Seasons when the ice held in, Skipper Tom could not set his cod trap. When this happened he was as badly off as any of his neighbors. In a season when there were no fish to catch, it goes without saying that his trap brought him no harvest. Fishing and trapping is a gamble at best, and Skipper Tom, like his neighbors, had to take his chance, and sometimes lost. If he accumulated anything in the good seasons, he used his accumulation to assist the needy ones when the bad seasons came, and, in the end, though he kept out of debt, he could not get ahead, try as he would.
The seasons of 1904 and 1905 were both poor seasons, and when, in the fall of 1905, Doctor Grenfell's vessel anchored in Red Bay Harbor he found that several of the seventeen families had packed their belongings and were expectantly awaiting his arrival in the hope that he would take them to some place where they might find better opportunities. They were destitute and desperate.
There was nowhere to take them where their condition would be better. Grenfell, already aware of their desperate poverty, had been giving the problem much consideration. The truck system was directly responsible for the conditions at Red Bay and for similar conditions at every other harbor along the coast. Something had to be done, and done at once.
With the assistance of Skipper Tom and one or two others, Doctor Grenfell called a meeting of the people of the settlement that evening, to talk the matter over. The men and women were despondent and discouraged, but nearly all of them believed they could get on well enough if they could sell their fish and fur at a fair valuation, and could buy their supplies at reasonable prices.
All of them declared they could no longer subsist at Red Bay upon the restricted outfits allowed them by the traders, which amounted to little or nothing when the fishing failed. They preferred to go somewhere else and try their luck where perhaps the traders would be more liberal. If they remained at Red Bay under the old conditions they would all starve, and they might as well starve somewhere else.
Doctor Grenfell then suggested his plan. It was this. They would form a company. They would open a store for themselves. Through the store their furs and fish would be sent to market and they would get just as big a price for their products as the traders got. They would buy the store supplies at wholesale just as cheaply as the traders could buy them. They would elect one of their number, who could keep accounts, to be storekeeper. They would buy the things they needed from the store at a reasonable price, and at the end of the year each would be credited with his share of the profits. In other words, they would organize a co-operative store and trading system and be their own traders and storekeepers.
This meant breaking off from the traders with whom they had always dealt and all hope of ever securing advance of supplies from them again. It was a hazardous venture for the fishermen to make. They did not understand business, but they were desperate and ready for any chance that offered relief, and in the end they decided to do as Doctor Grenfell suggested.
Each man was to have a certain number of shares of stock in the new enterprise. The store would be supplied at once, and each family would be able to get from it what was needed to live upon during the winter. Any fish they might have on hand would be turned over to the store, credited as cash, and sent to market at once, in a schooner to be chartered for the purpose and this schooner would bring back to Red Bay the winter's supplies.
A canvass then was made with the result that among the seventeen families the entire assets available for purchasing supplies amounted to but eighty-five dollars. This was little better than nothing.
Doctor Grenfell had faith in Skipper Tom and the others. They were honest and hard-working folk. He knew that all they required was an opportunity to make good. He was determined to give them the opportunity, and he announced, without hesitation, that he would personally lend them enough to pay for the first cargo and establish the enterprise. Can any one wonder that the people love Grenfell? He was the one man in the whole world that would have done this, or who had the courage to do it. He knew well enough that he was calling down upon his own head the wrath of the traders.