The Bill introduced by Cobbett never became law; but a vigorous agitation kept the matter under the notice of Parliament, and in 1866 a Select Committee was appointed to inquire into the subject. Upon its report Lord Elcho[389] succeeded, in 1867, in carrying through Parliament a Bill which remedied the grossest injustice of the law. The Master and Servant Act of 1867 (30 & 31 Vic. c. 141), the first positive success of the Trade Unions in the legislative field, did much to increase their confidence in Parliamentary agitation.

But whilst the Junta and their allies were, by the capture of the Trades Councils, using the Trade Union organisation for an active political campaign, their steady discouragement of aggressive strikes was bringing down upon them the wrath of the “Old Unionists” of the time. It was one of the principal functions of the London Trades Council to grant “credentials” to trade societies having disputes on hand, recommending them for the support of workmen in other trades. As these credentials were not confined to London disputes, the custom placed the Council under the invidious necessity of either giving its sanction to, or withholding approval from, practically every important strike in the kingdom—an arrangement which quickly brought the Council into conflict with the more aggressive societies. In two cases especially the divergence of policy raised serious and heated discussions. A building trades strike had broken out in the Midlands at the beginning of 1864, initiated by the old Friendly Society (now styled the General Union) of Operative Carpenters. The men’s action was strongly disapproved by Applegarth and the Executive of the Amalgamated Society of Carpenters. The London Trades Council unhesitatingly took Applegarth’s view, thereby alienating whole sections of the building trades, whose local trade clubs and provincial societies had retained much of the spirit of the Builders’ Union of 1834. But the internal dissension arising from the carpenters’ dispute fell far short of that brought about by the strike of the Staffordshire puddlers. It is unnecessary to go into the details of this angry struggle against a 10 per cent reduction. The conduct of the men in refusing the arbitration offered by the Earl of Lichfield met with the disapproval of the London Trades Council. The hotter spirits were greatly incensed at the Council’s moderation. George Potter, in particular, distinguished himself by addressing excited meetings of the men on strike, advising them to stand firm.

Potter, who figures largely in the newspapers of this time, was in fact endeavouring to work up a formidable opposition to the policy of the Junta. After the building trades disputes of 1859-60, in which he had taken a leading part, he had started the Beehive, a weekly organ of the Trade Union world. Himself a member of a tiny trade club of London carpenters, he was bitterly opposed to Applegarth and the Amalgamated Society, and from 1864 onward we find him at the head of every outbreak of disaffection. An expert in the arts of agitation and of advertisement, Potter occasionally cut a remarkable figure, so that the unwary reader, not of the Beehive only, but also of the Times, might easily believe him to have been the most influential leader of the working-class movement. As a matter of fact, he at no time represented any genuine trade organisation, the “Working Men’s Association,” of which he was president, being an unimportant society of nondescript persons. However, from 1864 to 1867 we find him calling frequent meetings of delegates of the London trades to denounce the Junta, and their instrument, the London Trades Council. The minutes of the latter body contain abundant evidence of the bitter feelings caused by these attacks, and make clear the essential difference between the two policies. At a special meeting called to condemn Potter’s action, Howell, Allan, Coulson, and Applegarth enlarged upon the evil consequences of irresponsible agitation in trade disputes; and Danter, the outspoken president of the Amalgamated Engineers, emphatically declared that Potter “had become the aider and abettor of strikes. He thought of nothing else; he followed no other business; strikes were his bread-and-cheese; in short, he was a strike-jobber, and he made the Beehive newspaper his instrument for pushing his nose into every unfortunate dispute that sprang up.” [390]

Responsible and cautious leadership of the Trade Union Movement was becoming increasingly necessary. The growth of the great national Unions, alike in wealth and in membership, and the manner in which they subscribed in aid of each other’s battles, had aroused the active enmity of the employers. To counteract the men’s renewed strength, the employers once more banded themselves into powerful associations, and made use of a new weapon. The old expedient of the “document” had, since its failure to break down the Amalgamated Engineers in 1852, and to subdue the building operatives in 1859, fallen somewhat into discredit. It was now reinforced by the general “lock-out” of all the men in a particular industry, even those who accepted the employer’s terms, in order to reduce to subjection the recalcitrant employees of one or two firms only.[391] The South Yorkshire coal-owners especially distinguished themselves during those years by their frequent use of the “lock-out.” One Yorkshire miner complained in 1866 that he had been “locked out about twenty-four months in six years.”[392] During the year 1865 it seemed as if the lock-outs were about to become a feature of every large industry, the most notable instances being those of the Staffordshire ironworkers, to which we have already alluded, and the shipbuilding operatives on the Clyde. In both these cases large sections of the men were willing to work at the employers’ terms, but were either known to belong to a Union or suspected of contributing to the men on strike. But though this practice of “locking out” created great excitement among working men, it did not achieve the employers’ aim of breaking up the Unions. Nothing but absolute suppression by law appeared open to those who regarded trade combinations as “a poisonous plant” and an “anomalous anachronism,” and who were vainly looking to “the happy period,” both for masters and men, when the questions, “What is the price of a quarter of wheat?” and “What is the price of a workman’s day wage?” shall be settled on the same principles. [393]

Nor were the employers the only people who began to talk once more of putting down Trade Unions by law. The industrial dislocation which the lock-outs, far more than the strikes, produced occasioned widespread loss and public inconvenience. The quarrels of employer and employed came to be vaguely regarded as matters of more than private concern. Unfortunately a handle was given to the enemies of Trade Unionism by the continuance of outrages, committed in the interest of Trade Unions, which began to be widely advertised by the press. Isolated cases of violence and intimidation, restricted, as we shall hereafter see, to certain trades and localities, were magnified by press rumours into a systematic attempt on the part of the Trade Unions generally to obtain their ends by deliberate physical violence. In the general fear and disapproval the public failed to discriminate between the petty trade clubs of Sheffield and such great associations as the Amalgamated Engineers and Carpenters. The commercial objection to industrial disputes became confused with the feeling of abhorrence created by the idea of vast combinations of men sticking at neither violence nor murder to achieve their ends. The “terrorism of Trade Unions” became a nightmare. “On one side,” says a writer who represents the public feeling of the time, “is arrayed the great mass of the talent, knowledge, virtue, and wealth of the country, and, on the other, a number of unscrupulous men, leading a half-idle life, and feeding on the contributions of their dupes, and on a tax levied on such of the intelligent artisans as are forced into their ranks, but who would be only too happy to throw off their thraldom and join the supporters of law and justice, did these but offer them adequate protection.” [394]

The Trade Unions world seems to have been quite unconscious of the gathering storm. In June 1866 138 delegates, representing all the great Unions, and a total membership of about 200,000, met at Sheffield to devise some defence against the constant use of the lock-out. The student of the proceedings of this conference will contrast with wonder the actual conduct of the Trade Union leaders with the denunciations to which these “few unscrupulous men” were at this time exposed. Nothing could be more worthy, even from the middle-class point of view, than the discussions of these representative workmen, who denounced with equal energy the readiness with which their impetuous followers came out on strike and the arbitrary lock-out of the masters, and whose resolutions express their desire for the establishment of Councils of Conciliation and the general resort to arbitration in industrial disputes.[395] Meanwhile, in order to meet the great federations of employers, they formed “The United Kingdom Alliance of Organised Trades,” to support the members of any trade who should find themselves “locked out” by their employers.[396] Unfortunately the conference utterly failed to decide what constituted a “lock-out,” as distinguished from a strike; and the “Judicial Council” of the Alliance, consisting of one delegate from each of the nine districts into which the kingdom was divided, found itself continually at issue with its constituents as to the disputes to be supported. This friction co-operated with the increasing depression of trade in causing the calls for funds to be very unwillingly responded to; and the Executive Committee, sitting at Sheffield, had seldom any cash at its command. The Alliance lingered on until about the end of 1870, when the defection of its last important Unions brought it absolutely to an end.[397] In 1866, however, the Alliance was young and hopeful. It received its first blow in October of this year, when it and the Trade Union Conference were forgotten in the sensation produced by the explosion of a can of gunpowder in a workman’s house in New Hereford Street, Sheffield.

This outrage was only one of a class of crimes for which Sheffield was already notorious. But in the state of public irritation against Trade Unionism, which had been growing during the past few years of lock-outs and strikes, the news served to precipitate events. On all sides there arose a cry for a searching investigation into Trade Unionism. The Trade Unions themselves joined in the demand. As no clue to the perpetrators of the last crime could be discovered by the local police, the leaders of the Sheffield trade clubs united with the Town Council and the local Employers’ Association in pressing for a Government inquiry. The London Trades Council and the Executive of the Amalgamated Engineers sent a joint deputation to Sheffield to investigate the case. The deputation discovered no more than the local police had done about the perpetrators of the crime, and therefore innocently reported that there was no evidence of Trade Union complicity; but they accompanied this report by a strong condemnation of “the abominable practice of rattening, which is calculated to demoralise those who are concerned in it, and to bring disgrace on all trade combinations.”[398] Public meetings of Trade Unionists were held throughout the country, at which the leaders expressed their indignation both at the outrage itself and at the common assumption that it was a usual and necessary incident of Trade Unionism. These meetings invariably concluded with a demand on behalf of the Trade Unionists to be allowed an opportunity of refuting the accusations of the enemies of the movement. Robert Applegarth saw the Home Secretary on the subject, and suggested a Commission of Inquiry. The appointment of a Royal Commission of Inquiry was officially announced in the Queen’s Speech of February 1867. That the Government meant business was proved by the prompt introduction of a Bill empowering the Commission to pursue its investigations by exceptional means. The inquiry was to extend to all outrages during the past ten years, whether in Sheffield or elsewhere. Not only were accomplices in criminal acts promised an indemnity, provided that they gave evidence, but the same privilege was extended to the actual perpetrators of the crimes. The investigation, moreover, was not restricted to the supposed criminal practices of particular trade clubs, but was to embrace the whole subject of Trade Unionism and its effects.

The Trade Union movement thus found itself for the third time at the bar of a Parliamentary inquiry at a moment when public opinion, as well as the enmity of employers, had been strongly excited against it. At the very height of this crisis, which had been brought about by the violence of some of the old-fashioned Unions, the new Amalgamated Societies themselves received a serious check from a decision of the Court of Queen’s Bench.

The formation of the Amalgamated Society of Engineers, with its large accumulated funds, had renewed the anxiety of the Trade Union officials as to the extent to which a trade society enjoyed the protection of the law. Although the Act of 1825 had made trade societies, as such, no longer unlawful, nothing had been done to give them any legal status, or to enable them to take proceedings as corporate entities. But in 1855 a “Metropolitan Trades Committee” succeeded in getting a clause intended to relate to Trade Unions inserted in the Friendly Societies Act of that year. By the 44th section of this Act it was provided that a society established for any purpose not illegal might, by depositing its rules with the Registrar of Friendly Societies, enjoy the privilege of having disputes among its own members summarily dealt with by the magistrates. Under this provision several of the larger societies had deposited their rules, believing, with the concurrence of the Registrar, that this secured to them the power to proceed summarily against any member who should, in his capacity of secretary or treasurer, detain or make away with the society’s funds.[399] So thoroughly has the legality of their position been accepted by all concerned, that on the establishment by Gladstone of the Post Office Savings Banks in 1861, he had, at the request of the Trade Union leaders, expressly conceded to the Unions, equally with the Friendly Societies, the privilege of making use of the new banks.

This feeling of security was, in 1867, completely shattered. The Boilermakers’ Society had occasion to proceed against the treasurer of their Bradford branch for wrongfully withholding the sum of £24; but the magistrates, to the general surprise of all concerned, held that the society could not proceed under the Friendly Societies Act, being, as a Trade Union, outside the scope of that measure. The case was thereupon carried to the Court of Queen’s Bench, where four judges, headed by the Lord Chief Justice, confirmed the decision, giving the additional reason that the objects of the Union, if not, since 1825, actually criminal, were yet so far in restraint of trade as to render the society an illegal association. Thus the officers of the great national Trade Unions found their societies deprived of the legal status which they imagined they had acquired, and saw themselves once more destitute of any legal protection for their accumulated funds.