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It was called the Crédit Mobilier Scandal. It happened in the 1860 when the company set out to build part of the railroad and swindled the US taxpayers out of $23 MILLION. All of the money went to the bank accounts of the Union Pacific directors and the Crédit Mobilier stockholders.

Came from my US history book American Anthem: Reconstitution to Present

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Q: Scandal involving the transcontinental railroad and members of Congress?
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What happened in the Credit Mobilier scandal?

Illegal manipulations were made in the construction of the transcontinental railroad.


The Credit Mobilier Scandal involved kickbacks and government corruption associated with the?

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The scandal which took place for eight (8) years beginning in 1864 and coming to light in 1872 involved the Union Pacific Railroad (UPR) and the Credit Mobilier of America (CMA) company. Stock and cash bribes were paid to congressmen in order to overlook that the same owners of the UPR and CMA were constructing the railroad falsely representing the "independent" nature of UPR selecting the construction company for the building of the first Transcontinental Railroad. In essence, CMA and UPR conspired to charge the government far more than the cost to build the railroad in order to keep the profits to themselves.


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