Canadian Pacific Railway Company

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Gold Rushes and their affect on British Columbia
&
Completion of the Canadian Pacific Railway
The various Gold Rushes and their affect on British
Columbia
Gold Rush Overview
 The first gold discovery was made in 1859 at
Horsefly Creek
 The actual rush did not begin until 1861, when
these discoveries were widely publicized
 Several towns grew up, the most famous of these
being Barkerville
 The most famous of the gold rushes but it wasn’t
the only one
Affects on the New British
Columbia
 Cited as the reason for the creation of the Colony
of British Columbia
 Over 20,000 Americans from California came
looking for gold
 Americans quickly out numbered the small British
and Canadian settler populations
 UBC forts such as fort Langley created large profits
in selling supplies to the prospectors
New Westminster
“The Royal City”
 In 1859 was selected by Queen Victoria as the first capital
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of the new Colony of BC
One year latter became the first city in BC to have an
elected government
Was a major outfitting point for Gold prospectors
Was replaced by Victoria in 1866 when the two colonies
merged
In 1878, the Government of Canada the first federal
penitentiary west of Manitoba
Chinatown was one of the biggest
The B.C. Penitentiary being constructed circa 1877
Fraser Canyon Gold Rush
 Occurred in 1858 after gold was discovered on the
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Thompson River
A few miles upstream present-day Lytton.
Within a month 30,000 men from California had
descended upon Victoria, which only had a population
of about 500
By the fall, most had failed to stake claims, or failed
because of the summer's high water on the river left
It caused a disruption of balance between the HBC and
the Natives
The New Eldorado: "A Complete View of the
Newly Discovered Goldfields"
Big Bend Gold Rush
 Occurred on the upper Columbia River in the Late
1860s
 was a spin-off of the Fraser Canyon Gold Rush
 Many American Gold Miners left the Fraser
Canyon in search of gold
 Located just past the Death Rapids" of the
Columbia, which had been the scene of
horrendous tragedies twice, in 1817 and 1838
Rock Creek Gold Rush
 In 1859 two US soldiers cross the border to escape
pursuing Natives and found gold only three miles
into British territory on the banks of the Kettle
River nowadays Grand Forks
 At its peak, an estimated 5,000 men were in the
area
 Trouble broke out when the Queen’s Mining tax
was being collected from the American and
Chinese prospectors
Queen Charlottes Gold Rush
 In March 1851 when a Haida man sold a 27
ounce nugget in Fort Victoria for 1,500 blankets
 UBC sent the ship Una to mine, the natives
tried to take it all and eventually the gold was
split evenly or $1,500 in gold ($60,000 in
modern dollars) as the yield from three blasts
but the ship crashed
 Ten American ships went up but came back
with very little because of the Haida hostilities
The Minor Gold Rushes 1859-1869
 Blackfoot Gold Rush, 1859
 Similkameen Gold Rush, 1861
 Peace River Gold Rush, 1861 (a.k.a Finlay Gold
Rush)
 Stikine Gold Rush, 1861
 Shuswap Gold Rush
 Cherry Creek Gold Rush
 Omineca Gold Rush
 Wild Horse Creek Gold Rush
 Goldstream Gold Rush (Leechtown)
 Burnt Basin Gold Rush
Whatcom Trail
 Several thousand Gold Seekers used this trail but
there is not exact number
 Open defiance of the edict from the British
Governor on Vancouver Island that access to the
Fraser goldfields must be made from Victoria
 It demonstrated the colony's inability to prevent
unregulated intrusion by US citizens
Okanagan Trail
 Was an inland route
to the Fraser Canyon
Gold Rush
 The same route that
the HBC fur brigades
used because it
followed the
Columbia River
 Once again no
accurate records were
kept for how many
used this route
Fort Hope
 Built by the Hudson's Bay Co in 1848
 there were 300 people living there when a Townsite
was laid out
 American steamers were running passenger and
freight service up the Fraser from Victoria to Hope
 The start of steamboat service to Yale the next year,
killed the Whatcom trail
Early photo of Fort Hope circa 1860 two years after the
initial rush on the lower Fraser River gold bars
Yale
"the wickedest little settlement in British Columbia"
 An unincorporated though historically very
important small town
 Founded in 1848 by the HBC
 Begbie talked to the American miners and took
control of matters that threatened the rule of the
Crown over the Mainland
 Is located on the Fraser River and is considered to
be the dividing point between the coast and the
interior
 The best location for the start of the Cariboo
Wagon Road
Front Street, Yale, British Columbia circa 1882
Cariboo Road
 Initiated in 1862 by the colonial Governor of BC
James Douglas
 Stretched from Fort Yale to Barkerville through
extremely hazardous canyon territory in the
Interior of B.C
 Considered to be an Engineering Feat
 Was a reaction to a high concentration of gold in
the Cariboo region
 Based along an old dangerous and narrow Mule
trail
 Thought to be more viable and safe form of
transportation to the gold mining settlements
Route of the Cariboo Road in red. Steamboat travel in blue;
dotted lines are alternate routes or routes to other goldfields.
Cariboo Road Costs
 Cost nearly $250,000 and left a standing debt of
£112,780 after its completion
 One of many projects that forced its amalgamation
with the Vancouver Island Colony
 Transportation of over six and a half million
dollars worth of gold
 Originally Douglas wanted to extend the road to
Alberta but this plan was abandoned when he
retired
A portion of the Cariboo Road just above Yale,
circa 1867–1868
The Cariboo Road at Soda Creek
Barkerville
 In 1862 when William "Billy" Barker, an English
boatman, made a huge strike at William's Creek
 The biggest Gold strike in BC
 Eventually 1100 kilograms of gold was found
 Once the largest city north of San Francisco and
west of Chicago
 Was the northern terminus for the Cariboo
Road
 Prices remained high until the Road
Barkerville (cont’d)
 More than a mining town because it had several
general stores and boarding houses, a drugstore
that also sold newspapers and cigars, a barbershop
 Was destroyed by a fire but was quickly rebuilt
within six weeks
 Chinese were an important part of Barkerville life
for almost a hundred years
 It would begin to dwindle as the gold dried up and
in 1958 the provincial Government turned it into a
historic site
Barkerville (1865)
William (Billy) Barker
 Worked in the Canals in
England as a waterman
before rail made them
obsolete
 Went to California
 his claim became the
most prominent of the
Cariboo goldfield towns
 Had a lot of money but
died in poverty
 His simple grave stone is
found in Victoria
The Early Years of Matthew Baillie Begbie
“The Hanging Jugde”
 From 1858 - 1894 he was the main judge in British
Columbia
 When he reached the age of 31 Degree from
Peterhouse at the University of Cambridge, where
he studied mathematics and the classics
 Got his Law degree from Cambridge and opened
his own Law firm in London
 He also belonged to dining societies, playing
chess, rowing, and tennis
Life in British Columbia
 Reached Fort Victoria on November 16, 1858, and was
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sworn into office in Fort Langley on November 19
Traveled throughout British Columbia, on foot and later
on horseback administering justice
Spoke several languages was able to conduct trials in
several aboriginal languages without the use of an
interpreter
He only hung 52 out of 72 of his clients because that was
the only option under British Law
His funeral procession is said to have been unprecedented
because it mark the passing of a man regarded as British
Columbia's first citizen
Sir Matthew
Baillie Begbie
Birth of British Columbia
 Led to the declaration of the Colony of British
Columbia
 Governor Douglas placed restrictions on immigration
to the new British colony
 All travel had to go through Victoria
 Overland routes to the goldfields could not be
controlled
Cariboo Gold Rush Review Questions
 What happened during the Fraser Canyon Gold
Rush?
 Why did the American Gold Prospectors worried
the British Government?
 List and explain at least three facts about the
Cariboo Road
 From your Horizons Textbook
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Read Pg. 222 - 224
Answer # 1 - 4 (Above Activities Section)
Answer # 2, 3 & 5 (Bottom Activities Section)
Key Knowledge Points
 Canadian Pacific Railway Company
 The Pacific Scandal
 Alexander Mackenzie
 The National Policy
 The CPR Syndicate
 Money Troubles
 The Northwest Uprising and the CPR
Who will build the railway?
 When BC joined Confederation in 1871, the
Canadian Government promised to build a railway
to the West coast within 10 years
 John A MacDonald had no idea what route the
railway would take or how much it would cost. He
only knew that he had a dream to make a country
that stretched from sea to sea
Who will build the railway?
 MacDonald knew that the government did not
have the money to complete the project on their
own.
 He decided to offer incentives to wealthy
businessmen and owners of other railways to
convince them to finance to construction of the
railway.
Who will build the railway?
Jay Cook
Jay Cook was an American
businessman, realized
that the Canadian West
had lots of potential in
terms of making money
Sir Hugh Allen
Sir Hugh Allen was the only
Canadian with enough money to
invest in the railway. He had made
his money in shipping,
manufacturing and railways in
eastern Canada
Who will build the Railway?
Jay Cook and Sir Hugh Allen joined forces in 1871 and
created the Canadian Pacific Railway Company

This company seemed Canadian, but it was actually
controlled by Cook
The Pacific Scandal
 In the summer of 1872 John A MacDonald (leader
of the Conservatives) called an election. During
the election the Conservatives realized that they
needed more money for their campaign.
 MacDonald asked Hugh Allan if he could provide
money for the campaign. In exchange, MacDonald
promised him a guaranteed railway contract.
 Why might some people have a problem with
this???
The Pacific Scandal
 The Conservatives won
the 1872 election just
barely, but in 1873, this
agreement between
MacDonald and Allan
was made public.
 Because of this deal, the
public believed that
MacDonald had
bought votes. He was
forced to resign from
office.
Alexander Mackenzie and the Railway
 In 1873, when MacDonald was forced to resign,
Alexander Mackenzie led the Liberals to power.
 He thought that the railway was a waste of time
and money.
 However, he had to continue with the promises
that MacDonald had made while he was in power.
Alexander Mackenzie and the Railway
 In order to make it look
like he was doing
something about the
railway, Mackenzie
decided to allow the
land survey to continue.
 This was an easy and
inexpensive way to stall
without actually
spending money
building the railway.
The Route
 There were many different routes proposed, none of
which were actually used in the end. The final route
was through Calgary to Kamloops.
The National Policy
 John A MacDonald was out of office for 5 years
from 1873- 1878.
 In 1876, he developed a National Policy, which
became the basis for his election platform in 1878.
 Voters agreed with his vision and elected him
back into office with a large majority.
The National Policy
 The National Policy had 3
parts:
1. A system of protective
tariffs (taxes)
2. Increased immigration
3. The building of the CPR
The CPR Syndicate
1) George Stephen – President of the Bank of Montreal
2) Donald Smith – businessman with the Hudson’s Bay
Company
3) James J. Hill – businessman in various fields and railway
owner
The CPR Syndicate
 In 1880, MacDonald made the group an offer:
 If the CPR Syndicate built the railway in 10
years, they would get:
1.
2.
3.
$25 million in cash
A land grant of 25 million acres
A business monopoly west of Lake Superior for 20
years.
What do you think the
CPR Syndicate could do
with this monopoly???
The CPR Syndicate
 The CPR Syndicate immediately changed the route
of the railway.
 Construction began in the spring of 1881 but was
very slow. By the end of the year, they had only built
250 kilometers of rail.
 The CPR Syndicate decided to hire William Van
Horne as their general manager.
 Van Horne had been very successful in his past
business projects and in building other railways.
 Under his control, 800 kilometers of rail was built in
1882 and another 800 kilometers were built in 1883.
William Van Horne
 Was a 38 year old general
manager of a smaller
railway.
 Was very determined
and saw no task as being
impossible to achieve.
 Made the CPR an
efficient railway
company.
$$$ Troubles
 By the end of 1883, the company was running
out of money and the most costly section of the
railway (in British Columbia) had not been
built yet.
 In 1884, the Canadian government passed a bill
that provided another $22.5 million for the
railway.
 Van Horne cut expenses but it was still not
enough.
 In what ways do you think expenses were cut???
Cutting Costs and Corners
 Found Cheap Labour
 Cut corners on the construction of bridges
$$$ Troubles
 Many workers were brought to Canada from China.
 The living and working conditions were terrible and
many people died while building the railway.
The CPR and the Northwest Uprising
 When the Northwest Uprising broke out in 1885,
the Canadian government needed to move troops to
Saskatchewan quickly.
 Thanks to the CPR, the troops made it to the
Prairies in 10 days- very fast!
 This proved to the people of Canada that the
railway was very important for protection and made
it possible for MacDonald to secure more money for
building from the public.
 The CPR was completed in November of 1885
- 5 years ahead of schedule!
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