The record-union., 1894-07-14

concede to an arbitration which might
decide that the Pullman works be oper-
ated at loss.
There is hardly anything new to be
said as to the position of the Pullman
| Company" said George Nj. Pullman, this
evening. But | have SO many indlca-
tions of the facility with which my ex-
pressions and those authorized by me
have become distorted. and thus mislead-
ing to the public, and of an entire forget
| ting of my earnest efforts to prevent the
strike, that perhaps it is well that should
again make a public assurance that the
| deplorable events of the last few weeks
have not been caused by the Pullman
1 Company's taking an obstinate stand in
a debatable matter and refusing to listen
| TO reason. The leaders of the disorder
have not hesitated to harass the public by
all means III their power, because, as they
say, the Pullman Company would not
submit to arbitration, and not that dis
order seems to be quelled they are rein
forced III their clamor for arbitration by
some prominent newspapers, but, so far
as know, by very few, ii any, business
/ men Of the country.
"Why is the demand concealed under
| the innOcently sounding word 'arbitra-
| tlonY little more than q year ago the
shops at Pullman were in prosperous
| condition. Work was plenty, wages
were high, and the condition of the en-
| ployes was indicated by the fact that the
local savings bank had savings deposited
| in it of $4,000, of which raarly all was
the property OF the employees. Our pay
rolls for that year show an average of
| 5000 per annum for every person, man,
woman or youth on the roll. Then came
the great pani and depression of last
summer. Many customers stopped nego-
tiations and Cancelled orders, and our
working force had to be reduced from
nearly 5000 10 1000 In November 1893.
The great business depression existing
throughout the country had naturally re-
| suited in a wage depression, and the only
hope OF getting orders was by bidding
for work at prices as low or lower than
could be made by other shops, and this,
of course, necessitated reduction in the
wages of the employees at Pullman. This
was arranged, as l supposed, and, in
| close competition, disregarding all ac-
count of capital and machinery, [ Sc
! cured enough We3~- TO gradually increase
our force to 4,20O, .he number on the roll
| last April.
Nine weeks ago the car-shops at Pull
man were working at building con-
tracts on hand enough to keep them GO
ing for about sixty days, and with busi-
ness forecasts leading to the belief that
new orders could soon be h.d. The most
important of the work on lland had been
taken by me in competition at prices
which were less than the actual cost to
the company of delivering without any
reckoning for the use of Cal tai and plant
This work was taken TO keep the large
force Of men employed ar to postpone,
with the hope of avoiding numberless
embarrassments to all classes of people at
Pullman and its vicinity, closing down
of the works. to prevent which the COM
pany considered it a wise policy to oper-
ate the shops temporarily at an actual
loss.
I'm this condition of things came the
agitation seeking to create 1. labor organi-
zation embracing all railway employees
and apparently other industries. In the
early part of May a committee of fifty
employees demanded restoration of the
wages year ago. i explained to this
/ committee minutely and i2boriously the
facts, showing that the company was al
ready paying them more han it was re-
ceiving for their contract work, and l
offered them for complete assurance, and
to end all question, inspection of our
books and contracts in hand. This, and
the beginning at once at Pullman
of promised careful investiga-
tion of a number of shop complaints,
seemed to end all trouble, but day later,
under the excitement of their recruiting
in the new organization. the workmen
closed the shops, thus themselves doing
what l was strenuously trying TO prevent
being done, and the employees who quit
their work have deprived t,Rmselves aud
their comrades of earning more than
100000 up to this time. The demand
made before quitting work was that the
wages should be restored to the scale of
last year, or, in effect, that the actual out
going money losses should be increased
to an amount equal TO about one-fourth of
the wages of the employees. 1t must be
clear to every business man and to every
thinking workman that no prudent en-
ployer could submit to arbitration the
question whether he should commit such
piece of business folly. Arbitration
always implies acquiesence in the decision
of the arbitrator, whether favorable or
adverse. How could i, as President of
the Pullman Company, consent to agree
that if any body of men not concerned
with the interests of the company's share
holders should, as arbitratOrs, for any
reasons seeming good to them, so decree,
| would open the shops, employ work
men at wages greater than their work
could be settled for, and continue this
ruinous policy indefinitely or be accused
of a breach of faith? Who will deny
that such question is plainly not SUBJ
ject of arbitration?
'The public should not permit the real
question which has been before it to be
obscured. That question was as to the
possibility of the creation and duration
of dictatorship. which could make all
the industries of the United States and
the daily comfort of millions dependent
upon them, hostages for the granting of
any fanatical whim OF such dictator.
Any submission to him would have been
long step in that direction, and, IN the
interest of every lawabiding citizen of
the United States, was not to be consid-
cred for a moment.
"a few words are pertinent as to some
charges against the company. One of
these charges is that the rents are exorbi-
tant, and that it is implied the Pullman
employees have no choice but to submit.
The answer is simple. The average
rental of tenementS at Pullman is at the
rate of So per room per month, and the
renting of houses at Pullman has no re-
lation to the work in the shops. The en-
ployes may. and very many do own or
rent their houses outside of the town, and
the buildings and business places in the
town are rented to the employees or others
in competition with neighbOring proper
critics. In short, the renting business OF
the Pullman Company is governed by
the same conditions which govern any
other large owner of real estate, except
that the company itself does some things
which in Chicago are assumed by the
city. If, therefore, it is not admitted that
the rents of any landlord are to be fixed
by arbitration, and that those of the adj
joining towns of Kensington and Rose
land should also be so fixed. it can hardly
be asked that the Pullman Company
alone should abandon the ordinary rules
which govern persons in that relation.
strenuous efforts have also been made
to create prejudice against the Pullman
Company by charges that its stock is
heavily watered. The Pullman Com
pany was organized twenty-seven years
ago with capital of 100000, of which
frr-D l., I'D. II