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 goal of the Interstate Commerce Act quizlet?

What was the main purpose of the Interstate Commerce Act of 1887? The Interstate Commerce Act was created to limit the monopolistic practices of the railroad industry.

Why were scabs unpopular with striking workers during the late 1800?

They were unpopular during the late 1800’s because a “scab” or “strike-bearer” is a person who worked during a strike. They can be individuals who aren’t employed by the company prior to the strike, but are hired after or during the strike to maintain the operation of a company.

What did the Crédit Mobilier scandal hurt?

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 was the Credit Mobilier who was involved in it quizlet?

a joint-stock company organized in 1863 and reorganized in 1867 to build the Union Pacific Railroad. It was involved in a scandal in 1872 in which high government officials were accused of accepting bribes.

What Caused the Credit Mobilier scandal?

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 was the main goal of the Interstate Commerce Act?

The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The Act required that railroad rates be “reasonable and just,” but did not empower the government to fix specific rates.

What was the effect of the Interstate Commerce Act quizlet?

Congressional legislation that established the Interstate Commerce Commission, compelled railroads to publish standard rates, and prohibited rebates and pools. Railroads quickly became adept at using the Act to achieve their own ends, but the Act gave the government an important means to regulate big business.

What was the purpose of the Credit Mobilier?

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 was the significance of the Credit Mobilier scandal?

Crédit Mobilier. 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 did congressmen get from the Credit Mobilier company?

They offered congressmen stock in the Credit Mobilier company, which was basically a guarantee of a share of the public money that would be funneled through the company. In return for the stock options, the congressmen granted the company generous government subsidies and vast land grants.

What was the Union Pacific Railroad Credit Mobilier scandal?

In 1867, the Union Pacific Railroad created a dummy corporation to divert public funds. 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.