What happened as a result 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 happened in the Credit Mobilier?
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 Credit Mobilier scandal quizlet?
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 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 did the Crédit Mobilier scandal start?
First, a fraudulent company, Crédit Mobilier of America, was created by Union Pacific executives to greatly inflate construction costs. Though the railroad cost only $50 million to build, Crédit Mobilier billed $94 million and Union Pacific executives pocketed the excess $44 million.
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 Credit Mobilier scandal start?
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 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.
Who was the founder of Crédit Mobilier bank?
the Pereire brothers
It was permitted to issue obligations up to ten times its assets – 600 million francs of debt for 60 million francs of equity. It was founded by the Pereire brothers with a view to countering James Mayer Rothschild’s alliance with the industrialist Paulin Talabot regarding competition for the railway expansion.
Is Doc Durant a real person?
Thomas Clark Durant, M.D. Thomas Clark Durant (February 6, 1820 – October 5, 1885) was an American physician, businessman, and financier. He was vice-president of the Union Pacific Railroad (UP) in 1869 when it met with the Central Pacific railroad at Promontory Summit in Utah Territory.
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 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.
What is the Credit Mobilier?
Credit mobilier. a joint stock company, formed for general banking business, or for the construction of public works, by means of loans on personal estate, after the manner of the credit foncier on real estate. In practice, however, this distinction has not been strictly observed.