Джеймс Хамет Данн: Канадский финансист и промышленник

Canadian financier and industrialist

Sir James Hamet Dunn, 1st Baronet (October 29, 1874 – January 1, 1956) was a Canadian financier and industrialist during the first half of the 20th century. He is recognized chiefly for his 1935 rescue and subsequent 20 year presidency and proprietorship of Algoma Steel.

Dunn was born in the village of St. Peter's, now amalgamated into Bathurst, New Brunswick, Canada. His father owned a shipbuilding company whose fortunes had been all but wiped out by the sharp decline in the demand for wooden ships, and died when he fell into the harbour when James was an infant. His widowed mother, who was a particularly devout member of St. Luke's Presbyterian church, raised him on her meager earnings as a telegraph clerk. The bereft family also had help from the Fergusons, owners of a large farm, where his mother exchanged household duties for room and board. In his posthumous biography, boyhood and lifelong friend Max Aitken, 1st Baron Beaverbrook remarks on Dunn's exposure to the Shorter Catechism and the creed of John Knox through his mother's devotion. Specifically, Beaverbrook mentions the responses to Questions 74 and 75 (which explicitly command that wealth be acquired only by lawful means) as formative influences on the young Dunn. From childhood, James Dunn was a voracious reader with an excellent memory. After completing his schooling, he left home to find employment and for a time he worked as a deckhand for an American shipping company on Lake Michigan. After this, he made his way to the east coast where he was employed by a manufacturing company in Lynn, Massachusetts. However, before long he returned home took a job as a clerk at the law firm of George Gilbert, where he worked alongside Richard Bedford Bennett, led him to the decision to apply to Dalhousie University Law School in Halifax, Nova Scotia. The small amount of money he had been able to save was not nearly enough to cover his education costs and Dunn worked at a variety of part time jobs to pay his way through university, including a position in the university library. He graduated in 1898, then worked as a lawyer in Halifax before setting up a law practice in Edmonton, Alberta. Within a short time, Dunn was drawn to the booming economy of Montreal, Quebec where he landed a position with one of the city's prominent law firms. At the height of the Great War in 1915, his associate Pearson was killed when the Germans sank the RMS Lusitania. Despite these setbacks, he would quickly recoup and go on to become a multi millionaire. It is reported that Dunn partnered with the Belgian financier Alfred Loewenstein in several business ventures, the duo emerging with more than £1,000,000 profit from their 1920s investment in British Celanese alone. Dunn's close friendship with Max Aitken continued after the wealthy New Brunswicker also chose to live in England. Still very much in touch with his roots, after a 1911 fire destroyed the bells of Christ Church Cathedral in Fredericton, James Dunn donated the replacements for the original 1849 five ton bells. The First World War provided him with a number of business opportunities and to the ability to serve Britain. For his World War I efforts, he was created a baronet in the 1921 New Year Honours. During his lifetime Dunn became a major industry leader rivaling even the Rothschilds as a central figure in British finance. Although he lived primarily in England during his stockbroking years and maintained a villa in France, Dunn frequently traveled to Canada to spend time at his fishing camp on the Nigadoo River not far from his birthplace.

A number of Sir James Dunn's Canadian investments were in Northern Ontario mining ventures and he began a business relationship with Algoma Steel, a company in Sault Ste. Marie, Ontario. Founded by Francis Clergue, Algoma Steel had been taken over by Philadelphia, Pennsylvania investors after its 1903 bankruptcy. Overly dependent on the production of rail tracks, the steel company suffered through numerous problems and in 1908 Dunn had partnered with a British group of investors who included Robert Fleming to cooperate with an American consortium to form the Lake Superior Investment Co. to acquire Algoma Steel. Although Dunn's role at the time was important, he was still only a minority player and the American investors had control. Algoma Steel went through years of ups and downs, marked by a lack of strong leadership, and in 1935 the company was again forced into receivership, and with it went the city: a plaintive cry for help from the mayor to Dunn details the ordeal. This time, at the age of 61, Dunn engineered a takeover so that he became the sole controlling shareholder thereby allowing him to take the tough but necessary reorganization measures to restore profitability to the steel maker. To accomplish this, he raised capital by negotiating bank loans, selling his beloved art collection and taking stock instead of income. Dunn's intestinal fortitude is responsible for his claim to at least two significant innovations in the industry. Hematite ore was the foundation of the steel industry in 1935, and it was indeed exploited by Algoma. Next to a hematite deposit owned by Algoma was a mountain more than 1,000 feet high but it contained a low grade ore called siderite. The experts unanimously declared that Dunn, who wanted to exploit this mountain of siderite, was mad. Nowhere else in the world was an ore of this grade in commercial use. In the early months of 1939, a pilot process seemed to indicate success, but in order to be ascertained it would require full production. Dunn carried the investment through to the end and a positive result was his reward. The next innovation which Dunn developed into production at Algoma was then known as the "Sink Float process". The need for innovation was due to the exhaustion of ore supplies at the Helen mine. The process, which had been established at Broken Hill Proprietary by Guillaume Daniel Delprat at the turn of the century because of a similar exhaustion, had been tried once or twice in the US but on ore quite different from that at the Victoria. No Canadian mines had developed this technique; no large scale equipment was available for experimentation and so the pilot plant would be uncertain and expensive. The gamble was a success, and Dunn pioneered again. The Victoria mine was able for a time from 1945 to supplant the Helen mine, while the latter changed from an open pit to, in 1949, an underground operation. During the Second World War, the company benefited from the huge demand for steel by the military; however, financial calls from his associates, who needed or wanted to liquidate positions as a result of the French collapse, bedeviled Dunn, who retained in the end his Algoma shares and nothing else. Even then, he mortgaged them to his stockbroker friends. The benefit from a subsidized price for sinter, granted at the corporate nadir of 1935 by the provincial government of Mitchell Hepburn, was cancelled in 1942 by the Conant government. At times Dunn's relationship with the federal government minister in charge of the war effort, C. D. Howe was difficult; Beaverbrook relates a story in which he had to calm Winston Churchill because Howe or Mackenzie King, in the dark days of October 1940, had shredded Dunn's reputation. Howe threatened Dunn on 26 October 1940 with effective expropriation under the War Measures Act and the National Resources Mobilization Act: the government might obtain control of "trading, exportation, importation, production and manufacture" works, and require him "to place [himself], [his] services and [his] property at the disposal of His Majesty in right of Canada, as may be deemed necessary or expedient for securing the public safety, the defence of Canada, the maintenance of public order, or the efficient prosecution of the war, or for maintaining supplies or services essential to the life of the community." A letter to Churchill from Beaverbrook, who at the time was in the former's Ministry, was enough to secure the person and property of Dunn, but his health suffered ill effects, as presently will be related. The week after Dunn had a major surgery, Howe struck again. This time, Howe telephoned on 12 April 1943 to Wilson at the Royal Bank: if Howe's steel experts (likely the same experts Dunn had wrongfooted in the siderite development) were right, either Dunn must stand down from his Chairmanship of Algoma, or he would be forced to expropriate. Many precedents had accumulated over three years, both in the UK and Canada. But Wilson and his Royal Bank stood firm and refused to countenance this extreme. Wilson instead asked for disclosure of the government file, and Howe's bluff was shot. By August 1943, a vice president at Algoma was removed and the way forward was clear. Dunn and Howe later became friends, and Howe even acquired a summer manor next door to the Dunn estate, Dayspring, at the seaside resort of St. Andrews in New Brunswick. Howe even served as an Executor of Dunn's estate. It was during the war that Dunn had two major health crises brought on by old age. These required hospital stays of 17 days and five weeks respectively. He and Christoforides, who throughout was by his side day and night, succeeded by artful means in keeping both stays from the press. Shortly after the end of the first bout with adversity, he married her.

In 1944, Dunn was invited to serve on the board of directors of Canada Steamship Lines (CSL), whose ore carriers were an important transporter of ore and coal for the Algoma Steel plant which operated under a geographical disadvantage to its more southerly competitors. Unhappy over CSL's policy of prioritizing service to his steel mill's competition on the lower section of the Great Lakes, with backing from a Winnipeg, Manitoba businessman plus the Montreal publishing magnate, John Wilson McConnell, James Dunn quietly set about buying up shares of the shipping line. He secured a line of credit from the Bank of Montreal and through Earle McLaughlin at the Royal Bank of Canada he raised a war chest that saw him gain effective control of Canada Steamship Lines in 1951. This was followed up by the acquisition of another shipping line with cargo vessels capable of cost effective delivery of Algoma Steel's products to the southern markets. Within a few years, Dunn was exporting iron ore from his Algoma Ore Properties Limited to American buyers.

Sir James Dunn had been an avid art collector for many years. He was introduced to this pastime by van Horne in 1908, and purchased three paintings by Goya before 1911, and a Velazquez by 1912. Dunn was pained when forced by the Fischer debacle to liquidate his art collection in 1914. The transaction included 13 paintings and included Holbein, Bronzino, Manet and El Greco. Dunn commissioned seventeen portraits of participants at the Versailles Conference by Sir William Orpen, amongst whom were Woodrow Wilson and George Barnes. At the height of the depression, commissioned another dozen, this time of his friends like Lord Greenwood, Lord Castlerosse and Lord Beaverbrook, by a down on his luck Sickert. In the late 1940s, he and Christofor, Lady Dunn, developed a friendship with Salvador Dalí. The artist went on to paint the portraits of the couple ( Gala Salvador Dalí Foundation)( Gala Salvador Dalí Foundation) which are now on permanent display at the Beaverbrook Art Gallery in Fredericton, New Brunswick along with one of Dalí's greatest pieces, the "Santiago el Grande." As well, the art gallery received other works of art that the Dunns collected including a 1650 painting by Jakob van Loo titled "A Gentleman" and the Augustus John picture, "Dorelia" as well as John's portrait of Sir James Dunn.