CHAPTER VII.. St James Street: Congestion.

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 During the latter half of the tenth year three societies had withdrawn or been paid out, and the membership of the Federation, which had consisted of twenty-six societies at the beginning of the year, consisted of only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.

1. DANIEL H. GERRARD. J.P., President.

2. JAMES BAIN, Secretary. ]

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.