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Credit MobilierIn 1872, the Credit Mobilier of America Scandal emerged involving the construction company of Credit Mobilier of America and the Union Pacific Railroad. George Francis Train is the one who had formed the Credit Mobilier of America . He was the vice president who takes in charge of the publicity of the Union Pacific Railroad. The company of Credit Mobilier of America was formed to maximize the profits from the construction and to limit the liability of the stockholders. It also acts as the sole bidder for the particular construction contracts from the Union Pacific Railroad. However in 1864, 1,074 kilometers of the transcontinental railroad to was given of building whereas the hefty fees were paid by the federal subsidiaries. Also, the Credit Mobilier of America provides cheap stock shares to the members of Congress who had agreed of supporting additional funds. Apparently, Dr. William Coles Keeter was replaced in 1867 by Congressman Oakes Ames as the president of the Credit Mobilier of America. In the same year, Ames also allowed members of the Congress to buy shares at face instead of buying as a market value. The same members of the Congress who purchased the shares also voted for the government funds in covering the inflated charges of the Credit Mobilier of America. These actions of Ames had become as one of the popular examples of grafts in the history of America . The story of graft above concerning the Credit Mobilier of America was introduced to the public arena during the election campaign for presidency of the year 1872. It was published on the newspaper of New York Sun, which act against Ulysses S. Grant's re-election. The story was supported by the leaked compromising letters issued by Henry Simpson McComb to the New York Sun newspaper. McComb was a future executive of the Illinois Central Railroad.
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