It is not to be imagined that every member of this vast horde so suddenly brought together understood the obligations of the workman’s chivalry. The selfish and the lawless rushed in with the prudent and sincere. But a resolution of the executive board to stop the initiation of new members came too late. The undesirable and radical element in many communities gained control of local assemblies, and the conservatism and intelligence of the national leaders became merely a shield for the rowdy and the ignorant who brought the entire order into popular disfavor.
The crisis came in 1886. In the early months of this turbulent year there were nearly five hundred labor disputes, most of them involving an advance in wages. An epidemic of strikes then spread over the country, many of them actually conducted by the Knights of Labor and all of them associated in the public mind with that order. One of the most important of these occurred on the Southwestern Railroad. In the preceding year, the Knights had increased their lodges in St. Louis from five to thirty, and these were under the domination of a coarse and ruthless district leader. When in February, 1886, a mechanic, working in the shops of the Texas and Pacific Railroad at Marshall, Texas, was discharged for cause and the road refused to reinstate him, a strike ensued which spread over the entire six thousand miles of the Gould system; and St. Louis became the center of the tumult. After nearly two months of violence, the outbreak ended in the complete collapse of the strikers. This result was doubly damaging to the Knights of Labor, for they had officially taken charge of the strike and were censured on the one hand for their conduct of the struggle and on the other for the defeat which they had sustained.
In the same year, against the earnest advice of the national leaders of the Knights of Labor, the employees of the Third Avenue Railway in New York began a strike which lasted many months and which was characterized by such violence that policemen were detailed to guard every car leaving the barns. In Chicago the freight handlers struck, and some 60,000 workmen stopped work in sympathy. On the 3d of May, at the McCormick Harvester Works, several strikers were wounded in a tussle with the police. On the following day a mass meeting held in Haymarket Square, Chicago, was harangued by a number of anarchists. When the police attempted to disperse the mob, guns were fired at the officers of the law and a bomb was hurled into their throng, killing seven and wounding sixty. For this crime seven anarchists were indicted, found guilty, and sentenced to be hanged. The Knights of Labor passed resolutions asking clemency for these murderers and thereby grossly offended public opinion, and that at a time when public opinion was frightened by these outrages, angered by the disclosures of brazen plotting, and upset by the sudden consciousness that the immunity of the United States from the red terror of Europe was at an end.
Powderly and the more conservative national officers who were opposed to these radical machinations were strong enough in the Grand Lodge in the following year to suppress a vote of sympathy for the condemned anarchists. The radicals thereupon seceded 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.