Mexico had kicked Spain out so the
Spanish influence on the west
coast had diminished. Then the United States fought Mexico and
1845-1848
obtained Texas and what would become the southwestern states.This
provided American politicians with clear title to the land across
the southern part of the United States from Atlantic to Pacific.
There
are a number of references to various people advocating an US Pacific
railway in the 1830s. Merchant Asa Whitney actually presented plans on how to
finance, support and gradually build across the northern states near
the 49th Parallel to the mouth of the Columbia. Other Pacific railway
advocates were considered to be "wild enthusiasts" or "madmen". (Sadly, today some model railroaders are seen in the same light)
The concept of a Pacific railroad was slow to catch on because at
this point, North American railroad technology was rudimentary and frail ... and a railroad's cost to
benefit relationship was not clear - particularly to those who believed
in governments having a very limited role in the nation's affairs.
The California Gold Rush of 1849 - which brought success to the
transcontinental Panama Railroad - finally got Congress to act on an
American Pacific railway. In addition to travelling across Panama by
rail and around Cape Horn by ship, gold rushers were finding their own
routes across the American west, braving hostile First Nations and deserts.
In March 1853 the War Department was directed by Congress to begin explorations and surveys to determine the best route for a railroad between the Mississippi River and the Pacific.
To make things kind of simple for this flat-wheeled drag of a webpage - there were finally 13
bound volumes documenting the explorations - three principal routes were surveyed, with
variations ...
North Pacific - Lake Superior and the head of navigation of the Mississippi to Puget Sound ... between the 46th and 48th parallels.
Central Pacific - From the Missouri River near Omaha to San Francisco ... between the 41st and 42nd parallels.
South Pacific - From Preston on the Red River in Texas to a point between San Diego and San Francisco ... near the 32nd parallel.
Other variations - Kansas City or Fort Smith to San Francisco or another California harbour - known as the Kansas Pacific route.
Jefferson Davis, a southerner, plantation owner, Mexican War hero and later President of the Southern Confederacy ... was also the Secretary of War in charge of the railroad surveys 1854 to 1857. He really liked the southern route
and favoured the 1853 Gadsden Purchase which involved paying Mexico $10
million to ensure the US-Mexico boundary agreement included a southern strip along the
south of New Mexico and Arizona ... which would facilitate building
the South Pacific railroad route.
The South Pacific route
which Davis favoured, would run
ocean to ocean, easily serving ports in Texas and New Orleans. It would
be shorter and over easier geography and thus less expensive to build. And ... introducing a benefit which doesn't
spring to mind instantly for a Canadian Pacific enthusiast... the
railroad would not have all the problems of snow shutdowns which the Central and North routes would have !
Action on the US Pacific railroad
Unfortunately, for Davis and the South - and fortunately for the dense
railway network and industries of the North - the US Civil War took
place between 1861 and 1865. California with gold ; agriculture ; trade
with Asia and up the coast to Victoria and beyond ; and Nevada with its
silver ... were too good to lose to the Confederacy.
So ... quick as a bunny, Congress chartered the Union Pacific (get it? Union Pacific not Confederate Pacific) in 1862 to send
the right signals to the west and construction started west from Omaha
in 1865. Simultaneously, the San Francisco merchant-driven Central
Pacific Railroad was built east
from Sacramento and the lines met in wide open Utah in 1869. The
central route between the Mississippi and the Pacific had been chosen as you have concluded.
It
was during the American Civil War that the railroad was recognized as a
strategic system for moving troops, weapons and war supplies. A great
art was also made of destroying the enemy's rolling stock and
infrastructure. Not only were piles of torn up rails made unusable by
building
bonfires under them ... the enemy could be taunted by twisting the hot
rails into distinctive shapes, including "Sherman's neckties" around
trees. (US military strategy no longer considered it important to
occupy an enemy's land mass and use its railroads after World War 2)
At one of the Central Pacific construction camps as the road was built through California and Nevada.
Accounts tell of bedrolls on top of the over-sized dormitory cars, and hammocks slung beneath.
Many of the workers on the Central/Union Pacific had been in the Civil War,
so they were accustomed to spartan living conditions and regimented labour.
This was easier than the Civil War - only the First Nations warriors were trying to kill you here.
In building the US Pacific railway there were all kinds of problems with First Nations ... who evidently hadn't received
the memo about their title to their land being extinguished.
As well, there were all sorts of financial shenanigans. You see, there are people who think you can make a lot of money :
-
In railroad construction - sometimes an inducement to build a shoddy railroad.
-
In railroad operation - charging traffic what the market will bear and
selling off government railroad land grants (thanks First Nations!).
- Because you have special connections - some of the
participants in the Union Pacific and Congress did this, resulting in the Credit
Mobilier scandal.
Perhaps one of the simpler financial devices used during the
construction of the Pacific railroads was the land grant incentive.
Certainly the First Nations were quick to catch on to how it worked.
Essentially, railroads were often given alternating blocks of land,
one mile wide, extending back x miles from the railroad as it was constructed to that point. The railroads usually had right to use (e.g. cut timber), mine or sell the land of their earned grants.
The
map below shows the land grants given to the "land grant" incentive
railroads. This also shows the Northern, Central/Union and South
Pacific routes nicely. Notice the streamers of railways building west
from the
Mississippi River.
Contemporary transportation and technology in Canada
After the War of 1812-1814,
British military engineers set up a system of canals to provide secure
military transportation between Kingston, at the east end of Lake Ontario, and Montreal. The St. Lawrence
River was the preferred transportation route, but at points of this section it formed the
boundary between British North America and the US - and could easily be cut off
in a war. Although these were not the only canals built during this
period, they were financed by the government because of the possibility
of renewed American attack. Three canals on the Ottawa River were built 1819 to 1834 and the famous Rideau Canal system between Kingston and today's Ottawa was built 1826 to 1834.
The first Welland Canal - between Lake Ontario and Lake Erie in Canada - was completed in 1829.
By the time the American Pacific roads
were being constructed, Canada had a well developed railway network east of the Great Lakes.
Above is a Grand Trunk wood burning locomotive circa 1860.
Sloppy
leisurely posture is often seen in photographs of this era. The
workplace usually demanded regular physical labour.
Consequently, back then, a
moment of leaning was as chic as ... power-biking to work where one
will be slumped at a computer all day.
Here is the Grand Trunk Railway's status as it was recorded circa 1874.
Built mainly by British investors, it worked primarily as a city-to-city highway.
The seaport of Portland Maine allowed all-year access to European markets.
Negotiating in 1880 with awareness of recent American experiences
Most of the effort of this page (my writing - your patient reading)
is to better
understand the historical, political, financial, technological and other conditions
existing BEFORE the Government of Canada sat down with the CPR principals to
negotiate the Canadian Pacific Railway Contract ... after the
Government's own CPR construction
had failed.
The Government ; the builders and operators (i.e. the CPR Syndicate) ; and the latter's outside financial backers had to somehow predict and negotiate the terms necessary to ensure a successful railway was built ... and had to strike a balance between excessive profits and bankruptcy for the company. Then the terms had to be presented to Parliament where Macdonald had a majority government ... but the Grits would expose and publicize aspects of the CPR bill which were flawed or might seem excessively generous to the company.
In fact, no one could know what the railway's future would be.
There was no benefit in bankrupting the CPR and having the problem land in the Government's lap again.
Many have argued then and since that the terms were too generous.
"Waiting for the cat" (1880)
George Brown's Globe newspaper ... and Liberal leader Edward Blake
are ready to review the Syndicate bargain.
Perhaps the stick-holder is The Rt. Hon. Alexander Mackenzie,
the former Liberal Prime Minister of Canada ...
never a big Pacific railway enthusiast himself.
- - -
So the negotiators thought of many things, including ...
What aspects of all the Union Pacific processes
should be copied ... and which should be avoided ?
What were the political realities and history which were important to the Pacific railway and Canadians ?
- - -
Here are a few simple examples dealing with the railroad construction conditions :
- The maximum gradient - maximum = 2.2 % and the roadbed grading standard were to be the same as the Union Pacific.
- Land grants would be used in much the same way ... as an incentive for completing sections of the road to specification.
- In both cases it was stated the government would extinguish Indian title to the lands involved. However, in Canada, the NWMP
(our beloved Mounties) helped strip title in a firm disciplined
red-coated way. This Canadian process was helped by the fact ... that
the First Nations in the US had
already experienced the firm, undisciplined
method of land confiscation and word had spread among the First Nations
of what to expect from the "webmaster-faces".
- In Canada, the CPR company being formed would have to both build and later operate the railway - so overcharging for shoddy construction
would not pay off. As the project progressed, unethical or incompetent subcontractors would be in receipt of a
memorandum signed by William Van Horne's or Collingwood Schreiber's boot.
- For now, we'll skip comparing ...
- Financing payments ("gifts") by government of government
bonds and cash.
- Mortgage bonds issued on the completed road.
- Second
government mortgage on the road.
- Land bonds issued on the earned land grants.
- Land or cash being held in trust by the government.
- Who held which class of common stock with which voting rights.
- And
many other financial instruments and corporate structuring techniques
used to lure private investor capital to build the Union Pacific and the Canadian Pacific.
But you can imagine it was complex and there were sometimes disagreements of interpretation
between the company and the government
as the CPR was being built.
The Mystery of the Canadian Pacific route through the mountains
Referring to the decision of the Canadian Pacific Railway in 1881 to build across the southern prairies and through the Kicking Horse Pass nearer to today's Banff ...
rather than the Yellowhead Pass nearer to today's Jasper, Pierre Berton in The Last Spike asks:
Why were they all so eager to push their railroad through unknown country? Why did they give up [Sandford]
Fleming's careful location in favour of a hazardous route across two
mountain ramparts whose passes had not yet been surveyed or even
explored? If the Kicking Horse were chosen it would mean that every
pound of freight carried across the mountains would have to be hoisted
an additional sixteen hundred feet higher into the clouds.
A report submitted to the US Senate Committee on Pacific Railroads in February 1869 had stated:
The
line of the North Pacific road runs for 1,500 miles near the British
possessions, and, when built, will drain the agricultural products of
the rich Saskatchewan and Red River districts east of the mountains,
and the gold country on the Fraser, Thompson, and Kootanie [sic] rivers
west of the mountains. From China (Canton) to Liverpool it is 1,500
miles nearer by the 49th parallel of latitude than by the way of San
Francisco and New York. This advantage, in securing the overland trade
from Asia, will not be thrown away by the English, unless it is taken
away by our first building the North Pacific road, establishing
mercantile agencies at Puget Sound, fixing mercantile capital there,
and getting possession, on land and the ocean, of all the machinery of
the new commerce between Asia and Europe. The opening by us first of a
North Pacific railroad seals the destiny of the British possessions
west of the 91st meridian. They will become so Americanised in
interests and feeling that they will be in effect severed from the new
Dominion, and the question of their annexation will be but a question
of time.
The 91st meridian runs roughly midway between Thunder Bay and Duluth.
So according to this thinking, newly-formed Canada would not exist west
of the Great Lakes.
Three professional engineers employed by the Northern Pacific Railroad
submitted a report to the railroad's president, which was subsequently
presented to the Pacific Railroad Committee of Congress in March 1868.
They suggested that the US Government could not afford to withhold the
"desired aid" to build the railroad. Both of these reports were
prepared almost immediately after the "small versions" of early Ontario
and Quebec were created as a result of the 1867 Confederation... and as
the US recovered from its Civil War.
Can
Government afford to maintain a comparatively inefficient military
establishment in our Indian country and on a frontier line, at such
vast labor and expense? Can it afford in these days of railroads and
telegraphs, to disseminate intelligence by the slow process of the mail
coach and horse-back rider? Can it afford to permit millions on
millions of acres of its most fertile lands to lie waste and
unproductive, to be roamed over by savages, instead of being converted
into cultivated fields and made the homes of prosperous citizens? ...
Time is material.
The territory to be developed lies upon the frontier. Contiguous to
it, over the border, is also a territory containing some 500,000 square
miles, possessing more than two thousand miles of lakes and rivers
which are navigable by steam, and capable of sustaining a population of
twenty millions; possessing a climate, soil, and mineral wealth
scarcely less desirable and valuable than our own. This country is now
sparsely inhabited by a people having their principal commercial and
social relations on our side of the border. These people naturally
gravitate to us. The construction of our road, at once, would secure
their trade and friendship in the future. By delay that friendship and
trade may be lost.
Already the
project of constructing a Pacific Railroad on British soil, north of
our border, is matter of serious consideration. Influential parties
from Canada are now understood to be in England to urge upon the
British Government the necessity of granting a liberal subsidy for the
construction of this road. It will constitute an extension of the
Inter-Colonial Railroad, which has already received the aid of the
Imperial Government, and form a link in the great contemplated line
which is intended to span the continent, and bind together, as it were
in chains of iron, the different British provinces on this continent,
and form a great channel of commerce between Europe and Asia. The
construction of such a road would exclude from us the business of that
great territory, and the wealth consequent thereon, and preclude the
idea of political relations between that people and our own.
The Northern Pacific Railroad report includes these estimates of annual revenue:
Estimate of Revenue
Express - United States, Canada, Europe, and Asia $ 700,000
US Mail, Canadian, European, and Asiatic Mails $ 500,000
Transportation for Posts of Hudson Bay Company $1,000,000
There is no amount given for the Canadian share of general freight and passenger business - total $21,000,000
While
the American railroads were often operating in prosperous areas
demanding high levels of freight and passenger service, they were
primarily continental and even semi-continental enterprises. The
barrier of the Mississippi River and the course of American history had stopped
the fluid extension of railroad systems from the south and east into "The
West". The abundance of American investment capital looking for industrial
investments helped
reinforce this national focus. (In 1921, for example, railroad securities constituted 50.7% of the par value of all securities at the New York Stock Exchange)
With many of the Canadian Pacific's
principals and political patrons being "foreigners" who knew the world
outside Canada, the company developed more along the lines of a modern
multinational corporation. A multinational having continental, British Empire and
world-wide perspectives. One intended function of the CPR main line - similar to the
Panama Railroad - was to act as a land bridge between the company's own
steamship routes.
With the help of Pierre Berton's
narrative, we can admire the CPR as a plucky little national system
triumphing over forbidding geography, political enemies, and predictions of failure.
However, for reasons of devotion to
the British Empire and resistance against America's manifest destiny to dominate the
continent ... the sense of achievement from building something great
and using money to help keep score ... the work ethic that
"there will be sleeping enough in the grave" ... a degree of personal
vanity in some cases ... and a determination that failure at anything
could not be permitted ... the men driven to create the Canadian
Pacific Railway considered factors beyond operating through the "best" farmland and
over the "easiest" mountain grades.
In
the decades which followed, the Canadian Pacific's southern route choice did
demand expensive rebuilding in places and did result in higher operating costs.
However, its
builders saw the world beyond Canada's borders and they located their line accordingly.