In 1908 the situation of 1906 was repeated. This time the Illinois operators refused to attend the Interstate conference on the ground that the Interstate agreement severely handicapped Illinois. As said before, ever since 1897 payment in Illinois has been upon the run-of-mine basis; whereas in all other States of the central competitive field the miners were paid for screened coal only. With the operators of each State having one vote in the joint conference, it can be understood why the handicap against Illinois continued. Theoretically, of course, the Illinois operators might have voted against the acceptance of any agreement which gave an advantage to other States; however, against this weighed the fact that the union was strongest in Illinois. The Illinois operators, hence, preferred to deal separately with the United Mine Workers. Accordingly, an Interstate agreement was drawn up, applying only to Indiana, Ohio, and Pennsylvania.

In 1910, the Illinois operators again refused to enter the Interstate conference, but this time the United Mine Workers insisted upon a return to the Interstate agreement system of 1898. On April 1, 1910, operations were suspended throughout the central competitive field. By July agreements had been secured in every State save Illinois, the latter State holding out until September. This long struggle in Illinois was the first real test of strength between the operators and the miners since 1897. The miners' victory made it inevitable that the Illinois operators should eventually reenter the Interstate conference.

In 1912, after repeated conferences, the net result was the restoration of the Interstate agreement as it existed before 1906. The special burden of which the Illinois operators had been complaining was not removed; yet they were compelled by the union to remain a party to the Interstate agreement. The union justified its special treatment of the operators in Illinois on the ground that the run-of-mine rates were 40 percent below the screened coal rates, thus compensating them amply for the "slack" for which they had to pay under this system. The Federal report on "Restriction of Output" of 1904 substantiated the union's contention. Ultimately, the United Mine Workers unquestionably hoped to establish the run-of-mine system throughout the central competitive field.

The union, incidentally to its policy of protecting the miners, has considerably affected the market or business structure of the industry. An outstanding policy of the union has been to equalize competitive costs over the entire area of a market by means of a system of grading tonnage rates paid to the miner, whereby competitive advantages of location, thickness of vein, and the like were absorbed in higher labor costs. This doubtless tended to eliminate cut-throat competition and thus stabilize the industry. On the other hand, it may have hindered the process of elimination of unprofitable mines, and therefore may be in some measure responsible for the present-day overdevelopment in the bituminous mining industry, which results in periodic unemployment and in idle mines.

In the anthracite coal field in Eastern Pennsylvania the difficulties met by the United Mine Workers were at first far greater than in the bituminous branch of the industry. First, the working population was nearly all foreign-speaking, and the union thus lacked the fulcrum which it found in Illinois with its large proportion of English-speaking miners accustomed to organization and to carrying on a common purpose. Secondly, the employers, instead of being numerous and united only for joint dealing with labor, as in bituminous mining, were few in number besides being cemented together by a common selling policy on top of a common labor policy. In consequence, the union encountered a stone wall of opposition, which its loose ranks found for many years well-nigh impossible to overcome.

During the general strike of 1897 the United Mine Workers made a beginning in organizing the anthracite miners. In September 1900, they called a general strike. Although at that time the union had only 8000 members in this region, the strike order was obeyed by over 100,000 miners; and within a few weeks the strike became truly general. Probably the union could not have won if it had to rely solely on economic strength. However, the impending Presidential election led to an interference by Senator Mark Hanna, President McKinley's campaign manager. Through him President John Mitchell of the United Mine Workers was informed that the operators would abolish the objectionable sliding scale system of wage payments, increase rates 10 percent and agree to meet committees of their employes for the adjustment of grievances. This, however, did not carry a formal recognition of the union; it was not a trade agreement but merely an unwritten understanding. A part of the same understanding was that the terms which had been agreed upon should remain in force until April, 1901. At its expiration the identical terms were renewed for another year, while the negotiations bore the same informal character.

During 1902 the essential instability of the arrangement led to sharp friction. The miners claimed that many operators violated the unwritten agreement. The operators, on their part, charged that the union was using every means for practically enforcing the closed shop, which was not granted in the understanding. In the early months of 1902 the miners presented demands for a reduction of the hours of labor from 10 to 9, for a twenty percent increase in wages, for payment according to the weight of coal mined, and for the recognition of the union. The operators refused to negotiate, and on May 9 the famous anthracite strike of 1902 began.

It is unnecessary to detail the events of the anthracite strike. No other strike is better known and remembered. More than 150,000 miners stood out for approximately five months. The strike was financed by a levy of one dollar per week upon all employed miners in the country, which yielded over $2,000,000. In addition several hundred thousand dollars came in from other trade unions and from the public generally. In October, when the country was facing a most serious coal famine, President Roosevelt took a hand. He called in the presidents of the anthracite railroads and the leading union officials for a conference in the White House and urged arbitration. At first he met with rebuff from the operators, but shortly afterward, with the aid of friendly pressure from New York financiers, the operators consented to accept the award of a commission to be appointed by himself. This was the well-known Anthracite Coal Strike Commission. Its appointment terminated the strike. Not until more than a half year later, however, was the award of the Commission made. It conceded the miners a 10 percent increase in wages, the eight and nine-hour day, and the privilege of having a union check-weighman at the scale where the coal sent up in cars by the miners is weighed. Recognition was not accorded the union, except that it was required to bear one-half of the expense connected with the maintenance of a joint arbitration board created by the Commission. When this award was announced there was much dissatisfaction with it among the miners. President Mitchell, however, put forth every effort to have the union accept the award. Upon a referendum vote the miners accepted his view.

The anthracite coal strike of 1902 was doubtless the most important single event in the history of American trade unionism until that time and has since scarcely been surpassed. To be sure, events like the great railway strike of 1877 and the Chicago Anarchist bomb and trial in 1886-1887 had equally forced the labor question into public attention. What distinguished the anthracite coal strike, however, was that for the first time a labor organization tied up for months a strategic industry and caused wide suffering and discomfort to the public without being condemned as a revolutionary menace to the existing social order calling for suppression by the government; it was, on the contrary, adjudged a force within the preserves of orderly society and entitled to public sympathy. The public identified the anthracite employers with the trust movement, which was then new and seemingly bent upon uprooting the traditional free American social order; by contrast, the striking miners appeared almost as champions of Old America. A strong contributory factor was the clumsy tactics of the employers who played into the hands of the leaders of the miners. The latter, especially John Mitchell, conducted their case with great skill.

Yet the award of the Commission fell considerably short of what the union and its sympathizers outside the ranks of labor hoped for. For by refusing to grant formal recognition, the Commission failed to constitute unionism into a publicly recognized agency in the management of industry and declared by implication that the role of unionism ended with a presentation of grievances and complaints.