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.