Steel at the Sault: Francis H. Clergue, Sir James Dunn, and the Algoma Steel Corporation 1902-1956

John Kendle is a history professor at St. John’s College, University
of Manitoba.

Duncan McDowall, a Senior Research Associate with the Conference Board of Canada, has written a first-rate study of the Algoma Steel Corporation. He displays a remarkable knowledge of the intricate world of early twentieth century business and investment practices. This, plus a sound grasp of the restraints and opportunities provided by municipal, provincial, and federal government policies, enables him to strike a clear narrative line that steers the reader through many tortuous business dealings and ventures. Algoma Steel suffered for much of its first forty years due to its location, lack of readily available ore, the federal tariff structure, and American competition. Its survival and eventual success were due to two men, and McDowall traces the influence of F.H. Clergue, the flamboyant American promoter who founded Algoma Steel, and Sir James Dunn, the shrewd, tough-minded speculator who rescued the company from ill-fortune in the 1930s and reshaped it by the fifties into one of Canada’s leading steel companies.

Clergue had energy, initiative, and vision but really lacked good business sense. Dunn was calculating and manipulative, a man who had early made his fortune when business practices were lax and the legal boundaries blurred. The most fascinating chapter in the book is the one detailing Dunn’s early career to 1930. It is one of the best insights we have into the Canadian and transatlantic business world of the early 1900s. Dr. McDowall’s study also underlines the degree to which the company’s fortunes were both determined by and dependent on the state. Once again we are reminded of the symbiotic relationship between business and government in Canada.

This is an important book and a major contribution to Canadian business history. Well-written and assiduously researched, it will be welcomed alike by researchers, teachers, and students.