The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1894-11-16
ILLEGAL COMBINATION
By Railroad General
Managers.
Finding of the Strike
Commission.
Railroad Companies Have No More
Right to Organize than Their
Employees Have.

CHICAGO, Nov. 1.-the United
States government report on the great
railway strike in connection with the
Pullman trouble was made public
today.
The report, which is signed by the
federal labor commissioner, Carroll
D. Wright and his fellow investiga-
tors, John D. Herman, of New York,
and Nicholas B. Worthington, of Ill
inois, is addressed to President
Cleveland and abounds in passages
which will attract wide attention,
particularly that portion referring to
the now famous General Managers
association, the orgaization of high
railroad officials that eEcompassed
the memorable defeat of the American
Railway union.
The report says the capitalization Of
the twentyfOur railroads directly rep
resented in the General Managers as
sociation was $2,1OS, ,552,617. The
number of employees was 221,O97.
The commission continues: "This
voluntary 'lnilic'I porated association
was formed in 1886. In it's constitu-
ton the object Of the association is
stated to be the consideration of the
problems of management arising
from the operation of railroads termi-
mating or centering in Chicago.
''It further provides that all the
funds needed shall be raised by as
sessments divided equally among the
members
"There are no limitations as to con-
Sidering of problems or funds except
the will Of the managers and the re-
sources of the railroad corporations.
''The commission questions whether
any legal duty, statutory or otherwise,
can be found to justify some of the
features of the association which have
come to light ir this investigation.
If we regard it's practical workings
rather than it's professions as eX-
pressed in it's constitution, the Gen
eral Managers association has no
more standing in law than the other
trunk line pool. 1t cannot incorporate
because railroad charters do not au-
thorize roads to form corporations or
associations to fix rates for services
and wages, nor to force their ac-
ceptance nor to battle with strikers.
1t is an usurpation of power not
granted. If such an association has,
necessarily from a business or eco
nomic standpoint, the right to form and
maintain it, it must come from the
state that granted it's charter. In
theory, the corporations are limited
to the powers granted either directly
or by clear inference. We do not
think the power has been granted in
either way in this case. The associa-
ton is an illustration of a persistent
and shrewdly disguised plan of the
corporations to over-reach their limita-
tions and to usurp Indirectly powers
and rights not contemplated in their
charters and not obtainable from the
people or their legislatures. An eX-
tention of this association as above
suggested and the proposed legaiiza-
ton of pooling would result in an as
sumption of power by capital danger
Gus to the people and their liberht S,
as well as TO their employees and
rights.
"a question would then certainly
arise as to which shall control, the
government or the railroads, and the
result would inevitably be govern
ment ownership, unless, ready for
that result and all it implies, the gov
ernment must restrain corporations
within the law and prevent them from
forming unlawful Or dangerous cOmbi-
nations. At least, so long as rail
roads are thus permitted to combine
to fix wages ard for their joint protec-
ton, it would be rank injustice to
deny the right of all labor upon rail
roads to unite for similar purposes"
Taking up the subject of the Pull
man Palace Car Co., the report says:
This is a corporation organized in
1867 with a capital of $1,OOO,OOO. 1t
=.
capital is $36,OO0,OOO. Its prosperity
has enabled the company for over
twenty years to pay 2 per cent quar-
| terly dividends and in addition to lay
up surplus of nearly $25,0OO,OOO OF
undivided profits"
THE PULLMAxs1NIQUITY.
Speaking of the town of Pullman
of which the report says the company
| is the owner and landlord, the com
| mission says:
'The men at Pullman claim that the
company during 1898 and 1894 set the
| pay through experts SO that with theil
| forced loss of time, an average mar
could earn little more than the rem
of his house, owned by the company
The company claims that it simply re
adjusted the prices of piece work tt
suit the necessities Of the times. Dur
ing all Of this reduction and its at
| tendant suffering none of the salarie.
of officers, managers or superintend
ents were reduced. Reductions il
| those would not have been so severely
felt and would have shown good faith
If we include the aesthetic and sani
| tary features of Pullman, rents there
are from 20 to 25 per cent higher thai
rents in Chicago or surrounding
towns" AS to the great railwa!
strike proper, the report says:
81. is seriously questioned and will
much force whether the courts hav'
Jurisdiction to enjoin citizens from
rersuading each other in industria
or other matters of common interest.
''The policy" the report says, 80
both the Pullman company and th'
railroad managers association in ref
erence to applications to arbitrate
closed the doors to all attempts at con
ciliation and settlement of differences
The commission is impressed with tn
belief, by the evidence and by attend
ant circumstances as disclosed, tina