What was the purpose of the Credit Mobilier scandal?

The Credit Mobilier scandal primarily served the purpose of siphoning funds through a false company. Established in the 1860s, Credit Mobilier was a construction company set up by Union Pacific Railroad insiders. They created the company to profit from the construction of the transcontinental railroad, and in doing so, they engaged in deceptive practices to inflate costs and secure more funding than necessary.

By manipulating contracts and charging excessive fees for construction, the developers diverted substantial amounts of money from the federal government and investors into their own pockets. This scandal highlighted the rampant corruption and mismanagement that plagued the railroad industry during this period, ultimately leading to a significant loss of public trust in both the railroad companies and the government officials involved in the oversight of such ventures.

The other options do not accurately reflect the nature of the scandal. Providing honest accounting of railroad profits or granting funds for legitimate organizations contradicts the essence of Credit Mobilier, which was built on deceit. Similarly, while the construction of infrastructure like bridges and tunnels is associated with railroads, the scandal itself revolved around fraud rather than legitimate support for such construction endeavors.