ST JAMES STREET: CONGESTION.
A FALL IN MEMBERSHIP—RELATIONS WITH EMPLOYEES—CANVASSING FOR
TRADE—GOOD BREAD—GROUND ANNUAL PURCHASED—DIFFERENTIAL
TREATMENT—PRESIDENT AND TREASURER RETIRE—KEEPING DOWN
PRICES—OAKMILL FAILURE—A PECULIAR COMPLAINT FROM KINNING
PARK—FURTHER EXTENSIONS—COSTLY LITIGATION—TRANSFERABLE
CAPITAL—STILL FURTHER EXTENSIONS.
In the preceding chapter the decline in the turnover of the Federation,
and the circumstances to which that decline was due, have been detailed.
During the latter half of the tenth year three societies had withdrawn
or been paid out, and the membership of the Federation, which had
consisted of twenty-six societies at the beginning of the year,
consisted of only twenty-three at the end. For three years no new
societies had joined, and the increase which had taken place in the
trade was due entirely to increased membership of the societies which
were members of the Federation, and to a growing demand on the part of
the members for co-operatively produced bread. Two of the societies
whose names had been struck off the roll had been little more than
nominal members for years, and their loss scarcely affected the trade at
all, while, by the beginning of the eleventh year, the substantial
decrease which had resulted from the withdrawal of Barrhead Society
showed signs of being completely overcome. The turnover, which had
averaged 185 sacks per week in the last two quarters of 1878, as
compared with 226 in the third quarter of 1877, rose in the first
quarter of 1879 to 207 sacks, and by the end of that year was up to 216¾
sacks. The prospects for the immediate future were not too bright,
however, as Johnstone Society, in reply to a letter which had been sent
by the Bakery board, stated that they had definitely decided to begin
baking for themselves. On 21st February 1880 the committee had before
them the formal notice from the society of their withdrawal from the
Federation, which was accepted. At the same meeting Mr Green, who had
been the representative of Johnstone Society on the committee for eight
years, was thanked by the committee for the great interest he had taken
in, and the valuable services he had rendered to, the Baking Society. Mr
Small, Johnstone, who had been one of the auditors since the beginning
of 1876, had resigned six months earlier, in view of the fact that his
society proposed withdrawing from the Federation.
Notwithstanding the fact that the withdrawal of Johnstone Society was
imminent, and that the quarterly meeting of delegates had given no
decision on the subject when it was before them at the fortieth
quarterly meeting, the committee, by a majority of 9 votes to 2, decided
at their next meeting to proceed with the erection of two ovens
additional in the premises just vacated by their tenants. At the same
time the work of installing machinery was proceeding, and by the middle
of the summer the work was completed, as was also that of reslating the
bakery roof. The whole of this work was earned out at a cost of almost a
thousand pounds, and placed the Federation in a position to handle a
considerably larger trade than they were doing at the moment.
RELATIONS WITH EMPLOYEES.
At the same time they were considering the wages of their bakers and
vanmen. These workers had always been paid the wages current in the
trade, and now it was reported to the committee that the wages of bakers
in the city had been reduced by 2/ per week. The subject was discussed
on several occasions, being postponed month after month for lack of
precise information, and perhaps, also because they were loth to take
the step of reducing wages. Finally, a decision was arrived at. The
information was to the effect that nineteen bakers, eight vanmen and
stable hands, and four employees in the breadroom and office were
receiving a total of £46, 16s. per week. The details of the bakery wages
showed that the ordinary bakers were being paid 29/ per week; the
ovensmen, 32/; the stockkeeper, 33/; the biscuit baker, 35/; and the
under foreman, £2, 2s.; and it was agreed that the wages all round be
reduced by 2/ per week. The vanmen who had charge of two-horse vans had
their wages reduced from 27/ to 25/; one man who had 24/ had his wage
reduced to 23/; and those who were being paid 21/ had no reduction made.
Naturally, this reduction did not meet with the approval of the
employees, but for three months they do not seem to have taken any
action. At the end of that period, however, the committee were
memorialised by both bakers and vanmen, and the request made that their
wages should be brought up to the former figures. In reply to the
vanmen’s request, the committee said that after careful consideration
they could see no good reason why they should alter their former
decision. The reply to the bakers was couched in somewhat different
terms, but it was to the same effect. It was stated that the reduction
was entirely due to the state of the labour market in the country. From
the reports which had appeared in the public press, it seemed that
similar reductions had been made in other baking establishments, and, as
the Federation had advanced wages when advances were given elsewhere,
when reductions were made they were only following the usual course
which regulated wages in the trade. The minute continues: “But to show
that we have no wish to take any undue advantage of their position, if
they can establish to the satisfaction of this committee that the United
Baking Society are paying less than the standard wage current in
Glasgow, we as a committee would have much pleasure in reconsidering the
whole question at next meeting. Until that is done we adhere to our
former agreement.”
CANVASSING FOR TRADE.
Meantime, the committee had not been idle. They visited a number of
societies which were taking bread from them, but not all that they
required, with the view of getting them to place the whole of their
orders with the Society. They also visited several societies which were
within a comparatively short distance of Glasgow, and one of
these—Renfrew Equitable—was so pleased with the quality of the bread
supplied that after a comparatively short trial they agreed to take the
whole of their supplies from the Federation. This was cheering news, and
offset some of the other worries which were cropping up occasionally.
Flour at this time was rising very rapidly in price. During the quarter
it had risen by 10/6 per sack, the last rise being 4/6, and the bread
had, in consequence, to be advanced in price—the common bread to 7d. per
4–lb. loaf and the “fine” to 8d. Some trouble was also being experienced
with the engine which they had put in. New rings had been put on the
piston rod, and the engineer informed them that this would require to be
done about once in every six months. At first the committee were
sceptical, but inquiries elsewhere confirmed the engineer’s opinion. The
trade at this time was fairly prosperous, for the profit realised was
averaging about £30 per week. They were very particular also to see that
their financial position was kept on safe lines, and spent a good part
of one night discussing the allocation of the cost of the additions to
the property to the various accounts. The result was that they agreed to
add the cost of the new machinery to fixed stock account, the cost of
the new ovens and division wall to property account, to be depreciated
according to rule, while the cost of reroofing the bakery and refitting
the breadroom they decided to pay out of revenue. The latter decision
was challenged at next quarterly meeting, but on a division the
delegates by a large majority upheld the decision of the committee.
Towards the end of 1879 they made another comparison of their bread with
that of their competitors, and came to the conclusion that, as the
minute puts it, “the Society’s bread was superior both in shape and
colour, while the members had great reason to be satisfied with the
great improvement which had been made in the french and pan bread. A
unanimous expression of opinion was given that it had been the best
comparison they could remember where the Bakery bread stood in such a
pre-eminently favourable position.” After making due allowance for the
partiality of the committee for bread of their own manufacture, it
would, appear that the expectations of good to be derived from the
installation of machinery were being realised. The committee also this
year issued calendars to the societies. This had been done on at least
one previous occasion.
THE GROUND ANNUAL.
At one of the last meetings held in 1879 Mr Slater drew attention to the
fact that the payment of the ground annual for the land on which the
bakery was built was costing the Society £68 a year. He suggested that
this should be bought out, giving the probable cost as about £1,400, and
also that the necessary money might be raised by means of loans from
societies and individuals connected with the movement, pointing out that
it would be a good investment for the Society and a safe one for those
who lent the money. The suggestion was very favourably received by the
members of the committee, and was brought to the notice of the delegates
at the first general meeting of the Society. There the committee were
instructed to put it on the programme of business for the annual meeting
of the Society. At that meeting, however, the question was shelved for
the time being, a motion being agreed to “that they delay at present
taking any active steps to purchase the ground annual, and that the
matter be left in the hands of the committee to bring it up again when
they consider that the Society is in a position to do it with
advantage.” It was not until a meeting of committee held on 18th
November 1882 that the subject was raised again, and again this was done
by the secretary in the form of a definite motion “that steps be taken
to purchase the ground annual.” He pointed out that they were paying £68
per annum to persons outside who had no other interest in the movement,
and that this sum would be retained for the benefit of the Federation,
while the purchase would also assist to a certain extent in the solution
of the problem of what to do with their surplus capital. The other
members of the committee agreed, and it was decided to call a special
meeting at the end of the 56th quarterly meeting to consider the
question. At this meeting the committee were empowered to make the
purchase at once, and entered into negotiations with the proprietors,
with the result that after a considerable amount of negotiation and
delay the Society became the owner of the ground annual at a cost of
£1,652, 2s. 6d., being twenty-three and a half years’ purchase of the
sum paid annually. The Society was now so wealthy that the directors
were able to pay this sum from the bank balance without interfering with
their deposits in the Wholesale Society.
DIFFERENTIAL TREATMENT.
For some reason which is not very easy to understand after the lapse of
time the committee did not treat alike all the societies which withdrew
from the Federation. For instance, Barrhead Society had no deduction
made from its capital on withdrawing, while Johnstone Society, two years
later, was asked to pay 7½ per cent. toward the reserve and depreciation
funds. As the circumstances which led to the withdrawal of the two
societies were practically similar, and as the financial position of the
Federation had changed, if at all, for the better in the interval, to
find a reason for the differentiation is a little difficult. Parkhead
Society, which withdrew shortly after Johnstone, were charged 10 per
cent., but in this case the society had not been regular or consistent
customers of the Federation, and at the meeting at which intimation of
their withdrawal was given very serious complaints of their
unco-operative methods were made by the sub-committee.
PRESIDENT AND TREASURER RETIRE.
The year 1880 was notable for the retiral of two officials of the
Society who had given long and faithful service. Mr Alexander, who had
been treasurer almost from the beginning, was defeated at the annual
meeting held in March, Mr James M‘Murran, Glasgow Eastern, receiving the
greater number of votes. At the same meeting Mr Andrew Brown, who had
been president of the Federation from 1872, intimated that it was not
his intention to seek re-election, his reason for this course being that
his society, Paisley Provident, had decided to open a bakery of their
own. At the following quarterly meeting the delegates decided to present
Mr Brown with £30 as a token of esteem for the manner in which he had
conducted the business of the Society during the years in which he had
been president. This decision called forth a protest from Paisley
Equitable Society—in the first place from the committee of the society,
and later by the authority of a quarterly meeting—but the committee of
the Baking Federation held that as the decision had been that of the
delegates the matter was one in which they could not interfere, and in
due course the presentation to Mr Brown took place. Mr Alexander Fraser,
Busby, was elected president in succession to Mr Brown, and during his
term of office the Society entered on a period of prosperity much
greater than any which had been experienced hitherto.
By the withdrawal of Johnstone and Parkhead societies the membership of
the Federation now numbered only twenty-one societies, and for four
quarters there was no addition. But although societies did not join up
with the Federation very rapidly customers on a non-member basis were
coming in. First there was a request from Allander Society for supplies,
coupled with the promise that in a very short time an application for
membership would follow, and the committee agreed to supply them
provided that the accounts were settled fortnightly. In September the
Society was admitted to membership. Owing to the coming withdrawal of
Paisley Provident Society the committee took energetic steps to make
good the deficit in the output which would occur when this took place.
They selected Greenock district as a likely field to tap, with such good
results that Greenock East-End Society soon became purchasers and were
admitted to membership early in the following year. Port-Glasgow Society
followed, and after a little Ann Street Society, Greenock, became a
customer, to be followed shortly afterwards by Dalmuir, Clydebank, and
Cowlairs societies. Then came Clippens Society and Greenock Industrial.
To get in all these societies, however, had taken nearly two years, and
there had been decided fluctuations in the output during the period.
With the withdrawal of Paisley Provident Society, notwithstanding the
increased trade which came from Greenock, the number of sacks baked had
dropped from 235 in the 48th quarter to 186 in the 51st; then there
began a gradual rise until the 63rd quarter showed an average output of
267 sacks per week. The withdrawal of Paisley Provident Society had
meant a loss to the Baking Society of trade amounting to about £2,000 a
quarter.
KEEPING DOWN PRICES.
There is nothing new under the sun. During the war period it has been
common knowledge that the U.C.B.S. was responsible for keeping down the
price of bread when the other master bakers desired to raise it. This
was not an entirely new role for the Society to play, however. In 1880
it was successful in forcing the bakers of Glasgow to reduce the price
of bread within a fortnight after having raised it, because of the
Society’s refusal to raise the price also.
THE OAKMILL INVESTMENT.
The members of the committee had been somewhat chary about investing any
money in the Oakmill Society, although it was finally decreed by the
quarterly general meeting of the Society that this should be done. For
some time there had been reports that all was not well with this
society, and more than once questions had been asked in the Baking
Society’s general meetings on the subject. At length matters were coming
to a crisis, however, and a circular was issued to the societies by the
S.C.W.S. in which that society wished to be informed how much they were
prepared to give to Oakmill Society on loan. The Baking Society’s
committee replied that they could do nothing until they had consulted
the general meeting of members. The circular had been issued in June,
and in August the committee decided to withdraw the amount of interest
on their loan to Oakmill Society which had been allowed to accumulate,
and now amounted to £47. At this meeting it was also decided that the
question of a further loan be not brought before the quarterly meeting.
Shortly afterwards the society went into liquidation, and when the final
settlement was made the Baking Society found that they had lost £122,
11s. 8d. This sum was liquidated by being paid from the reserve fund.
In 1882 a disaster befell Barrhead Society, their bakery being burned
down, and during the time it was being rebuilt they got their bread from
the U.C.B.S. This meant an immediate increase of twenty sacks per week
in the turnover, which was of importance at the time; but what was of
still more importance, it served to lessen the breach which had opened
between the Federation and the society and paved the way for the return
of the society to the fold at a later date.
During the earlier years of the Society’s history the mention of letters
in “red ink,” sent as reminders to societies that their indebtedness to
the Federation was exceeding reasonable limits, was frequent in the
minutes, but in these later years such “red ink” circulars do not seem
to have been sent. At anyrate, mention of them no longer appears. This
did not mean, unfortunately, that all the societies were now
sufficiently alive to the need of paying their debts promptly and that
they had the cash at hand wherewith to pay them. The position of some of
the societies was still a matter of grave concern to the Baking
Society’s committee, and in one or two cases societies went into
liquidation. One such society was Allander, which had only joined the
Federation in 1881, and which went into liquidation towards the end of
1883. From this society they got one shilling in the pound. Another case
was that of Petershill Society, which went into liquidation early in the
same year and which had paid its debt to the Baking Society in full.
At one time there was trouble with Kinning Park Society of a peculiar
kind. The committee of that society sent a letter to the Baking
Society’s committee, in which it was stated that the impression in that
society was “That if a situation is wanted in the Bakery, the most
effective way to secure it is to denounce Co-operation, and the Kinning
Park Society in particular.” The board, in discussing this letter,
expressed the opinion that it was a matter with which they had nothing
to do. It was no business of theirs where their employees did or did not
purchase their goods. This sound business rule is one which is still in
operation in all well-regulated societies. At the same time, it must be
admitted that when a man is working for a principle as well as for a
livelihood, his work is likely to be better done. There are still
workers in the movement, however, who, while professing to work for it,
treat it worse than they would be allowed to treat a private employer,
by denying it the efficient, loyal, and painstaking service which they
would be compelled to render for wages alone. No more was heard of
Kinning Park complaint. The terms of the letter were probably an
exaggeration of whatever grievance there was.
FURTHER EXTENSIONS.
For some years the fluctuations in the trade of the Society had been
such that further extensions had been unnecessary, but, by the end of
1882, the congestion had become so great that it was necessary that
further baking accommodation should be procured at an early date. This
raised a debate as to the respective merits of increasing the oven
accommodation at St James Street or putting down a branch bakery at
Greenock to supply the societies in that area. The societies in the
Greenock and Port-Glasgow area were all members of the Federation, but
there were both difficulty and expense entailed in sending the bread
from Glasgow, and, especially in winter, when there was fog on the
river, there was occasionally irritating delay. The result of the debate
was that a committee was appointed to consider the different schemes and
report.
When the special committee reported on the various points which had been
remitted to them to discuss there was considerable difference of opinion
amongst the members of the Bakery board as to which was the best plan to
adopt. Finally, on a vote being taken, it was agreed, by a majority, to
recommend to the general meeting the erection of a branch bakery in
Greenock. When the question came before the delegates at the quarterly
meeting, however, the scheme for a branch in Greenock was not adopted,
and it was decided to proceed with the erection of two additional ovens
at St James Street.
In 1884, however, the trade was again outgrowing the accommodation, and
in November of that year the committee decided to rent a bakehouse in
Scotland Street in order to relieve the congestion. The membership of
the Federation was again up to 26 societies, and the output at the end
of 1884 was 281 sacks per week.
For a considerable part of this period the Federation were buying much
of the flour they used elsewhere than from the Wholesale Society, and
discussions on the subject took place from time to time. The contention
of the Bakery board was that they were being asked by the Wholesale
Society to pay considerably more for flour than they could buy the same
quality for elsewhere, and from the minute of an interview which took
place between representatives of the two boards, it appears that the
Wholesale representatives agreed that this was the case at the time. The
Wholesale board could not see their way to make any alteration at the
time on their method of charging, however. Nevertheless, it is
gratifying to know that in a short time the Wholesale Society was in a
position to meet competitors on level terms, and towards the end of 1884
a large proportion of the flour used was purchased from the Federation.
COSTLY LITIGATION.
Early in 1884, the Society became involved in a lawsuit. An accident
took place through which a horse belonging to the Glasgow Tramway and
Omnibus Company was killed, and as it was found impossible to come to
any arrangement which would be satisfactory to both parties, the
Sheriff-Substitute for Renfrewshire was called upon to decide. The
committee were agreeable to take responsibility for the accident, which
had been caused by one of their horses running away while being unyoked.
The Tramway Company valued the animal killed at £35, while the
veterinary surgeon employed by the Society to value it immediately after
the accident placed its value at £16, but the Tramway Company manager
refused to make any concession. After the dispute had dragged on for a
month, during which the case was taken into Court and the Society lodged
£20 in full of all claims, the Tramway Company’s agent offered to try
and induce his clients to accept £30 in full of all claims, each party
to pay their own expenses. This offer the Society refused to accept, but
when the case came before the Sheriff-Substitute he decreed for £35; at
the same time passing severe strictures on the method in vogue at the
bakery when horses were being yoked and unyoked. An appeal to the
Sheriff-Principal was lodged, but he also decided against the Society,
with the result that, instead of settling for £35, they had also a heavy
bill to pay for expenses.
At the quarterly meeting held in June 1884, some reorganisation of the
work of the office took place. As a preliminary step, the office of
treasurer to the Society was abolished. With the exception of a short
period at the beginning, this office had been held by two men—Mr
Alexander of Paisley and Mr M‘Murran of Glasgow Eastern Society. At the
meeting at which the office of treasurer was abolished, an attempt was
made to make all the capital of the Society transferable, but this
proposal was defeated by a narrow majority; fifty-eight delegates voting
for the proposal and thirty-two against it. As a two-thirds majority was
necessary, the vote in favour was six short of the necessary number.
TRANSFERABLE CAPITAL.
During the summer of 1884 the Society was experimenting with a new form
of barm, produced by a patent process. The results of the experiments,
however, were not satisfactory. The new barm was found to be no
improvement on the old, while the recipe would cost £5, and thereafter
there was to be a royalty of a halfpenny per sack of flour used, which
was to continue for a year, so the committee decided that no advantage
would accrue to the Society by adopting the new system. About the same
time the committee were in correspondence with Mr E. V. Neale on the
question of the best method to be adopted for making the loan capital of
the Society secure. They considered the information they received from
Mr Neale so valuable that they decided to print it and send a copy to
each member society.
Notwithstanding the difficulties with which they were meeting,
consequent on their shortage of oven accommodation, the committee were
ever zealous in their endeavours to get new trade from societies which
were not members and to increase the trade of those which were. During
the summer months they caused a number of letters to be sent to
societies, requesting that deputations should be received, and by this
means they were able to secure increased trade from some of the
societies which were not as loyal as they might have been. Arising out
of the correspondence with Mr Neale, it was agreed at the September
quarterly meeting in 1884 to appoint a special committee to go into the
whole question of the capital of the Society, with special reference to
that held on loan, and with power to consult a Scottish legal authority
on the subject, the committee to report to the December quarterly
meeting. The special committee consulted the Lord Advocate on the
subject, with the result that, at a special meeting which was held in
March of the following year, the whole share capital of the Society was
made transferable, while the interest on loans was reduced from 5 per
cent. to 4½ per cent.
STILL FURTHER EXTENSIONS.
It was becoming increasingly evident that the St James Street bakery had
reached the limit of its usefulness to the Society. Although biscuit
baking and the baking of pastry and smalls had been transferred to the
Scotland Street premises, it was becoming impossible for St James Street
to meet the demand for bread, and therefore another small bakery
situated in Hill Street was rented for a time. This was only a temporary
arrangement, however, and could not be expected to continue. The Bakery
was now turning over considerably more than 300 sacks of flour per week,
and the trade was increasing at such a rapid rate that it was
practically impossible to keep pace with it in the premises as they then
were. The need for a new bakery was clamant, and much consideration was
given to the question ere a decision was arrived at. That decision, when
come to, proved to be the most momentous in the history of the
Federation, and may well form the subject of another chapter.
[Illustration:
1. DANIEL H. GERRARD. J.P.,
President.
2. JAMES BAIN,
Secretary.
]
[Illustration:
AUDITORS
1. WM. H. JACK, F.S.A.A
2. JOHN M. BIGGAR.
]
During practically the whole of the period which is embraced in this
chapter, two gentlemen, still well known, active in the movement and
highly respected—Messrs Allan Gray and Robert Macintosh—acted as
auditors for the Federation, and during their period of office made
several suggestions affecting the financial stability of the Federation,
which, when put into operation, helped materially to make it the strong
concern financially that it is to-day. In particular, they were the
means of getting the depreciation placed on a sounder basis than it had
been for some time. Investigations which took place more than once had
the result of showing the committee that the rate of depreciation was
not enough, as the book value of fixed and live stock and machinery was
greater than the valuation showed that it should be. Ultimately, this
was put right, and the finances of the Society were established on a
firm footing.