I start in 1871 and handle the expansion manually.
1871-1875: 4 teams, 84 games
1876-1881: 8 teams, 84 games
1882-1891: 12 teams, 130 games
1892-1900: 16 teams, 140 games
If you do it this way you gradually bring in all of the franchises without having to contract any teams.
You need to turn off injuries though because there are so few players in the 19th century.
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