At the beginning of the twentieth century, the United States shifted to a consumer-oriented, industrial society, which fostered the development of new products and services as people moved to cities to find work. During this transformation from farm to factory, advertising and PR emerged as professions. While advertising drew attention and customers to new products, PR began in part to help businesses fend off increased scrutiny from the muckraking journalists and emerging labor unions of the time.8

The first PR practitioners were simply theatrical press agents: those who sought to advance a client’s image through media exposure, primarily via stunts staged for newspapers. The advantages of these early PR techniques soon became obvious. For instance, press agents were used by people like Daniel Boone, who engineered various land-grab and real estate ventures, and Davy Crockett, who in addition to performing heroic exploits was also involved in the massacre of Native Americans. Such individuals often wanted press agents to repair and reshape their reputations as cherished frontier legends or as respectable candidates for public office.

P. T. Barnum and Buffalo Bill

The most notorious press agent of the nineteenth century was Phineas Taylor (P. T.) Barnum, who used gross exaggeration, fraudulent stories, and staged events to secure newspaper coverage for his clients, his American Museum, and later his circus. Barnum’s circus, dubbed “The Greatest Show on Earth,” included the “midget” General Tom Thumb, Swedish soprano Jenny Lind, Jumbo the Elephant, and Joice Heth (who Barnum claimed was the 161-year-old nurse of George Washington, but who was actually eighty when she died). These performers became some of the earliest nationally known celebrities because of Barnum’s skill in using the media for promotion. Decrying outright fraud and cheating, Barnum understood that his audiences liked to be tricked. In newspapers and on handbills, he later often revealed the strategies behind his more elaborate hoaxes.

From 1883 to 1916, William F. Cody, who once killed buffalo for the railroads, promoted himself and his traveling show: “Buffalo Bill’s Wild West and Congress of Rough Riders of the World.” Cody’s troupe—which featured bedouins, Cossacks, and gauchos, as well as “cowboys and Indians”—re-created dramatic gunfights, the Civil War, and battles of the Old West. The show employed sharpshooter Annie Oakley and Lakota medicine man Sitting Bull, whose legends were partially shaped by Cody’s nine press agents. These agents were led by John Burke, who successfully promoted the show for its entire thirty-four-year run. Burke was one of the first press agents to use a wide variety of media channels to generate publicity: promotional newspaper stories, magazine articles and ads, dime novels, theater marquees, poster art, and early films. Burke and Buffalo Bill shaped many of the lasting myths about rugged American individualism and frontier expansion that were later adopted by books, radio programs, and Hollywood films about the American West. Along with Barnum, they were among the first to use publicity—a type of PR communication that uses various media messages to spread information about a person, a corporation, an issue, or a policy—to elevate entertainment culture to an international level.

Big Business and Press Agents

As P. T. Barnum, Buffalo Bill, and John Burke demonstrated, utilizing the press brought with it enormous power to sway the public and to generate business. So it is not surprising that during the nineteenth century, America’s largest industrial companies—particularly the railroads—also employed press agents to win favor in the court of public opinion.

The railroads began to use press agents to help them obtain federal funds. Initially, local businesses raised funds to finance the spread of rail service. Around 1850, however, the railroads began pushing for federal subsidies, complaining that local fund-raising efforts took too long. For example, Illinois Central was one of the first companies to use government lobbyists (people who try to influence the voting of lawmakers) to argue that railroad service between the North and the South was in the public interest and would ease tensions, unite the two regions, and prevent a war.

The railroad press agents successfully gained government support by developing some of the earliest publicity tactics. Their first strategy was simply to buy favorable news stories about rail travel from newspapers through direct bribes. Another practice was to engage in deadheading—giving reporters free rail passes with the tacit understanding that they would write glowing reports about rail travel. Eventually, wealthy railroads received the federal subsidies they wanted and increased their profits, while the American public shouldered much of the financial burden of rail expansion.

Having obtained construction subsidies, the larger rail companies turned their attention to bigger game—persuading the government to control rates and reduce competition, especially from smaller, aggressive regional lines. Railroad lobbyists argued that federal support would lead to improved service and guaranteed quality because the government would be keeping a close watch. These lobbying efforts, accompanied by favorable publicity, led to passage of the Interstate Commerce Act in 1887, the first federal law to regulate private industry, which required railroads to publicize their shipping rates, banned special lower rates to certain freights or passengers, and established a commission to oversee enforcement of the law.9 Historians have argued that, ironically, the PR campaign’s success actually led to the decline of the railroads: Artificially maintained higher rates and burdensome government regulations forced smaller firms out of business and eventually drove many customers to other modes of transportation.

Along with the railroads, utility companies such as Chicago Edison and AT&T used PR strategies in the late nineteenth century to derail competition and eventually attain monopoly status. In fact, AT&T’s PR and lobbying efforts were so effective that they eliminated all telephone competition—with the government’s blessing—until the 1980s. In addition to buying the votes of key lawmakers, the utilities hired third-party editorial services, which sent favorable articles about utilities to newspapers, assigned company managers to become leaders in community groups, produced ghostwritten articles (often using the names of prominent leaders and members of women’s social groups, who were flattered to see their names in print), and influenced textbook authors to write histories favorable to the utilities.10 The tactics of the 1880s and 1890s, however, would haunt public relations as it struggled to become a respected profession.

The Birth of Modern Public Relations

By the first decade of the twentieth century, reporters and muckraking journalists were investigating the promotional practices behind many companies. As an informed citizenry paid more attention, it became more difficult for large firms to fool the press and mislead the public. With the rise of the middle class, increasing literacy among the working classes, and the spread of information through print media, democratic ideals began to threaten the established order of business and politics—and the elite groups who managed them. Two pioneers of public relations—Ivy Lee and Edward Bernays—emerged in this atmosphere to popularize an approach that emphasized shaping the interpretation of facts and “engineering consent.”

Ivy Ledbetter Lee

Most nineteenth-century corporations and manufacturers cared little about public sentiment. By the early 1900s, though, executives had realized that their companies could sell more products if they were associated with positive public images and values. Into this public space stepped Ivy Ledbetter Lee, considered one of the founders of modern public relations. Lee understood that the public’s attitude toward big corporations had changed. He counseled his corporate clients that honesty and directness were better PR devices than the deceptive practices of the nineteenth century, which had fostered suspicion and an anti-big-business sentiment.

A minister’s son, an economics student at Princeton University, and a former reporter, Lee opened one of the first PR firms in the early 1900s with George Park. Lee quit the firm in 1906 to work for the Pennsylvania Railroad, which, following a rail accident, hired him to help downplay unfavorable publicity. Lee’s advice, however, was that Penn Railroad admit its mistake, vow to do better, and let newspapers in on the story. These suggestions ran counter to the then standard practice of hiring press agents to manipulate the media, yet Lee argued that an open relationship between business and the press would lead to a more favorable public image. In the end, Penn and subsequent clients, notably John D. Rockefeller, adopted Lee’s successful strategies.

By the 1880s, Rockefeller controlled 90 percent of the nation’s oil industry and suffered from periodic image problems, particularly after Ida Tarbell’s powerful muckraking series about the ruthless business tactics practiced by Rockefeller and his Standard Oil Company appeared in McClure’s Magazine in 1904. The Rockefeller and Standard Oil reputations reached a low point in April 1914, when tactics to stop union organizing erupted in tragedy at a coal company in Ludlow, Colorado. During a violent strike, fifty-three workers and their family members died, including thirteen women and children.

Lee was hired to contain the damaging publicity fallout. He immediately distributed a series of “fact” sheets to the press, telling the corporate side of the story and discrediting the tactics of the United Mine Workers, who had organized the strike. As he had done for Penn Railroad, Lee also brought in the press and staged photo opportunities. John D. Rockefeller Jr., who now ran the company, donned overalls and a miner’s helmet and posed with the families of workers and union leaders. This was probably the first use of a PR campaign in a labor-versus-management dispute. Over the years, Lee completely transformed the wealthy family’s image, urging the discreet Rockefellers to publicize their charitable work. To improve his image, the senior Rockefeller took to handing out dimes to children wherever he went—a strategic ritual that historians attribute to Lee.

Called “Poison Ivy” by corporate foes and critics within the press, Lee had a complex understanding of facts. For Lee, facts were elusive and malleable, begging to be forged and shaped. “Since crowds do not reason,” he noted in 1917, “they can only be organized and stimulated through symbols and phrases.”11 In the Ludlow case, for instance, Lee noted that the women and children who died while retreating from the charging company-backed militia had overturned a stove, which caught fire and caused their deaths. One of his PR fact sheets implied that they had, in part, been victims of their own carelessness.

Edward Bernays

The nephew of Sigmund Freud, former reporter Edward Bernays inherited the public relations mantle from Ivy Lee. Beginning in 1919, when he opened his own office, Bernays was the first person to apply the findings of psychology and sociology to public relations, referring to himself as a “public relations counselor” rather than a “publicity agent.” Over the years, Bernays’s client list included General Electric, the American Tobacco Company, General Motors, Good Housekeeping and Time magazines, Procter & Gamble, RCA, the government of India, the city of Vienna, and President Coolidge.

Bernays also worked for the Committee on Public Information (CPI) during World War I, developing propaganda that supported America’s entry into that conflict and promoting the image of President Woodrow Wilson as a peacemaker. Both efforts were among the first full-scale governmental attempts to mobilize public opinion. In addition, Bernays made key contributions to public relations education, teaching the first class called “public relations”—at New York University in 1923—and writing the field’s first textbook, Crystallizing Public Opinion. For many years, his definition of PR was the standard: “Public relations is the attempt, by information, persuasion, and adjustment, to engineer public support for an activity, cause, movement, or institution.”12

In the 1920s, Bernays was hired by the American Tobacco Company to develop a campaign to make smoking more publicly acceptable for women (similar campaigns are under way today in countries like China). Among other strategies, Bernays staged an event: placing women smokers in New York’s 1929 Easter parade. He labeled cigarettes “torches of freedom” and encouraged women to smoke as a symbol of their newly acquired suffrage and independence from men. He also asked the women he placed in the parade to contact newspaper and newsreel companies in advance—to announce their symbolic protest. The campaign received plenty of free publicity from newspapers and magazines. Within weeks of the parade, men-only smoking rooms in New York theaters began opening up to women.

Through much of his writing, Bernays suggested that emerging freedoms threatened the established hierarchical order. He thought it was important for experts and leaders to control the direction of American society: “The duty of the higher strata of society—the cultivated, the learned, the expert, the intellectual—is therefore clear. They must inject moral and spiritual motives into public opinion.”13 For the cultural elite to maintain order and control, they would have to win the consent of the larger public. As a result, he described the shaping of public opinion through PR as the “engineering of consent.” Like Ivy Lee, Bernays thought that public opinion was malleable and not always rational: In the hands of the right experts, leaders, and PR counselors, public opinion could be shaped into forms people could rally behind.14 However, journalists like Walter Lippmann, who wrote the famous book Public Opinion in 1922, worried that PR professionals with hidden agendas, rather than journalists with professional detachment, held too much power over American public opinion.

Throughout Bernays’s most active years, his business partner and later his wife, Doris Fleischman, worked with him on many of his campaigns as a researcher and coauthor. Beginning in the 1920s, she was one of the first women to work in public relations, and she introduced PR to America’s most powerful leaders through a pamphlet she edited called Contact. Because she opened up the profession to women from its inception, PR emerged as one of the few professions—apart from teaching and nursing—accessible to women who chose to work outside the home at that time. Today, women outnumber men by more than three to one in the profession.