The Credit Mobilier was a construction company involved in a significant scandal during the Grant administration. It was formed by officers of the Union Pacific Railroad and essentially contracted itself to build the railroad line, grossly overcharging the federal government and its investors. This overcharging was facilitated by the company’s control over Union Pacific, allowing for inflated contracts and substantial profits for its shareholders. A key aspect of the scheme was the distribution of shares to influential members of Congress, effectively bribing them to overlook the financial improprieties.
The significance of this affair stems from its exposure of corruption at the highest levels of government and within a burgeoning industry. It highlighted the dangers of unchecked corporate power during the Gilded Age and fueled public distrust in politicians and big business. The scandal revealed how easily railroad companies could manipulate the system to enrich themselves at the expense of taxpayers and investors. The ramifications included damaged reputations for numerous politicians and a strengthened call for greater government regulation of railroads and other industries.
