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Railroad companies leveraged federal land grants to expand their networks and increase revenue by selling or leasing the land for agriculture, settlements, and businesses. They often received large tracts of land alongside their rail lines, which they marketed to settlers and entrepreneurs, creating new communities. Additionally, railroads charged fees for transporting goods and passengers, capitalizing on increased trade and mobility facilitated by their networks. This combination of land sales and transportation services significantly boosted their profitability.

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