In the middle of 1896, the Master Bakers’ Association held a meeting to consider the price of bread. Out of 48 firms represented, 44 voted against making any reduction in price at the moment, while four were in favour of a reduction. After the meeting those four firms met and agreed to reduce the price. They got other three firms to join with them; with the result that on the morning of 15th June an advertisement appeared in the Glasgow papers which stated that these seven bakers had reduced the price of their bread. The committee of the Baking Society met that evening, and they decided that while the price of flour did not warrant the reduction, yet, in order that the Federation might maintain its position it was their unanimous finding that the price should be reduced by one halfpenny on the four-pound loaf. At the same meeting it was agreed that, as the sale of “common” bread was very small, the Federation should cease baking it altogether, and produce only the one quality of bread in future—“fine.” This decision was adhered to for six months, at the end of which period it was agreed to begin the baking of “common” bread again. At a later period this connection with the Master Bakers’ Association was called in question at a quarterly meeting, and gave rise to a lengthy discussion. Mr Glasse of the Wholesale board was the chief critic, and moved that the Federation be not represented at these meetings in future. Several of the delegates, in supporting this motion, pointed out that some of the master bakers present at these meetings of the association were men who had signed an agreement to do their best to put down Co-operation, and one delegate described the association as a syndicate, the members of which wished for big profits and cared for no one but themselves. It was pointed out by the chairman that this was not a properly-constituted association, but an informal gathering of people engaged in the same business. The Federation had been invited to send a representative, and had got some useful information there, but were not committed in any way. Finally, on being put to the vote, the motion of Mr Glasse was defeated in favour of an amendment that the committee act as they had been doing. The question was one which cropped up periodically at meetings of the Federation, but always with the same result of leaving the Federation unfettered to do the best they could in the interest of the concern they were appointed to manage.
SOME NOTEWORTHY ALTERATIONS.
For several years the rates of interest which had been paid for loans had been 4½ per cent. for money deposited on twelve months’ notice of withdrawal and 4 per cent. on money at call, but the rate of interest in the money market had shown a decided downward tendency for some time, and towards the end of 1896 the directors recommended that the rates to be paid by the Federation should be reduced to 3½ per cent. and 3 per cent., a recommendation which was adopted by the general meeting. At the same meeting a reform which certain members of the committee and certain delegates had advocated for some years—the raising of the value of the share from 10/ to 15/—was at last agreed to. This had the effect of adding 50 per cent. to the capital of the Society. At the same time the influx of new societies into the Federation and of new members into the societies continued at a rapid rate, so that from this source also the capital of the Society was being increased so rapidly that it was practically keeping pace with the big capital expenditure necessitated by the rapid growth of the Society’s business.
In June 1897 Mr Robert Fraser, who had been foreman baker for a number of years, left the service of the Federation to take up another situation, and the committee took advantage of the fact to make some important rearrangements in the management of the bakery. This was done by dividing the productive work into three sections: bread, biscuits, and pastry. Mr Murdoch Richard, who had been assistant to Mr Fraser for several years, was given full charge of the bread department; Mr John Gilmour was made manager of the machine-made biscuit and oatcake sections; and Mr William Seivewright was placed in charge of the pastry and hand-made biscuit section.
In September of the same year Mr Allan Gray, who had been one of the auditors of the Society for the long period of seventeen years, retired owing to pressure of other business, and was awarded the hearty thanks of the delegates for the long and faithful service he had given. Mr William H. Jack, of St George Society, was elected his successor. At the general meeting held on 4th December 1897, it was decided that the Federation join the International Co-operative Alliance. Earlier in the same year they had taken up 500 shares in the Scottish Co-operative Laundry Association Ltd., and, owing to their large purvey and tearoom department, were likely to be one of the largest customers of that concern. Indeed, so great was their laundry bill that at one time the directors gave serious consideration to the question of starting a laundry department of their own, for the girls in the packing and oatcake flats were supplied with overalls which required laundering every week. The Federation also adopted the policy of providing the girls who served in the tearooms with dresses. In the spring of 1898 the Society became members of the Scottish Co-operator Federation. Owing to the large proportion of employees, particularly in the stable department, who were going off ill, a medical man was engaged to call at the factory regularly and supervise the health of the employees. This year the Society started the manufacture of plum puddings, and were making strenuous efforts to develop the pie trade. An expert piemaker was engaged, the societies were circularised, and a small van and a fast pony were purchased so as to ensure quick delivery. At the quarterly meeting held in March 1898, the chairman stated that, owing to the number of societies which were starting bakeries of their own and were withdrawing their loan capital from the Federation for this purpose, the committee had decided not to proceed further with the stores which they had proposed to erect in the new premises. The work had been stopped meantime, but it could be proceeded with at any time desired. He also asked for permission to reopen the private loan fund again, the interest to be paid being 3½ per cent. at twelve months’ notice and 3 per cent. at call, and this permission was granted. He explained that they were not altogether in want of money, but desired to have a little more liquid capital than they had in hand at the moment. After one or two questions had been asked, the permission desired was granted.
THE FARMING ASSOCIATION.
When the Scottish Co-operative Farming Association was formed the Baking Society took a keen interest in it, and for such products as were of use to it was always a good customer. At a later date in the history of the association an overdraft of £200 was granted. Unfortunately, from causes which were fairly obvious, the Association, after some years of fair success, fell on evil days, and during the period with which this chapter deals the committee approached the Baking Society to take one of the farms rented by the Association. The board of the Baking Society viewed the idea with favour, believing that a farm would be a useful auxiliary to their distributive department, while it would be to the advantage of the movement if the Farming Association could be preserved from collapse; and when the question was brought before the general meeting of the Society the majority of the delegates were also in favour of the scheme, and gave full power to the committee to proceed. Thus armed with full powers the members of the committee were wise enough to take expert advice before committing themselves definitely, and delegated two practical farmers to examine the farm and report. The reports presented by these gentlemen were unanimous, and were to the effect that the farm was very badly drained and in poor condition; the rent was too high, and it could not be made to pay either as a cropping or as a dairy farm. As a result of this report, and in view of the fact that inside two months the Farming Association went into liquidation, it was decided to have nothing more to do with the proposal.
The Society had still some further trouble to face in connection with the Association however. A large quantity of hay had been bought and paid for, to be delivered as required, but when the liquidators came to examine the stock on the farm they claimed this hay as part of the assets of the Association, and a considerable amount of negotiation took place before the matter was settled. The final result was that, by the failure of the Association, the Federation lost £346, 14s. 7d.
ACCIDENTS.
Probably it was owing to the much greater number of vehicles now owned by the Federation, and the much larger number of persons employed, that the accidents recorded in the period with which we are dealing exceeded in number all those which have been recorded hitherto. Fortunately, many of them were not of a serious nature, but during the four years three fatal accidents took place. In one case a man was knocked down by a van belonging to the Society and killed, but the police report was to the effect that no blame attached to the driver of the van. Out of sympathy with the widow thus suddenly deprived of her breadwinner, however, the committee gave her a grant of £40. In another case a bricklayer lost his life, again without blame attaching to the Society, and in this case a grant of £20 was made to the widow; while the third case was that of a plumber employed by the Society, who died as the result of an accident at the bakery. In this case also a grant of £30 was made.