Definition and History

Company towns are communities built and controlled by businesses. During the Industrial Revolution, they sprang up across the United States, particularly in industries such as textiles, coal, and steel.

The Good: Idyllic Communities

Some company towns, like Hershey, Pennsylvania, and Corning, New York, were designed to be worker paradises. Hershey provided its employees with comfortable housing, amenities, and even an amusement park. Corning invested heavily in housing, recreation, and a world-renowned glass museum.

The Bad: Prisons of Poverty

Coal mining towns, especially in Kentucky and West Virginia, were often the antithesis of idyllic. Harsh conditions, poverty, and abuse were rampant. Workers lived in barebones housing, earned scrip instead of real money, and were forced to buy goods at inflated prices from company stores.

The Ugly: Labor Strife

The exploitation of workers in company towns led to widespread labor unrest. In 1894, a strike at Pullman, Illinois, became one of the most famous organized labor conflicts in U.S. history. The strike resulted in violence, government intervention, and the creation of Labor Day as a national holiday.

Iconic Company Towns

Lowell, Massachusetts: The First Planned Industrial Community

Lowell, founded in the early 19th century, was the first large-scale planned industrial community in the United States. It relied on hydropower to power its textile mills and recruited young, single women as workers. Today, visitors can explore the Lowell National Historical Park to learn about its history.

Hershey, Pennsylvania: A Chocolate Paradise

Milton Hershey founded Hershey in 1903 to be a model company town. He provided workers with comfortable housing, amenities, and a nearby amusement park. Today, Hershey remains a thriving company town with a booming tourism industry.

Pullman, Illinois: A Railroad Town Divided

Pullman was built by George Pullman in the 1880s to house workers for his railroad car company. The town was divided along racial lines, with black workers facing discrimination and lower wages. In 1894, a strike at Pullman led to widespread violence and government intervention.

Lynch, Kentucky: A Coal-Mining Town’s Decline

Lynch, once a bustling coal-mining town, is now a ghost of its former self. Its coal mine has closed, and its population has dwindled. Visitors can explore the Portal 31 Underground Mine Tour to learn about the town’s mining history.

Corning, New York: A Glass-Making Mecca

Corning is both a historic and modern company town. Although it was not founded by the Corning Glass Works company, it became a major beneficiary in the mid-20th century. The company invested heavily in the town, including the creation of the Corning Museum of Glass, which is now world-renowned for its collection of glass art.

The Legacy of Company Towns

Company towns have played a significant role in the development of the American economy. While some were model communities, others were places of exploitation and abuse. Today, some company towns still exist, while others have faded into history. The lessons learned from company towns continue to shape labor relations and social welfare policies in the United States.