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How did the Credit Mobilier scandal affect the government?

How did the Crédit Mobilier scandal affect the government?

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.

How might have land grants contributed to the Crédit Mobilier scandal?

How might land grants have contributed to the Crédit Mobilier scandal? The money and land used to build the Union Pacific came partly from the federal government. Some government officials decided to take advantage of this to their own profit. By submitting inflated bills, the company took money dishonestly.

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 did the Crédit Mobilier scandal involved 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. You just studied 9 terms!

What was the Crédit Mobilier’s role in the development of the transcontinental railroad?

What was the Crédit Mobilier’s role in the development of the transcontinental railroad? It was a vehicle used by Union Pacific promoters to funnel government bond and contract money into their own pockets. Which of the following tribes fought in the Battle of the Little Bighorn?

What did the Crédit Mobilier scandal involve?

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.

How did land grants from the US government to railroad companies lead to corruption Land Grant?

How did government grants to build railroads result in large-scale corruption? The robber barons bribed the congress because they wanted more land grants. What advantages do large corporations have on small businesses? The corporations get more money so the employees might have better wages.

What did the Credit Mobilier scandal involve?

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.

How is the Credit Mobilier scandal an example of graft?

Ames, still 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. Ames’s actions became one of the best-known examples of graft in American history.

How did the American public react to the Crédit Mobilier scandal Why?

The scandal negatively affected the careers of many politicians and nearly bankrupted Union Pacific. The scandal caused widespread public distrust of Congress and the federal government during the Gilded Age.

What happened after land grants were given to the railroads?

1. Land grants given to the railroads: The railroads sold some of their land to farmers, thus helping to increase the amount of farming in the West. Also, since the railroads passed through many farming communities, the goods grown on the farms could more easily be sold & shipped to states across the country.