Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-08-28
Mr.. PULLMAN ON THE STAND
Testifes Regarding the Strike at His
Works.
Why He Was willing to Make Cars
at q LOss-His Views ms to
Arbitration.

| George NJ Pullman was before the labor
| commission at Chicago for nearly three
| hours yesterday afternoon. Vice President
| Wiclkes, who followed his superior, occupied
two hours, and will appear again.
| At the outset Of his testimony, Mr.. Pull
n an made a careful preliminary statement
of his position toward the commission and
defining the motives which had moved the
| company to establish its manufacturing
| plant and the homes of workmen as ii had.
In answer to queries by Chairman Wright.
Mr. Pullman told of the contracts for work
! l ndertaken by the company at loss, In
order that the men might be kept at work.
He said 81 found we We're being under bid
| by other companies / undertook to make
| the Pullman company's bid lower than any
other in order to secure the work for our
men. My recollection is that the first order
of that kind was for ffty-five ears on the
Long Island railroad. Under my instruc-
tions the cost of material and labor was
| figured on the cars the basis Of the re-
| dCction of wages.
| Then i had the matter under conside-a-
! ton. and in New York for about two weeks,
and finally put in a bid for something be-
| tween $500 and 500 a car below actual
| cost. / made up my mind that the company
| would contribute that much rather than TO
! have the men idle. Up to the time of the
| strike, we had lost more than $4,000 in pur-
| suit of this policy. l explained this person.
| ally to the men when they were having
their conference with Mr.. Wickes Mr..
Heathcote said they wanted the wages of
| 1898. / said Ii would be most unfortunate
! thing for all of you II the wages of 1923
| were restored because there is not more
than six weeks work in the shop now. and
| we would be unable TO get more on a basis
| of be wages of 1893.
Here Mr.. Herman interrupted to know If
| the company had not promised to discharge
none of the Committee that waited on
| Wickes and whether the promise had been
kept.
NJ. Pullman said he did not know, but
| Mr.. Wickes would tell.
Mr.. Herman thea asked: Were the books
| shown to 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?'
There were: but Mr.. Wickes and Mr..
Brown had promised the men to take them
| up and remedy them wherever there was
just cause for complaint"
| Judge Worthington asked: las to this re-
| ported declaration of yours that you had
nothing to arbitrate. were you correctly re-
| ported?"
II have already explained my views on
| that subj ect."
Turning from the subject. Judge Worth
| ington brought out the fact that the COM
| pany's original stock of 81, 100000 in 1861
| had increased to $4,000, 600; that the COM
rany had paid dividends of twelve per cont
during the first two years of its organiza-
ton; nine and one-half per cent during the
next two years. and eight per cent annua lily
since. and at the same time had accunulat-
ed surplus amounting to s25Oo0.
He also ELECTED the statement that the
| stock of the Pullman Land Association was
entirely in the possession of the Pullman
Palace Car Company, having been acquired
gradually by the investment of the car
c"mpanys surplus earnings in the Certih-
Gates of land association. The original s00
acres or which the town stands was &C
quired by the car company on legal advice
end by the authority Of its charter which
gave IL right TO acquire land to the amount
needed I'm the business operations of the
company.
Recurring to the stock of the company,
Sir Pullman said Il represented actual cash
PAID by The stockholders, the capital was
needed, and the capital stock was increased
for the legitimate business of the company.
There was no water in 1t, and none of it
! represented dividends.
Coming back to the question of arbitra-
tion, MIR. Pullman said he remembered no
formal attempt to get him to arbitrate with
the men. He had declared his willingness
to arbitrate.
The only question with me-" he said
was whether the shops at Pullman should
be closed. or whether we should put prices
so low as TO command all the work avail
able in the country. 1t was rot the amount
of loss, but the principle involved that made
me adverse to arbitration"
Now. Mr.. Pullman" said Commissioner
Worthington. taking the whole year
through has the Pullman company made
or lost money!"
1T has made money" was the answer
. Your have paid your regular dividends?"
Yes sir. per cent.
THAT is something like s.. $4,000 you
have paid out in dividends for the year?'
Yes, but that includes the latter part of
the worlds fair season, which was ex-
ceptional"
Let me ask you. Mr. Pullman. whether
you do not think a company that pays
dividends of S2,Sn,0W could not afford to
share the losses of its employees, who have
worked for 1t so long?'
THE manufacturing business Is separate
from the business of the sleeping car COM
pany. / see no reason why / should take
the profits of the 400 stock holders in the
Pullman Sleeping Car Company and pay
men II higher rate of wages than was paid
In other parts of the country for the same
work. or than was paid by other companies
for the same work. Because We have been
careful and accumulated a surplus do not
see that II Is reason We should take the
surplus now and pay 1t out for exception
ally high wages"
Has the Pullman company during the
years of its prosperity ever advanced the
wages OF its employees Voluntarily
Il do not know as to that 1t has always
sought to pay fair wages, and the fact that
we have never had but one strike is pretty
good evidence that the men have been salts
fed
What do You that is Objectionable in
submitting a difference like this to arbi-
tration?'
There are some matters that are proper
subjects for arbitration but cannot arbi-
trate on a question where l know the facts
to be thus and SO. The question as to
whether our shops should continue to run
at loss is thing that could not be ar
bitrated."
"Why was 1t impossible?"
Because 1t violates the principle that n
nan has a right to manage his own bust
! ness"
suppose that arbitrator were to saw to
you. We see you are losing money. but these
men have been with YOU a long while; YOU
can AFFORD to share their losses; we think
you should. at least, pay them a living
wage, what would you say to that?"
| nv point at the time was to work with
the men and secure the disbursement of the
large sums involved in the contracts, and
lose money for the company IL the men
would agree to bear their share in a re-
ductlon of ~ to - per cent in their wages -
Judge Worthington wanted to know
| wherein II was wrong to take the money of
the stockholders and pay higher wages
when the management was ready TO take
contracts at loss. or take the stock