[7] The creation of the Canadian Pacific Railway was undertaken as the National Dream by the Conservative government of John A. Macdonald, together with mining magnate Alexander Tilloch Galt.
After this scandal, the Conservatives were removed from power, and Alexander Mackenzie, the new Liberal prime minister, ordered construction of the railway under the supervision of the Department of Public Works.
It noted that a crowd of "upwards of 500 ladies and gentlemen" gathered to celebrate the event on the left bank of the Kaministiquia River in the District of Thunder Bay, about four miles upriver from Fort William.
Once completed in 1882 with a last spike at Feist Lake, near Vermilion Bay, Ontario, the line was turned over to the newly-minted private Canadian Pacific Railway company.
Macdonald would later return as prime minister and adopt a more aggressive construction policy; bonds were floated in London and called for tenders to complete sections of the railway in British Columbia.
The treacherous 190 km (120 mi) of railway west of Fort William was completed by Purcell & Company, headed by "Canada's wealthiest and greatest railroad contractor," industrialist Hugh Ryan.
The connection with Saint John on the Atlantic coast made the CPR the first truly transcontinental railway company in Canada and permitted trans-Atlantic cargo and passenger services to continue year-round when sea ice in the Gulf of St. Lawrence closed the port of Montreal during the winter months.
[26] The Southern Mainline, generally known as the Kettle Valley Railway in British Columbia, was built in response to the booming mining and smelting economy in southern British Columbia, and the tendency of the local geography to encourage and enable easier access from neighbouring US states than from Vancouver or the rest of Canada, which was viewed to be as much of a threat to national security as it was to the province's control of its own resources.
Hard times led to the creation of new political parties such as the Social Credit movement and the Cooperative Commonwealth Federation, as well as popular protest in the form of the On-to-Ottawa Trek.
The company discarded its beaver logo, adopting the new Multimark (which, when mirrored by an adjacent "multi-mark" creates a diamond appearance on a globe) that was used – with a different colour background – for each of its operations.
In 1987, most of CPR's trackage in the Great Lakes region, including much of the original Soo Line, were spun off into a new railway, the Wisconsin Central, which was subsequently purchased by CN.
In 1996, CP Rail moved its head office from Windsor Station in Montreal to Gulf Canada Square in Calgary and changed its name back to Canadian Pacific Railway.
However, the new subsidiary, threatened with being sold off and free to innovate, quickly spun off money-losing track to short lines, instituted scheduled freight service, and produced an unexpected turn-around in profitability.
[52][53] On July 6, 2013, a unit train of crude oil which CP had subcontracted to short-line operator Montreal, Maine and Atlantic Railway derailed in Lac-Mégantic, killing 47.
[54] On August 14, 2013, the Quebec government added the CPR, along with lessor World Fuel Services (WFS), to the list of corporate entities from which it seeks reimbursement for the environmental cleanup of the Lac-Mégantic derailment.
The CPPS say they did a thorough investigation into the actions of the crew, which is now closed and resulted in no charges, while the Alberta Federation of Labour and the Teamsters Canada Rail Conference called for an independent police probe.
However, CN's merger attempt was blocked by a STB ruling in August that the company could not use a voting trust to assume control of KCS, due to concerns about potentially reduced competition in the railroad industry.
[82] This service was initially heavily promoted by the company and many images of the train, especially as it traversed the Canadian Rockies, were captured by CPR's official photographer Nicholas Morant.
But railway managers realized that those who could afford to travel great distances expected such facilities, and their favourable opinion would bode well to attracting others to Canada and the CPR's trains.
[88] Dominion Express Company was formed independently in 1873 before the CPR itself, although train service did not begin until the summer of 1882 at which time it operated over some 500 kilometres (300 mi) of track from Rat Portage (Kenora) Ontario west to Winnipeg, Manitoba.
[97] The CPR ran a number of trains that transported members of the Canadian royal family when they toured the country, taking them through Canada's scenery, forests, and small towns, and enabling people to see and greet them.
The train set was so lightly disguised as the fictional "AMRoad" that the locomotives and cars still carried their original names and numbers, along with the easily identifiable CP Rail red-striped paint scheme.
In 2013 to celebrate the program's 15th year, three signature events were held in Hamilton, Ontario, Calgary, Alberta, and Cottage Grove, Minnesota, to further raise awareness for hunger issues.
The train stopped in 13 cities along its 3-week summer tour, offering a free block party and concert from Dean Brody, Kelly Prescott[119] and Dallas Arcand.
[120] The heritage train drew out thousands to sign the special "Spirit of Tomorrow" car, where children were invited to write their wishes for the future of Canada and send them to Ottawa.
Being allowed to sell this service meant the railway could offset the costs of constructing and maintaining a pole line along its tracks across vast distances for its own purposes which were largely for dispatching trains.
In 1931, it became the Communications Department in recognition of the expanding services provided which included telephones lines, news wire, ticker quotations for capital stocks and eventually teleprinters.
It was the coming of these newer technologies especially cellular telephones that eventually resulted in the demise of these services even after formation in 1967 of CN-CP Telecommunications in an effort to effect efficiencies through consolidation rather than competition.
The onset of the Great Depression hurt the CPR's financial plan for a rival project and in April they withdrew their applications for stations in all but Toronto, Montreal and Winnipeg.
Pennsylvania-Ontario Transportation Company was formed jointly with the PRR in 1906 to operate a ferry across Lake Erie between Ashtabula, Ohio, and Port Burwell, Ontario, to carry freight cars, mostly of coal, much of it to be burned in CPR steam locomotives.