The Snuneymuxw People resided on their territory on Vancouver Island “since time immemorial,” writes the First Nation. The territory, “encompasses one of the most magnificent and resource rich areas at the heart of the Salish Sea.”
In 1849, an elderly Snuneymuxw man visited the Hudson Bay Company’s Fort Victoria where he observed the blacksmith at work. The blacksmith told Che-wich-i-kan that the coal came from England. Che-wich-i-kan was astonished, as it was plentiful where he lived. In 1850, he paddled a canoe loaded with coal from his home to the distant fort. The HBC granted him a title which he embraced. (This account is from the writings of V.I. pioneer, George Robertson; crunchers.bc.ca)
James Douglas, then Chief Factor of the fort, and soon to be Governor of V.I., sent his Clerk to investigate the site that Che-wich-i-kan had shared. Joseph McKay found three outcroppings of coal. They were of superior grade and quantity to that of the company’s existing mine on the northern coast of the island.
In 1852, Douglas ordered a bastion and settlement constructed near the promising deposit. It was named Colvile Town for the Governor of the HBC. The Bastion stands to this day. The town later became known as Nanaimo, derived from the Snuneymuxw name, Sne-ny-mo.
Douglas relocated the company’s coal mining operation to the new town. The miners had been recruited from Scotland in 1849. Two years later, Robert Dunsmuir, destined to become a coal baron, had arrived with a second group of Scottish miners.
The HBC quickly built bunkhouses, log cabins and wharfs to transfer the coal to ships. In 1854, timber cottages were added, but development occurred rather randomly in Colvile Town. In 1862, the Vancouver Coal Mining and Land Company bought the mine, land and buildings from the HBC. The VCMLC, uncommonly, hired a British architect to create a plan for the growing town.
The architect created a fan-shaped layout. Marie Leduc in Nanaimo’s Historical Development wrote, “the streets follow the natural downward slope and bowl formation of the land.” The streets converge on the business district and the harbour. In contrast to previous years, growth became planned and orderly. In 1874, Nanaimo was incorporated as the sixth largest municipality in B.C.
Robert Dunsmuir worked for the HBC and VCMLC as a mines’ supervisor. He secretly prospected for coal, and found the rich Wellington Seam only five miles from Nanaimo. He formed Dunsmuir, Diggle & Company with nine other shareholders – his two sons and seven British naval officers (one of whom was Wadam Diggle). The mine was in full operation by the end of 1874.
Four years later Dunsmuir overtook the production of the VCMLC, and soon purchased another mine on the Wellington Seam. He was just getting started! He sunk two more shafts in 1882. Eventually five mines operated on the seam, and by fall of 1883 he had purchased all non-family shares in the company. Dunsmuir, by this time, dominated the coal mining industry on V.I.
He was phenomenally wealthy. In addition to the operating mines, Dunsmuir owned coal lands in the Comax area, a fleet of colliers (coal ships), extensive real estate holdings, an iron foundry and more. His next project was to build the Esquimalt and Nanaimo Railway, for which he received government funding, expansive land grants – one-fifth of the land on VI – and mineral rights.
In the ensuing years, and well into the twentieth century, the coal industry and Nanaimo prospered. Timber frame commercial buildings on Commercial and Church streets were gradually replaced by more elaborate structures, often constructed of brick, some impressively. The Bank of Commerce was particularly notable with its four large classical columns, as was the Courthouse.
Other industries including timber and lumber, fishing and transport developed alongside the coal industry. Nanaimo became known as the hub city, in recognition of its role as a supply and service center for the communities of the mid-island.
Despite all the progress, Dunsmuir’s record at the mines was not entirely positive. He resisted safety upgrades directed by inspectors, resulting in accident and tragedy. And his response to labour unrest was oppressive. He locked out his miners for four months in 1876, and only allowed them back at sharply reduced wages. “Robert Dunsmuir gained a reputation as the province’s most ruthless, avaricious employer,” his Bio author, Danielle T Gallacher, wrote.
As offensive as Dunsmuir’s actions at times were, his achievements were consequential. He was a coal baron, and he built an extensive business empire. His mining enterprises transformed Nanaimo from a town to a city, and contributed to the development of British Columbia.
A column by Bruce Uzelman
Bruce Uzelman, based in Kelowna, holds interests in British Columbia history as wells as current political and economic issues.
Bruce had a career in small business, primarily restaurant and retail. He holds a Bachelor of Arts, Advanced from the University of Saskatchewan, with Majors in Political Science and Economics.
Contact: urban.general@outlook.com
