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Monday, August 3, 2026

Lunenburg NS Canada & its American Prohibition History

#LunenburgNSCanada_AmericanProhibitionHistory

Lunenburg Inn
Once known as the Hillside Hotel, this town and boardinghouse (located in my Province of Nova Scotia) became the epicenter of the lucrative rum running trade to the United States during its Prohibition era
As rumor has it, some of the high profile guests included Joseph P. Kennedy, who was for sure connected to the liquor trade during the 1920s to 1936
But please keep reading and you can make up your own decisions if he was ever a guest, as i send out the facts during my investigation of this time in Lunenburg

Rail Connection
The hotel opened in 1924 by Sophia Hamm, a smart business move as the Inn sat directly adjacent to the train station in Lunenburg
This made it ideal for all the travelers, traders and figures connected to this black market 

Smuggling Industry
By 1925 half the areas fishing fleet had repurposed their vessels into sleek, fast sailing ships to carry the illegal booze to the awaiting Mob controlled boats off the coast of New Jersey and New York

For a more detailed explanation on how this all worked, go to my previous writing on this subject #LasVegasHowardHughes_NovaScotia_TheMob 

Today; Rum Runners Trail
The railway line is long gone that was used to transport some of the booze from Halifax to here,
but you can hike or bike the 120km (65 miles) and then let your imagination run wild of those times



Joe Kennedy
When i was in Lunenburg to research this subject, i sought out some of the "old guard: of the area to ask if it was true
But who knows if time has clouded their memories or like a fishing tale that the story
 gets embellished jajaja, there was no clarity to be found

Bootlegging Myth
There is no evidence according to biographers and historians of his connection to the
 illegal  trade of alcohol 
 Personally he drank very little and famously offered his sons cash rewards to avoid partaking until they reached the age of 21
The Mob boasting of working with Kennedy, this has come down to post facto story telling or confusion with other liquor merchants with the same name

Post Prohibition Success
With a legitimate business move, just before the ban was lifted he used his connections to secure exclusive US import rights for major brands like Dewar Scotch and Gordons Gin
Then he headed Somerset Importers which positioned himself with massive stockpiles of product and then was legally ready to sell the moment the 21st Amendment was ratified
The payoff was a decade later when he sold his stake for millions, this was what laid the financial foundation for the Kennedy family fortune for the next generation



American & Canadian Prohibition

The biggest difference between the two countries was how the laws were enacted and enforced
The United States implemented a very strict and nationwide constitutional ban on the manufacturing, sale and transport of alcohol under the 18th Amendment
In Canada it was decentralized and managed by each Province, this had many legal loopholes
 that was abused
It allowed breweries and distilleries to continue manufacturing alcohol for export, so the
US market became an economic windfall for the bootleggers

History
The ban lasted in America for thirteen years (1920 - 1933) while in Canada it was basically a wartime sacrifice when most of the Provinces went dry (1916 -1917)
 Then the citizens grew tired of it quickly and repealed the bans in the 1920s, just as the
US Prohibition era was reaching its peak 

Fun Facts
The Province of Quebec rejected a full prohibition ban from the beginning, yes restricting hard liquor but allowing beer and wine
On the other end of the spectrum, Prince Edward Island stayed dry from 1901 to 1948 😐

Ship Building
The area was famous in its construction on the Bluenose Schooner (on the Canadian 10 cent coin)
that dominated International racing during the 1920s to 1930s
But its less law abiding sister ships were making history of a different kind, as the local boatyards made ultra fast vessels for the illegal trade
Even sometimes mounting high powered airplane engines to outrun the
 US Coast Guard Cutters

The famous Im Alone Schooner

Mob Ship
New York gangster Jamie Clark showed up in Lunenburg with $18,000 in cash and bought the ship Then he setup a fake Canadian shell corporation called the
 Eastern Seaboard Steamship Agencies Ltd,
this was to register the vessel under the British Union Jack to evade the American authorities 

Captain Jack Randell
He was a highly decorated First World War naval hero from the next Province over of Newfoundland
Known for his swaggering style, often wearing silk dress shirts, dinner jackets and even top hats
while out at sea
 He certainly fit the bill for this dangerous lifestyle

The Vessel
 It was legendary, a 125 foot ship that was painted black for a stealth look and was equipped with powerful twin diesel engines
It also had a high tech radio to intercept US Coast Guard messages and even an antique wax seal press to forge official documents to make it look like they were
 transporting regular cargo 




March 1929
US Coast Guard cutter Wolcott spotted the ship off the coast of Louisiana
Captain Randell refused to pull over and even brandished a revolver at the American officers
This resulted in a two day pursuit into International waters
A second US cutter the Dexter joined the chase and then intentionally gunned down the Im Alone by shelling the hull until it sank

Imprisonment
The Captain and his seven crew members were brought to New Orleans where they were jailed and formally charged with violating the Volstead Act (Prohibition) 
A few problems emerged though, the city was widely considered "wet" and strongly opposed the ban so considered Randell as a captive hero
Then because they were arrested 320 kms (200 miles) off the American coast, this was well outside the US legal jurisdiction and so the charges were dropped almost immediately

The Aftermath
Canada sued the United States for its International law violations, but in a plot twisting moment an American codebreaker proved that the ship was actually owned by the US Mob
This drastically reduced the fines that the Americans had to pay to the Captain and also the widow of the deceased crewman 
Finally an apology was issued between the two countries and Randell returned immediately to his
life at sea, until his failing health forced him into retirement in 1941 and unfortunately 
  died three years later

In Song
Because of the epic two day high seas chase, Canadian folk musician Wade Hemsworth wrote a popular ballad about this saga 
The Sinking of the Im Alone 

MacIsaac House of Lunenburg
This a classic American Four Square design  but do not let the "normal" layout fool you
Typically the doors and windows were frequently altered or hidden to hide their
 liquid gold from authorities.
Local folklore says the identical front and rear doors were built to confuse the devil, but it sure came in handy when the liquor inspectors showed up looking for the escape routes plus the concealed alcohol


Why it Ended
A) The Great Depression; following the stock market crash the US government desperately needed the tax revenues and also to create the jobs that the legalized alcohol industry would provide
B) Rise in Crime; banning alcohol did not stop the consumption and instead created a violent underground economy ruled by mobsters and bootleggers
C) Enforcement Nightmare; the Feds lacked the funding and personal required to police the thousands of kilometers (miles) of borders and the countless illegal speakeasies

21st Amendment
With the repealing of the 18th Amendment, it became the first and only in American history to be completely overturned
After the federal ban it returned alcohol regulation directly to each state, which some chose to remain dry for decades (Kansas 1948, Oklahoma 1959 and Mississippi was the last holdout 1966)
and with numerous "alcohol free" counties that still exist today 



Famous Characters
With any "grey period" of history you come across some truly interesting stories

Hugh Corkum
His story started uneventfully as school dropout, onto a highly successful adult rum runner who dodged machine gun fire and the American authorities on the high seas, then decades later went completely straight and served at the Chief of Police for the Town of Lunenburg
You can read his autobiography; On Both Sides of the Law

Captain Edwin Backman
He was a master mariner from a local family here who would sail salt cod down to Bermuda, then return with rum for the Eastern Seaboard of the USA which earned him a massive fortune

John "Machine Gun" Kelly
Was a Canadian customs and excise enforcement officer who patrolled the Nova Scotia waterways.
He got his nickname by mounting a machine gun onto his boat deck and famously opened fire
on a fleet of small vessels unloading barrels of rum off nearby LaHave Bank,
resulting in the death of one smuggler


As we move to the end of this story, time for "i did not know that" 😀

 Why a lot of small boats are painted red
Historically wooden hulls suffered from biofouling caused by barnacles, algae,
 and wood boring shipworms
The early shell-coating paints used cooper oxide as a biocide to repel these organisms, thus the chemical compound naturally dyed the paint into a reddish brown color
Also bright red creates a stark contrast against the water, allowing mariners to quickly gauge the boats load line and its stability


Lunenburg with its Famous Son the Bluenose11

As we leave from the black and white era of the1920s / 1930s, what better way to sail off but in full color of this UNESCO  World Heritage Site
Not because of its rum running history, but its the best surviving example of a planned British
colonial settlement in North America

Full Circle 
After the original Bluenose sank off the coast of Haiti in 1946, the Oland Brewery Company of Halifax (who made lots of money during the Prohibition Era) built the newest version in 1963
 Then sold it to the Nova Scotian government (for a token $1.00) which is now our sailing ambassador sharing our maritime history and culture around the world

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