The second half of the nineteenth century was the era of railroad land grants. Between 1850 and 1872 extensive cessions of public lands were made to states and to railroad companies to promote railroad construction.
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In 1862 the Central Pacific and Union Pacific railroads were orginally promised ten miles of checkerboard land on each side of the tracks, but to help meet expenses, ten was changed to twenty miles on each side in 1864.
To encourage development of rail lines westward, the government offered railroad companies massive land grants and bonds. Railroads received millions of acres of public lands and sold that land to generate money for the construction of the railroads.
: a permanent road having a line of rails fixed to ties and laid on a roadbed and providing a track for cars or equipment drawn by locomotives or propelled by self-contained motors. also : such a road and its assets constituting a single property. railroad. 2 of 2.