The 1894 Strike That Paralyzed America’s Railroads Began In This Idyllic Chicago Town

The Pullman Historic District in Chicago, Illinois

In 1880, George Pullman built more than fancy train cars he created a whole town for his workers in Chicago. The neat rows of brick homes and grand buildings were meant to be a model community. Instead, they became ground zero for one of the biggest labor strikes in U.S. history.

Here’s how a company town sparked a revolution, and how you can visit it today.

America’s First Planned Company Town

George Pullman started building his model town on May 26, 1880, on prairie land 13 miles south of Chicago. The wealthy industrialist had made his fortune raising Chicago buildings to improve drainage before turning to railroad car manufacturing.

He bought 4,000 acres along Lake Calumet and turned 600 of them into a self-contained community. Workers who built his luxury sleeping cars would live in well-designed homes on tree-lined streets.

The town stood in stark contrast to Chicago’s crowded, unsanitary neighborhoods. Pullman wanted content workers and believed good housing would boost productivity.

When George Pullman Created His Industrial Utopia

Before his town experiment, Pullman had already changed American travel forever. His sleeping cars let passengers rest comfortably instead of sitting upright through long overnight journeys.

By 1867, his Palace Car Company was booming. Travelers gladly paid extra for the luxury of a Pullman berth, complete with fine woodwork and attentive service. Pullman noticed Chicago’s grim living conditions affected worker reliability.

He spent $8 million—equivalent to $240 million today—building a complete community from scratch. By 1883, nearly 8,000 people called Pullman home.

The Architect Who Designed An Ideal Working Community

Young architect Solon Spencer Beman got the chance of a lifetime when Pullman hired him at age 26. Beman created not just factories but an entire community of buildings. He designed over 1,300 brick houses with indoor toilets and running water—rare luxuries for workers in the 1880s.

The homes varied in size and detail, avoiding the cookie-cutter look of typical company housing. The Administration Building stood at the heart of town, its impressive clock tower visible for miles. Landscape architect Nathan Barrett added parks and tree-lined streets to complete the picture.

Life Inside America’s Most Perfect Town

Living in Pullman meant following George Pullman’s rules. The company owned every building and charged rents aimed at earning a 6% profit on its investment.

Workers got better housing than they could find elsewhere, with manicured lawns and garbage collection. But they paid for it—about 25% of their wages went to rent.

Pullman banned alcohol sales except at the Hotel Florence, where executives entertained visitors. Company inspectors regularly checked homes for cleanliness.

In 1896, Pullman won recognition as “The World’s Most Perfect Town” at an international exposition in Prague.

The Arcade That Served As The Community Center

The Arcade became Pullman’s social heart when it opened in 1882. Unlike anything workers had seen before, this massive brick building packed shopping, entertainment, and services under one roof.

The first floor housed retail shops along wide aisles. Upstairs, a 1,000-seat theater hosted performances while a subscription library offered 8,000 volumes at $3 per year for adults.

A post office, bank, and offices filled the remaining space. The third floor held meeting rooms for lodges like the Masons and Odd Fellows. Decades before shopping malls existed, Pullman created their prototype.

The 1893 Depression That Changed Everything

When economic panic hit America in 1893, Pullman’s perfect world crumbled. Orders for railroad cars dried up almost overnight. George Pullman slashed wages by 25-30% but refused to lower rents or prices at company stores.

Workers watched their paychecks shrink while the company continued paying dividends to stockholders. Some employees took home just $4.80 for two weeks of work, barely enough for food.

When desperate workers sent representatives to meet with Pullman in May 1894, he refused to see them. Instead, he fired them all.

The Strike That Paralyzed America’s Railroads

On May 11, 1894, Pullman workers walked off their jobs. The local strike might have ended quietly if not for Eugene V. Debs and his American Railway Union. In June, Debs called for a nationwide boycott of all trains pulling Pullman cars.

Railroad workers across America refused to handle the cars, bringing western rail traffic to a standstill. By month’s end, 125,000 workers on 29 railroads had joined the fight. Freight yards clogged with unmoved cars. Passengers found themselves stranded.

The railroads fought back through their General Managers’ Association, hiring replacement workers.

Federal Troops Arrive On Independence Day

As rail traffic ground to a halt, President Grover Cleveland took dramatic action. His Attorney General Richard Olney, a former railroad lawyer, got a court injunction against the strike on July 2.

Despite objections from Illinois Governor Altgeld, Cleveland sent federal troops to Chicago to enforce the order. The soldiers arrived on July 4, 1894—Independence Day. Violence erupted.

Angry crowds derailed trains and set fire to railcars. When the fighting ended, 26 people lay dead. Cleveland justified his actions, reportedly saying if it took the entire military to deliver a postcard in Chicago, “that card will be delivered.”

The Court’s Verdict Against The Company Town

George Pullman never recovered from the bitter strike. He died in 1897, his reputation in ruins. The next year, the Illinois Supreme Court ruled his company town illegal. The court declared that running a town fell outside the Pullman Company’s charter and ordered it to sell all non-industrial property.

The ruling effectively ended America’s most famous company town experiment. A federal commission investigating the strike condemned Pullman’s approach as “un-American” and mocked its beautiful appearance, noting “aesthetic features have little money value to employees when they lack bread.”

The Brotherhood That Changed Labor History

Pullman porters—mostly Black men who served sleeping car passengers—faced their own struggles with low wages and poor treatment. On August 25, 1925, they formed the Brotherhood of Sleeping Car Porters under A. Philip Randolph.

The Pullman Company fought the union with spies and intimidation. Black community leaders, fearing loss of what they saw as good jobs, initially opposed the union too. For twelve years, the Brotherhood persisted.

Finally, on April 25, 1937, they signed a groundbreaking agreement—the first between a Black-led union and a major American company. The victory helped launch the modern Civil Rights Movement.

How Preservationists Saved The Historic District

By 1960, Pullman had fallen on hard times. When developers announced plans to demolish the entire neighborhood for an industrial park, residents sprang into action. Americo Lisciotto became the first president of the newly formed Pullman Civic Organization.

The group lobbied officials and educated the public about the area’s historical importance. Their persistence paid off.

Pullman earned designation as an Illinois Historic District in 1969, a National Historic Landmark in 1970, and a Chicago Landmark in 1972. In 1973, the Historic Pullman Foundation formed to purchase and save the Hotel Florence from demolition.

Visiting Pullman Historic District

The Pullman Visitor Center is at 610 E. 111th Street, Chicago in an old clock tower building. It’s open every day from 9 AM to 5 PM, except on big holidays. Free tours happen regularly, or you can walk around on your own.

Make sure to see the Hotel Florence, Greenstone Church, and the fixed-up houses where workers used to live while you’re there.

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