In 1881 the Government of Newfoundland, after years of debate, let the first contract to build the Newfoundland Railway. This decision was to have far reaching effects on communities like Arnold's Cove, which up to that time, were basically isolated. Construction of the railway station at Arnold's Cove meant the community would be a stop-over for people in the bottom of the bay visiting other parts of the island. By 1891, the railway had been constructed from St. John's to Arnold's Cove. The earliest mention of railway transportation to and from Arnold's Cove Station was in 1893, "Yearbook and Almanac of Newfoundland", where it would cost you $1.25 to travel 1st. class, forty-two miles from Arnold's Cove to Whitbourne. If that price was "too rich for your blood" you could always go by 2nd. class for 80 cents. Children under twelve was 1/2 price. Children under five (one child only and in arms) with parent or servant, free. By 1899, a train fare from St. John's to Arnold's Cove would set you back $3.00 if travelling 1st. class and $2.00 via 2nd. class. Children's fare remained the same, 1/2 price of an adult passenger.
The new stop became the community, now called Arnold's Cove Station. Families such as the Pritchards, Roses, Lynchs, Warrens, Culletons, Hayes, and Bollards settled in as more jobs became available with the railway construction. Construction stopped during World War I after which it continued another 50 miles.
Most families were Roman Catholic and attended church in Southern Harbour until St. Christopher Roman Catholic Chapel was constructed in 1929. The children attended classes at the church until the end of the Second World War. During the Second World War, the American Defence System set up a military base at the Arnold's Cove Station. Their canteen was later turned into the Stations first and only school. The school remained open until the mid 1960 when the new St. Michael's school was constructed in Arnold's Cove.
The Station remained a terminal for the railway until it shut down in the 1980s.
Arnold's Cove became part of the huge American Defense system in Newfoundland during World War II. The American Military set up an Anti-Aircraft Artillery units and Watch Towers to patrol the area from Arnold's Cove to Come By Chance and along the coast line in Placentia Bay and Trinity Bay. They set up their barracks, messhall, and dog kennels at Arnold's Cove Station.
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