As part of B.C.'s agreement to join the confederation, the government promised to build a railway linking the Pacific province to the eastern provinces within ten years of July 20, 1871.
In 1872 Sir John A Macdonald and other high-ranking politicians, swayed by bribes in the so-called Pacific scandal, granted federal contracts to the CPR Company and the Inter-Ocean Railway Company. As a result of this scandal, Sir John's party was removed from office with Alexander Mackenzie reigning as Prime Minister until October 16, 1878 when Sir John was re-elected. In 1880 construction began with $25,000,000 (approximately $625,000,000 in modern Canadian money) in credit from the Canadian government and a grant of 25,000,000 acres of land. The railway was foundering until March of 1884 the Railway Relief Bill was passed, providing a further $22,500,000 in loans to the CPR Company. On November 7, 1885 the last spike is driven in Craigellachie, B.C., making good on the original promise, albeit four years late.
Also: Canadian culture