Created in 1908 to investigate corruption in govt.  First special agents had been Secret Service.  However, some congressmen wanted friends to be agents.  Because of this, corruption occurred in FBI.

Teapot Dome Scandal- Teapot Dome was town in Wyoming in 1921,  where oil was found.  Money was exchanged for oil drilling rights.  The corruption in Congress went all the way to US Atty. Gen. Office.  At that time Hoover was approached to take over FBI.  He agreed if he could have the right to hire and fire.

Most important fact to remember- agents were unarmed until 1934.