CLC Is Formed and Finds Modest Success
In January 1900, following the decision of both the CPR and the GTR to build their own locomotives, the CL&EC once again became insolvent, and the plant was closed. It was bought by new investors and incorporated in February 1901 as the Canadian Locomotive Company Ltd. Improvements followed which allowed production of one locomotive per week. Reorganization once again took place under new management in June 1911 although the name remained the same.
CLC contributed to the war effort in two world wars by manufacturing armaments and munitions, as did the competing shops of the Montreal Locomotive Works, the CPR, and others. Large numbers of locomotives were also built for the war effort and for reconstruction afterwards.
By the end of World War II steam technology was at its peak, but production was declining except for exports to France, Belgium and India. CLC felt its future lay with diesel locomotives, but lacking expertise it sought out opportunities with existing builders in the United States.
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