Presidents and Labor: Rutherford Hayes and the Great Railroad Strike of 1877
In his first year in office, Rutherford Hayes faced what was, up to that time, the United States' largest labor disturbance in its history. It was known as the Great Railroad Strike of 1877. The nation had been in a recession since the financial Panic of 1873. The financial down turn lasted for 65 months, outlasting even the Great Depression of the 1930s. The failure of the Jay Cooke bank in New York, was followed quickly by a chain reaction of other bank failures, temporarily closing the New York stock market. Unemployment rose dramatically, reaching 14 percent by 1876. Overall, wages dropped to 45% of their previous level and thousands of American businesses failed, defaulting on more than a billion dollars of debt. As a result, the construction of new rail lines dropped from 7,500 miles of track in 1872 to just 1,600 miles in 1875. This in turn decreased the demand for production or iron and steel and demand in those industries also dropped by about 45%.
When the Civil War ended, a boom in railroad construction had resulted, with about 35,000 miles of new track being laid from coast-to-coast by 1873. Railroads were the second largest employer, next to agriculture. They required large amounts of capital investment. Jay Cooke's banking group invested a disproportionate share of depositors' funds in the railroads. When the railroad industry collapsed, the bank failed.
The Panic of 1873 led to antagonism between railroad workers and their employers. Immigration from Europe was underway, as was migration of rural workers into the cities, increasing competition for jobs. This allowed railroads to drive down wages, lay off workers, and impose unreasonable working conditions. By 1877, the wage cuts and poor working conditions led to workers conducting numerous railroad strikes that prevented the trains from moving. Employers used violent strike breakers to deal with this job action, as workers continued to organize to try to improve their conditions. Management also had the support of the Catholic Church, who equated labor organizing with socialism. Many of the new immigrant workers were Catholics, and the church opposed their participation in secret societies, in part due to the anti-Catholicism of Freemasonry.
In order to make up for financial losses suffered since the panic of 1873, the major railroads cut their employees' wages several times in 1877. In July of that year, workers from the Baltimore & Ohio Railroad walked off the job in Martinsburg, West Virginia, to protest their reduction in pay. The strike spread quickly to railroad workers of the New York Central, Erie, and Pennsylvania railroads, with the strikers soon numbering in the thousands.
West Virginia Governor Henry M. Mathews was concerned about rioting and strike violence, so he asked President Hayes to send federal troops to Martinsburg. Hayes did so, but when the troops arrived there was no riot, only a peaceful protest. However a riot took place in Baltimore on July 20. The Maryland National Guard was called in and in the fighting they killed 10 civilians and wounded another 25. The rioters injured several members of the militia, damaged engines and train cars, and burned portions of the train station at South Howard and West Camden Streets. The national guardsmen were trapped in the surrounding Camden Yards, besieged by armed rioters. They remained there until July 21, when President Hayes sent federal troops and the U.S. Marines to Baltimore to restore order.
Next, Pittsburgh next exploded into riots on July 21 and 22. Hayes was reluctant to send in troops without the governor first requesting them. Other citizens joined the railroad workers in rioting. Finally Hayes send in troops to protect federal property. He gave Major General Winfield Scott Hancock overall command of the situation. This was the first time federal troops were used to break a strike against a private company.
The riot spread further, to Chicago and St. Louis, where strikers shut down railroad facilities. There was also rioting elsewhere in Pennsylvania, in Reading, Scranton, Shamokin and Philadelphia. The US Army assisted local militia in quelling the riots. By July 29, the riots had ended and federal troops returned to their barracks. Although no federal troops had killed any of the strikers, or been killed themselves, persons were killed in clashes between state militia troops and strikers.
The railroads declared victory as workers returned to their jobs with some of the wage cuts remaining in effect. But, the railroads lost the battle on the public relations front as people blamed them for the strikes and violence. Public pressure compelled railroad companies to improve working conditions and cease wage cuts.
Business leaders praised Hayes, but he himself did not see it as a victory. In his diary he recorded the following entry:
"The strikes have been put down by force; but now for the real remedy. Can't something be done by education of strikers, by judicious control of capitalists, by wise general policy to end or diminish the evil? The railroad strikers, as a rule, are good men, sober, intelligent, and industrious."
When the Civil War ended, a boom in railroad construction had resulted, with about 35,000 miles of new track being laid from coast-to-coast by 1873. Railroads were the second largest employer, next to agriculture. They required large amounts of capital investment. Jay Cooke's banking group invested a disproportionate share of depositors' funds in the railroads. When the railroad industry collapsed, the bank failed.
The Panic of 1873 led to antagonism between railroad workers and their employers. Immigration from Europe was underway, as was migration of rural workers into the cities, increasing competition for jobs. This allowed railroads to drive down wages, lay off workers, and impose unreasonable working conditions. By 1877, the wage cuts and poor working conditions led to workers conducting numerous railroad strikes that prevented the trains from moving. Employers used violent strike breakers to deal with this job action, as workers continued to organize to try to improve their conditions. Management also had the support of the Catholic Church, who equated labor organizing with socialism. Many of the new immigrant workers were Catholics, and the church opposed their participation in secret societies, in part due to the anti-Catholicism of Freemasonry.
In order to make up for financial losses suffered since the panic of 1873, the major railroads cut their employees' wages several times in 1877. In July of that year, workers from the Baltimore & Ohio Railroad walked off the job in Martinsburg, West Virginia, to protest their reduction in pay. The strike spread quickly to railroad workers of the New York Central, Erie, and Pennsylvania railroads, with the strikers soon numbering in the thousands.
West Virginia Governor Henry M. Mathews was concerned about rioting and strike violence, so he asked President Hayes to send federal troops to Martinsburg. Hayes did so, but when the troops arrived there was no riot, only a peaceful protest. However a riot took place in Baltimore on July 20. The Maryland National Guard was called in and in the fighting they killed 10 civilians and wounded another 25. The rioters injured several members of the militia, damaged engines and train cars, and burned portions of the train station at South Howard and West Camden Streets. The national guardsmen were trapped in the surrounding Camden Yards, besieged by armed rioters. They remained there until July 21, when President Hayes sent federal troops and the U.S. Marines to Baltimore to restore order.
Next, Pittsburgh next exploded into riots on July 21 and 22. Hayes was reluctant to send in troops without the governor first requesting them. Other citizens joined the railroad workers in rioting. Finally Hayes send in troops to protect federal property. He gave Major General Winfield Scott Hancock overall command of the situation. This was the first time federal troops were used to break a strike against a private company.
The riot spread further, to Chicago and St. Louis, where strikers shut down railroad facilities. There was also rioting elsewhere in Pennsylvania, in Reading, Scranton, Shamokin and Philadelphia. The US Army assisted local militia in quelling the riots. By July 29, the riots had ended and federal troops returned to their barracks. Although no federal troops had killed any of the strikers, or been killed themselves, persons were killed in clashes between state militia troops and strikers.
The railroads declared victory as workers returned to their jobs with some of the wage cuts remaining in effect. But, the railroads lost the battle on the public relations front as people blamed them for the strikes and violence. Public pressure compelled railroad companies to improve working conditions and cease wage cuts.
Business leaders praised Hayes, but he himself did not see it as a victory. In his diary he recorded the following entry:
"The strikes have been put down by force; but now for the real remedy. Can't something be done by education of strikers, by judicious control of capitalists, by wise general policy to end or diminish the evil? The railroad strikers, as a rule, are good men, sober, intelligent, and industrious."