For a considerable part of this period the Federation were buying much of the flour they used elsewhere than from the Wholesale Society, and discussions on the subject took place from time to time. The contention of the Bakery board was that they were being asked by the Wholesale Society to pay considerably more for flour than they could buy the same quality for elsewhere, and from the minute of an interview which took place between representatives of the two boards, it appears that the Wholesale representatives agreed that this was the case at the time. The Wholesale board could not see their way to make any alteration at the time on their method of charging, however. Nevertheless, it is gratifying to know that in a short time the Wholesale Society was in a position to meet competitors on level terms, and towards the end of 1884 a large proportion of the flour used was purchased from the Federation.
COSTLY LITIGATION.
Early in 1884, the Society became involved in a lawsuit. An accident took place through which a horse belonging to the Glasgow Tramway and Omnibus Company was killed, and as it was found impossible to come to any arrangement which would be satisfactory to both parties, the Sheriff-Substitute for Renfrewshire was called upon to decide. The committee were agreeable to take responsibility for the accident, which had been caused by one of their horses running away while being unyoked. The Tramway Company valued the animal killed at £35, while the veterinary surgeon employed by the Society to value it immediately after the accident placed its value at £16, but the Tramway Company manager refused to make any concession. After the dispute had dragged on for a month, during which the case was taken into Court and the Society lodged £20 in full of all claims, the Tramway Company’s agent offered to try and induce his clients to accept £30 in full of all claims, each party to pay their own expenses. This offer the Society refused to accept, but when the case came before the Sheriff-Substitute he decreed for £35; at the same time passing severe strictures on the method in vogue at the bakery when horses were being yoked and unyoked. An appeal to the Sheriff-Principal was lodged, but he also decided against the Society, with the result that, instead of settling for £35, they had also a heavy bill to pay for expenses.
At the quarterly meeting held in June 1884, some reorganisation of the work of the office took place. As a preliminary step, the office of treasurer to the Society was abolished. With the exception of a short period at the beginning, this office had been held by two men—Mr Alexander of Paisley and Mr M‘Murran of Glasgow Eastern Society. At the meeting at which the office of treasurer was abolished, an attempt was made to make all the capital of the Society transferable, but this proposal was defeated by a narrow majority; fifty-eight delegates voting for the proposal and thirty-two against it. As a two-thirds majority was necessary, the vote in favour was six short of the necessary number.
TRANSFERABLE CAPITAL.
During the summer of 1884 the Society was experimenting with a new form of barm, produced by a patent process. The results of the experiments, however, were not satisfactory. The new barm was found to be no improvement on the old, while the recipe would cost £5, and thereafter there was to be a royalty of a halfpenny per sack of flour used, which was to continue for a year, so the committee decided that no advantage would accrue to the Society by adopting the new system. About the same time the committee were in correspondence with Mr E. V. Neale on the question of the best method to be adopted for making the loan capital of the Society secure. They considered the information they received from Mr Neale so valuable that they decided to print it and send a copy to each member society.
Notwithstanding the difficulties with which they were meeting, consequent on their shortage of oven accommodation, the committee were ever zealous in their endeavours to get new trade from societies which were not members and to increase the trade of those which were. During the summer months they caused a number of letters to be sent to societies, requesting that deputations should be received, and by this means they were able to secure increased trade from some of the societies which were not as loyal as they might have been. Arising out of the correspondence with Mr Neale, it was agreed at the September quarterly meeting in 1884 to appoint a special committee to go into the whole question of the capital of the Society, with special reference to that held on loan, and with power to consult a Scottish legal authority on the subject, the committee to report to the December quarterly meeting. The special committee consulted the Lord Advocate on the subject, with the result that, at a special meeting which was held in March of the following year, the whole share capital of the Society was made transferable, while the interest on loans was reduced from 5 per cent. to 4½ per cent.
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.
