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The "Granger Cases" were a group of lawsuits initiated by members of the National Grange of the Order of Patrons of Husbandry and other groups who challenged the constitutionality of certain state laws regulating businesses. The Grangers began organizing in the late 1860s Reconstruction era, and comprised mostly farmers whose businesses were crippled by excessively high prices in agricultural services and transportation. The Grangers wanted Congress to intervene and exercise their authority under the Interstate Commerce Clause by passing federal legislation regulating these industries, rather than allowing regulation to default to the states.
Most of the Granger Cases addressed unfair pricing structures and other practices of railroad companies; however, the first of the cases, Munn v. Illinois, (1877), sought to establish the states' rights to regulate privately held businesses, such as grain elevators and warehouses, in order to end overcharging and cheating on the part of corporate monopolies.
The majority of the Granger cases were heard in 1876 and 1877; however, Wabash v. Illinois, (1886), is considered the last of this series because it finally established Congress' right to control the railroads, in general. A few other cases after that period were labeled Granger Cases due to subject matter, but are not officially considered part of the historical group in that category.
Munn v. Illinois, 94 US 113 (1876)
Allowed states to regulate businesses within their border, and to set maximum prices for services rendered by privately owned businesses that operated as "public utilities" due to their function in the economy.
Chicago, Burlington & Quincy Railroad Company v. Iowa, 94 U.S. 155 (1876)
Held that railroad companies were engaged in business affecting the public interest and subject to legislative control as to their rates of fare and freight.
Peik v. Chicago & Northwestern Railway Company, 94 U.S. 164 (1876)
Held that the State of Wisconsin had the right to change the railroad's charter, which had previously allowed it to charge any rate it chose, in order to subject it to state regulatory statutes.
Chicago, Milwaukee & St. Paul Railroad Company v. Ackley, 94 U.S. 179 (1876)
Held that a railroad company operating in Wisconsin did not have the right to charge more than the maximum rate allowed by law by arguing the higher charge was reasonable compensation for services rendered.
Winona & St. Peter Railroad Company v. Blake,94 U.S. 180 (1876)
Upheld the Minnesota constitutional amendment regarding railroads chartered as common carriers that stated, "...company shall be bound to carry freight and passengers upon reasonable terms," subjecting the railroad to state price regulations.
Stone v. Wisconsin, 94 U.S. 181 (1876)
Upheld a Supreme Court of Wisconsin ruling that the "charter of the Milwaukee and Waukesha Railroad Company, granted by the Territory, is subject to repeal or alteration inasmuch as it was not accepted, nor was the company organized, until after the admission of the state into the Union..." This decision subjected the railroad to state regulations.
Railroad Company v. Husen, 95 US 465 (1877)
Overturned a Missouri statute prohibiting transport of Texas, Indian, or Mexican cattle into the state during the months of March through November as infringing on Congress' exclusive right to regulate interstate commerce under the US Constitution.
Wabash v. Illinois, 118 U.S. 557 (1886)
Held that the railroad could not charge more for short intrastate transport than for longer, interstate transport, and could be subject to a fine if the regulation was ignored. Held that Congress could use the Interstate Commerce Clause to regulate in-state transport of goods moved by a carrier that also operated interstate. This established the Supreme Court's endorsement of federal regulation over railroad transportation, regardless of destination.
In 1887, Congress passed the Interstate Commerce Act, formally transferring regulatory authority over the railroads from state to federal government.
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