mechanics of every description.
  • 40. Sad and sorry are we to say that is more than we can boast of here in Nova Scotia." For Reverend Robinson, the solution to black railwaymen's problems was a simple one. He insisted that if "the Negro porters and the race [were] as strongly organized into labour protective unions, etc., like their white brothers, the ICR would not have succeeded so well and peaceably in displacing their colored labour and substituting white in their stead." [42] Without unionization, black railwaymen in Canada would never enjoy true job security and would continually be forced into unemployment or positions "at starvation wages," held Robinson. [43] He berated the Canadian government and ICR managers for subjecting black men and their families to a life of poverty and degradation. "For over 250 years, this race served in bondage, suffering the most poignant sensations of shame, immorality, demoralization and degradation. Its men have been victimized, and they are still victimized, proscribed against and imposed upon by the dominant race both in the United States and here in Canada." Reverend Robinson warned a gainst such white supremacist practices as violations of African Canadians' "civil rights [and] the human right to gain an honest livelihood for themselves and their families." [44] Black Haligonians called immediate attention to Jim Crow in railway employment policy by notifying the national press. [45] "Have No Use For Them -- Coloured Men on the Intercolonial Railway All
  • 41. Fired," exclaimed the Tory newspaper Chatham Planet. The Ontario newspaper accused the Liberal government of betraying its African Canadian constituents. "Liberal leaders at Ottawa seem to have completely lost their heads. ... While Premier Laurier speaks in the most flattering manner of the African race, his officials strike them down in a most brutal way, no complaint, no investigation -- just kick them out." [46] Blacks in the Maritimes also contacted their federal members of Parliament Benjamin Russell and future Prime Minister Sir Robert Borden. Reverend Robinson emphasized that one thousand African Canadian voters in the Maritimes, "a sufficient number to give them the balance of power" would "get organized ... so that their voices and vote would be respected." [47] Conservative Parliament members took Robinson's warning to heart and laid the case of "Coloured Intercolonial Porters" before the House of Commons. [48] George Foster, the member from New Brunswick, inquired whether newspaper reports that "all the porters on the Pullman cars had been dismissed from the service of the Intercolonial" were indeed true. If so, Foster demanded that the Minister of Railways and Canals explain "whether they were dismissed for cause or whether the hon. gentleman is drawing the colour line in that service." [49]
  • 42. Speaking for the Liberal government, Minister Blair rejected any notion that the colour line fueled employment practices on the government-owned ICR. "I am quite sure that the colour line has not been drawn." He assured the House that nothing had "been done in view of discriminating against the colour line in that service." Alphonse La Riviere of Quebec was not so easily persuaded, proposing instead "[p]erhaps the gentleman is colour- blind."[50] Ironically, while Blair denied any governmental wrongdoing with respect to ICR porters, the Minister of Railways and Canals never actually disputed the existence of a colour line in Canadian industries. Over the next two weeks, federal legislators debated the application of discriminatory employment policies, worrying less about its existence than its gentlemanly exercise. Representatives from Ontario and Nova Scotia resuscitated the "colour line" debate again during question … PURPOSEFUL READING (3-2-1) REPORT Version 2.0 Lightly Adapted from a template by Geraldine Van Gyn. Question 1: In your own words, what are the 3 most important concepts, ideas or issues in the reading? Briefly explain why you chose them. Concept 1 (In your own words) (2 marks)
  • 43. Concept 2 (In your own words) (2 marks) Concept 3 (In your own words) (2 marks) Question 2: What are 2 concepts, ideas or issues in the article that you had difficulty understanding, or that are missing but should have been included? In your own words, briefly explain what you did to correct the situation (e.g. looked up an unfamiliar word or a missing fact), and the result. Cite any sites or sources used in APA format. Issue 1 (In your own words) (1 mark) Citation 1 (in APA format) (1 mark) Issue 2 (In your own words) (1 mark)
  • 44. Citation 2 (in APA format) (1 mark) Question 3: What is the main economic story of the reading? (Economics studies the allocation of scarce resources.) Story (In your own words) (2 marks) ECON 321 The Economic History of Canada The CPI and How to Use It OPTIONAL HANDOUT Version 1 Recommended Reading • Stand-Up Economics: Chapter 17, Section 17.2 [Very short] • Stand-Up Microeconomics:
  • 45. http://standupeconomist.com/stand-up- economics-the-micro-textbook/ (Choose the version with calculus.) 2 http://standupeconomist.com/stand-up-economics-the-micro- textbook/ Optional Readings Part 1: Solved Problems • California Department of Finance, “How to use CPI Data,” http://www.dof.ca.gov/Forecasting/Economics/Documents/How _to_Use_CPI_Data. pdf • Gavin Thompson, “How to adjust for inflation,” www.parliament.uk/briefing- papers/SN04962.pdf • Gerald Perrins and Diane Nilsen, “Math calculations to better utilize CPI data,” http://www.bls.gov/cpi/cpimathfs.pdf • ILO, “An Introduction to Consumer Price Index Methodology,” http://www.ilo.org/public/english/bureau/stat/download/cpi/ch1. pdf (ADVANCED mathematical details of price index calculation. Overkill for this course, but presented for the curious.) 3 http://www.dof.ca.gov/Forecasting/Economics/Documents/How
  • 46. _to_Use_CPI_Data.pdf http://www.parliament.uk/briefing-papers/SN04962.pdf http://www.bls.gov/cpi/cpimathfs.pdf http://www.ilo.org/public/english/bureau/stat/download/cpi/ch1. pdf Optional Readings Part 2: Canada’s CPI • Statistics Canada, Your Guide to the Consumer Price Index, Catalogue No. 62-557- XPB. http://www5.statcan.gc.ca/olc-cel/olc.action?objId=62- 557- X&objType=2&lang=en&limit=1 (A non-technical introduction to the CPI.) • Inflation Calculator, Canada’s CPI Basket of Goods and Services, http://inflationcalculator.ca/cpi-basket/ (Shows what’s in the basket, and how basket weights have changed over time.) • James Rossiter, “Measurement Bias in the Canadian Consumer Price Index,” Bank of Canada Working Paper 2005-39. http://www.bankofcanada.ca/wp- content/uploads/2010/02/wp05-39.pdf (Problems with the CPI, and how to deal with them.) • Chiru, R. et al. (2015). Calculation of the Consumer Price Index. In The Consumer Price Index Reference Paper [Statistics Canada Item 62-553-X]. Retrieved from https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm
  • 47. (Official details on CPI Calculation, from the definitive reference.) 4 http://www5.statcan.gc.ca/olc-cel/olc.action?objId=62-557- X&objType=2&lang=en&limit=1 http://inflationcalculator.ca/cpi-basket/ http://www.bankofcanada.ca/wp-content/uploads/2010/02/wp05- 39.pdf https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm What is a price index? • Tracks the price of a basket of goods over time. • (e.g. 1 can of pop + 1 cookie, or 1 bottle of cookie pop) • Everything is compared to a base year. • Let Ct = cost of the basket in year t • Cbase = cost of the basket in the base year • Index = Ct/Cbase x 100 • This shows how prices have changed since the base year. • e.g. Index of 115 means prices are 115% of base year prices • The CPI is a measure of the price level. • Inflation measures the change in the price level. 5
  • 48. Using an index to calculate yearly inflation, f • Let Pt = Price index for year t • Inflation, f = the % increase in P from one year to the next • The rate of inflation in 2016 (say) would then be (P2016 – P2015)/P2015 • f2016 = (P2016 – P2015)/P2015 6 Some Common Indices • Consumer price index (CPI): goods bought by a representative household • Producer price index (PPI): goods bought by a representative producer • GDP Deflator: all goods and services produced within Canada in a given year. 7 0% 10% 20% 30%
  • 49. 40% 50% 60% 70% 80% 90% 100% 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 W e ig h ts ( % ) Year Evolution of Canadian CPI Basket Weights (Broad Classes) Food Shelter
  • 50. Household Operations, Furnishings & Equipment Clothing and Footwear Transportation Health and Personal Caare Recreation, Education and Reading Alcoholic Beverages and tobacco Products More details: http://inflationcalculator.ca/cpi-basket/ These weights are shares of spending (since $ are a convenient common unit). http://inflationcalculator.ca/cpi-basket/ How do these weights figure in? • Canada (and many other countries) use a Laspeyres price index, which is a bit more complicated than our basic cookies & pop index. • We need three components: • A price for each class j in year t, ��� • A base year price for each class, �0� • A weight/share of base year spending by class, �0� (if the weights never change) • Canada uses a modified Laspeyres index called a Lowe index, in which the shares are calculated using data from different years: quantities are from some weight reference year for which we have good quantity data, while prices are
  • 51. from the base year (price reference year). For details, see sections 6.23 to 6.35 on https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm 8 https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm How do you calculate shares of spending? • The share of spending of Class j in year t is the % of the value of the basket that year that was spent on Class j. • Let ��� be the quantity of Class j goods bought in Year t. • Then total spending on Class j in Year t is ������ (Price x Quantity) • If there are n categories, total spending on ALL basket goods in year t is σ�=1 � ������. • The share of spending of Class j in year t is therefore ��� = ������ σ�=1 � ������ • (Divide the amount spent on Class j, by the amount spent on
  • 52. all classes, in Year t.) 9 � � Assembling the Laspeyres Price Index • Suppose we are keeping our weights constant at base year (Year 0) levels. • If there are n classes, then the Laspeyres price index for year t, Lt, is �� = � �=1 � ��� �0� �0� × 100 • Keep in mind this is simpler than the CPI calculation actually used by Statistics Canada. For details, see https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm 10 � �
  • 53. https://www150.statcan.gc.ca/n1/pub/62-553- x/2015001/chap/chap-6-eng.htm Example: Apples and Oranges • Using Year 0 as the base year, let’s calculate a Year 1 price index. • For our Laspeyres Index, we only need Year 0 shares. • Year 0 spending on apples: 1 $/apple x 10 apples = $10 • Year 0 spending on oranges: 3 $/orange x 8 oranges = $24 • Total Year 0 spending: $10 + $24 = $34 • s0apples = $10/$34 = 29%, s0oranges = $24/$34 = 71% 11 Year 0 Price Year 1 Price Year 0 Quantity Year 1 Quantity Apples $1 $2 10 9 Oranges $3 $4 8 7 Moving on… �1 = �1������ �0������ �0������ +
  • 54. �1������� �0������� �0������� × 100 �1 = $2 $1 × 29% + $4 $3 × 71% × 100 = 152.9 (rounded) • Note that, by definition, the index is 100 in the base year. • The choice of the base year depends on the application – your text uses the project’s ‘Year 0’, because that’s a very convenient choice for engineering economics applications. • We could have just as easily used Year 1: in CPI indices, etc., the base year can be any year for which complete data is available. • For example... Cake ingredients as a basket, 1925 as the base year: 12 13
  • 55. 15 20 25 30 35 40 45 50 55 60 1914 1919 1924 1929 1934 1939 1944 1949 1954 1959 Cost of Ingredients (Canadian cents) (Sources: DBS, The Canadian Cookbook 1925 & 1953) Standard Cake Raisin Cake 14 50 75
  • 56. 100 125 150 175 1914 1919 1924 1929 1934 1939 1944 1949 1954 1959 In d e x (1 9 2 5 = 1 0 0 ) Year Laspeyres Indices (1925 base) vs Official Canadian CPI CPI(1925 base) Standard Cake Raisin Cake
  • 57. 15 -30% -20% -10% 0% 10% 20% 30% 1914 1919 1924 1929 1934 1939 1944 1949 1954 1959 Year-on-Year Inflation, 3 Canadian Indices CPI Standard Cake Raisin Cake Year-on-Year Inflation = % change in a price index from one year to the next. Problems with indices • Substitution bias: Pizza’s more expensive? Switch to ramen.
  • 58. Problem: weights don’t reflect this. (This is one reason Canada re- calculates weights.) • Increase in quality bias: a phone in 2002 is not the same as a phone in 2019 • New product bias: things that didn’t exist at the basket’s creation aren’t taken into account. • Outlet bias: where should price be sampled? Thrifty’s or CostCo? 16 = 2002 2019 ??? = Party trick: Price in any year • Let �� = cost in year t Cx CY = CPIX CPIY
  • 59. • When you hear ‘in 1995 dollars’ or some such, this is what they’re talking about. • Intuition: If things are twice as expensive in Year X as in Year Y, the cost in Year X is twice the cost in Year Y. 17 � � Where this might come in useful… • Marty McFly uses a time machine to travel between 1955, 1985 and 2015. • All of his destinations are in the United States. • The US CPI was 26.8 in 1955, 107.6 in 1985 and 235.8 in 2015. • The time machine is made out of a DeLorean DMC-12 car. • In 1985, a DeLorean could be bought for $12,000 • In 2015, a DeLorean sold on average for for $54,000. • Has the DeLorean become cheaper or more expensive with age? 18 Originally, this example included
  • 60. highway construction costs... …but where we’re going with this example, we don’t need roads. P1985 = P2015 CPI1985 CPI2015 P1985 = $54,000 107.6 235.8 = $24,641.22 • In real terms, the DeLorean has doubled in price! • Should Marty (and Doc) start a cross-time used car dealership? • Sadly, over 30 years, that return only averages to about 2.5% a year… • $24,641.22 = $12,000 × 1 + 0.24742 30 • Probably better to bring back a sports almanac… What is the 1985 equivalent of $54,000 today? 19 http://www.kedificil.com/wp-content/uploads/2013/08/great- scott-doc-back-to-the-future-drawing.jpg http://www.kedificil.com/wp-content/uploads/2013/08/great-
  • 62. Price of Cake Ingredients (2017 $) (Sources: DBS, Statistics Canada, The Canadian Cookbook, Thrifty's) Standard Cake Raisin Cake 2017 Standard 2017 Raisin When I deflate using the official CPI, note the LOW cost during WWII, and the HIGH cost in the late 1940s and early 1950s… Inflation tracking for time travelers • When going back in time from 1985 to 1955, Marty was surprised to find how cheap everything was. • A 12-ounce bottle of Pepsi cost 10 cents in 1955, compared to 15 cents in 1985 (inferred from the cost of a 2-litre bottle). • Let’s calculate average annual inflation between 1955 and 1985 using first the CPI, and then by using the price of 12 ounces of Pepsi. • The two values will not be the same! There’s immediately clear reason why the price of Pepsi should track the CPI perfectly.
  • 63. • Our two baskets (CPI basket, 12 ounces of Pepsi) are very different. 21 Pepsi Ad, 1955 • Let P stand for the index used. After 30 years of inflation of f per year, something that cost $1 in 1955 would cost $1 x 1 + f 30 in 1985. • Our index is �55 in 1955, and �85 in 1985. �55 1 + f 30 = �85 �85 �55 1 30 − 1 f��� = 107.6 26.8 1
  • 64. 30 − 1 = 4.7 % f����� = 0.15 0.10 1 30 − 1 = 1.4 % 22 1985 ad for Pepsi What’s so bad about inflation? • If all prices rise, including wages, why worry? • First: some redistribution of income (winners and losers) • If your income is ‘sticky’, you can lose out. • (Important in many union negotiations) • Menu costs: it costs money to send someone around with the price gun and/or print new menus • Sometimes inflation can’t be accurately predicted. • Unexpected(ly high) inflation helps borrowers and hurts
  • 65. lenders. • Your turn: why? • Unexpectedly low inflation helps lenders and hurts borrowers. • Deflation is sticky, and brings its own problems… 23 24 Inflation bad, deflation good? Not quite… • In the 1990s (and after), Japan saw falling prices for just about everything. • You’d think this would boost spending, since demand slopes downward. • BUT people expected prices to fall. • A vicious self-fulfilling cycle of expectations. • This trap is VERY difficult to get out of. • Stable, small, positive inflation is what most central banks aim at • (about 2% a year is a common target) • It’s uncertain whether the Bank of Japan can create lasting inflation.
  • 66. • (credibility, overcoming expectations) (Source: http://www.japanreview.net/essays_can_the_bank_of_japan_cre ate_inflation.htm ) Well worth reading, if a bit beyond the scope of this course. 25 http://www.japanreview.net/essays_can_the_bank_of_japan_cre ate_inflation.htm (Source: http://avondaleam.com/us-vs-japan-cp/ ) 26 http://avondaleam.com/us-vs-japan-cp/ ECON 321 SPRING 2020 – INDIVIDUAL ASSIGNMENT 5 TO BE SUBMITTED VIA COURSESPACES BY 11:59 PM ON MARCH 10th, 2020 Name (First, Family) Last 3 digits of SID TO SPEED UP MARKING, PLEASE ANSWER THE QUESTIONS IN THE FORMS AND SPACES PROVIDED. THE T.A. RESERVES THE RIGHT TO NOT MARK ANY
  • 67. QUESTIONS THAT ARE NOT ANSWERED IN THE EXPECTED LOCATIONS. By submitting this assignment you agree to the following honor code, and understand that any violation of the honor code may lead to penalties including but not limited to a non-negotiable mark of zero on the assignment: Honor Code: I guarantee that all the answers in this assignment are my own work. I have cited any outside sources that I used to create these answers in correct APA style. Marking scheme – Make sure you answer all the questions before handing this in! Question Marks 1 a 12 2 a 3 b 3 c 3 3 a 4 b 4 Total
  • 68. 29 QUESTIONS 1. Read the following paper: MacDonald, N. (1977). The Canadian Pacific Railway and Vancouver’s Development to 1900. BC Studies, 35, pp. 3-35. Retrieved from https://doi.org/10.14288/bcs.v0i35.936 (The article is open access, so you should have no trouble accessing it off campus.) a. (12 marks) Write a 3-2-1 report on the article using the form provided on Coursespaces. 2. [Analysis] Read the following two short articles: · From the textbook: VI.8 “A Subtle Ingenuity in Advertising” (1914), p. 440. · Oyeniran, C. (2019). Sleeping Car Porters in Canada [Web Page]. The Canadian Encyclopedia. Retrieved from https://www.thecanadianencyclopedia.ca/en/article/sleeping-car- porters-in-canada After you have done so, briefly answer the following questions, based on what you learned in your reading and in ECON 321. a. (3 marks) According to the textbook article, the C.P.R. “tried the American cooks and waiters” but found them “unreliable, leaving after two or three months’ employment.” Meanwhile,
  • 69. “the men found in London remained the whole season”. Based on the readings and other material from ECON 321, why do you think that American cooks and waiters were more likely to quit than cooks and waiters brought in from Europe? Briefly explain your reasoning. b. (3 marks) According to the textbook article, the C.P.R. wanted to “harmonize” the skin tone and hair color of waiters and cooks to “the setting of the particular car to which the shade of color should be confined”. In 1914, the company went to a lot of trouble and expense to find employees of just the right appearances in London. Based on the readings and other material from ECON 321, why would the C.P.R., in 1914, have found it desirable (and presumably, profitable) to employ cooks and waiters with appearances that matched the customers in the cars in which they would serve? c. (3 marks) The C.P.R. made an effort to match the skin and hair tones of its cooks and waiters to the passengers in their cars, but even in 1914 most of its porters, who also had face-to- face contact with passengers, were black. Why would the C.P.R. in 1914 prefer black porters, but cooks and waiters of mixed
  • 70. appearances that matched the passengers? If you feel you need more information for this question, I recommend skimming these optional readings: Black Porters on the C.P.R.: Matthieu, S. (2001). North of the Colour Line: Sleeping Car Porters and the Battle against Jim Crow on Canadian Rails, 1880 – 1920. Labour, 47(47). Retrieved from https://go-gale- com.ezproxy.library.uvic.ca/ps/i.do?p=ITBC&u=uvictoria&id= GALE%7CA79381643&v=2.1&it=r C.P.R. Cooks: From the textbook, VI.7 How the Canadian Pacific Selects Cooks (1912), pp. 439-440. 3. [Math] In 1881, the Canadian Pacific Railway syndicate was awarded $25,000,000 as part of its contract. By 1893, some people were complaining that the $0.75 that the C.P.R. charged for its meals was too high. In 2020, $25,000,000 isn’t that much for a large infrastructure project, and paying $0.75 for a meal would be a bargain. This is because the purchasing power of the Canadian dollar has changed over time. In this question, you will be asked to adjust for inflation, and turn the 1881 and 1893 values into 2020 dollars. If we had a CPI (Consumer Price Index) or other reliable price
  • 71. index for Canada going back to 1881, this wouldn’t be a problem. Prices indices are designed to make the sort of conversion we want easy. By design, if X and Y are years, P is ‘Price’ and CPI is the Consumer Price Index, This means that to put a ‘Year X’ price in 2020 dollars, we just need to plug the appropriate values into Example: Q: In 1939, large eggs sold for $0.26 a dozen in Victoria, B.C. (at a now-defunct supermarket called Ray’s). The Canadian CPI for 1939 is 7.7. The current estimate of the Canadian CPI for 2020 is 136.8. Use this information to convert the price of eggs in 1939 to 2019 dollars. A: Px/Py = CPIx/CPIy P2020 = $0.26 x 136.8/7.7 = $4.62 In 2020 dollars, a dozen egg’s at Ray’s cost $4.62. That means eggs have actually gone down in price, in real terms, since in 2019, large eggs sell for $3.69 a dozen in Victoria, B.C. (at Thrifty’s). (For more details, see the CPI lecture notes in the same folder as this assignment.) The problem is that we don’t have a CPI for Canada going back to 1881. The Canadian CPI series starts in 1914. In this question, you’ll try to make up for that by ‘patching in’ two price indices that DO go back to 1881 – those of Canada’s two main trading partners at the time, the U.S. and Britain.
  • 72. You will use the U.S. and British price indices to put the 1881 and 1893 prices in terms of 1914 dollars, then use the Canadian CPI to bring the price indices from 1914 to 2020. This will give you a rough range for the ‘2020 dollars’ equivalent of the two items were are looking at – a large cash subsidy in 1881, and an ‘expensive’ train lunch in 1893. Information Needed: C.P.R. cash subsidy, in 1881 dollars: $25,000,000 Cost of a C.P.R. lunch, in 1893 dollars: $0.75 Year US CPI British CPI Canadian CPI 1881 10.2 100.0 1893 9.0 95.0 1914 10.0 105.5 6.0 2020
  • 73. 136.8 a. (4 marks) What is the range of values, in 2020 dollars, for a $25,000,000 subsidy in 1881? Estimate using the U.S. (and Canadian) CPI: $_______________________ Show your work: Estimate using the British (and Canadian) CPI: $________________________ Show your work: b. (4 marks) What is the range of values, in 2020 dollars, for a $0.75 lunch in 1893? Estimate using the U.S. (and Canadian) CPI: $_______________________ Show your work:
  • 74. Estimate using the British (and Canadian) CPI: $________________________ Show your work: 2