The Credit Mobilier scandal of 1872 – a good reason to hold big business’ s and elected government’s collective feet to the fire on a regular basis.
“Crédit Mobilier of America was formed by George Francis Train, the vice-president in charge of publicity for the Union Pacific Railroad. Crédit Mobilier of America was designed to limit the liability of stockholders and maximize profits from construction with the hefty fees being paid by federal subsidies. The company also gave cheap shares of stock to members of Congress who agreed to support additional funding . . .
“It was claimed that the $72 million in contracts had been given to Crédit Mobilier for building a rail only worth $53 million. Union Pacific and other investors were left nearly bankrupt.”
Okay folks, and that was 57 years before the 1929 crash. Dubya, let’s go over the success of the “No Child Left Behind Act” again, shall we?