Paternalism was considered by many nineteenth-century businessmen as a moral responsibility, or often a religious obligation, which would advance society whilst furthering their own business interests. Paternalism, a subtle form of social engineering, refers to the control of workers by their employers who sought to force middle-class ideals upon their working-class employees. Without a source of employment, the communities lose property value and population as people leave to find work elsewhere. However, if the primary company experiences hardship or fails outright, or the industry fades in importance – such as when anthracite mining declined due to dependence on steam locomotives to spur demand – the economic effect on the company town can be devastating. Similar dependencies may exist in specific neighborhoods or areas within larger cities.Ĭompany towns often become regular public cities and towns as they grow and attract other settlement, business enterprises, and public transportation and services infrastructure. The company may also donate a church building to a local congregation, operate parks, host cultural events such as concerts, and so on.Ī town that existed prior to the establishment of a primary business may not officially be a company town, but if the majority of citizens are employed by a single company, similar conditions may exist (especially in regard to the town's economy). Typically, a company town is isolated from neighbors and centered on a large production factory, such as a lumber or steel mill or an automobile plant, and the citizens of the town either work in the factory, in one of the smaller businesses, or are a family member of someone who does. In the Soviet Union there were several cities of nuclear scientists ( atomics) known as atomgrad particularly in Ukraine those were Pripyat, Varash, Yuzhnoukrainsk among others. Since company stores often had a monopoly in company towns, it was often possible to pay in scrip through a truck system, although not all company towns engaged in this particular practice. Dam sites and war-industry camps founded other company towns. Traditional settings for company towns were where extractive industries – coal, metal mines, lumber – had established a monopoly franchise. Others developed more or less in unplanned fashion, such as Summit Hill, Pennsylvania, United States, one of the oldest, which began as a Lehigh Coal & Navigation Company mining camp and mine site nine miles (14.5 km) from the nearest outside road. Some company towns have had high ideals, but many have been regarded as controlling and/or exploitative. They are usually bigger than a model village ("model" in the sense of an ideal to be emulated). Company towns are often planned with a suite of amenities such as stores, houses of worship, schools, markets and recreation facilities. The town of Siedlung Eisenheim in Oberhausen, GermanyĪ company town is a place where practically all stores and housing are owned by the one company that is also the main employer.
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