Once work began, it involved eleven primary contractors and hundreds of various employees working simultaneously on the different aspects of the project, such as erecting walls, excavating rock and earth in the power canal, installing piles of timber lining in the earth section, excavating in the forebay, and constructing the embankment lining, in addition, the powerhouse substructure was begun and erection of a coffer dam around the compensating works site was in progress in the river. At the same time, work began on the substructure of the headgates.

    The contractors hired were to bring their own equipment with them. Many of the contractors did not bring enough equipment or underestimated the ability of their equipment to function under this situation and more delays occurred. Rain caused bank erosion several times throughout the project. A rain storm in 1899 filled the rock cut area to a depth of 16 feet, submerging two steam shovels and delaying work for ten days.

    Electrical equipment In the Union Carbide portion of the powerhouse was selected in 1898, as Westinghouse had assumed that portion of the contract. Things were not as clear on the electric company side of the plant construction. Decisions were still being contemplated about how much horsepower and how much direct current and alternating current should be provided to the city for street cars, lighting, and other uses. It was anticipated at this time that power would be transmitted some distance from the plant and eventually even to the lower peninsula. Much equipment was shifting to alternating current at this time as it was safer and the bulk of the installation was designed to generate alternating current.

    In February 1902, the first set of electrical generating equipment for the utility company was put into place with more being added the following year. At the same time switchboard equipment which could be used to control power generation was being contemplated and redesigned. Again the scope of the switchboard operation would be unparalleled in the history of hydroelectric generation. New systems had to be originated to maintain consistent and uninterrupted power flow so that if there were a problem with one generator, the whole plant would not shut down. All control over the generators was by switches which had to be activated by manual means. Each generator had its own bus bar which acted mainly as a load equalizer. Also, solenoid circuits were installed and immersed in oil. They would be held closed by current flowing through at normal levels, but would open automatically when overloaded or when no voltage flowed.

    The power transmitted outside the plant would be stepped up by transformers. As one portion of the operation after another was finally completed in the summer and fall of 1902, plans were made for testing the power canal and powerhouse and a formal opening of the plant. Using a temporary switchboard and a few operative units, electrical generation was provided for the grand opening. It would be three months later before all the electrical generation equipment was installed for the power company. On the carbide side of the plant, production operations began in December of 1903.

    The second floor of the powerhouse was used for the celebration, which was attended by 5,000 people. A large civic and military parade was held and Clergue's sister, Helen, threw a gold and jeweled switch, setting two generators into operation, lighting up several strings of arc and incandescent lamps, and setting in motion a street car that ran over tracks laid from the powerhouse to the country club. Speeches were delivered at the banquet, with Clergue offering a rosy picture of industrial development in Sault, Michigan. It was thought to be only a matter of time until this small outpost of the eastern upper peninsula would become a thriving city of over 100,000 and an industrial center of the Midwest.

    But even as the celebration was occurring. Clergue's industrial empire in Canada was crumbling. The Consolidated Lake Superior Corporation was now worth $117 million, with an annual budget that at times exceeded that of the whole province of Ontario. With all the various companies -- the steel mill, the pulp mill, the hydroelectric plants, the steamship and railroad lines, and mining operation -- the area looked prosperous, but It needed continual Investment capital to keep it going.

    The financial crisis worsened as sources of capital dried up. Payrolls for some of the companies in Sault, Ontario could not be met causing the Directors to pressure Clergue to resign in April of 1903. The Ontario and Canadian governments stepped in to help regulate the industry and meet payroll. The companies were reorganized and sectioned off. Many continued to operate and still do today as the Algoma Steel Corporation, St. Mary's Paper, Algoma Ship Lines, and Algoma Railways.

    The Michigan Lake Superior Power Company was also in disarray and $7 million in debt. The problems MLSPC faced were numerous. The compensating works were insufficient to divert lake water and needed to be expanded. There were legal questions, such as ownership of the St. Marys Rapids. Problems also began to appear with washouts. Repairs needed to be made to existing generators to allow them to operate at full capacity. Union Carbide was leasing power at far too low a rate to make a profit. It became more questionable whether new industries would be coming to lease electric power, even if they could be found.

    By February of 1903, a washout under seven of the penstocks occurred. The total repair program took nearly seven months and cost $180,000. In October of 1903, the plant passed into receivership, along with the rest of Consolidated Lake Superior Corporation, in 1904 the main bond holder, Provident Loan and Trust Company, foreclosed and the Michigan Lake Superior Power Company was reorganized with two separate managers.

    For the next six years, forebay leaks were frequent, restricting operating flow. Receivership certificates were issued to pay for repairs.

    Meanwhile, at the turn of the century, the Edison Sault Electric Company continued to supply electricity to the city of Sault Ste. Marie, and William Chandler worked to enlarge the powerhouse in the rapids. Chandler filed a claim on the land between the ship canal and the rapids.

    In 1901 Chandler applied to the War Department for permission to expand Edison Sault's public works and intended to lay claim to all of the water flowing over the rapids. This was in direct conflict to the needs of the Michigan Lake Superior Power Company, who diverted adequate water into their canal. It was evident to Clergue that if Chandler could develop a greater capacity for power in the rapids, he could produce it at much less cost per horsepower than MLSPC.

    In 1902 the Rivers and Harbors Act specified that water could be diverted into the power canal for the hydroelectric plant, except that the provisions of such an action could not be held to affect any existing rights of persons or corporations. Ownership of the water power in the rapids remained in legal limbo during the MLSPC's first two years of operation, in 1905, the U.S. Circuit Court found in favor of Chandler and Dunbar. Because this would definitely affect the amount of water available for the MLSPC plant, the ownership immediately appealed.

    In 1905 an International Waterway Commission was founded so that Canada could be represented in issues concerning water rights in border areas between the two countries. This Commission recommended that respective governments assume absolute control of all waters and lands necessary to improve or promote navigation in the international streams.

    Also in 1905 the Michigan legislature passed Public Act 264 granting franchise rights to utilities which would be serving specific areas. Edison Sault obtained a franchise at this time to serve Sault Ste. Marie in perpetuity.

    The 1909 Rivers and Harbors Act authorized condemnation of all private lands in the rapids and instructed the Secretary of War to lease to private interests any water available In excess of the needs of navigation. This meant an end to Chandler's expansion of Edison Sault Electric in the rapids.

    The Edison Sault Electric Company was paid $300,000 for their plant property but was able to continue to service the city by purchasing the excess power not needed to operate the locks. The 1909 Act also required that Michigan Lake Superior Power Company enter into a lease agreement with the government for use of the water. This original lease became the contractual foundation which today is still in effect with the Corps of Engineers and enumerates the rights to the diverted river waters for hydro generation.

    In 1910, because of extraordinarily low water levels In Lake Superior, the Corps of Engineers ordered that no water could be diverted to the power canal during the months of April and May, repairs to the forebay area were made. Once this was completed, no other major leaks occurred for several years.

    In 1910 Union Carbide offered to buy out the first mortgage bond holders of the MLSPC and assume ownership of the power plant. Seeing an opportunity to rid themselves of the plant and its inherent problems, the bondholders worked out a complex agreement and sold control in 1913. The new electric company, called the Michigan Northern Power Company, filed Articles of incorporation with the Chippewa County Clerk in August 1913. The property was turned over to the Michigan Northern Power Company and backed by the assets of the Union Carbide Corporation.

    An expansion quickly followed with contracts to Westinghouse for delivery of new electrical generation equipment.

    By 1917, all 80 penstocks were in use and turbine installation was complete. Penstocks 1, 43, and 81 did not hold electrical generation equipment, but were open as emergency spillways. The plant was now running at a designed capacity with 40,000 horsepower.

Continued in Part 4

To contact Customer Service, send mail to this link.

Send mail to this link with questions or comments about this web site.
Last modified: September 13, 2007