The Railroad Question: A historical and practical treatise on railroads, and remedies for their abusesLarrabee, William
History
The Railroad Question: A historical and practical treatise on railroads, and remedies for their abuses
Larrabee, William
Railroads; Railroads -- United States; Railroads and state -- United States
The wisdom of the land-grant policy has been questioned. When these
grants were made it was believed by many that railroads would not and
could not be built in the West without such aid. While others did not
share this opinion, they at least supposed that land grants would
greatly stimulate railroad enterprise and lead to the early construction
of the lines thus favored.
The land grant of the Mississippi and Missouri Railroad was a mere
donation for that part of the line which was already completed at the
time the grant was made; and the extension of this line, as well as the
construction of the other lines to which the grant applied, was not
made as fast as had been anticipated. The price of all Government lands
lying outside of the land-grant belts was $1.25 per acre. To reimburse
the public treasury for the loss resulting from these grants, the price
of lands situated within the land-grant belts was advanced to $2.50 per
acre, practically compelling the purchasers of the even-numbered
sections of land, instead of the Government, to make the donation to the
railroads, it being supposed that the benefits resulting to those
regions from the immediate construction of railroads would
correspondingly enhance the value of the alternate sections of land
reserved by the Government. Designing men soon saw the advantages which
the situation offered. They combined with their friends to organize
companies for the construction of the land-grant roads, built a small
portion of the proposed line, to hold the grant, and then awaited
further developments, or rather the settlement of the country beyond.
There are those who believe that the doubling of the price of Government
land within the belt of the proposed land-grant roads greatly retarded
immigration and with it the construction of roads. They hold that, had
no grant whatever been made to any railroad company and had equal
competition in railroad construction been permitted, the Iowa through
lines, instead of following, would have led, the tide of immigration.
Public-domain text, read in full here on John Shaqi.
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