These "sections," with a maximum membership which probably never exceeded a thousand, nearly all foreigners, became a preparatory school in trade union leadership for many of the later organizers and leaders of the American Federation of Labor: for example, Adolph Strasser, the German cigar maker, whose organization became the new model in trade unionism, and P.J. McGuire, the American-born carpenter, who founded the Brotherhood of Carpenters and Joiners and who was for many years the secretary-treasurer of the American Federation of Labor.

Fate had decreed that these sections of a handful of immigrants should play for a time high-sounding parts in the world labor movement. When, at the World Congress of the International Workingmen's Association at the Hague in 1872, the anarchist faction led by Bakunin had shown such strength that Marx and his socialist faction deemed it wise to move the General Council out of mischief's way, they removed it to New York and entrusted its powers into the hands of the faithful German Marxians on this side of the Atlantic. This spelled the end of the Internationale as a world organization, but enormously increased the stakes of the factional fights within the handful of American Internationalists. The organization of the workers into trade unions, the Internationale's first principle, was forgotten in the heat of intemperate struggles for empty honors and powerless offices. On top of that, with the panic of 1873 and the ensuing prolonged depression, the political drift asserted itself in socialism as it had in the labor movement in general and the movement, erstwhile devoted primarily to organization of trade unions, entered, urged on by the Lassalleans, into a series of political campaigns somewhat successful at first but soon succumbing to the inevitable fate of all amateurish attempts. Upon men of Strasser's practical mental grasp these petty tempests in the melting pot could only produce an impression of sheer futility, and he turned to trade unionism as the only activity worth his while. Strasser had been elected president of the Cigar Makers' International Union in 1877, in the midst of a great strike in New York against the tenement-house system.

The president of the local New York union of cigar makers was at the time Samuel Gompers, a young man of twenty-seven, who was born in England and came to America in 1862. In his endeavor to build up a model for the "new" unionism and in his almost uninterrupted headship of that movement for forty years is indicated Gompers' truly representative character. Born of Dutch-Jewish parents in England in 1850, he typifies the cosmopolitan origins of American unionism. His early contact in the union of his trade with men like Strasser, upon whom the ideas of Marx and the International Workingmen's Association had left an indelible stamp, and his thorough study of Marx gave him that grounding both in idealism and class consciousness which has produced many strong leaders of American unions and saved them from defection to other interests. Aggressive and uncompromising in a perpetual fight for the strongest possible position and power of trade unions, but always strong for collective agreements with the opposing employers, he displays the business tactics of organized labor. At the head of an organization which denies itself power over its constituent unions, he has brought and held together the most widely divergent and often antagonistic unions, while permitting each to develop and even to change its character to fit the changing industrial conditions.

The dismal failure of the strike against the tenement house system in cigar making brought home to both Strasser and Gompers the weakness of the plan of organization of their union as well as that of American trade unions in general. They consequently resolved to rebuild their union upon the pattern of the British unions, although they firmly intended that it should remain a militant organization. The change involved, first, complete authority over the local unions in the hands of the international officers; second, an increase in the membership dues for the purpose of building up a large fund; and, third, the adoption of a far-reaching benefit system in order to assure stability to the organization. This was accomplished at the convention held in August, 1879. This convention simultaneously adopted the British idea of the "equalization of funds," which gave the international officers the power to order a well-to-do local union to transfer a portion of its funds to another local union in financial straits. With the various modifications of the feature of "equalization of funds," the system of government in the Cigar Makers' International Union was later used as a model by the other national and international trade unions.

As Strasser and men of his ilk grew more and more absorbed in the practical problems of the everyday struggle of the wage-earners for better conditions of employment, the socialistic portion of their original philosophy kept receding further and further into the background until they arrived at pure trade unionism. But their trade unionism differed vastly from the "native" American trade unionism of their time, which still hankered for the haven of producers' cooperation. The philosophy which these new leaders developed might be termed a philosophy of pure wage-consciousness. It signified a labor movement reduced to an opportunistic basis, accepting the existence of capitalism and having for its object the enlarging of the bargaining power of the wage earner in the sale of his labor. Its opportunism was instrumental—its idealism was home and family and individual betterment. It also implied an attitude of aloofness from all those movements which aspire to replace the wage system by cooperation, whether voluntary or subsidized by government, whether greenbackism, socialism, or anarchism.

Perhaps the most concise definition of this philosophy is to be found in Strasser's testimony before the Senate Committee on Education and Labor in 1883:

"Q. You are seeking to improve home matters first?

"A. Yes, sir, I look first to the trade I represent; I look first to cigars, to the interests of men who employ me to represent their interest.

"Chairman: I was only asking you in regard to your ultimate ends.

"Witness: We have no ultimate ends. We are going on from day to day. We are fighting only for immediate objects—objects that can be realized in a few years.

"By Mr. Call: Q. You want something better to eat and to wear, and better houses to live in?

"A. Yes, we want to dress better and to live better, and become better citizens generally.

"The Chairman: I see that you are a little sensitive lest it should be thought that you are a mere theoriser, I do not look upon you in that light at all.

"The Witness: Well, we say in our constitution that we are opposed to theorists, and I have to represent the organization here. We are all practical men."

Another offshoot of the same Marxian Internationale were the "Chicago Anarchists."[17] The Internationale, as we saw, emphasized trade unionism as the first step in the direction of socialism, in opposition to the political socialism of Lassalle, which ignored the trade union and would start with a political party outright. Shorn of its socialistic futurity this philosophy became non-political "business" unionism; but, when combined with a strong revolutionary spirit, it became a non-political revolutionary unionism, or syndicalism.

The organization of those industrial revolutionaries was called the International Working People's Association, also known as the "Black" or anarchist International, which was formed at Pittsburgh in 1883. Like the old Internationale it busied itself with forming trade unions, but insisted that they conform to a revolutionary model. Such a "model" trade union was the Federation of Metal Workers of America, which was organized in 1885. It said in its Declaration of Principles that the entire abolition of the present system of society can alone emancipate the workers, but under no consideration should they resort to politics; "our organization should be a school to educate its members for the new condition of society, when the workers will regulate their own affairs without any interference by the few. Since the emancipation of the productive classes must come by their own efforts, it is unwise to meddle in present politics.... All direct struggles of the laboring masses have our fullest sympathy." Alongside the revolutionary trade unions were workers' armed organizations ready to usher in the new order by force. "By force," recited the Pittsburgh Manifesto of the Black International, "our ancestors liberated themselves from political oppression, by force their children will have to liberate themselves from economic bondage. It is, therefore, your right, it is your duty, says Jefferson,—to arms!"

The following ten years were to decide whether the leadership of the American labor movement was to be with the "practical men of the trade unions" or with the cooperative idealists of the Knights of Labor.