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In April 1873, the government of Sir John A. Macdonald was charged with accepting illicit funds from Sir Hugh Allan. In return for these payments, Allan was assured that he would be awarded the lucrative contract to construct the transcontinental Canadian Pacific Railway. When evidence of the agreement was made public by Opposition members of Parliament and published in newspapers across Canada, the episode became known as the "Pacific Scandal."
Allan's correspondence revealed that he and his American partners had attempted to influence a range of public figures, including journalists and politicians. During the election campaign of 1872, large sums were contributed to individuals such as George-Étienne Cartier and Hector-Louis Langevin. A telegram from Macdonald to Allan's legal adviser, John J. C. Abbott, provided the scandal's most sensational evidence, as it read: "I must have another ten thousand; will be the last time of calling; do not fail me; answer today."
Macdonald employed a number of delay tactics in an attempt to avoid the political consequences of the scandal. However, there was no avoiding the public backlash and unrelenting attacks of the Opposition. The political cartoonist J. W. Bengough became popular for his illustrated commentaries on the Pacific Scandal.
A Royal Commission was appointed in August 1873 to examine the matter, and in November Macdonald's government finally resigned. A general election followed, and Macdonald managed to keep his seat in Parliament. For many individuals involved in the scandal, the long-term consequences were negligible. Macdonald's party returned to power in 1878 and Macdonald served as prime minister until his death in 1891, when he was succeeded by none other than John Abbott.