From the Sault Ste. Marie Public Library archive:
Algoma Steel Corporation, the predecessor of Essar Steel has had many economic highs and lows since its incorporation in 1901.
However it was the Consolidated Lake Superior Company collapse of 1903 which led to the famous riots in the town of Sault Ste. Marie, forcing it into reorganization under new management.
In 1902, the Algoma Steel Corporation had undertaken significant new construction projects which had seriously depleted their finances.
The company had hoped that they would receive a constant flow of new orders due to the expansion of Canada’s railways at that time.
However, Algoma Steel had problems securing new orders and the plant had to close in 1902 with no orders planned for the following year.
By December 1902, the New York banking firm of Speyer and Company agreed to provide a loan of $3.5 million with the condition that they had the right to replace any or all of the Board of Directors.
In April 1903, Speyer requested that Francis H. Clergue tender his resignation from the Board of Directors because he continually failed to abide by the new financial restrictions imposed by Speyer.
Clergue continued to enjoy an extravagant lifestyle, as shown by the purchase of a new company yacht, the Siesta, in 1903 which only increased the company’s debt.
On September 17, 1903, with no money left the Consolidated Lake Superior Company shut down leaving their employees unpaid.
On the morning of September 27, 1903, enraged employees, including lumber and construction workers and local industrial workers gathered outside the General Office located on Huron Street.
When they realized that they were not being paid they began to throw bricks and stones smashing all of the windows and gunshots were exchanged.
One group of men managed to gain access to the building damaging offices and many of the company records.
The resulting riot caused Mayor W.H. Plummer to enact the Riot Act and he called out the local Militia.
Streetcar service was suspended, local bars were closed and the ferry was sent to the American side of the river. Fearing more rioters coming into town, 362 soldiers arrived from Toronto the following day, to reinforce the local militia, however by then the riot had subsided.
The soldiers did however have a 3-day stay at the International Hotel and patrolled the streets.
By the time the soldiers had returned to Toronto a member of the Financial Committee approached Traders Bank, the Imperial Bank and the Bank of Commerce for loans.
They managed to succeed and were able to pay the workers.
The riot however did mark the end of Francis H. Clergue’s empire locally.
After he was forced out, his company was reorganized and a new company, Lake Superior Corp. was founded in 1904.
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