have you tried the Drouin Collection through ancestry to see if that can be of assistance.
The library in Montreal may have access to city directories and be able to determine when he stops showing on the directories. That could give you a year to search for an obituary.
Do you know the name of the first child and whether it was male or female.
Do you have his complete military file as it could contain information such as his death. Depending on his injuries, there could be followup records in the file. The files are availalbe through Library and Archives Canada and will contain his Next of Kin, pay allotments, transfer within battalions, injuries, etc. They can have as little as 25 pages and sometimes into the hundreds. If you choose to purchase the file, you do have to buy the entire file as partial files are not available.
www.collectionscanada.gc.ca/databases/index-e.htmlunder Soldiers of the First World War
James Ferguson
Regimental # 418443
You need the information from the Attestation Papers to order the military file.
Have you looked for museums or socieites about the Black Watch or 42nd Battalion. They may have some info that you could use. The Black Watch took part in most of the famous battles of WW1 and there is a lot of interesting info about them on line.
I did check the Canadian Great War Project and his medal is listed but not a date of death.
I checked the Legion Last Post but the years don't go back far enough.
Also, he was a reservist so you could look at that angle to try to find some info.
The grand-daughter is L. Clarkson. For possible living relatives just use the first initial. I picked up on the fact that she never knew her grandfather so he must have died in the 40's or 50's. I am just assuming that she is probably in her 60's. My grandfather was born in 1890 and served in WW1, his children born in the early 20's and his grandchildren born between 1945-1960.
You obviously have some information so can you post where you found it so that we don't duplicate your efforts.
Good luck, Val