Democratic Sentinel, Volume 18, Number 35, Rensselaer, Jasper County, 14 September 1894 — PULLMAN A WITNESS. [ARTICLE+ILLUSTRATION]

PULLMAN A WITNESS.

PALACE CAR MAGNATE GIVES HIS TESTIMONY. He Give* the Strike Commission Information Concerning the Pullman Work*— Wickes Declare* that the Company Loet •50,000 Rather than Close the Shope. Explains Hl* Position. George M. Pullman was called before the Labor Commission in Chicago, and testified for three hours. He spoke of the motives which had caused the camrany to build its o’ant in the way it had done and to provide homes for its workmen. He said that the ob ect in bui ding Pullman wai the establishment of a great manufacturing business on the most substantial basis possible. Because he recognized that the working peoole were the most important element which enters into the successful eperation of any enterprise he decided to

build in close proximity to the shops homes for the workingmen of such character and surrouneungs as would prove so attractive that the best class □f mechanics would seek that place for employment in preference to others. Accordingly (Mr. Pullman continued), the present location of Pullman was selected. That region of the country was then very sparsely populated, a very few hundred people, mostly farmers, living within a ramus of perhaps a mile and a half of the she selected, where there are now living some 25.01)0 people. It was not the Intention to sell to workingmen homes In Pullman, but to so limit the are t of the town that they could buy homes at convenient distances from the works If they chose to do so. If auy lots had been sold In Pullman, it would have permitted the Introduction of the baleful elements which It was the chief purpose to exclude from the Immediate neighborhood of the shops and from the homes to be erected about them. The plan was to provide homes in the first place for all people who should desire to work In the shops, at reasonable rentals, with the expectation that, as they became able and should desire to do so, they could purchase lots and erect homes for themselves within convenient distances, or avail themselves of the opp triunity to rent homes from other people who should build In that vicinity. As a matter of fact, at the time of the strike 563 of the shop employes owned their homes, and 461 of that number are now employed in the shops; 560 others at the time of the strike lived outside, and in addition an estimated number of from 200 to 800 others employed at Pullman were owners of their homes. The relations of those employed in the shops are, as to tho shops, the relations of employes to employer, and as to those and others living in the homes, the relations are simply und only those of tenant to landlord, 'the company has not now. and never has had. anyinte. est whatever in the business of any of the stores or shops In the town. They are rented through and managed by outside parties, free from any control by the company. The people living in the town are entirely free to buy where they choose, anti, as a matter of fact. ’he large disbursement in wares at Pullman, amounting to an average of $2,360,000 a year, from September. 188). to July. 1894, has created a great competition for the trade of Pullman in the surrounding towns, as well as in Chicago, the natural result of which would be to bring the prices of all merchandise down to a minimum

The basis upon which rents were fixed originally in 1881. said Mr. Pullman, was 6 percent, but the actual operation! had never shown a net return of 6 per cent. For several years lhe investment returned a net revenue of iy* per cent, but during tho last two years had netted a revenue of only 3.82 per cent. In answer to questions by the Commissioners the witness 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 that up to the time of the strike the company had lost over $50,000 in pursuit of that policy. Mr. Pullman's further testimony reviewed h's utterances In pamphlet form and newspaper interviews which have been made public heretofore Wickes Testifies. Second Vice President Thomas H. Wicket, of tbe Pullman Company, on being called to the stand, said that tbe contracts taken

at a loss to the company had aggregated $1,400,000. O.i tuese contracts the company lost 152,000. The wagepaid to workmen had deci eased 160,000. Mr. WiCoes admi ted that possibly it would have been better for the company to sustain the loss of $60,00) plus the $52,000 than allow the st: ike t.i occur, hut he did not think it would be a very good .policy. The Pullman

company iu pi esent 2.600 cars. Includins>- sleeping. dinln? and chair cars. About 400 of these are lying idle, and are side-tracked most of the time. These cars wdre carried on thi books ot the company as an Hem of the surplus of $25.,000,010. For this reason that surplus was In part fictitious. Witness said the back rent now owing the company “amounted to about SIOO,OOO Almost no effort lias been made to collect any ot tills since the strike. No eviction list has been prepared and no evictions have been ordered. In Mr. Wickes’ opinion, the fact that rents in settlements adjacent to Pullman had dropped from 12 to 15 per cent, was no reason why the rents in-Pullman should be lowered.

GEO. M. PULLMAN.

THOMAS H. WICKES.