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.
A company store owned and operated by the U.S. Coal and Coke Company in Lynch, Kentucky, 1946
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."
Company stores existed elsewhere than the United States, in particular in the early 1900s in Mexico, where textile workers at the largest cotton mill were paid in scrip. In a 1907 labor strike, workers attacked and looted the Río Blanco, Veracruz textile company's store. The workers were gunned down by the Mexican military, but in the aftermath of the violence, more retail outlets were opened in Rio Blanco.[3]
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]
^Athey, Lou (1990). "The Company Store in Coal Town Culture". Labor's Heritage. Vol. 2, no. 1. pp. 6–23.
^Fishback, Price V. (1992). "Did Coal Miners 'Owe Their Souls to the Company Store'? Theory and Evidence from the Early 1900s". Soft Coal, Hard Choices: The Economic Welfare of Bituminous Coal Miners, 1890-1930. p. 131. Chapter 8
^Turner, John Kenneth (1910). Barbarous Mexico (Reissued by University of Texas Press, 1969 ed.). Chicago, Kerr. pp. 169–174.
^Takaki, Ronald (1983). Pau Hana- Plantation Life and Labor in Hawaii- 1835-1920 (Paperback Edition, 1985 ed.). Univ of Hawaii Press. pp. 7.
Further reading
Crawford, Margaret (1996). Building the Workingman's Paradise: The Design of American Company Towns. ISBN9780860916956.
Green, Hardy (2010). The Company Town: The Industrial Edens and Satanic Mills That Shaped the American Economy. Basic Books. Excerpt and text search]
Martin, Cynthia Burns (2012). "The Bodwell Granite Company Store and the Community of Vinalhaven, Maine, 1859-1919". Maine History. Vol. 46, no. 2. Vinalhaven Island, Maine. pp. 149–168.
Tucker, Gene Rhea; Francaviglia, Richard (2012). Oysters, Macaroni, and Beer: Thurber, Texas, and the Company Store. the store--and the whole town, were owned by the Texas and Pacific Coal Company
Wright, Carroll Davidson (1893). Analysis and index of all reports issued by bureaus of labor statistics in the United States prior to November 1, 1892. United States Bureau of Labor. p. 264. {{cite book}}: |work= ignored (help) - guide to state studies of company stores in the 1880s
February 16, 2024
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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 A company store owned and operated by the U S Coal and Coke Company in Lynch Kentucky 1946Employee 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 U S Coal and Coke Company Store in 1946 Gary West VirginiaCompany 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 Company stores existed elsewhere than the United States in particular in the early 1900s in Mexico where textile workers at the largest cotton mill were paid in scrip In a 1907 labor strike workers attacked and looted the Rio Blanco Veracruz textile company s store The workers were gunned down by the Mexican military but in the aftermath of the violence more retail outlets were opened in Rio Blanco 3 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 See also editClawback General store History of coal miners Truck system Company scripReferences editNotes Athey Lou 1990 The Company Store in Coal Town Culture Labor s Heritage Vol 2 no 1 pp 6 23 Fishback Price V 1992 Did Coal Miners Owe Their Souls to the Company Store Theory and Evidence from the Early 1900s Soft Coal Hard Choices The Economic Welfare of Bituminous Coal Miners 1890 1930 p 131 Chapter 8 Turner John Kenneth 1910 Barbarous Mexico Reissued by University of Texas Press 1969 ed Chicago Kerr pp 169 174 Takaki Ronald 1983 Pau Hana Plantation Life and Labor in Hawaii 1835 1920 Paperback Edition 1985 ed Univ of Hawaii Press pp 7 Further reading Crawford Margaret 1996 Building the Workingman s Paradise The Design of American Company Towns ISBN 9780860916956 Green Hardy 2010 The Company Town The Industrial Edens and Satanic Mills That Shaped the American Economy Basic Books Excerpt and text search Martin Cynthia Burns 2012 The Bodwell Granite Company Store and the Community of Vinalhaven Maine 1859 1919 Maine History Vol 46 no 2 Vinalhaven Island Maine pp 149 168 Tucker Gene Rhea Francaviglia Richard 2012 Oysters Macaroni and Beer Thurber Texas and the Company Store the store and the whole town were owned by the Texas and Pacific Coal Company Wright Carroll Davidson 1893 Analysis and index of all reports issued by bureaus of labor statistics in the United States prior to November 1 1892 United States Bureau of Labor p 264 a href Template Cite book html title Template Cite book cite book a work ignored help guide to state studies of company stores in the 1880s Retrieved from https en wikipedia org w index php title Company store amp oldid 1206466352, wikipedia, wiki, book, books, library,
