Note 21 — Chapter VI
Reading edition
That is, the Government pledged its credit for the money borrowed, and in addition gave the companies alternate sections of public land on both sides of the proposed line, the land-grants being designed partly to encourage immigration and partly to increase the building funds of the various companies. In several instances both the land-grants and the money subsidies were scandalously used. At least one road used its earnings to build a competing line and, after disposing of the land-grant and pocketing the proceeds, allowed the Government to foreclose the mortgage and sell the original road.