CHAPTER VI.. St James Street: Developments.

ST JAMES STREET: DEVELOPMENTS.

IMPROVED MANAGEMENT—PRIVATE LOANS—IRREGULARITY OF ORDERS AND OTHER DIFFICULTIES—A NEW FOREMAN BAKER—SHORT WEIGHT IN FLOUR—DELIVERY DIFFICULTIES CONTINUE—UNINFORMED CRITICISM—AN ECHO OF THE IRONWORKS FAILURE—NEW MEMBERS—AMENDING THE RULES—EXTENSIONS—MANAGER RESIGNS: SECRETARY APPOINTED—OAKMILL SOCIETY—APPEAL FOR FUNDS—TRADE AND FINANCIAL POSITION IMPROVING—ANDERSTON SOCIETY’S FAILURE—GOOD NEWS—MACHINERY INSTALLED—BECOMING RICH—TEN YEARS’ WORK.

In tracing the development of the agitation for and against the establishment of a branch bakery we have been running ahead of the calendar. A new cashier, who was virtually manager of the business, had been appointed in the last days of 1872, and during the next two and a half years he carried on the business with as much success as the conditions under which he was compelled to work permitted. In these two and a half years he inaugurated a system of private loans to the Federation for the purpose of increasing the working capital of the Society; the smallness of the capital having been until then the greatest difficulty under which the Federation laboured; and so successful was this venture that by April 1875 the Society was in a position to deposit £500 on loan with the S.C.W.S., while six months earlier he was in a position to recommend to the committee that the acceptance of private loans except from those who had already deposits with the Society, and from the employees, be discontinued; a recommendation which was put in force by the committee a month later.

In other ways, too, Mr Craig brought prosperity to the Federation. He found it in a position of peril. For a long time after his appointment he found himself in the position, meeting after meeting, of having to present to the committee accounts which had been incurred by his predecessor without being able to check them in any way. One of these, presented in 1874, had been incurred from 1870 to 1872, and the explanation offered by the contractor was that he thought the U.C.B.S. and the S.C.W.S. were all the same, and had kept the invoice back until the building was finished. Mr Craig was given the job of arranging on the best terms possible. For several years the difficulty already alluded to, that societies did not pay their accounts promptly, continued. This was particularly the case with two of the societies which were in very low water about this time, one of them eventually succumbing. There was also continuous difficulty about the maintenance of sales. Sometimes a society would take bread for a number of weeks or months, and then cease all at once without any reason being given. At other times there would be a series of complaints about the quality of the bread and the reluctance of members to purchase, and investigation showed that these complaints emanated from the shopman and had very little foundation in fact. In some cases the shopman was the society, the committee seeming to exercise little or no supervision; while in other cases there was, of course, genuine cause for complaint owing to bad or irregular deliveries or to barm going wrong with the baker. Such causes were not sufficient to account for the constant stream of complaints which were launched at the heads of the committee, however, and doubtless close investigation would have shown that many of them had their origin in a desire on the part of salesmen to do business with firms which made it worth their while. With the appointment of Mr Lang as foreman baker there was certainly a decrease in the number of complaints, and the sales improved.

A discussion which took place at a committee meeting in June 1873 showed that there was not only a dispute with Barrhead Society, a deputation having been sent to that society’s meeting and been refused admission to the meeting, but also that the Baking Society’s committee had not yet been placed on a satisfactory basis. The chairman stated at the committee meeting that his committee had only heard of the Barrhead meeting casually, and expressed the opinion that it was the duty of the member of the board from Barrhead Society to have informed the Bakery board of the fact that it was being held. On the other hand the Barrhead delegate said that he had forgotten all about it, and that in any case he had no authority from Barrhead committee to say anything on the matter. It would appear that a long discussion took place on the subject, and especially on the position of members of the Baking Society’s committee in relation to the work of that society, the opinion being freely expressed that to members of the board of the Baking Society the affairs of the Baking Society should be the first consideration. The subject was ultimately dropped, on the understanding that it was the duty of any member of the Baking Society’s committee to inform that board forthwith of anything which affected the interests of the Society.

About this time, also, some trouble was being experienced with one of the millers who were supplying them with flour. Several sacks of flour had been weighed by the manager, and each had been found to be short in weight to the extent of several pounds. The result was that the committee determined to purchase a “beam and scales” in order that the flour might be weighed as it came into the bakery, and meantime it was decided that at present no more flour be purchased from the defaulting miller. At the same time a claim was made against him for short weight. About this time, also, some difficulty arose with respect to the delivery of bread to Lennoxtown Society. For some time the committee had been of the opinion that they were losing money by delivering bread to this society, and several suggestions had been made as to the most economical means of delivery. No one of these seemed to find favour with the Lennoxtown people, however, and that committee ultimately decided to ask the Bakery board to supply them with bread by means of the van as usual, and, if necessary, to retain the dividend. The Bakery committee, however, after considering the matter, came to the conclusion that, apart from the principle, this method would not pay them, and decided to make no alteration. The secretary was instructed to reply to this effect, and also to state that the Bakery would stop supplying bread to Lennoxtown as soon as that society was able to make other arrangements.

At the quarterly meeting the attention of the delegates was called by the chairman to the cases of one or two societies in Glasgow which were members of the Federation, but which purchased little or no bread from the Society. At this meeting, also, attention was again called to the needs of the Federation for more capital. The work of Mr Craig in securing individual depositors had not yet begun to have any noticeable effect on the finances of the Society. At this time propaganda work was engaging the attention of the committee, and a conference of societies in and near Glasgow was held for the purpose of inducing them to become better customers of the Federation. At one of the meetings about this time the chairman suggested that another meeting place be got for their committee meetings, as the business was being overheard where they met at present. Societies were now beginning to join up more freely. Applications from some of the outlying societies were held up for consideration, but in November 1873 Kinning Park joined the Federation, taking up 100 shares, and a short time later London Road Society became a member.

UNINFORMED CRITICISM.

About this time the editor of the Co-operative News seems to have been criticising the Society’s balance-sheet, for a discussion took place in committee on the subject, and it was duly minuted that “the remarks of the editor with regard to the balance-sheet were wrong; that it had been the same with the quarter previous, and he considered the editor should make himself better acquainted with the circumstances of the business before commenting on it.” At this period the Federation had been caught on a rising market with a very small stock of flour on hand. The master bakers of the city had a meeting, but two of them refused to raise the price of bread, having evidently large stocks in hand. Flour was eight shillings a sack dearer than when the price of bread had been fixed. It was decided to maintain the price of bread in a line with Glasgow prices; but it was agreed that if a general rise took place in the various districts the members of committee should notify the manager so that he could act accordingly.

At the meeting of the committee which was held on 17th January 1874 the overdrawing by the Ironworks of their account with the Wholesale Society was referred to. It was stated that the amount overdrawn was £9,000. A lengthy conversation took place as to the advisability of having a more thorough check upon the transactions of the Bakery manager so as to prevent the possibility of a like occurrence; but, after the matter had been discussed in all its bearings and various plans had been suggested, no definite decision was arrived at, except that the finance committee were instructed to make a regular inspection of the books and use every means to ascertain the real position of the Society. The delegates to the Wholesale meeting had also reported that it had been agreed by that society to charge 5 per cent. on overdue accounts after a certain date. This was going to hit the Baking Society heavily, and the committee expressed the opinion that they should not be liable as they were only receiving half bonus. There is no reason given, however, why they should be receiving only half bonus, as they had become members of the Wholesale Society quite a long time previously. Bridge of Weir and Kilbarchan societies were admitted members of the Federation, but the admission of Milngavie Society was held over for a further period. It was decided in February 1874 to recommend the delegates to the quarterly meeting to amend the rule relating to the representation of societies on the committee, as it was thought that with the increase in the number of the societies who were members of the Federation the committee was becoming unwieldy because of its size. From the beginning each society which joined the Federation had been entitled to be represented on the committee. There were now twenty societies in the Federation, and, although the average attendance at a committee meeting was about fourteen, the more the membership of the Federation was added to the larger the committee would become. After having been considered by the societies for a year, the recommendation of the committee was agreed to, and the membership of the committee was fixed at twelve—president, secretary, treasurer, and nine representatives of societies.

The trade of the Federation had fallen off somewhat during the fifth year, owing to the fact that several of the societies had been asked to withdraw and that the trade of one or two others was declining. The turnover was 7,514 sacks, as compared with 7,955 for the preceding year, thus showing a decline of 441 sacks. The average price of bread had been slightly higher, however, for the cash value of the goods sold was £22,153, an increase of £131. The average dividend paid had been 5½d.—4d., 6d., 6d., and 6d. respectively for the four quarters—and the reserve fund had been more than doubled during the year, while depreciations to the amount of £719 had been made. The capital of the society was still very small in proportion to the turnover, however, being only £2,300. The societies themselves were mostly small; they had not very much capital to spare for investment, and those of them which were members of the U.C.B.S. had to divide that between that Federation and the S.C.W.S. Added to this was the fact that several of the societies which were members of the Federation were in a position which was gradually becoming more hopeless, with the result that not only were they unable to invest in the Federation, but they were barely able to pay for the bread they bought.

EXTENSIONS AND A FIRE.

At the quarterly meeting which took place in December 1874 it was decided that the erection of the flour loft, which had been held over for more than a year, should be proceeded with, but a disaster which befell the Society at the end of the month put a stop to the carrying out of that particular proposal for some time. This disaster was the burning down of the premises adjacent to the bakery and the property of the Society, which were being utilised as a bolt and rivet works by tenants of theirs. The reconstruction of this property occupied the attention of the committee for the next few months, and it was not until May that estimates for the completion of the flour loft were received and the contracts placed. When the accounts for the rebuilding of the burned-out property had all been submitted it was found that they were £70 less than the sum which had been received in insurances on the property, and the manager was presented with £5 and was granted a fortnight’s leave of absence. The insurance on the property and stock of the Society was now increased by £2,000 to £7,000.

RESIGNATION OF MR CRAIG.

At the next meeting of the committee, held on 10th July 1875, a letter was received from Mr Craig, in which he stated that owing to a sudden change in health he was compelled to resign his position as cashier and manager. The committee were unanimous in their expressions of regret, and a deputation was appointed to meet with Mr Craig and learn whether it would be possible for him to return to his position in the event of assistance being given in the office. At the next meeting this deputation reported that they had met Mr Craig, who stated that the medical advice he had received was that he should leave the country, and that he had decided to do so. They had therefore advertised the position. The committee thereupon recorded their appreciation of the work which Mr Craig had done for the Society in the following terms:—

“While we accept Mr Craig’s resignation as manager, we desire to record our heartfelt sympathy with him in his circumstances and the high esteem in which he is held by all the members of this committee as an honest and upright individual, an intelligent and energetic man of business, and a faithful servant who, for the past two and a half years, has conducted the business to the great pecuniary advantage of all the members connected with it. While we regret the loss of such a valuable servant, we hope that he may secure in the country to which he is emigrating a restoration of health and strength, together with a due amount of worldly prosperity.”

Alas, it was not to be. No improvement took place in Mr Craig’s health from his residence abroad, and in a short time he was back in Glasgow again, his death taking place in the summer of 1877.

At the August quarterly meeting of the Society a grant of £20 was made to a testimonial which was being got up for Mr Craig, and the secretary was instructed to record in the minute of the proceedings that the grant was made

“In recognition of his sterling worth as a man and the able business abilities he showed by the successful manner in which he conducted the affairs of this Society during the period he held the office of manager to the Society.”

Mr David Smith, who had been acting as secretary since Mr Borrowman had resigned from that office, was appointed manager, and Mr Thomas Slater, London Road Society, was elected secretary.

A BAD INVESTMENT.

In the middle of September there came an appeal from the Oakmill Society that the Baking Society should invest in its funds. The matter was delayed for one reason or another, but finally, at the quarterly meeting which was held in March 1876, it was agreed to invest £200. At this time the financial position was improving every week. The profits on working were well over £30 per week, and the committee were not so chary of spending money as they had been in earlier years. Among other donations to which the Society agreed was one of £20 towards the expenses of the Co-operative Congress which was to be held in Glasgow in 1876. Several of the societies which were affiliated with the Baking Society were in a bad way at this time. Blairdardie Society had had their premises destroyed by fire, and a deputation was received by the Bakery directors. The deputation explained that the purpose of their visit was to get some consideration shown to them by giving them their regular supply of bread until they were able to complete their arrangements. The committee agreed that Blairdardie should receive their usual supply of bread for a month, at the end of which period the question would be further considered. Anderston Society also had fallen on evil days. For some time the Bakery committee had had considerable difficulty in securing prompt payment by that society for bread supplied to it, and early in 1876 they reduced by half the number of shares they held in the Bakery, as their membership was declining. They struggled on until the middle of 1878, but after taking stock in July of that year they gave up in despair and closed the shop. At the time when they closed down they were owing the Baking Society some money, and Mr Smith transferred that amount from their share account to their goods account. The chairman had, however, some doubt as to the legality of this action, and it was afterwards decided that should any of the other creditors object the Society would not take any action to uphold their claim. The debts of the Anderston Society were taken up by the Wholesale Society, however, and after a considerable amount of correspondence between the committees of the two Federations the balance of the share capital of Anderston Society was transferred by the Bakery committee to the Wholesale Society, the latter Federation agreeing to relieve the Baking Society from any responsibility they might incur by so doing.

At the beginning of the year 1878, Barrhead Society ceased to purchase bread from the Baking Society. This meant a reduction in turnover of nearly 600 dozens of bread every week, and for the time being put an end to all thoughts of branching out. Other societies, too, were going the way of Anderston, and about this time the most remarkable point in the minutes of the Baking Society is their record of the names of societies which have long ceased to have any separate existence. Maryhill, Petershill, Bloomvale, Anderston, and Southern all lived a more or less precarious existence during the first decade of the Federation’s existence, and all disappeared. One result of the failure of Anderston Society was an alteration in the rules of the Baking Society for the purpose of giving a lien on the shares of a debtor member. It was also decided about this time that societies which had ceased to be purchasers be removed from membership, and have their shares paid out to them. It was at the quarterly meeting held in December 1876 that the first mention is made of a practice which has since that time gladdened the hearts of many hundreds of weary delegates. At that meeting, Mr Neil, Kilbarchan, moved, and Mr M‘Duff, Linwood, seconded a motion: “That at our quarterly meetings in future the delegates be supplied with tea.” The motion was agreed to unanimously. The tenants of the bolt and rivet works in property owned by the Society wished for an extension of their lease or, alternatively, to be allowed to break their lease and remove, and the Society agreed to allow them to remove provided the removal was carried out in three months. At the end of May 1877 the Society’s stable in St James Street was destroyed by fire and six horses were killed; at the same time some doubts were being entertained as to the stability of the bakery itself, as it was feared that the back wall was too weak for the load of flour it had to bear. Then the members of the committee were again being worried with complaints about the quality of the bread, and especially of the fine bread. When they came to compare their bread with that manufactured by competing bakers, however, they usually were of the opinion that the bread they were baking was as good as any.

PAST PRESIDENTS

1. GABRIEL THOMSON. 2. WM. BARCLAY. 3. DONALD CAMERON. 4. ANDREW BROWN. ]

PAST PRESIDENTS

1. ALEXANDER FRASER. 2. JOHN FERGUSON. 3. DUNCAN M‘CULLOCH. 4. DANIEL H. GERRARD. J.P. ]

GOOD NEWS.

At one of the meetings of the committee, held towards the end of 1877, an interesting report was given by the Johnstone representative, which was not without its humorous side. Nearly a year earlier the Bakery committee had installed machinery for biscuit baking, and had been building up a good trade. Nevertheless, the Johnstone committee had thought it necessary to inquire into complaints which were being made by their members. The biscuits manufactured by the Baking Society were sold in paper bags which contained 28 for 1/, and the members complained that other grocers gave 30 biscuits for 1/. The committee of Johnstone Society had carried out their investigation in a practical manner. They had purchased a bag of each of the other makers’ biscuits and had weighed them. The result showed that the U.C.B.S. 28 biscuits were heavier by 5½ oz. than were the 30 biscuits of one maker, and were as heavy as 34 biscuits of another maker, while in each case the Society’s biscuits were pronounced to be the better in quality. It is easy to imagine how heartening to a committee who were continuously being pestered with complaints about the quality of their wares such a report would be, and the chuckles with which the humorists amongst them would agree that it should be engrossed in the minutes “for the information of the delegates attending the quarterly meeting, so that they may be in a position to lay the matter before their respective committees; which may result in a considerable extension of this branch of trade.”

MACHINERY INSTALLED.

For some months the committee had been discussing tentatively the installation of baking machinery, but without coming to any definite decision on the matter. In the beginning of 1878, however, they began to inquire into the subject in earnest, and appointed a committee to get all necessary particulars as to cost, effect on working expenses, and effect on the quality and appearance of the bread, of such machinery. After this committee had reported, the subject was discussed by the general committee and then remitted to the quarterly meeting. There the delegates ordered the report to be printed in circular form and sent out to the societies, so that the delegates might come to the next quarterly meeting with instructions. At the next meeting a motion that machinery be installed in the bakery was agreed to by a small majority. The amendment, “that it be not installed,” seems to have been the last protest from those societies who wished a branch to be established at Paisley or Johnstone, but with the installation of machinery their last hope of achieving their purpose disappeared.

GETTING RICH.

When the Society purchased the property in St James Street they were very poor and had to take a bond on the property, and when, a year or two later, the adjacent property in Park Street was purchased, the amount of the bond was increased, the total being £830. Now, in 1878, the committee found themselves in a position to pay out the bondholders, and accordingly this was done. The views of the committee on the subject of “bonds,” as reported in the minutes, are interesting and worthy of quotation. They state:

“The uplifting of the bonds has entailed a considerable expense to this Society. The amount was advanced by four separate parties, who had each to be secured by a separate bond. We should draw a lesson from this which might be beneficial to us in the future, to make us beware that this or any of our respective local societies never have a ‘bond’ on any property where it is possible to get co-operative money.”

At this point it may be interesting to note the apparent effect which the withdrawal of the trade of Barrhead Society had on the Bakery. For the ninth year the average turnover of the Society was 223 sacks per week, while in the tenth year this fell to an average of 188. The position is more fully illustrated by taking the totals for the two years; that for the ninth year being 11,588 sacks, while that for the tenth year had fallen to 9,774 sacks. About this time the members were beginning to be uneasy about the Oakmill Society, in which they had invested £200, and at one quarterly meeting a delegate wished to know whether the committee considered the shares of this society a safe investment. The meeting was assured by Messrs Barclay and M‘Nair, who were both members of the Oakmill Society, that they considered the investment quite a safe one. At the quarterly meeting in March 1879 question was again raised, when Mr Alexander, the treasurer of the Baking Society, gave it as his opinion that “the loan capital in Oakmill Society was as safe as ever it was.”

FURTHER EXTENSIONS PROPOSED.

Meantime negotiations had been going on as the result of which the tenants in the bolt and rivet shop agreed to remove, and their boiler, engine, and shafting were purchased by the Society for use in driving the machinery which was being installed in the bakery. A new roof was also being put on the bakery, and the question of erecting two new ovens in the premises vacated by their tenant was being considered, when the news came that Johnstone Society had decided to start baking on their own account. This put an end for the time being to any thought of erecting new ovens, as the withdrawal of this society would again reduce the trade to below the capacity of the ovens already erected, but, notwithstanding that fact, it was decided that the whole question should be submitted to the quarterly meeting for its decision. The 40th quarterly meeting was held on 1st March 1879. The society had now been in existence for ten years, and although the outlook at the moment was not very bright, yet worse times had already been met and overcome. Doubtless, the members of committee were looking forward to the time when other societies at a distance from the centre would begin baking on their own account, but they knew also that the membership of the societies in the immediate vicinity of the Bakery was increasing, and hoped to recoup themselves in this way. At the quarterly meeting a general discussion on the question of building new ovens, in view of the fact that Johnstone Society was withdrawing, took place, but no decision was come to.

THE RESULTS OF TEN YEARS’ WORK.

In considering the trade for the ten years during which the Society had been established, it is to be noted that that for the ninth year was the greatest, 11,588 sacks having been turned into bread and biscuits in that year. The tenth year was the first in which there was a fall in the turnover, each of the first nine years showing a steady increase over that immediately preceding, and the reason for the drop in the tenth year was so obvious and so insurmountable that no uneasiness arose in consequence. From the second quarter in the seventh year the dividend each quarter was almost uniformly a shilling or over, and by the end of the tenth year no less than £8,051 had been allocated in dividend, as well as £75 as dividend to non-members; while £1,548 had been paid as interest on share and loan capital. Thus in the first ten years, those associated with the Bakery had received nearly £10,000, which they certainly would not have received had the Baking Federation not been started. In addition, they had a valuable property represented by shares and loans amounting to £5,706, while private loan-holders had also £544 invested. At the same time, in addition to the employees being paid wages equal to those paid elsewhere in the trade, £766 had been divided amongst them in the form of bonus. The directors were also extremely liberal in their depreciations, for during the ten years £4,270 had been written off property, stocks, machinery, fittings, and live stock. This made for the stability of the Society. In view of the fact that the capital was small and the capital outlay comparatively large, the financial policy adopted of devoting large sums to depreciation instead of paying them away in dividends was a sound one, and enabled the committee to undertake with a light heart extensions which would otherwise have caused them considerable anxiety. They had established on a sound financial basis a structure which was to prove of lasting benefit to the co-operative movement, and which was to bear no uncertain testimony in future years to the ability of the builders and to the soundness of the principles on which they were carrying on their business.