A number of employees returned to their work at the B.-A.T. Pootung factory on Wednesday, but many more remained out, and the strike continues, The directorate ig finding it a little difficult to ascertain precisely why many still decline to work. An invitation was received from an organization of unknown origin to arbitrate upon out-standing points, and to this the reply has been made that the management. has already done its best to secure arbitration. The latest representatives of the employees put forward two persons, who are "outsiders" to explain and urge their requests, but when it came to a discussion these representatives were unable to bring forward any points upon which they considered the company had taken an unjust stand, and they failed to bring back the work-people.
The Chief of the Chinese police was kind enough to volunteer to arbitrate and, as he was an impartial person, the company very readily accepted this offer, but he also was unable to arrange matters. The company therefore considers it useless to make any further attempt to arbitrate, and in their view nothing is tobe gained by further discussion until tha factory is at work again.
At 8 o'clock on Wednesday morning the factory was closed to all who were unwilling to resume work. If thosd people now wish to return they may do so as new employees, the company reserving the right ta re-instate them in their old positions, and not pledging itself to restore any privileges dependent upon previous service.
who are still out—some 7,000 employees are affected—are at variance with the company on the question of wages. The position taken by the company is that already it is paying wages equal to those paid by any other reputable firm in Shanghai. But the ques-
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