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118 to secure additional advantages through national legislation. This attempt resulted in what has come to be known as the Crédit Mobilier scandal. An investigation by Congress disclosed a shameful scandal involving the bribing of a number of its members. The inquiry culminated in a report recommending the impeachment of two Congressmen. In addition to this, so improvidently, recklessly, and dishonestly were the finances of the Union Pacific managed that it passed through two receiverships before it finally reached a position of stable financial organization.

While the Central Pacific was never permitted by its promoters to reach a condition of bankruptcy, it is a well-known fact that the four men who promoted it organized the "Contract and Finance Company," which acted as an intermediary between the railroad company and the Government, doing the construction work, and collecting the cash subsidy. When the road was finished and put into operation, it was found that the organizers of this construction company, who were men of very moderate means when they undertook the enterprise, had all become millionaires. This fact, together with the scandals which were unearthed by government investigation of the Union Pacific, suggested similar investigation of the Central Pacific construction. When this investigation took place and it became necessary