corporations in the 19th century would hire employees. They would create certain rules to entrap their employees. Such as "employees are not allowed to leave company property for the duration of the contract". So they would be mining coal or some other ore, or cutting trees. The employees were now forced to remain on company land or forfeit their job.
They were now economically trapped. This can be abused to create a work force worse than slavery. Let me show you:
Employees were unable to go into town to buy provisions. They would have to go to the "company bank" and exchange most of their paycheck for company cash. Usually being charged 25% exchange fee. then rent for the space you placed your tent was to be paid, and all food was to only be purchased at company stores greatly market up and only company money was accepted in these stores. As I said before, leaving company grounds was cause for immediate termination. The company banks were very quick in offering their employees a line of credit. Eventually most of the employees were forced to work just to pay off the credit they owed to the corporate bank.
If the corporation balanced their bank correctly, they would have successfully made back their pay to the employees through their stores and banks. The typical worker would walk off of the work contract OWING money to the corporation at inflated interest rates.
These are the things that Theodore Roosevelt stopped once in office.
They were now economically trapped. This can be abused to create a work force worse than slavery. Let me show you:
Employees were unable to go into town to buy provisions. They would have to go to the "company bank" and exchange most of their paycheck for company cash. Usually being charged 25% exchange fee. then rent for the space you placed your tent was to be paid, and all food was to only be purchased at company stores greatly market up and only company money was accepted in these stores. As I said before, leaving company grounds was cause for immediate termination. The company banks were very quick in offering their employees a line of credit. Eventually most of the employees were forced to work just to pay off the credit they owed to the corporate bank.
If the corporation balanced their bank correctly, they would have successfully made back their pay to the employees through their stores and banks. The typical worker would walk off of the work contract OWING money to the corporation at inflated interest rates.
These are the things that Theodore Roosevelt stopped once in office.
