1877 | Commerce
Commerce
Government regulation of U.S. business gains legal support from the Supreme Court March 1 in the case of Munn v. Illinois (see 1872). The landmark 7-to-2 decision sustains the state law of 1871 supervising grain elevators. Chief Justice Waite bases his majority opinion on a 17th century English decision; he holds that community rights are as sacred as the rights of business interests and that legislators can regulate in a matter "affected with the public interest"; six other justices concur, so while a dissenting judge calls the decision "subversive of the rights of private property," the Munn ruling lays the basis for all subsequent regulation of U.S. business by government. The New York Herald says, "Either the people would govern the railroads, or the railroads would govern the people. The Supreme Court has come to the rescue" (but see 1890).
U.S. railroad workers begin strikes February 12 to protest wage cuts. The New York Central, Erie, Pennsylvania, and Baltimore & Ohio call off a long-standing rate war in April and announce a 10 percent wage cut. The B. & O. announces a further 10 percent wage cut in mid-July. Its workers begin a strike at Martinsburg, West Virginia, and they are soon joined by Pennsylvania Railroad workers. Strikers set the Pittsburgh roundhouse ablaze, and the strike spreads across the nation, the railroads shut down for a week, and the strike does not end until federal troops fire on the workers July 24, killing some, wounding many (both sides claim victory) in the first use of federal troops to combat strikers. Riots spread across the country, more federal troops are called in to suppress them, and Chicago police join with units that have recently returned from an Indian massacre. They open fire July 26 at the corner of 16th and Halsted streets in what will be remembered as "the Battle of the Viaduct," killing 30 workers and wounding more than 100. The Atchison, Topeka and Santa Fe reduces wages 5 percent August 1 and slashes conductors' salaries from a top of $120 per month to $75. The conductors strike but soon return to work at lower pay (see 1878).
A long strike of U.S. anthracite coal workers ends August 15 with a 10 percent wage increase. The "Molly Maguires" make headlines after a decade of activity in Pennsylvania mining towns by the secret Irish-American Philadelphia terrorist society. They have been apprehended through the efforts of Pinkerton detective James McParland, 35, Irish-born himself, who 5 years ago infiltrated the fraternal Ancient Order of Hibernians, some of whose lodges have been under Molly Maguire control. Ten members of the terrorist society are hanged June 21 in the yard of the Schuylkill County jail at Pottsville, and 10 more will be hanged in the next 2 years, all through testimony given by McParland, who will later become head of Pinkerton's Denver branch and be involved in suppressing activities of the Western Federation of Miners in Idaho (see Haywood, 1907).
India's Tata industrial empire has its beginnings in a cotton mill founded at his native Navsari by Persian-born entrepreneur Jamsetji Nasarwanji Tata, 38, who has worked for his father's export trading company since 1858 and will go on to open mills at Bombay (Mumbai) and Coorla, establishing a reputation for efficiency, quality, and protection of workers (see 1903).
Chase National Bank is founded September 12 by New York banker John Thompson, now 75, who founded First National Bank in 1863 but sold his controlling interest in that institution 4 years ago. The new bank opens offices at 104 Broadway, taking its name from the late chief justice of the U.S. Supreme Court, Salmon P. Chase, who originated the national banking system in 1863 but died at New York 4 years ago (see Chase Manhattan, 1955).
Congress adjourns without appropriating funds for military pay. New York banker J. Pierpont Morgan of Drexel, Morgan (see 1871) offers to cover the $550,000-per-month payroll and set up a disbursement system; he raises the necessary money by joining with August Belmont and the Rothschild family to float a $200 million 4 percent bond issue, thereby saving the government from embarrassment.
Singer Manufacturing Company cuts sewing machine prices in half as the U.S. economic recession continues (see 1863). The move will increase sales enormously (see 1880).