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The Answer is The Credit Mobilier scandal was a major political scandal that hit the United States in the 1870s. It involved the Union Pacific Railroad and the Credit Mobilier of America construction company in the building of the eastern portion of the First Transcontinental Railroad. The scandal was named after the Credit Mobilier of America company, which was formed by Union Pacific Railroad directors and insiders to essentially award construction contracts to themselves at highly inflated prices.

The scheme allowed these insiders to make exorbitant profits from the government subsidies provided for the construction of the railroad. They sold or gave shares in this company to influential congressmen in exchange for favorable legislation and to avoid investigation into their financial dealings. The scandal was exposed in 1872 and led to a congressional investigation.

The fallout from the Credit Mobilier scandal was significant. It tarnished the reputations of several high-profile politicians, including the Vice President of the United States at the time, Schuyler Colfax, and the Speaker of the House, James G. Blaine. It also contributed to the public's cynicism about the government and business corruption during the Gilded Age.

Instructions: Identify the Following Terms

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