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.