Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
In 1877 occurred the first of the great labor struggles in that long
series of campaigns which have marked the relations of capitalists and
workingmen during the past four decades. In that year, trouble began
between the management of the Baltimore and Ohio railway and its
employees over a threatened reduction in wages--the fourth within a
period of seven years. From this starting point the contest spread
throughout the East and Middle West, reaching as far as Texas. Inasmuch
as there was already considerable unemployment, the strikers saw that
only by violence and intimidation could they hope to prevent the
companies from moving their trains. Troops were called out by the
governors of several states and Federal assistance was invoked.
Pittsburgh fell almost completely into the hands of the strikers;
railway buildings were burned and property to the value of more than ten
million dollars destroyed. Everywhere the raw militia of the states was
found to be inefficient for such a serious purpose, and the superior
power of the Federal Government's regular troops was demonstrated. Where
railways were in the hands of receivers, Federal courts intervened by
the use of injunctions and the first blood in the contest between the
judiciary and labor was drawn.
The last, but perhaps most significant, result of the industrial
revolution above described has been the rise of enormous combinations
and corporations in industry as well as in transportation. An increasing
proportion of the business of the country has passed steadily into
corporate, as contrasted with individual, ownership;[10] and this
implies a momentous change in the rights, responsibilities, and economic
theories of the owners of capital. Moreover, it involves the creation of
a new class of men, not entrepreneurs in the old sense, but organizers
of already established concerns into larger units.
The industrial revolution had not advanced very far before an intense
competition began to force business men to combine to protect themselves
against their own weapons. As early as 1879 certain oil interests of
Cleveland, Pittsburgh, Philadelphia, and other centers had begun to
control competition by making agreements through their officers. Three
years later, they devised an excellent scheme for a closer organization
in the formation of a "trust." They placed all their stocks in the hands
of nine trustees, including John D. Rockefeller, who issued in return
certificates representing the proportionate share of each holder in the
concern, and managed the entire business in the interests of the
holders.
Public-domain text, read in full here on John Shaqi.
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