The government reaped the value the railroad created for all of the other lands it held, beyond that, consider that the government used to give away up to 160 a

The government reaped the value the railroad created for all of the other lands it held, beyond that, consider that the government used to give away up to 160 acres of land to anyone who was willing to homestead it, and improve it. As in literally free - the land without the railroad had considerably less value at that time.