SOLUTION
"The railroad, in desperate financial straits, and with a great amount of unsalable land in its possession, decided on a gigantic land disposal program."
- Hiram M. Drache: "The Day of Bonanza"
- Hiram M. Drache: "The Day of Bonanza"
The solution to this economic downfall was to sell the large parcels of land, located near the railroad, from the U.S. grant. Each plot was sold anywhere from $2.50 to $10.00 per acre, depending on the proximity of the land to the railroad. Newspapers nationwide had advertisements for the Northern Pacific land that was for sale.
When citizens and wealthy investors bought the land, they converted their plots into "Bonanza Farms." Later on, the railroad construction was continued.
"...The great amount of land which was made available through the Northern Pacific land grant was...a...spectacular phase of American agriculture born out of the financial crisis of 1873 and the failure of the Northern Pacific."
- Hiram M. Drache: "The Day of the Bonanza"
- Hiram M. Drache: "The Day of the Bonanza"
Advertisements for the Northern Pacific Railroad lands
Click to enlarge
Click to enlarge