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At the end of the 1900 season, Bancroft "Ban" Johnson, president of the Western League, made moves to assert his league as a new major league in competition with the National League (NL). This included changing the name to the American League (AL) and adding teams in Eastern cities. Plans to put a team in New York City were blocked by the NL's New York Giants, whose connections to Tammany Hall gave them the political power to do so.

Instead, a team was placed in Baltimore, Maryland, a city that had recently lost its NL team from the late 1800s. Nicknamed the Orioles, they began play in 1901, and were managed and owned in part by John McGraw. Johnson rigidly enforced rules about rowdiness on the field of play, causing a feud with McGraw. During the 1902 season, McGraw jumped to the NL, getting a job as manager of the Giants. He still owned part of the Orioles, however, and a week later the owner of the Giants, John T. Brush, gained a controlling interest in the team. He began raiding their best players until the AL stepped in and took control of the team.

In January 1903, a "peace conference" was held between the two leagues to settle disputes and try to coexist. At the conference, Johnson requested that an AL team be put in New York to play alongside the Giants as he always wished. It was put to a vote, and 15 of the 16 major league owners agreed to it, with Brush being the only opponent. As a result, the NL agreed to let the "junior circuit" establish a franchise in New York. The Orioles were chosen to make the move, and their new owners, Frank J. Farrell and William S. Devery, found a ballpark location not blocked by the Giants. Thus, the Baltimore team moved to New York. Baltimore went without a Major League team for 51 seasons until the St. Louis Browns moved in and became the Orioles in 1954.

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