---
title: "Credit Mobilier — APUSH Definition & Exam Guide"
description: "Credit Mobilier was the 1872 scandal where Union Pacific insiders skimmed railroad construction money and bribed Congress, a go-to APUSH example of Gilded Age corruption."
canonical: "https://fiveable.me/apush/key-terms/credit-mobilier"
type: "key-term"
subject: "AP US History"
---

# Credit Mobilier — APUSH Definition & Exam Guide

## Definition

Credit Mobilier was a major financial scandal in the United States during the 1860s involving the Union Pacific Railroad and the construction company it formed. This scandal exposed widespread corruption as investors, including high-ranking government officials, profited from inflated contracts and kickbacks, illustrating the ethical dilemmas and greed prevalent during the era of rapid industrial growth and the Gilded Age.

## Related Study Guides

- [6.1 Context of Industrialization and the Gilded Age](/apush/unit-6/context-industrialization-gilded-age/study-guide/xj5s6yDrmKT7LxrUWvl2)

## Review

### Related Terms

- [Union Pacific Railroad](/apush/key-terms/union-pacific-railroad): A key railway company involved in the construction of the first transcontinental railroad, it played a significant role in connecting the eastern and western United States.
- [Gilded Age](/apush/key-terms/gilded-age): A period in late 19th-century America characterized by rapid economic growth, industrialization, and political corruption, where wealth disparity became pronounced.
- [Political Corruption](/apush/key-terms/political-corruption): The use of power by government officials for illegitimate private gain, often involving bribery, kickbacks, and manipulation of policies.

### Key Facts

- The Credit Mobilier scandal involved the Union Pacific Railroad's creation of a construction company that charged excessive fees for building the railroad.
- In an effort to cover their tracks, Credit Mobilier executives distributed shares of their company to influential Congress members to buy their silence on the fraud.
- The scandal came to public attention in 1872, leading to investigations that revealed high-profile politicians were implicated.
- This event highlighted the rampant corruption that characterized the Gilded Age and fueled public demand for reforms in government and business practices.
- As a result of the scandal, several politicians were censured or faced repercussions, marking a significant moment in American political history.

### How did Credit Mobilier reflect the broader issues of corruption during the Gilded Age?

Credit Mobilier epitomized the corruption rampant in the Gilded Age by showcasing how businesses manipulated politics for profit. The involvement of Congress members in accepting bribes in the form of stock shares illustrated the unethical relationships between corporations and government. This scandal not only shed light on individual corrupt practices but also revealed a systemic problem where financial gain often took precedence over ethical governance.

### Discuss the implications of the Credit Mobilier scandal on public perception of railroads and government regulation.

The Credit Mobilier scandal significantly shifted public perception towards railroads, portraying them as corrupt entities profiting at taxpayers' expense. This heightened awareness led to calls for increased regulation and oversight of railroad companies to prevent similar abuses. The outrage from this scandal ultimately contributed to future regulatory measures aimed at curbing corporate malfeasance and restoring public trust in government institutions.

### Evaluate how Credit Mobilier influenced subsequent reforms in American politics and industry.

The fallout from Credit Mobilier prompted a reevaluation of political ethics and accountability in American politics. This scandal acted as a catalyst for reform movements that sought to address corruption by advocating for stricter campaign finance laws and greater transparency in government dealings. Furthermore, it set a precedent for future investigations into corporate practices, leading to more robust regulatory frameworks designed to protect public interests against corporate exploitation.