The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-09-05

CHICAGO, Aug. N.-George NJ Pullman
was before the labor commission for near
" three hours this afternoon. Vice-Presi-
dent Wickes, who followed his superior,
occupied two hours, and will appear again.
At the outset of his testimony Mr.. Pull
made a careful preliminary statement
Of his position toward the commission and
defining the motives which had moved the
company to establish it's manufacturing
plant and homes for workingmen as it
had. He dwelt at great length on the
motives which had actuated the company
in building homes for the workingmen at
Pullman, declaring that the town had been
made attractive that the best class OF
mechanics would prefer to live there
rather than in any other place. In an
swers to queries by Chairman Wright, Mr..
Pullman told of the contracts for work
undertaken by the company at a loss IN
order that the men might be kept at work.
He said:
Il found we were being underbid by
other companies even where we had fig
ured the work down to cost. l undertook
to make the Pullman Company's BIDS
lower than any other in order to secure 'ne
work for our men My recollection is
that the first order of that kind was for
50 cars the Long Island railroad Under
my instructions the cost OF material ana
labor figured on the cars on the basis
of the reduction in wages. When had
the matter under cOnSlueTdtloil Heie anu
in the New York office for about two
weeks and finally put in a bid for some
thing between $500 and $500 a car below
actual cost, l made up my mind that
the company would contribute that much
rather than have the men idle.
Up to the time of the strike we had lost
more than $4,000 in pursuit of this policy.
I explained this personally to the men
when they We're having their conference
with Mr. Wickes. Mr.. Heathcote said they
tpl tl,a Of +
would be a most unfortunate thing for all
of you if the wages of 1893 were restored,
because there is not more than six weeks
work in the shops now and We would be
unable to get any more on a basis of the
wages of 1893. -
Here Mr.. Herman Interrupted to know if
the compar had not promised to discharge
none of the committee that had waited up
on Mr.. Wickes and whether the promise
had been kept. Mr.. Pullman said he did
not know as TO that, but Mr. Wickes
would tell the commission about it. Mr..
Herman continued:
Were the books shown to the menu
mo; they were not shown because the
men did not apply to see them and the
strike came Friday
There We're 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
just cause for complaint. AS l under
stand it, they had begun an investigation
of the minor grievances when the strike
came"
Answering Judge Worthington Mr. Pull
man said he did not have charge of detail
work in connection with the company's
affairs, but that he was president and re-
ceived the reports of other officers. The
judge asked:
LAS to this reported declaration of yours
that you had nothing to arbitrate were
you correctly reported?'
Il have already eXnlafnp1 views
that subject. They are contained in the
printed statement submtted,'' referring to
the printed interviews published during the
progress of the strike.
Turning the subject Judge Worthington
brought out the fact that the companys
original capital stock of $1,O0 900 in 1867 had
increased to 36,Go0G00 that the company
had paid dividends of u per cent during
the first two years of its organiza ton go
per cent during the next two years and 8
per cent annually since and at the same
time had accumulated a surplus amount
Ing to $25,000,000. He also elected the state
ment that the stock of the Pullman Land
Association entirely in the possession
of the Pullman Palace Car Company, hav-
Ing been acquired gradually by the invest
ment of the car company's surplus earnings
IN the certificates of the land aSSociat ton
The original five hundred acres on which
the town stands was acquired by the car
company under legal advice and by the au-
thority of its charter which gave it the
right to acquire land to the amount needed
In the company's business operations Re-
curing to the stock of the company Mr.
Pullman said it represented actual cash
paid by the stockholders as the capital
was needed and the capital stock was in
creased for the legitimate business of the
company. There was water in it
ana none of it represented stock dividends
coming back to the question of arbitra-
ton, Mr.. Pullman said he remembered no
formal attempt to get him to arbitrate
vx-ifb fy,n H.
ingness 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 COM
nand all the work available in the coun-
try. 1t was not the amount of loss but
the principle involved that made me averse
to arbitration
"Now, Mr.. Pullman said Commissioner
Worthington, taking the whole year
Worthington, taking the whole wear
through has the Pullman Company made
or lost money!
1T has made money" was the answer.
Commissioner Worthington continued the
questions:
You have paid your regular dividends %
Eyes, sir; per cent
THAT is something like 81, 800 900 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 paws
dividends of $2,S00,00O could not afford TO
share the losses of its employees who have
worked for it long?'
THE manufacturing business is snpara 70
from the business of the sleeping car com
pany. l see no reason why I shoni,i take
the profits of the 1920 stockholders in the
Pullman Sleeping Car Company and pay
men higher rate of wages than was paid
in other parts of the country for the same
work, than was paid by other companies
for the same work. Because we have been
careful and accumulated a surplus [ do
company if the men would agree to bear
their share in a reduction Of 20 to 25 Der
cent their wages"
Judge Worthington wanted to know
wherein it was wrong to take the money
of the stockholders and pay higher waoes
when the management was ready TO take
contracts at a loss take the stockhoId
ers' money to keep the plant going. Mr.
Pullman said the execution OF contract az
loss was better for the plant than to let
it lie idle.
80" interrupted Mr. Herman. .you had
that in view well the employment Of
the men, You did not want to ston tho
plant because you knew that would ba q
loss to stockholders. and you did not want
to scatter your men because you knew If
would be difficult to get a force together
again that would do economical work -
yes"
Was your salary reduced Mr. pm.
man?' ~
He said his salary had not been rednoo,
Nor the salaries of superintendent ana
foreman?' anu
No"