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Alberta

The Canadian Northern Railway’s legacy at Big Valley, Alberta.

Published

4 years ago

13 minute read

By Shawn I. Smith, Canadian Northern Society

“The newly constructed train station circa 1913, Big Valley. Photo- Canadian Northern Society Archives

 

It’s a Saturday afternoon in June in the quiet Village of Big Valley. Visitors admire the splendid heritage railway depot and gardens at the end of main street. Two blocks south is a historic grain elevator – a classic Canadian symbol standing tall above the prairie landscape. To the east across the tracks are large stark concrete walls, visibly reminiscent of Stonehenge. “What are those curious walls?” is often asked. Then the sound of a locomotive whistle breaks the silence, creating a scene out of the 1950’s when a vintage passenger train pulls into town, and the train crew scurries about on the platform unloading its cheerful patrons.

“Visitors explore the Big Valley Roundhouse Ruins” Photo- Canadian Northern Society Archives

While not obvious to the guests who have enjoyed the 21-mile excursion train ride from Stettler aboard the Alberta Prairie Railway, the scene that unfolds on summer days in Big Valley is part of a legacy left by two dynamic railroaders who over a century earlier had an ambitious and grand vision for Western Canada. Today, both active and abandoned rail lines in central Alberta, related historic structures and sites, and indeed the communities that owe their existence to the Canadian Northern Railway (CNoR) share this common heritage.

Since the completion of the Canadian Pacific Railway in 1885, railways have been inextricably linked with the development of western Canada. After Confederation the new Dominion Government quickly recognized that without railways real settlement would not take place in the sparsely populated North West.

Energy, Enterprise, and Ability

“The Canadian Northern Railway lines map, 1916” Map- Atlas of Alberta Railways

The CNoR (Canadian Northern Railway) was a product of two Canadian-born railroaders with CPR roots. William Mackenzie and Donald Mann met during the 1880’s while the senior road was under construction in the Selkirk Mountains. Their “Energy, Enterprise, and Ability” – which would become the railway’s motto would lead to a partnership in contracting, steamship lines, and a 9,500-mile transcontinental railway empire that served seven provinces and included the Duluth Winnipeg and Pacific Railway in the U.S. The two were knighted for their achievements in 1911.
Branch lines were the key to the CNoR strategy.The Vegreville to Calgary branch – chartered in February 1909 by CNoR subsidiary Alberta Midland Railway – was the company’s key north-south spine through Alberta. The portion between Vegreville and Drumheller was opened for service in 1911. While it had the appearance of a typical prairie branch line, its primary purpose was to carry steam and domestic heating coal from mines at Brazeau and Drumheller to growing prairie markets.
The fact that the line traversed a region of great agricultural potential for both grain and cattle farming was an added benefit. In typical fashion, grain elevators were located every five to ten miles – the distance being established around the practical ability for a livestock team to haul a load of grain and return in one day’s time from the growing number of homesteads clustered around each delivery point.
The Battle River Subdivision along with further line completions in 1914 to Calgary and Strathcona respectively provided the CNoR with an effective intercity freight route, albeit longer than those of its competitors.
The Brazeau Branch, extending 176 miles west from the junction at Warden to the Nordegg Collieries was extremely important to the CNoR which depended largely on this supply of steam coal for terminals across the West. The subsequent extension of the Goose Lake line at Munson became an important link from Calgary to Saskatoon. All of these CNoR lines were financed using provincial bond guarantees.

“Bustling Big Valley railroad yard, roundhouse, 1920’s” Photo- Canadian Northern Society Archives

By May of 1912 mixed trains crewed by Big Valley men were running north to Vegreville and south to Drumheller. Another run to Rocky Mountain House was added in June. A Second Class depot was erected that year and a five-stall roundhouse and turntable were complete by April of 1913.
By late 1913 a Railway Post Office Car service had been established on the line, and Big Valley was home to 14 locomotives and an equal amount of engine service and train crews. Assistant Superintendent Thomas Rourke oversaw terminal operations that included a train dispatching office.
By September 1917 fourteen mines were operating in the Drumheller Valley producing 250 carloads of coal every 24 hours. Drumheller was without question the “Powerhouse of the West.” Big Valley’s railroaders were kept busy 24 hours a day operating the trains that pulled the coal out of the valley.

“Train time at Big Valley. A Southbound train at Big Valley, 1920’s.” Photo- Canadian Northern Society Archives

After being selected as the CNoR terminal, Big Valley boomed. By 1919, its population had increased to over 1025, with some 325 souls working for the CNoR. At its peak, the company’s payroll included 26 train and engine crews, a shop staff of 40, and a Bridge and Building crew averaging 45 employees, managed by Frank Dewar. There were 8 sectionmen, and at the station an Agent, operators round the clock, yard clerks, and the train dispatcher. Four to five carman conducted car repairs and inspections.
Coal from Brazeau was piled in a huge stockpile almost a block long on the east side of the yard. A gravel pit operation north of town at Caprona was established to provide aggregate for line ballasting on all of the CNoR area lines. Steam shovels kept this operation steady, mining volumes often equating to 100 carloads per day.
Big Valley’s early railroaders were a colourful lot. Many came and went, and with the Big Valley collieries in production by 1914 shipping coal as far east as Ontario – night life in town could be wild. Assistant Superintendent Rourke, a former baseball player in the Detroit Tigers minor league system, was responsible for putting together the “Big Valley Bugs” – made up almost entirely of railroaders – who in 1918 put together a resounding victory over the high-flying Edmonton Red Sox.

The National

During the First World War, financial problems caught up with Mackenzie and Mann and their rapidly expanding enterprise. Despite profitable western lines such as the Vegreville and Brazeau branches, lack of traffic on the transcontinental lines, burdensome debt, and the negative impacts of the War would result in the company being “nationalized” by the Dominion Government in 1918. The rival Grand Trunk Pacific (GTP) Railway would fare even worse, having been placed into receivership in 1919. These events led to the creation of today’s Canadian National (CN).
The new CN was confronted with the task of rationalizing the CNoR and GTP lines throughout western Canada. Consolidation was affected by the elimination of duplicate facilities and improving services by combining portions of the former competing lines. Construction of track connections joining the Brazeau branch with he former GTP Tofield to Calgary line at Alix were opened for service in 1922.
Connections were also made between the Battle River Subdivision and the former GTP mainline at Ryley. Geographically the GTP divisional point at Mirror was seen as central to the operations of the Brazeau branch vs. Big Valley. Coal that had originally moved over the Brazeau line to Warden then northward was now diverted over the new connection at Alix via Mirror which became the new home terminal for crews running west.
The new routing via Alix saved a distance of over 50 miles between Brazeau and Saskatoon. The former GTP south of Camrose also became the CN’s north-south main line through Alberta.

“The end of daily passenger train service between Edmonton – Drumheller. VIA Rail’s Dayliner at Big Valley, 1981” Photo-Charles Bohi

This consolidation led to the significant decline of Big Valley as a railway town. While the company kept a small number of train crews assigned to both freight and passenger service, by 1925 the exodus to Mirror, Edmonton, Drumheller, and Hanna began. It was reported that over 100 railroaders’ homes were moved out of the village, some of which continue to exist in Mirror today. In what was known as the “Battle of Big Valley” – the unions fought the company’s decision hard but were left with little compensation for their relocation expenses after the issue went to arbitration in the late-1920’s with the decision going with the company. By the onset of the depression, Big Valley’s population had dropped by some 500 souls to 445.
It is without question that the old Canadian Northern Railway’s reason for existence in central Alberta has changed dramatically since its arrival in 1910. Coal is no longer used to heat our homes – and in fact its use is considered sinful by some!
Packages ride on trucks, and people drive their own cars and trucks instead of riding mixed trains and Nos. 25 and 26 to get to Calgary or Edmonton.
While huge volumes of grain still move on trains – these are now loaded in modern high capacity elevators capable of loading 100 cars or more in 12 hours or less. The original steel rails that remain in service between Stettler and Big Valley are therefore of historic testament to Mackenzie and Mann and their great accomplishment. In fact, this section of track is the sole operating survivor of many similar “60-pound” branch lines that have now been re-laid or abandoned across the prairies. And almost incredibly one can still experience a passenger train ride over these vintage rails, pulling into Big Valley just as travellers did one hundred years ago.

Canadian Northern Society
www.canadiannorthern.ca

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Alberta

Alberta takes big step towards shorter wait times and higher quality health care

Published on April 9, 2025

By

From the Fraser Institute

By Nadeem Esmail

On Monday, the Smith government announced that beginning next year it will change the way it funds surgeries in Alberta. This is a big step towards unlocking the ability of Alberta’s health-care system to provide more, better and faster services for the same or possibly fewer dollars.

To understand the significance of this change, you must understand the consequences of the current (and outdated) approach.

Currently, the Alberta government pays a lump sum of money to hospitals each year. Consequently, hospitals perceive patients as a drain on their budgets. From the hospital’s perspective, there’s little financial incentive to serve more patients, operate more efficiently and provide superior quality services.

Consider what would happen if your local grocery store received a giant bag of money each year to feed people. The number of items would quickly decline to whatever was most convenient for the store to provide. (Have a favourite cereal? Too bad.) Store hours would become less convenient for customers, alongside a general decline in overall service. This type of grocery store, like an Alberta hospital, is actually financially better off (that is, it saves money) if you go elsewhere.

The Smith government plans to flip this entire system on its head, to the benefit of patients and taxpayers. Instead of handing out bags of money each year to providers, the new system—known as “activity-based funding”—will pay health-care providers for each patient they treat, based on the patient’s particular condition and important factors that may add complexity or cost to their care.

This turns patients from a drain on budgets into a source of additional revenue. The result, as has been demonstrated in other universal health-care systems worldwide, is more services delivered using existing health-care infrastructure, lower wait times, improved quality of care, improved access to medical technologies, and less waste.

In other words, Albertans will receive far better value from their health-care system, which is currently among the most expensive in the world. And relief can’t come soon enough—for example, last year in Alberta the median wait time for orthopedic surgeries including hip and knee replacements was 66.8 weeks.

The naysayers argue this approach will undermine the province’s universal system and hurt patients. But by allowing a spectrum of providers to compete for the delivery of quality care, Alberta will follow the lead of other more successful universal health-care systems in countries such as Australia, Germany, the Netherlands and Switzerland and create greater accountability for hospitals and other health-care providers. Taxpayers will get a much better picture of what they’re paying for and how much they pay.

Again, Alberta is not exploring an untested policy. Almost every other developed country with universal health care uses some form of “activity-based funding” for hospital and surgical care. And remember, we already spend more on health care than our counterparts in nearly all of these countries yet endure longer wait times and poorer access to services generally, in part because of how we pay for surgical care.

While the devil is always in the details, and while it’s still possible for the Alberta government to get this wrong, Monday’s announcement is a big step in the right direction. A funding model that puts patients first will get Albertans more of the high-quality health care they already pay for in a timelier fashion. And provide to other provinces an example of bold health-care reform.

Nadeem Esmail

Senior Fellow, Fraser Institute
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Alberta

Alberta’s embrace of activity-based funding is great news for patients

Published on April 9, 2025

By

From the Montreal Economic Institute

Alberta’s move to fund acute care services through activity-based funding follows best practices internationally, points out an MEI researcher following an announcement made by Premier Danielle Smith earlier today.

“For too long, the way hospitals were funded in Alberta incentivized treating fewer patients, contributing to our long wait times,” explains Krystle Wittevrongel, director of research at the MEI. “International experience has shown that, with the proper funding models in place, health systems become more efficient to the benefit of patients.”

Currently, Alberta’s hospitals are financed under a system called “global budgeting.” This involves allocating a pre-set amount of funding to pay for a specific number of services based on previous years’ budgets.

Under the government’s newly proposed funding system, hospitals receive a fixed payment for each treatment delivered.

An Economic Note published by the MEI last year showed that Quebec’s gradual adoption of activity-based funding led to higher productivity and lower costs in the province’s health system.

Notably, the province observed that the per-procedure cost of MRIs fell by four per cent as the number of procedures performed increased by 22 per cent.

In the radiology and oncology sector, it observed productivity increases of 26 per cent while procedure costs decreased by seven per cent.

“Being able to perform more surgeries, at lower costs, and within shorter timelines is exactly what Alberta’s patients need, and Premier Smith understands that,” continued Mrs. Wittevrongel. “Today’s announcement is a good first step, and we look forward to seeing a successful roll-out once appropriate funding levels per procedure are set.”

The governments expects to roll-out this new funding model for select procedures starting in 2026.

* * *

The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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