In 1899, a Doncaster member of the Amalgamated Society of Railway Servants, Thomas R. Steels, proposed in his union branch that the Trade Union Congress call a special conference to bring together all left-wing organisations and form them into a single body that would sponsor Parliamentary candidates. The motion was passed at all stages by the TUC, and the proposed conference was held at the Memorial Hall on Farringdon Street on 26 and 27 February 1900. The meeting was attended by a broad spectrum of working-class and left-wing organisations — trades unions represented about one third of the membership of the TUC delegates.[51]
After a debate, the 129 delegates passed Hardie's motion to establish "a distinct Labour group in Parliament, who shall have their own whips, and agree upon their policy, which must embrace a readiness to cooperate with any party which for the time being may be engaged in promoting legislation in the direct interests of labour." This created an association called the Labour Representation Committee (LRC), meant to coordinate attempts to support MPs sponsored by trade unions and represent the working-class population.[52] It had no single leader, and in the absence of one, the Independent Labour Party nominee Ramsay MacDonald was elected as Secretary. He had the difficult task of keeping the various strands of opinions in the LRC united. The October 1900 "Khaki election" came too soon for the new party to campaign effectively; total expenses for the election only came to £33.[53] Only 15 candidatures were sponsored, but two were successful; Keir Hardie in Merthyr Tydfil and Richard Bell in Derby.[54]
Support for the LRC was boosted by the 1901 Taff Vale Case, a dispute between strikers and a railway company that ended with the union being ordered to pay £23,000 damages for a strike. The judgement effectively made strikes illegal since employers could recoup the cost of lost business from the unions. The apparent acquiescence of the Conservative Government of Arthur Balfour to industrial and business interests (traditionally the allies of the Liberal Party in opposition to the Conservative's landed interests) intensified support for the LRC against a government that appeared to have little concern for the industrial proletariat and its problems.[54]