Dalvay-by-the-Sea

If the walls of Dalvay-by-the-Sea could talk, the tales they could tell of the Scotsman turned oil baron, two girls who grew and married into royalty, a father who cheated them of their inheritance, a caretaker and prohibition rum-runner who owned it and much more.

Now, this is an ideal summer home, which is exactly what this house was for many years on Prince Edward Island, Canada. It was an unexpected site we "discovered" when day-tripping on our May road trip to Maine and Canada. It may look familiar to some since Dalvay-by-the-Sea was featured in a film, Anne of Green Gables (1985) as the White Sands Hotel.

Alexander McDonald at Dalvay

While it's still known by its original name and is now a Canadian National Historic Site. This house was originally constructed by Alexander McDonald as a summer home. He was a very wealthy businessman (millionaire status) in the late 19th century. As President of the Standard Oil Company of Kentucky, he worked with John D. Rockefeller. McDonald was also the director of the Big Four Railroad, the Third National Bank, and the Carnegie Trust Company. Today, Dalvey is a summer resort open May to October with 25 guest rooms in the Main Inn and eight 3-bedroom cottages for larger groups were added in recent years.

On the day of our visit, the entire building was reserved as a retreat for female cancer survivors. The management graciously allowed us to walk around the main floor and tour the outer grounds as the events had not yet started. We learned much about the house; however, this post is about the original family that owned Dalvay-by-the-Sea than about the house, as their lives proved quite interesting.

Main reception desk for guest check-in

Exploring Dalvay, we learned about its original owner, a native of Scotland, who immigrated to the U.S. in 1833 and settled in Cincinnati, OH. By 1863, McDonald entered the oil business and became president of Standard Oil of Kentucky and also a very wealthy man. He wed Laura Palmer in 1862. Their daughter, also named Laura, married Edmund Stallo, a Cincinnati lawyer, and they had two daughters, Helena and Laura (third Laura). The McDonald's daughter Laura died of cancer at age 25 in 1895. She left her young daughter's care to her parents who later adopted the two girls. (There was no reason given as to why it wasn't her husband, but more on him later.)

The original entry doors still remain at Dalvay

The family vacationed on Prince Edward Island the summer after their daughter's death. McDonald bought 120 acres of land on the north shore to build a home. The plan was to spend summer vacations there in memory of their daughter. Years ago, it was common for the very wealthy to construct an elaborate seaside retreat because at the turn of the 19th century, it was how those who could afford it escaped summer heat of the city. One of their favorite locales was the U.S. East coast (Newport, RI and the White Mountains of NH) and Atlantic Canada for the cooler summer temps. Another fellow Scotsman, Alexander Graham Bell, had a summer home in Nova Scotia. It was built by Rhodes, Curry and Company, a Canadian construction firm which later built Dalvay.

The original Dalvay-by-the-Sea after completion

In late 1895, construction costs were close to $50,000 (imagine getting a house like this built for that now). Local building materials were used exclusively. The lower half of the house was built with Island Sandstone in natural boulder form, fireplaces were built with quarried blocks of the same. Most of the furniture was oak and mahogany. The extensive use of wood reflected a long-time Maritime building tradition. 

This is the main lobby that we came into from the front doors shown above. These furnishings are not original to the house. The McDonalds had traveled extensively and items they included in the house were sold in later years.

Home of Alexander McDonald in OH

The McDonald's Cincinnati, OH, home was called Delvay after McDonald's boyhood Scottish home. When the summer PEI house was built, it became Dalvay-by-the-Sea. The difference in spelling between the two homes is a mystery. The OH home, which sat on six acres, was demolished in the 1960s. The site is home to a Cincinnati Public School. 

Annual operating costs for Dalvay ran about $10,000, a huge sum even now. There was a large number of servants, caretaker and men to look after the horses and stable.  There was a covered bowling alley, a billiards room on the third floor and a sailboat for use on Dalvay Lake. The summer house was usually filled with guests as the family entertained often. Every season before leaving, McDonald hosted a dance for the local residents.

This main stairway leads to guest rooms on the upper floors

McDonald Mausoleum, OH

Laura McDonald died in 1903 and after that Alexander McDonald was reported to visit less often. In 1909, on his last visit to Dalvay, McDonald was unwell and reportedly bid the house goodbye. He never returned and died in 1910 in Long Beach, CA, at age 82. 

They are interred in the McDonald private mausoleum in Cincinnati, OH. 

McDonald's vast fortune was left to be shared between his two granddaughters, 16 and 17 years old at his death. The estate was worth roughly $15 million dollars making the young women two of the wealthiest women of their day. Their father oversaw the estate and was entrusted to keep it until they reached legal age.

Two Rich Young Women Marry

Laura & Helena

Both women planned to marry successful young men from the society roster. But, family members were convinced that they could make better matches by striking out for European royalty, and so they did. Laura married an Italian nobleman and Helena wed a French prince. Their futures looked great. 

But is wasn't as by 1930, their inheritance was as good as gone. Their father, Edmund Stallo, apparently not as financially savvy as his father-in-law, had invested in several sketchy schemes. His bad investing was really bad. 

The young women were unaware that as soon as Stallo was put in charge of their inheritance, he began to loot it. Eventually, they learned that their own father had spent nearly their entire inheritance; the large fortune Alexander McDonald left had dwindled to almost nothing. (Stallo not only ruined his daughter's finances, but also lost fortunes inherited by two successive wives. He died penniless in 1945 after being committed to a CA hospital for the insane by his third wife.)

Edmund Stallo and his daughters

Laura and Helena's lives changed since when the sister's money ran out, so did the husbands. Both marriages ended in divorce. Helena died of cancer in her 40s, nearly destitute. Laura moved to NYC and worked to support her family. (Helena’s grandson is NY born actor Rene Murat Auberjonois who played Father Mulcahy in the 1970 film version of MASH.)

What happened to Dalvay-by-the-Sea?

William Hughes, Dalvay's caretaker after McDonald's death, continued to look after the house until the family couldn't afford to keep it. Laura told Hughes that he could have the house for what was owed in back taxes. Hughes purchased it for just over $486 (what a deal) but had zero interest in keeping up the huge mansion, so it was sold for an undisclosed amount.

Lounge room at Dalvay-by-the-Sea

Its next owner, William O’Leary of Charlottetown was the brother of the Bishop of Charlottetown, who used Dalvay as a summer retreat. During this ownership many of the finer furnishing were removed from the house and sold.

It next went to a notorious rum runner during PEIs prohibition years. In 1932, Edward Dicks bought the property to operate as a summer resort. He spent so much money in upgrades that there was little left to market it. No marketing meant no clients and Dicks went bankrupt. In 1936, its new owner was George Delois, one of his creditors, and former PEI Lieutenant Governor. 

In 1938, ownership of Dalvay-by-the-Sea was transferred to the government when Prince Edward National Park was created. DeBlois bargained to retain a large, white family cottage on a piece of land across Dalvay lake; it remains private to this day.

Dalvay has an extensive and comfortable front porch seating area

In 1994 Dalvay became a National Historic Site of Canada. It's operated as a summer hotel and dining room in a lease agreement with Parks Canada. Major renovations started in 1995 are ongoing. A full dining room expansion was done off the main house to offer views of Dalvay Lake.

Patrick at Dalvay's main entrance

Original materials were used to retain the full Heritage Standard of the original house, including pine wood panelling for the ceiling to the maple hardwood floor. Exterior field sandstone was quarried locally and hand-built by local masons.

Beach views at Prince Edward National Park

If we are ever revisit this part of Canada, this is where we would consider staying. Dalvay-by-the-Sea not only offers beautiful views, but is within Prince Edward National Park.