It was near the end of January, 1913, that the changed attitude of the Oligarchy toward the favored unions was made public. The newspapers published information of an unprecedented rise in wages and shortening of hours for the railroad employees, the iron and steel workers, and the engineers and machinists. But the whole truth was not told. The oligarchs did not dare permit the telling of the whole truth. In reality, the wages had been raised much higher, and the privileges were correspondingly greater. All this was secret, but secrets will out. Members of the favored unions told their wives, and the wives gossiped, and soon all the labor world knew what had happened.

It was merely the logical development of what in the nineteenth century had been known as grab-sharing. In the industrial warfare of that time, profit-sharing had been tried. That is, the capitalists had striven to placate the workers by interesting them financially in their work. But profit-sharing, as a system, was ridiculous and impossible. Profit-sharing could be successful only in isolated cases in the midst of a system of industrial strife; for if all labor and all capital shared profits, the same conditions would obtain as did obtain when there was no profit-sharing.

So, out of the unpractical idea of profit-sharing, arose the practical idea of grab-sharing. “Give us more pay and charge it to the public,” was the slogan of the strong unions.88 And here and there this selfish policy worked successfully. In charging it to the public, it was charged to the great mass of unorganized labor and of weakly organized labor. These workers actually paid the increased wages of their stronger brothers who were members of unions that were labor monopolies. This idea, as I say, was merely carried to its logical conclusion, on a large scale, by the combination of the oligarchs and the favored unions.

88 All the railroad unions entered into this combination with the oligarchs, and it is of interest to note that the first definite application of the policy of profit-grabbing was made by a railroad union in the nineteenth century A.D., namely, the Brotherhood of Locomotive Engineers. P. M. Arthur was for twenty years Grand Chief of the Brotherhood. After the strike on the Pennsylvania Railroad in 1877, he broached a scheme to have the Locomotive Engineers make terms with the railroads and to “go it alone” so far as the rest of the labor unions were concerned. This scheme was eminently successful. It was as successful as it was selfish, and out of it was coined the word “arthurization,” to denote grab-sharing on the part of labor unions. This word “arthurization” has long puzzled the etymologists, but its derivation, I hope, is now made clear.

As soon as the secret of the defection of the favored unions leaked out, there were rumblings and mutterings in the labor world. Next, the favored unions withdrew from the international organizations and broke off all affiliations. Then came trouble and violence. The members of the favored unions were branded as traitors, and in saloons and brothels, on the streets and at work, and, in fact, everywhere, they were assaulted by the comrades they had so treacherously deserted.

Countless heads were broken, and there were many killed. No member of the favored unions was safe. They gathered together in bands in order to go to work or to return from work. They walked always in the middle of the street. On the sidewalk they were liable to have their skulls crushed by bricks and cobblestones thrown from windows and house-tops. They were permitted to carry weapons, and the authorities aided them in every way. Their persecutors were sentenced to long terms in prison, where they were harshly treated; while no man, not a member of the favored unions, was permitted to carry weapons. Violation of this law was made a high misdemeanor and punished accordingly.

Outraged labor continued to wreak vengeance on the traitors. Caste lines formed automatically. The children of the traitors were persecuted by the children of the workers who had been betrayed, until it was impossible for the former to play on the streets or to attend the public schools. Also, the wives and families of the traitors were ostracized, while the corner groceryman who sold provisions to them was boycotted.

As a result, driven back upon themselves from every side, the traitors and their families became clannish. Finding it impossible to dwell in safety in the midst of the betrayed proletariat, they moved into new localities inhabited by themselves alone. In this they were favored by the oligarchs. Good dwellings, modern and sanitary, were built for them, surrounded by spacious yards, and separated here and there by parks and playgrounds. Their children attended schools especially built for them, and in these schools manual training and applied science were specialized upon. Thus, and unavoidably, at the very beginning, out of this segregation arose caste. The members of the favored unions became the aristocracy of labor. They were set apart from the rest of labor. They were better housed, better clothed, better fed, better treated. They were grab-sharing with a vengeance.

In the meantime, the rest of the working class was more harshly treated. Many little privileges were taken away from it, while its wages and its standard of living steadily sank down. Incidentally, its public schools deteriorated, and education slowly ceased to be compulsory. The increase in the younger generation of children who could not read nor write was perilous.

The capture of the world-market by the United States had disrupted the rest of the world. Institutions and gover............