the Temporary North-West Council the first governing assembly of the North-West Territories. Smith was one of the few people who served on two provincial/territorial legislatures and the federal parliament at the same time. Smith broke with Macdonald in 1873, after the Prime Minister had delayed reimbursement for Smith's earlier expenses in Red River. Smith voted to censure the government in a motion over the Pacific Scandal and was thereby partly responsible for the government's defeat. Smith remained an Independent Conservative, but his relations with the official Conservative representatives were often strained in later years. Manitoba abolished the "dual mandate" in 1873, and Smith resigned from the provincial legislature in early 1874 (the first person to do so). In the Canadian general election of 1874, Smith defeated Liberal candidate Andrew G. B. Bannatyne by 329 votes to 225. The Manitoba Free Press, at the time, suggested that Smith had encouraged Bannatyne's candidacy to prevent more serious opposition from emerging. In 1873, the HBC separated its fur trade and land sales operations, putting Smith in charge of the latter. Smith had developed an interest in railway expansion through his work with the HBC, and in 1875 was among the incorporators of the Manitoba Western Railway. He was also a partner in the Red River Transportation Company, which gained control over the St. Paul and Pacific Railroad in March 1878. His business ventures increasingly dominated his labours, and he formally resigned as land commissioner in early 1879, though he remained a leading figure in the HBC's operations for another 30 years. Smith faced a serious electoral challenge from former Manitoba Lieutenant Governor Alexander Morris in the general election of 1878. Aided on this occasion by the Manitoba Free Press, Smith defeated Morris by 555 votes to 546; local Conservative organizers protested the result, and it was overturned two years later. On 10 September 1880, Smith was defeated by former Winnipeg Mayor Thomas Scott, 735 votes to 577. Corporate leader In May 1879, Smith became a director in the St. Paul, Minneapolis and Manitoba Railway Company, having control over 20% of its shares. He was subsequently a leading figure in the creation of the Canadian Pacific Railway, although he was not appointed as a director of the organization until 1883 because of his lingering animosity with Sir John A. Macdonald (who had again become prime minister in 1878). During his tenure on the board,