Final answer:
The Credit Mobilier Scandal was a bribery and corruption scandal related to the unethical use of government funds in the construction of the transcontinental railroad by the Union Pacific Railroad company, with several high-ranking government officials implicated in the scandal.
Step-by-step explanation:
The Credit Mobilier Scandal involved the Union Pacific Railroad company which was commissioned by the U.S. federal government to construct the transcontinental railroad during the Civil War. Crédit Mobilier of America was paid by the Union Pacific to construct the railroad, but in an unethical move, the company used those funds to buy Union Pacific's bonds which were then sold for significant profit. This scandal, which came into public light in 1872, further implicated government officials including Vice President Schuyler Colfax and some members of Congress, who had been financially bribed by Crédit Mobilier to prevent an inquiry. Such an act of corruption further undermined public faith in the government, and questions were raised about the preferable size and role of the federal government.
Learn more about Credit Mobilier Scandal