1. Railway, Pacific Scandal, Macdonald and Mackenzie
The national Dream

2. 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.

3. 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.

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

5. 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.

6. 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?

7. #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

8. #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

9. 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

10. 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.

11. 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

12. 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.

13. 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.

14. 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

15. 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.

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

17. 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

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