CHAPTER IV.

ST JAMES STREET BAKERY.

A HINDRANCE TO THE PROGRESS OF THE SOCIETY—THE SEARCH FOR NEW

PREMISES—THE NEW BAKERY—RUNNING INTO DEBT—THE CHAIRMAN

RETIRES—MORE CAPITAL WANTED—SLOW PROGRESS—THE MANAGER

RESIGNS—JOINING THE WHOLESALE SOCIETY—PAYMENT OF BONUS

COMMENCED—MR BARCLAY RESIGNS—ADDITIONAL PROPERTY PURCHASED—MR

CAMERON RESIGNS—MR ANDREW BROWN BECOMES CHAIRMAN—BAD BREAD AND

DELIVERY DIFFICULTIES—FURTHER EXTENSIONS—MONEY DIFFICULTIES—MR

BORROWMAN RETIRES—BECOMING BISCUIT AGENTS.

Long before the end of the first year of their tenancy of Coburg Street

bakery the committee had come to the conclusion that if their business

was to grow and flourish they must remove to more suitable premises at

the earliest possible moment. As one of themselves put it, they

discussed “the present bakery as a hindrance to the progress of the

Society.” The result of this discussion was that a circular was issued

to the societies, in which the committee recommended the building of a

new bakery. During the months of October and November 1869 the question

was discussed on several occasions, and at least two special meetings of

the committee were held for its consideration. At the second of these,

held on 6th November, a sub-committee was appointed to look out for a

site, and a week later it was decided to write to Mr M‘Kay, of Alva,

asking his advice on the subject. There is no doubt that the matter was

urgent. The trade was growing rapidly, and there were numerous

complaints regarding late delivery of bread. The subject crops up in the

minutes again and again, and the manager is unable to get out enough

bread early in the day to meet the demand.

Still, the committee are cautious. They have now discovered that the

Society can be made a success; they have also gained some knowledge of

the difficulties which are to be encountered; and so, not content with

applying to the Alva Baking Society for information, they also get into

communication with the Dunfermline Baking Society, and receive a letter

in which that society’s bakery is described. Meantime, the sub-committee

appointed to look out for a site had not been idle. They had discovered

a building at the corner of St James Street and Park Street, Kinning

Park, which was for sale, and which they thought could be so altered as

to make suitable premises for the Society and, after due consideration

doubtless and careful inspection, although the minutes are silent on the

subject, the matter was brought before the December quarterly meeting

and purchase was approved of, provided the cost was not more than £400.

THE NEW PREMISES.

The building was purchased at once, and steps were immediately taken to

have it fitted up as a bakery. It was decided to erect four ovens at an

estimated cost of £210 for the four, while a part of the building was

fitted up as a stable. To-day, the fitting up of a bakery of this size

would seem quite a small matter and not at all a thing to make a fuss

over, but it is easy, nevertheless, to imagine the loving care with

which those old veterans watched the transformation which was taking

place; how they deliberated over the merits of asphalte as a

satisfactory material for the floor, and the utility of cast-iron

fittings as against wooden ones for the stable. The manager made a

special journey to Irvine to arrange at the quarry there for proper

stones for the oven soles, what time the sub-committee were arranging to

get estimates for tables and troughs for the bakery. By the end of

January the manager was able to announce that the stable was finished,

and was instructed to employ a man to take charge of it and attend to

the horses. At the same meeting it was agreed that the S.C.W.S. be

allowed stabling for a horse and van, and that they pay a fair share of

the expenses. Already, too, the new bakery was so far advanced towards

completion that the committee had begun to consider the question of

having a formal opening ceremony, and a supper, to which it was proposed

that “two or three members of the committee of each society within easy

distance should be invited, whether they were members or not.”

By the middle of March the manager was in a position to state that the

bakery “would be ready for business in two or three weeks’ time at

most.” At the same time it was decided to erect a house for the manager

on the property, the rent of the house to be considered later. At the

same meeting the committee had a visit from Mr Keyden, writer, who

stated that he had learned that the Society were desirous of raising a

loan on their property, and had called to find out what the amount was

and what rate of interest they were willing to pay. The secretary stated

that the amount would be from £400 to £500, and the rate of interest 4½

per cent. per annum. At a later meeting the question of the opening

celebrations was again considered, when, amongst other decisions arrived

at, was one to the effect that two gallons of “drink,” presumably

whisky, should be procured for the use of those who attended. It was

agreed that invitations be sent to societies who were members and to

others within a convenient distance, also to the employees of the

Society, past members of the committee, Mr M‘Kenzie, of the P.C.M.S., Mr

Marshall S.C.W.S., and such Wholesale Society directors as lived within

a suitable distance for attending. The decision about the whisky

evidently did not find favour with some people, for at the next meeting

of the committee the matter was again under consideration, “and after

mature deliberation it was then agreed to have none, as the committee

had been informed that there were many objections to the same.” In the

beginning of May the new bakery was opened for business.

But in thus following up the negotiations about the new premises, we

have been running ahead. The fourth quarterly meeting was held on 19th

February 1870, when some important changes were made in the method of

conducting the business. For the first year each society which was a

member of the Federation had a representative on the committee, and this

arrangement was continued by resolution of the quarterly meeting. The

whole committee resigned in order that it might be reconstructed, and Mr

Thomson was re-elected to preside over the business of the meeting. Some

of the regulations drafted that afternoon are amusing. It was decided

that each member of committee receive one shilling for every meeting of

the committee which he attended, along with travelling expenses; but it

was also decided that any member of the committee who was later in

arriving at a committee meeting than fifteen minutes after the time

fixed for the meeting should not only forfeit his allowance for

attending, but should also, unless reasonable excuse was shown, be fined

sixpence for being late. What was to happen if a member did not attend

at all was not stated, but no member of the committee was to be paid his

allowance unless he was present at the meeting.

THE CHAIRMAN RETIRES.

A large number of changes were made in the personnel of the committee at

this meeting. Mr Gabriel Thomson retired from the presidency, and Mr

William Barclay, also of St Rollox at that time, was elected president

in his stead. The other members of committee were Messrs Ferguson,

Barrhead; Gibb, Thornliebank; John Borrowman, Anderston; Kinniburgh,

Cadder; Mungall, Cathcart; and Shaw, Lennoxtown; with Mr James Borrowman

still secretary. At this meeting exception was taken to the propaganda

activities of the committee, for a letter from Paisley Equitable Society

was read to the meeting in which the Society was charged with trying to

injure that society’s trade with the Provident Society, and the

secretary was instructed to reply denying that such had been the policy

of the Society. It was also from that quarterly meeting that the

proposal came that a house should be built for the manager in the new

premises, in order that he might have the premises under his supervision

at all times.

MORE CAPITAL WANTED.

As the Society, at the end of the first year, had only a paid-up capital

amounting to £338, all of which was locked up in stock, fixtures, etc.,

it was evident that they required much more if they were to finance

their larger venture. The visit of Mr Keyden has already been referred

to, and ultimately a bond on the property was taken up through him, but

the committee were desirous of securing capital also from the societies.

These were written to by the manager, requesting them to increase the

amount of loan capital they had with the Society, and by the middle of

April six societies had increased their loans by an aggregate amount of

£275.

[Illustration:

M‘NEIL STREET PREMISES (1897–1903).

]

[Illustration:

CLYDEBANK BAKERY

]

The insurance on the new premises was fixed at £1,000, divided into £400

on stock, £300 on the buildings, and £300 on horses and vans. For

several years the Society continued to suffer from lack of capital,

however, and it was not until it had been in existence for nearly ten

years that the committee ceased to be troubled with financial worries.

On several occasions appeals were made to the delegates attending the

quarterly meetings that they would bring under the notice of their

societies the urgent need of the Baking Society for more capital, and

for several years a system of receiving loans from private depositors

was adopted, but this system was stopped, except in the case of

employees, when the Federation began to receive enough capital from the

societies to meet its needs.

SLOW PROGRESS.

The difficulty which arose from shortage of capital was not the only one

with which the committee was faced, unfortunately. Foreman baker after

foreman baker was tried, but still complaints of the poor quality of the

bread continued to pour in. Added to this there were the difficulties of

delivery. When the Co-operators of to-day see the vans of the U.C.B.S.

arriving at the various shops with the regularity of clockwork, they may

have some difficulty in realising that fifty years ago the problem of

prompt delivery was a very serious one, and one which engaged the

attention of management and committee almost continuously for several

years. In part, this was due to the fact that the baking of bread had

not been reduced in those days to a state of scientific accuracy, as it

is to-day, and partly it was due to the shortcomings of the human

element, which has always a tendency toward failure at the most

unexpected times and often in the most unexpected ways. The craze for

new bread was as great fifty years ago as it is to-day, but the

difficulty of delivering it was very much greater, and it was especially

great in the earlier years of the Baking Society’s existence because of

the fact that the majority of the societies in the outer area supplied

by the Federation were but small and could give but small orders, thus

increasing the cost of delivery until sometimes it transformed trade

which should have been profitable into a losing business.

So much so was this the case that, in the first two or three years,

society after society, which had joined the Federation and were anxious

to trade with it, had to be asked to withdraw because the cost of

delivery was so great that it could only be done at a loss to the

Federation. The first societies to suffer in this way were Motherwell

and Dalziel. At a later date, Vale of Leven Society, which had been

having their bread sent by rail, had to withdraw, and later still,

Lennoxtown were asked to make arrangements for getting bread elsewhere

as soon as possible, on the ground that the Baking Society was losing

eleven shillings every week through delivering bread to them by van.

As time went on, too, the position was becoming more and more difficult

for the manager. He does not seem to have been a strong man, or else he

had grown careless. At all events, at one quarterly meeting when the

criticisms of the delegates had been even more searching than usual, he

left the meeting before its close, and when the committee adjourned to

the committee room at the close of the meeting they found a letter from

him intimating his resignation. Whether it was with the idea of getting

a little of his own back, or because he thought that having engaged the

employees it was his duty to dismiss them is unknown, but when he took

his own departure he also dismissed the office and breadroom staffs, and

there was a little difficulty for a day or two until they were brought

back or others procured in their places. After discussion, the committee

decided that they would not advertise for a manager, but for a

confidential clerk and cashier, and Mr Robert Craig, then bookkeeper

with the S.C.W.S., was the successful applicant.

The trade was increasing slowly but steadily, and during the second year

averaged 90 sacks per week. Shortly after the removal to the new bakery

the Society had four vans on the road, and was supplying eleven

societies. In June of that year it was decided to take up thirty shares

in the S.C.W.S., and pay one shilling per share, but a month later this

decision was departed from in favour of one that the question of joining

the Wholesale Society be left to the quarterly meeting. This decision

had its origin most probably in the fact that the Society had no money

to spare at the moment for investment, as at the same meeting it was

decided that the manager make an effort to pay the flour merchant and

take flour into stock.

At the quarterly meeting it was decided that the Society should join the

S.C.W.S., and take up two shares for every society which was a member of

the Federation. At the same time, the members of the committee were

becoming more confident in their handling of the business, one evidence

of this being the fact that they were purchasing flour in much larger

quantities. The new bakery had only been in operation for six months

when the trade had increased so much that the erection of other two

ovens was being considered, and at the same time the reroofing of a shed

for the purpose of turning it into a flour store was agreed on, and the

manager was instructed to “get estimates of the cost of having the floor

laid with any material that would keep out rats.” It would appear,

however, that the cost was more than the committee could venture to face

at the moment, and it was not until the following April that the

question of new ovens was again raised, when all the societies were

written to on the subject and all agreed to the proposal of the

committee.

Meantime the second year had ended with the position of the Society

improving. The sales had amounted to over £9,000, and a dividend of

sixpence had been paid each quarter. Stock and buildings were valued at

£1,370, while the members held £279 in share capital and £709 in loans.

The nucleus of a reserve fund had been formed, and the property of the

Society had been depreciated by £150. It is interesting to note also

that with the beginning of the second year the Society had begun to pay

bonus on wages, a practice which has continued without intermission ever

since. The beginning was humble—the amount paid in this first year was

only £20, 17s.—but it marked the recognition of the principle that the

worker was something more than a mere hireling; that he was a being who

had something to do with the making of profits, and therefore had a

right to share in them.

The committee continued unremitting in their attempts to extend the

trade of the Society. Every complaint was inquired into closely, and

every little while a deputation was sent to one or other of the

societies with the view of inducing them to become members or to extend

their trade. It is interesting to note also that the cost of flour,

which had been 31/ in May 1869, had advanced to 41/ in April 1871. The

first quarter of the third year was a decidedly successful one, as it

showed a surplus over cost which enabled a dividend of one shilling per

pound of sales to be declared. The membership had increased to 14, and

the turnover to 102 sacks per week, an increase of 11 sacks per week in

one quarter. At the end of this quarter Mr Barclay retired from the

presidency, after having held that position for fifteen months, and Mr

Donald Cameron, Thornliebank, was elected to the chair. At the following

quarterly meeting it was agreed that, in future, tickets, with a

programme of business for the quarterly meeting, be sent to the

societies.

Before the end of the year a building in Park Street, adjoining the

Society’s premises, came on the market, and was purchased by the Society

for £735. At the same time the building of other two ovens was

undertaken, thus bringing the capacity of the bakery up to eight ovens.

The building which was purchased was in use as an engineering workshop,

rented at £67, 10s. per annum, and the purchase price included an engine

and boiler.

At the quarterly meeting which was held in December, the first mention

was made of a subject which was to engage the attention of many

quarterly meetings before being finally disposed of. This was a

suggestion by Johnstone Society that the Baking Society should consider

seriously the possibility of opening branch bakeries as their business

extended. Meantime, Vale of Leven Society had approached the Baking

Society with the view of having bread delivered to them by rail, and a

van had been fitted up for this purpose, so the Board came to the

decision to hold over the consideration of branch bakeries until they

saw what the results of conveyance by rail were going to be. The

delivery difficulty was getting more acute every week at this time, and

it was found that two societies which had ceased to take their bread

from the Society, and whose action had been described by the committee

as “utterly subversive of true Co-operation and detrimental to the

interests of the Baking Society,” had done so because of the

irregularity of delivery, and declared themselves “willing to begin

again as soon as they could see an assurance of a regular and steady

supply.”

In order to suit the convenience of Glasgow societies an arrangement

came into force in the beginning of 1872 whereby the Baking Society

undertook to deliver bread at the houses of the members of these

societies for an additional charge of 9d. per hour for the time spent in

this work. About the same time the question of baking biscuits on days

when the general work was easy was considered, and this new branch of

business was finally entered on. The turnover for the third year was

larger than that of the first two combined, being 6,341 sacks; an

average of 122 per week. Owing to the rise in the price of flour,

however, and in some degree also to the heavy costs of delivery, the

surpluses on the year’s trading showed considerable fluctuations; for

while the dividend earned during the first quarter was one shilling,

those for the succeeding quarters were fivepence, sixpence, and

threepence respectively. The Society was now quite a large property

owner, the value of the buildings as shown in the balance-sheet being

£2,421, while the value of live and other stock was £870. Several new

vans of a four-wheeled design had been built during the year in order to

facilitate delivery, and several new horses had also been purchased. The

cash value of the sales for the year was over £16,000, and the combined

share and loan capital was £1,411. Reserves had been increased to £54,

and buildings and stocks written down by £368 during the year.

In March 1872 Mr Cameron resigned from the presidency of the Society as

he had become an employee, and Mr Andrew Brown (Paisley Provident) was

elected president until the quarterly meeting, when his appointment was

confirmed. Meantime the Society was having some trouble with the last

pair of ovens erected. The gentleman appointed as inspector reported

that they were not according to specification, and were of less value

than had been contracted for. At the same time he suggested that an

endeavour should be made to settle the matter amicably, “as a lawsuit

would result in a loss to both parties”; which sensible advice was taken

by the committee, who, however, decided “to retain the money lying in

their hands until satisfied with the finish and durability of the work.”

They also decided to deduct £10 from the estimate price for departure

from the terms of specification. At a later meeting, however, it was

decided to meet the oven-builder half way and be content with a

deduction of £5.

For some time negotiations had been going on between the Society’s

tenant of the engineering shop and the committee on the question of

whether the boiler in that shop, which was the property of the Society,

should be kept in repair by the tenant or by the owners. The committee

contended that, according to the terms of the lease, the duty of keeping

the boiler and other machinery in repair devolved on the tenant, but as

a way out of the difficulty offered to sell the boiler and engine to

him. The matter was finally adjusted by the tenant taking over the

engine and boiler, and paying for them by an increase in rent amounting

to £5 per annum. At the quarterly meeting which was held on 2nd June

1872 the balance-sheet was submitted to severe criticism, the ground of

complaint being the smallness of the profit shown in view of the

increasing sales of the Society. For the first time in the history of

the Society the turnover had exceeded £2,000 for the quarter, but the

surplus was only £119, and the dividend sixpence, while nothing was

added to the reserve fund. The delegates to the quarterly meeting also

combined to express considerable dissatisfaction with the quality,

shape, and general appearance of the bread, and the committee were urged

to take energetic measures to place the Society in a better position in

this respect as well as in that of profit. At almost every meeting of

the committee complaints were being made about the quality of the bread

and lateness of delivery, and they were at their wits end to find a

remedy. Discussions took place meeting after meeting about difficulties

of delivery, varied every now and again by a discussion on the subject

of the high rate of expense. Investigations into the cost of baking were

set on foot, but with no results. A suggestion was made by Paisley

Provident Society that the discount allowed to the societies be reduced

from 10 per cent. to 7½ per cent. in order to cover losses in working,

but no action seems to have been taken in this direction at the moment.

In order to find remedies for the continuous complaints about the

quality of the bread and its delivery, a rearrangement of duties took

place; the stable foreman being made responsible for the delivery, and

the foreman baker for the quality of the bread, while the manager

continued to act as cashier and bookkeeper. These alterations did not

seem to make much difference, however, as complaints continued to come

in with as great frequency as before.

The arrangement which had been made to supply Vale of Leven Society with

bread had evidently not been working satisfactorily, for that society

intimated its intention of withdrawing from the Federation. The

adjustment of the terms of this withdrawal took many months of

negotiation. It was on 4th May 1872 that the committee received the

intimation that the society intended to withdraw from the Federation,

but it was not until 19th April 1873 that the final adjustments were

made and the matter settled. In this case there was dispute as to the

amount which the withdrawing society should pay for the delivery of

their bread by rail, this being finally adjusted by computing the cost

of delivery per 100 dozens to Barrhead and to Vale of Leven, and

charging the latter society with the difference. Another peculiar

practice of the Federation at this time was that of retaining for the

reserve and depreciation funds a proportion of the capital of retiring

societies. This was done even when the societies withdrew at the request

of the committee and against their own wishes, although in the three or

four cases where this occurred the percentage deducted was less than

that usually retained. In the case of Vale of Leven Society 7½ per cent.

was charged, while Dalziel and Motherwell societies were only charged 5

per cent.

By the end of the third quarter in 1872 a further extension had become

necessary in order that more storage room might be had, and it was

decided that the only way to get the necessary space was to build

another storey to the present flour store. The great difficulty was lack

of the necessary money, but it was thought that if the extension became

imperative a bond might be obtained to cover the cost. A short time

later a letter was received from the Anderston Society, in which a

protest was entered against any further extensions being made in the

bakery meantime. At this time the Society was in somewhat grave

difficulties for want of money, as, in addition to other debts which

were owing, their account with the Wholesale Society amounted to £4,000,

equivalent to nine weeks turnover. Inside the next fortnight, however,

the manager was able to report that he had paid £1,000 to the Wholesale

Society.

At this time the committee had under discussion the method of supplying

flour to the Society. It was alleged by some members of the committee

that the manager had not a free in ordering flour, as “another party”

had taken it upon himself to send in flour without the knowledge of the

manager. Mr Sturrock stated that he was aware of all contracts entered

into, but that on a recent occasion he had to cancel an order because he

found after his order had been given that flour was being sent to the

bakery without his knowledge. At the following meeting this question was

again taken up, and it appears from what transpired at that meeting that

Mr Borrowman was the “other party” referred to above. That gentleman

explained that the contracts were made through the Wholesale Society,

and no irregularity could occur if the manager sent his orders to the

Wholesale Society instead of sending them to the millers, as he had been

in the habit of doing. In the course of the conversation the chairman

pointed out that although, because of the fluctuations in the price of

flour which were taking place, they had for some time delegated their

power to make contracts to the manager and Mr Borrowman jointly—not

separately as some people had supposed—they still retained in their own

hands such powers, to be used as soon as they might think it right so to

do.

Early in the third quarter of this year Mr Smith (St Rollox) was

appointed assistant secretary, as Mr Borrowman was sometimes unable to

attend. At the quarterly meeting, which was held on 1st March 1873, Mr

Smith was appointed secretary, and Mr Borrowman retired from the

committee, after having taken a large share in the conduct of its

affairs from the inception of the Society. At the December quarterly

meeting the manager resigned, as already stated in the beginning of this

chapter, and Mr Robert Craig was appointed. The fourth year was not to

end without more trouble however. A special meeting was called on 28th

December 1872, at the request of Barrhead and Thornliebank societies,

and Mr Ferguson (Barrhead), who had been one of the first directors of

the Federation, placed his society’s case before the meeting. He stated

that his society was of opinion that the Baking Society was in an

unsatisfactory state, and on behalf of Barrhead and Thornliebank

societies placed eight propositions before the meeting with the object

of putting the Federation on a more stable basis.

PROPOSALS FOR BETTER WORKING.

The first proposition was that a manager be employed; but this was

defeated by an amendment that the management be left in the hands of the

committee. The second proposal was that the foreman baker should be the

party who should judge the quality of the flour before purchasing, the

quantity to be decided by the committee, and it was accepted, as was the

third—that no person be a member of committee who has anything to do

with the making or selling of flour to the bakery (but not to the

exclusion of operatives) so that the committee be left perfectly

untrammelled in their actions.

Another proposition was to the effect that the members of the Baking

Society’s committee should be elected for that committee only, and not

be simply delegates from the committee of their society; but as this

affected one of the rules of the Society it was not discussed. It was

also proposed that the committee should watch the purchases of societies

with a view to dealing with those who were not purchasing enough to earn

their fair share of profit, and considering whether they should be

allowed to continue as members of the Society. The committee pointed out

that they were already doing this, and the meeting agreed to the

proposal. Another proposal was to the effect that when the additional

shares had been called up the committee should purchase flour where it

could be had best. This proposal sounds as if there was some suspicion

in the minds of the proposers that the Society was being hampered in

obtaining the best flour for its purpose by lack of money, and as the

delegates gave a general acquiescence to the proposal it would seem that

the suspicion was fairly general. It certainly could be said for the

proposal that it gave the committee full power to do the best they could

for their Society.

Just before the end of the fourth year Motherwell and Dalziel societies

dropped out of the Federation at the request of the committee, as

although both societies were loyal purchasers, the cost of delivery was

so great that the Society was losing money on their trade. The

Federation still consisted of fifteen societies, however—viz.,

Anderston, Barrhead, Busby, Cathcart, Johnstone, Lennoxtown, Cadder,

Parkhead, Elderslie, Howwood, Eastern, Paisley Provident, Thornliebank,

St Rollox, and Avonbank—and other societies were being supplied with

bread. About this time, also, a new departure was made. The committee

had found that their biscuit trade was not a profitable one, and the

cashier was instructed to make inquiries as to the terms on which some

of the Glasgow biscuit manufacturing firms would supply them with

biscuits. It was finally arranged that Gray, Dunn & Co. supply them with

biscuits through the Wholesale Society, and this arrangement continued

for some time until a fire at the biscuit factory put an end to the

connection, when the trade went to Herberts Ltd.

During the fourth year the Society had made considerable progress, and

the trade for the year showed a substantial increase, but it had not

been very profitable. Indeed in the fourth quarter, after provision had

been made for interest and depreciation, there was nothing left to

divide, while nothing had been added to the reserve fund during the

year. The aggregate output for the year was 7,955 sacks, equal to an

average of 153 sacks a week, which was an average increase of 31 sacks

per week over the turnover of the previous year. The Society was still

much hampered in its operations from lack of capital; the total share

and loan capital being only £1,618. During the latter half of the year

the price of flour had been very high, reaching in the later months of

the year 45/6 per sack for the average quality used.

Yet, although there were still many anxious days ahead for the committee

and not a few lean years, with the close of the fourth year the Society

had been established on a firm foundation. Henceforth there were not the

same defects of management to contend with, and what difficulties did

arise were due to weakness in the societies which were customers of the

Bakery rather than to causes operating within the Federation itself. In

a later chapter mention will be made of some of the difficulties which

arose owing to the weakness of some of the societies which were members

of the Federation.

History of the United Co-operative Baking Society Ltd. · 第 4 / 21 章