The dispute about the deputies opened the year. A very lengthy correspondence took place on the subject between the Employers' and Miners' Associations. On January 23rd the whole of it was sent to the lodges. They were informed that the Committee had done all they could to avert a conflict on the question. In keeping with a resolution of Council, the owners had been offered arbitration, which they had refused. The resolution referred to contained the alternative of giving the whole of the notices providing arbitration was refused. Now, to carry out the instructions contained in that resolution the Committee forwarded the ballot tickets for the purpose of taking the vote in accordance with the rule. They concluded by saying: "Whatever the result may be arising out of this case the entire onus of blame must rest with the owners themselves." A resolution was placed on the programme for Council on February 3rd by the ex-Committee asking "that the deputies who are still with us be paid the 6 per cent. out of the General Fund of the Association," but it lost. In addition, the subject was laid before the Central Board of the Miners' National Union. They expressed regret and surprise at the action of the employers in paying one portion of the deputies more than the others, and were of the opinion "that there can only be one object in view in this policy, the disruption of the Miners' Union. The Board earnestly appeal to the mine owners to withdraw from the position they have taken up. Should they fail to do this the Board will feel called upon to ask the members of the National Union to yield all the support to the Durham Miners' Association they can under the circumstances." Nothing further was done in the matter during 1877 except an occasional Council resolution. We shall, however, meet the same question in a few years. THE FIRST SLIDING SCALE Early in the year the Association was entering seriously into a new phase of our industrial relation with the employers and taking another step in the path of amicability by the arrangement of the sliding scale. For some time there had been an inclination in that direction. By the Minutes of the Executive Committee members were informed that negotiations were proceeding with a view to establishing a scale, and at the Council meeting held on December 9th, 1876, the following resolution was on the programme:--"Seeing that coals are up, we ask for 25 per cent. advance." The decision was that the question rest over until the sliding scale question is settled. On February 16th a letter was received from the employers containing the following resolution:--