Both the republic and state granted lands for military service in the form of bounty and donation grants.
"By an act of 1879 certificates for an additional 640 acres were granted under stringent restrictions to indigent veterans of the Texas Revolution. Bounty and donation grants for military service amounted to a total of 3,149,234 acres."
Basically, as a reward or an incentive for their service in multiple battles.
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They were called monopolies and trust busters were put into place to close them
