Before the railway was built, the people of British Columbia were unsure of whether to join Canada or the United States. The Prime Minister of Canada, Sir John A. Macdonald was very anxious for BC to join the Dominion, since the US had recently purchased Alaska from Russia. Macdonald held the present fear that the US may try to annex the entire west coast, as many American settlers were already moving across the area. Sir The Prime Minister promised the people he would build a railway to connect them to the rest of Canada. John A. Macdonald also wanted the fertile plains to be settled upon, and to bring in settlers to those areas, the government needed to build a railway.
A group of businessmen under the order of Sir Hugh Allan formed the Canadian Pacific Railway Company to build the tracks.
During the election of 1872, Sir John A. Macdonald's Campaign ran short of funds. Allan was supposedly the richest man in Canada, so Macdonald ask him for money. Hugh Allan gave him the cash, and after the election Macdonald repaid Allan by awarding him the contract to build the CPR. When Macdonald's opponents discovered this "scandal", it raised such a huge commotion, that Sir John was forced to give up his position as Prime Minister. This is now called the "Pacific Scandal".
Sir John A. Macdonald
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