By 1878, the Cobourg Car Works added First Class Passenger Coach Construction to its operations putting it into direct competition with the American firms of the Pullman Company and the Barney and Smith Car Company. In 1879, the Canadian government passed legislation to restrict American Imports of manufactured goods and products. Called the "Tilley Tariff", duties and taxes where put on the importation of products from outside of Canada. This tariff allowed the Cobourg Car Works to flourish, as they could provide an equivalent product at a cheaper cost to railway companies.