The Algoma Central fell victim to the bankruptcy of Clergue's Consolidated Lake Superior Corporation in 1903. At that time, the line reached north of Sault Ste. Marie, with a segment running east from Michipicoten Harbour that did not yet connect with the main line. Construction was stopped, but it was subsequently resumed in 1909 and the line was extended northward through to junctions with the Michipicoten Harbour branch (at Hawk Junction), the Canadian Pacific Railway (at Franz) and the Canadian Northern Railway (at Oba). In 1914, it finally reached Hearst, a town north of Sault Ste. Marie that was a divisional point on the National Transcontinental Railway. By that point, Clergue's dream of building a railway to Hudson Bay or James Bay had long been abandoned, and the railway's northern terminus remained at Hearst, around from James Bay. However, the phrase "and Hudson Bay" was not removed from the railway's name until June 30, 1965.