Terms in this set (6) How did the government encourage the building of the transcontinental railroad? The government encouraged the building of the transcontinental railroad by passing the Pacific Railway Act in 1862 and by offering land to railroad companies for every mile of track laid by that railroad company.

Between 1850 and 1872 extensive cessions of public lands were made to states and to railroad companies to promote railroad construction. [18] Usually the companies received from the federal government, in twenty- or fifty-mile strips, alternate sections of public land for each mile of track that was built.

Receiving millions of acres of public lands from Congress, the railroads were assured land on which to lay the tracks and land to sell, the proceeds of which helped companies finance the construction of their railroads. Not all railroads were built with government assistance, however.

Each railroad received its right-of-way along with a land grant of ten alternating sections on both sides of every mile of track (about 12,800 acres per mile); the government retained the sections in between.

The total of public land grants given to the railroads by states and the federal government was about 180 million acres. At the time, the value of this land was about one dollar per acre, which was the average price realized by the government for sales in the land grant states during that period.

Railroad grants Unlike per-mile subsidies which encouraged fast but shoddy track-laying, land grants encouraged higher quality work, since the railroads could increase the value of the land by building better track.

The government offered each company land along it’s right-of-way in order to increase the level of competition between them. Land Grants were given to railroad companies and allowed them to sell land to settlers, real estate companies, and other businesses to raise the money they needed to build the railroad.

These men and the companies behind them frequently offered a couple of valuable services: Helping settlers locate the lands most suitable for them. Transporting settlers and all of their belongings for free or for heavily reduced rates.

The conditions out West were harsh as well, which lead to the death of many. Blizzards, intense winds, and tornados occurred often. People were given land that was unfit to be farmed on, which made them suffer from hunger, especially during the colder months.

The prime land across the country was homesteaded quickly. Successful Homestead claims dropped sharply after the 1930s. The Homestead Act remained in effect until 1976, with provisions for homesteading in Alaska until 1986.