711.4216C78/5
The Minister in Canada (Phillips) to the Secretary of State
Ottawa, May 16, 1929.
[Received May
20.]
No. 997
Sir: I have the honor to acknowledge the
receipt of the Department’s instruction No. 531 of May 11th in regard to
the proposed power development in Passamaquoddy Bay by Dexter P. Cooper,
Incorporated, of Eastport, Maine.
Immediately on receipt of this instruction I sought an interview with the
Prime Minister, and yesterday, May 15th, I had a somewhat lengthy
conversation with him on the subject. Believing that it would be
desirable to leave with him a summary of the case, I handed to him at
the end of my conversation an Aide Mémoire which
covered substantially the points raised in the Department’s instruction
under acknowledgment. I pointed out the interest of the state of Maine
in this whole enterprise, as well as the approval which the interested
Departments of Government in Washington had already given it; that the
Province of New Brunswick, in granting the charter, had very clearly
expressed its approval, and that in these circumstances it would seem to
be only just and fair to allow the interested Departments of the
Canadian Government to express their views. The extension of time which
was now requested, I said, was really in the interests of the Canadian
Government itself, and at the same time seemed fully justified in view
of the heavy expenditure already incurred by the company.
The Prime Minister at first expressed doubt as to whether a bill which
had once been disapproved by the Parliamentary Committee on Bills could
be brought up again at the present Session, and since the Committee had
refused to grant the extension of time requested in the Dexter P. Cooper
Company bill No. 73, he felt that it might be difficult for him to
respond favorably to our request. However, I continued to press the
matter, and Mr. King thereupon sent for a law officer of the House and
asked him whether a bill which had once been disapproved by the
Committee could be reintroduced at the present Session. The law officer
advised the Prime Minister that while the bill itself could not in these
circumstances come up for reconsideration by the Committee on Bills,
there was nothing to prevent the House from giving consideration to the
whole subject on a private motion. In other words, as the law officer
explained, the Committee on Bills could not prevent the House from
giving consideration to anything which it desired to consider.
Mr. King concluded the interview by saying that the law officer’s opinion
disposed of the objection which he had previously raised,
[Page 83]
and he promised to give the
matter prompt and careful consideration.
In this connection I beg to enclose a copy of a communication from the
American Consul at St. John, New Brunswick, dated May 10th, which is in
reply to an inquiry which I had previously addressed to him with
reference to the Passamaquoddy Bay power project. Mr. Wormuth’s letter
is of such interest that it seems to me the Department would wish to
have the information contained therein before it. Inasmuch as the Consul
did not send duplicates of the newspaper clippings to which he referred,
I am retaining them in the Legation files.
I have [etc.]
[Enclosure]
The Consul at Saint John, N. B. (Wormuth) to the Minister in Canada (Phillips)
Saint John, N. B., May 10,
1929.
Sir: I have the honor to acknowledge
receipt of your letter of May 3, 1929 in reference to the
Passamaquoddy Bay power project and the information available at
this Consulate in reference thereto. In a general way, this project
allows the erection of dams for the purpose of utilizing the tides
of the Passamaquoddy Bay for the purpose of developing
hydro-electric power, the estimated expense of the project being
approximately $100,000,000.
I had the pleasure of attending a meeting of the Engineers’
Association at Saint John about a year ago when it was addressed by
Mr. Cooper and the project was explained by him in detail. The
general impression among the engineers seemed to be that the project
was unique but probably feasible. One of the questions seriously
debated was whether the initial cost of the development would not be
so great as to render the price of power sold too high to be
profitable. Opinions seemed to be divided upon this point but Mr.
Cooper maintained that the development would furnish cheap
hydro-electric power for manufacturing industries in New England and
New Brunswick.
Discreet inquiries have been made as to the attitude of the public in
Saint John on account of the refusal of the Dominion Government to
extend the charter of the Cooper Company and the attitude of
everyone except Connors Brothers seems to be favorable to the
development. So far as the International Paper Co., an American
concern which is developing 60,000 hydro-electric horse power at
Grand Falls for manufacture of pulp and paper, and the New Brunswick
Power Company, a branch of the Federal Light and Traction Company
[Page 84]
of New York City which
develops electric power by a steam plant for lighting purposes and
the operation of the street railways of Saint John, are concerned,
it is believed that their attitude is neutral. The New Brunswick and
Maine legislatures have consented to the development. The
Commissioner of the Board of Trade informed me that he was somewhat
disappointed at the action of the Dominion Legislature in that an
investigation had disclosed a reasonable expectation of obtaining
cheap power from the Quoddy project, which would encourage the
development of manufacturing in New Brunswick.
Geoffrey Stead, Chief Engineer of the Department of Public Works in
this city, informed me personally that it would be carried out as he
was interested from an engineering standpoint and was inclined to
believe the project feasible. The general attitude of the interested
and understanding public seems to be that the Quoddy project would
be a most hopeful asset in the development of manufacturing
industries in New Brunswick, and, of course, New England.
The only decided objection to the project comes from two sources,
one, Connors Bros, of Black’s Harbour who have the most important
sardine canning industry in New Brunswick and who export to many
foreign countries, and the fishermen generally in the vicinity of
Passamaquoddy Bay. The second objection comes from the Canadian
Pacific Railway, who own the Algonquin Hotel at St. Andrews, N. B.
in the vicinity of Passamaquoddy Bay.
The important objection is that of the fishing industry, especially
Connors Bros. Their objection is based upon the opinion of Dr.
Huntsman, who is the director of the Atlantic Biological Station at
St. Andrews, N. B. and who expresses the belief that the sardine
fisheries of Passamaquoddy Bay depend for their value upon the
constant mixing of the waters caused by the tides which brings food
for the sardines to the surface and that the erection of the dam
would change conditions particularly above the dam to such an extent
as to destroy or greatly impair the value of Passamaquoddy Bay as a
home for the sardine. He also believes that the Quoddy project would
result in the formation of ice above the dam, thus interfering with
navigation, and resulting in a climatic change which would tend to
impair the value of this section as a summer resort. This opinion of
Dr. Huntsman explains the attitude of the Canadian Pacific Railway
on account of the loss of custom which they fear will result to the
Algonquin Hotel, one of their leading Canadian summer hotels.
Several articles of Dr. Huntsman appearing in the Telegraph Journal during 1928 are herewith transmitted as
indicating his position in the matter and also giving a general
review of the Quoddy project.
The Cooper Company have great difficulty in estimating the damage,
[Page 85]
if any, that would occur
to the fisheries below the dam. The company claims that the mixing
of the waters below the dam would not be affected and that the sole
damage would occur to the fisheries above the dam and that this
damage could be readily estimated.
It is reliably reported that Dexter Cooper has stated that he would
go ahead with that portion of his project which involved only the
American waters and would result in a fractional development of the
tidal power at the mouth of the St. Croix River, no matter what
action was taken by the Dominion Government. Such a development
would probably furnish whatever power was necessary for American
industry on the American side of the St. Croix but would be of
little or no benefit to Canadian industry. If the American side only
were developed it would be difficult at a subsequent time to develop
the entire project as at present contemplated, inasmuch as certain
dams would have to be removed and rebuilt, resulting in an initial
expense too great probably to insure a profitable return.
The present development of hydraulic resources of the Province of New
Brunswick is probably ample to supply the present market for power
and a clipping from the Financial Post of
November 18, 1927, is herewith enclosed as giving a fairly accurate
survey of conditions in the Province. The future development of
manufacturing industries in this Province, however, necessarily
depends upon cheap power and the situation is briefly this, that
people interested in the future of New Brunswick trust that the
Quoddy project would by furnishing cheap power induce American
capital and capital from other parts of Canada to locate in New
Brunswick and establish manufacturing industries.
This survey is, of course, rather hastily compiled and a discreet
inquiry has been made of our consul at St. Stephen for such
information as may be at his disposal, and from other sources, which
will be forwarded as soon as received.
I have [etc.]
