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By the terms on which British Uolurubia was induced
to enter the Dominion of Canada, it was stipulated that the Government
should secure immediately "the commencement of the construction of a
railway from the Pacific towards the Rocky Mountains, and from such point
as may be selected cast of the Rocky Mountains towards the Pacific, to
connect the seaboard of British Columbia with the railway system of
Canada, and further o secure the completion of such railway within ten
years from the date of union."
It was a large order, and by this agreement the
Government of Canada was committed to the task- of constructing this
railway. It was an easy timing to make an agreement, but the carrying of
it out was a different and most difficult matter. It was felt that, though
there were American capitalists who were willing to put money into the
project, yet the road should be built by Canadians. If it was to be
"Canada's National Highway," there must be no risk of it being controlled
by the people to the south. As a result Canadian capitalists became
interested. Sir Hugh Allan represented one company. the 'Canadian Pacific
Railway Company," and Senator D. L. McPherson, the "Inter-Oceanic." The
Government was to subscribe $30,000,000 and give a land grant of alternate
blocks, twenty miles deep, along the line. The attempt to unite these two
companies failed, and a new company was formed under the leadership of Sir
Hugh Allan. This company received the charter. It was at this juncture
that the "Pacific Scandal" charges were made, resulting, as we have said,
in the overthrow of the Government and the retarding for an indefinite
time the enterprise.
It was a severe blow to the Province of Manitoba. As
yet it had no connection by rail, either to the South, or North and West.
Mr. Smith now came to the front and proved himself in another capacity. He
entered the world of finance and displayed remarkable ability. He cast his
vote against Sir John, after making a powerful speech which closed with
this pregnant sentence, "For the honor of the country, no Government
should exist that has a shadow of suspicion resting upon it, and for that
reason I cannot give it my support." Such a sentiment reveals the spirit
of the man and what his ideal of Government was.
The people living south of the 49th parallel were
not oblivious to the advent of great changes in the Canadian North-West,
and they were anxious to construct a railway that would run parallel to
the border and do the carrying trade for the communities soon to grow up
in the northern country. It was realized, too, that an immense overland
trade from Asia would he developed and that the road first on the ground
would have a great advantage in securing that trade. Moreover, if an
American road were established and the rich products of the prairies east
of the Rockies and the Gold Country on the Fraser, Thompson and Kootenay
Rivers, west of the mountain, had found in it a channel for
transportation, it would make more difficult the building of a Canadian
road. Once the trade routes were established, it would be difficult to
divert the traffic. There was also a political inducement. It meant,
according to the outspoken declaration of the U. S. Senate Committee on
Pacific Railways, that the British Possessions west of the 91st meridian
would become practically Americanized, separated from the Dominion in
interests and sympathy, and annexation would follow in due course and an a
natural consequence.
Attempts had been made to construct railways in
Northern and Western States, but with little success. Charters had been
given and lands granted. One of the roads was to extend from St. Paul to
the head of the Red River and was known first as the Minnesota and Pacific
Railway Company, and, afterwards, as the St. Paul and Pacific Company.
This road had, after many years and against many obstacles been built 217
miles north from St. Paul. There it ceased. The Civil War had caused
delay, hard times had a great deal to do with it. A wave of bankruptcy
swept over the country, so that, with 56 miles of grading to be done and
241 miles of rails to be laid, the work stopped and the road became
bankrupt.
It is an ill wind that blows nobody good." The
failure of this railroad was an opportunity for Mr. Smith. He was bent on
having railway connection with Winnipeg. He believed that if this
abandoned road were completed to the border, the Dominion Government would
build from there to Winnipeg. It was a great undertaking and would require
vast capital, and it seemed a hopeless scheme. But the man who had lived a
life of hardship and difficulty in the wilderness was not easily daunted.
He secured the co-operation of three men—Mr. Kittson, manager of the
steamship company which did business on the Red River; James J. Hill, and
a relative, Mr. Geo. Stephen, who became later Lord Mount Stephen. These
men undertook to buy out the bondholders, who were mainly burghers of
Amsterdam. Negotiations were begun. They involved the purchase of more
than $20,000,000 worth of bonds. The purchase was made, partly in cash and
partly in shares of the company. In 1870 the new railway company was
incorporated, the St. Paul, Minneapolis & Manitoba Railway Company, with
Mr. Stephen as President; Mr. Hill, General Manager, and Mr. Smith,
Principal Director, and the new company at once went to work. They issued
bonds to the amount of $8,000,000, which they floated in the New York
market. In time the road was completed and Manitoba for the first time had
a railway connection. It has been said that "these four men, by their
splendid audacity and courage in raising the project from the ditch into
which it had been abandoned by its former promoters, furnished a lesson in
finance to the United States and to the world, that generations of
Canadians may point to with pride. The history of the achievement reads
like a modern fairy tale; it is certainly worthy of being classed as a
romance of railroading." |
