A company store is a retail store selling a limited range of food, clothing and daily necessities to employees of a company. It is typical of a company town in a remote area where virtually everyone is employed by one firm, such as a coal mine. In a company town, the housing is owned by the company but there may be independent stores there or nearby.
Employee-only company stores often accept scrip or non-cash vouchers issued by the company in advance of periodic cash paychecks, and gives credit to employees before payday. Except in very remote areas, company stores in mining towns became scarcer after the miners bought automobiles and could travel to a range of stores. Even so, the stores could survive because they provided convenience and easy credit. Company stores served numerous additional functions, as well, such as a locus for the government post office, and as the cultural and community center where people could freely gather. [1]
Company stores were monopolistic institutions, funneling workers' incomes back to the owners of the company. This is because company stores often faced little or no competition for workers' earnings on account of their geographical remoteness, the inability and/or unwillingness of other nearby merchants (if any existed) to accept company scrip, or both. Prices, therefore, were typically high. Allowing purchases on credit enforced a kind of debt slavery, obligating employees to remain with the company until the debt was cleared.
Regarding this reputation, economic historian Price V. Fishback wrote:
"The company store is one of the most reviled and misunderstood of economic institutions. In song, folktale, and union rhetoric the company store was often cast as a villain, a collector of souls through perpetual debt peonage. Nicknames, like the "pluck me" and more obscene versions that cannot appear in a family newspaper, seem to point to exploitation. The attitudes carry over into the scholarly literature, which emphasizes that the company store was a monopoly." [2]
The songs Fishback mentions include the popular song "Sixteen Tons", which contains such lines as "Saint Peter, don't you call me, 'cuz I can't go. I owe my soul to the company store."
In Mexico, during the Porfiriato period (late 1800 to early 1900), the "tiendas de raya" (company stores) were a prominent symbol of labor and peasant exploitation. These stores, operated by the owners of haciendas or factories, sold essential items to workers, often at inflated prices and typically paying with vouchers instead of cash. This kept workers in a continuous debt cycle to the hacienda or company, binding them almost like slaves to the land or industrial work without the possibility of escaping poverty.
A notable instance of the oppressive nature of tiendas de raya occurred in the early 1900s at Río Blanco, Veracruz, home to Mexico's largest cotton mill. Workers there were paid in scrip, which could only be used at the company's store. In 1907, textile workers, fed up with this system, went on labor strike and attacked and looted the company store. The Mexican military responded harshly, gunning down many of the strikers. Despite the tragic violence, the aftermath saw the opening of more retail outlets in Río Blanco, as if to reinforce the tienda de raya system. [3]
From the earliest insurrections of the Mexican revolution, led and promoted by the Mexican Liberal Party, the looting and destruction of the tiendas de raya became key symbolic and strategic actions. With the actual outbreak of the Mexican Revolution in 1910, this resentment intensified. The deep social discontent, built up after years of exploitation, was primarily directed towards these stores and their managers.
Finally, in 1915, Venustiano Carranza, one of the revolutionary leaders and eventual president of Mexico, took decisive action against this oppressive system. By his order, the tiendas de raya were eliminated across the country, marking a significant shift in the fight for social and economic justice. This act was intended not only to relieve the direct economic exploitation of workers but also to break down the economic power that large landowners and businessmen held over the working class.
Possibly the first company store in the world was in Hawaii. William Hooper started Hawaiiʻs first sugar plantation in 1835 at Koloa, on the island of Kauai. He hired 23 Hawaiian locals and paid them in a cardboard scrip, notated in various amounts. The scrip could only be exchanged for merchandise at his store. [4]
Boswell is a borough in Somerset County, Pennsylvania, United States. It is part of the Johnstown, Pennsylvania Metropolitan Statistical Area. The population was 1,221 at the 2020 census.
The United Mine Workers of America is a North American labor union best known for representing coal miners. Today, the Union also represents health care workers, truck drivers, manufacturing workers and public employees in the United States and Canada. Although its main focus has always been on workers and their rights, the UMW of today also advocates for better roads, schools, and universal health care. By 2014, coal mining had largely shifted to open pit mines in Wyoming, and there were only 60,000 active coal miners. The UMW was left with 35,000 members, of whom 20,000 were coal miners, chiefly in underground mines in Kentucky and West Virginia. However it was responsible for pensions and medical benefits for 40,000 retired miners, and for 50,000 spouses and dependents.
Truck wages are wages paid not in conventional money but instead in the form of payment in kind ; credit with retailers; or a money substitute, such as scrip, chits, vouchers or tokens. Truck wages are a characteristic of a truck system, and are banned by the labour legislation of many countries.
A scrip is any substitute for legal tender. It is often a form of credit. Scrips have been created and used for a variety of reasons, including exploitative payment of employees under truck systems; or for use in local commerce at times when regular currency was unavailable, for example in remote coal towns, military bases, ships on long voyages, or occupied countries in wartime. Besides company scrip, other forms of scrip include land scrip, vouchers, token coins such as subway tokens, IOUs, arcade tokens and tickets, and points on some credit cards.
A company town is a place where all or most of the stores and housing in the town are owned by the same company that is also the main employer. Company towns are often planned with a suite of amenities such as stores, houses of worship, schools, markets, and recreation facilities.
The American multinational retail chain Walmart has received criticism from parties such as labor unions and small town advocates for its policies and business practices.
H-E-B Grocery Company, LP, is an American privately held supermarket chain based in San Antonio, Texas, with more than 380 stores throughout the U.S. state of Texas and the country of Mexico. The company also operates Central Market, an upscale organic and fine foods retailer. As of 2022, the company had a total revenue of US$38.9 billion. H-E-B ranked number 6 on Forbes' 2022 list of "America's Largest Private Companies". The company also ranked number 3 on Forbes' 2024 list of "Customer Experience All-Stars." H-E-B was named Retailer of the Year in 2010 by Progressive Grocer. Supermarket News ranks H-E-B 13th on the list of "Top 75 North American Food Retailers" by sales. Based on 2019 revenues, H-E-B is the 19th-largest retailer in the United States. It donates 5% of pretax profits to charity. The official mascot of H-E-B is named H-E-Buddy, an anthropomorphic brown grocery bag, with multiple grocery items emerging from the top.
The Battle of Matewan was a shootout in the town of Matewan in Mingo County and the Pocahontas Coalfield mining district, in southern West Virginia. It occurred on May 19, 1920 between local coal miners and their allies and the Baldwin–Felts Detective Agency. The dead included two brothers of the detective agency's founder and Matewan's mayor Cabell Testerman, who supported the union.
A coal town, also known as a coal camp or patch, is a type of company town or mining community established by the employer, a mining company, which imports workers to the site to work the mineral find. The company develops it and provides residences for a population of miners and related workers to reside near the coal mine. The 'town founding' process is not limited to mining, but this type of development typically takes place where mineral wealth is located in a remote or undeveloped area. The company opens the site for exploitation by first, constructing transportation infrastructure to serve it, and later to establish residences for workers. Mineral resources were sometimes found as the result of logging operations that established clear-cut area. Geologists and cartographers could then chart and plot the lands for exploitation.
Company scrip is scrip issued by a company to pay its employees. It can only be exchanged in company stores owned by the employers. In the United Kingdom, such truck systems have long been formally outlawed under the Truck Acts. In the United States, payment in scrip became illegal in 1938 as part of the Fair Labor Standards Act.
The Westmoreland County coal strike of 1910–1911, or the Westmoreland coal miners' strike, was a strike by coal miners represented by the United Mine Workers of America. The strike is also known as the Slovak Strike because about 70 percent of the miners were Slovak immigrants. It began in Westmoreland County, Pennsylvania, on March 9, 1910, and ended on July 1, 1911. At its height, the strike encompassed 65 mines and 15,000 coal miners. Sixteen people were killed during the strike, nearly all of them striking miners or members of their families. The strike ended in defeat for the union.
In the United States, the Hillbilly Highway is the out-migration of Appalachians from the Appalachian Highlands region to industrial cities in northern, midwestern, and western states, primarily in the years following World War II in search of better-paying industrial jobs and higher standards of living. Many of these migrants were formerly employed in the coal mining industry, which started to decline in 1940s. The word hillbilly refers to a negative stereotype of people from Appalachia. The term hillbilly is considered to be a modern term because it showed up in the early 1900s. Though the word is Scottish in origin, it does not derive from dialect. In Scotland, the term hill-folk referred to people who preferred isolation from the greater society and the term billy referred to someone being a "companion" or "comrade". The Hillbilly Highway was a parallel to the better-known Great Migration of African-Americans from the south.
The history of coal mining in the United States starts with the first commercial use in 1701, within the Manakin-Sabot area of Richmond, Virginia. Coal was the dominant power source in the late 1800s and early 1900s, and although in rapid decline it remains a significant source of energy in 2024.
The Coal Creek War was an early 1890s armed labor uprising in the southeastern United States that took place primarily in Anderson County, Tennessee. This labor conflict ignited during 1891 when coal mine owners in the Coal Creek watershed began to remove and replace their company-employed, private coal miners then on the payroll with convict laborers leased out by the Tennessee state prison system.
The Consolidation Coal Company (BBC) was founded in 1875 in Iowa and purchased by the Chicago and North Western Railroad in 1880 in order to secure a local source of coal. The company operated in south central Iowa in Mahaska and Monroe counties until after World War I. Exhaustion of some resources, competition from overseas markets, and other changes led to the company's closing down its mines and leaving its major planned towns by the late 1920s. The CCC worked at Muchakinock in Mahaska County until the coal resources of that area were largely exhausted. In 1900, the company purchased 10,000 acres (40 km2) in southern Mahaska County and northern Monroe County, Iowa.
Price V. Fishback is an economic historian. He is a professor of economics at the University of Arizona and a research associate at the National Bureau of Economic Research. His research on American economic history has included employment and labor in the nineteenth and early twentieth centuries especially in the coal industry, and government programs of the New Deal. His work has been recognised by the Cliometric Society via their awarding him a Clio Can in recognition of his "exceptional support of cliometrics". Prior to arriving to the University of Arizona, Fishback was an Assistant and later Associate Professor at the University of Georgia.
The Redstone Historic District is located in and near the unincorporated community of that name in western Pitkin County, Colorado, United States. It includes the original community of Redstone as built by Colorado Fuel and Iron (CFI) for the coal miners it employed. In 1989 it was recognized as a historic district and listed on the National Register of Historic Places.
People have worked as coal miners for centuries, but they became increasingly important during the Industrial Revolution when coal was burnt on a large scale to fuel stationary and locomotive engines and heat buildings. Owing to coal's strategic role as a primary fuel, coal miners have figured strongly in labor and political movements since that time.
Labor trafficking in the United States is a form of human trafficking where victims are made to perform a task through force, fraud or coercion as it occurs in the United States. Labor trafficking is typically distinguished from sex trafficking, where the task is sexual in nature. People may be victims of both labor and sex trafficking.
Industrial coal mining in Mexico first dates to the year 1884 at the Sabinas basin, in the northern border state of Coahuila. The vast majority of the nation's known reserves remain in this relatively small Región Carbonífera.
Notes
Further reading