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: