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The Irondale, Bancroft & Ottawa
Concurrent with their takeover of the Snowdon Iron Mines and the incorporation of the Snowdon Branch Railway, Pusey and Howland applied for the incorporation of the Toronto & Nipissing Eastern Extension Railway, their intention being to exploit the new iron mines being discovered in the region.  Royal assent was given to the incorporation on 05 March 1880.  However, by 1880, operations had been suspended due to a downturn in the iron ore markets.  Nothing much happened for the next three years. 
It wasn't until 31 January 1883 that the first meeting of the shareholders of the Toronto & Nipissing Eastern Extension Railway was held - but no action was taken to proceed with construction.  On 25 March 1884, the name of the railway was changed the Irondale, Bancroft & Ottawa - with authority to build a railway from Orillia, Ont to the city of Ottawa (225 miles), and to extend the line from the Irondale/Bancroft area northwesterly to Sault Ste Marie, and southeasterly to the town of Brockville. 
It is presumed that, during this time, Pusey and Howland were able to upgrade and operate the tramway built by Myles, however, the records aren't clear on this.  Recall that they controlled both the Snowdon Iron Mining Company and the Snowdon Branch Railway.  Some information indicates that the Myles tramway may have been slowly extended the extra 3 miles from Furnace Falls to Irondale. 
From 1883 onwards, Pusey was busy exploring and surveying a new railway line from Furnace Falls west to Bancroft.  In November 1884, notices were placed in newspapers for contractors to construct the IB&O.  The tenders called for the construction of 50 miles from a point on the Toronto & Nipissing Railway at or near the village of Irondale for a distance of about 50 miles to the village of Bancroft.  Plans and specifications could be seen at the office of the Company, 18 Court St, Toronto.  All tenders had to be received before the first day of January 1885.  Not much was done about the tender call until 15 February 1886 when the Directors ratified a contract with the Hudson Improvement Company.  But even that didn't get the construction started in any rush.
In November of 1886, the IB&O officially purchased the Myles Branch Tramway - the 6.75 mile long tramway that went from Kinmount Jct to the Snowdon Iron Mines at Furnace Falls.  It would appear that William Myles had been deeply indebted to the Canadian Bank of Commerce in the original development of his tramway and mining properties.  As collateral, the Bank had taken a mortgage on the properties and an assignment of Myles' shares in the Snowdon Iron Mine Company.  It would appear that the Bank was realizing on its security as the tramway property was purchased by the IB&O from the Bank for $500 down and $22,000 due in 12 months.  As security for the $22,000, the Bank took back a collateral mortgage on the Myles Branch property. The mortgage allowed for the substitution of steel rails for the wooden rails presently in place on the Tramway. 
At the same time, the IB&O signed a contract with Messrs Cooper, Fairman & Co of Montreal for the supply of rails and fastenings for about 12 miles of road and sidings.  It would appear that the order included steel rails to replace those currently on the Myles Branch Tramway.  Total cost of the rails was $17,710 with $4,567 having been paid in advance, $4,343 payable immediately, and $8,800 to be paid when the IB&O received its government subsidies (upon government acceptance of the first 10 miles of new railway).  As security for granting this credit, Cooper Fairman took a lien on the 5 miles of new road east from the Snowdon Iron Mine (Remember that the Canadian Bank of Commerce had a 1st mortgage on the Myles Branch Tramway - the first 6.75 miles of the line - as collateral for their sale of the Tramway to the IB&O.) 
By February of 1887, the line had been completed from Kinmount Jct to Irondale with 56 lb steel rails being laid throughout. 

The Irondale, Bancroft & Ottawa motive power was typical of many backwoods railways of Ontario.  Second-hand 4-4-0 locomotives, typically ex-Grand Trunk power, was the order of the day with the occasional new locomotive.  IB&O #1 was of ex-Grand Trunk stock, although very little is known about its antecedents.  It was nicknamed the "Mary Ann" as a tribute by it's first engineer, Samuel Edward Hancock, to his wife. 
It is presumed to have been built in 1855 by Birkenhead of England for the Great Western or the Grand Trunk Railway and sold to the IB&O in 1886.  It was originally built as a 2-4-0 to broad gauge of 5'6".  It was rebuilt to a 4-4-0 type and converted to standard gauge in 1872-74. It is presumed to have been scrapped sometime between 1907 - 1910.  Another little mystery to solve.  Photo courtesy of the Canada Science & Technology Museum - Howland Collection. 
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