New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-28
AIR. PULLMAN ON THE STAND
pIS STORY OF THE STRIKE.
~ ARBITRATION BECAUSE HE WAS ABLE
TO MANAGE HIS OWN BUSINESS.

WAGES PAID-1hE REV. DR.. EATON
TEsTIFIEs THAT THE DEsrIru-
TON IN PULLMAN HAS BEEN
EXAGGERATED
Chicago, Aug 27-George NJ Pullman appeared
As,ore the National Labor Commission this after
,oon as a voluntary witness. He said that the
,sasons for reducing wages We're purely matter
4, business, the manufacturing department
xas losing money. He saw no reason why the
company although 1t had this year declared
dividend Of $500 900. should raise the wages of
rsn In a department which was losing money
As 10 matters Of detail the witness referred the
oOmmission to Vice-President Wickes, who fol-
bved him on the stand.
Edward F. Byrant cashier and manager Of the
Pullman Loan and Savings Bank. was the first
x.,ness to testify before the commission II was
,he business OF his bank to transact an ordinary
banking business we'll as TO collect rents. Mr.
Byant said all wages at Pullman were paid in
the form of checks the Pullman Bank. Each
man got two checks-one for the amount OF rent
aue and one for the remainder Of his salary 1t
WAS not obligatory on the empoye to pay his
,snt Savings bank depositors were paid per
cent interest. The money was largely invested
rs vicinity. The maximum of savings deposits
sas sS77 900 and the minimum 1856 600
The witness then explained the banks method
m collecting the rents. The pay checks were
oven to each employe at tho window Of the bank
on pay days. and they were requested to pay
part Of their rent. Many had only paid 81 every
two weeks during the hard times Many had
,s!d nothing On May l. 1893, the bank had bills
e al
One year later this amount reached SOS 247. show
hg forcbly the difference made by the cut in
wages On August this amount reached s5S773
These bills did not represent all owing TO the
company II represented only those placed in
the hands Of the bank for collection. Mr.. Bryant
aid Miss Jennie Curtis who claimed she had
been pressed for her fathers rent after the lat
.ers death. had her own Indebtedness TO the COM
pany for rent since her father died
WHAT DR. EATON FOUND
The Rev. Charles H. Eaton. Of New-York an
nounced upon taking the stand that he knew
nothing before he came here of the conditions at
Pullman except what he had read in the payers.
1T is because Of a lifelong interest in social ard
economic questions that / came TO this city
went personally to Pullman and went into forty
homes There found the destltution not nearly
90 great as reported"
Il do not think the question OF destitution at
Pullman is germane 10 the matter we are in
vestigating." said Judge Worthington
We'll. thought perhaps it might show that
the management Of the town had been good II
at this late date so few cases Of destitution ex-
lsted"
The witness was not allowed TO testify further
concerning destitution. He gave It as his opinion
that the only way to avoid labor differences was
D elevate the social condition Of the workingmen.
md praised the library at Pullman as tending to
DO this.
George NJ. Pullman took the stand Immediately
after the noon recess. He stated that the Pull
man Palace Car Company was organized July 81.
49, with a capital of 81. 100000. The town of
Pullman established in 1850.
Commissioner Wright asked Mr.. Pullman TO
tel In his own way the objects OF the company
and why the town was built.
The plan was" said Mr.. Pullman, reading
from a typewriter manuscript. "to establish
community for workingmen which would enable
them to live in harmonious relations with the
company. The relations Of the Pullman COM
Nny are, however simply those Of a landlord in
regard to its employees. which 1t treats as tenants
The basis Of profit was 6 per cent per annum.
restment. The cost of establishing the streets
and improvements was Of course considered in
making this calculation. This does not include
The cost of the manufacturing plant"
The Pullman company. Mr.. Pullman said. did
not sell property within the limits OF the town Of
Pullman because the company did not wish OBJ
fctionabe characters to establish themselves In
The town There were in consequence no liquor
rores or houses Of i-repute in Pullman as there
might otherwise have been. Mr.. Pullman then
toceeded to explain the Pullman lease.
He said that the clause in the lease which pro-
nes that either party may terminate 1t by CIV
ING ten days notice was for the protection OF
ue Pullman company, so that IL might exclude
vi Objectionable characters.
What is the capital Of the. Pullman COM
Vany"' asked Chairman Wright.
Thirty-six million"
A SURPLUS OF OVER 100000.
1T has been stated in the public press that the
Fulman company has a surplus Of sl6.0oO.oOo
1t is more than that" said Mr.. Pullman.
This represents individual profits. and is for the
"'os' part invested in assets.
Are the dividends you pay based on capital
Of &3sO0O,ooO?"
They are. The dividends are per cent guar
uriy. The company has paid dividends since
"e beginning. For three years 1t paid per cent
SSuarlerly. and for while 91a per cent annually.
~A"eriy 1t has paid per cent L-.nually.
mas 1t been the practice oil company TO re-
.Se wages from time to time. and II so will you
va vs. OF such reduction?" asked Mr.. Wright
am not familiar with the daily workings OF
own Of Pullman. | will say, however. that
months We did not have an order for a car
'0lzed that unless something was done there
s"Ad r"ad be suffering at Pullman, and after con-
miAuon with Vice-President Wickes / deter
n,s1 ec to make bids under the actual cost OF con-
o. We did this, and l remember the first
thsI was for ffty-fve cars. l put in A bid Tor
se a cars at from $500 TO $4O0 below the cost OF
trha, making up my mind to make this con-
isvss rather than my men Idle. be-
~. many other car builders IN the country
h..ne me same way. AS evidence Of this. the next
m,n.'' bd TO mine was only s2f higher than
cs e On another occasion bid for a lot Of $50