CHAPTER 5

THE VICTORY OF CRAFT UNIONISM AND THE FINAL FAILURE OF PRODUCERS'

COOPERATION

We now come to the most significant aspect of the Great Upheaval: the

life and death struggle between two opposed principles of labor

organization and between two opposed labor programs. The Upheaval

offered the practical test which the labor movement required for an

intelligent decision between the rival claims of Knights and trade

unionists. The test as well as the conflict turned principally on

"structure," that is on the difference between "craft autonomists" and

those who would have labor organized "under one head," or what we would

now call the "one big union" advocates.

As the issue of "structure" proved in the crucial eighties, and has

remained ever since, the outstanding factional issue in the labor

movement, it might be well at this point to pass in brief review the

structural developments in labor organization from the beginning and try

to correlate them with other important developments.

The early[20] societies of shoemakers and printers were purely local in

scope and the relations between "locals" extended only to feeble

attempts to deal with the competition of traveling journeymen.

Occasionally, they corresponded on trade matters, notifying each other

of their purposes and the nature of their demands, or expressing

fraternal greetings; chiefly for the purpose of counteracting

advertisements by employers for journeymen or keeping out dishonest

members and so-called "scabs." This mostly relates to printers. The

shoemakers, despite their bitter contests with their employers, did even

less. The Philadelphia Mechanics' Trades Association in 1827, which we

noted as the first attempted federation of trades in the United States

if not in the world, was organized as a move of sympathy for the

carpenters striking for the ten-hour day. During the period of the

"wild-cat" prosperity the local federation of trades, under the name of

"Trades' Union,"[21] comes to occupy the center of the stage in New

York, Philadelphia, Boston, and appeared even as far "West" as

Pittsburgh, Cincinnati, and Louisville. The constitution of the New York

"Trades' Union" provided, among other things, that each society should

pay a monthly per capita tax of 6-1/4 cents to be used as a strike fund.

Later, when strikes multiplied, the Union limited the right to claim

strike aid and appointed a standing committee on mediation. In 1835 it

discussed a plan for an employment exchange or a "call room." The

constitution of the Philadelphia Union required that a strike be

endorsed by a two-thirds majority before granting aid.

The National Trades' Union, the federation of city trades' unions,

1834-1836, was a further development of the same idea. Its first and

second conventions went little beyond the theoretical. The latter,

however, passed a significant resolution urging the trade societies to

observe a uniform wage policy throughout the country and, should the

employers combine to resist it, the unions should make "one general

strike."

The last convention in 1836 went far beyond preceding conventions in its

plans for solidifying the workingmen of the country. First and foremost,

a "national fund" was provided for, to be made up of a levy of two cents

per month on each of the members of the trades' unions and local

societies represented. The policies of the National Trades' Union

instead of merely advisory were henceforth to be binding. But before the

new policies could be tried, as we know, the entire trade union movement

was wiped out by the panic.

The city "trades' union" of the thirties accorded with a situation where

the effects of the extension of the market were noticeable in the labor

market, and little as yet in the commodity market; when the competitive

menace to labor was the low paid out-of-town mechanic coming to the

city, not the out-of-town product made under lower labor costs selling

in the same market as the products of unionized labor. Under these

conditions the local trade society, reenforced by the city federation of

trades, sufficed. The "trades' union," moreover, served also as a source

of reserve strength.

Twenty years later the whole situation was changed. The fifties were a

decade of extensive construction of railways. Before 1850 there was more

traffic by water than by rail. After 1860 the relative importance of

land and water transportation was reversed. Furthermore, the most

important railway building during the ten years preceding 1860 was the

construction of East and West trunk lines; and the sixties were marked

by the establishment of through lines for freight and the consolidation

of connecting lines. The through freight lines greatly hastened freight

traffic and by the consolidations through transportation became doubly

efficient.

Arteries of traffic had thus extended from the Eastern coast to the

Mississippi Valley. Local markets had widened to embrace half a

continent. Competitive menaces had become more serious and threatened

from a distance. Local unionism no longer sufficed. Consequently, as we

saw, in the labor movement of the sixties the national trade union was

supreme.

There were four distinct sets of causes which operated during the

sixties to bring about nationalization; two grew out of the changes in

transportation, already alluded to, and two were largely independent of

such changes.

The first and most far-reaching cause, as illustrated by the stove

molders, was the competition of the products of different localities

side by side in the same market. Stoves manufactured in Albany, New

York, were now displayed in St. Louis by the side of stoves made in

Detroit. No longer could the molder in Albany be indifferent to the fate

of his fellow craftsman in Louisville. With the molders the

nationalization of the organization was destined to proceed to its

utmost length. In order that union conditions should be maintained even

in the best organized centers, it became necessary to equalize

competitive conditions in the various localities. That led to a

well-knit national organization to control working conditions, trade

rules, and strikes. In other trades, where the competitive area of the

product was still restricted to the locality, the paramount

nationalizing influence was a more intensive competition for employment

between migratory out-of-town journeymen and the locally organized

mechanics. This describes the situation in the printing trade, where the

bulk of work was newspaper and not book and job printing. Accordingly,

the printers did not need to entrust their national officers with

anything more than the control of the traveling journeymen and the

result was that the local unions remained practically independent.

The third cause of concerted national action in a trade union was the

organization of employers. Where the power of a local union began to be

threatened by an employers' association, the next logical step was to

combine in a national union.

The fourth cause was the application of machinery and the introduction

of division of labor, which split up the established trades and laid

industry open to invasion by "green hands." The shoemaking industry,

which during the sixties had reached the factory stage, illustrates this

in a most striking manner. Few other industries experienced anything

like a similar change during this period.

Of course, none of the causes of nationalization here enumerated

operated in entire isolation. In some trades one cause, in other trades

other causes, had the predominating influence. Consequently, in some

trades the national union resembled an agglomeration of loosely allied

states, each one reserving the right to engage in independent action and

expecting from its allies no more than a benevolent neutrality. In other

trades, on the contrary, the national union was supreme in declaring

industrial war and in making peace, and even claimed absolute right to

formulate the civil laws of the trade for times of industrial peace.

The national trade union was, therefore, a response to obvious and

pressing necessity. However slow or imperfect may have been the

adjustment of internal organizations to the conditions of the trade,

still the groove was defined and consequently the amount of possible

floundering largely limited. Not so with the next step, namely the

national federation of trades. In the sixties we saw the national trade

unions join with other local and miscellaneous labor organizations in

the National Labor Union upon a political platform of eight-hours and

greenbackism. In 1873 the same national unions asserted their rejection

of "panaceas" and politics by attempting to create in the National Labor

Congress a federation of trades of a strictly economic character. The

panic and depression nipped that in the bud. When trade unionism revived

in 1879 the national trade unions returned to the idea of a national

federation of labor, but this time they followed the model of the

British Trades Union Congress, the organization which cares for the

legislative interests of British labor. This was the "Federation of

Organized Trades and Labor Unions of the United States and Canada,"

which was set up in 1881.

It is easy to understand why the unions of the early eighties did not

feel the need of a federation on economic lines. The trade unions of

today look to the American Federation of Labor for the discharge of

important economic functions, therefore it is primarily an economic

organization. These functions are the assistance of national trade

unions in organizing their trades, the adjustment of disputes between

unions claiming the same "jurisdiction," and concerted action in matters

of especial importance such as shorter hours, the "open-shop," or

boycotts. None of these functions would have been of material importance

to the trade unions of the early eighties. Existing in well-defined

trades, which were not affected by technical changes, they had no

"jurisdictional" disputes; operating at a period of prosperity with

full employment and rising wages, they did not realize a necessity for

concerted action; the era of the boycotts had not yet begun. As for

having a common agency to do the work of organizing, the trade unions of

the early eighties had no keen desire to organize any but the skilled

workmen; and, since the competition of workmen in small towns had not

yet made itself felt, each national trade union strove to organize

primarily the workmen of its trade in the larger cities, a function for

which its own means were adequate.

The new organization of 1881 was a loose federation of trade and labor

unions with a legislative committee at the head, with Samuel Gompers of

the cigar makers as a member. The platform was purely legislative and

demanded legal incorporation for trade unions,[22] compulsory education

for children, the prohibition of child labor under fourteen, uniform

apprentice laws, the enforcement of the national eight-hour law, prison

labor reform, abolition of the "truck" and "order" system, mechanics'

lien, abolition of conspiracy laws as applied to labor organizations, a

national bureau of labor statistics, a protective tariff for American

labor, an anti-contract immigrant law, and recommended "all trade and

labor organizations to secure proper representation in all law-making

bodies by means of the ballot, and to use all honorable measures by

which this result can be accomplished." Although closely related to the

present American Federation of Labor in point of time and personnel of

leadership, the Federation of Organized Trades and Labor Unions of the

United States and Canada was in reality the precursor of the present

state federations of labor, which as specialized parts of the national

federation now look after labor legislation.

Two or three years later it became evident that the Federation as a

legislative organization proved a failure.[23] Manifestly the trade

unions felt no great interest in national legislation. The indifference

can be measured by the fact that the annual income of the Federation

never exceeded $700 and that, excepting in 1881, none of its conventions

represented more than one-fourth of the trade union membership of the

country. Under such conditions the legislative influence of the

Federation naturally was infinitesimal. The legislative committee

carried out the instructions of the 1883 convention and communicated to

the national committees of the Republican and Democratic parties the

request that they should define their position upon the enforcement of

the eight-hour law and other measures. The letters were not even

answered. A subcommittee of the legislative committee appeared before

the two political conventions, but received no greater attention.

It was not until the majority of the national trade unions came under

the menace of becoming forcibly absorbed by the Order of the Knights of

Labor that a basis appeared for a vigorous federation.

The Knights of Labor were built on an opposite principle from the

national trade unions. Whereas the latter started with independent

crafts and then with hesitating hands tried, as we saw, to erect some

sort of a common superstructure that should express a higher solidarity

of labor, the former was built from the beginning upon a denial of craft

lines and upon an absolute unity of all classes of labor under one

guiding head. The subdivision was territorial instead of occupational

and the government centralized.

The constitution of the Knights of Labor was drawn in 1878 when the

Order laid aside the veil of secrecy to which it had clung since its

foundation in 1869. The lowest unit of organization was the local

assembly of ten or more, at least three-fourths of whom had to be wage

earners at any trade. Above the local assembly was the "district

assembly" and above it the "General Assembly." The district assembly had

absolute power over its local assemblies and the General Assembly was

given "full and final jurisdiction" as "the highest tribunal" of the

Order.[24] Between sessions of the General Assembly the power was vested

in a General Executive Board, presided over by a Grand Master Workman.

The Order of the Knights of Labor in practice carried out the idea which

is now advocated so fervently by revolutionary unionists, namely the

"One Big Union," since it avowedly aimed to bring into one organization

"all productive labor." This idea in organization was aided by the

weakness of the trade unions during the long depression of the

seventies, which led many to hope for better things from a general

pooling of labor strength. But its main appeal rested on a view that

machine technique tends to do away with all distinctions of trades by

reducing all workers to the level of unskilled machine tenders. To its

protagonists therefore the "one big union" stood for an adjustment to

the new technique.

First to face the problem of adjustment to the machine technique of the

factory system were the shoemakers. They organized in 1867 the Order of

the Knights of St. Crispin, mainly for the purpose of suppressing the

competitive menace of "green hands," that is unskilled workers put to

work on shoe machines. At its height in 1872, the Crispins numbered

about 50,000, perhaps the largest union in the whole world at that time.

The coopers began to be menaced by machinery about the middle of the

sixties, and about the same time the machinists and blacksmiths, too,

saw their trade broken up by the introduction of the principle of

standardized parts and quantity production in the making of machinery.

From these trades came the national leaders of the Knights of Labor and

the strongest advocates of the new principle in labor organization and

of the interests of the unskilled workers in general. The conflict

between the trade unions and the Knights of Labor turned on the question

of the unskilled workers.

The conflict was held in abeyance during the early eighties. The trade

unions were by far the strongest organizations in the field and scented

no particular danger when here or there the Knights formed an assembly

either contiguous to the sphere of a trade union or even at times

encroaching upon it.

With the Great Upheaval, which began in 1884, and the inrushing of

hundreds of thousands of semi-skilled and unskilled workers into the

Order, a new situation was created. The leaders of the Knights realized

that mere numbers were not sufficient to defeat the employers and that

control over the skilled, and consequently the more strategic

occupations, was required before the unskilled and semi-skilled could

expect to march to victory. Hence, parallel to the tremendous growth of

the Knights in 1886, there was a constantly growing effort to absorb the

existing trade unions for the purpose of making them subservient to the

interests of the less skilled elements. It was mainly that which

produced the bitter conflict between the Knights and the trade unions

during 1886 and 1887. Neither the jealousy aroused by the success of the

unions nor the opposite aims of labor solidarity and trade separatism

gives an adequate explanation of this conflict. The one, of course,

aggravated the situation by introducing a feeling of personal

bitterness, and the other furnished an appealing argument to each side.

But the struggle was one between groups within the working class, in

which the small but more skilled group fought for independence of the

larger but weaker group of the unskilled and semi-skilled. The skilled

men stood for the right to use their advantage of skill and efficient

organization in order to wrest the maximum amount of concessions for

themselves. The Knights of Labor endeavored to annex the skilled men in

order that the advantage from their exceptional fighting strength might

lift up the unskilled and semi-skilled. From the point of view of a

struggle between principles, this was indeed a clash between the

principle of solidarity of labor and that of trade separatism, but, in

reality, each of the principles reflected only the special interest of a

certain portion of the working class. Just as the trade unions, when

they fought for trade autonomy, really refused to consider the unskilled

men, so the Knights of Labor overlooked the fact that their scheme would

retard the progress of the skilled trades.

The Knights were in nearly every case the aggressors, and it is

significant that among the local organizations of the Knights inimical

to trade unions, District Assembly 49, of New York, should prove the

most relentless. It was this assembly which conducted the longshoremen's

and coal miners' strike in New York in 1887 and which, as we saw,[25]

did not hesitate to tie up the industries of the entire city for the

sake of securing the demands of several hundred unskilled workingmen.

Though District Assembly 49, New York, came into conflict with not a few

of the trade unions in that city, its battle royal was fought with the

cigar makers' unions. There were at the time two factions among the

cigar makers, one upholding the International Cigar Makers' Union with

Adolph Strasser and Samuel Gompers as leaders, the other calling itself

the Progressive Union, which was more socialistic in nature and composed

of more recent immigrants and less skilled workers. District Assembly 49

of the Knights of Labor took a hand in the struggle to support the

Progressive Union and by skillful management brought the situation to

the point where the latter had to allow itself to be absorbed into the

Knights of Labor.

The events in the cigar making trade in New York brought to a climax the

sporadic struggles that had been going on between the Order and the

trade unions. The trade unions demanded that the Knights of Labor

respect their "jurisdiction" and proposed a "treaty of peace" with such

drastic terms that had they been accepted the trade unions would have

been left in the sole possession of the field. The Order was at first

more conciliatory. It would not of course cease to take part in

industrial disputes and industrial matters, but it proposed a _modus

vivendi_ on a basis of an interchange of "working cards" and common

action against employers. At the same time it addressed separately to

each national trade union a gentle admonition to think of the unskilled

workers as well as of themselves. The address said: "In the use of the

wonderful inventions, your organization plays a most important part.

Naturally it embraces within its ranks a very large proportion of

laborers of a high grade of skill and intelligence. With this skill of

hand, guided by intelligent thought, comes the right to demand that

excess of compensation paid to skilled above the unskilled labor. But

the unskilled labor must receive attention, or in the hour of difficulty

the employer will not hesitate to use it to depress the compensation you

now receive. That skilled or unskilled labor may no longer be found

unorganized, we ask of you to annex your grand and powerful corps to the

main army that we may fight the battle under one flag."

But the trade unions, who had formerly declared that their purpose was

"to protect the skilled trades of America from being reduced to

beggary," evinced no desire to be pressed into the service of lifting up

the unskilled and voted down with practical unanimity the proposal.

Thereupon the Order declared open war by commanding all its members who

were also members of the cigar makers' union to withdraw from the latter

on the penalty of expulsion.

Later events proved that the assumption of the aggressive was the

beginning of the undoing of the Order. It was, moreover, an event of

first significance in the labor movement since it forced the trade

unions to draw closer together and led to the founding in the same year,

1886, of the American Federation of Labor.

Another highly important effect of this conflict was the ascendency in

the trade union movement of Samuel Gompers as the foremost leader.

Gompers had first achieved prominence in 1881 at the time of the

organization of the Federation of Organized Trades and Labor Unions. But

not until the situation created by the conflict with the Knights of

Labor did he get his first real opportunity, both to demonstrate his

inborn capacity for leadership and to train and develop that capacity by

overcoming what was perhaps the most serious problem that ever

confronted American organized labor.

The new Federation avoided its predecessor's mistake of emphasizing

labor legislation above all. Its prime purpose was economic. The

legislative interests of labor were for the most part given into the

care of subordinate state federations of labor. Consequently, the

several state federations, not the American Federation of Labor,

correspond in America to the British Trades Union Congress. But in the

conventions of the American Federation of Labor the state federations

are represented only nominally. The Federation is primarily a federation

of national and international (including Canada and Mexico) trade

unions.

Each national and international union in the new Federation was

acknowledged a sovereignty unto itself, with full powers of discipline

over its members and with the power of free action toward the employers

without any interference from the Federation; in other words, its full

autonomy was confirmed. Like the British Empire, the Federation of Labor

was cemented together by ties which were to a much greater extent

spiritual than they were material. Nevertheless, the Federation's

authority was far from being a shadowy one. If it could not order about

the officers of the constituent unions, it could so mobilize the general

labor sentiment in the country on behalf of any of its constituent

bodies that its good will would be sought even by the most powerful

ones. The Federation guaranteed to each union a certain jurisdiction,

generally coextensive with a craft, and protected it against

encroachments by adjoining unions and more especially by rival unions.

The guarantee worked absolutely in the case of the latter, for the

Federation knew no mercy when a rival union attempted to undermine the

strength of an organized union of a craft. The trade unions have learned

from experience with the Knights of Labor that their deadliest enemy

was, after all, not the employers' association but the enemy from within

who introduced confusion in the ranks. They have accordingly developed

such a passion for "regularity," such an intense conviction that there

must be but one union in a given trade that, on occasions, scheming

labor officials have known how to checkmate a justifiable insurgent

movement by a skillful play upon this curious hypertrophy of the feeling

of solidarity. Not only will a rival union never be admitted into the

Federation, but no subordinate body, state or city, may dare to extend

any aid or comfort to a rival union.

The Federation exacted but little from the national and international

unions in exchange for the guarantee of their jurisdiction: A small

annual per capita tax; a willing though a not obligatory support in the

special legislative and industrial campaigns it may undertake; an

adherence to its decisions on general labor policy; an undertaking to

submit to its decision in the case of disputes with other unions, which

however need not in every case be fulfilled; and lastly, an unqualified

acceptance of the principle of "regularity" relative to labor

organization. Obviously, judging from constitutional powers alone, the

Federation was but a weak sort of a government. Yet the weakness was not

the forced weakness of a government which was willing to start with

limited powers hoping to increase its authority as it learned to stand

more firmly on its own feet; it was a self-imposed weakness suggested by

the lessons of labor history.

By contrast the Order of the Knights of Labor, as seen already, was

governed by an all-powerful General Assembly and General Executive

Board. At a first glance a highly centralized form of government would

appear a promise of assured strength and a guarantee of coherence

amongst the several parts of the organization. Perhaps, if America's

wage earners were cemented together by as strong a class consciousness

as the laboring classes of Europe, such might have been the case.

But America's labor movement lacked the unintended aid which the sister

movements in Europe derived from a caste system of society and political

oppression. Where the class lines were not tightly drawn, the

centrifugal forces in the labor movement were bound to assert

themselves. The leaders of the American Federation of Labor, in their

struggle against the Knights of Labor, played precisely upon this

centrifugal tendency and gained a victory by making an appeal to the

natural desire for autonomy and self-determination of any distinctive

group. But originally perhaps intended as a mere "strategic" move, this

policy succeeded in creating a labor movement which was, on

fundamentals, far more coherent than the Knights of Labor even in the

heyday of their glory. The officers and leaders of the Federation,

knowing that they could not command, set themselves to developing a

unified labor will and purpose by means of moral suasion and propaganda.

Where a bare order would breed resentment and backbiting, an appeal,

which is reinforced by a carefully nurtured universal labor sentiment,

will eventually bring about common consent and a willing acquiescence in

the policy supported by the majority. So each craft was made a

self-determining unit and "craft autonomy" became a sacred shibboleth in

the labor movement without interfering with unity on essentials.

The principle of craft autonomy triumphed chiefly because it recognized

the existence of a considerable amount of group selfishness. The Knights

of Labor held, as was seen, that the strategic or bargaining strength of

the skilled craftsman should be used as a lever to raise the status of

the semi-skilled and unskilled worker. It consequently grouped them

promiscuously in "mixed assemblies" and opposed as long as it could the

demand for "national trade assemblies." The craftsman, on the other

hand, wished to use his superior bargaining strength for his own

purposes and evinced little desire to dissipate it in the service of his

humbler fellow worker. To give effect to that, he felt obliged to

struggle against becoming entangled with undesirable allies in the

semi-skilled and unskilled workers for whom the Order spoke. Needless to

say, the individual self-interest of the craft leaders worked hand in

hand with the self-interest of the craft as a whole, for had they been

annexed by the Order they would have become subject to orders from the

General Master Workman or the General Assembly of the Order.

In addition to platonic stirrings for "self-determination" and to narrow

group interest, there was a motive for craft autonomy which could pass

muster both as strictly social and realistic. The fact was that the

autonomous craft union could win strikes where the centralized

promiscuous Order merely floundered and suffered defeat after defeat.

The craft union had the advantage, on the one hand, of a leadership

which was thoroughly familiar with the bit of ground upon which it

operated, and, on the other hand, of handling a group of people of equal

financial endurance and of identical interest. It has already been seen

how dreadfully mismanaged were the great Knights of Labor strikes of

1886 and 1887. The ease with which the leaders were able to call out

trade after trade on a strike of sympathy proved more a liability than

an asset. Often the choice of trades to strike bore no particular

relation to their strategic value in the given situation; altogether one

gathers the impression that these great strikes were conducted by

blundering amateurs who possessed more authority than was good for them

or for the cause. It is therefore not to be wondered at if the compact

craft unions led by specialists scored successes where the heterogeneous

mobs of the Knights of Labor had been doomed from the first. Clearly

then the survival of the craft union was a survival of the fittest; and

the Federation's attachment to the principle of craft autonomy was, to

say the least, a product of an evolutionary past, whatever one may hold

with reference to its fitness in our own time.

Whatever reasons moved the trade unions of the skilled to battle with

the Order for their separate and autonomous existence were bound sooner

or later to induce those craftsmen who were in the Order to seek a

similar autonomy. From the very beginning the more skilled and better

organized trades in the Knights sought to separate from the mixed

"district assemblies" and to create within the framework of the Order

"national trade assemblies."[26] However, the national officers, who

looked upon such a move as a betrayal of the great principle of the

solidarity of all labor, were able to stem the tide excepting in the

case of the window glass blowers, who were granted their autonomy in

1880.

The obvious superiority of the trade union form of organization over the

mixed organization, as revealed by events in 1886 and 1887, strengthened

the separatist tendency. Just as the struggle between the Knights of

Labor and the trade unions on the outside had been fundamentally a

struggle between the unskilled and the skilled portions of the

wage-earning class, so the aspiration toward the national trade assembly

within the Order represented the effort of the more or less skilled men

for emancipation from the dominance of the unskilled. But the Order

successfully fought off such attempts until after the defeat of the

mixed district assemblies, or in other words of the unskilled class, in

the struggle with the employers. With the withdrawal of a very large

portion of this class, as shown in 1887,[27] the demand for the national

trade assembly revived and there soon began a veritable rush to organize

by trades. The stampede was strongest in the city of New York where the

incompetence of the mixed District Assembly 49 had become patent. At the

General Assembly in 1887 at Minneapolis all obstacles were removed from

forming national trade assemblies, but this came too late to stem the

exodus of the skilled element from the order into the American

Federation of Labor.

The victory of craft autonomy over the "one big union" was decisive and

complete.

The strike activities of the Knights were confessedly a deviation from

"First Principles." Yet the First Principles with their emphasis on

producers' cooperation were far from forgotten even when the enthusiasm

for strikes was at its highest. Whatever the actual feelings of the

membership as a whole, the leaders neglected no opportunity to promote

cooperation. T.V. Powderly, the head of the Order since 1878, in his

reports to the annual General Assembly or convention, consistently urged

that practical steps be taken toward cooperation. In 1881, while the

general opinion in the Order was still undecided, the leaders did not

scruple to smuggle into the constitution a clause which made cooperation

compulsory.

Notwithstanding Powderly's exhortations, the Order was at first slow in

taking it up. In 1882 a general cooperative board was elected to work

out a plan of action, but it never reported, and a new board was chosen

in its place at the Assembly of 1883. In that year, the first practical

step was taken in the purchase by the Order of a coal mine at

Cannelburg, Indiana, with the idea of selling the coal at reduced prices

to the members. Soon thereafter a thorough change of sentiment with

regard to the whole matter of cooperation took place, contemporaneously

with the industrial depression and unsuccessful strikes. The rank and

file, who had hitherto been indifferent, now seized upon the idea with

avidity. The enthusiasm ran so high in Lynn, Massachusetts, that it was

found necessary to raise the shares of the Knights of Labor Cooperative

Shoe Company to $100 in order to prevent a large influx of "unsuitable

members." In 1885 Powderly complained that "many of our members grow

impatient and unreasonable because every avenue of the Order does not

lead to cooperation."

The impatience for immediate cooperation, which seized the rank and file

in practically every section of the country, caused an important

modification in the official doctrine of the Order. Originally it had

contemplated centralized control under which it would have taken years

before a considerable portion of the membership could realize any

benefit. This was now dropped and a decentralized plan was adopted.

Local organizations and, more frequently, groups of members with the

financial aid of their local organizations now began to establish shops.

Most of the enterprises were managed by the stockholders, although, in

some cases, the local organization of the Knights of Labor managed the

plant.

Most of the cooperative enterprises were conducted on a small scale.

Incomplete statistics warrant the conclusion that the average amount

invested per establishment was about $10,000. From the data gathered it

seems that cooperation reached its highest point in 1886, although it

had not completely spent itself by the end of 1887. The total number of

ventures probably reached two hundred. The largest numbers were in

mining, cooperage, and shoes. These industries paid the poorest wages

and treated their employes most harshly. A small amount of capital was

required to organize such establishments.

With the abandonment of centralized cooperation in 1884, the role of the

central cooperative board changed correspondingly. The leading member of

the board was now John Samuel, one of those to whom cooperation meant

nothing short of a religion. The duty of the board was to educate the

members of the Order in the principles of cooperation; to aid by

information and otherwise prospective and actual cooperators; in brief,

to coordinate the cooperative movement within the Order. It issued forms

of a constitution and by-laws which, with a few modifications, could be

adopted by any locality. It also published articles on the dangers and

pitfalls in cooperative ventures, such as granting credit, poor

management, etc., as well as numerous articles on specific kinds of

cooperation. The Knights of Labor label was granted for the use of

cooperative goods and a persistent agitation was steadily conducted to

induce purchasers to give a preference to cooperative products.

As a scheme of industrial regeneration, cooperation never materialized.

The few successful shops sooner or later fell into the hands of an

"inner group," who "froze out" the others and set up capitalistic

partnerships. The great majority went on the rocks even before getting

started. The causes of failure were many: Hasty action, inexperience,

lax shop discipline, internal dissensions, high rates of interest upon

the mortgage of the plant, and finally discriminations instigated by

competitors. Railways were heavy offenders, by delaying side tracks and,

on some pretext or other, refusing to furnish cars or refusing to haul

them.

The Union Mining Company of Cannelburg, Indiana, owned and operated by

the Order as its sole experiment of the centralized kind of cooperation,

met this fate. After expending $20,000 in equipping the mine, purchasing

land, laying tracks, cutting and sawing timber on the land and mining

$1000 worth of coal, they were compelled to lie idle for nine months

before the railway company saw fit to connect their switch with the main

track. When they were ready to ship their product, it was learned that

their coal could be utilized for the manufacture of gas only, and that

contracts for supply of such coal were let in July, that is nine months

from the time of connecting the switch with the main track. In addition,

the company was informed that it must supply itself with a switch engine

to do the switching of the cars from its mine to the main track, at an

additional cost of $4000. When this was accomplished they had to enter

the market in competition with a bitter opponent who had been fighting

them since the opening of the mine. Having exhausted their funds and not

seeing their way clear to securing additional funds for the purchase of

a locomotive and to tide over the nine months ere any contracts for coal

could be entered into, they sold out to their competitor.

But a cause more fundamental perhaps than all other causes of the

failure of cooperation in the United States is to be found in the

difficulties of successful entrepreneurship. In the labor movement in

the United States there has been a failure, generally speaking, to

appreciate the significance of management and the importance which must

be imputed to it. Glib talk often commands an undeserved confidence and

misleads the wage earner. Thus by 1888, three or four years after it had

begun, the cooperative movement had passed the full cycle of life and

succumbed. The failure, as said, was hastened by external causes and

discrimination. But the experiments had been foredoomed anyway,--through

the incompatibility of producers' cooperation with trade unionism. The

cooperators, in their eagerness to get a market, frequently undersold

the private employer expecting to recoup their present losses in future

profits. In consequence, the privately employed wage earners had to bear

reductions in their wages. A labor movement which endeavors to practice

producers' cooperation and trade unionism at the same time is actually

driving in opposite directions.

FOOTNOTES:

[20] See Chapter 1.

[21] In the thirties the term "union" was reserved for the city

federations of trades. What is now designated as a trade union was

called trade society. In the sixties the "Union" became the "trades'

assembly."

[22] See below, 152-154.

[23] See below, 285-290, for a discussion why American labor looks away

from legislation.

[24] The Constitution read as follows: "It alone possesses the power and

authority to make, amend, or repeal the fundamental and general laws and

regulations of the Order; to finally decide all controversies arising in

the Order; to issue all charters.... It can also tax the members of the

Order for its maintenance."

[25] See above, 98-100.

[26] The "local assemblies" generally followed in practice trade lines,

but the district assemblies were "mixed."

[27] See above, 100-101.

A History of Trade Unionism in the United States · 第 5 / 9 章