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The credit mobilier scandal involved the corrupt construction of what

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The Credit Mobilier Scandal: A Corrupt Construction Revelation

The Credit Mobilier scandal was a notorious event in American history that involved the corrupt construction of what should have been a groundbreaking project. This scandal had far-reaching consequences and shed light on the unethical practices of the era. In this review, we will explore the positive aspects of the scandal, its benefits, and the conditions in which it can be used as a case study.

I. Positive Aspects of the Credit Mobilier Scandal:

  1. Exposing Corruption: The scandal revealed the extent of corruption within the construction industry and highlighted the need for transparency and accountability.
  2. Raising Public Awareness: The revelations from the scandal sparked public outrage and led to demands for stricter regulations in business and politics.
  3. Promoting Reform Efforts: The scandal acted as a catalyst for reform movements, ultimately leading to the passage of legislation aimed at combating corruption and improving oversight.

II. Benefits of the Credit Mobilier Scandal:

  1. Strengthening Democracy: The scandal underscored the importance of a transparent and accountable government, prompting citizens to engage more actively in the democratic process.
  2. Enhancing Corporate Governance: The exposure of corrupt practices within the Credit Mobilier company brought attention to the need for

The Credit Mobilier Scandal of 1872 was the exposure of a fraudulent financial scheme involving many U.S. politicians and the Union Pacific Railroad in the 1860s. This scandal allowed those involved to amass fortunes by lining their own pockets with money intended to fund the construction of the railroad.

What did the company Crédit Mobilier do?

Crédit Mobilier Scandal, in U.S. history, illegal manipulation of contracts by a construction and finance company associated with the building of the Union Pacific Railroad (1865–69); the incident established Crédit Mobilier of America as a symbol of post-Civil War corruption.

What happened in the Credit Mobilier scandal quizlet?

It was involved in a scandal in 1872 in which high government officials were accused of accepting bribes. The bribery arose from the fact that Credit Mobilier was used to overcharge the price of constructing the railroad massively.

What was the Crédit Mobilier founded in 1852?

The Crédit Mobilier (officially the Société Générale du Crédit Mobilier, lit. 'general company for movable [collateral-backed] credit') was a French banking company created in 1852 by the Pereire brothers, and one of the world's most significant and influential financial institutions in the mid-19th century.

How did railroad owners use Crédit Mobilier to make profits?

How did railroad owners use Credit Mobilier to make huge, undeserved profits? Answer: By charging too much for railroad construction and paying off government officials.

What scandal involved several members of Congress who had bought shares in a construction company?

In 1867, Crédit Mobilier replaced Thomas Durant with Oakes Ames. Ames, a member of Congress, distributed cash bribes and discounted shares of Crédit Mobilier stock to fellow congressmen and other politicians in exchange for votes and actions favorable to the Union Pacific.

What was the Central Pacific Railroad scandal?

The scandal involved a complex business arrangement whereby a few individuals awarded lucrative government contracts to themselves for the construction of the railroad. In the process, those involved realized enormous profits while defrauding the U.S. government and bankrupting the Union Pacific.

Frequently Asked Questions

Which organization did Congress grant the power to punish dishonest dealers of stocks?

To monitor the newly structured securities industry, Congress authorized the formation of the SEC in 1934 to enforce the securities laws and protect investors.

Which bribed congressmen to get rights to build to Union Pacific Railroad?

Oakes Ames, a Republican from Massachusetts, to sell bargain shares to, and also bribe, a number of congressmen, including then Speaker of the House Schuyler Colfax, who was elected vice president on a ticket with Ulysses S.

What construction company was involved in a corruption scheme with the railroads?

Durant chartered a company named Crédit Mobilier of America to garner profits from railroad construction, guaranteeing he and other insiders would realize a fortune from the railroad without exposing themselves to the project's high-stake risks.

When congress investigated the credit mobilier construction company, it discovered

Apr 26, 2010 — The Crédit Mobilier scandal of 1872-1873 damaged the careers of several Gilded Age politicians. Major stockholders in the Union Pacific 

What were the issues facing the construction of the Transcontinental Railroad?

Each company faced unprecedented construction problems—mountains, severe weather, and the hostility of Native Americans. On May 10, 1869, in a ceremony at Promontory, Utah, the last rails were laid and the last spike driven.

FAQ

What was the scandal involving the Transcontinental Railroad and members of Congress?

Lesson Summary. In 1867, the Union Pacific Railroad created a dummy corporation to divert public funds. The Credit Mobilier company traded stock options with politicians for land grants and government subsidies. In 1872, the scandal broke and destroyed the careers of several prominent politicians.

What corruption was taking place in the railroad industry?

In the most notorious instance of corruption connected to the railroads, Union Pacific Railroad executives formed a sham construction company, Crédit Mobilier, that submitted bills for nearly double the construction cost of the eastern portion of the Transcontinental Railroad and pocketed the overcharges.

What was the controversy over the transcontinental railroad quizlet?
The building of the Transcontinental railroad had a devastating impact on the Native Americans. The Native Americans had free roam of the land for centuries and then suddenly "white man" came and destroyed that land. The land was even sacred in their religion so they did not give it up without a fight.

What was the scandal involved with Crédit Mobilier?

On September 4, 1872, the Sun broke the story. The newspaper reported that Crédit Mobilier had received $72 million in contracts for building a railroad worth only $53 million. After the revelations, the Union Pacific and other investors were left nearly bankrupt.

What was the Credit Mobilier scandal involved in quizlet?

It was involved in a scandal in 1872 in which high government officials were accused of accepting bribes. The bribery arose from the fact that Credit Mobilier was used to overcharge the price of constructing the railroad massively.

The credit mobilier scandal involved the corrupt construction of what

What was the Crédit Mobilier involved in?

The Credit Mobilier Scandal of 1872 was the exposure of a fraudulent financial scheme involving many U.S. politicians and the Union Pacific Railroad in the 1860s. This scandal allowed those involved to amass fortunes by lining their own pockets with money intended to fund the construction of the railroad.

What was the corruption in the railroad industry?

In the most notorious instance of corruption connected to the railroads, Union Pacific Railroad executives formed a sham construction company, Crédit Mobilier, that submitted bills for nearly double the construction cost of the eastern portion of the Transcontinental Railroad and pocketed the overcharges.

Who was involved in Crédit Mobilier and what was the purpose of this company quizlet?

Who was involved in Credit Mobilier, and what was the purpose of this company? Stockholders in the Union Pacific Railroad. It's purpose was to lay track at two or three times the actual cost.

What did the Credit Mobilier scandal cause?

The scandal negatively affected the careers of many politicians and nearly bankrupted Union Pacific. For decades partisan newspapers used the scandal to create widespread public distrust of Republicans, Congress, and the federal government during the Gilded Age.

  • What was the Credit Mobilier scandal of 1873?
    • The Crédit Mobilier scandal was a widespread fraudulent manipulation of contracts for the construction of a portion of America's first Transcontinental Railroad conducted from 1864 to 1867 by officials of the Union Pacific Railroad and their fictitious construction company called Crédit Mobilier of America.

  • How did railroad owners use Crédit Mobilier?
    • How did railroad owners use Credit Mobilier to make huge, undeserved profits? Answer: By charging too much for railroad construction and paying off government officials. How did the Grangers, who were largely poor farmers, do battle with the giant railroad companies?

  • What was the Crédit Mobilier quizlet?
    • Credit Mobilier. a joint-stock company organized in 1863 and reorganized in 1867 to build the Union Pacific Railroad. It was involved in a scandal in 1872 in which high government officials were accused of accepting bribes.

  • When congress investigated the crédit mobilier construction company, it discovered
    • When Congress investigated the Crédit Mobilier construction company, it discovered. several Republicans, including the vice president, accepted stock in the 

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