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Canadian Pacific Railway and the Pacific Scandal
Transcript of Canadian Pacific Railway and the Pacific Scandal
Took him two years to find new investors for railway. He found men he was looking for in George Stephen, Donald Smith, and James J. Hill. British Columbia entered confederation in 1871 by promising a rail link to the rest of Canada within 10 yrs. 1880 Macdonald offered the group $25million, land grant of 25 acres and a monopoly west of lake superior for 20 years. It was Sir John A. Macdonald's dream to build a railway from sea to sea In return, CPR syndicate was to complete railway within 10 years. The Canadian government didn't have the funds to build a railway
Macdonald offered incentives to wealthy business and railway owners who would want to finance the project. Planning the railway Jay Cooke (American) thought that this could expand the American Northern Pacific Railway.
Sir Hugh Allan (who had a fortune in shipping and manufacturing in the East) joined up with Jay Cooke, but didn't tell the Canadian gov't. this
If the gov't. knew that the Americans controlled the Canadian Railway, the project would stop Northern prairies was seen as good farmland, many land speculators had moved into the area, buying land that they hoped would be near the rail line. Syndicate wanted complete control of railway and land so they moved rail line 300km south. As the CPR being built across southern prairies, route through BC was still being studied. Construction began spring 1881, did not go as well. By end of year only 230km was built. At this rate line would not be completed in promised 10 years. Syndicate needed a new general manager, chose William Van Horne. John A. MacDonald resigned in 1873 and Alexander Mackenzie took over
He didn't like the railway and thought that it was a waste of time and money
He was bound by his promise though, to build it, but he paid little attention to it. BC threatened to secede from confederation if the railway was not built No one knew the best route for the railway as building it would be difficult, especially through the Rockies
At that time, Victoria and New Westminster were the only major settlements. Standford Flemming was the surveyor of the Dominion and he sent out many surveyors to BC who brought back important info which helped make the first accurate map of BC
Many disagreements and debated broke out on to which route should be the chosen one
This debate was known as "The Battle of the Routes" Flemming favoured a route that ran near New Westminster which appealed to the mainland politicans in BC
Marcus Smith, Flemmings deputy, presented a route that ran across a bridge to Vancouver Island which all the politicians in Victoria liked
Others thought that a route with a port in Northern BC was better because ot was closer to Asia
Despite these debates in 1870, no official decision was made about this part of the route From 1873 to 1878, Sir John A. Macdonald was out of the office and often thought of the railway
He knew that the survival of Canada was heavily dependent on a transcontinental railway, but to convince all Canadians he needed a political platform
He developed the National Policy in 1876, which in 1878 became the Conservative election platform basis
Many people agreed with Macdonald and he returned with his party to office with a large majority The National Policy remained a central part of Canadian gov't. much onto the 20th century.
It had 3 main parts-protective tariffs, increased immigration and the CPR Macdonald believed that the National Policy was a formula for successful nation building The National Policy The Railway Survey Bibliography
Waite, P.B. "Pacific Scandal." -The Canadian Encyclopedia. http://www.thecanadianencyclopedia.com/articles/pacific-scandal,
(29 Apr. 2013.) "Pacific Scandal." Wikipedia. Wikimedia Foundation,
(29 Apr. 2013.) "Canadian Confederation." Archives Canada http://www.collectionscanada.gc.ca/confederation/023001-3010.40-e.html (29 Apr. 2013) "Our Past, Present & Future ." Canadian Pacific.
(29 Apr. 2013.) Cranny, Michael. "Changes Come to the Prairies." Horizons: Canada's Emerging Identity. 2nd ed. Don Mills : Pearson Education Canada, 2009. Building a Nation The railway was formed to unite our nation coast to coast .Also a deal was made that New Brunswick , & Nova Scotia were guaranteed a railway to Quebec & Ontario. Key People of the Canadian Pacific William Van Horne Worked for local railway, at age 21 there wasn't a railway job he couldn't do
Gained a reputation for taking a financially troubled railway company and make it profitable
This reputation led him to getting hired by the CPR Syndicate
Ran the CPR as vice president, president, and chairman of the board from 1885-1910 He was the key to the successful completion of the CPR
He was able to lay 800 km of railway in 1882, and 800 km more the following year
With Horne's help, they could finish the the railway on time -- if the money held out Money Trouble Problem: Gov't only payed when each section was completed
End of 1883, company ran out of money, and the most costly section was still to be built
George Stephen & Donald Smith provided funds, but it wasn't enough
Early 1884, the gov't passed a bill to provide another $22.5 million
Van Horne cut expenses
End of 1884, the CPR was almost out of money Workers Between 1882-1885, more than 35,000 workers were employed; many were Chinese
Lived in overcrowded, filthy bunkhouses: no plumbing
Dull and unhealthy diets with little fresh food. ate porridge, beans, and bacon
Little medical care, anyone too injured to work was fired
No one paid when weather conditions put a halt on work The CPR and the Northwest Uprising Uprising broke out in 1885
Gov't needed to transport troops quickly to the Northwest; fastest way was by railway
There was still some gaps in the line which troops had to cross on foot
They crossed 18km across the frozen Lake Superior at one point
Van Horne organized the troop movement with efficiency
First troop arrived in Winnipeg in just 5 days, and entire force was on the Prairies in 10 days
Gov't looked through problems quickly
Canadians now saw that the high cost to built the CPR were necessary
CPR was completed in November 1885 -- 5 years ahead of schedule! By: Shelby, Karyssa,
Suesha, Sukhi, Pavneet Pacific Scandal was result of solification by Prime Minister, John A. Macdonald, George-Etienne Cartier, and Hector Langevin. Sir Hugh Allan used American money to bribe the government, this proved difficulty and led to blackmail. Liberals broke scandal on Apr.2/1873; a spread of damaging letters and telegrams appeared in Liberal newspapers in July. The commons met on 0ct.23/1873, with the threat of new P.E.I votes against it, and its supporters in disarray, the Macdonald government was obliged to resign. Sir Hugh Allan's company never did get started and a new agreement had to wait until 1880. Pacific Scandal The railway was completed on Nov 7 1885 which helped canadian transportation 10 times more as now it would not be people trading goods on foot . William Mackenzie Jay Cooke John A. Macdonald Sir Hugh Allan Sandford Flemming William van Horne