History of the United Co-operative Baking Society Ltd.

by William Reid

SOME NOTEWORTHY ALTERATIONS.

For several years the rates of interest which had been paid for loans had been 4½ per cent. for money deposited on twelve months’ notice of withdrawal and 4 per cent. on money at call, but the rate of interest in the money market had shown a decided downward tendency for some time, and towards the end of 1896 the directors recommended that the rates to be paid by the Federation should be reduced to 3½ per cent. and 3 per cent., a recommendation which was adopted by the general meeting. At the same meeting a reform which certain members of the committee and certain delegates had advocated for some years—the raising of the value of the share from 10/ to 15/—was at last agreed to. This had the effect of adding 50 per cent. to the capital of the Society. At the same time the influx of new societies into the Federation and of new members into the societies continued at a rapid rate, so that from this source also the capital of the Society was being increased so rapidly that it was practically keeping pace with the big capital expenditure necessitated by the rapid growth of the Society’s business.

In June 1897 Mr Robert Fraser, who had been foreman baker for a number of years, left the service of the Federation to take up another situation, and the committee took advantage of the fact to make some important rearrangements in the management of the bakery. This was done by dividing the productive work into three sections: bread, biscuits, and pastry. Mr Murdoch Richard, who had been assistant to Mr Fraser for several years, was given full charge of the bread department; Mr John Gilmour was made manager of the machine-made biscuit and oatcake sections; and Mr William Seivewright was placed in charge of the pastry and hand-made biscuit section.

In September of the same year Mr Allan Gray, who had been one of the auditors of the Society for the long period of seventeen years, retired owing to pressure of other business, and was awarded the hearty thanks of the delegates for the long and faithful service he had given. Mr William H. Jack, of St George Society, was elected his successor. At the general meeting held on 4th December 1897, it was decided that the Federation join the International Co-operative Alliance. Earlier in the same year they had taken up 500 shares in the Scottish Co-operative Laundry Association Ltd., and, owing to their large purvey and tearoom department, were likely to be one of the largest customers of that concern. Indeed, so great was their laundry bill that at one time the directors gave serious consideration to the question of starting a laundry department of their own, for the girls in the packing and oatcake flats were supplied with overalls which required laundering every week. The Federation also adopted the policy of providing the girls who served in the tearooms with dresses. In the spring of 1898 the Society became members of the Scottish Co-operator Federation. Owing to the large proportion of employees, particularly in the stable department, who were going off ill, a medical man was engaged to call at the factory regularly and supervise the health of the employees. This year the Society started the manufacture of plum puddings, and were making strenuous efforts to develop the pie trade. An expert piemaker was engaged, the societies were circularised, and a small van and a fast pony were purchased so as to ensure quick delivery. At the quarterly meeting held in March 1898, the chairman stated that, owing to the number of societies which were starting bakeries of their own and were withdrawing their loan capital from the Federation for this purpose, the committee had decided not to proceed further with the stores which they had proposed to erect in the new premises. The work had been stopped meantime, but it could be proceeded with at any time desired. He also asked for permission to reopen the private loan fund again, the interest to be paid being 3½ per cent. at twelve months’ notice and 3 per cent. at call, and this permission was granted. He explained that they were not altogether in want of money, but desired to have a little more liquid capital than they had in hand at the moment. After one or two questions had been asked, the permission desired was granted.