What was the Credit Mobilier scandal quizlet?

What was the Crédit Mobilier scandal quizlet?

a scandal that formed when a group of union pacific railroad insiders formed the credit mibilier construction company and then hired themselves to build the railroad with inflated wages. they bribed several congressmen and the vide president to keep the scandal from going public.

What was the Crédit Mobilier scandal in simple terms?

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 was the main purpose of the Credit Mobilier?

Crédit Mobilier was a sham construction company chartered to build the Union Pacific Railroad by financing it with unmarketable bonds. It also provided a mechanism to dispense the immense profits from building the railroad to the board of directors and its shareholders.

What was Credit Mobilier and why was it bad?

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. The Credit Mobilier Scandal of 1872 represents the broader political corruption of the Gilded Age.

What was the Whiskey Ring scandal quizlet?

It was involved in a scandal in 1872 in which high government officials were accused of accepting bribes. During the Grant administration, a group of officials were importing whiskey and using their offices to avoid paying the taxes on it, cheating the treasury out of millions of dollars.

What was Credit Mobilier quizlet?

Credit Mobilier. the 1867-1868 scandal in which Union Pacific executives formed their own railroad construction company, then hired and overpaid themselves to build their own railroad.

Why did the Credit Mobilier scandal happen?

The Union Pacific contracted with Crédit Mobilier to build the railway at rates greatly above cost. These construction contracts brought high profits to Crédit Mobilier, which was owned by Durant and the Union Pacific’s other directors and principal stockholders.

Why did the Crédit Mobilier scandal happen?

What effect did Credit Mobilier have?

The Crédit Mobilier scandal of 1872-1873 damaged the careers of several Gilded Age politicians. Major stockholders in the Union Pacific Railroad formed a company, the Crédit Mobilier of America, and gave it contracts to build the railroad. They sold or gave shares in this construction to influential congressmen.

What was the main issue of the Whiskey Ring scandal of 1875 quizlet?

In the United States, the Whiskey Ring was a scandal, exposed in 1875, involving diversion of tax revenues in a conspiracy among government agents, politicians, whiskey distillers, and distributors.

What was the main issue of the Whiskey Ring scandal of 1875?

The Whiskey Ring was an American scandal, exposed in 1875, involving the diversion of tax revenues in a conspiracy among government agents, politicians, whiskey distillers, and distributors.

What was the Credit Mobilier of America scandal?

Crédit Mobilier of America scandal. The Crédit Mobilier scandal of 1867, which came to public attention in 1872, involved the Union Pacific Rail Road and the Crédit Mobilier of America construction company in the building of the eastern portion of the First Transcontinental Railroad. The scandal was in two parts.

What was the name of the French bank scandal?

This article is about the American railroad scandal. For the unrelated French bank, see Crédit Mobilier.

What was the Union Pacific Railroad Credit Mobilier scandal?

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.

Who was the head of the Credit Mobilier?

Credit Mobilier Scandal Fact 3: Oakes Ames, was a member of the House of Representatives from Massachusetts, and was also the head of a company called the “Credit Mobilier”. The company had been formed to build the Union Pacific Railroad.