Railway, Pacific Scandal, Macdonald and Mackenzie The national Dream

What was the national dream? John A. Macdonald had a dream to create a single Dominion of Canada stretching from sea to sea connected by the CPR.

American threat still present Macdonald worried about Americans taking over the Canadian prairies This railroad had to be built quickly to halt American expansionism and risk of assimilation of Canada by the US.

British Columbia entered confederation 1871 -Under the promise of a rail line linking BC to the rest of Canada within 10 years

What was blocking the dream? Macdonald knew that the Canadian government did not have the resources to complete such a massive project few investors rich enough to finance such a huge project.

Fixing the money problem Macdonald decided that he would have to offer incentives to wealthy business men and railway owners These men alone could finance the construction of the railway But WHO?

#1 Jay Cooke American industrialist Jay Cooke Saw Canada as a natural market for American goods. Saw Canada as a natural extension of the American rail network Saw the value in Canada’s natural resources #1 Jay Cooke

#2 Sir Hugh Allan Canadian industrialist Sir Hugh Allan made his fortune in shipping, manufacturing, and in railway building in Eastern Canada. Allan decided that it made economic sense to build a rail link to the West #2 Sir Hugh Allan

Canadian Pacific Railway Company 1871 Allan formed the CPR company Seemed to be Canadian but actually controlled by American Cooke American control kept secret for Canadian government would end project

Allan’s Railway Plan Allan’s railway supposed to be transcontinental, but... Allan and his American backers didn’t want to build a transcontinental railway they would rather build a branch line of the American Northern Pacific Railway to Canada’s Northern Pacific.

Pacific Scandal 1872 In 1872, Macdonald called the first general election since Confederation. But uh oh- the Conservatives realized that they did not have enough money for a campaign

Scandalous- Causes ! Macdonald Bribed Allan with the transcontinental contract - asked Minister of Defense George Étienne Cartier to get Hugh Allan to finance the election in return for a guaranteed railway contract.

Contracts for sale! - causes continued Cartier wrote two memos one promising the CPR contract to Allan, the other listing the contributions Allan was to make to the Conservative Party. This memo indicated that Macdonald was on Allan’s payroll.

Busted! - result of scandal Macdonald won 1872 election- BUT: 1873 incriminating memos made public It appeared as if Macdonald was employed by Allan and his American backers Macdonald seen as an American puppet backstabbing Canada

Results Royal Commission investigated but tried to rule in favor of PM Opposition swayed the public against Macdonald This led to the resignation of Macdonald’s government in 1873.

Alexander Mackenzie Prime Minister under Liberal Party -though railroad a waste of time and money Became PM just as economic depression hit

Mackenzie forced to build railroad Bound by promise to BC to build railroad Threatened to secede Mackenzie backed down and continues to survey railroad Mackenzie forced to build railroad

Sandford Fleming –surveyor for Canada Mapped out possible routes for the CPR across the Canadian west. No decision made during the 1870s