Contents
Why did Pullman reduce wages?
Pullman was a company town. The workers who built the railroad cars lived in houses owned by the company, and they paid rent to the same corporate entity that furnished their wages. When the Panic of 1893 hit, the company reduced their pay.
Why did Mr Pullman refuse to reduce rents?
Why do you think Mr. Pullman refused to offer any relief of the cost of rent or prices in Pullman stores, even though he decreased wages by 25-40 percent? Mr. Because he did everything on his own and didn’t think he owed it to anyone to lower the cost or offer relief to any of his workers (Foner, 519).
How did George Pullman treat his workers?
Pullman laid off workers and cut wages, but he didn’t lower rents in the model town. Men and women worked in his factory for two weeks and received only a few dollars pay after deducting rent.
What happened to rent as wages decreased Pullman?
Pullman began cutting wages and laying off workers in response to a general depression of trade. 23. What happened to rent as wages decreased? Workers could not even work full-time at the reduced wages but were still expected to pay rent in full and on time; went broke.
What was the cause and effect of the Pullman strike?
Workers for the Pullman Palace Car Company already had low wages as well as high rents in the company town of Pullman, Illinois. During an economic depression in 1893, their wages were cut even more and working hours were increased.
How much did Pullman cut his employee wages by?
In response to financial reverses related to the economic depression that began in 1893, the Pullman Palace Car Company, a manufacturer of railroad cars, cut the already low wages of its workers by about 25 percent but did not introduce corresponding reductions in rents and other charges at Pullman, its company town …
How much was rent in Pullman history?
The Original Town of Pullman was completed in 1884. The average rent for three room apartments was $8.00 to $8.50. The rent for a five-room row house (with basement, bathroom, and water faucet on each of two floors) was $18.00 per month. Larger homes for professionals and company officers began at $25.00.
How did George Pullman affect the economy?
When Pullman’s business fell off amid the economic depression that began in 1893, he cut jobs and wages and increased working hours in order to lower costs, though he did not reduce the dividends he paid to stockholders. Nor did he reduce the rents or the prices of goods and utilities in Pullman.
Why did the Workers of Pullman go on strike?
When his company laid off workers and lowered wages, it did not reduce rents, and the workers called for a strike. Among the reasons for the strike were the absence of democracy within the town of Pullman and its politics, the rigid paternalistic control of the workers by the company, excessive water and gas rates,…
How much did the Pullman Company make per day?
The company manufactured sleeping cars, boxcars, coal cars, baggage cars, chair cars, refrigerated cars, streetcars, and mail cars. In 1885, wages started at $1.30 per day. By 1897, unskilled workers earned $1.86, and journeymen mechanics earned $2.28 per day. The original working day was between 10 and 11 hours.
When did wages go down in Pullman, WA?
Five reductions in wages, in work, and in conditions of employment swept through the shops at Pullman between May and December, 1893 The last was the most severe, amounting to nearly 30 percent, and our rents had not fallen. . . .
Why did the Pullman Palace Car Company cut wages?
During a severe recession (the Panic of 1893), the Pullman Palace Car Company cut wages as demand for new passenger cars plummeted and the company’s revenue dropped. A delegation of workers complained that wages had been cut but not rents at their company housing or other costs in the company town.