The CPR Syndicate:
After two years of searching, the government found three private investors: George Stephen of the Bank of Montreal, Donald Smith of the Hudson’s Bay Company, and James J. Hill, an expatriate Canadian who invested in US railways. The three investors, known as the CPR syndicate, would receive over $25 million as well as a land grant of 25 million acres when the railway would be completed. The CPR syndicate promised to build the transcontinental railway within ten years. On February 1, 1881, this contract was approved by the Parliament, and thus began the building of the CPR.
The Construction of the CPR:
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Starting from Bonfield, Ontario, 1881 was the beginning of the westward expansion of the CPR. However, the first year of construction was unsuccessful. By winter of 1881, only 230 kilometres of track had been laid between Winnipeg and Brandon, Manitoba, which would lead to a delay in the completion of the project. Spending early fall of 1881, James Hill sought after a new general manager for the railway. After searching for the perfect person, Hill hired William Van Horne, who would make the CPR possible. He was efficient and worked his employees mercilessly. As a result, 500 miles were laid during the 1882 season, and another 500 the following year. However, money began to decrease. After each section of work was finished, only then would the government subsidy be paid out. This was a problem, and by the fall of 1883, the company was struggling to continue. Funds began to run out, causing the salaries of the workers to decrease, which eventually led to a strike. Unwillingly, the Canadian government passed a bill, giving $22 million to the CPR. In 1884, in order to use the money as wisely as possible, necessary changes were made by Van Horne. By the end of 1884, almost all of the money was spent.
Because the CPR was built solely by hand, thousands of people were required. The peak of construction, between 1882 and mid-1885, over 35,000 people were working.
- 15,000 worked in the north of Lake Superior
- 10,000 worked inland from British Columbia’s coast
- 10,000 worked on the prairies