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.