Building the Canadian Pacific Railway: Part 2 - The Pacific Scandal

I don't know what's happening, but...
yeah, it shows that things were bad.

While this isn't a true "part 2" as it doesn't follow in chronological order, I thought the Pacific Scandal warranted its own entry all to itself. Imagine the situation: Canada just becomes a country, and already the very first leader is thrown into a massive corruption scandal and is kicked out of office. While I can't seem to find any information about it, I can only imagine how heavily the anti-Confederationists were gloating - "Ha-ha, good show, old sport! Surely our Dominion will be as long lasting as my fifth cup of tea prior to dining!". Bear in mind we were still very much British at the time. That's why the tea thing made sense. Ahem.

To set the scene: Americans were interested in buying the contract for the railroad, many with the idea in mind that Canada would eventually be left open to annexation as the U.S. would effectively control the land west of the Great Lakes through the monopoly on transportation. That, and a lot of the money would naturally funnel back to America. As well, the Yankees were hoping to have the railroad also swing through the States, further Americanizing what is meant to be a massive Canadian endeavour. Obviously, every true Canadian wanted to oppose this with every maple syruped covered first they had. Keep in mind, especially at the time, anti-American sentiments were pretty well engrained in Canadians. If they had made the flag then, it would likely have a middle finger pointed towards the south.

His political dealings were as wild as his hairstyle.

So in walks Hugh Allan, a Canadian known to have a great number of American economic backers. The government most certainly knew this, but strapped for cash and seeing an opportunity to build the darn railroad that was seemingly working harder to work towards crushing Macdonald's soul than actually getting built, they had to take a look at every option that came forward. Allan had the means and the capital, but it was the American aspect of it that really threw a wrench in the works.

Now, obviously, dealing with Americans isn't a crime - at least not something you can be convicted of in court. The criminal aspect came in when Allan started to throw a few dollars Macdonald's way, and that money was in turn spent on campaigning. Except it wasn't just a few dollars - it was $300,000. In exchange for the capital, Macdonald hinted he would provide Allan (and thus his American backers) with the contract to build the CPR. If you're thinking this sounds familiar, it's because the Chretien government actually did something rather similar, with taking funds from a program meant to quiet Quebec separatism by advocating Canada and using it to fund their political campaigns. When it came out, it worked to pretty much kill the Liberals in Quebec for many, many years to come. Whoops.

Apparently, the $300,000 was spent
on making cool posters like this.
Money well spent.

Anyways, Macdonald eventually backed out of the deal, which pissed off the Americans just about as much as you would imagine. All of it came out in the press eventually, and Macdonald was quite literally sick with worry. His health started to deteriorate heavily knowing he will most certainly be kicked out of office and his legacy would be severely damaged. This is all in addition to the fact that Macdonald was a high functioning alcoholic. A few tidbits about John A. - he once was at a debate in which he was so drunk he puked during the thing. His response when he got up to speak was his opposition's words made his stomach turn. He was a great speaker, undoubtedly. While he was in the senate defending himself, he was so drunk when he gave his speech in his own defence he had to be helped up in order to speak - and then gave a rousing, fantastic speech the likes of which Canada has yet to hear. In fact, during that time, it was said that he had two people filling his drinks; one was giving him water, the other gin. However, it may have been that both were giving him gin thinking the other was providing the water. Whoops.

Macdonald was actually so stressed during this time, he got up and left. Yes. He left. For weeks. He may have simply gone fishing, but people didn't know. Picture this in nowadays time - a Prime Minister is caught up in a massive scandal, and it stresses him out so he decides to leave the public eye for a few weeks, nowhere to be found. It would be world-wide news, absolutely. The problem for Macdonald is he was without question guilty, and there wasn't really so much they could do about it but delay - and delay they most certainly did. It sure took quite some time, most certainly taking more time to break down poor Macdonalds fragile mind at this point, but eventually he was kicked out and the Liberals moved in shortly after. He then came back a few years later to once again take up the role of Prime Minister, demonstrating that people have a very short memory of political dealings in both modern day and at the time of Confederation.

Famous Historical Figures Say the Darndest Things!

1. The government "trafficked with foreigners in Canada's most precious interests in order to debauch the constituents of the Dominion with the gold obtained at the price of their treachery!" Words spoken by Lord Dufferin. People sure did hate things more eloquently back then.
2. "[Macdonald is the] greatest corruptionist America had produced." 
3. After hearing words that the government shall rise again... "Rise again! But that resurrection shall not be until the last trump shall sound - when the graves shall give up their dead an death and hell shall give up the dead that are in them!" Well, actually, it would be a few years down the line, but either one.