Ribbons of Oil

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Howe staunchly defended the decision on the U.S. route, pointing out that the higher cost of the Canadian route would penalize Alberta produc­ers in the form of a lower price for their oil. "Certainly the cost of the pipeline must be paid by the oil it transmits; I know of no other source of income for a pipeline," was Howe's blunt analysis of the obvious.

"I think the plan is to sell a great deal of oil in the United States," blurted Howard Green at one point in the debate.9

"Is there anything wrong with that?" asked Howe.

Back in his riding at the twin cities, Howe's stand was anything but pop­ular. Port Arthur Mayor Fred Robinson headed a civic industrial commit­tee organized to fight the issue. The group sent to every member of Parliament and to city councils, chambers of commerce, labour unions, and other organizations across Canada a circular with a strongly worded nationalist line, emblazoned with the Canadian red ensign and the slogan "Put Canada First."

"This pipeline belongs to Canada," it declared,

American capital has played a part in development and progress of Canada, but at a price. The price is an inferiority complex when it comes to promot­ing our own welfare. . . . Surely, we are not so shortsighted that we will sell our birthright for a few million dollars. It is your fight as a Canadian! You can keep this pipeline in Canada if you are determined to do so. 10

Robinson had the continuing support of George Drew. "If we let every­thing go [through the United States], we'll be swinging into the U.S. like Scotland was swung to into England," Drew declared.11

But Howe, the practical engineer and builder of business, was not one to be moved by histrionics. He stood firm by his decision to allow the more economic U.S. route.

Financing plans for the $90-million pipeline were completed by Imperial late that year. Of the total, $72 million would be borrowed in the form of 3.5-percent first mortgage bonds, and $18 million would be raised in equity capital consisting of common shares and debentures convertible into common shares, at a price of $50 per share. Imperial bought one-third of the equity; 25 percent was purchased by other oil companies, and 42 percent, or $7.5 million, was offered to the public. Those who subscribed to the public offer found it highly profitable. An investment of $1,000 in 1949 after 20 years was worth approximately $25,000.12

IPL has been called "the fastest pipe in the West," with construction of the 1,129 miles of line from Edmonton to Superior completed between the spring and fall of 1950 in 150 days. No other pipeline as long or large as this had been built in so short a time. Preliminary work had been complet­ed well in advance of the actual construction start. The Tulsa-based engi­neering task force moved its headquarters to Edmonton in November. Aerial photographic surveys provided stereo and mosaic prints and were used in detailed ground survey work in 1949 to locate the exact route. Property was acquired along the right-of-way, which involved dealing with 2,100 landowners in Canada and 400 in the United States.

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