St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-08-28
Tells the Commission Of His
Philanthropy in Rum
ming at a Loss.
OUT $4,000 ON CONTRACTS,
But Enough Profits We're
Left to Pay $2,S00,000
Dividend.
HIS SALARY WAS NOT CUT,
Nor That Of Other Officials
Vice President Wickes
Also Testifies.

CHICAGO, Aug. 27.-George NJ. Pull
man was before the labor commission
for nearly three hours this afternoon.
Vice President Wickes. who followed
his superior, occupied two hours, an
will appear again.
At the outset of his testimony Mr..
Pullman made careful preliminary
statement of his position toward the
commission, and defining the motives
which had moved the company to estab-
lish its manufacturing plant and homes
for workingmen as it had. He dwelt
at great length on the motives which
had actuated the company in building
homes for the workingmen at Pullman,
declaring that the town had been made
attractive. so that the best class of
mechanics would prefer t. live there
rather than in any other place. In
answer to queries by Chairman Wright.
Mr.. Pullman told of the contracts for
work undertaken by the company at
loss in order that the men might be
kept at work. He said:
II found we were being underbid by
other companies, even where we had
figured the work dowu to cost. L under
took to make the Pullman companv's
bid lower than any others to secure the
work for our men. My recollection is
that the first order of that kind was for
fifty-five cars on the Long Island rail-
road. Under my instructions the cost
of material and labor was figured
on the cars on the basis of the
reduction in wages. Then | had the
matter under consideration here and in
the New York Office for about two
weeks, and finally put in bid for some
thing between $500 and S4G0 car be-
low actual cost. 1 made up my mind
that the company would contribute that
much rather than have the men ide.
''Up to the time of the strike we had
Lost More Than $4,000
in pursuit of this policy. l explained
this personally to the men when they
were having their conferences with MIR.
Wickes. Mr.. Heathcote said they
wanted the wages of 1898. said:
sit would be most unfortunate
thing for all of you If the wages of 1898
were restored, because there is not more
than SIX weeks work in the shops now,
and we would be unable to get any more
on basis of the wages of 49,"
Here Mr.. Herman interrupted to know
il the company had not promised to
discharge none Oh the committeekAthat
had waited upon Mr.. Wickes. and
l,n hnd
Mr.. Pullman said he did not know as to
that. but Mr.. Wickes could tell the COM
mission all about it. Mr.. Herman con-
tinued:
"Were the books shown to the men?"
mo, they were not shown, because
the men did not apply to see them, and
the strike came Friday"
"There were other grievances. were
there not?"
Mr.. Brown had promised the men to
take them up and remedy them wher-
ever there was just cause for complaint.
AS understand it, they had begun an
investigation of the minor grievances
when the strike came" Answering
Judge Worthington, Mr.. Pullman said
he did not have charge of detail work
in connection with the co ompanY's af-
fairs, but that he was president and
received the reports of other officers.
The Judge asked:
LAS to the reported declaration of
yours that you had nothing to arbitr ate,
were you correctly reported?"
II have already explained my views
on that subject. They are conta ined
in the printed statement submitted,"
referring to the printed interviews pub
lished during the progress of the strike.
Turning the subject, Judge Worthing-
ton brought out the fact that the COM
pany'S original capital stock of 81, 900, 600
in 1867 had increased to $50, 600, 600; that
the company had paid dividends of l2
per cent during the first two years of its
organization, 81 per cent during the
next two years, ,and
s Per Cent Annually
since, and at the same time had accumu-
lated surplus amounting to $50, ,000, 900.
He also elected the statement that the
stock Of the Pullman Land association
was entirely in possession of the
Pullman Palace Car company, hay-
ing been acquired gradually by
the investment of the car company's
surplus earnings in the certificates of
the land association. The original 500
acres on which the town stands was ac-
quired by the car company under legal
advice and by the authority of its char
ter, which gave it the right to acquire
land to ths amount needed in the COM
pany's business operations.
Recurring to the stock of the COM
pany, Mr.. Pullman said it represented
actual cash paid by the stockholders, as
the capital was needed, and the capital
stock was increased for the legitimate
business of the company. There was
no water" in it, and none of it repre-
sented stock dividends.
Coming back to the question of arbi-
tratlon, Mr.. Pullman said he remenl-
bered no formal attempt to get hin to
arbltrate with the men,. He had de-
clared his willingness to arbitrate. 1.-The
only question with me-" he said, was
whether the shops at Pullmon should
be closed, or whether we should put
prices so low as to command all the
work available i'll the country. 1t was
not the amount of loss, but the principle
involved that made me averse to arbi-
tration."
"No1. Mr.. Pullman" said Commits
sioner Worthington, taking the whole
year through, has the Pullman company
made or lost money!"
ut has made money" was the an
swer.
Commissioner Worthington continued
the puestipnaJ