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This Month in Business History

The Start of the Great Railroad Strike of 1877

several small drawing with Scenes and incidents at the principal points of the labor insurrection including the first attack by Chicago police on the mob; the ruins of the round-house and carshops at Pittsburgh; Rioters tearing up rails of bridge at Corning, NY; rioters marching down train track at West Albany, NY; Construction gang repairing tracks at Corning, under protection of soldiers; a mob threatening members of soldiers at Delevan House in Albany; soldiers taking possession of West Albany freight yards, and group being protected by militia, Corning.
Frank Leslie's Illustrated Newspaper. The great railroad strike of July 1877. August 11, 1877. Library of Congress Prints and Photographs Division.

The Great Railroad Strike of 1877 was the first multi-state strike in the United States. It centered around the Baltimore & Ohio Railroad (B&O) and was primarily focused on West Virginia, Maryland, Pennsylvania, and New York, though it also spread to Missouri and Illinois.

The roots of the strike can be found in the years after the Civil War when railroad building and banking boomed. Those years also saw a series of industry troubles and economic instability that damaged the economy leading to high unemployment and many business failures. Many railroads went bankrupt or struggled to survive.

In 1872, the Crédit Mobilier scandal broke negatively impacting the railroad securities market. A number of railroads went bankrupt, and, soon after, trouble spread to the banks. In September 1873, Jay Cooke’s bank Jay Cooke & Company, could not sell Northern Pacific Railway bonds and their credit crashed; they were forced to declare bankruptcy. Then came the Panic of 1873 that kicked off the Long Depression, many banks, railroads, and insurance companies failed. Many business failed and many factory workers were laid off. The events of 1872-1873 had an impact on the economy that lasted for years.

In 1877, the Baltimore & Ohio Railroad (B&O), along with many other railroads, was dealing with issues that threatened the company. After several wage cuts, in July 1877, B&O President John W. Garrett, cut wages again. Workers, who had organized into labor unions, resisted, although their efforts were hindered by lack of organization and more widespread union cohesion.

The strike kicked off on July 14 in Martinsburg, West Virginia then moved to Maryland, Pennsylvania, and New York as word spread among the employees down the line. To restore order, governors called up troops, and President Rutherford B. Hayes issued a series of proclamations for West Virginia (on July 18), Maryland (on July 21), and Pennsylvania (on July 23) to help the governors clear crowds and keep the trains running. Cities like Baltimore and Pittsburgh saw some of the worst of the striking and violence. In Pittsburgh, where events referred to as the Pittsburgh Railroad Strike of 1877, the official death toll was recorded as 26 but was likely more.1 The striking and the violence weren’t limited to the big cities and included places like Reading, Pennsylvania where at least ten were killed and was referred to as the Reading Railroad Massacre.2

By September 1877, the efforts of the state governments and federal troops were more cohesive and essentially strangled the strike. The strikes themselves were more of a spontaneous uprising and less of an organized resistance that could stand against concerted government and corporate efforts. There was essentially no leadership to rally the workers when the initial furor died down and the strike lost momentum. Many strikers and sympathizers were jailed and companies continued their efforts to break the unions. Wage cuts--which were the initial cause of the strike--were not rolled back, though over time companies did raise wages. Strikers got no immediate concessions and there was no meaningful government action to support workers. Little changed for the strikers and the strike was almost forgotten, but the cost to suppress the strike combined with the loss of revenue left an impact on the railroads, governments, and companies.

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Notes

  1. Pennsylvania Historical and Museum Commission, "Railroad Strike of 1877 Historical Marker." https://explorepahistory.com/hmarker.php%3FmarkerId=1-A-1C1.html External (accessed May 8, 2025).Back to text
  2. Berks History Center, Reading’s Place in The Great Strike & After Ten Died in what today is remembered as a massacre, Historical Review of Berks County, Fall 2000. https://berkshistory.org/article/readings-place-in-the-great-strike-after-ten-died-in-what-today-is-remembered-as-a-massacre/ External.Back to text