> Rip out the land grant system, and you wouldn't reduce the viability of all of the lines being added in Ohio; although the lines people are working in, say, Indian Territory, will suffer mightily. But the latter are already in the not-dense portion of the network, whereas the former are in the dense part of the network.
I wasn't just thinking of the far West; I mean also the Southwest. To take an example: I don't think the centralization of meatpacking in the Midwest would have happened to nearly the same degree without land grant-subsidized railroads through Texas, New Mexico, etc. Same for the Gulf Coast with refineries.
But also, I think you're understating the "why" of Chicago being the "big prize" for the West. It's because it opened up California's bread basket to the rest of the country, including the East Coast and European markets represented on the East Coast. The US didn't carry beef, corn, and wheat across the country just to dump it in Lake Michigan; it got carried to Chicago so that it could be sold to points beyond.
Period fiction played on this: Frank Norris never finished The Epic of the Wheat[1], but it was supposed to end in Europe's wheat markets, having started in the San Joaquin valley in the first book. Already in that book, from 1902, is the European market well established:
> “The result is over-production. We supply more than Europe can eat, and down go the prices. The remedy is NOT in the curtailing of our wheat areas, but in this, we MUST HAVE NEW MARKETS, GREATER MARKETS. For years we have been sending our wheat from East to West, from California to Europe. But the time will come when we must send it from West to East."
(Norris confusingly says "East to West" as in "Western Europe.")
[1]: https://en.wikipedia.org/wiki/The_Epic_of_the_Wheat