CANADIAN PACIFIC CANADIAN PACIFIC RAILWAYRAILWAY

The National DreamThe National Dream

► John A. MacDonald wanted to build a John A. MacDonald wanted to build a Canadian nation from coast to coastCanadian nation from coast to coast

►He felt that the only way to realize this He felt that the only way to realize this dream was to build a transportation dream was to build a transportation and communication link to join British and communication link to join British North AmericaNorth America

►Feared the west would be swallowed Feared the west would be swallowed up by the USA – had to be built quicklyup by the USA – had to be built quickly

The RailwayThe Railway

►BC had joined Confederation in 1871 BC had joined Confederation in 1871 with a promise of the construction of with a promise of the construction of the CPR within 10 yearsthe CPR within 10 years

►11stst task task Find financiers (people who Find financiers (people who back a project with money)back a project with money)

►Wanted people to underwrite (finance) Wanted people to underwrite (finance) the project in return for financial the project in return for financial benefits from the governmentbenefits from the government

►MacDonald wanted to find Canadian MacDonald wanted to find Canadian financiers – American support would financiers – American support would increase the chance of annexationincrease the chance of annexation

Sir Hugh AllanSir Hugh Allan

►Only major industrialist in Canada who Only major industrialist in Canada who had enough money to finance the had enough money to finance the railwayrailway

►Created the Canadian Pacific Railway Created the Canadian Pacific Railway Company Company a company that seemed a company that seemed CanadianCanadian

►was really controlled by Northern Pacific was really controlled by Northern Pacific Railway (an American company run by Railway (an American company run by Jay Cook)Jay Cook)

►1872 – MacDonald called a general 1872 – MacDonald called a general election (first since Confederation)election (first since Confederation)

►Conservatives realized that they did Conservatives realized that they did not have enough money to woo voters not have enough money to woo voters successfullysuccessfully

►George-Etienne Cartier wrote two George-Etienne Cartier wrote two memos to Allan regarding financesmemos to Allan regarding finances

-one promised Allan the CPR contract-one promised Allan the CPR contract

-the second listed the contributions -the second listed the contributions that Allan was to make to the that Allan was to make to the Conservative PartyConservative Party

The Pacific ScandalThe Pacific Scandal

►Details of the bribes are leaked to the Details of the bribes are leaked to the presspress

►Public is outraged at MacDonald and the Public is outraged at MacDonald and the ConservativesConservatives

►Conservatives admitted that Sir Hugh Conservatives admitted that Sir Hugh Allan had given their party $350,000 Allan had given their party $350,000 during the election campaign of 1872during the election campaign of 1872

►Forced to resign as government in 1873Forced to resign as government in 1873►Alexander Mackenzie becomes Prime Alexander Mackenzie becomes Prime

Minister (Liberal Party)Minister (Liberal Party)

►There was no railway construction during There was no railway construction during this administrationthis administration

►However, Canadian Pacific Survey However, Canadian Pacific Survey continued under the direction of Sandford continued under the direction of Sandford FlemingFleming

►Survey Survey investigated the routes the investigated the routes the railway could takerailway could take

The National PolicyThe National Policy

►During the election of 1878, MacDonald During the election of 1878, MacDonald advocated the National Policy which advocated the National Policy which included:included:- high tariffs - high tariffs - rapid completion of the Pacific railway- rapid completion of the Pacific railway- encouragement of growth of population - encouragement of growth of population & settlement of the west through & settlement of the west through immigrationimmigration

►MacDonald & the Conservatives were MacDonald & the Conservatives were returned to powerreturned to power

TariffsTariffs

Tax on imported American goodsTax on imported American goods

►Protects Canadian manufacturingProtects Canadian manufacturing►Make American goods more expensive Make American goods more expensive

than Canadian produced goodsthan Canadian produced goods►Encourages people to buy Canadian Encourages people to buy Canadian

productsproducts

Western SettlementWestern Settlement

►Canadian government wanted to Canadian government wanted to encourage settlement of the west by encourage settlement of the west by farmersfarmers

►These farmers would produce grain These farmers would produce grain crops, mostly for exportcrops, mostly for export

The CPRThe CPR

►The West could not develop as a The West could not develop as a centre for agricultural export until centre for agricultural export until goods could be transported in and out goods could be transported in and out of the regionof the region

►The CPR still needed private investors The CPR still needed private investors to fund the construction of the railwayto fund the construction of the railway

MacDonald approached:MacDonald approached:

►George Stephen of the Bank of George Stephen of the Bank of MontrealMontreal

►Donald Smith, of the Hudson’s Bay Co.Donald Smith, of the Hudson’s Bay Co.

► James J. Hill, an expatriate Canadian James J. Hill, an expatriate Canadian investing in US railwaysinvesting in US railways

The OfferThe Offer

►Upon completion of the railway line, Upon completion of the railway line, they would receive:they would receive:

- $25 million$25 million- Land grant of 25 million acresLand grant of 25 million acres- A monopoly on all rail traffic west of A monopoly on all rail traffic west of

Lake Superior for 20 yearsLake Superior for 20 years- An exemption from tax on all landsAn exemption from tax on all lands

►The CPR Syndicate (Stephen, Hill & The CPR Syndicate (Stephen, Hill & Smith) promised to complete the Smith) promised to complete the transcontinental railway within ten transcontinental railway within ten yearsyears

►The contract was approved by The contract was approved by Parliament on February 1Parliament on February 1stst, 1881, 1881

ProblemsProblems

►The CPR Syndicate changed the route of The CPR Syndicate changed the route of the railwaythe railway

► Information collected by the Canadian Information collected by the Canadian Pacific Survey was irrelevantPacific Survey was irrelevant

►Unclear how they would pass through the Unclear how they would pass through the Rocky Mountains into BCRocky Mountains into BC

►Slow start to constructionSlow start to construction►Only 230 km of track had been laid in Only 230 km of track had been laid in

18811881

William Van Horne & the CPRWilliam Van Horne & the CPR

►General manager of a US railwayGeneral manager of a US railway► Intelligent & dedicatedIntelligent & dedicated►He introduced a high level of efficiency He introduced a high level of efficiency

in to the railway companyin to the railway company►1882 & 1883 – over 1600km of track 1882 & 1883 – over 1600km of track

were laidwere laid►On track to complete the railway on On track to complete the railway on

schedule, as long as there were fundsschedule, as long as there were funds

►CPR built by CPR built by hand & hand & 1000s of 1000s of people were people were needed to do needed to do the jobthe job

►More than More than 35,000 35,000 workers were workers were involvedinvolved

►Working conditions were terrible – dust Working conditions were terrible – dust from the dynamite blasts, insects, from the dynamite blasts, insects, over-crowding and filthy in the bunk over-crowding and filthy in the bunk houses, leaky roofs, no plumbing, poor houses, leaky roofs, no plumbing, poor dietdiet

►Dangerous job & no medical facilitiesDangerous job & no medical facilities►Those who were injured on the job Those who were injured on the job

were firedwere fired

Chinese WorkersChinese Workers► Andrew Onderdonk – Andrew Onderdonk –

contractor in charge of contractor in charge of building the BC stretch of building the BC stretch of railroadrailroad

► To keep costs down he To keep costs down he brought in 1000s of Chinese brought in 1000s of Chinese workersworkers

►Only men came – left families Only men came – left families in Chinain China

►Most of these workers had Most of these workers had one major goal – save enough one major goal – save enough money to return to China and money to return to China and buy landbuy land

►They were very poorly treatedThey were very poorly treated►Were paid less than half the wage of Were paid less than half the wage of

white workerswhite workers►Expenses were taken from pay and Expenses were taken from pay and

they were left with very little moneythey were left with very little money►Given the most dangerous jobsGiven the most dangerous jobs►After the construction of the CPR had After the construction of the CPR had

finished – most Chinese had no choice finished – most Chinese had no choice but to stay in Canada, even though but to stay in Canada, even though they did not feel welcomethey did not feel welcome

CPR “Saves the Nation”CPR “Saves the Nation”

►1885 – Northwest Rebellion broke out 1885 – Northwest Rebellion broke out the CPR allowed the government to the CPR allowed the government to react quicklyreact quickly

►This event showed many Canadians This event showed many Canadians why the CPR was necessarywhy the CPR was necessary

►CPR was able to ask the government for CPR was able to ask the government for more money to help complete the more money to help complete the railwayrailway

►Completed 1885 – 5 years ahead of Completed 1885 – 5 years ahead of scheduleschedule