Documenting United States History

Document 16.1 United StateS Strike CoMMiSSion,

report on the Chicago Strike

1894

By the late nineteenth century, George Pullman (1831–1897) had built his sleeping-car

company into the major producer of passenger trains in the United States. Pullman

required his workers to live in his company town of Pullman, Illinois (near Chicago), reside

in Pullman-owned housing, and buy their goods from Pullman-owned businesses. When

the Pullman Company lowered wages in an economic recession in 1894, workers struck,

led by the future Socialist candidate for president, Eugene Debs (1856–1926). Ultimately,

federal troops broke up the strike.

Pullman’s Palace Car Company is in the market at all times to obtain all possi-

ble contracts to build cars. Its relations with railroads, its large capital and sur-

plus, its complete and well-located plant and efficient management enable it at

all times to meet all competitors on at least equal terms. Prior to the business

depression of 1893, the company was unusually active in building new cars for

itself and for railroads to meet the expanded demands of general business, and

for the expected requirements of the Columbian Exposition traffic. Its repair

department was also full of work. An average number of 4,497 workmen, dur-

ing the year ending July 1, 1893, earned $2,760,548.99, or an average of $613.86

each. The wages paid were about the same as paid elsewhere in the business,

Mr. Wickes thinks possibly a little higher.

The depression of 1893 naturally affected the business at once, and to a

greater extent in some departments than in others. Matters grew worse until,

in the fall of 1893, the company closed its Detroit shops, employing about 800,

and concentrated its contract and repair business at Pullman. The company

and the railroads had a surplus of cars for the decreased traffic obtainable, and

hence pending orders were canceled and car building stopped, except as occa-

sional straggling contracts were obtained at prices which averaged less than shop

cost, exclusive of interest upon capital or any charge for depreciation of plant or

machinery.

WAGES.

From September 18, 1893, until May 1, 1894, the company did contract work at

the price of $1,421,205.75, which was $52,069.03, or 3.663 per cent below shop

the Consumer’s City

toPic i

362 Chapter 16 | prosperity and reform | period seven 1890 –1945 tOpIC^ I^ |^ the Consumer’s City^363

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