The morning call., 1894-08-28
WORK DONE AT HEAVY LOSS
All This Was to Give Employees
Steady Labor.
FIGURED ON REDUCED WAGES
But Notwithstanding His "Generos-
ity' the Company Accumu-
lated Millions Annually.

CHICAGO. Aug. N.-George Nj. Pullman
was before the strike commission for
nearly three hours this afternoon. Vice
President Wickes occupied two hours and
will appear again. At the outset of his
testimony Mr.. Pullman 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
homes for workingmen as it had.
He dwelt at great length on the motives
which actuated the company in building
homes for the wOrkmen at Pullman, de-
claring that tie town had been made so
that the best class of mechanics would
prefer to live there rather than any other
place. In reply to questions by Chairman
Wright Pullman told of the contracts for
work undertaken by the company at loss
in order that the men might be kept at
work. He said:
"1found we were being underbidden by
other companies even where we had
figured the work down to cost. | under
took to make the Pullman Company's bids
in order to secure the work for our men.
My recollection is that the first order of
that kind was for fifiy-fve cars on the
Long Island Railroad. Under my instruc-
tiOns the cost of material and labor was
figured on the basis of a reduction in
wages. Then l had the matter under con-
sideration here and New York for about
two weeks. and finally put in a bid for
something between $500 and $500 a car be-
low 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 pursuing this policy. l explained
this personally TO the men when they
were having their conference with Mr.
WIckes. Mr.. Heathcote said they wanted
the wages of 1898 l said it would be
most unfortunate thing for all of US
should the wages of 1893 be restored. be-
cause there is not more than six weeks
work in the shop now and We wouid be un-
able tn get more on a basis of the wages
of 1893"
Here Mr.. Herman asked. 'Were the
books shown the meb?"
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.. Wiekes and MIR.
Brown had promised the men TO take them
up and remedy them wherever there was
just cause for complaint"
Turning the subject, Judge Worthington
brought out the fact that the company's
original capital stock of 1000. 900 in 1867
had increased to $50, 600. 600; that the COM
pany had paid dividends of u per eentdur-
ing the first two years of its organization,
9@ per cent during The next two years,
and per cent annually since, and at the
same time had accumulated a surplus
amounting to S25, 100000
Referring 10 the stock of the company
Pullman said it represented the actual
cash paid by the stockholders as the capt.
tai was needed and the capital stock was
increased for the legitimate business of
the company. There was no water in it
and none of it represented dividends.
Now. Mr.. Pullman" said Commits
siOner Worthington, 'takiug the whole
year through, has the Pullman Company
made or lost money!"
'It has made money" was the answer.
lyon have paid your regular divi-
dends?"
''Yes, sir; per cent"
THAT is something like S2,S00. 900 you
have paid out in dividends last year?"
1cSs Dut tuat IbCAuuCo tuo ldlbcE UATt
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 S2S0O.OOO could afford to
share the losses of its employees who have
worked for it so long?"
"The manufacturing business is separate
from the business of the sleeping car COM
pany. I know no reason why l should
take the profits of 1900 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, or than was paid by other COM
panies for the same work"
Has the Pullman Company during the
years of its prosperity ever advanced the
wages of its employees voluntarily ?"
II do not know as to that 1t has always
sought TO pay fair wages"
'What do you see that is Objectionable
in submitting difference like this to arbi-
tration?"
There are some matters that are proper
subjects for arbitration. but cannot arbi-
trate On question where [ know the facts
10 be thus. The question as to whether
our shops should continue to run at loss
is thing that could not be arbitrated."
"Why was it impossble?"
Because it violates the principle that a
man has right to manage his own busi-
ness"
Suppose the arbitrators were to say to
you. We see that you are losing, but these
men have been with you long while; you
can afford to share their losses; we think
you should pay at least living wages what
would you say to that?"
MY point at the time was to work with
the men and secure the dsburseme nts of
the large sums involved in the contracts
and lose money for the company il the
men would agree 10 bear their share in
reduction of 20 to % per cent in their
wages"
Judge Worthington wanted TO know
wherein it 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
baIdarss mnnay tn kean tha Dlant yoino