Background
During the construction of the Union Pacific Railroad, insiders formed the Crédit Mobilier company and awarded themselves highly profitable government contracts to build the railroad at inflated prices. Shares were sold or given to influential members of Congress to prevent scrutiny.
Events
The scandal came to light in 1872 when investigative journalists exposed the bribery scheme. Several members of Congress, including the Vice President and the Speaker of the House, were implicated. Public outrage ensued over the corruption and misuse of government funds during the Gilded Age.
Impact & Legacy
The Crédit Mobilier Scandal highlighted widespread corruption in government and the railroad industry, damaged public trust, and contributed to reform movements seeking to limit corporate influence on politics. It remains a defining example of Gilded Age corruption.