“Many are the anecdotes concerning Mr. Smith’s dangerous mission to Fort Garry during the first Riel rebellion and of the commencement of his political career in the far west.”
With Sir Garnet Wolseley were Captain Buller, afterward General Sir Redvers, and Lieutenant Butler, afterward General Sir William. The tyranny of Riel had become irksome to the people, who received the newcomers joyously, and at the approach of the “red coats” Riel, with his co-conspirators, fled, taking up his position on the shores of St. Boniface. All was now quiet in the settlement, the purchase price of one million, five hundred thousand dollars had been paid and the territory transferred to Canada.
Donald A. Smith was by this time recognized as the most powerful man in the west. The governor general thanked him for his services and in 1870, after the organization of the province of Manitoba, he was returned to the legislature for Winnipeg and St. John. He was also called to the Northwest territorial council and was returned for Selkirk to the house of commons. He supported the conservative government then under direction of Sir John A. Macdonald and the party soon found that in him there was another man fit for leadership. It was found that the builders of the railway from ocean to ocean had trafficked with contractors and taken money for election purposes. This became known as the Pacific Scandal and the intense feeling manifest throughout the country centered in the house of commons. The house divided upon a motion of the Hon. Alexander Mackenzie, the leader of the liberal opposition to Sir John Macdonald. Feeling was intense. At one o’clock in the morning of November 5, 1873, Mr. Smith arose and uttered what became an oracular speech, for the people he represented were vitally interested in the building of the railway so necessary to the development of their country. It is said the house became deadly calm; no one knew whether he would adhere to his party’s policies or otherwise. He said: “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.” These were his closing words, greeted by frantic cheers by the opposition, and the government was doomed. Feeling ran high and was most intense and bitter, but in later years the two leaders, the great statesman and the great financier, built together the Canadian Pacific Railway. Both were master builders and the executive capacity of the financier was necessary to the constructive genius of the statesman. It was in no idle spirit of laudation that Sir Charles Tupper stated that “had it not been for Mr. Smith’s indomitable pluck, energy and determination the road would never have been constructed.”
Mr. Smith thoroughly understood the fact that colonization could not be carried forward in the west without the building of the railroad. Another has written concerning this:
“It must have been with profound reluctance that he voted for the overthrow of the Macdonald government. He knew that the fall of that administration would set back the construction of the Pacific Railway and of the necessity of that great work to the unity and stability of the confederation he was thoroughly convinced. He was not well satisfied with the slower and less heroic policy of Mackenzie, although it is said he believed the road should be built by the government and ‘not by any company, however honorable or competent.’ He said in 1876, ‘Nothing short of a guarantee from the government of interest on the whole amount of the bonds could induce capitalists to embark on the enterprise.’ He, therefore, well understood the magnitude of the contract into which the syndicate entered in 1880 and the peril to his fortune and reputation involved in the assumption of that gigantic undertaking.
“There is no doubt that the syndicate received great subventions, but Mr. Smith and his courageous associates undertook to build a railway through thousands of miles of unknown and uninhabited country, along the sterile shores of Lake Superior and across the Rocky mountains. They had to go out in advance of settlement. They had to lead the march of civilization across leagues of unsettled prairie. They had to seek a silent port on the Pacific. It was a more daring idea than the Cape to Cairo Railway, which united two great centers of world activity. The Canadian Pacific was a plunge through nothing to nothing. It was a stupendous guess at the future. As we look back we recognize that few human achievements rank higher than the construction of the Canadian Pacific Railway across this enormous stretch of territory, its operation during the first ten years of its history and the maintenance of its credit in face of persistent attack, slow growth of population and unpromising national outlook. The whisper goes that when the great enterprise hung on the verge of collapse, Mr. Smith pledged his private fortune to the last dollar in support of its credit, as he held his associates to the scrupulous performance of every detail of their contract with the country.”
One of the initial steps of the work was the purchase of the bankrupt St. Paul, Minneapolis & Manitoba Railway, which, extending over Minnesota and Dakota had a branch line to Pembina, Manitoba. Built by Dutch capitalists, it became bankrupt in 1873, yet Messrs. Smith and Hill recognized that with the return of prosperity this would become a profitable undertaking. These two, together with George Stephen, later Lord Mount Stephen, and N. W. Kittson purchased the road.
Sir John Macdonald returned to power in 1878, but he could not secure the cooperation of London financiers in the building of the railroad. When it was seen that it was impossible to carry the project through as a government railroad, in 1880 the four men who had made the old Minnesota railroad a paying investment, undertook the other task. A syndicate was formed, known as the Canadian Pacific Railway Company, ultimately capitalized at seventy-five million dollars, with twenty-five million dollars of land grant bonds, and this company built the railroad from the Atlantic to the Pacific. The task accomplished was a gigantic one. The movement had the support of the conservative government, but was bitterly assailed by the opposition, both in the house and through the press. Again and again the word went out through the papers and through party utterances that the railroad could never be made a paying investment. It was almost impossible to get investors to buy stock. At times the treasury seemed utterly exhausted. It is said that one day Donald A. Smith came late to a directors’ meeting. He looked into the faces of his colleagues and said: “Nobody has any money; let’s adjourn until tomorrow.” The following day he smilingly entered the room. “Has anybody raised any money?” he asked. Everyone replied: “Not a cent.” “I have raised another million,” announced Mr. Smith, “and that will last us until somebody gets more money.” Never for a moment did he lose faith in the ultimate triumph of the venture. He inspired others with much of his own contagious enthusiasm. Again and again when his associates seemed utterly discouraged he inspired them with hope and when he was in Great Britain and the directors wrote him a long letter indicating their utter despair he cabled back one word “Craigellachie,” recalling at once the old Highland clan cry “Stand Fast, Craigellachie,” and once more inspired by their chieftain the men did stand fast and on the 7th of November, 1885, at Craigellachie, British Columbia, Donald A. Smith, then a white haired man, drove a golden spike into the cedar tie upon which the rails met from east to west. The weight of the Herculean task which he had accomplished between 1880 and 1885 had changed the strong, black bearded, sturdy man to a white haired veteran. Before night came on the Marquis of Lansdowne, governor general of Canada, had received a telegram from Queen Victoria congratulating the Canadian people on an event “of greatest importance to the whole British empire.” Speaking of the Canadian Pacific Railway Sir Charles Tupper said:
“The Canadian Pacific Railway would have no existence today, notwithstanding all the government did to support that undertaking, had it not been for the indomitable pluck and energy and determination, both financially and in every other respect, of Sir Donald Smith.” Mr. James J. Hill, president of the Great Northern Railway of the United States, also said that “the one person to whose efforts and to whose confidence in the growth of our country, our success in early railway development is due is Sir Donald A. Smith.”