In which the railroads see their profits shrinking and decide to dramatically cut the wages of their employees while still requiring them to live in expensive company towns. And when the employees went on strike, the federal government sent in the military who fired on American citizens, killing dozens and wounding many more.
This Day in Labor History: June 26, 1894 - Lawyers, Guns & Money : Lawyers, Guns & Money
On this day in 1894, the American Railway Union, headed by Eugene Debs, called a nationwide boycott in solidarity with their striking members at Pullman, Illinois. This action turned a small strike into one of the largest labor actions in the nation to that date, led to the pioneering use of the injunction to crush labor unions, and ended with President Grover Cleveland calling in the U.S. military to serve as a private army for the railroads, ending the strike.
The railroad-caused Panic of 1893 was not only emblematic of how corrupt railroads controlled the American economy in the Gilded Age, but how plutocrats expected the poor to sacrifice during hard times. George Pullman, owner of the Pullman Palace Car Company, which made sleeper cars for the railroads, created his own company town, south of Chicago. He provided workers everything they would need–housing, schools, stores. He also charged them high rates to live there, would not employ someone if they did not rent from him, and would evict them if they left his employment. When the Panic of 1893 hit, Pullman began losing money. His response was to lower wages by 25% while keeping the rent for his housing unchanged. In protest against this, as well as against working days that sometimes reached 16 hours, Pullman workers attempted to meet with the big boss, but Pullman refused to talk to them and fired three of the leaders.
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