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49-615: In 1966 it terminated coal operations. This led in 1967 to the creation of a crown corporation , the Cape Breton Development Corporation , or DEVCO, which took over operations. Industrial Cape Breton consisted of two distinctive geographic regions for industrial activity: the "north side" of Sydney Harbour, and the "south side". The north side was dominated in the 1800s by the General Mining Association (GMA), which had been formed in

98-649: A controlling interest in DOSCO in a bid to diversify its operations beyond the aircraft manufacturing and defence industries. In 1958, DOSCO subsidiary Cumberland Railway and Coal Company closed its mines in Springhill ; the mines being closed following the Springhill Mining Disaster . The associated railway service limped on until permission to abandon was granted in 1961, and the last train ran in 1962. The Cumberland Railway continued to exist as

147-616: A corporation, however, as the S&;L was made its subsidiary in 1961, doing business as the Sydney & Louisburg Division of the Cumberland Railway. This was done primarily to make the provincially chartered S&L eligible for federal railway subsidies. In 1962 A.V. Roe Canada was dissolved and its assets merged into the newly formed conglomerate Hawker Siddeley Canada , which sought to rid itself of money-losing operations. By

196-612: A fully privatized company. The first Crown corporation was the Board of Works, established in 1841 by the Province of Canada to construct shipping canals. The first major Canadian experience with directly state-owned enterprises came during the early growth of the railways . The first Canadian Crown corporation after confederation was the Canadian National Railway Company , created in 1922. During

245-546: A mandate (by royal charter) to govern a specific territory called a charter colony , and the head of this colony, called a proprietary governor , was both a business manager and the governing authority in the area. The first colonies on the island of Newfoundland were founded in this manner, between 1610 and 1728. Canada's most famous and influential chartered company was the Hudson's Bay Company (HBC), founded on May 2, 1670, by royal charter of King Charles II . The HBC became

294-596: A member of the DOMCO board in December 1909; he remained a member of the DISCO board until 1909. The year 1901 also saw further changes in the coal and steel industry on Cape Breton Island when the rival GMA, operator of coal mines on the "north side" of Sydney Harbour, as well as a newly inaugurated steel mill at that location, sold its properties to Nova Scotia Steel Company Ltd. (SCOTIA) of New Glasgow . In 1903, Ross and

343-519: A mixed variety of railway lines linking the various mines. These were consolidated and operated as a department of the company, and in 1895 were extended south to Louisbourg. The railroad lines were incorporated in 1910 as the Sydney and Louisburg Railway . By 1912, DOMCO operated 16 collieries, comprising 40% of Canada's coal production. The company effected numerous efficiencies and improvements. There were, however, costly mistakes, prominent among them

392-672: A province). Crown corporations represent a specific form of state-owned enterprise . Each corporation is ultimately accountable to (federal or provincial) Parliament through a relevant minister for the conduct of its affairs. They are established by an Act of Parliament and report to that body via the relevant minister in Cabinet , though they are "shielded from constant government intervention and legislative oversight" and thus "generally enjoy greater freedom from direct political control than government departments." Crown corporations are distinct from "departmental corporations" such as

441-559: A relevant minister for the conduct of its affairs. Although these corporations are owned by the Crown, they are operated with much greater managerial autonomy than government departments. While they report to Parliament via the relevant minister in Cabinet , they are "shielded from constant government intervention and legislative oversight" and thus "generally enjoy greater freedom from direct political control than government departments." Direct control over operations are only exerted over

490-550: A seat in the Nova Scotia House of Assembly when he was acclaimed as a candidate in Victoria County. As premier, Murray was a practitioner of brokerage politics. His government continued the public works projects of his predecessor, particularly in the area of railways by doubling the province's track mileage within a decade, as well as road and bridge construction. His government was instrumental in improving

539-545: A symbol of modern Quebec, helping to create the Quiet Revolution of the 1960s where French-speakers in Quebec rose to positions of influence in the industrial economy for the first time, and Quebec nationalism emerged as a political force. This model followed by SaskPower in 1944 and BC Hydro in 1961. Other areas provinces were active in included insurance ( Saskatchewan Government Insurance , 1945) In Alberta,

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588-869: Is established or operated by the King in Right of Ontario or the Government of Ontario , or under the authority of the Legislature or the Lieutenant Governor -in-Council. Finances Quebec published a list 60 Quebec Crown corporations ( French : sociétés d'État ) in June 2017. The following entities were among those listed: Several private Canadian companies were once Crown corporations, while others have gone defunct. George Henry Murray George Henry Murray (June 7, 1861 – January 6, 1929)

637-813: The Canada Revenue Agency . Crown corporations have a long-standing presence in the country and have been instrumental in its formation. They can provide services required by the public that otherwise would not be economically viable as a private enterprise or that do not fit exactly within the scope of any ministry. They are involved in everything from the distribution, use, and price of certain goods and services to energy development, resource extraction, public transportation, cultural promotion, and property management . As of 2022 , there were 47 federal Crown corporations in Canada. Provinces and territories operate their own Crown corporations independently of

686-626: The 1820s after the Colony of Cape Breton Island was amalgamated back into Nova Scotia . Several independent collieries opened on the south side and by the 1870s, Canada's federal government had implemented its National Policy of economic protectionist measures. It was during this decade that the leading operators on the "south side" foresaw the benefits of amalgamating and modernizing to replace lost American coal markets in eastern Canada with Cape Breton coal. In 1889, Henry Melville Whitney and Frederick Stark Pearson of Boston, Massachusetts , formed

735-804: The 1890s, the Whitney syndicate sought to create a use for "slack coal" resulting from mixing and screening processes at DOMCO's coal wash plants. Whitney expanded operations at Sydney with the organization in March 1899 of the Dominion Iron & Steel Company Ltd. (DISCO), which had funding in both Canada and the United States. Whitney was joined in the new enterprise by his long-time business friends F.S. Pearson, B.F. Pearson, W.C. Whitney, C.T. Barney, H.F. Dimock, A.H. Paget and J.S. McLennan. The promise of federal bounties, together with concessions from

784-414: The 1920s as North America's industrial and consumer practices changed. BESCO management tried to desperately save the company, however bitter strikes by workers, culminating in widespread social and civil unrest in 1925, saw BESCO slip further into debt. BESCO subsidiary DISCO (the steel mill) fell into receivership in the spring of 1926 after short-term financing was refused; this would eventually lead to

833-592: The Canadian investors in DISCO sold control to James H. Plummer of Toronto, Ontario . By 1910, Plummer gained control of DOMCO from Ross and made both DOMCO and DISCO subsidiary companies of a new entity called Dominion Steel Corporation , which also counted mainland Nova Scotia's Cumberland Railway and Coal Company as a subsidiary. Presidents General managers Further consolidation of industrial activity on Cape Breton Island saw SCOTIA taken over in 1917 by American investors as its steel mill had closed in 1914, and

882-500: The East to create Canadian National Railways (CNR) in 1918 as a transcontinental system . The CNR was unique in that it was a conglomerate , and besides passenger and freight rail, it had inherited major business interests in shipping, hotels, and telegraphy and was able create new lines of business in broadcasting and air travel. Many of the components of this business empire were later spun off into new Crown corporations including some

931-546: The Factories Act in 1908 and the act for workman's compensation for injuries on the job in 1915. In the area of public health, that appointed public health officers, established county health clinics, and founded a research hospital for tuberculosis patients. After almost three decades in power, Murray retired from politics in January 1923. He twice declined the offer of knighthood and twice refused earlier offers to join

980-852: The Liberal provincial administration of Premier George Henry Murray , enabled DISCO to begin work in June 1899 on the largest integrated steel mill in the British Empire . Located on the south side of Sydney Harbour, which Whitney said offered more advantages to steel making than anywhere else in the world, the mill was completed in 1901. DISCO operated coke ovens which cooked this slack coal to create coke to fuel its oxygen blast furnaces that were used to smelt iron ore mined by DISCO at its mine on Bell Island in Newfoundland and shipped to Sydney. Competitors in Britain, France, Germany and

1029-411: The United States were initially concerned. However, continuing problems of management and cost control led to Whitney's early withdrawal from the project. Later in 1901, Whitney and his associates sold majority control of DOMCO to engineer turned businessman James Ross of Montreal, and their minority share of DISCO to Ross and other Canadian interests. Whitney resigned as president of DISCO in 1902 and as

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1078-600: The Whitney coal syndicate with Benjamin Franklin Pearson of the People's Heat and Light Company of Halifax, Nova Scotia . The group purchased one mine and obtained options on others south of Sydney on eastern Cape Breton Island . Premier William Stevens Fielding and the Liberal provincial administration favored Whitney's entry into the coal business because his steamships and street-railway electric generators consumed large quantities of coal. The Whitney syndicate

1127-614: The actions of these organizations. The Crown is not liable for Crown corporations with non-agent status, except for actions of that corporation carried out on instruction from the government, though there may be "moral obligations" on the part of the Crown in other circumstances. Crown corporations are generally formed to fill a need that the federal or provincial government deems in the national interest or not profitable for private industry. Some Crown corporations are expected to be profitable organizations, while others are non-commercial and rely entirely on public funds to operate. Prior to

1176-530: The break-up of the conglomerate. DISCO was liquidated in 1927 but the Supreme Court of Nova Scotia refused to dissolve BESCO. Wolvin resigned as president and sold his holdings after his reorganization plan was rejected by other shareholders and he was succeeded by C.B. McNaught. In 1928 a new holding company called Dominion Steel and Coal Corporation (also DOSCO ) was formed as a holding company by McNaught and various BESCO investors. In May 1930 BESCO

1225-590: The company focused on coal mining in Sydney Mines and manufactured steel products at its extensive facilities in Trenton , Pictou County . The fall-out from World War I saw a syndicate of British investors led by Montreal, Quebec industrialist Roy M. Wolvin negotiate a takeover of Dominion Steel Corporation from Plummer in 1919. BESCO proposed a $ 500 million merger of DOMCO and DISCO, along with various British steel and shipbuilding interests. In 1921, SCOTIA

1274-599: The construction of the Intercolonial Railway between them was one of the terms of the new constitution. The first section of this entirely government-owned railway was completed in 1872. Western Canada 's early railways were all run by privately owned companies backed by government subsidies and loans. By the early twentieth century, however, many of these had become bankrupt . The federal government nationalised several failing Western railways and combined them with its existing Intercolonial and other line in

1323-401: The corporation's budget and the appointment of its senior leadership through Orders-in-Council . Further, in the federal sphere, certain Crown corporations can be an agent or non-agent of the Crown. One with agent status is entitled to the same constitutional prerogatives, privileges, and immunities held by the Crown and can bind the Crown by its acts. The Crown is thus entirely responsible for

1372-496: The earlier part of the century, many British North American colonies that now comprise the Canadian federation had Crown corporations, often in the form of railways, such as the Nova Scotia Railway , since there was limited private capital available for such endeavours. When three British colonies joined to create the Canadian federation in 1867, these railways were transferred to the new central government. As well,

1421-547: The early 1960s DOSCO was in a continuous slide and sought to halt its decline by shutting various poorly performing mines in the Pictou and Sydney coal fields; from 9 in 1960 to 5 in 1965. Despite shedding other money-losing subsidiaries it was still losing money and under pressure from Hawker Siddeley Canada to reduce red ink. In 1965, DOSCO announced that its remaining mines had only 15 years of production left and it would not undertake any further capital expenditures and would exit

1470-591: The excesses of the previous open market which had led to calls for prohibition in the first place. Virtually all the provinces used this system at one point. The largest of these government liquor businesses, the Liquor Control Board of Ontario (founded 1927), was by 2008 one of the world's largest alcohol retailers. Resource and utility crown corporations also emerged at this time, notably Ontario Hydro and Alberta Government Telephones in 1906, and SaskTel in 1908. Provincial governments also re-entered

1519-477: The federal and provincial level before he finally won a seat. Despite his electoral failures he was highly regarded within the Nova Scotia Liberal Party and was nominated by Nova Scotia Premier William Stevens Fielding as his successor after Fielding left provincial politics in 1896 to join the federal cabinet of Prime Minister Sir Wilfrid Laurier . Murray was sworn in as premier and took

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1568-418: The federal government. In Canada, Crown corporations within either the federal or provincial level are owned by the Crown as the institution's sole legal shareholder . This follows the legal premise that the monarch , as the personification of Canada , owns all state property. Established by an Act of Parliament , each corporation is ultimately accountable to (federal or provincial) Parliament through

1617-414: The federal level. Not only the federal government was involved, but also the provinces, who were in engaged in an era of " province building " (expanding the reach and importance of the provincial governments) around this time. The prototypical example is Hydro-Québec , founded in 1944 and now Canada's largest electricity generator and the world's largest producer of hydro-electricity. It is widely seen as

1666-551: The formation of Crown corporations as presently understood, much of what later became Canada was settled and governed by a similar type of entity called a chartered company . These companies were established by a royal charter by the Scottish , English , or French crown, but were owned by private investors. They fulfilled the dual roles of promoting government policy abroad and making a return for shareholders. Certain companies were mainly trading businesses, but some were given

1715-593: The industry within months. The vast public outcry to DOSCO's announcement in Industrial Cape Breton saw the minority government of Prime Minister Lester Pearson come under incredible political pressure to resolve the crisis. Pearson announced the formation of the Donald Commission of inquiry into the industry, which would eventually lead to the formation of the federal Crown corporation Cape Breton Development Corporation (or DEVCO) and

1764-482: The mid-century. The federal Post Office Department became a Crown corporation as Canada Post Corporation in 1981, and Canada's export credit agency , Export Development Canada , was created in 1985. Perhaps the most controversial was Petro-Canada , Canada's short-lived attempt to create a national oil Crown corporation , founded in 1975. The heyday of Crown corporations ended in the late 1980s, and there has been much privatisation since that time, particularly at

1813-500: The most important businesses in the mid-20th-century economy of Canada, such Air Canada , the Canadian Broadcasting Corporation (CBC), Via Rail , and Marine Atlantic . Provincial Crown corporations also re-emerged in the early 20th century, most notably in the selling of alcohol. Government monopoly liquor stores were seen as a compromise between the recently ended era of Prohibition in Canada and

1862-757: The province's postsecondary education system, particularly in agricultural and vocational education by the founding of the Nova Scotia Agricultural College at Bible Hill as well as the Nova Scotia Technical College in Halifax . In 1906, the Liberals instituted prohibition . The Murray government also introduced workers' compensation in 1916 and instituted women's suffrage in 1918. The Murray government also introduced progressive labour legislation such as

1911-696: The province. However, the mergers that resulted in the formation of BESCO also amalgamated an inordinate amount of debt. During its 8-year history, BESCO was in a constant financial crisis and by 1925 required an annual operating profit of $ 8 million ($ 100 million when adjusted for inflation in 2010) to meet these financial commitments. As a result, BESCO's investors pressured management to force many difficult working conditions in order to achieve higher production from its workforce. This resulted in unprecedented labour unrest and militancy which would forever transform Industrial Cape Breton (see Davis Day ). Profits fell and coal and steel markets were declining throughout

1960-417: The provincial Crown corporation Sydney Steel Corporation (SYSCO) which expropriated DOSCO's mines and steel mill in 1968. Crown corporations of Canada Crown corporations ( French : Société de la Couronne ) are government organizations in Canada with a mixture of commercial and public-policy objectives. They are directly and wholly owned by the Crown (i.e. the government of Canada or

2009-494: The railway business as in Northern Alberta Railways in 1925 and what later became BC Rail in 1918. A notable anomaly of this era is Canada's only provincially owned "bank" (though not called that for legal reasons) Alberta Treasury Branches , created in 1937. The Bank of Canada , originally privately owned, became a Crown corporation in 1938. New crown Corporations were also created throughout much of

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2058-482: The tendency to become locked into low-price contracts (such as to Whitney's companies), thus missing a large market at higher prices. By 1901 some 90 percent of its output was committed to such low-price contracts. The company made a large public offering of stock, which tumbled in price when Whitney failed to get the American import duty on coal removed or at least reduced. Flushed with the success of creating DOMCO in

2107-549: The term public agency is used to describe "boards, commissions, tribunals or other organizations established by government, but not part of a government department." Crown corporations in Manitoba are supported by Manitoba Crown Services . Crown corporations in Ontario are referred to as Crown agencies . A Crown agency includes any board, commission, railway, public utility, university, factory, company or agency that

2156-575: The world's largest land owner, at one point overseeing 7,770,000 km (3,000,000 sq mi), territories that today incorporate the provinces of Manitoba , Saskatchewan and Alberta , as well as Nunavut , the Northwest Territories , and Yukon . The HBC were often the point of first contact between the colonial government and First Nations . By the late 19th century, however, the HBC lost its monopoly over Rupert's Land and became

2205-622: Was a Nova Scotia politician who served as the eighth premier of Nova Scotia for 26 years and 188 days, the longest unbroken tenure for a head of government in Canadian history . Murray was born in Grand Narrows, Nova Scotia . He was a member of the North British Society . Despite his later political longevity, Murray's early political career was marked by inability to get elected. He lost five consecutive elections at

2254-582: Was dissolved and the new company took over its industrial properties. DOSCO implemented management processes that put a halt to the financial troubles through the 1930s. The company's fortunes were boosted by World War II with its control of manufacturing and their inputs and at one point DOSCO was the largest private employer in the nation. Following the war, DOSCO's industrial prominence continued to slide as alternative fuels and sources for steel took force, combining with declines in government subsidization of both industries. In 1957, A.V. Roe Canada acquired

2303-414: Was incorporated with Whitney as president, B.F. Whitney as secretary and F.S. Pearson as chief engineer. Early investors in the enterprise included Whitney's younger brother, William Collins Whitney ; his brothers-in-law, Henry F. Dimock and Charles T. Barney ; and Almeric H. Paget , who later married William's daughter Pauline . The new company included the following properties: DOMCO also inherited

2352-870: Was merged with the conglomerate to form the British Empire Steel Corporation (BESCO). The scope and scale of BESCO was truly mind-boggling. In addition to its coal mines and steel mills operating as a complete monopoly across the entire Sydney Coal Field, BESCO also operated coal mines, steel mills and foundries in the Pictou Coal Field in Trenton, New Glasgow, Stellarton and Westville, as well as North America's deepest coal mines in Springhill, Nova Scotia , and iron mines in Bell Island, Newfoundland. It also operated several industrial railways and various shipping ports throughout

2401-425: Was offered an unprecedented 99-year lease on a fixed royalty; the group exercised its options, acquiring most of the existing bituminous coal mines in eastern Cape Breton and co-opting such local figures as John Stewart McLennan and David MacKeen . This process took some months, and Whitney was not ready to consolidate operations at Sydney until early 1893. On February 1, 1893, Dominion Coal Company Ltd. (DOMCO)

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