1893

The result of the ballot was: for parliamentary eight hours, 12,684; against it, 28,217.

The Wages Board—The Miners' Federation

During the negotiations for a settlement of the strike in 1892 the employers laid emphasis upon what they designated the Wages Board, but which afterwards was known as the Conciliation Board. Their idea (commendable in every point) was to bring the parties closer together, and avoid the recurrence of the stoppage, which they felt (as all must feel) had been a disaster to the whole of them. The question rested over until the beginning of the year, when the owners made application for a reduction in wages, and at the same time asked that the formation of the Board might be taken into consideration. The meeting took place, and on February 27th the Executive Committee issued a circular, putting the whole position before the members. The miners at the time were in a complicated position, being connected with the Durham Federation, and they had a short time before become members of the Miners' Federation of Great Britain. Under Rule 20 that Federation claimed to have control of the wages disputes in all the districts identified with them. In order that the position may be properly understood we will insert the rule.

20. That whenever any county, federation, or district is attacked on the wage question, or any action taken by a general conference, all members connected with the Society shall tender a notice to terminate their contracts, if approved by a conference called to consider the advisability of such action being taken.

The application of that rule to Durham, in the situation it was in, would have been to leave the whole matter in the hands of the Miners' Federation, which would have taken full charge of the question, and have told the Durham Association what they must do—whether to accept or reject. The complication arose from the fact that they were members of the home Federation as well, and there would be confusion if two bodies, one in the county and the other at a distance, were to have supervision. It was impossible to go on in that state. One body was on the spot, and knew the whole bearings of the case; the other was at a distance, and therefore bound to be in comparative ignorance of the facts of the situation.

The Executive Committee felt they were compelled to put the position clearly before the Federation Board and the county, and inform them they were members of the Miners' Federation. In addition, they resolved to call a special Council, and place before it the plain issue. "Let us state the position to you," they said. "Prior to our becoming members of the Federation of Great Britain we acted on all general and wage questions with the Durham Federation Board. Our action was a whole one with the cokemen, mechanics, and enginemen, the last strike being the most recent and clearest illustration of that. You will remember with what loyalty the four sections worked together on that occasion."

If they were resolved to remain members of the Miners' Federation, and accept Rule 20, they mustprepare for leaving the county Federation. That would result in sectional action in Durham, for the other sections would naturally seek to make the best of themselves they could. It was not reasonable to ask them to wait until the Miners' Federation had decided, as per Rule 20, for Durham to strike, and then ask the cokemen, mechanics, and enginemen to join in it. There was needed some definiteness on the point, and the Council would be asked to decide two questions: First, "Shall it be settled by the Federation of Great Britain?" Second, "Shall it be settled by the Durham Federation Board and the united Committees?" At the Council held on March 6th the decision was in favour of the latter question.

In accordance with that resolution the united Committees met the owners on March 13th, and asked them to reduce their demand for ten per cent. to five, and they (the Committee) would at once accept it. The employers accepted the offer, the following being their resolution:—

The Durham Coal Owners' Wages Committee feels the responsibility of accepting a less reduction than the 10 per cent. claimed, because upon an adequate reduction really depends the extent of employment that can be afforded. Whilst, therefore, the owners' judgment is that the true interest of both parties lies in at once bringing into operation a reduction of at least 10 per cent., the owners, desiring to show a spirit of conciliation, accept the Federation Board's offer to submit to a reduction of 5 per cent., to come into operation from the next pay of each colliery; but in doing so the owners feel it their duty to point out that so small a reduction as 5 per cent. falls far short of meeting the urgent necessitiesof the trade, and can therefore be regarded only as a temporary settlement.

This reduction brought the percentage above the standard down to twenty. But the employers were not satisfied; they pressed upon the Board the formation of a Wages Board. On May 27th Mr Guthrie wrote to Mr Patterson as follows:—

I am directed by the Durham Coal Owners' Association to press strongly upon you the honourable obligation we come under to the Bishop of Durham, and to each other, to endeavour to establish a Wages Board which would secure by conciliation or arbitration the pacific settlement of all questions outside the jurisdiction of the Joint Committee. That honourable obligation has been more than once reaffirmed by your Federation Board, but no steps have been mutually taken to give effect to it, and my Association feels that such steps should not be longer delayed, and therefore instructs me to ask your Board to meet the Owners' Committee in order to advance the matter.

The members of the Federation Board were eager, as individuals, to come to an arrangement, but were not sure how the membership would receive it. It was a new but necessary departure in an industry such as the Durham coal trade, but in order that it might be acceptable they were desirous that some scheme (beyond a mere name) should be outlined at least, and placed before the various sections for consideration. They asked the owners, therefore, for certain information:

"(1) The allocation of the 3s. 10d. basis price of coal under the following heads:—wages, salaries,material, royalties, and profits. (2) The proportion of coal required to make a ton of coke in 1893 as compared with 1877. (3) The cost of producing a ton of coke in 1893 as compared with the same in 1877. (4) A statement setting forth the various objects to which the 2d. per ton was allocated. (5) A statement showing the percentage of steam coal, gas coal, household coal, manufacturing coal, and coal converted into coke. (6) The average lengths of contracts, with the periods when they are ordinarily made."

A reply to these questions was received on December 7th. This was in conjunction with an application for an advance made by the Federation Board. They were informed that the Owners' Committee was willing to meet and discuss the question at the same meeting when the proposed Wages Board was considered. In reference to the list of questions the letter contained the following:—

"The meaning of some of your questions does not seem clear, and generally my Committee failed to understand how they bear on the expediency or otherwise of forming the proposed Board, or arise prior to its establishment, but the Committee accepts your suggestion that a meeting should be held to discuss your communication."

The meeting was held on December 19th. Nothing was done in relation to the Wages Board, but an arrangement was made with respect to the advance. The Owners' Committee were convinced that the tendency of prices was downward. These had been somewhat higher during the strike in the Midlands, but the effect of that was passing away, and they had very grave reasons to doubt whetherthe first quarter in 1894 would justify the rate of wages then paid. They had given a temporary advance in October for six pays only, and they were prepared to make that permanent, and bring the wages to twenty-five and twenty-two per cent. respectively above basis rates.

In order that we may make the chronology of our history as close and sequential as possible, we will postpone the Wages Board until 1894, and take up a subject which is within the year we are dealing with. In the autumn of 1892 Durham decided to join the Miners' Federation of Great Britain. The membership continued without any difference (except that arising from the eight hours, and the case of the reduction in Durham mentioned above) until the month of July 1893, when a demand was made upon the Miners' Federation for a reduction of twenty-five per cent. In connection therewith a conference was held in Birmingham (the proverbial Hen and Chickens' Conference) to consider the situation. Two delegates were sent from Durham (Mr J. Johnson and Mr J. Wilson). It was found that in some districts organisation was in a very poor condition. The delegates from Durham were sent to move the whole question be referred to arbitration, but when they brought it forward as the best mode of procedure, they were prevented for some time, but finally were permitted, with the result that, by a majority of four to one, they were outvoted. A resolution was carried pledging all the districts within the Federation area to give innotices. If they had suffered reductions within two years, then they had to apply for an advance equal to the amount lost, without regard to the state of trade or any other consideration. The absolute order was to give in notices, the aim being to bring all into the struggle which was impending, and these had to be given within a fortnight. When these proceedings were reported to the county a circular was sent out by the Executive Committee, in which they commented upon the situation, and asked the members what should be done. They said there were two questions for them to decide upon—first, the position in the south; and second, the demand they had to make for fifteen per cent. advance, as per the Birmingham resolution. These could have been sent out in a bald form, but it was their duty to give the county guidance, for if a Committee be appointed for anything at all, it is to watch, warn, and guide the members of the organisation. There could be no doubt but that Durham was in favour of arbitration, for the last vote taken on the instructions to the delegates proved that. This was refused, and instead they were ordered to make a demand for fifteen per cent. advance. The question which they must answer first was: Is trade favourable for such a demand? Unless trade is prosperous now, could they expect to succeed in such a claim? What support could they get? Their own funds were gone entirely. If the Federation strike took place, then there was no source of income anywhere.

There were at that moment 5000 men out of work, some of whom had never started since the latestrike. The small support these men had been receiving would be cut off. They would have to commence a strike, not in comparative, but absolute poverty. Where, then, was the hope?

But suppose notice was not given in for an advance, then Durham must give in notice to terminate their engagement when they had no dispute with their employers. If they were asked "what they were striking about" what answer could be given, except the following:—"Nothing whatever in our own county; we have no difference." Further, if the employers were to offer a ten per cent. advance, it could not be taken without the leave of the Federation. Neither could they accept arbitration, for they had been told the No. 20 Rule of the Federation would not admit of it. Therefore they must strike, or be expelled from the Federation. But, said the Committee, "much as we desire national federation, and may regret our expulsion from that body, we cannot urge you to a course that would in our opinion be disastrous."

The questions involved were then placed before a special Council, when it was decided to ask for an advance of fifteen per cent., but that they would not join the Miners' Federation in the strike. The Council likewise resolved to ask the cokemen, mechanics, and enginemen to join them in their demand for the fifteen per cent. If not, then the Miners' Executive should apply themselves. The Federation Board considered the decision of the miners. They regretted the circumstances which had led to the great dilemma in which they were found, but, having a desire to keep the solidityof the Board, they would accede to the request, and meet the owners, but if it were refused, it would be desirable to refer the question to their respective sections for further instructions, and at the same time they would ask the united Committees to accompany the Board. The owners could not accede to the request, and it was necessary that the will of the members should be ascertained by the miners. This was the position: they had been ordered by the Birmingham conference to make a demand for fifteen per cent., and if not conceded, to give in their notices. None of the other sections had received the same orders. The questions were: Should there be a strike to force the demand, or should they work on? But before that stage was reached, it was necessary that they should ascertain whether the ballot should be the whole of the Durham Federation, or simply the miners. The voting was: for the whole Federation Board, 267; for the miners' vote alone to decide, 167. It was then found that the other sections could not join the ballot until they had consulted their members, and the Executive Committee determined to take a ballot of their members alone. The result of the ballot was: for a strike, 20,782; against, 19,704. The rule, therefore, was against a strike. The consequence of that vote was to place Durham in direct conflict with the Miners' Federation. That body had a conference arranged for August 22nd in London. Messrs Johnson and Wilson were sent to it by a nearly unanimous vote. The first business of the conference was to consider the action of Durham, and the following resolution was moved and carried with great unanimity:—

That we, the representatives of this Federation, cannot allow the Durham delegates to sit in this conference, seeing that this district through its officials has not carried out the resolution of the Birmingham conference.

There are two very notable things in the resolution and its setting. Durham was expelled from the Federation, and the officials of that organisation were charged with preventing the carrying out of the Birmingham resolution. The first of these is very clear, for on that point the motion is specific; but it will be seen the second is not correct when we consider the two votes recorded above—the first placing it in the hands of the Federation Board and the second by a ballot being against the strike. This is a history, and not a record of any man's opinion. It is necessary that the state of things that existed should be recorded, not a mere theory as to how things should be. The history would be incomplete if we were not to follow the sequence a little further. No sooner had the expulsion taken place than there was an introduction of speakers from the Miners' Federation, who came with the avowed object of trying to induce the county to continue its membership. The only complete illustration of that circumstance would be for a man to kick another out of his house, and the next minute go himself, or send some of his relations, to ask the man to come in again, doing his best to show that he who was kicked out was the offender, and ought to feel thankful for the usage he had received, and to supplicate to be taken in again. It was a curious mode of procedure, to say the least, and, most surprising of all, they were assisted by some of thepeople in the county, who did not feel the slightest ignobleness in the treatment they had received by the expulsion.

The Conciliation Board—Lord Davey's Arbitration

The formation of a Conciliation Board was again brought forward by a request from Bishop Westcott to the Federation Board asking them to meet him for the purpose of discussing the subject. The Board acceded to his request, but did not appoint a definite deputation except the four secretaries, leaving any others to join them who thought proper. The result of the interview was the calling of the four Committees to discuss the proposal. The decision of the Miners' Council on March 10th was:

That the Committee meet the owners and discuss the advisability of forming a joint Board for fixing the correct selling price of coal, and the other sections of the Federation (county) be asked to join the negotiations and report to the county; that there be a Conciliation Board formed, to consist of members from the owners on the one part and members of the Durham Federation Board on the other part. The said Board shall be formed of equal representatives of the before-named parties, who shall meet on terms of absolute equality.

This resolution was brought before the Federation Board, when it was found that the other three sections had not been instructed by their members, and it was resolved that the question be deferred until "they had an opportunity of bringing thematter before their Associations, and that the Board recommend the acceptance of the principle for their adoption, and the four secretaries meet and draw up a code of rules for the guidance of the Conciliation Board." A difficulty arose from a resolution passed by the Cokemen's Association.

Dr R. S. Watson had given an award in a cokeman's case shortly before, which in the opinion of the cokemen was not being carried out by the owners, and therefore, while they were in favour of the principle of conciliation, they decided not to take any part in the formation until the owners brought the award into practical operation. The Federation Board regretted the action of the cokemen, as in their opinion "such a Board would be the most effective means of bringing a full recognition of that award. As, however, the other three sections were in favour of proceeding with the formation of the Board, we ask the employers for an early meeting, and we would urge upon the cokemen to reconsider their resolution of March 31st, and give their representatives power to proceed with us in that formation."

The owners were desirous that the Board should join them in meeting the Bishop, but they were informed that a previous understanding had been come to, by which it was arranged that each side should meet him separately, and then the joint meeting should take place. They had carried out their part of the bargain, and were ready to meet jointly as soon as his lordship should ask them, as they were very wishful not to throw any obstacle in the way of the formation of the Board. On July 27th the formalities were settled, and the rules wereleft to the four secretaries, with instructions to draw up a circular recommending such rules to the members.

proposed conciliation boardGentlemen,—We hereby desire your attention and consideration to the rules of the "Proposed Conciliation Board," which you instructed us to form. We have always told you that, however carefully we might draft such rules, the acceptance, amendment, or rejection thereof is with you. We were proud to receive the commission of the duty, and we place before you the result of our work, and are hopeful that great benefits will accrue to the trade of the county if these rules are adopted. We do not claim perfection for them, but we do assert that they are in advance of any method ever arranged here for the settlement of disputes.We will not trouble you by any lengthy statement by way of urging you to accept the rules, for in our opinion their fitness is clear, but we will in as brief a manner as possible draw your attention to three of their leading features or principles. First, the scope of the operations of the Board; second, its duration; and third, the machinery by which it arrives at its decisions.The scope of the Board is set forth under the headings of "Objects." We do not quote those objects, but ask you to refer to and consider them carefully. They are clear in their intention and comprehension. What can be more interesting and important to us than the prevention of disputes? We speak for you, as well as ourselves, and say we desire them not, and welcome any mode of settlement which will minimise friction, and help both employers and employed to avoid any irritating action, while it does not interfere with the right of andjustice to either party. You will observe that the Board is intended to bemore than a Wages Board. It will take into its cognisance and decision any questions which may arise and for which the Joint Committee rules do not provide.You know as well as we do the numerous cases that arise which have no standing at the Joint Committee, and you will, therefore, easily recognise the value and importance of any tribunal which will deal with such matters in a ready and expeditious manner. There is no need to enumerate those questions. We hope you will not merely glance at the latter portion of the "Objects," but give it your careful attention.The duration is fixed by rule three. The limit is 1895, and, therefore, if the rules should fail to meet our views, we can terminate the existence of the Board in less than a year and a half from now, which is a short time in the history of our industrial relations. A shorter time than this will not give us the opportunity of testing the usefulness of the arrangement, neither is it long enough to allow any serious evil to arise therefrom.The machinery or mode of operation is contained in rule four and subsequent rules. If you examine these rules you will see, that while they provide for the appointment of an umpire (which is necessary), yet his services are not to be called in until the Board have tried to settle by negotiation and conciliation. We recommend to your special notice the main features of this portion of the rules. These are the provisions for the play of conciliation and mutual confidence. Anything that will beget a feeling of trust and mutuality, that will remove the desire to overreach and withhold on the one hand, and of suspicion and doubt on the other, should be welcomed and tried, and if possible strengthened.

proposed conciliation board

Gentlemen,—We hereby desire your attention and consideration to the rules of the "Proposed Conciliation Board," which you instructed us to form. We have always told you that, however carefully we might draft such rules, the acceptance, amendment, or rejection thereof is with you. We were proud to receive the commission of the duty, and we place before you the result of our work, and are hopeful that great benefits will accrue to the trade of the county if these rules are adopted. We do not claim perfection for them, but we do assert that they are in advance of any method ever arranged here for the settlement of disputes.

We will not trouble you by any lengthy statement by way of urging you to accept the rules, for in our opinion their fitness is clear, but we will in as brief a manner as possible draw your attention to three of their leading features or principles. First, the scope of the operations of the Board; second, its duration; and third, the machinery by which it arrives at its decisions.

The scope of the Board is set forth under the headings of "Objects." We do not quote those objects, but ask you to refer to and consider them carefully. They are clear in their intention and comprehension. What can be more interesting and important to us than the prevention of disputes? We speak for you, as well as ourselves, and say we desire them not, and welcome any mode of settlement which will minimise friction, and help both employers and employed to avoid any irritating action, while it does not interfere with the right of andjustice to either party. You will observe that the Board is intended to bemore than a Wages Board. It will take into its cognisance and decision any questions which may arise and for which the Joint Committee rules do not provide.

You know as well as we do the numerous cases that arise which have no standing at the Joint Committee, and you will, therefore, easily recognise the value and importance of any tribunal which will deal with such matters in a ready and expeditious manner. There is no need to enumerate those questions. We hope you will not merely glance at the latter portion of the "Objects," but give it your careful attention.

The duration is fixed by rule three. The limit is 1895, and, therefore, if the rules should fail to meet our views, we can terminate the existence of the Board in less than a year and a half from now, which is a short time in the history of our industrial relations. A shorter time than this will not give us the opportunity of testing the usefulness of the arrangement, neither is it long enough to allow any serious evil to arise therefrom.

The machinery or mode of operation is contained in rule four and subsequent rules. If you examine these rules you will see, that while they provide for the appointment of an umpire (which is necessary), yet his services are not to be called in until the Board have tried to settle by negotiation and conciliation. We recommend to your special notice the main features of this portion of the rules. These are the provisions for the play of conciliation and mutual confidence. Anything that will beget a feeling of trust and mutuality, that will remove the desire to overreach and withhold on the one hand, and of suspicion and doubt on the other, should be welcomed and tried, and if possible strengthened.

There were a number of suggested objects andprovisions sent in, which were afterwards commented upon by the united Committees. Amongst these was a minimum wage. The Committees, in relation to that question, drew attention to the period between 1877-79, when, in little more than a year and a half, the miners spent £23,000 in the maintenance of men out of work; that, so severe was the pressure, they were compelled to abolish the Relief Fund; that there were collieries where the men asked to be allowed to work at twenty per cent. below the minimum; and that the actual average went down to nearly 6d. per day below the minimum. The second suggestion was "a voice in the selling price of coals." This, the Committees thought, was a very good ideal, but it was yet a great way off. It implied more mutuality than was in existence, and it was a state which must evolve, rather than be fixed arbitrarily. "The voting to be by ballot at the Board meetings." This was thought to be unbusiness-like, as secret voting was a strange thing for a business meeting. Then it was thought by some lodges that the question of sacrificed men, and arranging for all men to be in the Associations, were matters to come within the purview of the Board, but it was found that they were not compatible with its objects. The rules as framed were not perfect, but were far in advance of any to be found in the country. "Many other districts and trades have adopted the principle, but we venture to say that in no instance has a Conciliation Board been formed which, for breadth of scope in its operation and dealing with questions that can arise, is in any way equal to that proposed for this county. We have had the opportunity ofstudying the rules of all the Boards already formed, we have watched the work of those, and we unhesitatingly declare that in no single instance have such equitable rules been found."

When these views were put before the four sections they were accepted by the other three, but the miners hesitated. The Executive pointed out to them that by a Council resolution the power had been given to the Board to arrange rules and conditions, and therefore theirs was an anomalous position for them to take up by their objection. Under the circumstances they had resolved to call a special Council, in order that the matter might be fully considered. They were confident that if the common good were the aim, and all were imbued by that idea, the Conciliation Board would be formed on the lines suggested by the united Committees. The result of the Council was the acceptance of the proposed constitution, with the alteration of the number of members from fifteen to eighteen on each side, and the owners were informed that the Federation Board was ready to meet and sign the rules. The rules were signed on the 18th of February 1895.

There is no need to insert the rules here, as they can at all times be seen in the office, if any person feels desirous of doing so. The election of the first members took place on the 12th February 1895, the following persons being elected:—

J. Wilson.W. H. Patterson.S. Galbraith.J. Johnson.T. H. Cann.W. House.J. Forman.W. Golightly.H. Jemison.

At the first meeting of the Conciliation Board theemployers asked for a reduction of wages. Many people thought they were in a hurry. Such a conclusion was hardly justifiable when we remember that they had been pressing for a reduction for some time, and the delay had arisen from the length of time taken in the negotiations to establish the Board.

The employers felt themselves injured by the delay, and therefore took the first opportunity of having their claim put forward and settled. The Federation Board in their circular on the situation acknowledged that, for they said:

We cannot but regret that the first meeting of the Board should have been convened to consider a reduction of wages, yet we feel confident that, however distasteful and unpleasant it may be to submit to a fall in percentage, all who have observed the condition of trade, taken note of the prices prevailing generally, and the serious lessening of the number of hands, during the past six months, could not be otherwise than prepared for a reduction in the rates of wages which were got when the condition of trade was different and prices higher.

While the Board were prepared for a demand for a reduction they were not prepared for the amount asked. The demand was for fifteen per cent., which would bring the wages down to a point to which the scale of 1889 would have brought them. The price of coal in 1889 was 4s. 8d., in 1895 it was 5s. 2d. Wages had risen thirty-five per cent., and therefore they had a claim (said the owners) for at least fifteen per cent. The arguments against that claim we need not state in full. The main one was that, taking the whole period since 1889, wages had been between seven and nine per cent. higher than theperiodically quoted net selling prices would have given. That argument, as all are aware, was of great weight, and that it influenced the decision, there is not the slightest doubt. The decision of the umpire was a reduction of seven and a half per cent., but it left the wages higher by that amount than the old arrangement would have done. Under it 5s. 2d. per ton would have given a wage ten per cent. above the standard; the award of Lord Davey in May 1895 left it seventeen and a half above the standard.

Although they had been called upon to suffer this reduction so early in the era of conciliation, the Federation Board did not lose faith in it as an advance in wage settlements. They said:

It may not be out of place to allude to a feature or two of the newly adopted method of dealing with wages regulations as disclosed by recent applications, and we may modestly, yet rightly, claim for it a superiority of character and practice over preceding modes. As already stated, it has by its earliest results confirmed the conviction previously held, that the standard relation of wages to prices governing previous methods was not correct, and established the increased average amount obtained by the negotiations of the past years.

At the next meeting of the Board the owners made another application for a reduction. When the July meeting took place the claim was brought forward. It was objected to at first, on the grounds that there had not been sufficient time, seeing the three months had not elapsed. The notice was withdrawn and renewed. The reasons assigned were the declension in the markets and the inadequacy of the previousreduction. These reasons were not accepted, and the umpire was again called in. His decision, after two days' hearing, was a reduction of two and a half per cent. In spite of this adverse circumstance the Federation Board were still strong in their belief in the utility of the system. They said:

We are not going to say that its course, so far as it has gone, has been pleasant, for there have been two reductions, but these do not shake our confidence in it. It is an unfortunate coincidence, the initiation of a new system when circumstances are unfavourable and its changes are downward. The true test of institutions, as of men, is their action in a variety of conditions. No arrangement can make trade prosperous. They are dreamers who think so, and are liable to a rude awakening. Wise men recognise the ever-recurring changes, and employ the means which are most expeditious, easy, and equitable in their responses. Friction between employer and employed is a foe to any trade, uncertainty is a sure and hurtful detriment, hastening and enlarging the times of adversity. Our opinion is that, if we have not the best system, we have one which will ward off friction, allay uncertainty, and induce steadiness in the trade of the county.

That clear and bold statement of their confidence in the Board was not effective in maintaining it, for at the Miners' Council held on November 16th it was resolved to take a ballot to test its continuance. The Federation Board, on being informed of that action, resolved to take it of all the sections. They at the same time advised their members to keep it intact. They did not find fault with the decisionto take the ballot. Their advice was therefore not prompted by a spirit of complaint. It was right that these matters should rest on the will of the members. Their duty, however, was to guide the members and advise, even on subjects that were unpalatable. In October they placed before them their views in as clear a manner as possible. Those views they adhered to, and did not swerve from their belief in conciliation as the best system yet tried. It was condemned, because there had been reductions. If advances had come there would have been loud praise. Would wages not have been reduced if the Board had never been formed?

"Without hesitation we tell you that, in our opinion, he is a foolish or a designing man, or ignorant of commercial relations, who attempts to teach such a doctrine. We have never told you such an absurdity. When we asked you in the spring of the year to adopt conciliation we never dreamt of it as a fixed, immovable machine. To us it was (and is) a more mutual, closer, and smoother principle than we have ever had, taking within its comprehension other and important matters outside wages."

In spite of this pleading on the part of the Federation Board the voting was: for the Conciliation Board, 11,974; against it, 29,000; neutrals, 17,000, as a result of the miners' vote. The whole Federation vote was: for, 14,894; against, 30,587; neutrals, 20,000.

On the strength of that vote notice was given to terminate the Conciliation Board in accordance with rule.

The Conciliation Board—Death of Mr Patterson

The Federation Board were still in hope that the decision to terminate the Conciliation Board might be reconsidered, and they again brought the question before the members. They asked what system was to be substituted for it. They were firm in their belief in conciliation, but, if the members still persisted in abolishing it, what other form was to be adopted?

"The situation in which we as a county find ourselves makes it imperative that we should address you. We do not refer to our own organisations, for these are strong, but to our relation with the employers and the settlement of our transactions with them. How are these to be managed in the future? Has our attitude to be one of repulsion or attraction? Have the employers and ourselves to act like two antagonistic forces, looking with suspicion upon each other, and ready to take every advantage, as if we were in a continual wrestling match on the catch-who-can principle, where those who get the hold win, whether their cause be righteous or not? If the members persisted in their resolve to have no Conciliation Board, or some substituted machinery, who would suffer most? If there were two parties before you of equal strength and similarly conditioned, then the issue would be uncertain, and the victory would depend upon some unforeseen circumstances.Such is not the case with us. Given a solid organisation of labour, and the same of employers numerically—still the balance of the chances in a wear-and-tear and struggling policy will he on the side of the party who is the best ammunitioned andprovisioned. In this case, which in your opinion as the advantage?"

Such is not the case with us. Given a solid organisation of labour, and the same of employers numerically—still the balance of the chances in a wear-and-tear and struggling policy will he on the side of the party who is the best ammunitioned andprovisioned. In this case, which in your opinion as the advantage?"

They pointed out that they were mutual sufferers with the members, if there were suffering; that there was not time in the lodge meetings to discuss the utility of such a system; and that as a consequence they, as one of the obligations of their office, were bound to have a fuller knowledge of the subject than the members. It was an unfortunate circumstance that the system had been tried in a receding market, but the proper test was not by one condition of trade. If conciliation were tested by an increasing as well as a falling market it would then be seen how useful it was. Some people seemed to charge the Conciliation Board with being the cause of the depression.

"There cannot be a greater fallacy. The causes of the reductions lie outside the purview of any system yet arranged, and the control of them is not within the possibility of an arrangement yet thought of. But the question that faces us now, and demands an answer from us, is, would they have come if the Board had never been formed? There needs no philosophical knowledge to satisfy the mind on that point, except it be the philosophy of matter-of-fact, everyday life, which in these matters is not an unsafe test. Let experience guide, and it will afford a sure refutation of the unfounded idea that it is possible to fix, firmly and permanently, wages by any scheme within the knowledge of man."

They were desirous of giving them another chance, as the ballot on the previous occasion was very unsatisfactory, and some of the sections had made arequest for such to be done. And they were hopeful that, before the notice of termination ran out, the Conciliation Board would be reaffirmed, as "the hope of all true reformers is centred in the cultivation of amicability and friendly intercourse between employers and employed, with a conciliatory method of settling any difference that may arise, monetary or otherwise, and in the ultimate blending of the two forces—Capital and Labour—for the mutual and equal benefit of all concerned. Consider seriously every step we as an organisation take, and let all we do tend towards the attainment of the much-needed object." The result of the second ballot was against the Board, the numbers being in close similarity to the previous vote—the miners being very largely against, while the other three sections were in favour. We may add here that it terminated on August 4th, and for a short time the county entered the region of uncertainty again, which all must acknowledge is no help to trade or district.

The month of July had been fatal to the organisation, for in it, in 1890, Mr Crawford died, and on July 16th of this year Mr Patterson passed away from the labour to which he gave his youth and manhood. He had filled the position of agent and financial secretary for twenty-five years.

It will not be out of place if we insert a portion of theMonthly Circularfor the month in which he died. It contains the sincere estimate of one who knew him intimately, who had the highest respect for him while he lived, and who now has pleasantrecollections of his manly and reliable actions. He was no self-seeker or panderer for self-profit; he was the antipodes of that mean and despicable character. You might have difference of opinion with Patterson, but you could at all times depend upon the open honesty of his nature.

monthly circularJuly 1896.My first word must be a note of sorrow. July to us, as regards the agency, has been a fatal month. In it we lost Crawford, and now Patterson has joined the great majority. This is the common lot of all. Happy is the man who leaves this world for the next without regret, feeling that his life has been of some service to his kind, and that the people amongst whom he has lived express their recognition of his worth by their sorrow and appreciation of his labours. Such was our friend. If we, who stood by his bedside in the last moments of the final struggle, could have been cognisant of his thoughts there would have been no regret; for W. H. Patterson was the enemy of no living man, but the friend of all. We were not so privileged, but we were so glad to see the large crowd of people who gathered to pay a tribute to his memory. The gathering was diversified in its character, spontaneous in its gathering, and truly sympathetic in its manner and spirit.But from our regret for his loss let us turn to the influence of his life. The true test of a man is his work. Our friend stood the test. The real measure of a man's life is its actions; he was full measure. He was not showy, but solid, and as such, being dead, yet speaketh—speaks in no uncertain sounds; let us turn no indifferent ear. The main work of his life, in conjunction with others, was the inception, promotion, and solidifying of our organisation. It will be the most real expression of our sorrow if we do our best to carry forward that upon which he set his mind, and which he endeavoured on all occasions to enforce. Would it not be sham sorrow and unreal regret on the part of a son who on the death of a father ... a father who by the toil and care of his life had made a position ... if he were careless of that work, and had regard only to self-indulgence? Little as we may think of it, there has a fortune come to this generation and a position been gained for it by the labours of our friend and others which cannot be estimated in money. We are apt to test everything by a monetary standard, but in this case the test fails. Within the life of Mr Patterson there have been effected changes which he outside the range of wages, but which are none the less valuable to us. These are only known to those whose working life commenced anterior to thirty years ago. There are many who have not the experience, and who cannot, therefore, realise to the full, the contrast. Lightly as these may be inclined to look upon the changed conditions, and think because these conditions exist now they have always existed, there are numbers who know, and who are able to compare, and rejoice in the change made.I would not say that all is attributable to the labours of our lost friend. No man would have protested more strongly against such an idea than himself; but he did what he could; he never devolved his share of work upon others.He was earnest and determined at the foundation of the Society, and anxious for its welfare during the whole course of our existence. We shall best show our respect to his memory by doing what we can to preserve and perfect the Institution.

monthly circular

July 1896.

My first word must be a note of sorrow. July to us, as regards the agency, has been a fatal month. In it we lost Crawford, and now Patterson has joined the great majority. This is the common lot of all. Happy is the man who leaves this world for the next without regret, feeling that his life has been of some service to his kind, and that the people amongst whom he has lived express their recognition of his worth by their sorrow and appreciation of his labours. Such was our friend. If we, who stood by his bedside in the last moments of the final struggle, could have been cognisant of his thoughts there would have been no regret; for W. H. Patterson was the enemy of no living man, but the friend of all. We were not so privileged, but we were so glad to see the large crowd of people who gathered to pay a tribute to his memory. The gathering was diversified in its character, spontaneous in its gathering, and truly sympathetic in its manner and spirit.

But from our regret for his loss let us turn to the influence of his life. The true test of a man is his work. Our friend stood the test. The real measure of a man's life is its actions; he was full measure. He was not showy, but solid, and as such, being dead, yet speaketh—speaks in no uncertain sounds; let us turn no indifferent ear. The main work of his life, in conjunction with others, was the inception, promotion, and solidifying of our organisation. It will be the most real expression of our sorrow if we do our best to carry forward that upon which he set his mind, and which he endeavoured on all occasions to enforce. Would it not be sham sorrow and unreal regret on the part of a son who on the death of a father ... a father who by the toil and care of his life had made a position ... if he were careless of that work, and had regard only to self-indulgence? Little as we may think of it, there has a fortune come to this generation and a position been gained for it by the labours of our friend and others which cannot be estimated in money. We are apt to test everything by a monetary standard, but in this case the test fails. Within the life of Mr Patterson there have been effected changes which he outside the range of wages, but which are none the less valuable to us. These are only known to those whose working life commenced anterior to thirty years ago. There are many who have not the experience, and who cannot, therefore, realise to the full, the contrast. Lightly as these may be inclined to look upon the changed conditions, and think because these conditions exist now they have always existed, there are numbers who know, and who are able to compare, and rejoice in the change made.

I would not say that all is attributable to the labours of our lost friend. No man would have protested more strongly against such an idea than himself; but he did what he could; he never devolved his share of work upon others.

He was earnest and determined at the foundation of the Society, and anxious for its welfare during the whole course of our existence. We shall best show our respect to his memory by doing what we can to preserve and perfect the Institution.

The loss of Mr Patterson was followed by theelection of Mr T. H. Cann to the office of treasurer, Mr Wilson being appointed corresponding secretary, and Mr Johnson financial secretary. We will close our reference to our friend by placing on record the estimate placed upon him by the Committee who knew him.

committee notice(Death of Mr W. H. Patterson)Gentlemen,—It is with very great regret that we announce to you the death of Mr W. H. Patterson, which took place at 6-15P.M.on July 16th. Our regrets on this occasion are not those of formality, but are prompted by a recognition of his worth as an official of our organisation and his character as a fellow-worker and a man. Never yet had any organisation a more earnest officer, nor any body of men a more willing colleague, nor any community a more upright, honest, and straightforward man, than our friend who has been taken from us. He has not lived the years allotted to man, but the best part, and by far the largest part, of his life has been spent in the cause of his fellows. He has gone to his rest at the age of forty-nine years. Twenty-eight of these have been spent in active, diligent service—and useful service. He was one of the band of men who twenty-seven years ago, in the face of difficulty, laid the foundation of our organisation; and since that time he has been watchful over its interests, consistent in his desire to benefit the members, and unwearied and uncomplaining in his endeavours to strengthen the structure he helped to rear. It was not his privilege "to die in harness," as we are confident it would have been his pleasure; but those of us who had the opportunity of judging know how anxious hewas, so long as he could get about, to do and advise whenever he could. The name of W. H. Patterson is wove into the web of our Institution, and his life will be a blessing after he has gone from our midst. The good that he has done will live after him. Happy shall we be if the same be said of us when Death gathers us in.July 17th, 1896.

committee notice

(Death of Mr W. H. Patterson)

Gentlemen,—It is with very great regret that we announce to you the death of Mr W. H. Patterson, which took place at 6-15P.M.on July 16th. Our regrets on this occasion are not those of formality, but are prompted by a recognition of his worth as an official of our organisation and his character as a fellow-worker and a man. Never yet had any organisation a more earnest officer, nor any body of men a more willing colleague, nor any community a more upright, honest, and straightforward man, than our friend who has been taken from us. He has not lived the years allotted to man, but the best part, and by far the largest part, of his life has been spent in the cause of his fellows. He has gone to his rest at the age of forty-nine years. Twenty-eight of these have been spent in active, diligent service—and useful service. He was one of the band of men who twenty-seven years ago, in the face of difficulty, laid the foundation of our organisation; and since that time he has been watchful over its interests, consistent in his desire to benefit the members, and unwearied and uncomplaining in his endeavours to strengthen the structure he helped to rear. It was not his privilege "to die in harness," as we are confident it would have been his pleasure; but those of us who had the opportunity of judging know how anxious hewas, so long as he could get about, to do and advise whenever he could. The name of W. H. Patterson is wove into the web of our Institution, and his life will be a blessing after he has gone from our midst. The good that he has done will live after him. Happy shall we be if the same be said of us when Death gathers us in.

July 17th, 1896.

T. H. Cann

Miners' Federation—Washington Strike

The year 1897 was memorable for two things: the refusal of the Miners' Federation to accept Durham as a member unless the county would agree to support a legislative Eight Hours' Bill, and the conflict between the Executive Committee and Washington Lodge, which settled the question once for all whether money could be paid if a colliery were stopped illegally, even if the Council decided to pay. These we will take in the order stated. Towards the end of 1896 it was decided to join the Miners' Federation. The information was sent to Mr Ashton, the secretary of the Federation, and the application was accepted. Then arose the question as to the meaning of Object 5:

"To seek and obtain an eight hours' day from bank to bank in all mines for all persons working underground."

In order that the intention might be made clear the Executive passed the following resolution:—

That Mr Ashton be written to, asking whether Object 5 in the Miners' Federation Rules meansthat the eight hours have to be obtained by State interference alone, or by organised efforts, and whether the districts have any option or choice in the matter.

Mr Ashton replied that Object 5 was to be brought about by organised effort or legislation, or both. As far as the district having option or choice was concerned all members were expected to be loyal to the Federation, to be guided by the rules, and assist in carrying out the resolutions passed at the conferences of the Federation. That was interpreted to mean that if Durham became a member, as all the other districts were voting for legislative action, it would be virtually bound to join in the demand for eight hours by State, and the Executive placed the question on the programme for the Council held on February 6th in the following form:—

That the county having decided to join the Miners' Federation, and we having been informed that we must agree to support a legislative eight hours as a condition of membership, and as we remember that the county has decided, by ballot in 1892 and by resolution in 1895, not to support such a measure, we cannot agree to accept that condition until the county alter the previous resolution on the question, either by Council, motion, or ballot.Will delegates come prepared to say what shall be done in this matter?(1) Shall we rescind the previous resolutions?(2) Shall we support an Eight Hours' Bill?(3) Shall a ballot be taken on the subject?

Will delegates come prepared to say what shall be done in this matter?

(1) Shall we rescind the previous resolutions?

(2) Shall we support an Eight Hours' Bill?

(3) Shall a ballot be taken on the subject?

The Council passed a general resolution:

"We adhere to the resolutions now standing in the Association's minute-books—viz. that we do not goin for the parliamentary eight hours' day, and that there be no ballot taken on the question."

That decision was sent to Mr Ashton on February 10th, the following being the letter:—

At our Council meeting held on February 6th our members decided to abide by their previous resolution to oppose any State interference with the hours of labour. I am instructed by our Committee to inform you of this decision and to ask you to let us know whether under these conditions your Executive Committee accept us as members of the Miners' Federation of Great Britain. On the presumption that you will accept us as members on those conditions, I enclose you a cheque on the National Provincial Bank, value £59 (fifty-nine pounds), being our entrance fee at one pound per thousand members.—I am yours,John Wilson.

John Wilson.

The receipt for the entrance fee not being sent the Executive Committee wrote again on February 18th:

If you do not send the receipt the inference on all sides must be that you do not accept us on the conditions stated (our opposition to State interference with hours). If you do send a receipt, then we shall conclude that you do accept us on the conditions, and there will be no need to repeal the resolution of exclusion of 1893.

Two days after that was sent Mr Ashton sent a receipt, and said:

I have no desire to delay the matter of your district becoming connected with the Federation. I enclose receipt for the entrance fee.

As this was written two days after the Committee placed the alternative before the Federation it was assumed that Durham was not to be bound to the legal eight hours. This impression was communicated to Mr Ashton on February 25th, and on the 27th the Committee was surprised to be told:

"In reply to your letter of yesterday, Durham has been accepted into the Federation as all other districts have been. Whatever resolutions you may pass on general questions in your Council or Committee meetings you must be governed by majorities at the Federation."

Then there arose a dispute about some contributions which were sent to Mr Ashton. The amount was £245, 16s. 8d. The dispute was as to the period which was covered by the payment. On June 30th, in a letter dealing with the disputed point, Mr Ashton said:

I think you will agree with me that the difference on the hours question is so great that until Durham can agree to withdraw their opposition to the Miners' Eight Hours' Bill, it is most unwise to keep their connection with the Federation.

And on July 10th the cheque for the £245, 16s. 8d. was returned to Durham, and the separation mentioned above was effected by the return of the contributions.

The Executive Committee then summarised the situation as follows:—

We decided to join the Federation. We then found that we had resolutions standing against the eight hours. By our own decision of February 6thwe resolved to abide by those previous resolutions. We then informed Mr Ashton, as secretary of the Federation, that we had so resolved, and enclosed the cheque for our entrance fee, with the understanding that if the receipt were sent we were accepted on those conditions. Our Council again on May 29th reaffirmed our opposition to the eight hours, and we wrote to Mr Ashton and sent our quarter's contributions, and said we were desirous of remaining members on wage questions. We were then asked to say whether we could pledge the county to come out on strike, which we could not do. The conclusion of the whole matter then is, because we could not give a pledge to come out on strike on every occasion when so ordered, and because we were resolved to oppose the eight hours by State interference, our contributions are returned, and we are told by actions—which speak louder than words—that we are not to be members. We are not to be allowed to judge of our own circumstances and peculiarities, but must submit the most important part of the conditions of our labour to those whose conditions are widely different from ours, and who, knowing nothing of our circumstances, would force us to be guided by the changes they require in the hours of labour.

It will be observed that there has been no mention of local strikes except there be some peculiarity related to them. There is such in connection with this strike. It was of great importance to the Association and the maintenance of the rules. There had been numbers of illegal stoppages, and although the leaders and members at the lodges affected knew they were breaking the rule, yetthey persisted, and were enabled to carry a vote in Council that they should be paid from the General Fund. It was felt that once and for all the question should be decided, and it should be shown that where the constitution of the Association was violated the violation should entail forfeiture of benefit, or else of what use was it to have rules or Committee of Management? To go on in such a loose manner was to make the rules a byword and a mockery. It was time they should have the seal of reality, and be placed on a sure foundation, so that order should be maintained, or at least those who with open eye did wrong should know that their action would not receive condonement, and they be paid the benefit of the Association, as if they had obeyed its provisions.

That was the question to be decided. Should the rule be the guide, and the Executive Committee have the management, or should lodges be allowed to stop their colliery in opposition to the constitution, and suffer none of the consequences? The Washington case afforded the opportunity for the settlement, and that is the reason why it is made part of this history. The dispute arose about the application of an agreement made by themselves. The nature of the agreement is of no import now. The action of the lodge and its relation to the rule is what we have to consider. The manager put one interpretation on the agreement, the workmen another, and they were the signatories. Numbers of agreements had been disputed prior to that, and had been brought before Joint Committee or some other properly arranged tribunal, and managed by the agents, or Executive,in accordance with rule. Washington, however, set rule aside, disregarded the Committee, and stopped the pit on the 10th of August. On the 11th the corresponding secretary met their deputation in Newcastle, and told them they were acting illegally, and that they could not be paid from the funds. The deputation, however, were confident the Council would grant them strike pay, although they admitted they were breaking the rule. Other means were adopted to induce them to resume work. The lodge appealed to the Council for a grant; it was not put on the programme. The trustees objected to the treasurer paying the money. They had taken the opinion of Mr Atherley Jones previously. The question submitted to the Counsel was: "Supposing a lodge came out on strike in violation of the rule, without first having obtained the permission of the Committee or Council, would the fact that the Council, after the men came out on strike, approved of their action alter the position or liability of the trustees?"

The opinion was as follows:—

MR JONES' OPINIONAugust 30th, 1897.With regard to the question raised, whether, under the circumstances described, the trustees have power to allow payments to be made to the men on strike who have violated Rule 50, I am of opinion that they have no such powers, and any payment so made would appear to be a direct breach of trust. Nor do I think the position or liability of the trustees would in any way be altered by the subsequent vote of the Council approvingsuch payments. The wording of Rule 51 is quite clear:—"Any lodge ceasing work" "under the circumstances which have happened" "shall forfeit all claims on this Association"; and even though the whole Association were to vote in favour of strike pay being granted, I cannot see how the effect of that rule could be removed.

MR JONES' OPINION

August 30th, 1897.

With regard to the question raised, whether, under the circumstances described, the trustees have power to allow payments to be made to the men on strike who have violated Rule 50, I am of opinion that they have no such powers, and any payment so made would appear to be a direct breach of trust. Nor do I think the position or liability of the trustees would in any way be altered by the subsequent vote of the Council approvingsuch payments. The wording of Rule 51 is quite clear:—

"Any lodge ceasing work" "under the circumstances which have happened" "shall forfeit all claims on this Association"; and even though the whole Association were to vote in favour of strike pay being granted, I cannot see how the effect of that rule could be removed.

Standing upon that advice, the trustees refused to allow the money to be paid. The lodge requested the Executive to call a special Council to consider whether a grant should be given them. The request was refused, because, as the rules had been violated and the trustees had decided that no money should be paid, it was no use calling the Council, seeing, if the vote were given to pay, the decision could not be carried out. However, the question was brought forward at the conclusion of a Council, and the delegates decided to pay a grant equal to strike allowance, but the trustees refused to allow the money to be drawn from the bank.

The Executive then placed the position before the members. They said the giving of a grant was but a form of evading the provisions of the constitution. The decision of the Council placed the treasurer in a dilemma: either he had to refuse to pay, or face a prosecution in court for paying money contrary to rule. The Committee had, therefore, either to leave the treasurer to his own devices, or call the trustees together, and place the whole question before them. The meeting was held in the office of Dr R. S. Watson, who was one of the trustees. They decided to take the case to the Court of Chancery, and to inform the WashingtonLodge of their intention, and give them the opportunity of being parties to the case. Mr Isaacs (the Association lawyer) was instructed to write the lodge, which he did. He said he was instructed to inquire whether they wished "to be a party to the proceedings, and if so, to kindly supply me with the name and address of any one of your members whom you may appoint to represent the lodge."

After some negotiations, and with the view to make the matter mutual, the Executive agreed to bear the cost of the trial for both sides. The hearing did not take place until the 8th of February 1900, but in order that we may keep it in close connection it will be well to consider it here. It was heard in the Chancery Court, before Justice Cozens Hardy. The Association was represented by Mr I. Isaacs, its legal adviser, and the lodge by Mr C. W. Newlands of South Shields. There were able barristers on both sides. The judge decided:

If these men came within Section 22 it must be because these particular men must be considered deserving, and also within the objects of the Association. He thought unless there was something to strike them out the argument on their behalf was well founded. The real question was whether, although the language of Rule 3 defining the objects of the Association included them, they had not by 51 been removed. He thought that was the case. He did not think he could limit the effect of that rule so as to make it mean that they should forfeit only the absolute right to have 10s. per week under Rule 52, which it was admitted they had lost. He thought the exclusion applied not merely to claims as of right, but to all protectionfrom the Association, and they could not be deemed legally or properly objects of the benefits of the Association.

So far as the Executive and trustees were concerned that trial and decision were satisfactory, but the lodge said they wanted it taken to the Court of Appeal. So far as bearing the cost of the trial was concerned the pledge had been carried out, and the Committee were surprised when it was suggested to carry the case to a higher court. However, as they were desirous to have the case properly decided, and that there should be no room for doubt (the welfare of the Association being their great consideration), they agreed, and guaranteed the payment of the entire costs. The appeal was heard on November 11th and 12th, the Judges being Rigby, Romer, and Vaughan Williams.

A strong effort was made to reverse the decision. All the skill, plausibility, and sophistry of very able lawyers were used. The rules were purposely disparaged and travestied, in order that a prejudice might be created against them, but the judges unanimously agreed with the finding of the Court of Chancery.

This is a bare record of facts of a dispute and trial which was fraught with importance to the Association. It generated a great deal of bitterness. The leaders could have had no personal ends to serve. Their aim will be truly set forth by a quotation from theMonthly Circularfor November 1900.

MONTHLY CIRCULAR, 1900

(The Lessons of the Trial)

The trial is over, and, so far as any personal feelings are concerned, the sooner it is forgotten the better it will be for our Association. To guard and strengthen that should be our first thought and care. But while it will be beneficial for us to forget any attribution of ill motives, and evil speaking or ruffled feelings consequential thereto, we shall be wise men if we gather up the lessons which come to us. This battle has been fought for one purpose only, and that is to support the authority of the rules. To that end, and that alone, have our efforts been devoted. The great question at this moment is:

Whether it is better to have a set of rules which requires that the Committee of picked men (responsible year by year to the will of the members) should have a knowledge of, and be called in to assist in, the settlement of disputes before a large colliery is stopped, and a serious expenditure thrown upon the Association; or whether a lodge shall have a free hand to stop a colliery at will, and then run a chance of creating a favourable feeling, and receiving large sums from the funds, when, if the Committee had been consulted, the matter might have been settled; or if not, a strike entered upon legally.

Another lesson is that, having received the sanction of the courts to our rules, and having lifted them out of the uncertainty by which they were surrounded, we shall do well to keep them in the certainty in which they have been placed. It isvery clear that an attempt will be made to alter the rules which guide this matter. If so, a lax (and ruinous) state of things will be introduced. For the last two or three years the same attempts have been made, and again this year resolutions with the same object are sent in. The rules which place the affairs of the Association in the hands of the Committee (before a stoppage) have to be erased or mutilated, and rendered useless. Surely it is better, and more conducive to the welfare of the Society, to have our affairs placed on business lines, than to have a code of rules which will admit of loose procedure, and spending illegally large sums of money, which will be wanted whenever the depression of trade sets in.

My advice to you is to consider carefully every amendment which may come before you. Trades organisations will prosper most when they are founded upon, and guided by, business principles.

The Wages Question—The Compensation Act

The uncertainty which the Federation Board had pointed out as the inevitable result of the abolition of the Conciliation Board soon made itself manifest. There were continual demands being made upon the Federation Board to seek advances, but they felt how difficult it was to get reliable data upon which to found a claim. On March 22nd they gave the county an account of an interview they had with the employers on the 12th of that month. The suggestion as to the claim for an advance being made was not supported by any data, and when they met, the employers pointed out that the indications were in the direction of depression more than the expansion of trade, and therefore the Wage Committee could not recommend to the owners to concede an advance. That refusal the Board advised the workmen to accept until there was some better trade prospects.

"Like prudent men, and, acting upon the lines you would have us proceed upon, we are convinced it will be more hurtful than useful to initiate or press a demand for an advance unless the state of the markets warrant such a course."

Another meeting on the wages question was held on May 25th. A strike took place in South Wales in the beginning of April, the effect of which was felt in an increased demand for the class of coal produced in this district. Their supply being cut off consumers turned to other sources, and as a consequence there was a natural feeling of unrest in Durham among the workmen. They had the impression that the whole of the produce of the county would be affected by the demand, and therefore the increase in price would be an all-round one. The Federation Board met that "false impression which we fear rests in the minds of many of our members" in a statement they sent out on the 26th of May. They pointed out two very important considerations, which the generality of members would lose sight of. There was a large amount of coal sold under contract, which would not be affected by the temporarily increased price, even if all the output of Durham had been steam coal, but it must be remembered that only nine per cent. was of that class. They then gave a calculation to show how a rise on a small percentage would affect the whole. The steam coal being the only part feeling the increase, and that class forming only nine per cent. of the total, what would be its universal effect?

"Without contending for the accuracy of the quantities let us give a calculation which may suggest a key to the position. Of the nine per cent. of steam coal let us suppose two-thirds of it was sold under contract at a normal market price. We should then have only three per cent. of the entire output getting a higher price. Let us further suppose that this three per cent. secured an advance in the abnormal state of the market of 6s. per ton during the strike; we should only have realised a general increase equal to, say, 2.16d. per ton over the whole of the coals produced."

Considering, then, the purely temporary nature of the rise in price the Board agreed to accept an advance of five per cent.—two and a half on basis rates under the usual conditions, and, with the view of meeting the exceptional circumstances, a temporary advance of two and a half for six pays. The advances were to date back for a fortnight in each case, the understanding being that if the prices fell at the end of the six pays the temporary two and a half would be discontinued. On July 22nd the Board met the employers, when the temporary advance was continued for other six pays. A subsequent meeting was held on October 29th. The employers offered to increase the temporary advance of two and a half to five for a further period of six pays. The Board was willing to take the five per cent. if it were considered apermanent advance. The settlement agreed to was an advance of two and a half, and a continuance of the temporary advance of two and a half for six pays more.

During the Parliamentary session of 1897 the first Compensation Act was passed. The date of commencement was fixed for the 1st of July 1898. While the Act was under discussion the representative of the Durham Miners in Parliament urged strongly that, not only should facilities be given for the formation of Committees, but means should be adopted to induce employers and employed to take steps in that direction as a means of avoiding the friction and litigation which the new law involved. The idea of a Compensation Committee was from the very commencement very favourably received by the members of the Association, and the employers were as desirous on their part to join in the endeavour. There was a natural desire on the part of the Permanent Fund officials to formulate a scheme to strengthen their fund. It was found that the attempt between the Trade Unions of Northumberland, the Federation Board, and the Permanent Relief Fund to arrange a Scheme was a failure. A number of meetings of Joint Committees and Sub-Committees, representative of the various Associations, and between those Sub-Committees and the Employers, were held. The failure arose from the character of the proposition—that there should be an Insurance Fund, which would take over all the liabilities of the owners, and insure all the workmen, which, saidthe employers, was the primary condition. The Miners' Executive in Durham could not accept such a scheme, and they turned to the formation of a Committee representative of their Association alone, and the owners. Negotiations went on with the owners, and finally the Executive Committee asked for full power on lines which they indicated. This the county agreed to give, and an agreement was come to in time for the commencement of the Act on July 1st. The system of class average obtaining in the county lent itself to the formation and working of such a Committee. This the men readily adopted, and it was another illustration of the hold mutuality and compromise had on the men of the county as a whole. Some men would have made above the average wage, and have worked more than the agreed number of days, and as a consequence their compensation would have been greater, but it would have entailed a large amount of labour if it had been on an individual basis. But by the Committee arrangement the system worked automatically. In the formation of the Compensation Committee Durham stood alone. There was nothing like it in any other district or trade, and its action was of the greatest benefit to employers and workmen alike.

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