The Credit Mobilier scandal severely affected the U.S. government. It was found, the Credit Mobilier Company was stealing from the Union Pacific Railroad. The scandal that continued between 1872 and 1873 directly affected the economy, politics, and the local community in the United States. The scandal was impactful enough to damage reputations and political careers of high-profile congress members, including the vice president. Investigations revealed that officials in the Union Pacific Railroad created a company, aka Credit Mobilier of America, and issued construction contracts to the firm for railroad development. It was further found that shares from the company were sold and offered to influential politicians holding office at that time.
The Credit Mobilier firm tried its best to cover up the corruption by selling stocks at hefty discounts to U.S. members of Congress, including Vice President Schuyler Colfax and the speaker of the house, James G. Blaine. Offering shares to these politicians was a direct attempt at camouflaging the corruption and theft by the Mobilier officials. The congressmen further facilitated the crime by approving federal amenities and subsidies as part of the railroad construction costs. They paid little attention to the actual building expenses that allowed the Mobilier officials to make huge profits and stash as much money as they could.
The news of the scandal was posted by various publications, especially the New York Sun newspaper that revealed the crimes being committed undercover. The speaker of the house immediately set up an investigation committee. As more of the scandal got uncovered, more officials were found to be a part of the crime. The state governance was affected, as was the reputation of dominant Congress members, including Colfax and Blain.