The Armies of Labor [25]
from the organization. This outcome, however, did not restore the order to the confidence of the public, and its strength now rapidly declined. A loss of 300,000 members for the year 1888 was reported. Early in the nineties, financial troubles compelled the sale of the Philadelphia headquarters of the Knights of Labor and the removal to more modest quarters in Washington. A remnant of members still retain an organization, but it is barely a shadow of the vast army of Knights who at one time so hopefully carried on a crusade in every center of industry. It was not merely the excesses of the lawless but the multiplicity of strikes which alienated public sympathy. Powderly's repeated warnings that strikes, in and of themselves, were destructive of the stable position of labor were shown to be prophetic.
These excesses, however, were forcing upon the public the idea that it too had not only an interest but a right and a duty in labor disputes. Methods of arbitration and conciliation were now discussed in every legislature. In 1883 the House of Representatives established a standing committee on labor. In 1884 a national Bureau of Labor was created to gather statistical information. In 1886 President Cleveland sent to Congress a message which has become historic as the first presidential message devoted to labor. In this he proposed the creation of a board of labor commissioners who should act as official arbiters in labor disputes, but Congress was unwilling at that time to take so advanced a step. In 1888, however, it enacted a law providing for the settlement of railway labor disputes by arbitration, upon agreement of both parties.
Arbitration signifies a judicial attitude of mind, a judgment based on facts. These facts are derived from specific conditions and do not grow out of broad generalizations. Arbitral tribunals are created to decide points in dispute, not philosophies of human action. The businesslike organization of the new trade union could as readily adapt itself to arbitration as it had already adapted itself, in isolated instances, to collective bargaining. A new stage had therefore been reached in the labor movement.
CHAPTER V. FEDERATION
Experience and events had now paved the way for that vast centralization of industry which characterizes the business world of the present era. The terms sugar, coffee, steel, tobacco, oil, acquire on the stock exchange a new and precise meaning. Seventy-five per cent of steel, eighty-three per cent of petroleum, ninety per cent of sugar production are brought under the control of industrial combinations. Nearly one-fourth of the wage-earners of America are employed by great corporations. But while financiers are talking only in terms of millions, while super-organization is reaching its eager fingers into every industry, and while the units of business are becoming national in scope, the workingman himself is being taught at last to rely more and more upon group action in his endeavor to obtain better wages and working conditions. He is taught also to widen the area of his organization and to intensify its efforts. So, while the public reads in the daily and periodical press about the oil trust and the coffee trust, it is also being admonished against a labor trust and against two personages, both symbols of colossal economic unrest--the promoter, or the stalking horse of financial enterprise, and the walking delegate, or the labor union representative and only too frequently the advance agent of bitterness and revenge.
In response to the call of the hour there appeared the American Federation of Labor, frequently called in these later days the labor trust. The Federation was first suggested at Terre Haute, Indiana, on August 2, 1881, at a convention called by the Knights of Industry and the Amalgamated Labor Union, two secret societies patterned after the model common at that period. The Amalgamated Union was composed largely of disaffected Knights of Labor, and the avowed purpose of the Convention was to organize a new secret society to supplant the Knights.
These excesses, however, were forcing upon the public the idea that it too had not only an interest but a right and a duty in labor disputes. Methods of arbitration and conciliation were now discussed in every legislature. In 1883 the House of Representatives established a standing committee on labor. In 1884 a national Bureau of Labor was created to gather statistical information. In 1886 President Cleveland sent to Congress a message which has become historic as the first presidential message devoted to labor. In this he proposed the creation of a board of labor commissioners who should act as official arbiters in labor disputes, but Congress was unwilling at that time to take so advanced a step. In 1888, however, it enacted a law providing for the settlement of railway labor disputes by arbitration, upon agreement of both parties.
Arbitration signifies a judicial attitude of mind, a judgment based on facts. These facts are derived from specific conditions and do not grow out of broad generalizations. Arbitral tribunals are created to decide points in dispute, not philosophies of human action. The businesslike organization of the new trade union could as readily adapt itself to arbitration as it had already adapted itself, in isolated instances, to collective bargaining. A new stage had therefore been reached in the labor movement.
CHAPTER V. FEDERATION
Experience and events had now paved the way for that vast centralization of industry which characterizes the business world of the present era. The terms sugar, coffee, steel, tobacco, oil, acquire on the stock exchange a new and precise meaning. Seventy-five per cent of steel, eighty-three per cent of petroleum, ninety per cent of sugar production are brought under the control of industrial combinations. Nearly one-fourth of the wage-earners of America are employed by great corporations. But while financiers are talking only in terms of millions, while super-organization is reaching its eager fingers into every industry, and while the units of business are becoming national in scope, the workingman himself is being taught at last to rely more and more upon group action in his endeavor to obtain better wages and working conditions. He is taught also to widen the area of his organization and to intensify its efforts. So, while the public reads in the daily and periodical press about the oil trust and the coffee trust, it is also being admonished against a labor trust and against two personages, both symbols of colossal economic unrest--the promoter, or the stalking horse of financial enterprise, and the walking delegate, or the labor union representative and only too frequently the advance agent of bitterness and revenge.
In response to the call of the hour there appeared the American Federation of Labor, frequently called in these later days the labor trust. The Federation was first suggested at Terre Haute, Indiana, on August 2, 1881, at a convention called by the Knights of Industry and the Amalgamated Labor Union, two secret societies patterned after the model common at that period. The Amalgamated Union was composed largely of disaffected Knights of Labor, and the avowed purpose of the Convention was to organize a new secret society to supplant the Knights.