Credit Mobilier Scandal

Definition

The Credit Mobilier Scandal was a major political scandal in the United States during the 1870s involving the Union Pacific Railroad and a construction company, Credit Mobilier, which was established to build the railroad. This scandal revealed widespread corruption and bribery, highlighting the close ties between business interests and government officials during a time of rapid industrial growth and westward expansion.

5 Must Know Facts For Your Next Test

1. The scandal involved Credit Mobilier, which was created by Union Pacific Railroad executives to siphon off profits from federal contracts for building the railroad.
2. Government officials, including members of Congress, were implicated in accepting bribes in the form of discounted shares of Credit Mobilier stock.
3. The scandal became public in 1872 when it was reported that Congress members had benefited financially from their ties to Credit Mobilier.
4. The fallout from the scandal damaged the reputation of the Republican Party and raised public awareness about political corruption.
5. The investigation led to congressional hearings that exposed unethical practices, but ultimately few consequences for those involved.

Review Questions

• How did the Credit Mobilier Scandal reflect the political climate of the Gilded Age in America?
  • The Credit Mobilier Scandal exemplified the rampant corruption and collusion between business interests and government officials during the Gilded Age. This period was marked by significant economic growth and expansion, but also by political scandals that revealed how businessmen exploited their connections with politicians for personal gain. The scandal demonstrated the weaknesses in governance and accountability, as powerful figures prioritized profit over public interest.
• Evaluate the impact of the Credit Mobilier Scandal on public perception of government integrity and political parties at the time.
  • The Credit Mobilier Scandal significantly eroded public trust in government integrity and the Republican Party, which was in power during this period. As details emerged about bribery and unethical behavior among influential politicians, many citizens began to question the motives of their leaders. This skepticism contributed to a growing demand for reform, influencing subsequent political movements aimed at reducing corruption and increasing transparency in government.
• Assess how the Credit Mobilier Scandal set a precedent for future investigations into corporate influence in politics and its implications for American democracy.
  • The Credit Mobilier Scandal set a crucial precedent for future investigations into corporate influence in politics by highlighting the dangers posed when business interests infiltrate government. It prompted discussions about ethical standards for public officials and sparked movements aimed at reforming campaign finance laws. The implications for American democracy were profound, as it underscored the need for regulatory measures to ensure that government serves the public good rather than private interests, shaping subsequent policy discussions on political ethics.

Related terms

Union Pacific Railroad:

A major American railroad that was part of the first transcontinental railroad, built with substantial federal support and known for its significant influence on westward expansion.

Gilded Age:

A period in American history from the 1870s to about 1900 characterized by rapid economic growth, industrialization, and significant social issues, including corruption and inequality.

Bribery:

The act of giving or receiving something of value to influence the actions of an official or other person in charge of a public or legal duty.