USA HISTORY

Detailed explanation-1: -In 1862 the federal government offerred land grants for building transcontinental railroads. The expectation was the railroads would quickly sell the land to settlers to raise the money to pay for the building of the railroad.

Detailed explanation-2: -The rail line was built by three private companies over public lands provided by extensive US land grants. Building was financed by both state and US government subsidy bonds as well as by company issued mortgage bonds.

Detailed explanation-3: -Receiving millions of acres of public lands from Congress, the railroads were assured land on which to lay the tracks and land to sell, the proceeds of which helped companies finance the construction of their railroads.

Detailed explanation-4: -Cash poor during the Civil War, the government made land grants to the railroads to insure the construction of a transcontinental railroad, which they then sold at a profit. In 1862, President Abraham Lincoln signed the Homestead Act and created opportunity for the 372, 000 families that poured onto the prairies.