to weaken its position. But a graver
blow, ending in the complete overthrow of the administration, was soon
to fall as the result of the election. In 1872 two companies had been
formed and received charters to build the Canadian Pacific railway. Sir
Hugh Allan of Montreal was at the head of the one, and the Hon. David
Macpherson of Toronto was president of the other. The government
endeavoured to bring about an amalgamation of these rival companies,
believing that the united energies and financial ability of the whole
country were required for so vast an undertaking. While negotiations to
this end were still proceeding the election of 1872 came on with the
result already mentioned. Soon after the meeting of parliament, a
Liberal member of the House, Mr L.S. Huntingdon, formally charged
certain members of the cabinet with having received large sums of money,
for use in the election, from Sir Hugh Allan, on condition, as it was
claimed, that the Canadian Pacific contract should be given to the new
company, of which he became the head on the failure of the plan for
amalgamation. These charges were investigated by a royal commission,
which was appointed after it had been decided that the parliamentary
committee named for that purpose could not legally take evidence under
oath. Parliament met in October 1873, to receive the report of the
commission. While members of the government were exonerated by the
report from the charge of personal corruption, the payment of large sums
of money by Sir Hugh Allan was fully established, and public feeling on
the matter was so strong that Sir J. Macdonald, while asserting his own
innocence, felt compelled to resign without waiting for the vote, of
parliament. Lord Dufferin, who had succeeded Lord Lisgar as
governor-general in 1872, at once sent for the leader of the Opposition,
Mr Alexander Mackenzie (q.v.), who succeeded in forming a Liberal
administration which, on appealing to the constituencies, was supported
by an overwhelming majority, and held power for the five following
years.

On the accession to power of the Liberal party, a new policy was adopted
for the construction of the trans-continental railway. It was proposed
to lessen the cost of construction by utilizing the water stretches
along the route, while, on the ground that the contract made was
impossible of fulfilment, the period of completion was postponed
indefinitely. Meanwhile the surveys and construction were carried