The CPR

1. The CPR

2. The CPR & BC • In 1871, British Columbia entered Confederation with the promise of a rail link to the rest of Canada • However, there was no clear idea of the route the railway would take across the West, how much it would cost, or who was going to pay for it.

3. Who Showed the Money • Sir Hugh Allan • Canadian who had made his fortune in shipping, manufacturing, and railways in eastern Canada • Allan formed the Canadian Pacific Railway Company (CPR) in 1871. • However, while its name would suggest Canadian ownership, the CPR was actually controlled by Americans

4. John A. Macdonald & The Pacific Scandal • A national railway was always Macdonald’s dream… • In 1872 Macdonald called a general election • Allan was guaranteed railway contract if re-elected • In 1873, American involvement in Allan’s Canadian Pacific Railway were made public.. • Resulted in Macdonald’s resignation • Connection between big business and politics

5. Mackenzie & BC • In 1873 Alexander Mackenzie led the Liberals to power during a major economic depression • American companies dumped low priced goods on the Canadian market. • Canadian manufacturers struggled to sell their own goods and still make a profit. • Disinterested in building the railway but was bound by Macdonald’s promise. • BC threatened to secede from Confederation if it was not completed

6. Enter Macdonald’s National Policy • Macdonald managed to gain office again in 1878. • The National Policy had three main parts: a system of protective tariffs, increased immigration, and the CPR • New investors: George Stephen, president of the Bank of Montreal, Donald Smith of the Hudson’s Bay Company, and James J. Hill • CPR Syndicate • $25 million in cash, a land grant of 25 million acres, and a monopoly west of Lake Superior for 20 years. In return, the new CPR Syndicate was to complete the railway within 10 years.

7. Completing the CPR • Money was constantly a problem • the government paid only when each section of the line was completed, so in the meantime the CPR could not generate any revenue. • The investors used their personal fortunes • Another bill had to be passed to give the CPR another $22.5 million • William Van Horne was put in charge and brought about huge change

9. Results of the Money Troubles Cheap labour came in the form of thousands of Chinese workers who faced poor wages, terrible living conditions, and continual discrimination • Temporary wooden trestles and bridges to carry the line over difficult terrain

11. The Last Spike • The Northwest Uprising allowed troops to be transported quickly however the CPR was unfinished • Troops were having to cross the gaps on foot • Seeing the benefits of the CPR the naysayers quickly jumped on board and parliament approved yet another grant • The CPR was completed in November 1885—five years ahead of schedule.

12. The Final Route

13. Your Task • Read 240 – 241 in Revisited and answer the following questions: • Look at the three components of the National Policy: protective tariffs, increased immigration, and the CPR. In a chart, summarize the social, political, and economic impact each of these had on the development of Canada.