Question

In which example of corruption under president grant did the union pacific railroad use government money to make money from its own stock?

Answer 1

the correct answer is credit mobilier

Answer 2

Credit Mobilier

Step-by-step explanation:

A sham company called Credit Mobilier was created by Thomas Durant, an executive of Union Pacific, by selling his own work to the railroad and charging and extremely high price. Union Pacific was backed by the federal government back then.

Then Oliver Ames became president of Union Pacific and with the help of his brother, representative Oakes Ames, distributed Credit Mobilier stock to two senators and 9 more representatives.

Finally the New York Sun exposed the illegal activity and after Congress investigated Credit Mobilier scam, they discovered 14 legislators had received stock including the vice president Schuyler Colfax and James Garfield, who later became president.