how were most railroad companies able to finance the building of their rail lines
History of rail transport in the United States In 1860, the combined total of railroad stocks and bonds was $1.8 billion; 1897 it reached $10.6 billion (compared to a total national debt of $1.2 billion).[87] Funding came from financiers throughout the Northeast, and from Europe, especially Britain.[88] The federal government provided no cash to any other railroads. However it did provide unoccupied free land to some of the Western railroads, so they could sell it to farmers and have customers along the route. Some cash came from states, or from local governments that use money as a leverage to prevent being bypassed by the main line. The larger sound came from the southern states during the Reconstruction era, as they try to rebuild their destroyed rail system. Some states such as Maine and Texas also made land grants to local railroads; the state total was 49 million acres.[89] The emerging American financial system was based on railroad bonds. Boston was the first center, but New York by 1860 was the dominant financial market. The British invested heavily in railroads around the world, but nowhere more so than the United States; The total came to about $3 billion by 1914.[90] In 1914â€“1917, they liquidated their American assets to pay for war supplies.[91][92][93]
History of rail transport in India The first proposals for railways in India were made in Madras in 1832.[1] The first train in India ran from Red Hills to Chintadripet bridge in Madras in 1837, and was called Red Hill Railway. It was hauled by a rotary steam engine locomotive manufactured by William Avery. Built by Sir Arthur Cotton, it was primarily used for transporting granite stones for road building work in Madras.[1] In 1845, a railway was built at Dowleswaram in Rajahmundry called Godavari Dam Construction Railway. It was also built by Arthur Cotton and was used to supply stones for construction of a dam over Godavari.[1] On 8 May 1845, Madras Railway was incorporated. In the same year, the East India Railway company was incorporated. On 1 August 1849, Great Indian Peninsular Railway was incorporated by an Act of Parliament. The "Guarantee System", providing free land and guaranteed rates of return (5%) to the private English companies willing to work on building railways, was finalized on 17 August 1849. In 1851, a railway called Solani Aqueduct Railway was built in Roorkee. It was hauled by steam locomotive Thomason, named after a British officer-in-charge of the same name. It was used for transporting construction materials for the building of aqueduct over Solani river.[1] In 1852, the "Madras Guaranteed Railway Company" was incorporated.