1. Land Grant System- offered each railroad company land
2. Companies sold off their excess land to settlers, real estate agents, and businesses- able to cover all building costs because of this.
The rapid expansion of the railroads in the late 1800´s was encouraged by the goverment through land grants from the federal Government. On receiving these public lands the railroad companies were able to construct the railroads on such land, leaving a surplus of land that they could sell, which financed construction itself.
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