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Franklin B Gowen.

Pennsylvania. Biggest Coal country.


Ran the Reading Railroad. Let the railroad mine coal. So he controlled both sides. The
mining of coal that made railroads run. He formed the first Cartel (independent
businesses who work together to fix the prices and the production of some good).
He brung together the production of coal. As a result, they agreed on the production, the
cost, and how to market it. Called the price fixing agreement the pool.
Had to weaken strikers. When there were strikes, he was able to beat them down. Had
own police. Had groups of people who gathered together to disrupt coal production. Led
the prosecution against them calling them criminals. Overall, successful in overriding
attempts of coal workers. He went down because he expanded too much. Morgan took
over.
Big union strike was in 1902 led by Mitchell.
Morgan intervened and organized a settlement.

A compulsory heaven at Pullman.


George Pullman
Train guy and inventor. Restaurant and chair and dining car. Chicago railroad. Built a
company town. Owned it completely. Meant he controlled absolutely everything.
Controlled workers wages, working, leisure, housing and everything. Saw it as an
investment. Although he might have done good things for some of his workers, expected
a return. Overall, good place. Hit its peak in 1893. Did not get the return he expected.
Cut wages. Not tolerant. One church and puritan. Nothing with unions.

Depression in 1893. Dividends = what the stockholders receive. Company losing


money, Pullman still payed the dividends to the stockholders by cutting wages. Town
had no welfare system. Hyde Park = Pullman.
Up to this time, the only collective groups of workers were called Brotherhoods. But not
like unions where all together. All separate, so no power.
Failed Union = supreme council of the united orders of railroad employees. Effort by
some of the brotherhoods.
Along comes Eugene Debs. Successfully pulled railroad workers together. Organization
dude. Goal was to increase welfare of worker. Thought the worker should have a say in
their wages and how they were treated. (Who would have thought?).
Organized Labor. Founded the American Railway Union. Sucessful because he did not
exclude anybody. Did not matter what the job was on the railway and did not matter if
immigrant. 1st successful strike against the great northern railroad. Had arbitrations.
Government forces managers to go to arbitration.
Other workers of other railroads are getting excited. Pullman workers for example. Try
to strike, so Pullman fires everybody. Refuses to arbitrate. The Union (ARU) says we
should boycott Pullman. All railroad people should refuse to handle Pullman cars. The
Pullman strike.
Management has to be union and said their contracts with Pullman were sacred.
Deadlock.
Debs leads fight and says no violence.
Gov sent in Federal troops to stop violence.
Richard Olney was attorney general. The management asked Olney to appeal to the
federal government to intervene. He said, force is the only way to beat these people. A
railroad strike is illegal. Got the order he needed.
Each person who struck was in violation now of a court order. Ordered federal troops
into Chicago.
Local governor did not like the troops. The big question is, “who has the power.”
Federal or State.
In this case, used federal power to break boycott. Troops made things kind of violent.
Leaders of strikers say, starved into submission.
Debs in Jail. Court ruled, the federal courts could use their powers to prevent mail and
interstate commerce. Issued injuction saying can’t strike. If injunction, you have to obey
it.
Bring in people who will work for lower wages.
Commission that said, what should we do in future. Answer was, has to have arbitration.
Key because that is what happens now.

Town
Outlaws Alcohol and prostitution
Nice Houses
Education
Sanitation
Parks
Low Taxes.

Started with Brotherhoods, little Unions by Craft. Industrial Union = by industry =


bigger.