How did the Pullman company town make money for George M. Pullman?
George M. Pullman designed the company town of Pullman, Illinois, to be a profitable enterprise by integrating it directly into his employees' financial lives. The town generated revenue primarily through the collection of rent from workers who resided in company-owned housing.1
To ensure these payments were prioritized, the company implemented a strict collection process: on payday, workers living in the town were issued two separate checksāone for their wages and one specifically for rent. A paymaster, accompanied by a rent collector, required workers to immediately endorse and return the rent check to the company.1
Furthermore, the company maintained profitability by keeping rents and the prices of goods and utilities fixed, even during the economic depression that began in 1893. While George M. Pullman reduced wages and cut jobs to lower costs during this period, he did not lower the cost of living for his tenants, ensuring that the company continued to extract income from its workforce regardless of the broader economic climate.12