Granger Railroads: Classic Midwestern Lines

Published: July 3, 2024

For train enthusiasts the term "granger railroad" was predominately used to describe classic Midwestern systems which derived a significant portion of their annual revenue from the movement of agricultural products.

However, the term also has significant economic connotations regarding freight rates. In this context the term "Granger Railroad" underscores a pivotal era in American history when agricultural communities, particularly in the Midwest, battled against powerful railroad monopolies.

This confrontation spurred significant political and economic reforms in the late 19th and early 20th centuries.

The "Granger Movement" was a grassroots initiative led by farmers to address grievances regarding railroad charges and practices. This article delves into the historical context, specific railroads affiliated with the Granger Movement, and its enduring legacy.

Rock Island FA-1 #158 and another unit lead Extra 158 on the Illinois Division, circa 1953. American-Rails.com collection.

Historical Context

The term “Granger railroad” occupies a distinct place in American railroad history, referring not to a single company or corporate system, but to a class of railroads whose origins, traffic base, geography, and political influence were deeply intertwined with Midwestern agriculture in the late nineteenth century. These railroads emerged alongside the settlement of the Upper Midwest, serving farming communities whose economic livelihood depended on reliable, affordable access to markets.

The name itself is derived from the National Grange of the Order of Patrons of Husbandry, commonly known simply as the Grange, a powerful farmers’ organization that advocated for rural interests, including transportation reform. As grain shipments became the backbone of Midwestern commerce, railroads that primarily handled agricultural traffic—and whose practices were shaped by political pressure from farmers—became known collectively as Granger railroads.

Defining the Granger Railroad

Granger railroads were essentially those railroad lines serving the agriculturally rich Midwestern United States, affecting the livelihoods of thousands of farmers.

Though not formally recognized by a specific grouping, several major and minor railroads were pivotal to the concerns addressed by the Granger Movement.

Unlike transcontinental railroads or eastern trunk lines, Granger railroads shared several defining characteristics:

1. Agricultural Traffic Dominance

Granger railroads derived the majority of their revenue from grain, livestock, and farm supplies. Long strings of boxcars, later joined by covered hoppers, moved wheat and corn from country elevators to milling centers and lake ports.

2. Dense Branch-Line Networks

Rather than spanning vast distances, these railroads built fine-grained networks of branch lines designed to place nearly every farm within a few miles of a rail siding. Mileage density mattered more than speed or luxury.

3. Regional Orientation

Granger railroads primarily served intraregional traffic, connecting rural midwestern towns to Chicago, Milwaukee, Minneapolis–St. Paul, Omaha, and St. Louis rather than to the Atlantic seaboard.

4. Political Exposure

Because of their dependence on farmers, Granger railroads were especially vulnerable to state regulation. Court cases such as Munn v. Illinois (1877) upheld the right of states to regulate businesses “affected with a public interest,” including railroads.

Thus, a Granger railroad was not merely one that hauled grain—it was a railroad whose economic purpose, geographic focus, and regulatory environment were shaped by Midwestern agrarian interests.

The Granger railroads were overwhelmingly concentrated in the Upper Midwest, a region often called the nation’s “breadbasket.” Their core states included:

Illinois
Iowa
Minnesota
Wisconsin
Nebraska
Kansas
South Dakota
North Dakota

Chicago emerged as the central hub, acting as the primary interchange, grain market, and financial center. Rail lines radiated outward like spokes on a wheel, tapping agricultural regions hundreds of miles away.

Chicago, Burlington & Quincy Railroad

Also known as the Burlington Route, the CB&Q was integral to Midwestern agriculture, running from Chicago and extending throughout Illinois, Iowa, Nebraska, and beyond. Farmers heavily relied on this railroad for shipping their products to major markets. The Burlington's monopolistic tendencies and rate manipulation were recurrent issues of contention for Granger activists.

Chicago and North Western Railway

Operating across Illinois, Iowa, Minnesota, Wisconsin, and into the Dakotas, the C&NW was another major player in Midwestern transport. The railway's extensive network made it a critical lifeline for agricultural zones, hence an important focus for regulatory actions initiated by the Granger Movement. The C&NW was often at the center of disputes over fair freight rates and monopolistic practices.

Chicago, Milwaukee, St. Paul, and Pacific Railroad (Milwaukee Road)

Covering an expansive geography from Illinois and Wisconsin through to Minnesota, Iowa, and the Dakotas, the Milwaukee Road was indispensable for farmers. The railroad's freight policies and pricing were closely monitored and frequently contested by Granger advocates pushing for transparency and fairness.

Chicago Great Western Railway

The "Corn Belt Route" was a 1,500 mile system that linked the Twin Cities with Omaha, Kansas City, and Chicago. Its central shops were located in rural Oelwein and operated considerable branch lines throughout southern Minnesota. The system, largely promoted by Alpheus Beede (A.B.) Stickney, was never considerabl profitable throughout much of the 20th century. It was ultimately acquired by the C&NW in 1968 for its K.C. connection, and much of its network was quickly abandoned.

Chicago, Rock Island & Pacific Railroad

The fabled Rock Island reached all of the major cities throughout the Midwest, including Denver and even Texas. However, the Rock operated considerable branch lines throughout Iowa, Kansas, and Oklahoma. The system never had its own direct connection to many of these cities and ultimately was liquidated in 1980 following years of decline.

With the operator providing a roll-by inspection, Chicago Great Western F3A #111-C leads a long freight train westbound past the quaint little depot at Elmhurst, Illinois station on August 14, 1962. Roger Puta photo.

Legislative and Judicial Milestones

One of the most significant outcomes fueled by the Granger Movement was the advent of regulatory measures aimed at curbing railroad monopolies. A series of legislative and judicial milestones marked the evolution of these efforts.

Granger Laws

Several Midwestern states, inspired by the movement’s advocacy, enacted Granger Laws during the 1870s. These laws aimed at regulating railroad rates and practices to ensure fair treatment for farmers. States like Illinois, Iowa, Minnesota, and Wisconsin led the charge, establishing maximum freight and passenger rates and forming commissions to oversee railroad practices.

Munn v. Illinois (1877)

This landmark Supreme Court case upheld the legality of state regulation of private industries that affect the public interest. The court ruled in favor of the state of Illinois, which had imposed regulations on grain storage facilities and railroad rates, asserting the principle that the state had the authority to regulate private business operations in the public interest.

The Interstate Commerce Act (1887)

The frustrations expressed by the Granger Movement culminated in federal action with the passage of the Interstate Commerce Act. This act established the Interstate Commerce Commission (ICC) to oversee railroad practices and ensure reasonable and just fair rates. It marked the first significant federal effort to regulate private industries in the United States.

The Sherman Antitrust Act (1890)

While not directly a result of the Granger Movement, the Act embodied the broader spirit of curtailing monopolistic power. It was a milestone in the fight against industrial monopolies that extended to railroads and other sectors.

Decline and Legacy

As the 19th century waned, the Granger Movement’s influence began to decline. Several factors contributed to this, including the rise of other farmers’ alliances and the evolution of national political and economic landscapes. However, its legacy endures in several critical ways.

In addition, for these railroads serving America's Heartland the name "granger" largely remained engrained throughout their corporate existence.

Foundation for Future Reform Movements

The Granger Movement laid the groundwork for subsequent agrarian and populist movements, including the Farmers' Alliance and the Populist Party. These movements continued the fight for economic justice and fair practices, broadening their scope to include other industrial and financial monopolies.

Precedents for Government Regulation

The successful advocacy for regulations through state Granger Laws and the establishment of federal oversight via the ICC created critical precedents for government intervention in the private sector. These precedents have continued to influence regulatory policies across various industries.

Empowerment of Rural Communities

Perhaps most significantly, the Granger Movement empowered rural communities, fostering a sense of shared identity and collective action among farmers. This legacy of grassroots organization and advocacy continues to resonate within modern agricultural and rural communities.

Long-Term Economic Policies

The movement also indirectly contributed to the development of long-term economic policies aimed at balancing the interests of different economic groups. Its emphasis on the fairness and transparency of business practices has had continuing relevance in discussions about corporate regulation and public welfare.

A classic scene of the Chicago & North Western serving the Heartland... Here, rebuilt GP7's and a former Rock Island GP7R (#4142, in the lead) are west of Waukesha, Wisconsin with their freight train in July, 1982. Roger Puta photo.

Conclusion

The granger railroad era symbolizes a profound chapter in American history where rural agrarian societies confronted the overbearing might of railroad monopolies.

The movement encompassing railroads like the Chicago, Burlington & Quincy, the Chicago and North Western, the Milwaukee Road, the Atchison, Topeka and Santa Fe, and the Union Pacific, exemplified the struggle for equitable economic practices. While rooted in the specific challenges of the 19th century, the themes of the Granger Movement—economic justice, grassroots advocacy, and regulatory oversight—continue to resonate today.

The legacy of the granger and the movement they inspired is a testament to the enduring power of collective action in shaping fair and just economic landscapes.