American Industrialization In 1914

Industrialization brought forth an economic period in the U.S. unlike any other seen before. For the first time in history, the U.S. was manufacturing goods at a higher rate than the previous industrial titan, England. American manufacturing was at an all time high, but domestically a fight was brewing between the industrial capitalists and the workers who labored in their factories. Many workers held arduous jobs at the factories, working extremely long days in often unsafe working conditions. On top of it all, the average factory worker made four hundred to five hundred dollars per year during a time when 600 was considered necessary for survival. Long hours, unsafe conditions, and low wages made many workers furious at their corporations

During a particularly difficult economic time, the Panic of 1893, the Pullman Company decided to cut wages by 25% due to rising costs of operation and declining revenue. The company did so without lowering the cost of rent for the housing in which the men lived. Enraged, the workers put on a demonstration of rebellion. Resulting in a nationwide railroad strike, it pitted the American Railway Union against the Pullman company. At its peak, some 250,000 railroad workers were involved across 27 states. The strike delayed or completely stopped much of the passenger and freight traffic West of Detroit and caused an astounding 80 million dollars in property damage. 30 strikers died and a total of 57 were injured. The nation turned its head towards the strike, looking for who to blame. The workers claimed they were not be fairly compensated for their labor and they were being taken advantage of. George Pullman claimed he was simply trying to turn a profit during an economically challenging time. Who was in the right? Was Pullman justified in his reasoning for what he did? The answer is no. It was a time of roaring capitalism, and just like so many of his colleagues, he took advantage of his labor

With little discretionary income to spare, many people refrained from traveling at that time, meaning demand for sleeper cars decreased rapidly. The year of the strike, the Pullman Company was not turning a profit, instead losing money. In an 1894 interview with a presidential commission, Pullman revealed that he decided to cut wages because “It was a question whether we could get cars to build or we should shut up our shops” (Pullman, 1894). He used this as his justification for the wage cuts. The business was ailing, and he believed he was doing what any good businessman does during a rough patch. The interviewer of that particular interview said it best when he questioned Pullman, “ ...with a body of workmen who had been with you some time...you ought to divide with them a little, give them at least enough to make a good living. Wouldn't that have been a fair matter to be considered?” (1894). The truth is, even the best businesses experience bad years. It is predicted that when the economy rebounded in just a few years, the travel industry would return to normal and business would begin booming