ID: Granger Laws
When: Late 1860s and early 1870s (Specific state laws varied in enactment dates)
Who:
- Farmers: Primarily members of the Patrons of Husbandry (the Grange), who pushed for the legislation.
- State Legislatures: Various Midwestern and Southern state legislatures passed these laws.
- Railroads and other businesses: These were the targets of the Granger Laws, as they were seen as exploiting farmers.
What:
A series of state laws passed in the Midwest (and some Southern states) in response to the perceived injustices of the railroad companies and other businesses. These laws regulated railroad freight and passenger rates and, in some cases, the storage of grain in elevators. They aimed to curb the monopolistic practices of large corporations that farmers believed were harming their economic interests.
Impact: Why Significant?:
- Early Example of Government Regulation: The Granger Laws represented a significant expansion of government regulation of private industry in the United States. It was an early step towards the larger Progressive Era reforms.
- Challenged Laissez-Faire Economics: The laws directly challenged the prevailing laissez-faire economic ideology that advocated for minimal government intervention in the economy.
- Munn v. Illinois (1877): The Supreme Court case upheld the state’s right to regulate private property “clothed with a public interest,” establishing a legal precedent for government regulation.
- Weakened by Wabash Case (1886): The Supreme Court’s decision in Wabash, St. Louis & Pacific Railway Co. v. Illinois limited the power of states to regulate interstate commerce, weakening the effectiveness of the Granger Laws. This spurred the creation of the Interstate Commerce Commission (ICC).
- Rise of Populism: The Granger movement and the subsequent fight for fair railroad rates contributed to the rise of the Populist movement, which advocated for farmers’ rights and greater government regulation.