The adjournment of the organizing convention in July, 1905, left the body it had created in a very chaotic condition. The time and attention of the delegates was so exclusively taken up with the problem of building up "one big union" out of many little unions and the task of working out a harmony platform of law and policy on which all could come together, that the matter of business management was almost entirely neglected. Indeed some of the circumstances surrounding the I. W. W. at its inception quite precluded the ordered and efficient procedure possible to a well manned and adequately financed organization. The I. W. W. was not well manned and was practically destitute of financial resources. The dearth of ability and especially the want of honesty in its managing personnel were to become all too evident long before the second convention had come to a close, as was also its practically bankrupt financial status. Although there were three rather formidable-looking departments nominally organized as such--_viz._: mining, metal and machinery, and transportation--none of these except the mining department represented material accessions either numerically or financially, and the early defection of the Western Federation of Miners quite broke down this one and, what was even more important, cut off from the Industrial Workers of the World the great bulk of its financial resources.
The industrial-union idea made marked headway among the trade unions of the United States during the first year of the existence of the I. W. W., and this was very largely due to the influence and example of that organization. Organizers were sent to those places where serious friction existed between trade-unionists and employers, or between trade-unionists and the American Federation of Labor. The I. W. W. devoted very little attention at that time to the unorganized; its energy was chiefly centered on the reformation of the craft unions--a policy of dual unionism. The Federation lost rather heavily in some quarters to the I. W. W., the disaffection proving most marked among the brewers and machinists. Max S. Hayes, in reviewing the situation at the end of the year 1905, wrote as follows: