PULLMAN'S Palace Car Company is in the market at all times to obtain all possible contracts to build cars. Its relations with railroads, its large capital and surplus, its complete and well-located plant and efficient management enable it at all times to meet all competitors on at least equal terms...
The depression of 1893 naturally affected the business at once... Matters grew worse until, in the fall of 1893, the company closed its Detroit shops, employing about 800, and concentrated its contract and repair business at Pullman. The company and the railroads had a surplus of cars...hence pending orders were canceled and car building stopped, except as occasional straggling contracts were obtained at prices which averaged less than shop cost....
The cut in wages during this period [September1893 - May 1894] averaged about 25 per cent....
During all of this reduction...none of the salaries of officers, managers, or superintendents were reduced....
In its statements to the public...the company represents that its object[ive]...was to continue operations for the benefit of its workmen and of trades people in and about Pullman and to save the public from the annoyance of interrupted travel. The commission thinks that the evidence shows that it sought to keep running mainly for its own benefit as a manufacturer, that its plant might not rust, that its competitors might not invade its territory, that it might keep its cars in repair, that it might be ready for resumption when business revived with a live plant and competent help, and that its revenue from its tenements might continue.
If we exclude the aesthetic and sanitary features at Pullman, the rents there are from 20 to 25 per cent higher than rents in Chicago or surrounding towns for similar accommodations. The aesthetic features are admired by visitors, but have little money value to employees, especially when they lack bread...
The company's claim that the workmen need not [rent] its tenements and can live elsewhere if they choose is not entirely tenable. The fear of losing work keeps them in Pullman as long as there are tenements unoccupied, because the company is supposed, as a matter of business, to give a preference to its tenants when work is slack.... While reducing wages, the company made no reduction in rents. Its position is that the two matters are distinct, and that none of the reasons urged as justifying wage reduction as an employer can be considered by the company as a landlord...
On the evening of May 10 the local unions met and voted to strike at once... As soon as the strike was declared the company laid off its 600 employees who did not join the strike, and kept its shops closed until August 2. During this period the Civic Federation of Chicago, composed of eminent citizens in all kinds of business and from all grades of respectable society, called upon the company twice to urge conciliation and arbitration. The company reiterated the statement of its position, and maintained that there was nothing to arbitrate; that the questions at issue were matters of fact and not proper subjects of arbitration. The Civic Federation suggested that competition should be regarded in rents as well as in wages. The company denied this. Wages and rents were to it separate matters; the principles applicable to one had no relation to the other. Later it gave the same answer to a committee of its employees. Upon June 15 and 22 it declined to receive any communication from committees of the American Railway Union, one proposition being that the company select two arbitrators, the court two...
© Illinois State Museum 31-Dec-96