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 the significance of the Credit Mobilier scandal?
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 Credit 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 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
.
Why was the Credit Mobilier company created and why?
The creation of Crédit Mobilier of America was
as a deliberate façade
. … As the conspirators believed that conventional profits from the operation of the railroad could not be expected, they created the sham company to charge the U.S. government extortionate fees and expenses during the construction phase.
What was the Credit 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.
Who was president during Credit Mobilier?
Crédit Mobilier was established in 1868, during
Andrew Johnson’s
presidency.
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 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.
What was the Whiskey Ring quizlet?
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. The practice of reviving unpleasant memories from the past.
How did Credit Mobilier make its money illegally?
How did Credit Mobilier make its money illegally?
He made money by cheating American Indians living on reservations
.
What happened to Doc Durant?
In 1870 he sold almost all of his Union Pacific stock. Much of his fortune was lost in the panic of 1873. With his health deteriorating, Durant retired to the Adirondacks.
He died at North Creek
, New York, on October 15, 1885.
How did the railroad owners use Credit Mobilier to make huge undeserved 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 was the Credit Mobilier company?
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.
How was the Credit Mobilier 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.
For what reasons were farmers angry at the railroad companies?
RAILROAD ABUSES Farmers were angry with railroad companies for a host of reasons. They
were upset by misuse of government land grants
, which the railroads sold to other businesses rather than to settlers, as the government intended.
