The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-08-28
Pullman Himself Testiffes Be-
fore Strike Commission.
He Admits That His Salary Was
Not Reduced.
PROFITS NOT CUT.
Didn't See Why They Should be
Used to Pay Wages.


afternoon He dwe1t at great length
on the motives which actuated the
company in building homes for the
wOrkingmen at Pullman, declaring
that the town had been made SO that
the best class of mechanics would pre-
fer to 1--we there than in any other
place
In reply to queries by Chairman
Wright, Mr.. Pullman told of the con-
tracts 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 figured the work down to cost.
I undertook to make the Pullman
company's bids in order to secure the
work for our men. Ny recollection
81 that the first order Of the kind was
for fifty five cars on the Long Island
railway Under my instructions the
cost Of material and labor was Rgured
on the basis Of a reduction in wages
Then / had the matter under con-
sideration here and New York for
about two weeks and finally put in a
bid for some thing between $500 and
B400 a car below actual cost 1 made
up my mind that the company would
contribute that much rather than
have the men idle. Up to the time of
600 in pursuit Of this policy. i ex-
planned this personally to the men
when they were having their
conference with Mr.. Wickes. Mr..
Heathcote said they wanted the
wages of 1898. said. 1T would be a
most unfortunate thing for all Of you
if the wages of 1898 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 the wages of 1898"
Here Mr.. Herman interrupted to
know If the company had not pro
posed to discharge some of the com
mittee that waited on Wiclxes and
whether the promise had been kept.
Mr.. Pullman said he did not know but
Mr.. Wickes would tell Mr.. Herman
then asked: Were the books shown
TO the menu"
mo. 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.. Wiclxes and
Mr.. Brown had promised the men to
take them up and remedy them wher-
ever there was just cause for com
plant"
Judge Worthington asked: Gas to
this reported dec aration of yours
that you had nothing to arbitrate,
were you correctly repOrted?"
Il have already explained my views
on that subject"
Judge WOrthington then brought
out the fact that the company's
original capital stock of $1,000, 900, in
1867, had increased to $50, 900, 600; that
the company had paid dividends of II
per cent during the first two years
of its organization; % per cent dur
ing the next two years, and s per cent
annually since, and at the same time
s1r,f-r
to S25, 600, OO0-
Referring to the stock Of the com
pany Mr.. Pullman said it represe nted
actual cash paid by the stockholders
as the capital was needed and the
capital stock was increased for the
legitimate business of the company.
There was no water IN it and none of
il represented dividends
Coming back to the question OF
arbitration Mr.. Pullman said he re-
membered no formal attempt to get
him to arbitrate with the men. He
had declared his willingness to arbi-
trate.
"Now, Mr.. Pullman" said Commits
sioner WorthingtOn, taking the
whole year through, has the Pullman
company made or lost money!"
1T has made money" was the
answer.
You have paid your regular divi-
dends2"
Hes, sir 8 per cent"
THAT is something like So, 500, 600
You have paid out in dividends for the
yes, but that includes the latter
part of the worlds fair which was ex-
ceptionAl"
s'Let me ask you. Mr.. Pullman,
whe Their you do not think a company
that pays dividends Of 81, 500. 900 could
not afford to share the losses of its
employees who have worked for il SO
long?"
The manufacturing business is
separate from the business Of the
sleeping car company. see no
reason why / should take the profits
Of the 4, 200 stockholders in the Pull
man Sleeping Car company and pay
men higher rate of wages than was
paid il 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 I do not see
that it is a reason why we should take
the surplus now and pay it out for ex-
ceptionally high wages"
What do you see that is objectiona-
bic in submitting a difference like this
to arbitration.
There are some matters that are
proper subjects for arbitration, but I
cannot arbltrate on a question where
/ know the facts to be thus and SO.
The question as to whether our shops
should continue to run at a loss is a
thing that could not be arbitrated.''
why was it impossible2"
Because IL violates the principle
that a man has right to manage his
own business"
Judge Worthington wanted TO know
wherein is was wrong to take the