A factory owner called Colfax refuses on principle to recognise union labour. Manners tells Jack that head office want to try to force the union on Colfax, and says that as a bet Colfax will give him a thousand pounds if the attempt fails. Using Eddy Morton to win the men's support, Jack threatens strike action. But he has to call the strike off when Colfax calls in the police. He suspects that Boothroyd from head office has tipped off Colfax. Jack tears up Manners' cheque for £1000 recognising it as a trick to implicate him in corruption. Bella is rushed to hospital with appendicitis.