07/24/2026
In the decades following the American Civil War, the United States entered an era of great industrial expansion. But not all growth was healthy growth. Some powerful companies used their economic influence to drive out competition and create monopolies in an industry or geographic region. Throughout the 1870s, a series of laws called the Granger Laws were passed to put midwestern railroads into check.
At this time, railroads in the Midwest held a tight grip on the nation’s farmers. In the vast expanse of farmland, a single railroad line could service hundreds of miles with no competition. This gave railroads the absolute power to set and adjust shipping rates. Larger, more powerful shippers were provided secret lower rates while small businesses and farmers were charged high prices for shipping short distances. Additionally, railroads often owned local grain elevators used for grain storage, colluding on fees and prices.
As the railroads continued to gouge prices, cash strapped farmers were increasingly drawn to the Granger Movement. The Patrons of Husbandry, or the Grangers, was a coalition of American farmers originally dedicated to disseminating scientific agricultural practices. Forced into poverty by unfair business practices, infuriated Grangers unified to combat monopolistic railroads through legislative change.
Simplified, the Grangers believed that the public good should outweigh private profit.
The most effective Granger Laws were passed in Minnesota, Iowa, Wisconsin, and Illinois. Important Supreme Court cases like Munn v. Illinois (1877) upheld Granger Laws, legally justifying government oversight and regulation of businesses deemed essential to the public welfare. For the first time in the United States, government was granted the power to regulate business.
In 1886, the Supreme Court established in Wabash v. Illinois that states could not regulate interstate commerce per the Constitution’s Commerce Clause. In the vacuum of regulation created by this decision, the federal government would step in with the Interstate Commerce Act one year later.
Image: "The Grange Awaking the Sleepers," 1873. A Granger warns the American people of the train of monopoly and vices it brings.
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