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:—