The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-08-28
He Says There Is Nothing That
Can Be Arbitrated.
MUST RUN HIS OWN BUSINESS.
How He Took Work at loss 10 keer
His Shops Running.
The Company Paid s.. Seo. GOO in pivi-
dends Last Near-The oneials' sala-
ries Not Reduced Rival works TO
BE Started in Kansas


was before the labor commission Tor nearly
three hours this afternoon. Vgce PreSi-
dent Nickes occupied two hours, aud " ill
appear again. A. tue outset cf his testimony
Mr.. Pullman made a careful prelimin ary
statement Of his position toward the COM
mission. lie dwet at great length on The
motives which aciuated tie company in
building homes for the workingmau at
Pullman, declaring that the town had
been made 20 that the best class OF me-
ohanies would prefer to live there rAth er
than IN any other place.
In reply 10 questions BY Chairman
Wright Mr.. Pullman told OF the con-
tracts for work undertaken BY the com
pany at loss. in order that the men
might be kept At work. lie said:
81 found we were being underbidden by
other companies, even when We had iiE-
ured the work down 10 cost. l undertook
10 make the Pullman comDany's b.d low
IN order TO secure the work for our
men. Ny recollection Is that the first
order OF that klad Was tfty-hve cars on
the Long Island railroad. Under my in-
structlons the cost of material and tabor
was figured on the basis of a reduction
in wages. Then | had the matter under
consideration here and in New York FOR
about two weeks. and finally put in a bid
Tor something between 500 and s SH0 car
below the actuai cost. | made up my mind
that the company would contribute that
much rather than have the men idle. Up
70 the time of the strike We had lost more
than $4,000 in pursuing this policy. |
explained this personally 10 the men
when they We're having their
conference with Mr.. Wickes. Mr..
Heathcote said they wanted the
wages of 1893. said Ii
would be a most unfortunate thing for all
OF us should the wages of 1898 be restored,
because there was not more than SIX weeks
work IN the shop. and we.would be unable
- get more ON a basis of the wages Of
1898.
books shown the men ?"
"No, they were not, because the men
did not apply 10 see them, aud the strike
came on Friday"
There were other grievances. we're there
not2"
There were. but Mr.. Wickes and Mr..
Brown bad promised the men 10 take and
remedy them wherever there was just
cause OF complaint.
Turning the subject. Judge Worthing-
ton brought out the fact that the com
pany's original capital stock of
$1,000, 90 in 1867, had been increased
10 $4,000. 900; that the company
had paid dividends OF II per cent.
during the first two years OF its organiza-
tion ga per cent. during the next two
years, and s per cent. annually since. and
at the same time had accumulated
surplus amounting to $25,0O00O Re
leFring TO the stock Of the COM
pany, Mr.. Pullman said ii represented
actual cash paid by the stockholders as
the capital was needed. and the capital
stock vas increased for the legitimate busi-
ness Of the company. There vas no water
in it and none of II represented dividends.
Nov, Mr. Pullman" said Commits
sioner Worthington. taking the whole
wear through, has the Pullman company
made or lost money
ut has made money" was the answer
lyon have paid your regular divi-
dendsl'
..Yes. sir; per cent"
THAT is something like s.. 500. go you
have paid out IN divid ends last year,"
Yes. but that includes the latter part Of
the Worlds fair season, which was ex-
ceptional"
you do not think that = company that
pays dividends OF s. $4,000 could NOT af-
ford 10 share the losses OF its employees
vino have sorked tor u so lonE2n
The manufacturing business is separate
from the business OF the sleeping car
company / know no reason why
should take the profits Of 400
stockholders in the Pullman Sleep
ing Car Company and nay men
n higher rate Of wages than vas paid in
other parts OF the country for the same
work. or than was paid by other compa-
nes for the same work.
Has the Pullman company during the
years OF it's prosperity ever advanced the
wages of its employees voluntarily
II do not know as 10 that. tt has al
ways sought to pay fair wages.
What DO you see that is Objectionable
In submitting difference like this TO arbi-
tration p
There are some matters that are proper
subjects for arbitration, but | can not
arbitrate on a question where | know the
facts to be thus. The question rs TO
whether our shops should continue TO run
at a loss is a thing that could not be arbl-
trated."
sWhy was Il impossiblel 2"
because 10 violates the principle that a
man has a right 10 manage h,s Own busl-
ness"
Suppose the arbitrators were 70 say to
you, We see you are losing, but these
men have been with you q good long
while, you can afford to share their losses I.
xe think Won should az least pay living
waees9' What would you say 10 that 2"
my polnt AZ the time was 70 work with
the men and secure tBe disbursement Of
the large sums involved in the contracts
and lose money FOR the company II the
men would agree 20 bear their share in a
reduction OF - 20 = per cent IA their
wages.
Judge Worthington wanted 20 know
wherein II was wrong 20 take the money
A.
wages when the mAnAgemsnt was ready
70 take contracts at = loss, or take the
ssockholders' money to keep tbe plant
going.
Mr.. Pullman said the execution Of the
contracts AZ loss vas better than for the
plant 10 10 Idle.
So interrupted Mr.. Kernsu. ~yon
had that in yisw as weil as fne employ
ment OF men. You did not want 20 stop
the plant because you knew Il
holders, and goa did not want %
scatter your men because you knew il
wgufd be diffIcult 10 get s force together
again that would do economical work. I"
"Yes"
Was your salary reduced, Mr.. Pull
msn7"
..Nor The salaries of the superintendent
or f0rensn
afNo."
"Why7"
Mr.. Pullman said Il Eas not good policy
20 reduce the salaries Of hiEh officials. be
csase men Of their ealiser we're not easily
replaced. Mr. Pullman was then excuses