Beginning of the Populist Movement

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Beginning of the Populist Movement

• Politics Protest 1865 1900

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I. Agrarian Unrest

• A. Plight of Farmers
• 1. Natural Disasters
• 1.) Prairie Fires
• 2.) Dust Storms
• 3.) Drought
• 4.) Varmints (grasshoppers, etc)

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A. Plight of Farmers (cont)

• 2. Decline in crop prices.
• a. Result of overproduction of crops.
• 1. New inventions harvesting
  threshing
• machines.
• 2. Better farming techniques.
• b. Higher expenses
• 1. Machinery affordable only through
• mortgaging the farm.
• 2. Forced to pay high interest rates
• 3. Rise in shipping costs on the RR

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B. Railroad Abuses

• Railroads had huge expenses building the
  Railroad.
• Invited investors who were looking for quick
  return on their money.
• Large land grants from the government.
• Made for a corrupt situation

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B1. Railroad Abuses Unethical Business
Practices.

• Railroads bribed state legislators for
• a. land grants
• b. cash subsidies
• c. pro-railroad laws
• d. tax exemptions
• Stock Watering increase in the number of shares
  of stock without adding to company assets.
  Cheated stockholders Public paid higher rates
  to cover increased dividends.

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B2. Unfair Pricing

• Railroads had no competition in many situations.
• Railroads took advantage overcharged
• Pooling illegal agreements among individual
  railroads to divide the total volume of freight
  among their lines and to keep rates high.

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C. The Grange

• Huge resentment against the Railroads in the
  western U.S. no competition.
• Railroads resented by business owners and city
  workers.
• Took a farm organization to to begin a movement
  against their unfair practices.
• The Granges goal was to stop unfair RR practices
  with state laws.

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C1. The Grange Social Support to Political
Action

• Patrons of Husbandry The Grange
• Founded in 1867 by Oliver Hudson Kelley
• First goal was social for farm families to
  recognize women a equals.
• Panic of 1873 Turned Grange into a reform
  organization.
• Co-operatives formed (non-profit stores)
• Grange started lobbying state legislatures to
  help farmers.

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C1. The GrangeSocial Support to Political
Action(cont)

• Grange began to make a difference.
• 1874 had 1.5 million members all over US
• Granger Laws passed in several states.
• 1. Fixed maximum rates for freight
  passengers on RR in their state.
• 2. Forbade discrimination by RR between
  places shippers.
• 3. Regulated pricing of farm necessities.

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C2. The Grange Granger Laws Versus Business
Interests.

• Private business protested against the Granger
  Laws.
• Major argument Government should not
  interfere with private enterprise.
• 1. Used the 14th Amendment
• 2. Interpreted to mean the RR was a person.
  
• 3. RR should not deprived of its property
  by being forced to lower its rates.

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C2. The Grange Granger Laws Versus Business
Interests(cont.)

• Grange argued against business interests.
• 1. Railroads had accepted aid from government
  so couldnt be believers of laissea-faire.
• 2. Laissez-faire rules didnt apply since RR
  had a monopoly and free competition to keep
  prices down couldnt take place.
• 3. Argued Government needed to control
  monopolies to protect the public.

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Supreme Court Decisions

• Munn vs Illinois decision in favor of the Granger
  Laws.
• Granger laws are unsuccessful
• Main cause of Granger failure was its venture
  into business activities
• Southern Alliance Comb. of National Farmers
  Alliance and Industrial Union
• 1. 1870
• 2. Guided by C.W. McCune

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Interstate Commerce Act

• 1887 Congress passed law to regulate interstate
  commerce
• Regulated RR rates to reasonable just
• Forbade pooling, rebates short haul gauging.
• ICC panel to be appted. By President
• Richard Oney