The first obstacle to its construction was political. Jay Cooke, an American businessman knew the potential of the Canadian West in terms of making money. Sir Hugh Allan decided to join forces with Jay Cooke and he then formed the Canadian Pacific Railway Company. This company was actually controlled by Jay Cooke. In the summer of 1872, John A Macdonald called an election. The Conservatives realized they needed more money for their campaign. In 1873, the agreement between Macdonald and Allan were made public so Maconald then got forced to resign from office.