C. The railroad companies made a larger profit due to the fact they did not have to pay for the land.
The land grants given to the railroad companies by the federal government enabled the companies to acquire large tracts of land without having to pay for it, which in turn helped them to expand their rail networks and increase their profits. This was a key factor in the development and settlement of the West, as the railroad companies were able to transport people, goods, and resources more efficiently and economically than other forms of transportation, such as covered wagons. While the federal government may have made some money off the interest of the grants, the primary result of the land grants was the expansion of the railroad industry and the settlement of the West.