What was the Credit Mobilier scandal Apush?

Credit Mobilier Scandal. 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. Whiskey Ring.

What was the Credit Mobilier who was involved in it quizlet?

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.

What was the Credit Mobilier scandal other scandals quizlet?

Other scandals? 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.

What happened on Black Friday Apush?

On “Black Friday,” September 24, 1869, the two bought a large amount of gold, planning to sell it for a profit. In order to lower the high price of gold, the Treasury was forced to sell gold from its reserves. Sept 24, 1869 the result of the Fisk and Gould scandal, the collapse of the market.

What did the Credit Mobilier scandal involved?

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 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 did the Credit Mobilier scandal hurt?

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.

Which two groups were involved in the Credit Mobilier scandal?

The House censured two of its members who were involved in the scandal: Oakes Ames of Massachusetts and James Brooks of New York.

What was the main purpose of Crédit Mobilier?

How was the Credit Mobilier scandal resolved?

That resolved the issue, if not tensions. In October 1867, Oliver and Oakes Ames grudgingly reinstated Durant; he in turn endorsed an Ames construction contract that sent money from those miles flowing retroactively into their pockets. On the strength of renewed profits and a declared dividend, Crédit Mobilier boomed.

What Caused the Credit Mobilier scandal?

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.

What was the result of the Credit Mobilier scandal?

Who was accused of the Credit Mobilier scandal?

The two Vice Presidents, Henry Wilson and Schuyler Colfax , and Representative James A. Garfield were also accused of being involved in the Credit Mobilier scandal. However, Garfield did not agree with the accusations and was later elected president. The scandal showed how corrupted the Gilded Age politicians were.

Who was involved in the Credit Mobilier scandal?

Thomas Durant, one of the founders of the Credit Mobilier company. The Crédit Mobilier scandal of 1867, which came to public attention in 1872, involved the Union Pacific Railroad 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 Credit Mobilier scandal about?

Credit Mobilier Scandal. Summary and Definition of Credit Mobilier Scandal. Definition and Summary: The Credit Mobilier Scandal of 1872 / 1873 involved the illegal manipulation of contracts by the Union Pacific Railroad and the Credit Mobilier construction company.

Who was president during the Credit Mobilier scandals?

The Union Pacific Railroad’s Credit Mobilier scandal during President Ulysses S. Grant’s administration lead to a congressional inquiry that included the following testimony taken from Collis Potter Huntington of the Central Pacific Railroad so that the practices of the two railroads could be compared by the committee.