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Credit Mobilier Scandal

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A scandal between the Union Pacific Railroad and Crédit Mobilier of America.

Exact DefinitionEdit

This scandal erupted in 1872 when Union Pacific Railroad insiders formed the Credit Mobilier construction company and then hired themselves at inflated prices to build the railroad line, earning high dividends. When it was found out that government officials were paid to stay quiet about the illicit business, some officials were censured.


Another example of the gilded age and corruption. The government had little economic regulations over big businesses so scandals or monopolies such as this were common.

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