The Pullman Strike and Boycott (June, 1894)
THE PULLMAN STRIKE AND BOYCOTT (June, 1894)
A graphic example of the often-tumultuous relationship between American capitalist enterprise and organized labor, the Pullman Strike began after the economic panic of 1893, when the Pullman Palace Car Company of Chicago, Illinois, cut workers' wages without also lowering food and housing costs in its company town. When union representatives were fired for protesting the company's decision, the head of the American Railway Union, former Indiana state legislator Eugene V. Debs, ordered a general strike in the servicing of Pullman cars. Some 50,000 workers heeded his call, and soon rail traffic throughout much of the country virtually ceased. Desperate, railroad owners turned to United States Attorney General Richard Olney, director of the Burlington and Santa Fe lines, who quickly issued a blanket injunction declaring the strike illegal. Two days later, on July 4th, President Grover Cleveland ordered Federal troops to Chicago. During the resulting violence, several strikers were killed. Riots erupted as far away as Oakland, California, but ultimately the government's actions were successful. With trains moving again under armed guard, the boycott broke down, and its leaders, Eugene Debs and three others, were jailed for disobeying the injunction.
Statement of the Strikers
Mr. President and Brothers of the American Railway Union: We struck at Pullman because we were without hope. We joined the American Railway Union because it gave us a glimmer of hope. Twenty thousand souls, men, women, and little ones, have their eyes turned toward this convention today, straining eagerly through dark despondency for a glimmer of the heaven-sent message you alone can give us on this earth.
In stating to this body our grievances, it is hard to tell where to begin. You all must know that the proximate cause of our strike was the discharge of two members of our Grievance Committee the day after George M. Pullman, himself, and Thomas H. Wickes, his second vice-president, had guaranteed them absolute immunity. The more remote causes are still imminent. Five reductions in wages, in work, and in conditions of employment swept through the shops at Pullman between May and December 1893. The last was the most severe, amounting to nearly 40 percent, and our rents had not fallen. We owed Pullman $70,000 when we struck May 11. We owe him twice as much today. He does not evict us for two reasons: one, the force of popular sentiment and public opinion; the other, because he hopes to starve us out, to break through in the back of the American Railway Union, and to deduct from our miserable wages when we are forced to return to him the last dollar we owe him for the occupancy of his houses.
Rents all over the city in every quarter of its vast extent have fallen, in some cases to one-half. Residences, compared with which ours are hovels, can be had a few miles away at the prices we have been contributing to make a millionaire a billionaire. What we pay $15 for in Pullman is leased for $8 in Roseland; and remember that just as no man or woman of our 4,000 toilers has ever felt the friendly pressure of George M. Pullman's hand, so no man or woman of us all has ever owned or can ever hope to own one inch of George M. Pullman's land. Why, even the very streets are his. His ground has never been platted of record, and today he may debar any man who has acquiring rights as his tenant from walking in his highways. And those streets; do you know what he has named them? He says after the four great inventors in methods of transportation. And do you know what their names are? Why, Fulton, Stephenson, Watt, and Pullman.
Water which Pullman buys from the city at 8 cents a thousand gallons he retails to us at 500 percent advance and claims he is losing $400 a month on it. Gas which sells at 75 cents per thousand feet in Hyde Park, just north of us, he sells for $2.25. When we went to tell him our grievances, he said we were all his "children."
Pullman, both the man and the town, is an ulcer on the body politic. He owns the houses, the schoolhouses, and churches of God in the town he gave his once humble name. The revenue he derives from these, the wages he pays out with one hand—the Pullman Palace Car Company—he takes back with the other—the Pullman Land Association. He is able by this to bid under any contract car shop in this country. His competitors in business, to meet this, must reduce the wages of their men. This gives him the excuse to reduce ours to conform to the market. His business rivals must in turn scale down; so must he. And thus the merry war—the dance of skeletons bathed in human tears—goes on; and it will go on, brothers, forever unless you, the American Railway Union, stop it; end it; crush it out.
Our town is beautiful. In all these thirteen years no word of scandal has arisen against one of our women, young or old. What city of 20,000 persons can show the like? Since our strike, the arrests, which used to average four or five a day, had dwindled down to less than one a week. We are peaceable; we are orderly; and but for the kindly beneficence of kindly hearted people in and about Chicago we would be starving. We are not desperate today because we are not hungry, and our wives and children are not begging for bread. But George M. Pullman, who ran away from the public opinion that has arisen against him, like the genii from the bottle in the Arabian Nights, is not feeding us. He is patiently seated beside his millions waiting for what? To see us starve.
We have grown better acquainted with the American Railway Union these convention days, and as we have heard sentiments of the noblest philanthropy fall from the lips of our general officers—your officers and ours—we have learned that there is a balm for all our troubles, and that the box containing it is in your hands today, only awaiting opening to disseminate its sweet savor of hope.
George M. Pullman, you know, has cut our wages from 30 to 70 percent. George M. Pullman has caused to be paid in the last year the regular quarterly dividend of 2 percent on his stock and an extra slice of 1 1/2 percent, making 9 1/2 percent on $30 million of capital. George M. Pullman, you know, took three contracts on which he lost less than $5,000. Because he loved us? No. Because it was cheaper to lose a little money in his freight car and his coach shops than to let his workingmen go, but that petty loss, more than made up by us from money we needed to clothe our wives and little ones, was his excuse for effecting a gigantic reduction of wages in every department of his great works, of cutting men and boys and girls with equal zeal, including everyone in the repair shops of the Pullman Palace cars on which such preposterous profits have been made.
George M. Pullman will tell you, if you could go to him today, that he was paying better wages than any other car shops in the land. George M. Pullman might better save his breath. We have worked too often beside graduates from other establishments not to know that, work for work and skill for skill, no one can compete with us at wages paid for work well done. If his wage list showed a trifle higher, our efficiency still left us heavily the loser. He does not figure on our brain and muscle. He makes his paltry computation in dollars and cents.
We will make you proud of us, brothers, if you will give us the hand we need. Help us make our country better and more wholesome. Pull us out of our slough of despond. Teach arrogant grinders of the faces of the poor that there is still a God in Israel, and if need be a Jehovah—a God of battles. Do this, and on that last great day you will stand, as we hope to stand, before the great white throne "like gentlemen unafraid."
Statement of the Company
In view of the proposed attempt of the American Railway Union to interfere with public travel on railway lines using Pullman cars, in consequence of a controversy as to the wages of employees of the manufacturing department of the company, the Pullman Company requests the publication of the following statement of the facts, in face of which the attempt is to be made.
In the first week of May last, there were employed in the car manufacturing department at Pullman, Illinois, about 3,100 persons. On May 7, a committee of the workmen had an interview by arrangement with Mr. Wickes, vice-president, at which the principal subject of discussion related to wages, but minor grievances as to shop administration were also presented, and it was agreed that another meeting should be held on the 9th of May, at which all the grievances should be presented in writing. The second meeting was held. As to the complaints on all matters except wages, it was arranged that a formal and thorough investigation should be made by Mr. Wickes, to be begun the next day, and full redress was assured to the committee as to all complaints proved to be well founded.
The absolute necessity of the last reduction in wages, under the existing condition of the business of car manufacturing, had been explained to the committee, and they were insisting upon a restoration of the wage scale of the first half of 1893, when Mr. Pullman entered the room and addressed the committee, speaking in substance as follows:
"At the commencement of the very serious depression last year, we were employing at Pullman 5,816 men and paying out in wages there $305,000 a month. Negotiations with intending purchasers of railway equipment that were then pending for new work were stopped by them, orders already given by others were canceled, and we were obliged to lay off, as you are aware, a large number of men in every department; so that by November 1, 1893, there were only about 2,000 men in all departments, or about one-third of the normal number. I realized the necessity for the most strenuous exertions to procure work immediately, without which there would be great embarrassment, not only to the employees and their families at Pullman but also to those living in the immediate vicinity, including between 700 and 800 employees who had purchased homes and to whom employment was actually necessary to enable them to complete their payments.
"I canvassed the matter thoroughly with the manager of the works and instructed him to cause the men to be assured that the company would do everything in its power to meet the competition which was sure to occur because of the great number of large car manufacturers that were in the same condition and that were exceedingly anxious to keep their men employed. I knew that if there was any work to be let, bids for it would be made upon a much lower basis than ever before.
"The result of this discussion was a revision in piece-work prices, which, in the absence of any information to the contrary, I supposed to be acceptable to the men under the circumstances. Under these conditions, and with lower prices upon all materials, I personally under-took the work of the lettings of cars, and, by making lower bids than other manufacturers, I secured work enough to gradually increase our force from 2,000 up to about 4,200, the number employed, according to the April payrolls, in all capacities at Pullman.
"This result has not been accomplished merely by reduction in wages, but the company has borne its full share by eliminating from its estimates the use of capital and machinery, and in many cases going even below that and taking work at considerable loss, notably the 55 Long Island cars, which was the first large order of passenger cars let since the great depression and which was sought for by practically all the leading car builders in the country. My anxiety to secure that order so as to put as many men at work as possible was such that I put in a bid at more than $300 per car less than the actual cost to the company. The 300 stock cars built for the Northwestern Road and the 250 refrigerator cars now under construction for the same company will result in a loss of at least $12 per car, and the 25 cars just built for the Lake Street elevated road show a loss of $79 per car. I mention these particulars so that you may understand what the company has done for the mutual interests and to secure for the people at Pullman and vicinity the benefit of the disbursement of the large sums of money involved in these and similar contracts, which can be kept up only by the procurement of new orders for cars; for, as you know, about three-fourths of the men must depend upon contract work for employment.
"I can only assure you that if this company now restores the wages of the first half of 1893, as you have asked, it would be a most unfortunate thing for the men because there is less than sixty days of contract work in sight in the shops under all orders, and there is absolutely no possibility, in the present condition of affairs throughout the country, of getting any more orders for work at prices measured by the wages of May 1893. Under such a scale the works would necessarily close down and the great majority of the employees be put in idleness, a contingency I am using my best efforts to avoid.
"To further benefit the people of Pullman and vicinity, we concentrated all the work that we could command at that point by closing our Detroit shops entirely and laying off a large number of men at our other repair shops, and gave to Pullman the repair of all cars that could be taken care of there.
"Also, for the further benefit of our people at Pullman, we have carried on a large system of internal improvements, having expended nearly $160,000 since August last in work which, under normal conditions, would have been spread over one or two years. The policy would be to continue this class of work to as great an extent as possible, provided, of course, the Pullman men show a proper appreciation of the situation by doing whatever they can to help themselves to tide over the hard times which are so seriously felt in every part of the country.
"There has been some complaint made about rents. As to this I would say that the return to this company on the capital invested in the Pullman tenements for the last year and the year before was 3.82 percent. There are hundreds of tenements in Pullman renting from $6 to $9 per month, and the tenants are relieved from the usual expenses of exterior cleaning and the removal of garbage, which is done by the company. The average amount collected from employees for gas consumed is about $2 a month. To ascertain the exact amount of water used by tenants, separate from the amount consumed by the works, we have recently put in meters, by which we find that the water consumed by the tenants, if paid for at the rate of 4 cents per 1,000 gallons, in accordance with our original contract with the village of Hyde Park, would amount to about $1,000 a month, almost exactly the rate which we have charged the tenants, this company assuming the expense of pumping. At the increased rate the city is now charging us for water, we are paying about $1,500 a month in excess of the amount charged to the tenants. The present payrolls at Pullman amount to about $7,000 a day."
On the question of rents, while, as stated above, they make a manifestly inadequate return upon the investment, so that it is clear they are not, in fact, at an arbitrarily high figure, it may be added that it would not be possible in a business sense so to deal with them.
The renting of the dwellings and the employment of workmen at Pullman are in no way tied together. The dwellings and apartments are offered for rent in competition with those of the immediately adjacent towns of Kensington, Roseland, and Gano. They are let alike to Pullman employees and to very many others in no way connected with the company, and, on the other hand, many Pullman employees rent or own their homes in those adjacent towns. The average rental at Pullman is at the rate of $3 per room per month. There are 1,200 tenements, of varying numbers of rooms, the average monthly rental of which is $10; of these there are 600 the average monthly rental of which is $8. In very many cases, men with families pay a rent seemingly large for a workman, but which is in fact reduced in part, and often wholly repaid, by the subrents paid by single men as lodgers.
On May 10, the day after the second conference above mentioned, work went on at Pullman as usual, and the only incident of note was the beginning by Mr. Wickes, assisted by Mr. Brown, the general manager of the company, of the promised formal investigation at Pullman of the shop complaints.
A large meeting of employees had been held the night before at Kensington, which, as was understood by the company, accepted the necessity of the situation preventing an increase of wages; but at a meeting of the local committee held during the night of May 10, a strike was decided upon, and, accordingly, the next day about 2,500 of the employees quit their work, leaving about 600 at work, of whom very few were skilled workmen. As it was found impracticable to keep the shops in operation with a force thus diminished and disorganized, the next day those remaining were necessarily laid off, and no work has since been done in the shops.
The payrolls at the time amounted to about $7,000 a day and were reduced $5,500 by the strike, so that during the period of a little more than six weeks which has elapsed the employees who quit their work have deprived themselves and their comrades of earnings of more than $200,000.
It is an element of the whole situation worthy of note that at the beginning of the strike the Pullman Savings Bank had on deposit in its savings department $488,000, of which about nine-tenths belonged to employees at Pullman, and that this amount has since been reduced by the sum of $32,000.
While deploring the possibility of annoyance to the public by the threats of irresponsible organizations to interrupt the orderly ministration to the comfort of travelers on railway lines, aggregating 125,000 miles in length, the Pullman Company can do no more than explain its situation to the public.
It has two separate branches of business, essentially distinct from each other. One is to provide sleeping cars, which are delivered by it under contract to the various railway companies, to be run by them on their lines as a part of their trains for the carriage of their passengers, over the movements of which this company has no control. Contract arrangements provide for the making of all repairs to such cars by the railway companies using them—as to certain repairs absolutely and as to all others upon the request of the Pullman Company, which ordinarily finds it most convenient to use its own manufacturing facilities to make such repairs. The other, and a distinct branch of the business of the Pullman Company, is the manufacture of sleeping cars for the abovementioned use of railway companies and the manufacture for sale to railway companies of freight cars and ordinary passenger cars, and of streetcars, and this business is almost at a standstill throughout the United States.
The business of manufacturing cars for sale gives employment to about 70 percent of the shop employees. The manufacture of sleeping cars for use by railway companies under contract, and which, under normal conditions, gives employment to about 15 percent of the shop employees, cannot be resumed by the company to an important extent for a very long time; for, out of the provision made for the abnormal travel last year, the company now has about 400 sleeping cars in store ready for use, but for which there is no need in the existing conditions of public travel.
It is now threatened by the American Railway Union officials that railway companies using Pullman sleeping cars shall be compelled to deprive their passengers of sleeping-car accommodations unless the Pullman Company will agree to submit to arbitration the question as to whether or not it shall open its manufacturing shops at Pullman and operate them under a scale of wages which would cause a daily loss to it of one-fourth the wages paid.
SOURCE: 53rd Congress, 3rd Session. Senate Document No. 7.