Credit Mobilier

mo-be'lier, in United States history, a corporation chartered to build railways. It was an early instance of graft on a large scale. The company was formed in Pennsylvania in 1863 with a capital of $2,500,000. The name adopted was that of a former French banking company with a somewhat similar history. In 1867 the stock was increased to $3,750,000, and the company undertook the building of the Union Pacific Railroad. For a few years enormous dividends were paid and the stock rose rapidly in value. When the exposure came it was found that many honored members of Congress--men who had voted large national bonuses to assist in building the railroad--were stockholders in the Credit Mobilier, and that the company had received outrageous prices for its work. In other words, the organizers of the Credit Mobilier gave stock to senators and representatives in exchange for votes that granted the Union Pacific securities wherewith to pay three prices for the building of the road. A committee of the Senate recommended the expulsion of one member; but no action was taken. A committee of the House recommended the expulsion of two members; but the House contented itself with votes of censure. A number of congressmen were, however, retired from public life; and a connection with this scandal (probably innocent for the most part) cost James G. Blaine the election to the presidency.