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Gaherty and his wife with Stoney band members. Gaherty was honoured by the Stoneys for his good relationship with the band, 1960. TRANSALTA COLLECTION
Kananaskis Dam, c. 1940. GLENBOW ARCHIVES PA-3538-1
His intense desire for privacy created an air of mystery and intrigue that only added to his business reputation. During the boom of the late 1920s, Killam had adopted an aggressive business strategy and positioned the company as the leading electrical supplier in Alberta. Geoff Gaherty, as company president, had led the campaign to sign electric franchise agreements with numerous small villages and towns in southern Alberta, purchased a series of municipal steam-powered generating systems, built new transmission lines, and serviced the expanding system with electricity from Calgary Power’s hydro facilities. The resulting low power prices and twenty-four hour supply—which most small utilities did not provide—neutralized any local competition. With the collapse of capital markets, the role of Royal Securities became pivotal to Calgary Power. The financial company provided some capital directly and provided collateral for securing debt from
other lenders. The government also strengthened the company’s hand. Federal officials allowed banks to value corporate bonds for collateral on the basis of their face value, not their market value—an arrangement that benefitted Calgary Power. Calgary Power took many years to pay off the Ghost construction expenses and find markets for the excess power. It executed cost-cutting measures while Killam recycled his dividends back into the company. Somehow, all the payrolls were met and the liabilities covered. Killam’s connections procured several bridge loans from the Royal Bank to get through tough periods, and in 1934 he lowered debt costs by converting a $1.8-million bank loan into bonds. The worst was over by 1935 as the markets began to stabilize. While Killam provided the financial vision for the enterprise during the Depression, it was Gaherty who crafted and executed the business plan—both operating from Calgary Power’s head office in
P OW E RI N G G EN ERAT I ON S