The high water mark was reached in the autumn of 1886. But in the early months of 1887 a reaction became visible. By July 1, the membership of the Order had diminished to 510,351. While a share of this retrogression may have been due to the natural reaction of large masses of people who had been suddenly set in motion without experience, a more immediate cause came from the employers. Profiting by past lessons, they organized strong associations. The main object of these employers' associations was the defeat of the Knights. They were organized sectionally and nationally. In small localities, where the power of the Knights was especially great, all employers regardless of industry joined in a single association. But in large manufacturing centers, where the rich corporation prevailed, they included the employers of only one industry. To attain their end these associations made liberal use of the lockout, the blacklist, and armed guards and detectives. Often they treated agreements entered into with the Order as contracts signed under duress. The situation in the latter part of 1886 and in 1887 had been clearly foreshadowed in the treatment accorded the Knights of Labor on the Gould railways in the Southwest in the early part of 1886.
As already mentioned, at the settlement of the strike on the Gould system in March 1885, the employes were assured that the road would institute no discriminations against the Knights of Labor. However, it is apparent that a series of petty discriminations was indulged in by minor officials, which kept the men in a state of unrest. It culminated in the discharge of a foreman, a member of the Knights, from the car shop at Marshall, Texas, on the Texas & Pacific Road, which had shortly before passed into the hands of a receiver. A strike broke out over the entire road on March 1, 1886. It is necessary, however, to note that the Knights of Labor themselves were meditating aggressive action two months before the strike. District Assembly 101, the organization embracing the employes on the Southwest system, held a convention on January 10, and authorized the officers to call a strike at any time they might find opportune to enforce the two following demands: first, the formal "recognition" of the Order; and second, a daily wage of $1.50 for the unskilled. The latter demand is peculiarly characteristic of the Knights of Labor and of the feeling of labor solidarity that prevailed in the movement. But evidently the organization preferred to make the issue turn on discrimination against members. Another peculiarity which marked off this strike as the beginning of a new era was the facility with which it led to a sympathetic strike on the Missouri Pacific and all leased and operated lines. This strike broke out simultaneously over the entire system on March 6. It affected more than 5000 miles of railway situated in Missouri, Kansas, Arkansas, Indian Territory, and Nebraska. The strikers did not content themselves with mere picketing, but actually took possession of the railroad property and by a systematic "killing" of engines, that is removing some indispensable part, effectively stopped all the freight traffic. The number of men actively on strike was in the neighborhood of 9000, including practically all of the shopmen, yardmen, and section gangs. The engineers, firemen, brakemen, and conductors took no active part and had to be forced to leave their posts under threats from the strikers.
The leader, one Martin Irons, accurately represented the feelings of the strikers. Personally honest and probably well-meaning, his attitude was overbearing and tyrannical. With him as with those who followed him, a strike was not a more or less drastic means of forcing a better labor contract, but necessarily assumed the aspect of a crusade against capital. Hence all compromise and any policy of give and take were excluded.
Negotiations were conducted by Jay Gould and Powderly to submit the dispute to arbitration, but they failed and, after two months of sporadic violence, the strike spent itself and came to an end. It left, however, a profound impression upon the public mind, second only to the impression made by the great railway strike of 1877; and a Congressional committee was appointed to investigate the whole matter.
The disputes during the second half of 1886 ended, for the most part, disastrously to labor. The number of men involved in six months, was estimated at 97,300. Of these, about 75,300 were in nine great lockouts, of whom 54,000 suffered defeat at the hands of associated employers. The most important lockouts were against 15,000 laundry workers at Troy, New York, in June; against 20,000 Chicago packing house workers; and against 20,000 knitters at Cohoes, New York, both in October.
The lockout of the Chicago butcher workmen attracted the most attention. These men had obtained the eight-hour day without a strike during May. A short time thereafter, upon the initiative of Armour & Company, the employers formed a packers' association and, in the beginning of October, notified the men of a return to the ten-hour day on October 11. They justified this action on the ground that they could not compete with Cincinnati and Kansas City, which operated on the ten-hour system. On October 8, the men, who were organized in District Assemblies 27 and 54, suspended work, and the memorable lockout began. The packers' association rejected all offers of compromise and on October 18 the men were ordered to work on the ten-hour basis. But the dispute in October, which was marked by a complete lack of ill-feeling on the part of the men and was one of the most peaceable labor disputes of the year, was in reality a mere prelude to a second disturbance which broke out in the plant of Swift & Company on November 2 and became general throughout the stockyards on November 6. The men demanded a return to the eight-hour day, but the packers' association, which was now joined by Swift & Company, who formerly had kept aloof, not only refused to give up the ten-hour day, but declared that they would employ no Knights of Labor in the future. The Knights retaliated by declaring a boycott on the meat of Armour & Company. The behavior of the men was now no longer peaceable as before, and the employers took extra precautions by prevailing upon the governor to send two regiments of militia in addition to the several hundred Pinkerton detectives employed by the association. To all appearances, the men were slowly gaining over the employers, for on November 10 the packers' association rescinded its decision not to employ Knights, when suddenly on November 15, like a thunderbolt out of a clear sky, a telegram arrived from Grand Master Workman Powderly ordering the men back to work. Powderly had refused to consider the reports from the members of the General Executive Board who were on the ground, but, as was charged by them, was guided instead by the advice of a priest who had appealed to him to call off the strike and thus put an end to the suffering of the men and their families.
New York witnessed an even more characteristic Knights of Labor strike and on a larger scale. This strike began as two insignificant separate strikes, one by coal-handlers at the Jersey ports supplying New York with coal and the other by longshoremen on the New York water front; both starting on January 1, 1887. Eighty-five coal-handlers employed by the Philadelphia & Reading Railroad Company, members of the Knights of Labor, struck against a reduction of 2½ cents an hour in the wages of the "top-men" and were joined by the trimmers who had grievances of their own. Soon the strike spread to the other roads and the number of striking coal-handlers reached 3000. The longshoremen's strike was begun by 200 men, employed by the Old Dominion Steamship Company, against a reduction in wages and the hiring of cheap men by the week. The strikers were not organized, but the Ocean Association, a part of the Knights of Labor, took up their cause and was assisted by the longshoremen's union. Both strikes soon widened out through a series of sympathetic strikes of related trades and finally became united into one. The Ocean Association declared a boycott on the freight of the Old Dominion Company and this was strictly obeyed by all of the longshoremen's unions. The International Boatmen's Union refused to allow their boats to be used for "scab coal" or to permit their members to steer the companies' boats. The longshoremen joined the boatmen in refusing to handle coal, and the shovelers followed. Then the grain handlers on both floating and stationary elevators refused to load ships with grain on which there was scab coal, and the bag-sewers stood with them. The longshoremen now resolved to go out and refused to work on ships which received scab coal, and finally they decided to stop work altogether on all kinds of craft in the harbor until the trouble should be settled. The strike spirit spread to a large number of freight handlers working for railroads along the river front, so that in the last week of January the number of strikers in New York, Brooklyn, and New Jersey, reached approximately 28,000; 13,000 longshoremen, 1000 boatmen, 6000 grain handlers, 7500 coal-handlers, and 400 bag-sewers.
On February 11, August Corbin, president and receiver of the Philadelphia & Reading Railroad Company, fearing a strike by the miners working in the coal mines operated by that road, settled the strike by restoring to the eighty-five coal-handlers, the original strikers, their former rate of wages. The Knights of Labor felt impelled to accept such a trivial settlement for two reasons. The coal-handlers' strike, which drove up the price of coal to the consumer, was very unpopular, and the strike itself had begun to weaken when the brewers and stationary engineers, who for some obscure reason had been ordered to strike in sympathy, refused to come out. The situation was left unchanged, as far as the coal-handlers employed by the other companies, the longshoremen, and the many thousands of men who went out on sympathetic strike were concerned. The men began to return to work by the thousands and the entire strike collapsed.
The determined attack and stubborn resistance of the employers' associations after the strikes of May 1886, coupled with the obvious incompetence displayed by the leaders, caused the turn of the tide in the labor movement in the first half of 1887. This, however, manifested itself during 1887 exclusively in the large cities, where the movement had borne in the purest form the character of an uprising by the class of the unskilled and where the hardest battles were fought with the employers. District Assembly 49, New York, fell from its membership of 60,809 in June 1886, to 32,826 in July 1887. During the same interval, District Assembly 1, Philadelphia, decreased from 51,557 to 11,294, and District Assembly 30, Boston, from 81,197 to 31,644. In Chicago there were about 40,000 Knights immediately before the packers' strike in October 1886, and only about 17,000 on July 1, 1887. The falling off of the largest district assemblies in 10 large cities practically equalled the total loss of the Order, which amounted approximately to 191,000. At the same time the membership of the smallest district assemblies, which were for the most part located in small cities, remained stationary and, outside of the national and district trade assemblies which were formed by separation from mixed district assemblies, thirty-seven new district assemblies were formed, also mostly in rural localities. In addition, state assemblies were added in Alabama, Florida, Georgia, Indiana, Kansas, Mississippi, Nebraska, North Carolina, Ohio, West Virginia, and Wisconsin, with an average membership of about 2000 each.
It thus becomes clear that by the middle of 1887, the Great Upheaval of the unskilled and semi-skilled portions of the working class had already subsided beneath the strength of the combined employers and the unwieldiness of their own organization. After 1887 the Knights of Labor lost its hold upon the large cities with their wage-conscious and largely foreign population, and became an organization predominantly of country people, of mechanics, small merchants, and farmers,—a class of people which was more or less purely American and decidedly middle class in its philosophy.