Hence combinations of grainmen were as inimical to

their interests. Railroad discriminations but increased this latter evil. That such combinations of grainmen existed even at this time, the following from a letter of a gentleman writing from Dubuque, Iowa, proves: "While every

other interest seems to 'bear down' upon the farmer, he has been, until recently, entirely powerless to resist or to retaliate by putting up the price of what he has to sell. In a former letter I have explained how the railroads often play into the hands of the grain speculators, to the injury of the farmers. But these speculators have a way of combining against the farmers, independently of the railroads. The great bulk of the grain of this state has been sold by the producers at the nearest railroad station, and it has been very rare for a farmer to ship his own crop..

The result is that the local wheat buyers have had almost a monopoly of the shipping business. But even here there is little or no competition between rival buyers, because they either agree each morning to pay a certain fixed price that day, or else agree not to outbid each other, and divide their profits in proportion to the amount each man has bought."

1. Martin, History of the Grange Movement, pp.309,310. This work was published in 1873. The author refers to the above letter as one written "not long since."

It was not, however, until 1888 that Iowa passed any legislation upon the subject. The combinations of grainmen There were also coming into prom

were still in existence. inence at this time capitalistic combinations of huge pro

portions and dangerous tendencies, as the sugar trust and

Standard Oil trust.1 Governor Larrabee, in his biennial

"I reccommend that

message to the Twenty-Second General Assembly advised legislation against such combinations. prompt measures be taken to protect the people against the abuses under the cover of combinations generally known as 'trusts' or pools. There is a common belief that these and similar combinations suppress competition, enhance the cost of the necessaries of life, and lay heavy burdens upon those least able to bear them. n2

1.

The report of the Bacon Committee of Congress, made in July 1888, proved the existence of the sugar and oil trusts, but they were known to exist before. That the Iowa Act of 1888 was influenced by the existence of the oil trust seems certain. The act particularly prohibited combinations to "fix the price of oil." Also House File No. 551 introduced in the same session by Mr. Dobson was entitled: "A bill for an act to prevent dealers in petroleum and its products, coal, lumber, and linseed oil from forming pools and trusts" etc.

2. Iowa Documents, 1888. Vol. I., p. 38.

As a result bills against trusts and combinations were introduced in both the house and senate. Of these senate File 35, entitled "An act for the punishment of pools,

trusts and conspiracies, and as to the evidence in such
1
casos," became law.

"Section 1. If any corporation organized under the

laws of this State or any other State or country for transacting or conducting any kind of business in this State, or any partnership or individual shall create, enter into, become a member of or a party to any pool, trust, agreement, combination or confederation with any other corporation, partnership or individual to regulate or fix the price of oil, lumber, coal, grain, flour, provisions or any other commodity or article whatever; or shall create, enter into, become a member of or a party to any pool, agreement, combination or confederation to fix or limit the amount or quantity of any commodity or article to be manufactured, mined, produced, or sold in this State, shall be deemed guilty of a conspiracy to defraud, and be subject to indictment and punishment as provided in the next section.

"Section 2. Any person or corporation found guilty

1.

Ch. 84, Acts of 22 G. A., approved Apr. 16, 1888.

2. McClain's Annotated Code of Iowa. Revised 1888. Sections 5454-5457.