The record-union., 1894-08-28
STRIKE INVESTIGATION.
Continuation of Testimony Taken
by the National Commission.
GEORGE M. PULLMAN ON THE
WITNESS STAND.
The President of the Company Defines
the Motives Which Prompted Them
to Establish the Manufacturing
Plant and Homes for vorkingmen
at the Town Which Bears the
Name of the Company.
Special to the REcoRp-UNIoN.

was before the Labor Commission for
nearly three hours this afternoon. Vice
President Wickes occupied two hours,
and will appear again. At the outset OF
his testimony Mr.. Pullman made care
full preliminary statement OF his position
toward the commission, and defined the
motives which had moved the company
to establish its manufacturing plant and
homes for workingmen as 1t had. lie
dwelt at great length on the motives
which actuated the company in building
homes for the workmen at Pullman, de-
claring that the town had been made so
that the best class of mechanics would
prefer to live there rather than any other
place.
In reply to questions by Chairman
Wright, Mr.. Pullman told of the con-
tracts for work Undertaken by the COM
pany at a loss in order that the men might
be kept at work. He said: II found we
were being underbidden by other COM
panies even where we had figured the
work down to cost. | undertook to
make the Pullman Company''s bids
in order to secure the work Tor our
men. My recollection is that the flrst
order of that kind was for tifty-flye
cars on the Long Island Railroad.
Under my Instructions the cost
of material and labor was figured
on the basis OF a reduction of wages.
Then had the matter under considera-
ton here and in New York for about two
weeks. and finally put in a bid for some-
thing between $500 and S400 car below
the actual cost. [ made up my mind
that the company would contribute that
l., = ! n 10
Up to the time of the strike we had lost
more than SOC, 900 in pursuing this policy.
| explained this personally 10 the men
when they were having their conferences
with Mr.. Wickes. Mr.. Heathcote says
they wanted the wages of 1893. l SAID 1t
would be most unfortunate thing Tor
all of us should the wages OF 1898 be re-
stored. because there is not more than
six weeks work in the shop now and we
would be unable to get more on a OASIS OF
the wages of lS93."
Here Mr.. Herman asked: "Were the
books shown the men?"
NO, they were not, because the men
did not apply to see them, and the strike
came Friday"
'There were other grievances, were
there not?"
Brown had promised the men to take
there was Just cause for complaint"
Turning the subject. Judge Worthing-
ton brought out the fact that the COM
pauy's original stock OF S1,000.000 in 1867
had increased TO S36.000,000. That the
company had paid dividends of Y per
cent. during the first two years of its
81 per cent. during the next
two years, and 8 per cent. annually since,
and at the same time had accumulated
ffNS
Referring to the stock of the company
Mr.. Pullman said it represented actual
cash paid by the stockholders as the cap
ital 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 represented dividends.
Now, Mr.. Pullman said Commits
sioner Worthington, taking the whole
wear through. has the Pullman Company
made or lost money?'
1T has made money" was the answer.
.'You have paid your regular diyi-
dends?"
THAT is something like S2,S00,000 you
have paid out in dividends last year?"
.'Yes, but that includes the latter part
of the Worlds Fair season, which was
exceptional"
"I.et me ask you, Mr.. Pullman,
whether you do not think company
that pays dividends of S2,S00,000 could
not afford to spare the losses of its en-
ployees who have worked for it so long?"
1.-The manufacturing business is sepa-
rate from the business of the sleeping car
company. | know no reason why
should take the profits OF 4,2O0 stock
holders in the Pullman Sleeping Car
Company and pay men higher rate of
wages than was paid in other parts of the
country tor the same work, or than was
paid by other companies for the same
work"
"Has the Pullman Company during
the years of its prosperity ever advanced
the wages of its employees voluntarily ?"
81 do not know as TO that. 1t has al
WAYS sought to pay fair wages"
s'NVhat do you see that is Objectionable
in submitting a difference like this to
arbitration"
.sThere are some matters that are proper
subjects for arbitration, but / cannot
arbitrate on q question where l know the
facts To be thus. The question aas to
whether our shops should continue to
run at loss is thing that could not be
arbitrated.
"Why was it impossible?"
s'Because it violates the principle that
a man has right to manage his own bus
mess"
''Suppose the arbitrators were to say,
I'VE see YOU are losing, but these men
have been with you a long while; you
can afford to share their losses: we think
you should at least pay living wages
what would you say to that?''
t.My point was to work with the men
and secure the disbursement of the large
sums involved in the contracts. and lose
money for the company, ii the men
would agree to bear their share in re-
duction of 20 to 26 per cent. in their
wages"
Judge Worthington wanted to know
wherein it was wrong to take the money
of the stock holders and pay higher wages
when the management was ready to take
contracts at loss, or the stockholders
money to keep the plant going?
Mr. Pullman said the execution of the
at a loss was better than for the
plant TO be idle.
80" interrupted Mr.. Herman "you
had that in view as well as the employ
stop the plant because you knew that
would be a loss to stockholders, and you
did not want to scatter your men because
you knew it would be difficult to get a
force together again that would do
economical work?'
.'Yesn
"Was your salary reduced, Mr.. Pull
man?'
The witness replied it had not been.
Is Nor the salaries of fsuperintendents or
foremen?"
Mo-
"Why?u
Mr.. Pullman said it was rot good
policy to reduce the salaries of high oifi-
cialS, because men of their calibre were
not easily replaced.
Mr. Pttllrpan xvac tI1on ara11caI or1I