SCANDAL DELAYS THE RAILWAY HOW DID RAILWAYS CONTRIBUTE Suppose you wanted to build a road so your community would have better access to services. This would require the community’s money. To build it, would you ask a friend who owned a construction company but TO UNITY AND who charged high prices? This would help your friend’s company prosper, but it would cost more of the community’s money. Or would you hold a EXPANSION? competition to see who would offer the best road design at the best price? How do you The Canadian government’s selection of the company who would build think a similar political British Columbia’s promised transcontinental railway resulted in Canada’s scandal would be first political scandal. handled today? In 1872, there was a federal election. Macdonald and his If you wanted to travel across Canada today, you have many government were losing popularity. To help his party win options, such as travel by car, railway, or plane. In 1870, if “The great majority of the the election, Macdonald asked for campaign donations. “I must have another you wanted to travel from Toronto to Manitoba, the journey people of the Island, it is pretty evident, Sir Hugh Allan, a Canadian entrepreneur and railway ten thousand; will be the last time of would include multiple boats over lakes and rivers, and have accepted Confederation as a builder, donated over $350 000 to Macdonald’s campaign. calling; do not fail me; answer today.” wagons on rough roads. The idea of building railways was a necessity.… when the day arrived Macdonald won the election. In 1873, Allan’s company, new way to help join the country together. — Prime Minister Sir John A. Macdonald that the union was a fait accompli Canada Pacific Company, won the contract to build the [accomplished fact], they had not a transcontinental railway. THE IMPORTANCE OF RAILWAYS cheer to give.” FIGURE 3.19 This telegram by Macdonald was Then, in April 1873, a rival politician announced that he published in the Globe newspaper. Analyze: What As you read in Chapter 2, Prince Edward Island had initially — Patriot newspaper had discovered evidence of Macdonald taking a bribe from tone do you read in this message? rejected Confederation in 1867. In 1871, Prince Edward Allan. In return for the campaign money, Island began to build its own railway. When the plan FIGURE 3.17 This is an excerpt from Macdonald told Allan that his company went over budget, Prince Edward Island was left with two an article in the July 3, 1873, edition would get the contract to build the options: join Confederation to pay off the debt or increase taxes to pay for of Patriot, a Prince Edward Island transcontinental railway. Read Figure 3.19, the railway. Read Figure 3.17, an excerpt from a local newspaper published newspaper. Analyze: What does the paper mean by “not a cheer a telegram sent by Macdonald to Allan’s two days after Prince Edward Island eventually joined Confederation in to give”? lawyer during the 1872 election. How 1873. What does this source reveal about acceptance and attitudes toward does this telegram implicate Macdonald Confederation in Prince Edward Island? in the scandal? What consequences Also in 1871, British Columbia negotiated to enter into Confederation with could this scandal have had on the progress Canada. One of the conditions of British Columbia joining Confederation was transcontinental railway a railway that goes from of the railway? that Canada must build a transcontinental railway to link the province with one side of a continent to Newspapers covered the story, which Ontario. The government promised that the railway would be completed the other became known as the Pacific Scandal. within 10 years. Look at Examine the political cartoon in Figure 3.20. Figure 3.18. It shows a What information about the Pacific Scandal modern-day Canadian does it provide? Pacific Railway with a train Macdonald resigned as prime minister travelling through the Rocky in November 1873. The opposing Liberal Mountains in Alberta. How Party was under the leadership of Alexander would a railway have helped Mackenzie, who won the election after Canada to expand in the Macdonald’s resignation. late 1800s? FIGURE 3.18 This modern-day photo shows a train travelling FIGURE 3.20 This political cartoon drawn by on the Canadian Pacific Railway. John Wilson Bengough was published in 1873. Analyze: How might people travel John A. Macdonald is depicted with “send me another through this area today if the $10 000” written on his hand. Analyze: What do you railway did not exist? think the woman and the beaver represent? 86 UNIT 1: Creating Canada: 1850–1890 NEL NEL CHAPTER 3: The Expansion of Canada: 1869–1884 87 MACDONALD’S NATIONAL POLICY THE CANADIAN PACIFIC RAILWAY After winning the election in 1873, Mackenzie’s new government faced The newly elected government’s national policy made the transcontinental many challenges. Canada’s economy was suffering. Unemployment was railway a priority again. Due to the Pacific Scandal, the government needed high, businesses failed, and people were moving to the United States to find to find a new company to build the railway. In 1881, the government hired work. The poor economy meant that the Canadian government could not a new private company called the Canadian Pacific Railway Company for afford to build the transcontinental railway for British Columbia as fast as it the huge task. The transcontinental railway then became known as the had promised. Does the Canadian Pacific Railway. The contract was very generous. The railway In September 1878, it was time for another federal election, and construction of the company was given $25 million and an enormous amount of land along railway indicate Macdonald was back. He was elected prime minister again, despite progress or decline the railway’s route that it could sell to future settlers. When the route was the Pacific Scandal that had temporarily ruined his reputation. Many for some groups or being surveyed, geologist John Macoun discovered that the region between Canadians supported his political and economic vision for Canada’s future, individuals? Winnipeg and Edmonton, known as Palliser’s Triangle, was fertile and could national policy Macdonald’s which Macdonald called the national policy. Examine Figure 3.21, which support settlement. This meant that the railway could be built farther south 1878 political and economic shows the policy’s three main goals. Macdonald believed that this policy than originally planned. What other reasons might the government have vision to develop Canada would unite Canada and would protect the economy and land from the had for wanting the railway to be built farther south? United States. Read the quote in Figure 3.22. Do you think the national Examine the map in Figure 3.23. It shows the original planned route policy promoted a united nation? of the Canadian Pacific Railway and the final, chosen route. What do you notice about the route of the railway and the border of the United States? FIGURE 3.21 This diagram shows Three Goals of the National Policy the three goals of Macdonald’s The Canadian Pacific Railway Route, 1885 national policy. A tariff is a tax paid on goods imported from another Complete the Railway Encourage Immigration country. Analyze: What groups • stimulate the economy • attract settlers to the Northwest would benefit from the national • establish physical presence • create a larger market for policy? Who would not benefit? in the Northwest Canada’s products • transport goods east and west • provide workers for factories between provinces and primary industries (for example, mining and forestry) North-West N Territories BRITISH Hudson COLUMBIA Bay Implement Protective Tariffs • make imported goods more expensive • help Canadian manufacturers Edmonton sell more of their products and hire more people Port Moody Calgary MANITOBA • build a market in the East Craigellachie for natural resources in the West PACIFIC Victoria OCEAN C ONTARIO E Regina B É U Q Winnipeg Montréal “We desire to have the trade kept on our own side—that Ottawa not one of the trains that passes over the [Canadian Pacific Railway] planned Canadian Palliser’s Triangle Pacific Railway route will run into the United States if we can help it, but may, instead, pass British colony UNITED STATES Toronto final Canadian Pacific Canadian province OF AMERICA through our own country, that we may build up Montreal, Quebec, Railway route Canadian territory Toronto, Halifax and Saint John by means of one great Canadian line, 0 240 km FIGURE 3.22 This quote is from a carrying as much traffic as possible by the course of trade through our speech Macdonald made in 1881 to own country.” the House of Commons. Analyze: FIGURE 3.23 This map shows the original route of the Canadian Pacific Railway and the final How does this quote support — Prime Minister Sir John A. Macdonald route. Analyze: What impact could the original planned route have had on the development Macdonald’s national policy? of Canada? 88 UNIT 1: Creating Canada: 1850–1890 NEL NEL CHAPTER 3: The Expansion of Canada: 1869–1884 89 History 8 SB 0-17-671035-3 FN u01-c03-f02-hist8sb CO Suzanne Peden History 8 SB 0-17-671035-3 Pass 1st pass FN u01-c03-f03-hist8sb Approved CO Crowle Art Group Not Approved Pass 4th pass Approved Not Approved BUILDING THE CANADIAN PACIFIC RAILWAY Construction on the Canadian Pacific Railway began in 1881. “Next summer, or at latest The route of the railway travelled through the Northwest, next fall, the railway will be close to where many Aboriginal peoples lived.