In 1892 the labor movement faced for the first time a really modern manufacturing corporation with its practically boundless resources of war, namely the Carnegie Steel Company, in the strike which has become famous under the name of the Homestead Strike.  The Amalgamated Association of Iron and Steel Workers, with a membership of 24,068 in 1891, was probably the strongest trade union in the entire history of the American labor movement.  Prior to 1889 the relations between the union and the Carnegie firm had been invariably friendly.  In January 1889, H.C.  Frick, who, as owner of the largest coke manufacturing plant, had acquired a reputation of a bitter opponent of organized labor, became chairman of Carnegie Brothers and Company.  In the same year, owing to his assumption of management, as the union men believed, the first dispute occurred between them and the company.  Although the agreement was finally renewed for three years on terms dictated by the Association, the controversy left a disturbing impression upon the minds of the men, since during the course of the negotiations Frick had demanded the dissolution of the union.

Negotiations for the new scale presented to the company began in February 1892.  A few weeks later the company presented a scale to the men providing for a reduction and besides demanded that the date of the termination of the scale be changed from July 1 to January 1.  A number of conferences were held without result; and on May 30 the company submitted an ultimatum to the effect that, if the scale were not signed by June 29, they would treat with the men as individuals.  At a final conference which was held on June 23, the company raised its offer from $22 per ton to $23 as the minimum base of the scale, and the union lowered its demand from $25, the rate formerly paid, to $24.  But no agreement could be reached on this point nor on others and the strike began June 29 upon the definite issue of the preservation of the union.

Even before the negotiations were broken up, Frick had arranged with the Pinkerton detective agency for 300 men to serve as guards.  These men arrived at a station on the Ohio River below Pittsburgh near midnight of July 5.  Here they embarked on barges and were towed up the river to Pittsburgh and taken up the Monangahela River to Homestead, which they approached about four o’clock on the morning of July 6.  The workmen had been warned of their coming and, when the boat reached the landing back of the steel works, nearly the whole town was there to meet them and to prevent their landing.  Passion ran high.  The men armed themselves with guns and gave the Pinkertons a pitched battle.  When the day was over, at least half a dozen men on both sides had been killed and a number were seriously wounded.  The Pinkertons were defeated and driven away and, although there was no more disorder of any sort, the State militia appeared in Homestead on July 12 and remained for several months.