Admin Who was involved in the Credit Mobilier and what was the purpose of this company?
Crédit Mobilier was a sham construction company chartered to build the Union Pacific Railroad by financing it with unmarketable bonds. It also provided a mechanism to dispense the immense profits from building the railroad to the board of directors and its shareholders.
Who created the Credit Mobilier scandal?
Grant. 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.
Who ran Credit Mobilier?
the Union Pacific Corporation
Since 1969 it has been owned by the Union Pacific Corporation, a holding company. In 1982 the Union Pacific merged with two other railroads, the Missouri Pacific Railroad Company (headquartered in St.
What is the Interstate Commerce Act do?
On February 4, 1887, both the Senate and House passed the Interstate Commerce Act, which applied the Constitution’s “Commerce Clause”—granting Congress the power “to Regulate Commerce with foreign Nations, and among the several States”—to regulating railroad rates.
What was the Union Pacific Scandal?
Crédit Mobilier Scandal, in U.S. history, illegal manipulation of contracts by a construction and finance company associated with the building of the Union Pacific Railroad (1865–69); the incident established Crédit Mobilier of America as a symbol of post-Civil War corruption.
What happened to the owners of Credit Mobilier?
Since 1969 it has been owned by the Union Pacific Corporation, a holding company. In 1982 the Union Pacific merged with two other railroads, the Missouri Pacific Railroad Company (headquartered in St.
What industry did the Interstate Commerce Act target?
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.