The Canadian Pacific Railway (1881 - 1885)
The Conservatives, still lead by John A. Macdonald, were re-elected in 1879 for economic reasons that we shall discuss in the next lecture. They came to an agreement in 1880 with a Montreal based group to build a transcontinental railway from Montreal to Vancouver by 1891 in exchange for the following subsidies.
1. 25 million acres ‘fit for settlement’.
The CPR ‘earned’ every even section for 24 miles on either side of the railway track as the track was constructed for a potential total of 25 million acres or about 1/5 of arable Prairie land. This procedure was similar to U.S. grants to railways except the 24 miles was greater than U.S. distances. There was, however, a uniquely Canadian provision. If the CPR found any of this land not ‘fit for settlement’, the CPR had the option to exchange this earned land for an equal amount of Dominion land elsewhere. We shall see that the ‘fit for settlement’ clause probably hindered rather than stimulated Prairie settlement.
(This land grant system was used for subsequent railways as well for a total grant of 32 million acres between 1881 and 1894, when the policy was terminated.)
2. A Monopoly
The Dominion gave the CPR a monopoly on all railways between the CPR tracks and the U.S. border.
3. Freight rates could not be regulated until profits were 10% on the capital spent on construction.
4. $25 million in money
5. The Dominion’s Western Railway lines
The Federal government gave all its railway lines upon completion to the CPR.
Estimates suggest that the value of these railway lines was about $35 million,
6. Tax Concessions
The CPR was exempt from taxes on
i) Sales of land for a period of 20 years
ii) Imported materials used in the original construction
iii) Railway capital and property in perpetuity (This was eventually repealed)
7. The CPR was allowed to take any construction material from crown lands without payment.
Were these subsidies necessary or excessive for construction of the CPR?
These subsidies were given under the assumption that they were necessary to induce private investment in the CPR but there has been considerable debate about their necessity subsequently. The CPR was built in four (1881 – 1885) not ten years and John Dales argued that subsidies were not necessary because the CPR paid back a $35 million loan from the Federal government by 1886 and averaged a profit of 3% on capital between 1885 and 1895.
During the construction of the Canadian Pacific Railway in 1881-1885, the discrimination against Chinese workers demonstrates social injustice.
To begin Sprague argues that the Canadian Government disingenuously mismanaged Metis land organization. Sprague states that evidence of this can be seen in the Canadian government not allowing the Lieutenant Governor Adams G. Archibald to make changes to Section 31 and 32 of the Manitoba Act. Archibald proposed the government grant outlined in Section 31 should allocate each person of Aboriginal ancestry an allotment of “140 acres” (pg.75) of land. Archibald also suggested that the location of these allotments be in close proximity so as to “not disperse families throughout the province” (Pg. 75). Lastly Archibald proposed a suggestion in carrying out Section 32 which insured that land owned was not jeopardized during the process of confederacy. He recommended that Manitoba be recognized as an independent province such that affairs including land ownership would be dealt with on a provincial level. Therefore as Sprague argues Archibald’s words were not taken into consideration by both the governments of John A. Macdonald and Alexa...
Macdonald instituted the building of the Canadian Pacific Railway. This railway became a huge part of many aspects of people’s lives during the 1800’s and beyond. Although there was a lot controversy regarding the it, the railway improved many issue that Canada was facing at the time. The railway brought soldiers West in hopes of controlling the North West rebellion. By doing this so efficiently, the government better understood the need for it and funded the final part of the building expenses. A few months later the Canadian Pacific Railway was finished thanks to the dream of Sir John A. Macdonald. Because of him and his idea for a transcontinental railway, Canada was improved economically though an increase in trade and the military became more effective due to the new mode of transportation. Thus, Sir John A. Macdonald significantly changed and improved Canadian history.
The railroads were the first to have a corporate organization, labor relations, and government regulation. The necessary structure of the railroad business brought order to the untamed west. Before the railroad, both time and space were estimated. The position of the sun produced an approximate time. For example, “The difference in time between Idaho City and New York is about two hours and forty minutes; between San Francisco and this place about thirty-five minutes” (Schwantes 3). Since trains shared a single track, timekeeping became critical to prevent train collisions. To keep a standard time, the railroad introduced time zones on November 18, 1883 (Schwantes 3). The distance was also estimated before land surveyors, paid by the railroad, came through to measure and draw maps. Keeping a standard width to within an inch between tracks was also important to keep the train from de-railing. However, the railroads began to collude to keep prices high. To combat this collusion, the government formed the Interstate Commerce Commission in 1887, which was America’s first regulatory agency (Binding
Canada experienced the revolution of changing politics and new ideologies, it was a necessary wave
Charles-Émile Trudeau was a Conservative, and several of his friends belonged to the Liberal Party. When his father’s friends were visiting at their Lac Tremblant cottage, Pierre was exposed to political debates and rivalries at an early age. He found politics interesting, but could not understand much of it. His father invested in successful several companies at the beginning of the...
As shown in the photo above, on April 28th, 1869, the final ten miles of track were laid in an astonishing twelve hours. On May 10th, 1869, The Central Pacific Railroad met and connected with the Union Pacific Railroad in Promontory, Utah to complete the first transcontinental railroad after building 1,800 miles of new track.
Railroads first appeared around the 1830’s, and helped the ideas of Manifest Destiny and Westward expansion; however, these were weak and didn’t connect as far as people needed, thus causing them to be forced to take more dangerous routes. On January 17th, 1848, a proposal was sent to Congress by Asa Whitney to approve and provide federal funding...
The post-war time was a period where major changes were occurring. After being involved in two international conflicts, Canada was ready to reestablish their economy. During this time, Canada had started working on ways to become stronger and reputable. It is evident that Canada had matured through the post-war era. Canada’s economic progress left a positive impact on the growth of the country as consumerism became popular, and economic ties with America became stronger. Moreover, the removal of racial and ethical barriers contributed to Canadian social affairs such as the huge wave of immigration and the baby boom. The Canadian government also had become more aware and involved in issues impacting Canadian citizens. Canada as a whole started identifying itself as an independent nation and participating in events that brought a positive reputation amongst them. These economical, social, and legal changes helped Canada mature into the country it is today.
The Confederation act of 1867 without question has had a major influence on the status of contemporary Canada. It has helped shape Canada into one of the worlds most politically and economically powerful countries; a country that is strong, independent, and united. There was a series of events which led to the confederation of Canada, some which are more significant than others. However, I believe that despite the significance of events such as the British encouragement of uniting its North American colonies, the central and key reason for confederation was the fear of potential American (Yankee) inhabitance (whether by persuasion or invasion) of the divided and vast British North American colonies, and the way that the “Fathers of Confederation” were able to take advantage of this situation and persuade reluctant colonies to join Confederation. A strong and united nation could not be easily invaded or bought. These essential factors will be discussed in the paragraphs to come.
All throughout Colorado there has been many developments and expansions. One of these developments is the railroad system. Railroads were and still are such an essential means of transportation for people as well for industries involving coal and fuel, and many other things. There are many key players and developers that took part in revitalizing Colorado in the 1870s. Some of these key players that contributed to the territory’s growth were William A.H. Loveland, Edward L. Berthoud, Henry M. Teller, and William Jackson Palmer.
In the year of 1867 the nation we know as Canada came into being. The Confederation in this year only came about after things had been overcome. Many political and economic pressures were exerted on the colonies and a federal union of the colonies seemed to be the most practical method of dealing with these pressures and conflicts. While Confederation was a solution to many of the problems, it was not a popular one for all the colonies involved. In the Maritime colonies views differed widely on the topic. Some were doubtful, some were pleased, others were annoyed and many were hopeful for a prosperous future.1
After America acquired the West, the need for efficient transportation heightened. Ideas circulated about a railroad that would spread across the continent from East to West. Republican congresses ruled for the federal funding of railroad construction, however, all actions were halted for a few years on account of a war. Following the American Civil War of 1861-1865, the race to build transcontinental railroad began in 1866. Lincoln approved Pacific Railway Act of 1862, granting two railroad companies the right to build the first American transcontinental railroad, (Clark 432).
The undertaking of a project as large as building a railroad across the expanse of the United States seemed impossible and way too expensive for any railway companies to undertake; therefore, in the early/mid 1800’s, railway companies and business people began approaching legislators in an attempt to convince them to support railroad expansion. This, combined with economic necessity, helped to pass the first of several land grant bills. The bills entailed the gifting of public land to railroad companies in exchange for railroad track being laid in designated areas. The land that was not used for track was then sold. Both railroad companies and the government gained from this. The land where track was laid also became more valuable and the profit that was made from the sale of the land was used to pay for materials and labor to continue the railroad expansion. (Railroad Land Grants).
What is the difference between a. and a. The argument of the debt financing being a risky venture since the proposition was to pay out to a sinking fund does not make sense. Over the course of the next seven years, CCI had a historical growth. in revenue of 9%. This growth along with the $2M tax shelter would.