The arbitration commenced on 29th August in the Queen's Head Hotel, Newcastle, the umpire being G. J. Shaw-Lefevre, M.P. The arbitrators for the employers were Mr W. Armstrong and H. T. Morton, Mr L. Jones and Mr W. Crawford acting again for the workmen. The advocates on the owners' side were Mr Lindsay Wood and Mr J. B. Simpson and Mr T. W. Bunning; for the workmen were Mr J. Forman and Mr N. Wilkinson. There were two sittings. There is no need to review the arguments or facts in these cases, as that would extend our work too much, but there is one interesting point advanced by the employers in their rejoinder to the workmen's case. It refers to the cost of production at that time over 1871. The increase was thirty-seven or thirty-five per cent. higher than 1871—the items being, wages 14.68 per cent., and the effect of the Mines Bill 22.67 per cent. Assuming that the cost arising from the operation of the mines was divided between employers and workmen—eleven per cent. to each—there was still 26.35 per cent. to the disadvantage of the employer. On the credit side coal was only 5½ or 8.8 per cent. higher than in 1871, and therefore their conclusion was that the claim for fifteen and ten per cent. reduction was amply justified. At the conclusion of the two days' sitting it was agreed that the arbitrators should meet on the 16th of September, and if they failed to agree the umpire would decide. That meeting took place, and the umpire was asked to decide, which he did on September 25th, and awarded a reduction of six per cent. in the wages underground and four per cent. in the wages paid to surface men.

No sooner was the arbitration finished than the Association found itself face to face with a difficulty of a different but yet perplexing nature. The employers conceived the idea of separating the deputies from the miners. Their reasons for taking this step are stated in a subsequent letter. The mode of procedure they adopted was to exempt the deputies from the six per cent. reduction, providing a majority of the deputies on any colliery would leave the Miners' Association. The employers said their action was in response to a request by some of the deputies. The action drew from the Executive Committee a strong remonstrance. They pleaded with the deputies and protested against the action of the owners. The circular they issued was a lengthy one. Our object will be served if we quote a few portions. Addressing the deputies, they said:

"It appears in response to some application made by some of you the Owners' Committee have agreed that where a majority of deputies on any colliery are not members of ours, they will recommend that such deputies be freed from the recent reduction. Call this offer by what name you will it is neither more nor less than a special kind of bribery held out to you and we regret to hear, that some of you have been imprudent enough to accept it. Why make this difference between those who belong and those who do not belong to our Association? It is not because they respect the one party more than the other, or that the party who have left us are any better workmen or in any way more useful to the owners than those deputies who still belong to our Association. The most unknown amongst you as to your past history, or the most casual observer of present doings, ought to know that the motive which has induced the Owners' Committee to make this offer is not respect for you as a class, is not because they think your responsibilities are increased more than heretofore, neither is it because they think you underpaid, but it is because they want to induce you to sever your connection with an Association which has hitherto been able to gain many advantages for members and for none more than for your class. They offer you an inch now in order that they may take from you a foot hereafter. Most of you can remember the time (only five years ago) when your wages varied from 3s. 4d. to 3s. 8d. per day of eight hours' working, while with the recent reduction of six per cent. your wages are now 4s. 8d. for 7½ hours' working, or an advance in time and money of 39.58 per cent."

The circular then draws attention to a portion of a letter from the deputies who had left the miners to those of another colliery, and to the resolution of the Owners' Association. The portion of the deputies' letter said:

"If any member of our [the Deputies'] Association leaves and starts to hew, and has to go back to the Hewers' Association, the two pounds' entrance fee will be paid out of the Deputies' Association."

The resolution of the Owners read:

That this Association thinks that deputies, like overmen, should be the agents of the masters, and that under these circumstances it is imperative that they should not be restricted by any Trades Union resolutions.

In relation to these the Committee point out that they (the deputies) could not honestly be members even of the Deputies' Association, for by the stipulation of the employers they were not to be restricted by any Trade Union regulations. "It will thus be seen that if you do this, you sell your birthright, your independence, your manhood, your all, not even for a necessitous 'mess of pottage' but for an insignificant present advantage, in order that you may bring upon yourselves a future permanent and great evil."

Some of the deputies were desirous of serving two masters: they wanted to remain in the Miners' and at the same time enter the Deputies' Association for the sake of the six per cent. At the Council held on Saturday, 30th September, a resolution was carried declaring "that the Deputies be not allowed to remain in our Association and also become members of what is called the Deputies' Association." At the same time a sharp correspondence took place between the Owners' Association and the Miners', in which Mr Bunning sent a letter, bearing date 3rd November, which contained a protest and an extenuation.

November 3rd, 1876.

RESOLUTION OF COAL OWNERS

The members of this Association regret that the Representatives of the Miners' Association after five years' amicable correspondence, should have thought it necessary to communicate to them so uncourteous and offensive a document as that bearing date 24th October 1876, and relating to the resolution passed respecting the deputies, on October 11th, 1876. And, as this resolution was arrived at after mature deliberation, and from the conviction that both the safety of the mine, and discipline of the pits, are seriously endangered, by having the deputies subject to the restrictions imposed by the Miners' Union, no good can possibly arise from any discussion of the subject at a meeting of the two Associations.