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A History of Trade Unionism in the United States by Selig Perlman
page 70 of 291 (24%)
other "Founders."[14]

These idealistic "First Principles" found an ardent champion in Terence
V. Powderly, a machinist by trade and twice mayor of Scranton,
Pennsylvania, on a labor ticket, who succeeded Stephens in 1878 to the
headship of the Order. Powderly bore unmistakably the stamp of this sort
of idealism throughout all the time when he was the foremost labor
leader in the country. Unlike Samuel Gompers, who came to supplant him
about 1890, he was foreign to that spirit of combative unionism which
accepts the wage system but concentrates on a struggle to wrest
concessions from the employers. Even when circumstances which were
largely beyond his control made Powderly a strike leader on a huge
scale, his heart lay elsewhere--in circumventing the wage system by
opening to the worker an escape into self-employment through
cooperation.

Producers' cooperation, then, was the ambitious program by which the
Order of the Knights of Labor expected to lead the American wage-earning
class out of the bondage of the wage system into the Canaan of
self-employment. Thus the Order was the true successor of the
cooperative movement in the forties and sixties. Its motto was
"Cooperation of the Order, by the Order, and for the Order." Not
scattered local initiative, but the Order as a whole was to carry on the
work. The plan resembled the Rochdale system of England in that it
proposed to start with an organization of consumers--the large and
ever-growing membership of the Order. But it departed radically from the
English prototype in that instead of setting out to save money for the
consumer, it primarily aimed to create a market for the productive
establishments which were to follow. Consumers' cooperation was to be
but a stepping stone to producers' self-employment. Eventually when the
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