This Day in Labor History: June 26, 1894

On this day in 1894, the American Railway Union, headed by Eugene Debs, called a nationwide boycott in solidarity with their striking members at Pullman, Illinois. This action turned a small strike into one of the largest labor actions in the nation to that date, led to the pioneering use of the injunction to crush labor unions, and ended with President Grover Cleveland calling in the U.S. military to serve as a private army for the railroads, ending the strike.

The railroad-caused Panic of 1893 was not only emblematic of how corrupt railroads controlled the American economy in the Gilded Age, but how plutocrats expected the poor to sacrifice during hard times. George Pullman, owner of the Pullman Palace Car Company, which made sleeper cars for the railroads, created his own company town, south of Chicago. He provided workers everything they would need–housing, schools, stores. He also charged them high rates to live there, would not employ someone if they did not rent from him, and would evict them if they left his employment. When the Panic of 1893 hit, Pullman began losing money. His response was to lower wages by 25% while keeping the rent for his housing unchanged. In protest against this, as well as against working days that sometimes reached 16 hours, Pullman workers attempted to meet with the big boss, but Pullman refused to talk to them and fired three of the leaders.

Pullman workers leaving their workplace for the day.

Many of the workers had become members of the American Railway Union, the nation’s first industrial union. Led by a young Eugene Debs, the Pullman workers went on strike on May 11, 1894. Union members refused to run trains with Pullman cars which didn’t really affect rail traffic all that much as trains without union cars were let through. When the switchmen were disciplined for not running the Pullman cars, the entire ARU went on strike on June 26. By June 29, 150,000 workers were on strike and the American train system ground to a halt. Sympathy strikes across the nation damaged rail traffic even more. Basically, American workers, who rightfully blamed the rail companies for the Panic of 1893, started taking out their frustrations on the rail industry, the cause of many of their sufferings.

President Grover Cleveland had named Richard Olney, general counsel for the Chicago, Milwaukee, and St. Paul Railway as his Attorney General. With this kind of fair and impartial background on the matter, in his great wisdom Olney decided to issue an injunction against the ARU support of the strike. To justify the injunction, Olney used the Sherman Anti-Trust Act of 1890, which while intended to limit monopolies, became a favored tool of industry and government to crush unions instead. The federal courts and Supreme Court supported this interpretation. No doubt Antonin Scalia would have been proud to be a member of the Gilded Age federal court system. When Debs and the ARU refused to obey the injunction, Olney and Cleveland called out the military over the objection of Illinois Governor John Altgeld, who was sympathetic to the strikers. Commanded by General Nelson Miles, 12,000 U.S. troops, aided by U.S. Marshals, came in and ended the strike on the pretense that the Pullman Strike interfered with the delivery of the mail and violated the Sherman Anti-Trust Act.

Pullman strikers confronting the National Guard outside the gates to the Pullman factory.

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