One cannot leave railway legislation without referring to what
is known as the Canadian Pacific scandals, though Sir Charles
Tupper in his “Reminiscences of Sixty Years” writes of it as the
“Canadian Pacific Slanders,” because two of the principal actors
were Montrealers and the place, Montreal. The bare facts are: Two
companies, one of which was under the control of Sir Hugh Allan
of Montreal, had competed for the construction of the railroad,
the bill for which the Government, through Cartier, had passed in
parliament. Owing to disputes an effort was made to amalgamate
the companies but without avail, so that Sir Hugh formed a new
company under the title of the Canadian Pacific Railway Company.
This Company obtained a charter on February 19, 1873, to build
the railway, and it was in connection with the granting of this
charter that in the following April a Mr. L.A. Huntingdon charged
the government with making a corrupt bargain with Sir Hugh Allan;
in other words, that the Montreal promoter and his company had
advanced large sums of money to the Conservative fund to secure
the returns of candidates favourable to their obtaining the
charter. The receiving of the money was neither contradicted
by the government nor the contractors, and on behalf of the
government it was offered as an extenuating circumstance that it
was only in accordance with the “invariable custom,” and before
a Royal Commission the ministers denied any corrupt bargain
having been made. But the whole country was up in arms, and Sir
John Macdonald, seeing inevitable defeat for his government,
placed his resignation in the hands of the Governor-General.
In the elections which followed, the new government, under the
leadership of the new premier, the Hon. Alexander McKenzie, was
sustained by a large majority.
When in 1870 the Fenians for the second time under “General”
O’Neill made a raid into Canada, crossing the border at Trout
Lake in the Eastern Townships, a flutter was caused at Montreal,
but the “general” was soon routed by a small contingent made up
largely by volunteers from Montreal.
Owing to a depression in trade, which set in about the fall of
1873 and which gradually grew worse in centres like Montreal
as the years rolled by, Sir John A. Macdonald’s appeal to the
country that it should protect its own industries by placing
heavy duties against goods imported from other countries, met
with success and he was returned at the elections of 1878 by a
large majority. This became known as the “National Policy” and
though immediate prosperity was the outcome, there is no doubt
that the same policy has made possible the formation of trusts,
which in this country go under the name of mergers.
Public-domain text, read in full here on John Shaqi.
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