No offense taken and everyone else has already said nearly everything that I would have. Companies generally become profitable by delivering products that their customers want to buy. Both Old Town and Chestnut were clearly successful but the markets they served were very different. Tariffs were also a factor as described at
http://www.wcha.org/forums/index.php?threads/14830/ in some detail. Small boats tend to be very regional. There are significant differences between the Adirondack, Rangeley, and Grand Lake Stream area boats which all reflect the unique characteristics of each geography.
You may think that Old Town got "its basic hull designs from Charles River canoes and let it go at that" but the chart at
http://www.wcha.org/catalogs/old-town/models.html shows that the internally developed H. W. models with round bottoms were more popular than the Charles River style canoes with flat bottoms. Their working canoe was the I. F. or Guide model. The 1901 catalog page at
http://www.wcha.org/forums/index.php?attachments/25088/ confirms that this was based on the canoes of the local Penobscot Indians. The information at
http://www.wcha.org/catalogs/penobscot/ has more design details from a very old Penobscot canoe. See
http://www.wcha.org/catalogs/old-town/hull-x-s.gif for some cross sections of the various Old Town designs although the differences are very subtle.
The interest in wilderness canoe paddling within the United States during 1970s became large enough that Old Town introduced their Tripper model. The greatest demand at that time was for plastic canoes and this became one of their most successful models ever.
Old Town did not completely ignore the working boat market. Their Carleton catalogs included a batteau until 1922. If Old Town had ever found a significant demand in the United States for big and deep canoes like the Prospector, Cruiser, Ogilvy, or freighter styles in the first half of the 1900s then I expect that they would have offered them.
Benson