The "checkerboard" system granted alternating squares of land to the railroad companies as an incentive to build out the network. The railroads sold those squares to various entities.
The result is that much of the public land in the Western United States is "corner-locked". There are two parcels, diagonally adjacent, but a new easement would be required to cross between them.
Even if you could get the corner easement you'd be running lines that zig-zag all over the place, so now the private owner can extract whatever the savings are for a straight line.
https://www.onxmaps.com/onx-access-initiatives/corner-crossi...
Land leases are not bad things just because the PRC happens to use them. The USG leases a crapload of land to companies for various profitable enterprises. It's a tool in the toolbox.
If we tried to rebuild the train network we have today using the protracted legal process we have for reallocating land, it would be 100% impossible.