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When the first transcontinental railroad was authorized in the early 1860s (during the civil war), the eastern terminus was fixed at Council Bluffs, Iowa/Omaha, Nebraska, a point served by several railroads at the time. Fixing the eastern terminus further east would have placed the new railroad in competition with existing lines and lengthened the length of the route to be built. Also, the transcontinental railroad was partly funded by land grants authorized by the federal government in the territories the railroad crossed; offering such land grants east of Nebraska would have been more costly and problematic.

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