This section is from the book "Elementary Economics", by Charles Manfred Thompson. Also available from Amazon: Elementary Economics.
The unions which we have just noticed are organized according to trades; that is, the carpenters, the plumbers, the bricklayers, and others, have each their own organization. In 1869, however, a Philadelphia tailor, U. S. Stevens, projected an entirely different kind of organization, known as the Knights of Labor, in which trade distinctions should not appear. Membership at first was restricted to garment workers, but later it was thrown open to all except bankers, lawyers, professional gamblers, and employees in the manufacture or sale of intoxicating liquors. Membership in a trade union was no bar to becoming a "Knight." Thus, the two types of organization grew side by side without organic connections. The aims of the Knights of Labor were to secure better conditions for its members through participation in politics rather than by the strike or boycott. The slogan of the organization was, "An injury to one is the concern of all." Thousands of "lodges" scattered throughout the country were the local units. These were closely supervised by the national officers. Thus, the organization was highly centralized - that is, the local lodges had little autonomy. In other words, authority came from the top.
 
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