Ch. 14, sec. 2 critical thinking #4

The federal government gave land and made loans to the railroad companies. Why was the government so eager to promote the growth of railroads?

The government was corrupted in Congress by 20 representatives who were being given shares of stock earned by the railroad. The company doing this was called the Credit Mobilier. The railroads also made dreams of acquiring more land possible for the government. (p. 444)
Another benefit for the government was transportation. If the government would support the railroad it could get free transportation in return. This would be crucial in upcoming elections and campaigning strategies.
By giving out loans and giving land the government would in a sense have complete control over the growth of railroads. In 1887, Congress passed the Interstaet Commerce Act, establishing the right of the federal government to supervise railroad activities.(p. 445)