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 a permanent 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. THE COMPENSATION ACT