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What kind of subsidies in land did the government give railroad companies to help pay for the first transcontinental railroad?

1 Answer

3 votes

The government give railroad companies to help pay for the first transcontinental railroad as cash subsidies and land grants.

Step-by-step explanation:

The transcontinental railroad connects the middle-west and west of the country from Nebraska to California. The banks were feared to provide loans since the dept to be repaid will take a long time. So the government used public land to yield more money by selling them to private sectors.

Also, building railroads was too risky and the conditions(weather and working for 15 hours continuously) would be difficult and too dangerous. Also, private companies that agreed to work on this project were provided with cash and land grants by the acts by Congress.

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User Tliff
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