<P> To allow the companies to raise additional capital , Congress granted the railroads a 400 - foot ( 120 m ) right - of - way corridor , lands for additional facilities like sidings and maintenance yards . They were also granted alternate sections of government - owned lands -- 6,400 acres ( 2,600 ha ) per mile ( 1.6 km ) -- for 10 miles ( 16 km ) on both sides of the track , forming a checkerboard pattern . The railroad companies were given the odd - numbered sections while the federal government retained the even - numbered sections . The exception was in cities , at rivers , or on non-government property . The railroads sold bonds based on the value of the lands , and in areas with good land like the Sacramento Valley and Nebraska sold the land to settlers , contributing to a rapid settlement of the West . The total area of the land grants to the Union Pacific and Central Pacific was larger than the area of the state of Texas : federal government land grants totaled about 203,128,500 square miles , and state government land grants totaled about 76,565,000 square miles . </P>
<P> To allow the companies to raise additional capital , Congress granted the railroads a 400 - foot ( 120 m ) right - of - way corridor , lands for additional facilities like sidings and maintenance yards . They were also granted alternate sections of government - owned lands -- 6,400 acres ( 2,600 ha ) per mile ( 1.6 km ) -- for 10 miles ( 16 km ) on both sides of the track , forming a checkerboard pattern . The railroad companies were given the odd - numbered sections while the federal government retained the even - numbered sections . The exception was in cities , at rivers , or on non-government property . The railroads sold bonds based on the value of the lands , and in areas with good land like the Sacramento Valley and Nebraska sold the land to settlers , contributing to a rapid settlement of the West . The total area of the land grants to the Union Pacific and Central Pacific was larger than the area of the state of Texas : federal government land grants totaled about 203,128,500 square miles , and state government land grants totaled about 76,565,000 square miles . </P>
why did the government offer each railroad company building the transcontinental railroad land
why did the government offer each railroad company building the transcontinental railroad land
To allow the companies to raise additional capital
To allow the companies to raise additional capital