During the latter part of the 1800s, some Texans, especially farmers, felt that their state officials were too conservative in their efforts to help the poor and to regulate large businesses, such as the railroads. Out of this early call for reform, the Greenback party was born. Its leaders wanted the federal government to print more paper money, or greenbacks. Its candidates achieved little success, but this early reform party established the roots for future reformers in the Grange movement, the Farmers� Alliance and the Populist, or People's, party.

During the years immediately prior to 1900, large companies began to operate in Texas. These large corporations helped to promote prosperity in the state, but they also caused problems. The larger Texas companies often organized trusts that created monopolies, or exclusive control of an industry. As competition began to disappear, the larger companies could then fix prices, usually at unreasonable rates to the consumer. Farmers, small merchants and consumers in general could not protect themselves against such unfair business practices.

Railroad companies were the most notorious monopolies. Railroad operators charged higher rates for short hauls within the state and charged less for long hauls traveling out-of-state. Small farmers and merchants, who often shipped goods only short distances, felt the railroad rates were unfair. The farmers� arguments became more intense as crop prices fell because that placed them in greater debt.

Many Texans insisted that the state government should help solve the problems. As a result of citizen protest and a general wave of reform sweeping through the Southern and Western states, the Texas Legislature passed an antitrust law in 1889. It prohibited business trusts. Companies could no longer legally fix prices or limit production.

Regulation of the railroads was a top priority of Texas reformers. In 1887, the United States Congress created the Interstate Commerce Commission (ICC). Using the ICC as a model, Governor James Hogg pressured the legislature to create the Texas Railroad Commission (1891). Governor Hogg convinced John Reagan to give up his Senate seat to become the first head of the Railroad Commission.

The Railroad Commission was authorized to regulate rates and other business practices of the railroad companies operating within the state. Later, the commission was given the power to regulate all monopoly corporations. Because of his efforts to regulate the railroads, insurance companies and other large companies, Governor Hogg is remembered as one of the great Texas reformers of his age.

With the development of an antitrust law and the creation of the Railroad Commission, some Texans believed that the government should assume an even greater role in reforming big businesses and protecting farmers. These citizens formed the basis of a new political party known as the People�s or Populist party. This new political force spread from Texas throughout the Midwestern and Southern states. It actively supported candidates in the 1890s.

Most Populists were poor farmers, who hoped that the government could help relieve their economic problems. Following the lead of prominent black men such as J. R. Rayner, some black farmers joined the Populist party. However, limited support from the black community prevented Populist candidates from securing an edge in national elections. The Populist party never won control of the state government in Texas, though some Populists were elected to important state offices.

1. What was the "Greenback" party?(7.6:A)
2. How were farmers and small businessmen affected by large company monopolies?(7.6:A,B)
3. How did the Texas legislature deal with monopolies?(7.6:A,B)
4. Who were James Hogg and John H. Reagan?(7.6:A)
5. What were the responsibilities of the Railroad Commission?(7.6:A)
6. What was the Populist party?(7.6:A)