This usually worked although the 1873/74 incidents proved a foreshadowing of things to come. For railroads, the usual tactic to quell such unrest was simply firing and blacklisting any employee(s) involved. In every case, the walkouts were brief, lasting for only a week or two and never drawing the nation's attention. In addition, a series of events which had occurred a few years prior could be rightfully argued as its genesis between November, 1873 and July, 1874 workers struck along eighteen different railroads in response to a series of initial wage cuts. Cause And EffectĪlthough events along the B&O initiated the Great Railroad Strike of 1877, in essence it began slowly, taking on a life of its own over time. The Baltimore & Ohio (B&O) was particularly egregious by slicing pay up to 50%. Foner notes in his book, " The Great Labor Uprising Of 1877," railroads reduced workers' salary by an average of 21%-37% although food prices had declined only 5%. In response to plummeting revenue, railroads were quick to implement wage cuts although many continued to pay dividends.Īs Philip S. Stowell's book notes that the number of organized unions dropped had from 30 to 9 by the time the Great Railroad Strike of 1877 began. The event sparked one of America's worse depressions, a crisis which would endure for six years.Īs a result of the economic calamity, Mr. When this failed a run on the bank commenced and Cooke's firm, along with the railroad, entered bankruptcy on September 18, 1873. With the railroad struggling, the bank essentially wrote blank checks to further bond sales. These were marketed by Jay Cooke's banking firm, Jay Cooke & Company, throughout the U.S. Interstate Commerce Commission (February 4, 1887) At A Glanceīaltimore & Ohio Pennsylvania Railroad Lackawanna Iron & Coal Company Delaware, Lackawanna & Western Delaware & Hudson Erie Railway Lake Shore & Michigan Southern New York Central & Hudson River Railroad That year, the Northern Pacific Railway, attempting to complete the Pacific Northwest's first transcontinental railroad, was having considerable difficulty producing enough revenue to continue selling bonds. Unfortunately, this led to a house-of-cards scenario coupled with Congress's passage of the Coinage Act (American currency would no longer be backed with silver), the stage was set for the events of 1873. By contrast, only 6,000 miles were added in the four years after the economic downturn (1873-1877).Īs railroads blossomed into America's second-largest employer (trailing only the agricultural/farming industry), much of the new trackage was built on speculation thanks to cash availability and the strong economy. In addition, roughly 34,000 miles were spiked down in just an 8-year period, 1865 - 1873. This included the railroad industry which was rapidly expanding in the decade after the conflict by laying down more than 40,000 miles between 18 according to John Stover's book, " The Routledge Historical Atlas Of The American Railroads." At the time, the country was enjoying a great economic boom in the peacetime following the Civil War. Stowell, there were around 30 national and international trade unions operating within the United States just prior to the panic. To make matters worse the financial Panic of 1873 crippled the nation and put many Americans out of work.Īccording to the book, " The Great Strikes Of 1877" by David O. Life as a railroader in the 1870's was not an easy occupation filled with many dangers, few safety measures, and long hours. It also had a secondary effect of bringing about federal oversight and laws to protect employees. While the movement lasted less than a month, and ultimately ended in failure, it sparked a revolution which brought about today's modern unions. Due to its strategic location the move paralyzed B&O's operations.Īs freight trains sat idle employees of other railroads, realizing the strike's effectiveness, joined the cause even workers outside the industry, who had also been oppressed, walked off the job. DefinitionĪlong the Baltimore & Ohio this reached a boiling point believing they had no other recourse, workers at the railroad's shops and major division point of Martinsburg, West Virginia walked off the job on July 26, 1877. Unfortunately, in a time when blue collar employees enjoyed virtually no job protections, these measures made it all but impossible for workers to fight back. The proverbial straw that broke the camel's back was a 10% wage reduction, which had followed several others over the previous four years. The Great Railroad Strike of 1877 was an uprising launched in response to pay cuts enacted by the country's largest railroads following the financial Panic of 1873.
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