Development of Walker's distillery
Through his work in the grocery business, as well as his cider and wheat sales, he had nearly $40,000 saved, which he then used to purchase additional space in Detroit and inexpensive land across the Detroit River, in what is now Windsor, Ontario, in order to expand his business. He did have interest in distilling his own liquor, but at the time, there were strict prohibition laws which prevented him from doing so. Walker distilled his first barrel of whisky in 1854, despite the instability of prohibition laws. After 5 years of distilling in Detroit he ended that particular business there.
Walker was considered one of the largest landowners in Ontario, and over his entire lifetime, his land possessions measured around 10,000 acre, most of which along the Walkerville and Detroit River Railroad. The location of Walker's property, on what was originally considered part of the Labdie farm, was extremely valuable because the Great Western Railway was in close proximity and enabled Walker to move products from his distillery and cattle yards.
Whisky makers before Walker ran spirits and whisky through charcoal, until around 1855, but Walker's method of utilizing a barrel to "create colour" and a pleasing flavor was unprecedented.
A huge demand for Walker's whisky and flour originated through the Civil War. It was at this time, that smuggling became common via the Detroit River. There is a legend that Walker built a "liquor pipeline" under the Detroit River for smuggling purposes.
Being an entrepreneur, Walker looked at every venture possible, to expand his business. Since Detroit was only a boat-ride across the river to Windsor, Canada, he began to weigh his options in expanding into foreign territory. Canada had much to offer entrepreneurs and business risktakers. The population was increasing gradually, communications were advancing, and real estate was cheaper compared to that from across the river. Labor and materials also cost less in Canada than in the States. Walker looked into expanding to Canada. With the expansion of America through the Great Western Railroad, trade opportunities opened up for businessmen like Walker. He ventured into Canada across the border from Detroit into what is currently known as Essex County. At this time, the population in this area was considerably smaller than that of Detroit, consisting of small village settlements under the Township of Sandwich, such as the villages of Windsor and Sandwich. Most of the land in this area was vast farm land.
In 1856, he bought his first piece of land from the Labadie family through grandson Eugene Hall for £300. This transaction took place on December 22, 1856, using the British currency system that Canada was still employing. A month later, on January 24, 1857, he acquired another 300 acres of land for which he paid £750. Also on this day, he purchased another 104 acres for £250. The remainder of 1857 involved building on much of this land. Walker, still a resident of Detroit, often crossed the border to oversee the construction. His plan was to open a steam-powered flour mill, which did not exist in the area, and a distillery, in which he had very little serious competition. He also had his hands in the agricultural industry, with owning cattle and hogs, as well as farming.
In 1857, Walker bought more property near the farm he already owned, increasing his holdings to 468 acres. He began construction of the flour mill and distillery in the same year, which he visited every day during construction even though he still resided in America. He continued his grocery business in the meantime, helping him become the leading commission merchant in Detroit.
The year 1858 marked the completion of the flour mill and distillery that Walker was building in Canada and at this time business could begin. During this time he still maintained his very successful grain business in the United States. The flour that would be produced in his flour mill would prove to be popular not only in Canada but also in the United States and Britain. His introduction of a large steam flouring mill benefited the County of Essex's farming community, which at this time made up most of the population, by encouraging farming practices. Wheat farmers from all around would go and use the flour mill as it gained in popularity.
The distillery was also becoming quite popular with the locals at this time. Mid-summer 1858 marked the opening of Walker's whisky operation. The same process which he had used in Detroit was now used in Windsor to distill his alcohol. Spirits were leached through charcoal, a process widely used at the time.
His Canadian industries quickly took precedence over that of his grain business still located in Detroit. It was because of this that Walker found himself traveling by ferry to Canada from his home in Detroit on a daily basis. This trip was a lengthy process as the ferry that brought him to Canada dropped him off in Windsor, which left a long ride via horse and buggy to his flour mill and distillery. At this time in March 1859, Walker moved to Canada in order to save time traveling to and from his Canadian businesses. He moved out of the home he had been in since 1851 and into a house located near the flour mill, which he altered and called "The Cottage".
The Cottage was a home that previously had been owned by the Labadie family, from whom Walker had purchased much of the land on which his industries were now located. This framed house was built in 1839 and resembled the French style of residences prevalent in the area. Walker made several modifications to the home including two large additions at each end of the home, the addition of a third floor as well as servants dwellings. In the few years that Walker lived in Canada he remained at The Cottage.
The new Canadian business helped spur other ventures for Walker. He tried hog farming for a while, until cholera broke out, when he switched to cattle farming instead.
In 1859, Walker hired John McBride, one of his workers from Detroit, to be his traveling salesman. His job was to solicit orders from vendors who might be interested in purchasing the product. Taken from Walker & Sons Ltd. Archive The year of 1860 saw some of the highest production because both his mill and distillery were running almost non-stop. 1861 and 1862 marked the first years of paying back many expenses and seeing the beginning of profits. Operations became larger and more continuous as farmers, salesmen, and office staff would find themselves very busy. In 1863, Walker made McBride his partner, changing the name of the business to Hiram Walker and Company.
A massive source of profits for Hiram Walker was actually the Civil War in the United States. The U.S dollar plummeted during this time, and Americans turned to smuggling in Canadian beverages. It is reported that Hiram Walker and Company loaded jug after jug of whiskey onto American ferries, carrying them across the Detroit River, leading to Walker making massive profits. Jealous competitors constructed a story of Walker creating a lead pipe that led right from the distillery, under the Detroit River, and into Detroit. By 1863, Walker had named James Ellis in charge of his mill, William McManus as his distiller, and John McBride in charge of managing. While a majority of his business did take place on the Canadian side of the border, he did prefer to live in Detroit.
In 1863, he bought a home within Detroit. Walker also attempted to construct and run a vinegar factory in 1864, but was unsuccessful and closed down two years later due to his other commitments. Up until 1865, Walker's distillery was the only one to exist in Essex County, however, Walker found himself with competition with Rolph and Melchers. During this time, Walker's partner McBride was anxious to move up the chain within the company. Two years later, John McBride and two of his friends bought Rolph and Melchers. After discovering what McBride had done, his employment was terminated and Walker lost his business partner. Ironically, McBride and his partners would end up having to sell their property to Walker because they were going out of business and it was operated by Hiram Walker as a second plant until 1876. John McBride would go on to become a tax collector and grocery store owner in Detroit.
