There was much agitation in the early Texas press for the development of
railroads in Texas. Accordingly, the State began granting lands as early
as 1852 in return for the laying of track. On January 30, 1854, general
railroad legislation was enacted granting 16 sections of land per mile
to companies that would build at least 25 miles of track. In locating
their land, railroads were required to locate a like amount for the
State. Railroad lands were usually surveyed in tracts of a section each,
odd-numbered tracts going to the railroad companies, and even-numbered
tracts going to the State of Texas.
Railroad companies were required to dispose of this land within a
specified period of time, which originally was 12 years. This was later
increased to 21 years and, finally, reduced to seven years. The
Legislature’s reason for enacting this requirement was probably to
encourage settlers to these railroad lands and to discourage the
formation of huge railroad estates.
The State halted its railroad grants by an Act of April 22, 1882. Total
acres granted to railroads reached 32,153,878.
Memphis, El Paso and Pacific Railroad Company provides an example of the
large areas that were granted for this purpose. A reservation eight
miles wide, and later 40 miles wide, was set aside in which this
railroad company could select its land.