The following is an article from the Okanagan Historical Society , Vol 66, pg 59-71 2002
The Beginning of Summerland 100 Years Ago
by
David Gregory
The year 2002 marks the hundredth anniversary of the founding of Summerland. With the purchase of the George Barclay ranch in August 1902 by the Summerland Syndicate; Summerland was created. The community was ultimately incorporated four years later.
The most widely accepted view of the founding of Summerland is that “J.M. Robinson had founded Peachland and now drew his attention on Summerland. Robinson was able to obtain $60,000 from Thomas Shaughnessy in Montreal to purchase land and Robinson founded Summerland”. This version of history is somewhat unusual. Canadian Pacific Railway President Shaughnessy was famous for his thorough study and attention to detail. His approach to financial matters was conservative and cautious. In fact, Shaughnessy’s approach to financial matters was largely responsible, for the survival of the C.P.R. (1) This article will provide a different prospective in the founding of Summerland: the role of
G. .Shaughnessy
President of the Canadian Pacific Railway 1899-1918)
The Canadian Pacific Railway: Van Horne and Shaughnessy’s
Agriculture Initiative
Lady Aberdeen’s Coldstream Fruit Ranch at the north end of the Okanagan Valley was British Columbia’s first large-scale commercial fruit operation. The Canadian Pacific Railway was a strong supporter of this venture. In October 1895, C.P.R, President Sir William Van Horne, and other CRP executives: John J. Abbott, Richard B. Angus, Richard M. Marpole, Thomas Tait, Henry J. Cambie and Edward Clouston visited the Coldstream Ranch. These executives promised a market for the Coldstream fruit in the upcoming season. (2) Following his visit Van Horne wrote that, “Mr. Angus and Mr Clouston came away from the Coldstream Ranch with quite a new idea of the possibilities of British Columbia”. (3) Ranch manager William Crawley Ricardo in 1896 went to Montreal to sign a contract with the C.P.R. for use of the Coldstream Ranch’s fruits and jams on CPR dining cars, hotels and boats. With confirmed markets, the Coldstream Ranch produced and sold 20 tons of fruit in 1896. According to Lady Aberdeen (1896), “the CPR has taken all our fruit large and small this year”. (4) With the support of the CPR, the Coldstream Ranch was one of the largest producers of fruit in the British Empire. (5)
In 1899, Thomas Shaughnessy became president of the Canadian Pacific Railway and he continued Van Horne’s efforts to support agriculture in the interior of British Columbia. The C.P.R. and Shaughnessy wished to expand the agricultural potential of the interior of the province. The C.P.R. initially was interested in acquiring approximately 10,000 acres of potential agricultural land. The CPR thoroughly examined two regions; Kamloops and Trout Creek. (Note: the name Trout Creek was changed to ‘Summerland’ in 1902)
Kamloops; “The Thompson Valley Land Scheme”
Cecil Ward approached Shaughnessy in 1900 regarding his ‘Thompson Valley Land Scheme”. The area included approximately 7,000 acres of land on the West Side of the North Thompson River, about 18 miles from the junction of the South Thompson River. The project included irrigation of the lands by the use of diversion of water from Jamieson Creek. The ‘Scheme’ involved the formation of an English investment company and a partnership with the C.P.R. and English investor Sir Ernest Cassel. Shaughnessy hired George G. Anderson; renowned irrigation engineer, to examine the project. Anderson, from Denver Colorado, had already completed an irrigation project for the Canada North West Irrigation Company which provided irrigation to 300,000 acres of land in Alberta. Shaughnessy also had provincial Public Works engineer F.G. Gamble study the proposal. Several CPR senior staff examined the proposal including Marpole, civil engineer Cambie and General Superintendent William Whyte. In an effort to convince Shaughnessy of the potential for fruit growing in the region, Ward sent Shaughnessy a box a fruit grown near Kamloops on August 8th 1901. (6)
“The Trout Creek Ranche”
Senator John Nesbitt Kirchhoffer (1848-1914) of Manitoba, a friend of Shaughnessy, was aware of the desire of the C.P.R. to acquire agricultural land in British Columbia. Kirchhoffer was a strong believer in the potential for sale of small land holdings for immigrants. As early as 1890, he had written to Shaughnessy about the potential for creating and then selling small land holdings. In 1895, he had mentioned the same idea to the Aberdeens of the Coldstream Ranch. In July 1897, Kirchhoffer offered his assistance to Shaughnessy if he was planning to create town-sites. (7) He was already active in development of lands in the Okanagan. He was one of the major shareholders of the ‘Peachland Townsite Company. This land company was incorporated on November 20th 1899. Other share-holders with Senator Kirchhoffer included J.M. Robinson (President), Dr. C. J. Jamieson (vice-president), W.J. Robinson (secretary-treasurer), D. H. Watson, R.
C. Lipsett, W. E. Huston, G.H.V. Bulyea, F. Chaplin, J. Giles, D. H. Scott, G. A. Henderson, T. Anderson and Rev. A.T. Robinson.
Senator John N. Kirchhoffer
In 1900, J.M. Robinson became aware of the potential sale of the Trout Creek Ranch, owned by George Barclay, south of Peachland. In 1900, Barclay wrote the following letter to Robinson describing his ‘ranche’. (Copied exactly as written by Barclay)
Gartrell 1000 inchesDay 500 inches
Barclay 500
Indians 100
Wood Gartrell
Kelowna Aug 31st
Dear Mr. Robinson,
...............I still wish to sell my ranch at Trout Creek. In answer to your enquires I have about (not having my deeds & books here I can only tell you approximately) 3320 acres of land in all of swampland not needing irrigation & already cleared) about 55 acres. Of uncleared swamp land (but could be very easily cleared) about 245 acres of land with water for irrigation about 500 acres. Of orchard about 4 acres nearly all the trees bearing well.
With regards to water I have for my lower ranch first record on Eneas or Snake Creek for 200 inches & Antoin the Indian having second record & I third record for 400 inches more.
Also a half interest in the dam at the head of the creek.
With regards to water on my upper ranch I own the whole of Prarie Creek and a third record on Trout Creek of 500 inches, the third record is practically second as the man owning the second cannot use the water on the land for which it is recorded
Owing to Prarie Creek being drier than formerly I have just led a contract to have a ditch completed from Trout Creek to the lake that Prarie Creek draws its supply from. This has been contracted to be finished by March 1902 and will ensure as much water as we can want on the land for which it is needed. I own about three miles of lake frontage and about 14 miles of fencing & a private wharf. I have a very good house surrounded by garden & verandah, 14 rooms, passage 20 flights of stairs, 2 pantries, 1 bathroom. I have a stable alter, pig sty with 15 pigs, chicken house about 40 chickens also out buildings sheds etc & corrals. I have a double seated democrat buggy, two waggons, one mower, one horse rake, one thrashing machine, one three horse power wood saw, three sets of harness, one saddle & usual farm tools, for blacksmithing etc.
Now as to stock, I have 9 broken team horses, 7 broken saddle horses & about 10 unbroken horses & about 500 head of cattle & six of which are thourough-bred bulls & about 25 sheep. I have also about 200 tons of hay ready stacked also two stacks of oats and one of wheat still unthrashed .
There is a good working man's house besides my own residence.
The ranch would split up into small farms if needed.
My price is $52,000 cash. It is 2,000 more than it was a year or so ago on account of
expensive irrigation scheme & more stack & hay. If preferred by you I will retain the cattle deducting $20 per head for them from the price of the ranch but would prefer to sell out & out to you. This is dirt cheap for the worth of the place but I have private reasons why I am anxious to sell. If you contemplate a deal you can see me on Tuesday. I will be on the warf
Yours truly
George N Barclay "
The following is a short history of the ‘Trout Creek Ranche’. The ranch was established by George Nevil Barclay (1867-1926). He was the second son of Colonel Hanbury Barclay (1836-1909). Although this branch of the Barclay family was related to the founders of the Barclay Bank, the family was more directly related to the Barclay Brewery. George Barclay was born in Hertfordshire England on January 2nd 1867 and educated at Prep school and Cheltenham College. His father sent him to Canada to take up cattle ranching. Barclay worked for Tom Ellis in 1887 and part of 1888. With the financial assistance of his father, he purchased District Lot 474 in Trout Creek and began his cattle ranch. In 1890, the Barclays purchased the Lloyd Jones brothers ranch (DL 473 and DL 472). In 1891, the Barclays also acquired the ranch owned by Conkle and McLennan. In total, the ranch consisted on 3320 acres. In 1897, George Barclay married Caroline Cornwall daughter of Clement Cornwall of Ashcroft Manor. Cornwall was a British Columbia Senator (18711881), Lieutenant Governor (1881-1887) and County Court Judge for Cariboo and Stipendiary Magistrate (1889-1906). George Barclay’s son Guy Barclay gave an explanation why the Barclays decided to sell out the Trout Creek Ranche. According to Guy Barclay, “ it appears that Caroline greatly missed her family and friends at Ashcroft. Her Uncle Henry (Cornwall) had died and his widow wanted to sell. Father finally agreed and decided to sellout and purchase a half interest in Ashcroft Estates from Mary Cornwall, Henry’s widow.”(8)
The C.P.R. and Shaughnessy took the same approach as the Thompson Valley Land Scheme. The availability of water was an essential component to the project and again Shaughnessy sought expert advice. Between 1901 and 1902 Shaughnessy had six separate water studies done on the Trout Creek scheme. As with Kamloops, George G. Anderson , in 1901, examined the Trout Creek proposal. Shaughnessy also received a comprehensive water study from civil engineer Frank Herbert Latimer. Latimer was hired to design the irrigation system at Coldstream, termed the Coldstream Internal System, in 1892-96. Fruit ranching already existed in the Trout Creek area. Besides Barclay’s four-acre orchard, other ‘fruit ranch’ owners included Gartrell, Dunsdon and the Garnett brothers. Cautiously, Shaughnessy hired agriculture expert R.L. Palmer (Department of Agriculture in Victoria) who had also provided advice to the Coldstream Ranch. In 1901, Palmer had published a report on the “question of the development of fruit and other markets of British Columbia and the Territories” (9) Shaughnessy also received advice from Marpole, Cambie and Senator Kirchhoffer.
On January 9th 1901, Robinson wrote to Shaughnessy regarding the Barclay proposition. He wrote,
We will make a big success out of that property. Mr. Griffin was on the ground and
I understand from him that he sees it as we do.” (10)
John. M. Robinson
Robinson had contacted George Henderson, the manager of the Bank of Montreal in Vernon, suggesting that he join the Trout Creek Enterprise. Henderson responded in a letter on March 21 1901 indicating that he would be pleased to join Robinson’s proposal. Henderson added that,
It is a good thing to have a good name, to have people point to you and say there is an honest man. ……I feel sure you will go through life carrying the proud title of straight man to the end.”
Just like Cecil Ward, J.M. Robinson also sent a box of fruit to Shaughnessy. On Sept 14th 1901, Robinson sent a box of peaches from the Lambly orchard “which adjoins our townsite.”(11). On October 28th 1901, on behalf of Shaughnessy, Robinson signed a “Memorandum of Agreement” to purchase the Barclay ranch. The lands in the agreement included, District Lots 439, 440, 454, 455, 472, 473, 474, 475, 476, 673, 674, 675, and preemption 240.
Robinson in Sept 1901 wrote to Shaughnessy regarding the Trout Creek proposal. He felt that they might also be able to acquire an additional 700 acres from the adjoining property, the Garnett brothers, “as they want to go out of the cattle business”. “I don’t think we will gather up 10,000 acres suitable for fruit purposes but we will probably get six or seven thousand anyway”. (12)
Robinson was anxious for Shaughnessy to proceed with the purchase of the Barclay ranch. On January 22nd 1902 Robinson wrote, “ The CPR cannot make a mistake in buying it on the terms proposed”. (13)
According to Shaughnessy, the Palmer and Latimer Reports on the Trout Creek Ranch were critical to his decision. From March 11th to March 15 1902 Latimer and Palmer examined the potential for an irrigation system. Following the favourable conclusions on the report, Robinson telegraphed both Shaughnessy and Kirchhoffer, anxious to close the deal. On March 23 1902, Kirchhoffer wrote to Shaughnessy to persuade him to proceed with the Trout Creek Ranch sale. He explained that he had done “very well’ with the Peachland property.
A Decision is Made
By the spring of 1902, Shaughnessy had received most of the reports and advice on the two agricultural schemes. On March 24th 1902, Shaughnessy wrote to Kirchhoffer to finalize the deal with Robinson. Shaughnessy wrote,
“ In light of these reports, I hardly think that I would be inclined
to take the thing up on behalf of the Company, but I am prepared
to take some stock, personally, in any Company that may be organized
and I think I could get two or three of my friends to take stock
to the extent of $5,000 or $6,000. (14)
On May 9 1902, Shaughnessy wrote to Cecil Ward declining his participation in the Thompson Valley Land Scheme. Shaughnessy was concerned about the structure of the company that Ward had proposed. He also felt that the cost estimates for the project were too low. Shaughnessy added:
“ For the purpose of encouraging irrigation in the Okanagan District, I have, personally, agreed to purchase a ranche and to provide the money necessary for irrigating it, with the view to selling the land off in small fruit farms. The amount involved is not large, only about 12,000 pounds, but the arrangement is one that might commend itself to you and to proposed investors in connection with the Kamloops works. The land was selected and the plan of irrigation prepared, by Mr. Robinson, who has some experience with another piece of property. He is to look after the construction of the ditches, the laying out of the fruit farms, the selling of the land, and all other work connected with the enterprise. All of the receipts from sales, rentals and other sources are to come to me until I have been recouped my expenditure, with interest at 5%, and, thereafter he is to participate in profits on a agreed percentage basis.” (15)
Shaughnessy had carefully followed the progress of the Coldstream Estate Company and realized that its success was largely due to the Company’s effective manager, W.C. Ricardo. Shaughnessy sought advice regarding the use of J.M. Robinson as a potential manager for the Trout Creek project. On April 18th 1902 Shaughnessy arranged a railway pass for Robinson to travel to Montreal to interview Robinson and discuss the project which Robinson now called ‘Summerland’. Shaughnessy did receive some advice from his staff regarding the use of Robinson as a potential manager for the project. Not all of the reports were favourable. In a letter to Richard Marpole on June 19th 1902, Gordon Corbould wrote that,
“I am afraid Mr. Robinson is too sanguine and from what I could learn, the people in Peachland wish they had never seen him……the general impression is that Summerland will be just as great a failure as Peachland.”
Shaughnessy received a copy of Corbould’s letter from Marpole. With some concern, Shaughnessy asked his friend Kirchhoffer to examine the Trout Creek site. Within the week Kirchhoffer traveled to Summerland to examine the project and reported back to Shaughnessy. Cambie, on Shaughnessy behalf, interviewed Robinson on June 20th 1902. Marpole, Cambie and Henderson examined Summerland on July 4th and 5th 1902. Marpole reported favourably about the project. He raised some concerns about Robinson as a manager. He wrote
“ Mr. Robinson is a boomster beyond doubt – but not to the detriment of the country so far as I am able to judge.” “ Regarding the Barclay estate – I was rather agreeably surprised at the prospects. The property is certainly well situated and apparently there is a plentiful water supply with a natural reservoir and easy means of distribution.”(16)
Following the reports from Marpole and Cambie, Shaughnessy wrote,
“I hardly expect to realize on the property to the extent, or within the time
mentioned by Robinson, but, if the investment appear to be a reasonably
safe one, and if we can give agriculture in that section of the country
a little push, I shall be quite satisfied. Apparently there is no ground
for apprehension on either score” (17)
In August 1902, Sir Thomas Shaughnessy and J.M. Robinson formed a land development company called the Summerland Syndicate. Shaughnessy was the president, G.A. Henderson was vice president, Robinson was secretary, and Senator Kirchhoffer was a director. According to the contract Robinson was to;
- Purchase the Barclay Ranch comprising of 3500 acres and adjacent government lands of approximately 500 acres and the water rights. The costs being $44,000.
- Construct and insure a hotel for $8,000.
- Survey the lands for a cost of $2,000.
- Construct an irrigation system at a cost of $5,000.
- “To do all things necessary to ensure the speedy and efficient accomplishment of the foregoing undertaking”.
- “To personally supervise and manage the same, without salary or remuneration, other than is hereinafter provided”.
In the agreement, Shaughnessy provided the sum of $60,000 as well as the agents that would be involved with the agreements of land and water rights sales. The agreement clearly indicated that no additional expenses would occur without Shaughnessy’s consent. Robinson was to keep “proper books of account” of the company and that Robinson was to send monthly reports to Shaughnessy of the activities of the Company. All profits of sales of land and any other revenues including those of the Summerland Hotel were to be sent to Shaughnessy on a monthly basis until the $60,000 was re-paid with interest at a rate of 5% per annum. Following this re-payment, future profits of the Company would be divided up with Robinson receiving four-tenths and Shaughnessy receiving six-tenths of profits.
Shortly after the formation of the Summerland Syndicate, Shaughnessy hired irrigation expert George G. Anderson to re-visit Summerland to inspect the proposed water system and take photographs of the area. (18)
Shaughnessy and the Summerland Development Company
Less than a year later, on May 27th 1903 the Summerland Development Company Limited was formed. The Company had a value of one hundred and fifty thousand dollars which were divided into fifteen hundred shares, each with a value of one hundred dollars. There were five directors of the Company. Sir Thomas Shaughnessy had a total of 900 shares,
J.M. Robinson had 300 shares, George Arthur Henderson had 150 shares and Canadian Pacific Railway executives, Thomas Kilpatrick (superintendent from Revelstoke) and H.J. Cambie (special assistant engineer) each had 75 shares.
In a Memorandum of agreement between Shaughnessy and J.M. Robinson, the structure of the Summerland Development Company was determined. Shaughnessy agreed to sell to the Summerland Development Company all rights to the approximately 4,000 acres Shaughnessy owned through the Summerland Syndicate. In the Memorandum Shaughnessy would receive “all the money resulting from the sale of the lands, buildings, produce and other property ...until such time (Shaughnessy) had been paid the said sum of seventy thousand dollars with interest.”
Following repayment of this money, Shaughnessy agreed to transfer 580 shares of the Company to Robinson. Shaughnessy was concerned about the management of the Company and a clause concerning the “due and efficient management” of the company by Robinson was included in the Memorandum
The Summerland Development Company was structured so that “every member shall have one vote for each share held by him in the capital stock of the Company”. With 900 of the total 1500 shares, Shaughnessy controlled the activities of the Summerland Development Company.
Shaughnessy did more than just provide the initial capital of 60,000 to develop Summerland. He promoted the fruit industry at the provincial and national level with regard to trade, transportation and the development of fruit canneries. (19, 20). He was particularly active regarding the problem of “dumping of low grade fruit” by the State of Washington. Because of his national contributions to the fruit industry, Shaughnessy was named the honourary president the ‘First Canadian Apple Show’ in 1910.
With the creation of this land development company, orchard lots were now for sale. Although the Canadian Pacific Railway Company, itself, did not become involved with the actual purchase and development of Summerland, many executives of the CPR, in an effort to support the project, purchased land from the Summerland Development Company. These executives included, C.P.R. founder, R. B. Angus, Sir Edmund Osler, Sir Herbert Holt, Sir Edward Clouston, Sir William Whyte. Charles Hosmer, Charles F. Smith and Horace and Henry Joseph.
As per the company agreement, Robinson provided the C.P.R. president with monthly reports of Summerland’s progress. On October 18th 1907, when C.P.R. president Shaughnessy visited Summerland on his, “annual cross-country inspection tour”, the Municipal Council declared the day a Civic Holiday. Shaughnessy was the primary financial supporter of the Summerland Agricultural Association and their annual ‘Apple Show’ which was first created in 1908 (this event later became the Summerland Fall Fair). Shaughnessy continued to have controlling interests in the company. In 1908-9 he had 1460 shares of the total 1500 shares of the Company .
C.P.R. President Shaughnessy’s
Annual Inspection Tour, 1908
On June 27 1910, Shaughnessy sold his 1460 shares and H.J. Cambie and Kilpatrick each sold their ten shares. This left J.M. Robinson with 1244 shares, George Arthur Henderson and the Lieutenant Governor of Alberta George Bulyea each with 150 shares. George Wolstencroft (accountant in Naramata), Isaac Fulton (accountant in Vancouver), William
J. Robinson, John Robinson and William L. Robinson each owned single shares in the Summerland Development Company.
In 1912, the economy and the fruit industry were in difficulty. The State of Washington had flooded the Canadian market with cheap fruit. In Summerland, this slow-down resulted in reduced sales of orchard land. Within two years, the Summerland Development Company was experiencing financial difficulties. Although the C.P.R. had transported over 2,000 train carloads of Okanagan fruit and vegetables in 1914, Shaughnessy was discouraged about the future of the fruit industry. (21) Nevertheless, in May 1914, Shaughnessy rescued the Summerland Development Company. Shaughnessy again provided financial assistance and bought the majority of the company’s shares.
Conclusion
Unlike previous descriptions of the founding of Summerland, the Canadian Pacific Railway and Shaughnessy specifically, had a central role in the creation of Summerland, its irrigation system and its initial development. When the newly formed community encountered financial problems Shaughnessy again provided financial support.
References
1. The Canadian Pacific Railway and the Development of Western Canada. J.A. Eagle. McGill-Queen’s Press 1989. p13
2. The Journal of Lady Aberdeen. The Okanagan Valley in the Nineties. Morriss Pub. Ltd 1986 p. 74
3. Lady Aberdeen ‘Canadian Journals 30 Oct 1894 PAC
4. An Early History of Coldstream and Lavington. Anne Pearson. Wayside Press 1986 p33
5. Ibid p36
6. Shaughnessy Letterbooks (SLB) 75, p.5, Ref 64484
7. SLB 63 Ref 42123
8. personal communication
9. SLB 74, Ref 65837
10. SLB 73, Ref 65837
11. SLB 75 p. 542 Ref 65002
12. SLB 75 Ref 65002
13. SLB 76 Ref 65837
14. SLB 80 Ref 65837
15. SLB 77 p. 757, Ref 67329
16. SLB 77 Ref 68042
17. SLB 78, p 300 Ref 68042
18. SLB 78 p 536 Ref 304
19. SLB 88 p 318 Ref 88743
20. SLB 77 p598 Ref 588
21. SLB 107 p 993 Ref 986
The author thanks Guy Barclay, Brigid Shaughnessy and both Jo-Anne Colby and Stephen Lyons of the Canadian Pacific Archives for their assistance.