Canada did the same. The company building the railroad was paid not only in cash, but also land (which was suddenly very valuable next to a transcontinental ra

Canada did the same. The company building the railroad was paid not only in cash, but also land (which was suddenly very valuable next to a transcontinental railway). But to avoid giving them all the prime spots, the checkerboard system was put in and they were given 50%, so the other 50% could be purchased by anyone.