by ExCon90
Also worth noting a lot more than it's mentioned is that any land covered by the grants that was more than a half-day trip by horse and wagon from a navigable waterway was fit only for subsistence farming until the railroad was built. The building of the railroad was what increased the value of the land, and there some lean times before the number of settlers began to constitute a traffic base. Of course this applies only in the case of land-grant railroads--which not all of them were, by a long shot.
The point raised above about raising freight rates is invalid--freight rates are determined by the price of competitive transportation, mostly by truck and waterway. Raising freight rates to compensate for unremunerative passenger service would merely drive the freight away from the railroads, replacing inadequate revenue with no revenue. It can be easy to forget that it's the freight trains that make it possible for the trackage to exist in the first place. Example: there was a comment made in another thread that the only feasible route for Chicago-Indianapolis service is that of the former James Whitcomb Riley. The freight that used to move over that route now moves in other ways, and the track is gone.
The point raised above about raising freight rates is invalid--freight rates are determined by the price of competitive transportation, mostly by truck and waterway. Raising freight rates to compensate for unremunerative passenger service would merely drive the freight away from the railroads, replacing inadequate revenue with no revenue. It can be easy to forget that it's the freight trains that make it possible for the trackage to exist in the first place. Example: there was a comment made in another thread that the only feasible route for Chicago-Indianapolis service is that of the former James Whitcomb Riley. The freight that used to move over that route now moves in other ways, and the track is gone.