, 1879-02-18


i,s llnc., At thrlr actual eas yalae. which, IN de-
fau't o. agreement, shnll hc fixed by arntratlon.
hnpo the rh !" D." liz to ests vi woa. s%sc
I = niso aHsoca that tho Chicago y A,ton shall
aFo the option to furnish canlta! Tor tho snlun ut
Tho time of An appraisal Of half thFec fourlha
Of tho cars nnA equipments under inc coatract md,
!np one Nnif Or three. .ioaftis ii aI tha gains aid
Eso!ta And bearing the Famc rronostion nf !oshes,
seemsn e hsre 70 f hsss Ill n" a "e
ton shall 10 used within five yeara from the dato
o. TIE conttaet.
making tho apnFa!*hl, ascettanug the profit to he
divided between this parties, etc.
TIE CONTRACTS WITH THE VARIOUS OTHER
companies, salsl Mr.. Pullman, after reading tho
Chicago u Alton agreement, were practically
The railroad company having tho option to
terminate u at stntul tmcs by giving duu 1,n-
tIca OF such intention and by taking the prop
Contract was, rs nearly a. might De, 1lat Tic
railroad cn1nonny might operate its 0wn cars:
Tint was to say, the railroad company would
IT. bind itself up for long term ot years, NI,t!
Company wasn't Of use md advantage to tho
railroad cnmpany and tho public, tlrn its func.
items onIht TO ceasc, and H. was provided TINT
they might cease IN this way. The railroad
company could mol cancel tl,c contract unless II
stockholders in tlrs Pullman Company were
protected and would tecetvo the valua Of ti'etf
property.
Tile Chairsnan observed that, w,,on the ralroal
reoplc saw an opportunity to cancel, they would
Of enurke tauro on II.
MI. Pullman responded lt,at the theory Of
w contract was thss-that !he eystel! Of
through lines l!ad become Rn acknowledged na-
cesalfy, both to the public alnl the railroad
companies. Each ro!nrany had tlle option, at
any. time. to. contribute three-fultrtha Of tho
os to practically rcreiye the earnings profits,
4 any, IN tlt. running nf secpinstars over It's
limo. The Pullman Company, In tint casc,
would own ampy onc-fourtl. OF the interest,
fit ol the. Pullman eystcm. while the pn'tc
would enjoy tho benefit III harmonious systcnl
t'mt would carry n'an from ona entl Ut tito
country to The eibrr. Contracts fud ernirel
during the past few years. hut they lad al! been
renewed With tho exception of ts,at with tic
Michigan Central.
Sir. AInson suggested TINT Vanlerb.lt's dual
connection witt, tint road and the Wagner TOM
panY wouia explain Tint.
Mr. Pullman renlicd tint Vanderbilt was the
largest owner Of sttck In thr Wagner Company,
md, when the t'ullmnu contracts expired with
the Michigan Central, tho new contracts were
With this exception, he knew Of no case tn
which railroad company hnd failed to rcnew
Its contract, anl III no case, without exception,
where Falrnad company lad Eone back to
tract with the Pullman Eninnany.
Mr.. 0ranEer asked hiF. Pullman II tho $7,500
earnings mentioned III the contract meant net
or Eross earnings.
Mr.. Pullman replied TINT tt,cy were psoss.
This amount he niA Mr., Blackstone, President
OF the Chicago g. Alton, hud found TO be neces-
sary to
REASONABLE INTEREST
on the capital. The Pullman Company had to
take the risk OF not earning one .llaf or one
quarter Of tlAt sum. III other wor1et II tho
Alton lsoad would guarantee tho Pullman Com
pnny sc, 600 per car, gross earnings, tllen tile
rulllnun Company could assume tho mntnte.
naovc. AS tile Alton load did not guarantee
them, they must have tlic maximum amount
1arge enough To Offset the amount tni the
gross earnings might 70 belnw. S1nco tho nlnl-
lux Of this runtruct, l1e added, the ChEcaGo &E
Northwestern md tic Chicng0, Burlington .E
Quincy contracts had expired but had Gccn re-
newed.
Mr.. Murray asked AIr. Pullman II ho could
furnish the Committee With tlle average eatn-
ings Of each cur per aunuIn.
Mr.. Pullman satd hc could and would from
the statements lying beforo him, copies Of
which would be furnished the Committee be-
foro its return. The figures, hc said, would
show tl,nt the Pullman Company had not, M the
1fobe-D Democrat inserted, SO largo surplus on
hand tl,at 1t dilu't know what to DO with It.
liu then read OF tho following statements
showing the results Ct running the Company's
sieepng-cars on tho Chicago 6 Alton for the
fiscal year ending July 81, 1873. ~ '"'"t
ctiicAao = ALTON.
Investment ,.-
AxlattH