It was originally a secret organization, but that feature was later abandoned. The following restriction on membership appears in the constitution of the Local Assemblies: "... no lawyer, banker, professional gambler, or stock broker can be admitted." Prior to 1881 physicians were also excluded. It is composed of Local Assemblies (local unions) controlled by District Assemblies, a General Assembly and a Grand Master Workman. These parts were closely related to each other in a centralized system. Centralization of administrative authority was considered highly important—indeed, it was thought indispensable in order successfully to unite every branch of skilled and unskilled labor—a task the Knights considered of prime importance. They differed, however, from our more radical I. W. W.'s of today in placing no little confidence in political methods, maintaining as they did for many years a legislative lobbying committee at Washington. In addition they believed, with the I. W. W., in the sympathetic strike, the boycott—and the necessity of solidarity among all the ranks of labor. The following excerpt from the Final Report of the United States Industrial Commission (1900) explains the administrative policy of the organization:

The fundamental idea of the Knights of Labor is the unity of all workers.... It regards this unity of interest as necessitating unity of policy and control; it conceives that unity of control can be effected only by concentrating all responsibility ... in the hands of the men who may be chosen to stand at the head of affairs. The control of the organization rests wholly in the general assembly, and ... the orders of the executive officers, elected by the general assembly, are required to be obeyed by all members. The several trades are separately organized within the order.... The Knights desired to include all productive workers, whether or not they received their compensation in the form of wages.[14]

The emphasis placed by the Knights upon the union of skilled and unskilled is significant in relation to the later efforts of the I. W. W. to effect such a union. "I saw," said Grand Master Workman Terence V. Powderly, "that labor-saving machinery was bringing the machinist down to the level of a day laborer, and soon they would be on a level. My aim was to dignify the laborer."[15] Mr. Powderly is reported in the same interview as saying that his greatest difficulty in getting machinists and blacksmiths to join the Knights of Labor lay in the contempt with which they looked upon other workers.

There was a much closer connection in the Knights of Labor between the central organization and the local bodies than is today the case with the American Federation of Labor, which, as its name implies, is a comparatively loose federation of autonomous "international unions." This high degree of centralization of power in the hands of the General Assembly and the national officers was a factor in the disintegration of the order. More important still was the fact of internal dissension, especially the bitter animosity arising out of the Knights' participation in politics. "... There came the question whether the organization should go into politics as a body or not. That question was probably discussed in every Local Assembly in America ... [and] those political questions coming up drove men out of the organization...."[16]

The Knights were a curious mixture of conservative and radical elements. The organization was socialistic, but rather state socialistic than anything else. Despite their arbitration clause they did not believe in the identity of interest of employer and employee. As trade unionists they were innovators and steered far from the narrow trade type of union imported from England. They said—in words—that they wanted to destroy the wage system. "To point out a way to utterly destroy this system would be a pleasure to me," said Grand Master Workman Powderly.[17] As to the Knights of Labor policy in regard to violence, Perlman says that "... although the leaders of the Knights preached against violence and what we now call sabotage both were nevertheless extensively practiced, as, for instance, in the Southwest Railway strike of 1886." He goes on to draw a parallel between the Knights and the "Wobblies," declaring that the latter preach violence without practicing it, while the Knights practiced it without preaching. He adds that the Knights of Labor adopted coöperation as their official philosophy and the I. W. W. adopted syndicalism and declares that neither practiced their doctrines very much.[18] The disrupted condition of the Knights of Labor in 1902, three years before the organization of the I. W. W., may be understood from the following press dispatch:

The rival factions of the Knights of Labor will each hold a congress at Albany this week beginning Tuesday. Each congress claims to represent the Knights of Labor in this State.... The Hayes faction has at present the books, property and paraphernalia of the Knights of Labor which were awarded to it by the courts some time ago.[19]

Simultaneously with the rise of the Knights of Labor in America came the International Workingmen's Association, the famous "International" which, springing up in Europe in the late sixties, soon spread to both sides of the Atlantic. It was first established in the United States in 1871. This first American section of the International made a slogan of the declaration that the emancipation of the working classes must be achieved by the working classes themselves.[20] The organization appears to have been short-lived; for ten years later, in 1881, another body calling itself the International Workingmen's Association was organized at Pittsburgh. This organization, says Tridon, was "made up mostly of laborers and farmers who rejected all parliamentary action and advocated education and propaganda as the best means to bring about a social revolution."[21] In 1887, when they had about 6,000 members, they attempted to amalgamate with the Socialist Labor party, but the negotiations failed and they disbanded.[22]

Meantime the anarchists had been busy in this country. In 1881, the year which marks the birth of the American Federation of Labor (then called the Federation of Organized Trades and Labor Unions of the United States and Canada), the difference between them and those who advocated political action finally assumed definite form in the organization by the anarchist advocates of physical force of the Revolutionary Socialist party. In 1883 there was held a joint convention of the "revolutionary socialists" and the anarchists which resulted in the birth of the International Working People's Association.[23] At this convention were gathered representatives of anarchist and revolutionary socialist groups from twenty-six cities. These delegates drafted the famous Pittsburgh proclamation which demanded "the destruction of the existing government by all means, i. e., by energetic, implacable, revolutionary and international action" and the establishment of an industrial system based upon "the free exchange of equivalent products between the producing organizations themselves and without the intervention of middlemen and profit-making."[24] In the course of two years the membership of the International grew to about 7,000. Then in 1888 came the Haymarket tragedy and the International soon passed out of existence. The anarchists were in control of this organization and great stress was laid upon revolutionary tactics and direct action, with a corresponding depreciation of political action. John Most, the anarchist, had come to this country in 1882 and the organization of the International Working People's Association was largely due to his agitation here.