The Globe story I linked above touches on it. But, basically, as a city, Calgary had a history of failed rodeos prior to 1912 - at best, they were a sideshow to the Industrial Exhibition - because the population thought it was above that. The Stampede is a more realistic presentation of "cowboy culture" than the old wild west shows Guy Weadick originally worked, but they are just as rooted in mythology as those shows were. The mythos of the Stampede has very little connection to the area's ranching tradition of the time.
The Stampede is totally an invented tradition, but after 100 years, is very much a legitimate tradition as well. And it is a cultural event we should be proud of.
Max Foran's Icon, Brand, Myth is also a decent read on the Stampede's history. It is available online in PDF format too.
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