After confederation, The Pacific Scandal occurred. Over 150 members of the conservative government accepted bribes to influence the bidding on a national railroad contract. The scandal led to the first prime minister resigning, giving power to the Liberal Government.
The main contributors to the scandal were Allan’s Canada Pacific Railway Company and the Conservative government, the liberal government was also involved. David Lewis Macpherson’s Inter-Oceanic Railway Company was a little involved also. 2 groups of people competed to build the railroad, “Allan’s Canada Pacific Railway Company” and “David Lewis Macpherson’s Inter-Oceanic Railway Company”. On April 2, 1873, Lucius Seth Huntington a member of the liberal parliament, revealed evidence that Allan’s company were granted the Canadian Pacific Railway Contract in exchange for political donations of $360,00. The government was stuck between 2 groups of people to complete the railroad construction. They selected Allan’s Pacific Railway Company in exchange for donations to the political government of a large sum ($360,00).
The Liberal government had a positive impact from the scandal. The Liberals took over the government making Alexander Mackenzie the new prime minister. Although the scandal led to Sir John A. Macdonald resigning as the Prime Minister of Canada. Sir John A. was also planning to resign as the leader of the conservative but not following through. He did not follow through because members of the conservative party convinced Mr. Macdonald to stay. The Conservative party recovered nicely after resigning from government and being replaced. In 1878 Sir John A. Macdonald won a majority government in an election and 3 more following in 1882, 1887 and 1891.