USA HISTORY

Detailed explanation-1: -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.

Detailed explanation-2: -What was one reason the United States government gave subsidies and land grants to railroad companies in the 1800s? The government granted land to railroads to create railroad networks that spanned the entire country.

Detailed explanation-3: -Government grants to build railroads resulted in large scale production because many of the great wealth the railroad entrepreneurs got, led to bribery and greediness. To get more grants some investors began bribing congress. This caused investors to sign contracts with themselves, railroads had to pay off the bills.