History of the United Co-operative Baking Society Ltd.

by William Reid

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.

CHAPTER VIII.
M‘NEIL STREET.

INCREASING TRADE—THE DIRECTORS’ DILEMMA—M‘NEIL STREET GROUND PURCHASED—THE NEW BAKERY: BUILDING DIFFICULTIES—THE OPENING CEREMONY—AN UP-TO-DATE BAKERY—PROPAGANDA WORK—RECOGNISING LOYAL SERVICE—A STABLE INSPECTOR—FINANCE—AN INVESTMENT—THE PURCHASE OF FLOUR—A SOCIAL MEETING AND ITS OBJECT—A RIGHT OF WAY CASE—THE NEW BAKERY COMPLETED—A NEW VENTURE—THE CHAIRMAN RETIRES—ALL-ROUND INCREASES.

At the end of the preceding chapter we saw that the trade of the Society had become so large that it was forcing the question of a new bakery on the attention of the directors. With the purpose in view of securing the necessary capital, the sub-committee advertised the St James Street premises for sale, but the only offer they received was one to lease the premises. As this was of no use for their purpose at the moment nothing further was done. Circumstances, and the policy of the committee, were responsible for the still more rapid increase of trade. In the beginning of 1885 the price of flour went up with a rush, but as the Federation was in the happy position of having bought a large quantity of flour just before the rise they were able to continue selling their bread at the old price while the other bakers had to raise it, with the result that the trade continued to increase very rapidly. One of the results of this rapid increase in trade was that the Society was once again placed in the position of being compelled to refuse orders because of its inability to execute them. For this reason Blantyre and Burnbank societies, which had made proposals to join the Federation, had to be refused for the time being.

The directors were literally at their wits end. They could not sell their premises. Unless they got new premises they could not hope to provide for the trade which came pouring in in ever-increasing volume, and they did not know what was the best thing to do. To begin with they got a firm of architects, Messrs Bruce & Hay, to prepare a sketch plan for a new bakery on the St James Street site which would contain twenty-four ovens, together with ample accommodation for storing flour, and stables, a breadroom, and a van yard. When the architects came to prepare their plans, however, they found that the space available was not large enough to give all the accommodation desired. The plans, when submitted, showed a bakery with twenty-three ovens, stable accommodation for nineteen horses, van shed, offices, breadroom, and store, and the cost was estimated at £6,200.

The committee decided that before they would proceed further they would consider carefully the progress which had been made by the Society in the ten years which had elapsed since 1875, and this study of the work which had been done showed that the ratio of increase in trade had grown larger in the two years immediately preceding 1885, while the trade which was being done at the moment warranted them in believing that this rate of progress would be maintained. This being so, the conclusion at which they arrived was that, even if they did build at St James Street, only a few years would elapse before the accommodation would be too small. They decided, therefore, to bring their difficulties before the quarterly meeting and leave the decision with them.