>>486281>company townCommon in remote areas from the1800's through to the 1930's a company town is a place where practically all stores and housing are owned by the one company that is the only employer. The company provides infrastructure (housing, stores, transportation, sewage and water) to enable workers to move there and live. Company stores face little or no competition and prices are therefore not competitive so the employers end up getting back most of there worker salary.
It was a figure of speech he was asking if the financial cost out ways the earnings.