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CENTRAL PREMISES

HISTORY
OF THE
UNITED CO-OPERATIVE BAKING SOCIETY LTD.
A FIFTY YEARS’ RECORD
1869–1919

BY WILLIAM REID

Published by United Co-operative Baking Society Limited

M‘Neil Street, Glasgow

1920

PREFACE.

The chief advantage of prefaces is the opportunities they give authors for making apologies and for returning thanks. In the present instance the hurry with which the book has had to be written did not allow time enough to do many things which the writer would have liked to do. He would have liked to linger with the old-time enthusiasts who laid the foundations of the Society, to have made himself as familiar as possible with the times in which they lived and with the thoughts in their minds, so that he might be able to present to his readers a picture of their times as they saw them, and of their difficulties as they had to encounter them. For this there was no time, and so he has had to content himself with telling a plain, unvarnished tale of difficulties met and overcome, of a faith which refused to be dismayed, and of a triumph which is visible to all.

Unfortunately, there is no one alive to-day who had any active part in the inception of the Society. This increased the difficulty of presenting a true picture of the beginnings of the Society, but some help in this direction was got from the “Year Book,” which had been written by Mr Lochrie in 1896. The writer is also very much indebted to Mr David Brown, of the office staff of the Society, who prepared synopses of the various minutes of the Society. These synopses, by indicating the salient points in the minutes, greatly lightened the labour of selection; but, in addition, every minute has been carefully read at least once, and many of them much oftener, so that complete accuracy might be secured.

Great assistance in dealing with the history of the last thirty years has also been given by Mr James H. Forsyth, cashier of the Society, whose knowledge of the transactions of that period is unparalleled.

W. R.

CONTENTS.

ILLUSTRATIONS.

CHAPTER I.
SCOTLAND IN THE SEVENTEENTH AND EIGHTEENTH CENTURIES.

GENERAL SOCIAL CONDITIONS—EARLY FARMING METHODS—POVERTY OF THE PEOPLE—MINERS AS SERFS—“THE SOUTH SEA BUBBLE”—IMPROVING CONDITIONS: THE ACT OF UNION AND ITS EFFECTS—THE INDUSTRIAL REVOLUTION—THE FACTORY SYSTEM: ITS EFFECT ON THE STATUS OF MEN.

The conditions under which the people of Scotland lived during the seventeenth and eighteenth centuries were rude and uncouth, and, when judged by modern standards, could scarcely be described as other than appalling. In the few towns of any size, stone buildings were the rule; but in the rural districts the majority of the people lived in huts, the walls of which were built of sods and stones, and which were roofed with wattles and thatched with rushes. These huts were windowless save for a hole in the wall which admitted some air but very little light during the summer, and which was stuffed with rags and rushes during winter in order to keep out the snell North wind. The floor was but earth, hardened with the trampling of countless feet; and fireplace or chimney there was none, unless a few stones set in the middle of the floor or against one of the gables can be called a fireplace, and a hole in the roof, through which the smoke found its way after it had explored every nook and cranny of the house, a chimney.

Famine was an almost annual visitor. The majority of the people lived by agriculture, but the land was cold and undrained, and the methods of tilling were ineffective. The motive power was sometimes provided by oxen, but often the people harnessed themselves to the primitive implements. The result was that the grain grown was poor in quality and scanty in quantity, while often it failed to ripen because of the wetness of the soil, and because, also, of lateness in sowing. The cattle were poor and underfed. Roots for feeding purposes were unknown until near the end of the period; there was no grain to spare, and little straw or hay for winter feeding, so that the poor brutes had to forage for themselves as best they could.

In the hall of the laird the position was a little better, but few of the lairds of that day could aspire to the standard of living of a moderately well-to-do farmer of to-day. Of food there was always enough in the hall, but it was coarse and unsavoury. Throughout the winter fresh meat was unknown. The cattle were killed in the autumn; the meat was stored in brine barrels, and this brine-soaked meat, or swine flesh preserved in the same manner, was the only meat which found a place on the table of the laird during the winter months, except on the few occasions of great importance when one or two fowls were killed.

The farming class, if it be not a misnomer to call them farmers, usually lived in groups of such huts as are described above, and tilled their land more or less in common. The system chiefly in vogue was the “run rig” system, under which exchange of ground took place every year. The more important of their crude implements were also held in common, and as these could only be used by one person at a time—as, also, it was often well on in the spring before any thought of tillage occurred to them or the condition of their water-logged soil would permit of it, and as much time was often lost in deciding the rotation in the use of the implements—the return in the good years was only just sufficient for their wants. As the bad years were generally twice as numerous as the good years, the conditions of the rural workers were generally most miserable. Ill-treated Nature, receiving no encouragement from man save the “tickling of her face with a stick,” refused to give of her bounty, and the people who depended on her for life suffered accordingly.

A condition of continual hunger was the lot of the labourers who had no land to till. They were often forced to depend for food on the roots and berries they could gather in the woods; the scraps which went to feed the laird’s pigs were luxuries which only came their way at long intervals. Work was intermittent; it was poorly paid, for money was even scarcer than food. The only landless men who had what might be termed a decent living wage for the period were the miners. They received about a shilling a day; but, in return, they sold themselves into serfdom, for, from the beginning of the seventeenth century until the closing year of the eighteenth, no man, woman, or child who once entered a mine to work in it could leave it again. If the mine was sold the sale carried with it the right to their labour; they were bondslaves until death, the great emancipator, burst their shackles and set them free for ever.

On the large farms, which became more numerous during the eighteenth century, ploughmen received the truly magnificent salary of 35/ a year, with one or two perquisites, of which one was a pair of boots. The ploughman’s daughter, if she went to the farm to assist the farmer’s wife and daughters with the cows, received, as a reward for her labour, 13/4 a year, a piece of coarse cloth for an apron, and a pair of shoes.

In the towns the conditions were little better. In the early years of the eighteenth century a succession of bad years brought distress to all sections of the populace. There was much unrest, which was fanned into flame by the passing of the Act of Union in 1707, when a considerable amount of rioting took place in various parts of the country. In addition, the foreign trade of the country had been ruined by the English Navigation Act of 1660, which provided that all trade with the English Colonies should be carried in English ships alone.

In the closing years of the seventeenth century Paterson, the founder of the Bank of England, launched his Darien scheme, famous in history as “The South Sea Bubble,” for the purpose of inaugurating a great world exchange and mart at the Isthmus of Panama. Scotsmen became responsible for £400,000 of the capital, and actually paid in £220,000. The jealousy of the English merchants, however, together with the fact that it had been proposed to establish a depot on land which was claimed by Spain, without having gone through the formality of consulting that country beforehand, handicapped the scheme from the outset. Nevertheless, although opposed by the English, and cold-shouldered by the Dutch, whose help they had hoped to enlist, the Scotsmen persevered with their project. A company, numbering 1,200, set out for their destination, landed, and erected a fort. Difficulties came fast, however. The King had not given his consent to the scheme, and the American colonists refused to have anything to do with them. Supplies gave out before the new crops were ready, and none were forthcoming from home, so that at the end of eight months the colony was broken up. Out of a total of 2,500 persons who had left Scotland, not more than thirty ever reached home again. The failure of the scheme caused untold misery and ruin in Scotland, and did much to engender the bitter feelings toward the English which showed themselves when the union of the two Parliaments was being discussed; but, worst of all, it bled the country white; so much so that when, a few years later, the British Government called in the Scottish coinage in order to replace it with coinage of the United Kingdom, only coinage to the value of £400,000 was returned to Scotland.

IMPROVING CONDITIONS.

The Act of Union was exceedingly unpopular, but, as it turned out, it was not an unmixed evil, for it placed Scottish traders on the same footing as the English in respect to trading with the Colonies, from which they had been debarred for fifty years. It also gave Scottish ships free entry to English ports and Scottish goods free entry to English markets, and so marked the beginning of the increasing prosperity which has come to Scotland since then.

In particular the opening up of trade with the Southern Colonies had much to do with laying the foundation of the proud commercial position which Glasgow holds to-day. Merchants from the little town on the banks of the Clyde began to trade with these Colonies, bringing back in exchange for their wares tobacco and other products, including cotton. During the same period there was introduced from Holland the art of fine spinning, and on these two articles of Colonial produce—tobacco and cotton—were built up many fortunes. Later in the century the invention of the spinning jenny, the carding frame, and the power-loom, and the discovery by Watt of how to harness the power of steam to production all gave an impetus to the commercial growth of Scotland. With the application of the power of steam the foundation of Scotland’s pre-eminent position in the manufacture of iron and steel and in the building of ships was laid, for by the application of steam-power to pumping machinery and to haulage it was found possible to keep her coal pits free from water and to dig vertical shafts to the coal seams.

Thus the eighteenth century, which had begun with the Scottish people in the direst poverty, ended with many of them in comparative comfort and with the standard of living for all definitely raised. Never since then, not even in the period of deep poverty which followed the close of the Napoleonic war nor in the “hungry ’forties,” have the whole people fallen back into the depths of misery in which they were sunk at the beginning and all through the seventeenth century and well into the “’twenties” of the eighteenth. At times since then progress seemed to be at a standstill; at times it seemed even to be on the down grade; but the impetus has always been recovered; the standard of living has been rising gradually, and although we are still far removed from the rude profusion which has caused the century in English history which followed the “Black Death” to be spoken of as “the golden age of labour,” the trend of our march is in the direction of a condition which, measured by the different standards of to-day, will approximate to that long past happy period.

THE FACTORY SYSTEM.

While it is admitted that the inventions and discoveries of Sir Joseph Arkwright (partner of David Dale at Lanark), Hargreaves, Crompton, and Cartwright revolutionised industry, and in the long run brought a higher standard of living to the people, yet the first results of their application were not wholly good. For centuries spinning and weaving had been carried on in the homes of the people, but with the invention of the spinning jenny, the carding frame, and the power-loom the weaving industry was removed to larger buildings. At first these were merely makeshifts. A disused stable or cowshed, any building, in fact, which would house a number of looms was good enough for the new industry. The hand-loom weavers soon found that they were unable to compete with the new methods. To make matters worse, where they did not themselves give up and take service under the new regime, their wives and their children did, and became competitors in driving the husbands and fathers out of the industry.

Soon the millowners discovered that in the new methods with the new cheap labour there was a mine of wealth and, their greed growing by what it fed on, they sought for even cheaper labour than that of the poorly paid wage-slave women and children. This cheaper labour they found in the thousands of pauper children under the care of the supervisors of the poor. The story of the cruel treatment of these poor little mites, who were often chained to the frames of the looms and whipped to keep them awake, is one of the blackest pages in the whole history of the growth of the capitalist system in Great Britain.

In the weaving trades the entry of women and children changed the whole economy of the weavers’ homes. Formerly the work had been done by the male members of the families, assisted to some extent by the women, but under the new system the factory owner found that he could get as much work done by the mother at a considerable reduction on the wages paid to her husband, and so the husband found himself workless. Then it was found that the children soon became as expert as their elders, and so a further reduction in wages took place.

The net result was that it became a case of equal pay for equal work, but the standard of pay was that of the women and not of the men, and soon the whole family had to work to provide the necessaries of life for the home which should have been provided by the wages of the husband alone. Even to-day, while the women of the cotton mills who are members of their unions are probably the best paid female workers in the country, the standard for men is much below that for male workers in other trades; so that, in the case of the factory workers, “equal pay for equal work” has meant a general lowering of the standard of pay.

CHAPTER II.
THE DAWN OF CO-OPERATION.

CO-OPERATION IN PREHISTORIC TIMES—EARLY TEUTONIC CO-OPERATION—THE SCOTTISH CLAN SYSTEM—THE PRESENT CO-OPERATIVE SYSTEM—FENWICK AND OTHER CO-OPERATIVE SOCIETIES—EARLY CO-OPERATIVE BAKERIES—THE GLASGOW BAKING SOCIETIES—EARLY METHODS OF CONTROLLING PRICES—STIRLINGSHIRE AND THE HILLFOOTS—BAKING SOCIETIES IN FIFE AND THE NORTH—CO-OPERATIVE BAKING IN THE BORDERLAND—GLASGOW SOCIETY—CO-OPERATIVE BAKING IN 1866—THE FIRST FEDERATED BAKERY.

The Co-operative principle is as old as human intelligence. As soon as man became possessed of the first faint glimmerings of reason he began to seek communion with his fellows, and began, also, to take concerted action with them for mutual protection. It was natural that this should be so. The world must have been a terrible place for the human race in those early days. On land, in the sea, and in the air it was peopled with monsters, against whose attacks the unaided strength and skill of a solitary human were of no avail. Only by combination could he hope to survive. Results have proven that combination—Co-operation—is the law of life; that the men, the animals, the insects even which have learned to combine, have progressed in the scale of evolution; while the solitary monsters of past ages have disappeared, and are known only from a bone found here and a partially complete skeleton there.

That the human race gathered together in communities very early in its history there is abundance of evidence. In some of our cliffs there are caves which bear traces of human habitation; while scattered here and there over the world are immense mounds of shells, extending sometimes to a depth of many feet and acres in width, on what is believed to have been the seashore of prehistoric times, which show that, for a long period, these places were frequented by communities.

This community living has continued all down the ages. The “commune” system in vogue amongst the Teutonic races was an imperfect system of Co-operative farming by an agricultural community, which finally ceased in Germany during the nineteenth century. It was introduced into this country by the invading Teuton races in the early centuries of the Christian era; and, with various modifications and adaptations, was still in being at the time of the Norman conquest. From that date it gradually declined, until, by the end of the sixteenth century, it had all but died out in England, but was still alive in parts of Scotland in the clan system. There the old community spirit continued to prevail until after the rebellion of 1745, when the common lands of the clans were given to the chiefs. In the lowlands, also, some trace of this principle continued to be visible amongst the farming community.

CO-OPERATION AS WE KNOW IT.

When or where Co-operation, in the sense in which the word is used to-day, first came into being there is no means of knowing. Mr Maxwell, in his “History of Co-operation in Scotland,” tells the story of the old society originated by the weavers of Fenwick one hundred and fifty years ago, before Robert Owen was born; but, although this is the oldest Co-operative society of which any record remains, it by no means follows that others did not exist even earlier. Indeed, Mr Maxwell himself mentions that traditions of other old societies exist in various parts of the country. Of these, no records remain. It is only ten years since there vanished from the ken of the people of Govan a society which kept proudly painted over its door a record of the fact that it was established in 1777—eight years later than Fenwick. There still exists in Glasgow a society which dates back to the first year of the nineteenth century, and the Lennoxtown Society celebrated its centenary seven years ago. All over Scotland there exist societies which are nearing a century of life, and Mr Maxwell has rescued from oblivion the names, and sometimes part of the records, of others which long ago disappeared.

In their practice these old-time societies differed in material points from the practice which takes its name from the Lancashire weaving town where it originated—Rochdale—but the spirit which inspired those pioneers and the broad principles of self-help in Co-operation under which they worked, are the spirit and principles of the Co-operators of to-day. They were, in fact, the spirit and principles which combine to make progress possible, and in the absence of which come stagnation and decay.

CO-OPERATIVE BAKERIES.

Like the inception of Co-operation itself, the beginnings of baking Co-operatively are lost in the misty past. Where the first Co-operative bakery was started, or when, there is no means of knowing.

Research has shown that, in the early years of last century, bread was being produced and distributed by Co-operative bakeries in Glasgow, but how many in number these bakeries were, where exactly they were situated, or what turnover they had it is not possible to discover; indeed, it is probable that we should never have known of their existence, except as a tradition, had it not been for the fact that a Glasgow writer, who published in 1816 a book in two volumes dealing with the affairs of Glasgow, thought it necessary to defend the private bakers of the city at that time against any possible accusation of overcharging for bread, by describing the methods which were adopted by the Co-operative societies, and emphasising the fact that they sold bread at the cost of production, and only to their own members.

This Glasgow author, Mr Cleland by name, had been describing the means which had been taken by the Governments of George II. and George III. to regulate the price of bread in accordance with price of wheat. His description is very interesting, if only for the fact that it shows that steps had to be taken to regulate the exactions of the profiteer, even in those early days. It shows, also, that the methods of our various “Controllers,” “Food Committees,” etc., are not new, but are very much along the same lines as those devised to keep down the price of bread a century and a half ago. The price of bread was regulated in accordance with the price of wheat, and the baker was allowed a fixed sum per sack of flour for his expenses of baking and distributing.

In the various cities and towns the application of this Act was in the hands of the magistrates; and, in Glasgow, bread prices were fixed at various intervals until 1800, when it was decided at the last Bread Court held to cease the practice, as, in the opinion of the magistrates, such a course was unnecessary; but the weight of loaves continued to be standardised at 4 lbs. 5 oz. 8 drams for the quartern loaf, and 2 lbs. 2 oz. 12 drams for the half-quartern loaf. In view of the price of bread to-day, it is interesting to note that the price of the half-quartern loaf was fixed by the last Glasgow Assize, held in 1800, at 10d. for fine wheaten bread and 7½d. for household bread, which was evidently of a much coarser and poorer quality.

Some of the Bread Assize regulations were peculiar. For instance, the baker had to produce eighty loaves from the sack of flour, and sell these eighty loaves at the exact price which they cost him, in accordance with the cost of flour. “As, however,” says Mr Cleland, “they usually were able to get two loaves more from the sack, and these two loaves were clear profit, the price at which they were sold was a consideration.” At the beginning of the nineteenth century the expenses per sack allowed to the bakers were 14/, but by 1816 this sum had been increased to 16/9.

It was within the right of any two bakers to call the attention of the magistrates to the fact that the price of bread or flour had risen or fallen, and to offer proof. When this was done the magistrates or Justices of the Peace were obliged to take evidence as to the current prices, and, if they found any variation from the last price fixed, “they shall immediately set a new price, which shall remain unaltered until a new Assize has been held.” One wonders whether the magistrates of those days were as difficult to convince that any alteration was necessary as have been the Food Control officials during the last year of the war.

“In 1801 no Assize was held, and it was left to the bakers to sell bread at such price as they could afford.” It is probable that in the results of this decision the reason for the starting of Co-operative societies is to be found, for human nature and the practices of the times being what they were, we may be sure that the bakers saw to it that, however much their profits might increase, they did not go down at all.

Mr Cleland goes on to say:—

“During the last fifteen years, when no Assize has been fixed in Glasgow, the bakers have uniformly proportioned the price of bread to the price of wheat, similarly to what it would have been had the Assize been sitting. There are instances, however, of individual bakers selling their bread somewhat lower than the general run of the trade; and baking societies have been established in the suburbs who uniformly sell their bread one penny, twopence, and sometimes even threepence on the quartern loaf lower than the bakers’ price. These societies do not sell their bread to anyone but their own members; they give no credit and receive neither profit from the concern nor interest on their capital; besides, the members are subjected to the risk of loss incident to the breach of trust in their servants. The greater part of these societies make no household or coarse bread, and no loaf less than quartern; by which arrangement it is evident the lower classes are excluded, as they neither can advance their share of capital nor at all times purchase a quartern loaf. Moreover, the bakeries belonging to these societies being all situated outside the royalty, the flour is exempt from ‘multures,’ a tax to which the flour baked within the royalty is subject, amounting to one eighty-fourth of the whole. As the Assize laws wisely determined (for the sake of the lower classes of the people) that bread shall be baked from a peck loaf down to a quarter-quartern loaf, in exact proportion, and that the twopenny and penny loaves shall be of a weight exactly corresponding to the price of the quartern loaf, it is evident that the person who manufactured the small and the coarse bread, from which the labouring classes of the community are generally supplied, all bearing the same proportion to the wheaten quartern loaf, cannot sell so cheap as the societies; among other reasons because the additional labour is very considerable, and in weighing out the aliquot parts, unless some allowance is made in the dough, the small bread will be deficient in weight when it comes out of the oven; besides, the regular baker must support his family, pay his business, and pay local taxes; he has also to run the risk attending credit, and frequently to give one penny to the shilling discount to chandlers who retail his bread.”

The above is the sum of our knowledge of these early Glasgow baking societies, but the fact that they were able to sell their bread a penny to threepence per quartern loaf below the prices charged by the private bakers, at a time when the quartern loaf cost 1/8 and 1/3, is significant. It meant that the baker was getting from 6/8 to 20/ per sack of flour over the cost of production of the societies, and that, therefore, the cost to the consumer was extortionate. Doubtless, also, the conditions which led to the formation of Co-operative societies in Glasgow prevailed elsewhere, and it is quite likely that baking societies existed at that early date in other parts of Scotland, had their day, and passed out of existence without a trace remaining. Even of those of the existence of which we do know particulars are absent; in most cases the name alone remains, and often not even that but only a tradition.

STIRLINGSHIRE AND HILLFOOTS SOCIETIES.

Early in the nineteenth century Co-operation found a home in Stirlingshire. In the thirtieth year of the century the Bannockburn Co-operative Society came into being as the result of a lecture on “Co-operation,” which was given by Mr William Buchanan, a resident medical man. So impressed were members of his audience with what they had heard that a committee was formed immediately to draft rules and take the steps necessary for the formation of a society. The rules were agreed to at a meeting which was held on 27th November 1830. Bannockburn Society still exists and flourishes to-day, after an unbroken career of eighty-nine years.

About the same time—it may have been earlier or a little later, for no information about its beginning can be found—a baking society was formed in Bannockburn, and continued to flourish for a number of years. Of the fact that the members of the other Bannockburn Society were interested in the doings of the baking society evidence is given in a minute of that society in the early ’thirties, in which it is noted that the baking society had agreed to supply Alva Society with bread. Incidentally, this entry would seem to fix a period at which the Alva Baking Society was not in existence. The Bannockburn Baking Society was amalgamated with the Bannockburn Society in 1846.

In the year 1847 one of the most flourishing baking societies in the country came into existence, for on the 23rd June in that year the Bainsford and Grahamston Baking Society was formed. Notwithstanding that general societies have grown up all round the town of Falkirk, this society continues to maintain a separate and flourishing existence, its latest balance-sheet showing a membership of 4,733 and an average output of 371 sacks per week.

Other baking societies were formed in the same district. Quite recently one of these, Stenhousemuir Baking Society, was amalgamated with the Stenhousemuir Equitable Society, after a separate existence of many years. Another baking society was situated in the little village of Carronshore. In the Hillfoots district some time in the late ’forties baking societies came into existence at Alva and Tillicoultry. The baking society at Tillicoultry amalgamated with the Tillicoultry Society in 1905, and the Alva Society with the Alva Bazaar Society a few years later.

BAKING SOCIETIES IN FIFE AND THE NORTH.

In Fifeshire, also, baking societies were coming into being; indeed, the earliest baking society whose name is known was formed at Leven in 1828. In 1840 Kingskettle Baking Society was formed, and it remains strong and vigorous to-day. It is one of the few of these early baking societies about which it is possible to give a little information. The society was only a small affair at the beginning; indeed it is not very large even to-day; but what it lacked in size it made up for in vigour, and since its formation it has never looked back. It is recorded that in its early days the bread was delivered by the aid of a donkey cart; to-day the society has several vans on the road and supplies a population of several thousands with bread.

Somewhat earlier than the formation of the society in Kingskettle a baking society was formed in the village of Leslie, situated a few miles from Kirkcaldy. The reason for its formation was the same as that responsible for the formation of others in these early days—small wages and the extortionate charges for their bread made by the local bakers. The success which attended the baking venture led in 1840 to the formation of a general society. In later years this society split over the question of adopting the Rochdale system of disposing of the surpluses, and a new society was formed which continues strong and vigorous; and with this new society the baking society finally amalgamated. Later still a society was formed in Dunfermline, which in 1866 showed a surplus on working of £493.

Meantime Co-operation was going ahead in the North. Societies had been formed in Kirriemuir, Brechin, Arbroath, and Forfar, and very early in its history Kirriemuir took up the baking of bread. Arbroath West Port Association began the baking of bread in 1846, while in the year immediately preceding—1845—Arbroath Guthrie Port Association, in altering their rules, placed first in the list of the objects of the society “to make bread and to deal in bread,” so that it is evident that the society was then baking or had baking in contemplation. This is the society which is now known by the name of Arbroath Equitable Society.

BAKING IN THE BORDERLAND.

Co-operation does not seem to have found a footing in the South quite as early as it did in the North and West, but the Borderers were not far behind, and they have proved that having once started they believed in perseverance. It was in 1839 that Galashiels Store Company was formed, and the question of bread supply was soon under consideration. In its earliest years the society seems to have had considerable difficulty in getting a satisfactory supply of bread, with the result that by 1844 they had established a bakery of their own. An interesting fact which is related by Mr Maxwell in his “History of Scotland” is that they applied for information about baking to two societies, long disappeared, Coupar Angus and Alyth. Probably some one connected with the society was a native of Forfarshire, and, knowing that these societies had bakeries, suggested that information be got from them. The number of these efforts to cheapen the staff of life must have been very great, for references to them keep cropping up in old newspapers and pamphlets, showing that Co-operative activity, much of it inspired doubtless by the teachings of Owen, was widespread in Scotland.

Hawick Store Company began a few months later than the Galashiels venture, but it was not until 1851 that the members added baking to the list of their enterprises.

GLASGOW SOCIETY.

Turning again to Glasgow, where the first Co-operative bakeries of which there is any record were established, we find that many attempts had been made in the interval to establish Co-operative trading on a firm foundation, but in vain. How many of these early Co-operative failures were due to the fact that the surpluses accruing from the trading transactions were divided in proportion to the capital held, without any regard being paid to the trade done with the society by the holders of the capital, it is not possible to say, but the system was bound to have a disturbing effect on the minds of those members who, although too poor to invest much capital, were loyal purchasers from the store.

However that may be, after a lecture by Holyoake, a fresh attempt to establish Co-operation in the city was made, and for a time the new venture seemed to flourish, only to perish eventually like its predecessors. What makes this society interesting at this point is that of it is recorded the fact that it possessed “a modern baking department,” and is said to have supplied the neighbouring societies with bread. The society came to an end in 1865, and with it ended Co-operative baking in the city for the time being. When next we hear of it it is in a new, and as it turned out, a stabler and more permanent form.

At this point it may be interesting to note some particulars of the Co-operative baking societies in existence in Scotland in 1866, as taken from the returns sent in to the Registrar of Friendly Societies in Scotland. It is probable that the list is far from complete, and it takes no account of the societies having bakeries of their own who dealt in other goods as well. These societies were:—

A notable absentee from the above list is the name of Kingskettle Baking Society.

THE FIRST FEDERATED BAKERY.

As it was in Ayrshire, in the little village of Fenwick, that, so far as is known, the first Co-operative society was established, so also to Ayrshire belongs the honour of having established the first federated bakery. Co-operation in Fenwick had died in 1801 with the demise of the old Meal Society, and it was not until 1840, when Darvel Industrial Society was founded, that it again secured a footing in the land of Burns. The society founded 79 years ago continues to flourish, but for the first twenty years it had to flourish alone. Then, in 1860, Kilmarnock Society was founded, and following it there came in quick succession Crosshouse, Auchinleck, Mauchline, Galston, Newmilns, and Catrine. In 1867 five of these societies—Kilmarnock, Crosshouse, Galston, Mauchline, and Newmilns—combined to form a baking society, while three other societies—Troon, Catrine, and Darvel—although not members, took bread from the federation. In 1870 premises were built for the federation, and the trade increased steadily. Gradually, however, the more distant societies began to erect bakeries of their own, and in the early ’nineties of last century the bakery was taken over by Kilmarnock Society, who erected a new and up-to-date bakery for themselves on the site of the old one.

COBURG STREET PREMISES

ST JAMES STREET PREMISES

M‘NEIL STREET PREMISES (1886–1890)

M‘NEIL STREET PREMISES (1890–1894)

CHAPTER III.
THE FIRST YEAR.

GLASGOW IN THE ’SIXTIES—THE SOCIETY FORMED—MEN WHO WROUGHT—THE FIRST BAKERY—STARTING BUSINESS—A DISASTER AVOIDED—BETTER PROSPECTS—A MANAGER APPOINTED—LARGER PREMISES WANTED—SOMETHING ATTEMPTED, SOMETHING DONE.

In the ’sixties of last century Glasgow was not a pleasant place for working men to live in. The city was contained in the four parishes of Barony, City, Govan, and Gorbals; only a small proportion of its population being resident in the last-named parish, however. The conditions of life for the workers were not good. Houses were small and inconvenient, disease was rampant, and poverty the common lot. There were 87,604 inhabited houses in the city in the year 1864, and of these 35,788 were rented at £5 per annum, or under; the average rental being £3, 7s. 3d. Other 35,393 houses had rentals of between £5 and £10, the average rental being £6, 17s. 3d., and the average rental of these 71,181 houses, forming 81·75 per cent. of the total housing accommodation of the city, was £5, 5s. per annum. Further light is thrown on the housing conditions by the fact that, while the aggregate rental for these 71,181 houses was £373,441, the aggregate rental for the remaining 16,423 houses was £502,687; an average rental per house of £30, 10s. The proportions of these lowly-rented houses were fairly equal in all four parishes, and even when allowance is made for the fact that rents were much lower in those days than they have been in recent years for similar accommodation it is evident that the housing conditions left much to be desired, and that the “homes of the people” must have been veritable hotbeds of disease. In the statistics consulted the proportion of one-apartment houses is not given, but in view of the whole-hearted condemnation of such houses voiced by Dr Russell, Medical Officer of Health for Glasgow, twenty years later, and the large proportion of Glasgow’s citizens who were then living in houses which were kitchen, parlour, bedroom, and washhouse all in one, it is easy to believe that the houses of the earlier period were no better than the low rentals would warrant.

Further evidence of the correctness of this assumption is found in the vital statistics of the period. In 1864 the deaths of children under five years of age were 46·93 per cent. of the total deaths; in 1862 they had been 48·85 per cent. of the total. In those years the children were dying at the rate of one in every nine of the population, a deathrate nearly equal to that of the British Army during the four years of war. The effects of poverty and bad housing on the health of the population were further evidenced by the number of deaths of children under five from tubercular diseases. In 1863 these were 381; in 1864, 378; while the total deaths from tuberculosis were 1562 and 1763 respectively for the same years. In his report to the Corporation for the year 1864, Mr Watson, Town Chamberlain, points out that there was ample scope in the statistics he had compiled for showing the need for benevolence “in alleviating the character of the dwellings of the very poor,” and he urged the need which existed to provide other and better houses. At the same time he notes that employment generally was good in this year. In 1868, 786 children under five died from consumption, and in 1869 the total infantile deathrate (children under one year) was 48·20 per 1,000. In the Clyde area it was 56·81 per 1,000.

It was in a city in which the conditions of the people were such as the figures quoted above reveal that, on the last Monday in January 1869, what was destined in the course of fifty years to become the largest business of its kind in the world opened its doors for trade. For six years the idea of the federation of Co-operative societies for trading purposes had been occupying the minds of the Co-operators of Scotland, keenly interested as they were in the progress of the North of England Co-operative Wholesale Society. Only a little over two years before, also, those of them in the West who took an interest in the affairs of their Co-operative neighbours had seen the Co-operative societies of Ayrshire join together to form a baking association for the purpose of supplying themselves with bread; and in September 1868 the Scottish Co-operative Wholesale Society had been safely launched, after several years of anxious consultation and consideration. No sooner had the S.C.W.S. been sent on its way than the stalwarts of the West turned their attention to yet another venture. Since the collapse of the second Glasgow Society there had been no Co-operatively-produced bread in the city. The price which was being charged for bread by the private bakers was considered too high, and yet not one of the societies thought itself strong enough to finance a bakery of its own.

They had faith in the Co-operative principle, however, and what they could not do as individuals they fancied they would be able to do in combination. They reasoned that, if a number of people by combining together could procure the goods they needed more cheaply than any one of them alone could do, there was no good reason why a number of societies by combining together could not do what no one of them acting alone was strong enough to do.

It is to Mr Gabriel Thomson of St Rollox Society, then treasurer of the newly formed S.C.W.S., that the honour of first bringing the idea of a federated bakery publicly before the co-operators of the West belongs. The first idea was that the work should be undertaken by the recently-formed Wholesale Society, but a little consideration showed that this plan was hardly feasible. It was thought that it would scarcely be right to adventure the capital of societies scattered all over Scotland in an undertaking from which many of them could not possibly derive any direct benefit, and so this idea was dropped, and finally it was decided to start a federated baking society.

In the new venture St Rollox Society was the prime mover. In those days the men who controlled St Rollox Society believed in the infinite possibilities of the application of Co-operative principles. They were joined with other Glasgow societies in a drapery federation. They took up shares in the St Rollox Cooperage Society, in the Ironworks, and in the Oakmill Society, each as it arose, and to Co-operation they looked for escape from the exactions of the master bakers of Glasgow. A meeting was convened by them in the month of October 1868, and to that meeting Mr Gabriel Thomson read a paper on “Federation,” in which he dealt at length with the principle as it could be applied to the baking of bread. This paper so strongly influenced the delegates that there and then they approved of the principle, and went back to their societies to report. In a few weeks another meeting was called, which was attended by representatives from Barrhead, St Rollox, Paisley Provident, Paisley Equitable, Glasgow Eastern, Anderston, Parkhead, Johnstone, Howwood, Glasgow Southern, Motherwell, Lennoxtown, and others. At this meeting the proposal was discussed further, and at the close the delegates pledged themselves to go back to their societies and do all in their power to get these to take part in the formation of the federation.

THE SOCIETY FORMED.

A third meeting was held a fortnight later, and at this meeting eight societies intimated their willingness to join in forming the Federation. These were Anderston, Barrhead, Cathcart, Johnstone, Lennoxtown, Motherwell, St Rollox, and Thornliebank. An interim committee was formed, consisting of Messrs Gabriel Thomson and John West (St Rollox), James Borrowman and Alexander Douglas (Anderston), James Ferguson and Alexander Johnstone (Barrhead), and Joseph Gibb and Donald Cameron (Thornliebank). Three of their number—Messrs Thomson, Borrowman, and Cameron—were appointed a sub-committee to look out for suitable premises, consider the working of the bakery and the delivery of the bread, and report to a future meeting.

No better men could have been selected for the task. Mr Thomson was the originator of the scheme, and was also the treasurer of the S.C.W.S. Mr Borrowman had already made a name for himself as the most powerful advocate of Co-operation that Scotland had produced. He had taken a leading part in establishing the S.C.W.S., and was now its manager; while Mr Cameron was not only a shrewd and earnest Co-operator, but appears also to have had some knowledge of the baking trade. We can well imagine the zeal and earnestness with which they set about their task. They knew that they were setting out on a journey along an untrodden path, but they had a faith which lighted up the dark places before them, and a determination to see the mission on which they had entered, the first step to the fulfilment of their hopes, accomplished as soon as possible. Inside two weeks they were back to the parent committee, their task accomplished, bringing with them particulars of a bakehouse which they thought would suit the requirements of the new society, a scheme for carrying on the business, and particulars about methods of delivery. Their report was approved, the bakery at 52 South Coburg Street was leased, and instructions were given for its immediate repair.

The minute of committee, the first minute of the new Society, is as follows:—

“16th January 1869.

“A meeting was convened to-day to hear the report of the committee in the office of the Scottish Co-operative Wholesale Society. At this meeting the following societies were represented—Barrhead, St Rollox, Anderston, Eastern, Motherwell, Dalziel, Cadder, and Thornliebank. A report was submitted by the committee stating that premises had been secured and that they were convinced that the business would pay well, and recommended an immediate start. The report was accepted and the following sub-committee was appointed to carry out the resolution—viz., Gabriel Thomson, president; John West, treasurer; James Borrowman, secretary; and Alexander Douglas. Same committee to get the rules printed in accordance with the alterations made on the Ayrshire United Co-operative Societies Baking Association, and submit the same to the general meeting of the delegates before registration.”

All that now remained to be done was to get the bakery into working order, and ten days sufficed to have this work completed. Meantime, however, the committee were not idle. Vans had to be procured and other details of the work inside and outside seen to, and bakers had to be employed. The committee met on 23rd January, and appointed a Mr Currie as foreman baker, while on 6th February they decided to purchase a second van at a cost of £18 and a horse for a similar sum. A vanman was also engaged at a wage of 20/ a week.

These little details are all in the minutes, but no mention of the situation of the bakery appears therein, nor is there any mention made of the date of beginning business. These old-time Co-operators were so engrossed in the work they were doing that they had no thought for the people who would come after them, eager for information about what they had done and how they had done it. It would appear from the minute book itself that it was written up at a date later than the beginning of the Society, probably from notes made by Mr Borrowman at the time, and this may account for the omission of any mention of the date of beginning business or of the location of the bakery.

We know, however, that the bakery was situated in South Coburg Street, a street which connected Bedford Street with Norfolk Street, parallel with and immediately behind Eglinton Street. The buildings in this street are evidently much older than those of Eglinton Street. The site of the first premises of the U.C.B.S. is now covered by a part of the Coliseum theatre. Here, in this small place, the modest beginning was made on the morning of 26th January 1869. One is curious as to the quantity turned out in this first baking, but that is a matter on which all records are silent. Occasionally we are told of the purchase of flour and of the price which was paid for it, but for some time no mention is made of the quantity baked into bread. At that time the secretary was a very busy man. Not only was he during these first few months virtual manager of the bakery, but he was also the manager of the S.C.W.S., and he had his hands full of work.

Although the minutes are silent on some phases of the work of the committee, however, they are prolix enough on others. The wages of the vanman are given, and at the same meeting—that of 6th February—we are told that the wages of the foreman baker were fixed at 34/ a week. It was also agreed at the same meeting that the bread be sold at current retail price and that a discount of 10 per cent. be given. Three weeks later the need for a larger van was being discussed, and at the next meeting, held a week later, it was decided that a Parkhead van-builder be given the order to build a van large enough to contain fifty dozen loaves; and that another horse be purchased. A shop in connection with the bakery had now been opened, and it was decided that the shop hours should be from eight a.m. until seven p.m. The question of a weekly half-holiday, presumably for the girl in the bread shop, was also considered, but allowed to lie over. From the next minute it becomes evident that the committee’s idea of the class of horse which was required for the work of the Society had undergone some change during their month’s experience, for whereas the first horse which they purchased cost £18, they paid £40 for the next one.

At the beginning of the month the hours of the shop girl had been fixed at from eight to seven, but on the 27th of the same month an alteration was made, and it was agreed that the shop should open at 7·30 in the morning and remain open until 7·30 at night. On Mondays it was to be shut at 5 p.m. and on Saturdays to remain open until 9 p.m., while the price of bread was fixed at 5½d. The committee were now finding that they required stable and van room more than they had available, and agreed to advertise for it. Evidently the shop girl found the 7.30 a.m. start too early for her, for at a meeting of the committee held a fortnight after the earlier opening of the shop had been decided on, the minute records that she should “be spoken to about attending at her hour in the morning.”

DIFFICULTIES BEGIN.

By this time the members of the committee were beginning to realise that there were difficulties in running a baking business. Complaints had been made that the bread was sour, and the foreman baker laid the blame on a change of temperature. The explanation was quite likely to be the correct one, although a foreman with an interest in his work might have been expected to take precautions against such difficulties. The committee were not long in discovering that this was just what their foreman did not do. At the next meeting his attention was again called to complaints about the bread. This time it was being sent out to the shops in a dirty condition. He was also informed that the blend of flours which he was using was costing too much, and the committee decided that they should draft a statement of the proportions in which the differently priced flours were to be used. It was also decided to dismiss one of the vanmen on the ground that he was careless about his work and his horse.

In the case of the baker matters went from bad to worse until, an earlier historian[^[1]] tells us, he struck work altogether. The committee for some time had been in constant fear that some morning the ovens would be found cold, or else that the bread would be burnt black, and the crisis came when, at 11 p.m. one Thursday toward the end of May, the president was aroused from sleep to receive the intelligence that the Baking Society had given up business. This was serious news; but sure enough, when he had hurriedly dressed himself and made his way with all speed to Coburg Street, he found the bakery in darkness. Mr Borrowman was next awakened, and told the doleful tidings. Both gentlemen hurried to the foreman’s house to discover that happy-go-lucky individual soundly asleep, careless that hungry Co-operators would be breadless in the morning. He was induced to go to work, and next day the committee were hastily summoned, only to discover that the foreman was tired of his job, and had fully made up his mind that he was going to be responsible no longer for supplying Co-operators with the staff of life. The committee were at their wits end, but there was nothing for it but to get another baker. Here the minutes take up the story. The committee at their meeting spoke to the foreman about the loss on the first quarter’s working, which amounted to £37. His reply was to the effect that he never expected to make a profit the first quarter. They then spoke to him of the numerous complaints which were being received with reference to the quality of the bread, and he replied that as he was unable to do better the best thing he could do was to resign. His resignation was accepted, and after very considerable difficulty another man was found to take his place; but he only remained a week or two, and ultimately, in June, another man was procured who was able to do better. No balance-sheet was printed for any of the quarters in the first year, but a written statement, showing the position of the Society, was sent to each member. The first quarterly meeting was held on 29th May, when the rules were adopted. Mr Gabriel Thomson was elected president; Mr John West (St Rollox Society), treasurer; Mr James Borrowman (Anderston Society), secretary; and Messrs James Ferguson (Barrhead), Joseph Gibb (Thornliebank), Alexander Douglas (Anderston), and Weir (Motherwell) as committee. It was also agreed that the secretary be paid £1, 10s. and the treasurer £2 quarterly.

[1]. The United Co-operative Society Year Book, 1896.

With the appointment of a new foreman the bakery was now running more smoothly than during the first quarter, but it was not yet paying its way, for the minute of 29th June records the fact that the loss at that date was £25. The explanation of this position, as given by the secretary, was that a liability of £4, 15s. had not been taken into account at the last balance, some flour which had been bought had not been used when the price fell, and this had entailed a loss of £6, 10s. An encouraging feature, however, was a report given by the new foreman which showed that a profit had been made in each of the two weeks with which it dealt. The sales were also rising, but the committee were not satisfied with the trade the Society was doing, and were desirous that the turnover should be raised to sixty sacks or seventy sacks a week, as they thought that with such a turnover they would have a good profit. As a preliminary step to securing this turnover they determined to send out several of their number as missionaries to societies which had not yet joined, with the object of getting them to do so, or, at least, to purchase their bread from the Society. Amongst other minor difficulties with which the committee were being faced at this time was the lack of suitable stabling for their horses. Their stable was too small, and it was unhealthy. It is true that horses were not very costly, but neither was money too plentiful, and they could not afford to run any risks. One of the horses which they had bought in the beginning of the year was ill, and had to be sold for £6. A decline of £12 in the value of a horse inside a few months was evidence that there was something wrong somewhere, but suitable stabling was difficult to secure.

A MANAGER APPOINTED.

In the minutes the most important things sometimes crop up in the most casual manner. At a meeting of the committee which was held on 18th September, one of the principal themes of the evening’s discussion was the purchasing of new horses. A horse was to be returned as unsuitable, and another horse priced at £30 was to be taken on trial, as it would not suit the committee that anything should be paid to the owner as “rue bargain.” Then, quite casually, the minute goes on to mention that “the engaging of Mr Sturrock as manager of the Baking Society was then gone into.” This is the first mention made in the minutes of the proposal to appoint a manager; but, from the document which had been prepared and which was transcribed into the minute of the meeting, it is evident that the subject had been under consideration for some time. It is interesting to note in this agreement that “the manager was not to exceed 3/ for baking and firing.” He was to determine “the quality and also the maker’s flour he shall use, but the committee reserve the right to prevent the price of flour used any week exceeding the average price of extra flour.” He was to keep the accounts of the Society, and prepare weekly statements which would give

“the number of sacks baked and also the cost of the flour and other materials, wages, rent, cost of horse-keep, etc., giving the total of the whole, with a statement of the number of loaves baked from each sack, the total number of dozens of loaves produced, with smallbread; also the cash value of the loaves and smallbread added and the expense with the cost deducted, showing clear profit; also a statement showing the number of dozens of loaves and smallbread sent to each society, with the number left on hand at the end of each week.”

The pay of the manager was fixed at 35/ per week until the Society was able to pay a bonus of sixpence per £, when his wages were to be advanced to 40/ per week.

Already the directors were beginning to find that if it was difficult to sell as much bread as they desired, it was equally difficult sometimes to get payment for the bread they did sell. There was hardly one of the Glasgow societies but had to struggle hard to keep going at all. Of all those societies in the city to which the new venture must look for its best support there were not more than two which emerged safely from the struggles of those early days, and those two survived only because the men in charge of them refused to recognise defeat and kept going even against the advice of the friends who foresaw in a longer struggle but greater disaster. Of the eight societies which had joined in the formation of the Federation only two were pursuing smoothly the even tenor of their way, free from the irritating worries produced by the difficulty of making ends meet. These two societies—Thornliebank and Barrhead—were associated with the Bakery from the very first meeting, and being successful they were in a position to pay their way promptly; but some of the others were not so fortunate, and so, in October of the first year, we find the manager being instructed by the committee to write to the societies and point out to them that as the capital was limited it would be an advantage if payment was made promptly when the accounts were rendered. Frequently during the next few years the same complaint crops up, and there were times when the Society was owing the S.C.W.S. large sums of money which at the moment it was quite unable to pay because of the fact that the societies were not paying promptly for the goods they received.

The third quarterly meeting took place on 4th December. Although there is nothing about it in earlier minutes, a hint is given that the committee or the manager had not been keeping to the strict line of instructions given at the August quarterly meeting, for a motion is agreed to “that the alteration in the price of bread take place on the same day as the Glasgow prices.” A profit had been made on the quarter’s transactions, but it was not large enough to divide, and the delegates gave authority to the committee “to apply it to redeem fixed stock.” About this time the Society was having trouble with the quality of flour purchased. The flour was returned, and the manager was authorised to cancel the order if that sent in exchange was not of better quality. The committee at the close of their first year were discussing the necessity of getting more ovens, as the old bakery was quite inadequate to meet the trade which was being done. It was agreed to endeavour to get other two ovens; and, failing that solution of the difficulty, to see if a nightshift could be employed. Later minutes are silent as to how the difficulty was overcome during the three months which elapsed ere the new bakery in St James Street, Kinning Park, was ready for occupation.

SOMETHING ATTEMPTED, SOMETHING DONE.

During the first year the committee had been feeling their way. They had met and overcome many difficulties, some of which, like the incident of the chairman and secretary hunting up a recalcitrant baker in the small hours of the morning in order to induce him to go to work, have a humorous enough aspect when viewed at a distance of fifty years, but must have seemed tragic to the actors, for the whole future of the infant venture would seem bound up in an unbroken sequence of bread deliveries. For the first year the committee met in the premises of the S.C.W.S. in Madeira Court. Usually the meeting place was the warehouse, for the room in which Mr Borrowman worked was but small, although it possessed the only window in the place. There they fitted up a temporary table, using boxes for seats. Indeed, so long as Mr Borrowman continued secretary of the Baking Society, the committee continued to meet frequently in the Wholesale’s premises, although the sub-committee usually met in a small room, 10 ft. by 6 ft., fitted up in the bakery premises at St James Street. At times the full committee of sixteen met here also, packed together like herrings. Such were the conditions to which those heroes of the Co-operative vanguard accommodated themselves in order that the cause they had at heart might prosper.

During the first year the Society had baked 2,116 sacks of flour, equivalent to an average turnover of 40¾ sacks per week; but as the turnover during the latter part of the year was approximately 70 sacks per week, it must have been much less than 40 at the beginning. For the first six months losses amounting to £62, 10s. had been made, but in the second six months these losses had been wiped out, the fittings had been depreciated by over £30, and although no dividend was declared they had a balance of surplus to carry forward which amounted to £23, 3s. 1d. The value of the goods sold during the year had been £5,081, 13s. 6d.; the value of the fixed and live stock was £243, 15s. 8d.; and the value of their building, as shown in the balance-sheet, £110, 9s. 6d. The societies held share capital amounting to £193, 12s. and loan capital amounting to £145, and £10, 6s. 1d. had been paid as interest. Thus the position was quite good. The corner had been turned; a surplus was being shown most weeks, and the directors were assured that with careful nursing and a steady influx of trade prosperity was in sight. Many rocky headlands had yet to be weathered, many shoals avoided, adverse winds and tides overcome, ere their bark reached the wide open sea of prosperity; but the mariners were shrewd and careful, and although for one reason and another several changes of captain and even of crew took place, the new crews and the new captains sailed their ship always with the skill of the old and, successfully overcoming all difficulties, were at last wafted by fair winds over a smooth sea.

CHAPTER IV.
ST JAMES STREET BAKERY.

A HINDRANCE TO THE PROGRESS OF THE SOCIETY—THE SEARCH FOR NEW PREMISES—THE NEW BAKERY—RUNNING INTO DEBT—THE CHAIRMAN RETIRES—MORE CAPITAL WANTED—SLOW PROGRESS—THE MANAGER RESIGNS—JOINING THE WHOLESALE SOCIETY—PAYMENT OF BONUS COMMENCED—MR BARCLAY RESIGNS—ADDITIONAL PROPERTY PURCHASED—MR CAMERON RESIGNS—MR ANDREW BROWN BECOMES CHAIRMAN—BAD BREAD AND DELIVERY DIFFICULTIES—FURTHER EXTENSIONS—MONEY DIFFICULTIES—MR BORROWMAN RETIRES—BECOMING BISCUIT AGENTS.

Long before the end of the first year of their tenancy of Coburg Street bakery the committee had come to the conclusion that if their business was to grow and flourish they must remove to more suitable premises at the earliest possible moment. As one of themselves put it, they discussed “the present bakery as a hindrance to the progress of the Society.” The result of this discussion was that a circular was issued to the societies, in which the committee recommended the building of a new bakery. During the months of October and November 1869 the question was discussed on several occasions, and at least two special meetings of the committee were held for its consideration. At the second of these, held on 6th November, a sub-committee was appointed to look out for a site, and a week later it was decided to write to Mr M‘Kay, of Alva, asking his advice on the subject. There is no doubt that the matter was urgent. The trade was growing rapidly, and there were numerous complaints regarding late delivery of bread. The subject crops up in the minutes again and again, and the manager is unable to get out enough bread early in the day to meet the demand.

Still, the committee are cautious. They have now discovered that the Society can be made a success; they have also gained some knowledge of the difficulties which are to be encountered; and so, not content with applying to the Alva Baking Society for information, they also get into communication with the Dunfermline Baking Society, and receive a letter in which that society’s bakery is described. Meantime, the sub-committee appointed to look out for a site had not been idle. They had discovered a building at the corner of St James Street and Park Street, Kinning Park, which was for sale, and which they thought could be so altered as to make suitable premises for the Society and, after due consideration doubtless and careful inspection, although the minutes are silent on the subject, the matter was brought before the December quarterly meeting and purchase was approved of, provided the cost was not more than £400.

THE NEW PREMISES.

The building was purchased at once, and steps were immediately taken to have it fitted up as a bakery. It was decided to erect four ovens at an estimated cost of £210 for the four, while a part of the building was fitted up as a stable. To-day, the fitting up of a bakery of this size would seem quite a small matter and not at all a thing to make a fuss over, but it is easy, nevertheless, to imagine the loving care with which those old veterans watched the transformation which was taking place; how they deliberated over the merits of asphalte as a satisfactory material for the floor, and the utility of cast-iron fittings as against wooden ones for the stable. The manager made a special journey to Irvine to arrange at the quarry there for proper stones for the oven soles, what time the sub-committee were arranging to get estimates for tables and troughs for the bakery. By the end of January the manager was able to announce that the stable was finished, and was instructed to employ a man to take charge of it and attend to the horses. At the same meeting it was agreed that the S.C.W.S. be allowed stabling for a horse and van, and that they pay a fair share of the expenses. Already, too, the new bakery was so far advanced towards completion that the committee had begun to consider the question of having a formal opening ceremony, and a supper, to which it was proposed that “two or three members of the committee of each society within easy distance should be invited, whether they were members or not.”

By the middle of March the manager was in a position to state that the bakery “would be ready for business in two or three weeks’ time at most.” At the same time it was decided to erect a house for the manager on the property, the rent of the house to be considered later. At the same meeting the committee had a visit from Mr Keyden, writer, who stated that he had learned that the Society were desirous of raising a loan on their property, and had called to find out what the amount was and what rate of interest they were willing to pay. The secretary stated that the amount would be from £400 to £500, and the rate of interest 4½ per cent. per annum. At a later meeting the question of the opening celebrations was again considered, when, amongst other decisions arrived at, was one to the effect that two gallons of “drink,” presumably whisky, should be procured for the use of those who attended. It was agreed that invitations be sent to societies who were members and to others within a convenient distance, also to the employees of the Society, past members of the committee, Mr M‘Kenzie, of the P.C.M.S., Mr Marshall S.C.W.S., and such Wholesale Society directors as lived within a suitable distance for attending. The decision about the whisky evidently did not find favour with some people, for at the next meeting of the committee the matter was again under consideration, “and after mature deliberation it was then agreed to have none, as the committee had been informed that there were many objections to the same.” In the beginning of May the new bakery was opened for business.

But in thus following up the negotiations about the new premises, we have been running ahead. The fourth quarterly meeting was held on 19th February 1870, when some important changes were made in the method of conducting the business. For the first year each society which was a member of the Federation had a representative on the committee, and this arrangement was continued by resolution of the quarterly meeting. The whole committee resigned in order that it might be reconstructed, and Mr Thomson was re-elected to preside over the business of the meeting. Some of the regulations drafted that afternoon are amusing. It was decided that each member of committee receive one shilling for every meeting of the committee which he attended, along with travelling expenses; but it was also decided that any member of the committee who was later in arriving at a committee meeting than fifteen minutes after the time fixed for the meeting should not only forfeit his allowance for attending, but should also, unless reasonable excuse was shown, be fined sixpence for being late. What was to happen if a member did not attend at all was not stated, but no member of the committee was to be paid his allowance unless he was present at the meeting.

THE CHAIRMAN RETIRES.

A large number of changes were made in the personnel of the committee at this meeting. Mr Gabriel Thomson retired from the presidency, and Mr William Barclay, also of St Rollox at that time, was elected president in his stead. The other members of committee were Messrs Ferguson, Barrhead; Gibb, Thornliebank; John Borrowman, Anderston; Kinniburgh, Cadder; Mungall, Cathcart; and Shaw, Lennoxtown; with Mr James Borrowman still secretary. At this meeting exception was taken to the propaganda activities of the committee, for a letter from Paisley Equitable Society was read to the meeting in which the Society was charged with trying to injure that society’s trade with the Provident Society, and the secretary was instructed to reply denying that such had been the policy of the Society. It was also from that quarterly meeting that the proposal came that a house should be built for the manager in the new premises, in order that he might have the premises under his supervision at all times.

MORE CAPITAL WANTED.

As the Society, at the end of the first year, had only a paid-up capital amounting to £338, all of which was locked up in stock, fixtures, etc., it was evident that they required much more if they were to finance their larger venture. The visit of Mr Keyden has already been referred to, and ultimately a bond on the property was taken up through him, but the committee were desirous of securing capital also from the societies. These were written to by the manager, requesting them to increase the amount of loan capital they had with the Society, and by the middle of April six societies had increased their loans by an aggregate amount of £275.

M‘NEIL STREET PREMISES (1897–1903).

CLYDEBANK BAKERY

The insurance on the new premises was fixed at £1,000, divided into £400 on stock, £300 on the buildings, and £300 on horses and vans. For several years the Society continued to suffer from lack of capital, however, and it was not until it had been in existence for nearly ten years that the committee ceased to be troubled with financial worries. On several occasions appeals were made to the delegates attending the quarterly meetings that they would bring under the notice of their societies the urgent need of the Baking Society for more capital, and for several years a system of receiving loans from private depositors was adopted, but this system was stopped, except in the case of employees, when the Federation began to receive enough capital from the societies to meet its needs.

SLOW PROGRESS.

The difficulty which arose from shortage of capital was not the only one with which the committee was faced, unfortunately. Foreman baker after foreman baker was tried, but still complaints of the poor quality of the bread continued to pour in. Added to this there were the difficulties of delivery. When the Co-operators of to-day see the vans of the U.C.B.S. arriving at the various shops with the regularity of clockwork, they may have some difficulty in realising that fifty years ago the problem of prompt delivery was a very serious one, and one which engaged the attention of management and committee almost continuously for several years. In part, this was due to the fact that the baking of bread had not been reduced in those days to a state of scientific accuracy, as it is to-day, and partly it was due to the shortcomings of the human element, which has always a tendency toward failure at the most unexpected times and often in the most unexpected ways. The craze for new bread was as great fifty years ago as it is to-day, but the difficulty of delivering it was very much greater, and it was especially great in the earlier years of the Baking Society’s existence because of the fact that the majority of the societies in the outer area supplied by the Federation were but small and could give but small orders, thus increasing the cost of delivery until sometimes it transformed trade which should have been profitable into a losing business.

So much so was this the case that, in the first two or three years, society after society, which had joined the Federation and were anxious to trade with it, had to be asked to withdraw because the cost of delivery was so great that it could only be done at a loss to the Federation. The first societies to suffer in this way were Motherwell and Dalziel. At a later date, Vale of Leven Society, which had been having their bread sent by rail, had to withdraw, and later still, Lennoxtown were asked to make arrangements for getting bread elsewhere as soon as possible, on the ground that the Baking Society was losing eleven shillings every week through delivering bread to them by van.

As time went on, too, the position was becoming more and more difficult for the manager. He does not seem to have been a strong man, or else he had grown careless. At all events, at one quarterly meeting when the criticisms of the delegates had been even more searching than usual, he left the meeting before its close, and when the committee adjourned to the committee room at the close of the meeting they found a letter from him intimating his resignation. Whether it was with the idea of getting a little of his own back, or because he thought that having engaged the employees it was his duty to dismiss them is unknown, but when he took his own departure he also dismissed the office and breadroom staffs, and there was a little difficulty for a day or two until they were brought back or others procured in their places. After discussion, the committee decided that they would not advertise for a manager, but for a confidential clerk and cashier, and Mr Robert Craig, then bookkeeper with the S.C.W.S., was the successful applicant.

The trade was increasing slowly but steadily, and during the second year averaged 90 sacks per week. Shortly after the removal to the new bakery the Society had four vans on the road, and was supplying eleven societies. In June of that year it was decided to take up thirty shares in the S.C.W.S., and pay one shilling per share, but a month later this decision was departed from in favour of one that the question of joining the Wholesale Society be left to the quarterly meeting. This decision had its origin most probably in the fact that the Society had no money to spare at the moment for investment, as at the same meeting it was decided that the manager make an effort to pay the flour merchant and take flour into stock.

At the quarterly meeting it was decided that the Society should join the S.C.W.S., and take up two shares for every society which was a member of the Federation. At the same time, the members of the committee were becoming more confident in their handling of the business, one evidence of this being the fact that they were purchasing flour in much larger quantities. The new bakery had only been in operation for six months when the trade had increased so much that the erection of other two ovens was being considered, and at the same time the reroofing of a shed for the purpose of turning it into a flour store was agreed on, and the manager was instructed to “get estimates of the cost of having the floor laid with any material that would keep out rats.” It would appear, however, that the cost was more than the committee could venture to face at the moment, and it was not until the following April that the question of new ovens was again raised, when all the societies were written to on the subject and all agreed to the proposal of the committee.

Meantime the second year had ended with the position of the Society improving. The sales had amounted to over £9,000, and a dividend of sixpence had been paid each quarter. Stock and buildings were valued at £1,370, while the members held £279 in share capital and £709 in loans. The nucleus of a reserve fund had been formed, and the property of the Society had been depreciated by £150. It is interesting to note also that with the beginning of the second year the Society had begun to pay bonus on wages, a practice which has continued without intermission ever since. The beginning was humble—the amount paid in this first year was only £20, 17s.—but it marked the recognition of the principle that the worker was something more than a mere hireling; that he was a being who had something to do with the making of profits, and therefore had a right to share in them.

The committee continued unremitting in their attempts to extend the trade of the Society. Every complaint was inquired into closely, and every little while a deputation was sent to one or other of the societies with the view of inducing them to become members or to extend their trade. It is interesting to note also that the cost of flour, which had been 31/ in May 1869, had advanced to 41/ in April 1871. The first quarter of the third year was a decidedly successful one, as it showed a surplus over cost which enabled a dividend of one shilling per pound of sales to be declared. The membership had increased to 14, and the turnover to 102 sacks per week, an increase of 11 sacks per week in one quarter. At the end of this quarter Mr Barclay retired from the presidency, after having held that position for fifteen months, and Mr Donald Cameron, Thornliebank, was elected to the chair. At the following quarterly meeting it was agreed that, in future, tickets, with a programme of business for the quarterly meeting, be sent to the societies.

Before the end of the year a building in Park Street, adjoining the Society’s premises, came on the market, and was purchased by the Society for £735. At the same time the building of other two ovens was undertaken, thus bringing the capacity of the bakery up to eight ovens. The building which was purchased was in use as an engineering workshop, rented at £67, 10s. per annum, and the purchase price included an engine and boiler.

At the quarterly meeting which was held in December, the first mention was made of a subject which was to engage the attention of many quarterly meetings before being finally disposed of. This was a suggestion by Johnstone Society that the Baking Society should consider seriously the possibility of opening branch bakeries as their business extended. Meantime, Vale of Leven Society had approached the Baking Society with the view of having bread delivered to them by rail, and a van had been fitted up for this purpose, so the Board came to the decision to hold over the consideration of branch bakeries until they saw what the results of conveyance by rail were going to be. The delivery difficulty was getting more acute every week at this time, and it was found that two societies which had ceased to take their bread from the Society, and whose action had been described by the committee as “utterly subversive of true Co-operation and detrimental to the interests of the Baking Society,” had done so because of the irregularity of delivery, and declared themselves “willing to begin again as soon as they could see an assurance of a regular and steady supply.”

In order to suit the convenience of Glasgow societies an arrangement came into force in the beginning of 1872 whereby the Baking Society undertook to deliver bread at the houses of the members of these societies for an additional charge of 9d. per hour for the time spent in this work. About the same time the question of baking biscuits on days when the general work was easy was considered, and this new branch of business was finally entered on. The turnover for the third year was larger than that of the first two combined, being 6,341 sacks; an average of 122 per week. Owing to the rise in the price of flour, however, and in some degree also to the heavy costs of delivery, the surpluses on the year’s trading showed considerable fluctuations; for while the dividend earned during the first quarter was one shilling, those for the succeeding quarters were fivepence, sixpence, and threepence respectively. The Society was now quite a large property owner, the value of the buildings as shown in the balance-sheet being £2,421, while the value of live and other stock was £870. Several new vans of a four-wheeled design had been built during the year in order to facilitate delivery, and several new horses had also been purchased. The cash value of the sales for the year was over £16,000, and the combined share and loan capital was £1,411. Reserves had been increased to £54, and buildings and stocks written down by £368 during the year.

In March 1872 Mr Cameron resigned from the presidency of the Society as he had become an employee, and Mr Andrew Brown (Paisley Provident) was elected president until the quarterly meeting, when his appointment was confirmed. Meantime the Society was having some trouble with the last pair of ovens erected. The gentleman appointed as inspector reported that they were not according to specification, and were of less value than had been contracted for. At the same time he suggested that an endeavour should be made to settle the matter amicably, “as a lawsuit would result in a loss to both parties”; which sensible advice was taken by the committee, who, however, decided “to retain the money lying in their hands until satisfied with the finish and durability of the work.” They also decided to deduct £10 from the estimate price for departure from the terms of specification. At a later meeting, however, it was decided to meet the oven-builder half way and be content with a deduction of £5.

For some time negotiations had been going on between the Society’s tenant of the engineering shop and the committee on the question of whether the boiler in that shop, which was the property of the Society, should be kept in repair by the tenant or by the owners. The committee contended that, according to the terms of the lease, the duty of keeping the boiler and other machinery in repair devolved on the tenant, but as a way out of the difficulty offered to sell the boiler and engine to him. The matter was finally adjusted by the tenant taking over the engine and boiler, and paying for them by an increase in rent amounting to £5 per annum. At the quarterly meeting which was held on 2nd June 1872 the balance-sheet was submitted to severe criticism, the ground of complaint being the smallness of the profit shown in view of the increasing sales of the Society. For the first time in the history of the Society the turnover had exceeded £2,000 for the quarter, but the surplus was only £119, and the dividend sixpence, while nothing was added to the reserve fund. The delegates to the quarterly meeting also combined to express considerable dissatisfaction with the quality, shape, and general appearance of the bread, and the committee were urged to take energetic measures to place the Society in a better position in this respect as well as in that of profit. At almost every meeting of the committee complaints were being made about the quality of the bread and lateness of delivery, and they were at their wits end to find a remedy. Discussions took place meeting after meeting about difficulties of delivery, varied every now and again by a discussion on the subject of the high rate of expense. Investigations into the cost of baking were set on foot, but with no results. A suggestion was made by Paisley Provident Society that the discount allowed to the societies be reduced from 10 per cent. to 7½ per cent. in order to cover losses in working, but no action seems to have been taken in this direction at the moment. In order to find remedies for the continuous complaints about the quality of the bread and its delivery, a rearrangement of duties took place; the stable foreman being made responsible for the delivery, and the foreman baker for the quality of the bread, while the manager continued to act as cashier and bookkeeper. These alterations did not seem to make much difference, however, as complaints continued to come in with as great frequency as before.

The arrangement which had been made to supply Vale of Leven Society with bread had evidently not been working satisfactorily, for that society intimated its intention of withdrawing from the Federation. The adjustment of the terms of this withdrawal took many months of negotiation. It was on 4th May 1872 that the committee received the intimation that the society intended to withdraw from the Federation, but it was not until 19th April 1873 that the final adjustments were made and the matter settled. In this case there was dispute as to the amount which the withdrawing society should pay for the delivery of their bread by rail, this being finally adjusted by computing the cost of delivery per 100 dozens to Barrhead and to Vale of Leven, and charging the latter society with the difference. Another peculiar practice of the Federation at this time was that of retaining for the reserve and depreciation funds a proportion of the capital of retiring societies. This was done even when the societies withdrew at the request of the committee and against their own wishes, although in the three or four cases where this occurred the percentage deducted was less than that usually retained. In the case of Vale of Leven Society 7½ per cent. was charged, while Dalziel and Motherwell societies were only charged 5 per cent.

By the end of the third quarter in 1872 a further extension had become necessary in order that more storage room might be had, and it was decided that the only way to get the necessary space was to build another storey to the present flour store. The great difficulty was lack of the necessary money, but it was thought that if the extension became imperative a bond might be obtained to cover the cost. A short time later a letter was received from the Anderston Society, in which a protest was entered against any further extensions being made in the bakery meantime. At this time the Society was in somewhat grave difficulties for want of money, as, in addition to other debts which were owing, their account with the Wholesale Society amounted to £4,000, equivalent to nine weeks turnover. Inside the next fortnight, however, the manager was able to report that he had paid £1,000 to the Wholesale Society.

At this time the committee had under discussion the method of supplying flour to the Society. It was alleged by some members of the committee that the manager had not a free in ordering flour, as “another party” had taken it upon himself to send in flour without the knowledge of the manager. Mr Sturrock stated that he was aware of all contracts entered into, but that on a recent occasion he had to cancel an order because he found after his order had been given that flour was being sent to the bakery without his knowledge. At the following meeting this question was again taken up, and it appears from what transpired at that meeting that Mr Borrowman was the “other party” referred to above. That gentleman explained that the contracts were made through the Wholesale Society, and no irregularity could occur if the manager sent his orders to the Wholesale Society instead of sending them to the millers, as he had been in the habit of doing. In the course of the conversation the chairman pointed out that although, because of the fluctuations in the price of flour which were taking place, they had for some time delegated their power to make contracts to the manager and Mr Borrowman jointly—not separately as some people had supposed—they still retained in their own hands such powers, to be used as soon as they might think it right so to do.

Early in the third quarter of this year Mr Smith (St Rollox) was appointed assistant secretary, as Mr Borrowman was sometimes unable to attend. At the quarterly meeting, which was held on 1st March 1873, Mr Smith was appointed secretary, and Mr Borrowman retired from the committee, after having taken a large share in the conduct of its affairs from the inception of the Society. At the December quarterly meeting the manager resigned, as already stated in the beginning of this chapter, and Mr Robert Craig was appointed. The fourth year was not to end without more trouble however. A special meeting was called on 28th December 1872, at the request of Barrhead and Thornliebank societies, and Mr Ferguson (Barrhead), who had been one of the first directors of the Federation, placed his society’s case before the meeting. He stated that his society was of opinion that the Baking Society was in an unsatisfactory state, and on behalf of Barrhead and Thornliebank societies placed eight propositions before the meeting with the object of putting the Federation on a more stable basis.

PROPOSALS FOR BETTER WORKING.

The first proposition was that a manager be employed; but this was defeated by an amendment that the management be left in the hands of the committee. The second proposal was that the foreman baker should be the party who should judge the quality of the flour before purchasing, the quantity to be decided by the committee, and it was accepted, as was the third—that no person be a member of committee who has anything to do with the making or selling of flour to the bakery (but not to the exclusion of operatives) so that the committee be left perfectly untrammelled in their actions.

Another proposition was to the effect that the members of the Baking Society’s committee should be elected for that committee only, and not be simply delegates from the committee of their society; but as this affected one of the rules of the Society it was not discussed. It was also proposed that the committee should watch the purchases of societies with a view to dealing with those who were not purchasing enough to earn their fair share of profit, and considering whether they should be allowed to continue as members of the Society. The committee pointed out that they were already doing this, and the meeting agreed to the proposal. Another proposal was to the effect that when the additional shares had been called up the committee should purchase flour where it could be had best. This proposal sounds as if there was some suspicion in the minds of the proposers that the Society was being hampered in obtaining the best flour for its purpose by lack of money, and as the delegates gave a general acquiescence to the proposal it would seem that the suspicion was fairly general. It certainly could be said for the proposal that it gave the committee full power to do the best they could for their Society.

Just before the end of the fourth year Motherwell and Dalziel societies dropped out of the Federation at the request of the committee, as although both societies were loyal purchasers, the cost of delivery was so great that the Society was losing money on their trade. The Federation still consisted of fifteen societies, however—viz., Anderston, Barrhead, Busby, Cathcart, Johnstone, Lennoxtown, Cadder, Parkhead, Elderslie, Howwood, Eastern, Paisley Provident, Thornliebank, St Rollox, and Avonbank—and other societies were being supplied with bread. About this time, also, a new departure was made. The committee had found that their biscuit trade was not a profitable one, and the cashier was instructed to make inquiries as to the terms on which some of the Glasgow biscuit manufacturing firms would supply them with biscuits. It was finally arranged that Gray, Dunn & Co. supply them with biscuits through the Wholesale Society, and this arrangement continued for some time until a fire at the biscuit factory put an end to the connection, when the trade went to Herberts Ltd.

During the fourth year the Society had made considerable progress, and the trade for the year showed a substantial increase, but it had not been very profitable. Indeed in the fourth quarter, after provision had been made for interest and depreciation, there was nothing left to divide, while nothing had been added to the reserve fund during the year. The aggregate output for the year was 7,955 sacks, equal to an average of 153 sacks a week, which was an average increase of 31 sacks per week over the turnover of the previous year. The Society was still much hampered in its operations from lack of capital; the total share and loan capital being only £1,618. During the latter half of the year the price of flour had been very high, reaching in the later months of the year 45/6 per sack for the average quality used.

Yet, although there were still many anxious days ahead for the committee and not a few lean years, with the close of the fourth year the Society had been established on a firm foundation. Henceforth there were not the same defects of management to contend with, and what difficulties did arise were due to weakness in the societies which were customers of the Bakery rather than to causes operating within the Federation itself. In a later chapter mention will be made of some of the difficulties which arose owing to the weakness of some of the societies which were members of the Federation.

CHAPTER V.
THE BRANCH CONTROVERSY.

A LENGTHY CONTROVERSY—TO BRANCH OR NOT TO BRANCH?—AN OPTIMISTIC REPORT—LACK OF CAPITAL—STRONG OPPOSITION—BARRHEAD THREATENS WITHDRAWAL—THE QUESTION REOPENED—BARRHEAD DECIDES TO WITHDRAW—SHELVED AGAIN—DISSATISFACTION IN PAISLEY AND JOHNSTONE—BRANCH OPENED IN GLASGOW—THE FINAL DECISION—BARRHEAD, PAISLEY PROVIDENT, AND JOHNSTONE WITHDRAW.

In the preceding chapter we noted that a proposal was made at one of the general meetings of the Society that branch bakeries should be established. It was a proposal which occasioned a great deal of discussion and was the cause of several heated debates during the next few years, and it is therefore important enough to merit a chapter to itself. The idea was first mooted at the quarterly meeting held in December 1871, when Johnstone Society delegates in the course of a general discussion brought forward the suggestion “that the Baking Society should think of the possibility of opening branch establishments as their business extends.” The idea was favourably entertained then; but it was obviously impossible to do anything at the time, and it was not until the quarterly meeting which was held on 30th November 1872, exactly a year later, that anything further was heard of the subject.

At that meeting a general discussion took place “as to the desirability of opening a branch bakery in Paisley or Johnstone.” The matter ultimately dropped for the time being, but it was left with the committees of Johnstone, Paisley Provident, and Paisley Equitable societies “to make inquiries in their respective localities as to a suitable place for the business, which could be rented, leased, or bought, the probable cost, and all other information that may be necessary, and forward the information obtained at as early a date as possible to the committee.” The Johnstone committee were especially enthusiastic about the proposal, and before next quarterly meeting a report was in the hands of the committee. This report was read to the delegates at the next general meeting of the Society, and a general conversation took place in the course of which the opinion was expressed that however desirable it might be that the Society should branch out in the manner indicated, it was inexpedient that it should be done then in view of the state of the Society’s affairs. The committee of Johnstone Society were, therefore, thanked for the trouble they had taken over the business and for the report which they had prepared. It was also agreed that this report be printed and circulated amongst the members of the Federation, and that the subject be brought up at next quarterly meeting.

JOHNSTONE SOCIETY’S REPORT.

The report of the Johnstone Society is so interesting and throws so much light on the affairs of the Federation that it is worthy of being printed in full, as issued in circular form by the Bakery committee.

To the Committee of Management and Delegates representing the United Co-operative Baking Society Limited, Glasgow.

Gentlemen,—Having been appointed at your quarterly meeting, held 30th November 1872, to report on the results which would be likely to flow from your Society having a branch bakery in Johnstone, we respectfully beg to offer the following for your consideration.

The advantages which the promoters of your Society saw in having a “united management, a concentration of labour, and a combined purchasing power,” is nearly, if not altogether, neutralised by the high cost of your productive and distributive departments; ten shillings a sack is, we believe, something unknown in Scotland as the cost of baking and distributing common loaf bread, and in your establishment it cannot be set down even at this high rate, as your auditors at last quarterly meeting warned us that the depreciation of your fixed stock was not commensurate to its “tear and wear,” and we believe investigation during the quarter now ended has brought out that your liabilities in direct debts were greater than was accounted for in your balance of October last.

This being the case, it is a duty incumbent on all to examine into and see if anything can be done to remove the obstruction to progress and place the Federation on a sound and stable basis, beneficial alike to individual and to the union of societies.

To do this reforms of more or less consequence may require to be introduced, but the one on which we are commissioned to report, and which appears to us as the most urgent, and the most likely in being effectual in removing the evils complained of, is the setting down of a branch in Johnstone, or some other place, where a great amount of distributive expense could be saved at a small outlay.

The cheapness of carriage of flour in the bulk and its dearness when manufactured into bread, which is at once bulky, fragile, and heavy, suggests readily the idea that it would be well to have branches set down in localities where there is a consumpt of bread large enough to work them successfully; we consider Johnstone a place of this class, and desire to lay before you, in detail, some of the reasons why we think so.

In making Johnstone a district with a branch bakery we would class the following societies together, viz.:—Paisley Provident, Paisley Equitable, Howwood, Elderslie, Kilbarchan, Linwood, and Johnstone. Taking October balance as an average of the bread taken by these different societies, we find in the aggregate that the six societies first named took bread to the value of £892, 10s. 6d., and that Johnstone Society took bread to the amount of £884, 12s. 9d., a total of £1,777, 3s. 3d., or within £100 of being a third of all the purchases made at the Bakery during the quarter. The Johnstone Society’s quantity, £884 a quarter, averages something like sixty-four dozen loaves daily, the outcome of four sacks of flour; say, then, with the other societies named, eight sacks of daily consumpt. The weight of this number of sacks, in the bulk, is one ton (twenty cwt.), and the price of carriage and delivery in Johnstone, from Glasgow, is four shillings. These eight sacks, made into bread in Glasgow, gives a weight, including boards, of over thirty-four cwt.; this is exclusive of vans, which, we believe, are about half as much more, or seventeen cwt. each. In this condition, then, of baked bread it costs your Society thirty shillings or over daily to deliver to the various societies of the named district. Supposing, then, that you had a branch in Johnstone and a more restricted delivery system adopted, we entertain no doubt but one horse and van could overtake the whole three mile radius, give and deliver the required bread to the different societies. The cost of this would be about twelve shillings a day, which would leave a clear profit to the Society of fourteen shillings a day, or £54, 12s. a quarter, nearly £220 a year.

Another View of the Case.

We have had an interview with a practical managing baker, and his estimate of the cost of production is much below your present expense; he considers that the quantity required (eight or nine sacks a day) could be baked into loaves at a cost of three shillings per sack (he laid stress on the fact that the job was loaf baking alone, and said that men were able and really did do more of this kind of work). Buying the flour at the then price of fifty shillings per sack, and adding three shillings for baking, rent, etc., we have a gross cost of fifty-three shillings per sack. The outcome from this quantity of flour should be sixteen dozen small loaves; retailing them at the then price of 4¼d. each, you have the sum of sixty-eight shillings; 10 per cent. less would be sixty-one shillings and twopence, or a profit of eight shillings and twopence on each sack baked and sold; this eight times (a daily output) would give sixty-five shillings and fourpence per day, or £19, 12s. a week, £254, 16s. a quarter. But allowing half this quantity has to be delivered to societies, and say this will cost three shillings per sack, which would give a total cost of about £48, 15s., which sum deducted from the £254, 16s. would still leave the sum of £206 a quarter of a clear profit realised from the business done by the seven societies comprising the proposed district.

Regarding the practical part of the scheme we have nothing to offer in way of a ready-made bakehouse or other suitable premises, and we are afraid that should the business be gone into, as proposed, new premises would require to be got; on this, however, we ask your consideration to the fact that your present premises have not the necessary storage for flour which your large turnover requires. This is attested by the proposal which was made six months ago for alterations, and if it is true, as we believe it is, that properly stored flour is from one to two shillings a bag better in outcome than when used as has hitherto been done at the Bakery, one shilling on each sack baked for a quarter, say 1,800 sacks, and you have a sum of £90.

The alterations which were proposed and were estimated to cost about £200 have never been carried into effect, consequently the Bakery labours under the disadvantage of want of storage at a loss equal to something like £90 a quarter.

We know full well the high cost of distribution, and some are sanguine the productive cost could also be lessened; could not this sum, then, of £200, or say £300, required for storage purposes be laid out on a branch bakery in the Johnstone district, and take away a third of the trade from the centre; you would then have storage to suit your requirements for some time to come, very probably you would be less for productive expenses, and most certainly your cost of distribution would be so much curtailed as to release the Federation from the incubus which at present keeps her down.

Gentlemen, our aim and earnest desire is the prosperity of the Federation and its component parts; we lay these considerations before you and leave the matter in your hands, being confident your united wisdom will be well able to direct the path which will earliest and best lead to better and happier times for the United Co-operative Baking Society.

The Johnstone Society’s Committee.

Johnstone, 21st February 1873.

At that time it would seem that the representatives of all the societies were enamoured with the idea of branching out, especially in view of the very rosy picture which had been presented in the Johnstone Society’s report, but they realised that at the moment branching out was impossible. The Federation’s commitments in capital expenditure were already as much as could be borne; the cost of building a new bakery would add considerably to the burden, and neither delegates nor directors could see how it could be carried; so, when the subject was brought up again at the June quarterly meeting, it was left in the hands of the committee, with the proviso that no extension take place until a general meeting of the members had been called.

The proposal, however, had never been one which was pleasing to Barrhead Society. Immediately after the remit to Johnstone Society and the Paisley societies to collect information, a deputation from Barrhead had waited on the Bakery committee, and, after pointing out that the capital of the Society was far from being what it ought to be, they said they had been instructed by their committee to state that they considered it inexpedient in the meantime to proceed with the proposed branch at either Paisley or Johnstone because of the plant and other necessaries which would be required and which the funds of the Federation were not in a position to meet. It was owing to the determined opposition of the Barrhead and Thornliebank delegates and the strength of their argument that the capital of the Society was insufficient for the enterprise, that the Johnstone scheme was held over.

Nothing further was heard of the proposal until the beginning of 1876. By that time the trade of the Federation was taxing the productive capacity of the bakery to its utmost limits, and on the 29th of April a special meeting of delegates was convened for the purpose of considering the situation, and especially a recommendation by the committee that a small bakery which was to let in Paisley Road should be taken for a period of three years. A lengthy discussion took place. Mr Inglis, Paisley Provident Society, moved “that the committee be empowered to open a branch bakery, either in Paisley or Johnstone, and to lease temporary premises in the locality chosen until the new bakery was ready.” At once Mr Tolmie, of Avonbank, brought forward an amendment “that the committee be empowered to take such action at once as will appear to them to be for the best interests of the Federation.” Mr Paton, Paisley Provident Society, seconded Mr Inglis’s motion, and Mr Johnstone, Barrhead, the amendment of Mr Tolmie; but the motion that a branch be opened in the West was carried by 42 votes to 39 for the amendment. While the amendment did not prohibit in so many words the suggestion contained in the motion, it was believed that it would have that effect, because, although on this question of branching out the committee as a body had always held a neutral position, it was believed that they were not very favourable to the proposal of the Paisley and Johnstone societies.

BARRHEAD OPPOSITION.

It might appear that the question was now settled finally, but that was far from being the case. The Barrhead Society had always been opposed to the suggestion that a branch should be established at either Paisley or Johnstone, and it was suspected that the adoption of this proposal would lead to their withdrawal from the Federation. Whatever influence the decision may have had on the final step taken by Barrhead Society, however, other influences were at work there in favour of the society commencing to bake bread for themselves. At a meeting of the committee of that society, held on 6th March 1876, the propriety of the society erecting a bakery of their own was discussed on the motion of a Mr M‘Quarrie. The committee were not favourable to the idea, but at the monthly meeting, which was held four days later, a more extended discussion took place, and, although no formal motion was made at the time, the minutes of the society record that “the members seemed to be rather in favour of starting a bakery.” At the next monthly meeting, also, held in the beginning of April, the quality of the bread which they were receiving from the Federation was discussed, and a suggestion was made that the society intimate to the Baking Society that it was their intention to erect a bakery of their own. It is apparent, therefore, that the idea of entering into the baking industry for themselves was being considered by the Barrhead people before any definite decision had been come to by the U.C.B.S. on the question of placing a branch in the West. That decision brought the question to a crisis in Barrhead, however, and at the quarterly meeting of the society, which was held on 9th May 1876, the following motion was adopted by the meeting:—

“With a view to mend past and present complaints of the bread received from the wholesale bakery, and of preventing the committee from carrying out the motion passed by the delegates at their last general meeting to plant a branch bakery in Paisley, involving us in more debt, resolved that it is the opinion of this meeting that we withdraw from the Bakery and start a bakery on our own account.”

On 22nd May a committee was appointed by the committee of Barrhead Society to look out for premises which would be suitable for a bakery. This did not settle the question even yet, however. At the meeting of the Baking Society committee, which took place on 17th June, a deputation from Barrhead came to make suggestions, particularly about the delivery of bread in the latter part of the week. From the U.C.B.S. minute we can gather, reading between the lines, that the discussion had been warm. The committee’s account of what took place states that they had “no difficulty in overtaking orders in the beginning of the week, but it was somewhat difficult to overtake them at the latter end; but the committee refused to say that they could not supply the full complement to Barrhead on the Saturday; and that Barrhead be left to conduct their business as they thought best.” It would appear, from what is known of what was taking place in Barrhead, that the deputation had mentioned the likelihood of that society withdrawing from the Federation, and the last clause was the committee’s answer to what they may have interpreted as a threat. One good result of the meeting of representatives of the two boards was that the Barrhead people were induced to reconsider their position, for a special meeting of the members was held on 30th June at which the following resolution was adopted:—

“That the question of withdrawal from the U.C.B.S. and of baking for ourselves be adjourned sine die, and that this meeting declares itself of opinion that the bread supplied, while it is pure and wholesome, has not been up to the standard of quality and appearance required by our members; and that we are unanimously opposed to any extension of the United Bakery beyond the premises that it at present occupies; and that a deputation be appointed from this meeting to place these matters before its committee of management, and to urge upon them the adoption of means to improve the quality of the bread, and the necessity of reconsidering the recent resolution to plant a branch bakery in Paisley or Johnstone, in order to preserve the integrity and harmony of the Federation.”

The result of this deputation’s visit was that a special meeting of the U.C.B.S. committee was held on 29th July, when the committee decided “that we, as a committee, take no action towards the increasing of the productive power of the bakery until such time as we hear the opinion of the forthcoming quarterly meeting on the matter.”

Everything seemed to be going smoothly now, but it was only surface tranquillity, for at the same meeting where the Barrhead Society passed the resolution quoted above they also unanimously adopted another “to grant powers to the acting committee of this society (the committee which had been appointed to look out for premises suitable for a bakery) to rent, lease, purchase, or erect premises suitable for carrying on its own trade.” At the September meeting of the Baking Society, Mr Stark, Barrhead, moved “that in order to preserve the integrity and harmony of the Federation we consider it necessary that the resolution passed at special meeting of the Federation, held on 29th April, ‘to plant a branch bakery at Paisley or Johnstone,’ be rescinded by this meeting, and that no permanent extension of the bakery take place beyond the present premises.” Mr Hall, Thornliebank, seconded.

At once Paisley Provident delegates were on the alert, and Messrs Lauchland and Cumming of that society moved as an amendment: “That this meeting adheres to the resolution agreed to at special meeting on 29th April, in reference to the planting of a branch in Paisley or Johnstone.” The discussion was long and animated, but again the glamour of a branch was on the delegates, and the Paisley amendment was agreed to by 41 votes to 30 for Barrhead motion.

BARRHEAD DECIDES TO WITHDRAW.

This decision at once made its influence felt in Barrhead, and at the monthly meeting of that society which took place on 12th September notice was given of a resolution to the effect that “This Society hold a special meeting on 8th November to consider a motion ‘that this Society withdraw and cease to be a member of the U.C.B.S.’” At this special meeting the resolution to withdraw was agreed to by a very large majority, and on 4th December it was agreed that the Bakery committee be informed officially of the decision to withdraw, and that the letter state that the society would continue to purchase bread until their own bakery was ready. It is probable that this letter was a result of what had taken place at the Bakery quarterly meeting on the preceding Saturday, when the chairman had been questioned about the withdrawal of the society, and had stated that nothing official had yet been received from Barrhead Society with reference to their withdrawal. He was also questioned as to whether any steps had been taken with regard to establishing a branch bakery, and stated that no action had been taken regarding the branch. The subject then dropped.

DISSATISFACTION IN PAISLEY AND JOHNSTONE.

It is easy to understand that the Paisley and Johnstone societies were not satisfied with the delays which were taking place in placing a branch somewhere in their neighbourhood. They had succeeded in carrying their point in 1873, but the financial position of the Federation had prevented anything from being done. Then in April of 1876 they had secured a majority of votes—true, it was only a majority of three—in favour of their proposals, and in September this decision had been confirmed by a much larger majority. Yet, in view of the strenuous opposition of Barrhead Society and the repeated threats of withdrawal made by that society, they must have recognised that it would not do to hurry matters, for with almost 600 dozen loaves taken away from the weekly output of the Federation, the premises would be ample; and, in view of that contingency, the committee of the Bakery were justified in pursuing a cautious policy. Notwithstanding the chairman’s disclaimer of any “official” knowledge of Barrhead Society’s intentions, it was generally known throughout the Federation that they had decided to start baking for themselves, and it was doubtless this knowledge which was responsible for the statement by the chairman that “no action had been taken” to establish a branch being allowed to pass as quietly as it did.

A BRANCH IN GLASGOW.

Whatever might be the result of the withdrawal of Barrhead Society, however, if and when it did take place, there was no doubt but that the capacity of the bakery premises were overtaxed at the moment. The committee had been compelled to refuse offers of trade because of inability to supply the societies, and on discovering that a small bakery, situated in Paisley Road adjacent to their central premises, was to let, they came to the decision to appeal to the members for power to rent it for a year while awaiting developments. A circular was drafted and sent out to the societies, in which were explained the committee’s reasons for not proceeding with the branch bakery, and also the reasons why they considered it advisable that the small bakery in Paisley Road should be rented. The contents of this circular fanned the ire of the Paisley and Johnstone societies, whose delegates turned out in great force to the quarterly meeting, held on 3rd March 1877.

The circular was submitted by Mr Slater, secretary of the Federation, and gave rise to a lengthy discussion. It does not seem to have occurred to anyone that the Paisley and Johnstone societies might follow the example of Barrhead and withdraw, and the idea was largely entertained by the delegates that if a branch was established in that locality, it would relieve the congestion in the Central Bakery for a long time to come. Finally, after a very long discussion, Mr Inglis, Paisley Provident, moved “That the circular lie on the table, and that the committee take their instructions as to how they should meet the extra demand from the resolutions agreed to on the matter at previous meetings.” Mr Paton, Paisley Provident, seconded. Mr Steel, Avonbank, moved, and Mr Stark, Barrhead, seconded, “That the committee be empowered to rent premises temporarily in the vicinity of the present bakehouse.” The vote resulted in the amendment of Mr Steel being carried by 39 votes to 34 for the motion of Mr Inglis. The question was not yet settled, however. Immediately the result of the vote was declared, Mr O’May, Paisley Provident, rose and moved: “That this question be again brought up at the quarterly general meeting six months hence.” It should have been apparent to the delegates that this was a blocking motion and might prevent the committee from doing anything, but it was evidently not so regarded, or else the delegates could not make up their minds on the subject, for it was agreed to without comment. The committee did not allow the motion for reopening the question in six months to hinder them from going on with the new branch, for immediately the meeting was over they gave instructions to the sub-committee to secure temporary premises in the vicinity.

THE END OF THE PROPOSAL.

The subject again arose at the 34th quarterly meeting, held on 1st September, when Paisley Provident was again forward with a motion: “That if a branch be required after Barrhead had left the Federation, it be established at Paisley or Johnstone, and that the present branch in Glasgow be not retaken.” To this it was moved by Mr Gardiner, Cathcart, and seconded by Mr M‘Murran, Glasgow Eastern, as an amendment, “That this question lie over for six months.” After a long discussion the Paisley motion was withdrawn, on condition that the amendment limit the period of lying over to three months, and that, meantime, a special committee, constituted from the delegates present and from the committee, be appointed to investigate the matter and report to the next quarterly meeting. This was agreed to, and Messrs M‘Murran, O’May, Aitchison, Brown, and Slater were appointed the special committee. In less than three months’ time the committee sent out their report to the societies. The report contained details of three plans which the sub-committee had considered. The first of these, that of a branch bakery in Paisley, they considered could not be worked except at a slight loss. With regard to the second one, that of a branch at Johnstone, they considered that the loss would be slightly greater; while, with the branch at Johnstone, the trade would be more difficult to work. The third proposal which had been considered was that of increasing the number of ovens in the present premises, and in the report they stated they were not prepared to recommend any one of the schemes in the meantime, but recommended, instead, that the branch in Paisley Road be taken for another year. The reason they gave for this recommendation was that they considered that an inquiry should be made into the advisability of introducing machinery into the bakehouse, as the whole of their premises would be vacant in eighteen months and could be utilised; if the result of the inquiry was satisfactory, steps should then be taken to have it introduced. This report was accepted by the delegates at the quarterly meeting, and so a subject which had been a fruitful source of controversy at the general meetings of the Federation for nearly two years disappeared. It was again raised at a quarterly meeting some years later, when the question of removing altogether from St James Street was being discussed, but was summarily disposed of by the delegates.

BARRHEAD, JOHNSTONE, AND PAISLEY PROVIDENT WITHDRAW.

Meantime the Barrhead bakery was ready for work and baking was commenced in the last week of the year, but the society, although it had withdrawn a large proportion of the loan capital invested with the Baking Society in order to pay for the erection of its own bakery, retained membership of the Federation until requested by the committee to withdraw as the interest on the share capital was an unnecessary burden on the Federation’s funds. The society was allowed to withdraw without any of its capital being retained, being the first of the withdrawing societies to which this privilege was extended. In 1894, after fancy biscuit baking had been firmly established by the Baking Society, Barrhead Society rejoined again, taking up 1,500 shares.

Another withdrawal which occurred in a comparatively short time, and which was doubtless influenced to some extent by the refusal to establish a branch in the West, was that of Johnstone Society. At a meeting of the committee which took place on 15th February 1879, the minutes record a conversation which took place regarding a decision of that society, come to the previous evening, to start baking for themselves. The effect of the information that they were likely to lose Johnstone Society’s custom so soon after having lost that of Barrhead had a damping effect on the spirits of the committee, and it was decided that in the meantime the erection of the new ovens which they had proposed to build be not proceeded with. With the withdrawal of Paisley Provident Society at the end of 1880, consequent on having a bakery of their own ready for occupation, the controversy with respect to the branch, and also its effects on the welfare of the Federation, may be said to have ended.

The Federation had lost three of its best customers, but it had succeeded in keeping its business centralised. It must always remain a matter of argument whether it would have been better to branch out at an earlier date and do for the societies in Renfrewshire that which in later years it has done for Clydebank and the North of Ireland. The question of branches is still one on which there is considerable controversy, and, at any rate, it is certain that the committee, and latterly the delegates, played for safety, and chose to conserve the strength of the Federation at a time when all its strength was needed rather than weaken it by widening the scope of the society’s energies. The majority of the committee, it is quite evident, were opposed to branching out, for had this not been so, they would have gone ahead when two general meetings of the Society gave them the mandate.

It is difficult to see that any great harm was done by the course which was adopted. The growth of the three societies has been so great that each of them is large enough to maintain a bakery of its own, and although the Federation had one or two temporary setbacks, none of them was serious enough to affect its stability or its efficiency. It is possible, therefore, to argue that either decision would have had equally good results. There we may leave what was undoubtedly a stirring controversy while it lasted, the importance of which at the time forms sufficient justification for the space which has been devoted to it.

CHAPTER VI.
ST JAMES STREET: DEVELOPMENTS.

IMPROVED MANAGEMENT—PRIVATE LOANS—IRREGULARITY OF ORDERS AND OTHER DIFFICULTIES—A NEW FOREMAN BAKER—SHORT WEIGHT IN FLOUR—DELIVERY DIFFICULTIES CONTINUE—UNINFORMED CRITICISM—AN ECHO OF THE IRONWORKS FAILURE—NEW MEMBERS—AMENDING THE RULES—EXTENSIONS—MANAGER RESIGNS: SECRETARY APPOINTED—OAKMILL SOCIETY—APPEAL FOR FUNDS—TRADE AND FINANCIAL POSITION IMPROVING—ANDERSTON SOCIETY’S FAILURE—GOOD NEWS—MACHINERY INSTALLED—BECOMING RICH—TEN YEARS’ WORK.

In tracing the development of the agitation for and against the establishment of a branch bakery we have been running ahead of the calendar. A new cashier, who was virtually manager of the business, had been appointed in the last days of 1872, and during the next two and a half years he carried on the business with as much success as the conditions under which he was compelled to work permitted. In these two and a half years he inaugurated a system of private loans to the Federation for the purpose of increasing the working capital of the Society; the smallness of the capital having been until then the greatest difficulty under which the Federation laboured; and so successful was this venture that by April 1875 the Society was in a position to deposit £500 on loan with the S.C.W.S., while six months earlier he was in a position to recommend to the committee that the acceptance of private loans except from those who had already deposits with the Society, and from the employees, be discontinued; a recommendation which was put in force by the committee a month later.

In other ways, too, Mr Craig brought prosperity to the Federation. He found it in a position of peril. For a long time after his appointment he found himself in the position, meeting after meeting, of having to present to the committee accounts which had been incurred by his predecessor without being able to check them in any way. One of these, presented in 1874, had been incurred from 1870 to 1872, and the explanation offered by the contractor was that he thought the U.C.B.S. and the S.C.W.S. were all the same, and had kept the invoice back until the building was finished. Mr Craig was given the job of arranging on the best terms possible. For several years the difficulty already alluded to, that societies did not pay their accounts promptly, continued. This was particularly the case with two of the societies which were in very low water about this time, one of them eventually succumbing. There was also continuous difficulty about the maintenance of sales. Sometimes a society would take bread for a number of weeks or months, and then cease all at once without any reason being given. At other times there would be a series of complaints about the quality of the bread and the reluctance of members to purchase, and investigation showed that these complaints emanated from the shopman and had very little foundation in fact. In some cases the shopman was the society, the committee seeming to exercise little or no supervision; while in other cases there was, of course, genuine cause for complaint owing to bad or irregular deliveries or to barm going wrong with the baker. Such causes were not sufficient to account for the constant stream of complaints which were launched at the heads of the committee, however, and doubtless close investigation would have shown that many of them had their origin in a desire on the part of salesmen to do business with firms which made it worth their while. With the appointment of Mr Lang as foreman baker there was certainly a decrease in the number of complaints, and the sales improved.

A discussion which took place at a committee meeting in June 1873 showed that there was not only a dispute with Barrhead Society, a deputation having been sent to that society’s meeting and been refused admission to the meeting, but also that the Baking Society’s committee had not yet been placed on a satisfactory basis. The chairman stated at the committee meeting that his committee had only heard of the Barrhead meeting casually, and expressed the opinion that it was the duty of the member of the board from Barrhead Society to have informed the Bakery board of the fact that it was being held. On the other hand the Barrhead delegate said that he had forgotten all about it, and that in any case he had no authority from Barrhead committee to say anything on the matter. It would appear that a long discussion took place on the subject, and especially on the position of members of the Baking Society’s committee in relation to the work of that society, the opinion being freely expressed that to members of the board of the Baking Society the affairs of the Baking Society should be the first consideration. The subject was ultimately dropped, on the understanding that it was the duty of any member of the Baking Society’s committee to inform that board forthwith of anything which affected the interests of the Society.

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:—

“While we accept Mr Craig’s resignation as manager, we desire to record our heartfelt sympathy with him in his circumstances and the high esteem in which he is held by all the members of this committee as an honest and upright individual, an intelligent and energetic man of business, and a faithful servant who, for the past two and a half years, has conducted the business to the great pecuniary advantage of all the members connected with it. While we regret the loss of such a valuable servant, we hope that he may secure in the country to which he is emigrating a restoration of health and strength, together with a due amount of worldly prosperity.”

Alas, it was not to be. No improvement took place in Mr Craig’s health from his residence abroad, and in a short time he was back in Glasgow again, his death taking place in the summer of 1877.

At the August quarterly meeting of the Society a grant of £20 was made to a testimonial which was being got up for Mr Craig, and the secretary was instructed to record in the minute of the proceedings that the grant was made

“In recognition of his sterling worth as a man and the able business abilities he showed by the successful manner in which he conducted the affairs of this Society during the period he held the office of manager to the Society.”

Mr David Smith, who had been acting as secretary since Mr Borrowman had resigned from that office, was appointed manager, and Mr Thomas Slater, London Road Society, was elected secretary.

A BAD INVESTMENT.

In the middle of September there came an appeal from the Oakmill Society that the Baking Society should invest in its funds. The matter was delayed for one reason or another, but finally, at the quarterly meeting which was held in March 1876, it was agreed to invest £200. At this time the financial position was improving every week. The profits on working were well over £30 per week, and the committee were not so chary of spending money as they had been in earlier years. Among other donations to which the Society agreed was one of £20 towards the expenses of the Co-operative Congress which was to be held in Glasgow in 1876. Several of the societies which were affiliated with the Baking Society were in a bad way at this time. Blairdardie Society had had their premises destroyed by fire, and a deputation was received by the Bakery directors. The deputation explained that the purpose of their visit was to get some consideration shown to them by giving them their regular supply of bread until they were able to complete their arrangements. The committee agreed that Blairdardie should receive their usual supply of bread for a month, at the end of which period the question would be further considered. Anderston Society also had fallen on evil days. For some time the Bakery committee had had considerable difficulty in securing prompt payment by that society for bread supplied to it, and early in 1876 they reduced by half the number of shares they held in the Bakery, as their membership was declining. They struggled on until the middle of 1878, but after taking stock in July of that year they gave up in despair and closed the shop. At the time when they closed down they were owing the Baking Society some money, and Mr Smith transferred that amount from their share account to their goods account. The chairman had, however, some doubt as to the legality of this action, and it was afterwards decided that should any of the other creditors object the Society would not take any action to uphold their claim. The debts of the Anderston Society were taken up by the Wholesale Society, however, and after a considerable amount of correspondence between the committees of the two Federations the balance of the share capital of Anderston Society was transferred by the Bakery committee to the Wholesale Society, the latter Federation agreeing to relieve the Baking Society from any responsibility they might incur by so doing.

At the beginning of the year 1878, Barrhead Society ceased to purchase bread from the Baking Society. This meant a reduction in turnover of nearly 600 dozens of bread every week, and for the time being put an end to all thoughts of branching out. Other societies, too, were going the way of Anderston, and about this time the most remarkable point in the minutes of the Baking Society is their record of the names of societies which have long ceased to have any separate existence. Maryhill, Petershill, Bloomvale, Anderston, and Southern all lived a more or less precarious existence during the first decade of the Federation’s existence, and all disappeared. One result of the failure of Anderston Society was an alteration in the rules of the Baking Society for the purpose of giving a lien on the shares of a debtor member. It was also decided about this time that societies which had ceased to be purchasers be removed from membership, and have their shares paid out to them. It was at the quarterly meeting held in December 1876 that the first mention is made of a practice which has since that time gladdened the hearts of many hundreds of weary delegates. At that meeting, Mr Neil, Kilbarchan, moved, and Mr M‘Duff, Linwood, seconded a motion: “That at our quarterly meetings in future the delegates be supplied with tea.” The motion was agreed to unanimously. The tenants of the bolt and rivet works in property owned by the Society wished for an extension of their lease or, alternatively, to be allowed to break their lease and remove, and the Society agreed to allow them to remove provided the removal was carried out in three months. At the end of May 1877 the Society’s stable in St James Street was destroyed by fire and six horses were killed; at the same time some doubts were being entertained as to the stability of the bakery itself, as it was feared that the back wall was too weak for the load of flour it had to bear. Then the members of the committee were again being worried with complaints about the quality of the bread, and especially of the fine bread. When they came to compare their bread with that manufactured by competing bakers, however, they usually were of the opinion that the bread they were baking was as good as any.

PAST PRESIDENTS
1. GABRIEL THOMSON. 2. WM. BARCLAY.
3. DONALD CAMERON. 4. ANDREW BROWN.

PAST PRESIDENTS
1. ALEXANDER FRASER. 2. JOHN FERGUSON.
3. DUNCAN M‘CULLOCH. 4. DANIEL H. GERRARD. J.P.

GOOD NEWS.

At one of the meetings of the committee, held towards the end of 1877, an interesting report was given by the Johnstone representative, which was not without its humorous side. Nearly a year earlier the Bakery committee had installed machinery for biscuit baking, and had been building up a good trade. Nevertheless, the Johnstone committee had thought it necessary to inquire into complaints which were being made by their members. The biscuits manufactured by the Baking Society were sold in paper bags which contained 28 for 1/, and the members complained that other grocers gave 30 biscuits for 1/. The committee of Johnstone Society had carried out their investigation in a practical manner. They had purchased a bag of each of the other makers’ biscuits and had weighed them. The result showed that the U.C.B.S. 28 biscuits were heavier by 5½ oz. than were the 30 biscuits of one maker, and were as heavy as 34 biscuits of another maker, while in each case the Society’s biscuits were pronounced to be the better in quality. It is easy to imagine how heartening to a committee who were continuously being pestered with complaints about the quality of their wares such a report would be, and the chuckles with which the humorists amongst them would agree that it should be engrossed in the minutes “for the information of the delegates attending the quarterly meeting, so that they may be in a position to lay the matter before their respective committees; which may result in a considerable extension of this branch of trade.”

MACHINERY INSTALLED.

For some months the committee had been discussing tentatively the installation of baking machinery, but without coming to any definite decision on the matter. In the beginning of 1878, however, they began to inquire into the subject in earnest, and appointed a committee to get all necessary particulars as to cost, effect on working expenses, and effect on the quality and appearance of the bread, of such machinery. After this committee had reported, the subject was discussed by the general committee and then remitted to the quarterly meeting. There the delegates ordered the report to be printed in circular form and sent out to the societies, so that the delegates might come to the next quarterly meeting with instructions. At the next meeting a motion that machinery be installed in the bakery was agreed to by a small majority. The amendment, “that it be not installed,” seems to have been the last protest from those societies who wished a branch to be established at Paisley or Johnstone, but with the installation of machinery their last hope of achieving their purpose disappeared.

GETTING RICH.

When the Society purchased the property in St James Street they were very poor and had to take a bond on the property, and when, a year or two later, the adjacent property in Park Street was purchased, the amount of the bond was increased, the total being £830. Now, in 1878, the committee found themselves in a position to pay out the bondholders, and accordingly this was done. The views of the committee on the subject of “bonds,” as reported in the minutes, are interesting and worthy of quotation. They state:

“The uplifting of the bonds has entailed a considerable expense to this Society. The amount was advanced by four separate parties, who had each to be secured by a separate bond. We should draw a lesson from this which might be beneficial to us in the future, to make us beware that this or any of our respective local societies never have a ‘bond’ on any property where it is possible to get co-operative money.”

At this point it may be interesting to note the apparent effect which the withdrawal of the trade of Barrhead Society had on the Bakery. For the ninth year the average turnover of the Society was 223 sacks per week, while in the tenth year this fell to an average of 188. The position is more fully illustrated by taking the totals for the two years; that for the ninth year being 11,588 sacks, while that for the tenth year had fallen to 9,774 sacks. About this time the members were beginning to be uneasy about the Oakmill Society, in which they had invested £200, and at one quarterly meeting a delegate wished to know whether the committee considered the shares of this society a safe investment. The meeting was assured by Messrs Barclay and M‘Nair, who were both members of the Oakmill Society, that they considered the investment quite a safe one. At the quarterly meeting in March 1879 question was again raised, when Mr Alexander, the treasurer of the Baking Society, gave it as his opinion that “the loan capital in Oakmill Society was as safe as ever it was.”

FURTHER EXTENSIONS PROPOSED.

Meantime negotiations had been going on as the result of which the tenants in the bolt and rivet shop agreed to remove, and their boiler, engine, and shafting were purchased by the Society for use in driving the machinery which was being installed in the bakery. A new roof was also being put on the bakery, and the question of erecting two new ovens in the premises vacated by their tenant was being considered, when the news came that Johnstone Society had decided to start baking on their own account. This put an end for the time being to any thought of erecting new ovens, as the withdrawal of this society would again reduce the trade to below the capacity of the ovens already erected, but, notwithstanding that fact, it was decided that the whole question should be submitted to the quarterly meeting for its decision. The 40th quarterly meeting was held on 1st March 1879. The society had now been in existence for ten years, and although the outlook at the moment was not very bright, yet worse times had already been met and overcome. Doubtless, the members of committee were looking forward to the time when other societies at a distance from the centre would begin baking on their own account, but they knew also that the membership of the societies in the immediate vicinity of the Bakery was increasing, and hoped to recoup themselves in this way. At the quarterly meeting a general discussion on the question of building new ovens, in view of the fact that Johnstone Society was withdrawing, took place, but no decision was come to.

THE RESULTS OF TEN YEARS’ WORK.

In considering the trade for the ten years during which the Society had been established, it is to be noted that that for the ninth year was the greatest, 11,588 sacks having been turned into bread and biscuits in that year. The tenth year was the first in which there was a fall in the turnover, each of the first nine years showing a steady increase over that immediately preceding, and the reason for the drop in the tenth year was so obvious and so insurmountable that no uneasiness arose in consequence. From the second quarter in the seventh year the dividend each quarter was almost uniformly a shilling or over, and by the end of the tenth year no less than £8,051 had been allocated in dividend, as well as £75 as dividend to non-members; while £1,548 had been paid as interest on share and loan capital. Thus in the first ten years, those associated with the Bakery had received nearly £10,000, which they certainly would not have received had the Baking Federation not been started. In addition, they had a valuable property represented by shares and loans amounting to £5,706, while private loan-holders had also £544 invested. At the same time, in addition to the employees being paid wages equal to those paid elsewhere in the trade, £766 had been divided amongst them in the form of bonus. The directors were also extremely liberal in their depreciations, for during the ten years £4,270 had been written off property, stocks, machinery, fittings, and live stock. This made for the stability of the Society. In view of the fact that the capital was small and the capital outlay comparatively large, the financial policy adopted of devoting large sums to depreciation instead of paying them away in dividends was a sound one, and enabled the committee to undertake with a light heart extensions which would otherwise have caused them considerable anxiety. They had established on a sound financial basis a structure which was to prove of lasting benefit to the co-operative movement, and which was to bear no uncertain testimony in future years to the ability of the builders and to the soundness of the principles on which they were carrying on their business.

CHAPTER VII.
ST JAMES STREET: CONGESTION.

A FALL IN MEMBERSHIP—RELATIONS WITH EMPLOYEES—CANVASSING FOR TRADE—GOOD BREAD—GROUND ANNUAL PURCHASED—DIFFERENTIAL TREATMENT—PRESIDENT AND TREASURER RETIRE—KEEPING DOWN PRICES—OAKMILL FAILURE—A PECULIAR COMPLAINT FROM KINNING PARK—FURTHER EXTENSIONS—COSTLY LITIGATION—TRANSFERABLE CAPITAL—STILL FURTHER EXTENSIONS.

In the preceding chapter the decline in the turnover of the Federation, and the circumstances to which that decline was due, have been detailed. During the latter half of the tenth year three societies had withdrawn or been paid out, and the membership of the Federation, which had consisted of twenty-six societies at the beginning of the year, consisted of only twenty-three at the end. For three years no new societies had joined, and the increase which had taken place in the trade was due entirely to increased membership of the societies which were members of the Federation, and to a growing demand on the part of the members for co-operatively produced bread. Two of the societies whose names had been struck off the roll had been little more than nominal members for years, and their loss scarcely affected the trade at all, while, by the beginning of the eleventh year, the substantial decrease which had resulted from the withdrawal of Barrhead Society showed signs of being completely overcome. The turnover, which had averaged 185 sacks per week in the last two quarters of 1878, as compared with 226 in the third quarter of 1877, rose in the first quarter of 1879 to 207 sacks, and by the end of that year was up to 216¾ sacks. The prospects for the immediate future were not too bright, however, as Johnstone Society, in reply to a letter which had been sent by the Bakery board, stated that they had definitely decided to begin baking for themselves. On 21st February 1880 the committee had before them the formal notice from the society of their withdrawal from the Federation, which was accepted. At the same meeting Mr Green, who had been the representative of Johnstone Society on the committee for eight years, was thanked by the committee for the great interest he had taken in, and the valuable services he had rendered to, the Baking Society. Mr Small, Johnstone, who had been one of the auditors since the beginning of 1876, had resigned six months earlier, in view of the fact that his society proposed withdrawing from the Federation.

Notwithstanding the fact that the withdrawal of Johnstone Society was imminent, and that the quarterly meeting of delegates had given no decision on the subject when it was before them at the fortieth quarterly meeting, the committee, by a majority of 9 votes to 2, decided at their next meeting to proceed with the erection of two ovens additional in the premises just vacated by their tenants. At the same time the work of installing machinery was proceeding, and by the middle of the summer the work was completed, as was also that of reslating the bakery roof. The whole of this work was earned out at a cost of almost a thousand pounds, and placed the Federation in a position to handle a considerably larger trade than they were doing at the moment.

RELATIONS WITH EMPLOYEES.

At the same time they were considering the wages of their bakers and vanmen. These workers had always been paid the wages current in the trade, and now it was reported to the committee that the wages of bakers in the city had been reduced by 2/ per week. The subject was discussed on several occasions, being postponed month after month for lack of precise information, and perhaps, also because they were loth to take the step of reducing wages. Finally, a decision was arrived at. The information was to the effect that nineteen bakers, eight vanmen and stable hands, and four employees in the breadroom and office were receiving a total of £46, 16s. per week. The details of the bakery wages showed that the ordinary bakers were being paid 29/ per week; the ovensmen, 32/; the stockkeeper, 33/; the biscuit baker, 35/; and the under foreman, £2, 2s.; and it was agreed that the wages all round be reduced by 2/ per week. The vanmen who had charge of two-horse vans had their wages reduced from 27/ to 25/; one man who had 24/ had his wage reduced to 23/; and those who were being paid 21/ had no reduction made. Naturally, this reduction did not meet with the approval of the employees, but for three months they do not seem to have taken any action. At the end of that period, however, the committee were memorialised by both bakers and vanmen, and the request made that their wages should be brought up to the former figures. In reply to the vanmen’s request, the committee said that after careful consideration they could see no good reason why they should alter their former decision. The reply to the bakers was couched in somewhat different terms, but it was to the same effect. It was stated that the reduction was entirely due to the state of the labour market in the country. From the reports which had appeared in the public press, it seemed that similar reductions had been made in other baking establishments, and, as the Federation had advanced wages when advances were given elsewhere, when reductions were made they were only following the usual course which regulated wages in the trade. The minute continues: “But to show that we have no wish to take any undue advantage of their position, if they can establish to the satisfaction of this committee that the United Baking Society are paying less than the standard wage current in Glasgow, we as a committee would have much pleasure in reconsidering the whole question at next meeting. Until that is done we adhere to our former agreement.”

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.

KEEPING DOWN PRICES.

There is nothing new under the sun. During the war period it has been common knowledge that the U.C.B.S. was responsible for keeping down the price of bread when the other master bakers desired to raise it. This was not an entirely new role for the Society to play, however. In 1880 it was successful in forcing the bakers of Glasgow to reduce the price of bread within a fortnight after having raised it, because of the Society’s refusal to raise the price also.

THE OAKMILL INVESTMENT.

The members of the committee had been somewhat chary about investing any money in the Oakmill Society, although it was finally decreed by the quarterly general meeting of the Society that this should be done. For some time there had been reports that all was not well with this society, and more than once questions had been asked in the Baking Society’s general meetings on the subject. At length matters were coming to a crisis, however, and a circular was issued to the societies by the S.C.W.S. in which that society wished to be informed how much they were prepared to give to Oakmill Society on loan. The Baking Society’s committee replied that they could do nothing until they had consulted the general meeting of members. The circular had been issued in June, and in August the committee decided to withdraw the amount of interest on their loan to Oakmill Society which had been allowed to accumulate, and now amounted to £47. At this meeting it was also decided that the question of a further loan be not brought before the quarterly meeting. Shortly afterwards the society went into liquidation, and when the final settlement was made the Baking Society found that they had lost £122, 11s. 8d. This sum was liquidated by being paid from the reserve fund.

In 1882 a disaster befell Barrhead Society, their bakery being burned down, and during the time it was being rebuilt they got their bread from the U.C.B.S. This meant an immediate increase of twenty sacks per week in the turnover, which was of importance at the time; but what was of still more importance, it served to lessen the breach which had opened between the Federation and the society and paved the way for the return of the society to the fold at a later date.

During the earlier years of the Society’s history the mention of letters in “red ink,” sent as reminders to societies that their indebtedness to the Federation was exceeding reasonable limits, was frequent in the minutes, but in these later years such “red ink” circulars do not seem to have been sent. At anyrate, mention of them no longer appears. This did not mean, unfortunately, that all the societies were now sufficiently alive to the need of paying their debts promptly and that they had the cash at hand wherewith to pay them. The position of some of the societies was still a matter of grave concern to the Baking Society’s committee, and in one or two cases societies went into liquidation. One such society was Allander, which had only joined the Federation in 1881, and which went into liquidation towards the end of 1883. From this society they got one shilling in the pound. Another case was that of Petershill Society, which went into liquidation early in the same year and which had paid its debt to the Baking Society in full.

At one time there was trouble with Kinning Park Society of a peculiar kind. The committee of that society sent a letter to the Baking Society’s committee, in which it was stated that the impression in that society was “That if a situation is wanted in the Bakery, the most effective way to secure it is to denounce Co-operation, and the Kinning Park Society in particular.” The board, in discussing this letter, expressed the opinion that it was a matter with which they had nothing to do. It was no business of theirs where their employees did or did not purchase their goods. This sound business rule is one which is still in operation in all well-regulated societies. At the same time, it must be admitted that when a man is working for a principle as well as for a livelihood, his work is likely to be better done. There are still workers in the movement, however, who, while professing to work for it, treat it worse than they would be allowed to treat a private employer, by denying it the efficient, loyal, and painstaking service which they would be compelled to render for wages alone. No more was heard of Kinning Park complaint. The terms of the letter were probably an exaggeration of whatever grievance there was.

FURTHER EXTENSIONS.

For some years the fluctuations in the trade of the Society had been such that further extensions had been unnecessary, but, by the end of 1882, the congestion had become so great that it was necessary that further baking accommodation should be procured at an early date. This raised a debate as to the respective merits of increasing the oven accommodation at St James Street or putting down a branch bakery at Greenock to supply the societies in that area. The societies in the Greenock and Port-Glasgow area were all members of the Federation, but there were both difficulty and expense entailed in sending the bread from Glasgow, and, especially in winter, when there was fog on the river, there was occasionally irritating delay. The result of the debate was that a committee was appointed to consider the different schemes and report.

When the special committee reported on the various points which had been remitted to them to discuss there was considerable difference of opinion amongst the members of the Bakery board as to which was the best plan to adopt. Finally, on a vote being taken, it was agreed, by a majority, to recommend to the general meeting the erection of a branch bakery in Greenock. When the question came before the delegates at the quarterly meeting, however, the scheme for a branch in Greenock was not adopted, and it was decided to proceed with the erection of two additional ovens at St James Street.

In 1884, however, the trade was again outgrowing the accommodation, and in November of that year the committee decided to rent a bakehouse in Scotland Street in order to relieve the congestion. The membership of the Federation was again up to 26 societies, and the output at the end of 1884 was 281 sacks per week.

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.

1. DANIEL H. GERRARD. J.P.,
President.
2. JAMES BAIN,
Secretary.

AUDITORS
1. WM. H. JACK, F.S.A.A
2. JOHN M. BIGGAR.

During practically the whole of the period which is embraced in this chapter, two gentlemen, still well known, active in the movement and highly respected—Messrs Allan Gray and Robert Macintosh—acted as auditors for the Federation, and during their period of office made several suggestions affecting the financial stability of the Federation, which, when put into operation, helped materially to make it the strong concern financially that it is to-day. In particular, they were the means of getting the depreciation placed on a sounder basis than it had been for some time. Investigations which took place more than once had the result of showing the committee that the rate of depreciation was not enough, as the book value of fixed and live stock and machinery was greater than the valuation showed that it should be. Ultimately, this was put right, and the finances of the Society were established on a firm footing.

CHAPTER VIII.
M‘NEIL STREET.

INCREASING TRADE—THE DIRECTORS’ DILEMMA—M‘NEIL STREET GROUND PURCHASED—THE NEW BAKERY: BUILDING DIFFICULTIES—THE OPENING CEREMONY—AN UP-TO-DATE BAKERY—PROPAGANDA WORK—RECOGNISING LOYAL SERVICE—A STABLE INSPECTOR—FINANCE—AN INVESTMENT—THE PURCHASE OF FLOUR—A SOCIAL MEETING AND ITS OBJECT—A RIGHT OF WAY CASE—THE NEW BAKERY COMPLETED—A NEW VENTURE—THE CHAIRMAN RETIRES—ALL-ROUND INCREASES.

At the end of the preceding chapter we saw that the trade of the Society had become so large that it was forcing the question of a new bakery on the attention of the directors. With the purpose in view of securing the necessary capital, the sub-committee advertised the St James Street premises for sale, but the only offer they received was one to lease the premises. As this was of no use for their purpose at the moment nothing further was done. Circumstances, and the policy of the committee, were responsible for the still more rapid increase of trade. In the beginning of 1885 the price of flour went up with a rush, but as the Federation was in the happy position of having bought a large quantity of flour just before the rise they were able to continue selling their bread at the old price while the other bakers had to raise it, with the result that the trade continued to increase very rapidly. One of the results of this rapid increase in trade was that the Society was once again placed in the position of being compelled to refuse orders because of its inability to execute them. For this reason Blantyre and Burnbank societies, which had made proposals to join the Federation, had to be refused for the time being.

The directors were literally at their wits end. They could not sell their premises. Unless they got new premises they could not hope to provide for the trade which came pouring in in ever-increasing volume, and they did not know what was the best thing to do. To begin with they got a firm of architects, Messrs Bruce & Hay, to prepare a sketch plan for a new bakery on the St James Street site which would contain twenty-four ovens, together with ample accommodation for storing flour, and stables, a breadroom, and a van yard. When the architects came to prepare their plans, however, they found that the space available was not large enough to give all the accommodation desired. The plans, when submitted, showed a bakery with twenty-three ovens, stable accommodation for nineteen horses, van shed, offices, breadroom, and store, and the cost was estimated at £6,200.

The committee decided that before they would proceed further they would consider carefully the progress which had been made by the Society in the ten years which had elapsed since 1875, and this study of the work which had been done showed that the ratio of increase in trade had grown larger in the two years immediately preceding 1885, while the trade which was being done at the moment warranted them in believing that this rate of progress would be maintained. This being so, the conclusion at which they arrived was that, even if they did build at St James Street, only a few years would elapse before the accommodation would be too small. They decided, therefore, to bring their difficulties before the quarterly meeting and leave the decision with them.

PURCHASE OF M‘NEIL STREET GROUND.

Three schemes were laid before the quarterly meeting, including the rebuilding of the St James Street premises, which, however, the directors deprecated. The proposals were discussed at length by the meeting, but no decision was arrived at, the question being remitted back to the committee for further consideration and inquiry. The questions which were remitted for consideration were: The cost of land in or near Glasgow, and the cost of erecting thereon a bakery large enough to meet the wants of all the members; or, alternatively, the cost of land in or near Paisley, and the cost of erecting a branch bakery there large enough to meet the demands for bread from the societies in the West.

There was evidently a desire to reopen the question of a branch in Paisley, which had been closed since the end of 1876, but the delegates to the special meeting which was held on 11th July to hear the report of the committee on the question of whether a new central bakery should be built or whether they should content themselves with a branch in or near Paisley, decided by an overwhelming majority in favour of a central bakery in Glasgow, and remitted to the committee the selection of a site.

The sub-committee went about their business of securing a site expeditiously, with the result that at the meeting which was held on 22nd August they were able to inform the committee of two sites, one in Fauld’s Park, Govan, the price of which was 12/6 per yard; and the other at M‘Neil Street, costing 15/6 per square yard. It was also intimated that the latter site had some buildings on it which might be of use to the Society. The members of the committee visited both sites, and after having inspected them came to the conclusion that the M‘Neil Street one was best suited to their purpose, and empowered the sub-committee to offer £4,000 for it, with power to go to £4,500 if necessary. At the meeting of committee which was held on 19th September it was intimated that the “Nursery Mills,” M‘Neil Street, had been bought for £4,500, that a deposit of £500 had been made, and that the keys had been given up to the Society. The property had been insured for £1,000. The engine and boiler in the building were inspected, and Messrs Bruce & Hay were instructed to prepare plans of a bakery containing twenty-four ovens, a travelling oven for biscuits, and three or four ovens for pastry, as well as van sheds, stabling, etc. On 13th October the committee empowered the officials to pay the full cost of the site and take possession of the title deeds. It was also decided to dispose of the boilers contained in the property, and at a later date, of the engines; the total sum received being £207, 10s.

When the plans for the new bakery were submitted to the committee decided disapproval was expressed, on the ground that the site was not being utilised to the best advantage, that the existing buildings were not being used, although they were worth from £1,200 to £1,300, and that provision was made in the plan for a courtyard out of all proportion to the requirements of the Society. It was decided to ask the architect to prepare other plans, and instructions were given that the buildings at present on the site were not to be interfered with, and that another architect was also to be asked to prepare plans, with the same instructions. At the same time it was agreed to sell the St James Street property for £4,500 if a sale could be effected, and if not that it be rented, the rent to be £300 per annum. For the next week or two the committee met weekly. On plans being submitted for the second time those of Messrs Bruce & Hay were adopted, with some alterations suggested by the committee, and a building committee was appointed to supervise the work of erecting the bakery. Some little difficulty was experienced, however, in getting the plans through the Dean of Guild Court. Objection was taken at the Court to the fact that the stable gangway was not fireproof, and the plans were sent back for alteration. Presumably all was in order at their next presentation, for nothing further appears in the minutes on the subject. An inspector of works was appointed for the job, contracts were fixed up, and the work commenced. The financing of the building scheme was also considered by the committee, and they agreed to appeal to the societies for the necessary money, at the same time recommending, as an inducement to the societies to subscribe, that the interest on the loan capital be increased from 4½ per cent. to 5 per cent. This recommendation was agreed to by the delegates to the quarterly meeting, and the committee were also empowered to reopen the private loan fund if they considered such a course advisable. One result of the decision of the quarterly meeting was that at the committee meeting held a fortnight later it was reported that already £2,080 had been received as loans from three societies—Thornliebank, Glasgow Eastern, and Kinning Park—while 150 additional shares had been allocated. At the same meeting the Secretary intimated an offer from Kilbarchan Court, A.O.F., offering £400 on loan. This kind offer the committee had to decline, however, on the ground that the loan fund was as yet only open to Co-operative societies.

BUILDING DIFFICULTIES.

The building work was proceeding satisfactorily, but the same could not be said of the joiner work. The Dean of Guild Court had been pushing the Society to get the work of barricading the building and laying down a pavement done The joiner had erected the barricade and made the footpath in M‘Neil Street, but refused to do this in Govan Street, stating that he would “go to Court first.” The Society had written to him, informing him that if he did not do the work, for which he had contracted, the Society would have it done and deduct the cost from his account. There was also delay in pushing on the joiner work in connection with the building itself, which was delaying the remainder of the work of building.

The duties of the committee at this time were arduous and engrossing. They had set out with the intention of erecting a bakery which would be second to none in the city, and with this object in view they were not too bigoted to change their minds when any suggestion was brought to their notice which was likely to be an improvement on the course they had decided on. One such alteration was in connection with the new engine for driving their machinery. The fact that the engine which they had decided on was too powerful for the work for which it was needed had been brought to their notice, and they at once made inquiries and consulted with the maker. After he had given the matter his attention this also was his opinion, and he therefore offered them a less powerful engine at a reduction in price of £65, and they decided to have it put down. Then “with the object of securing the latest improvements in bakery machinery, a deputation, consisting of the managers, foreman baker, and two members of the committee, were appointed to visit the exhibition of bakery machinery at Edinburgh, see the machines at work, and report.” As one of the results of this visit machinery to the value of £500 was purchased.

The committee continued to complain of the slow progress which was being made with the new building, and the architects were appealed to to endeavour to get the contractors to speed up by putting more men on the job, but with little success. The lessees of the St James Street premises had been promised entry by Whitsunday 1887, but as time passed the committee began to get anxious about their ability to fulfil this part of their contract. The engines and machinery, also, were ready to put in, but this could not be done because the other contractors were behind with their sections. So bad did the position become that ultimately the committee were forced to put the matter into the hands of their agent. However, this difficulty also was overcome without further friction. The lessees of St James Street bakery now began to press for entry, and the committee were compelled to ask for their forbearance, as they were afraid that the new bakery would not be ready for occupancy at the time stated.

It was agreed that a social meeting be held on the occasion of the opening of the new premises, and that the premises be open to the general public for inspection during the whole of the opening day. A band was engaged to play selections in the courtyard for three hours in the afternoon, and the building was decorated with flags. Finally, such progress was made with the equipment of the premises that the committee were in a position to fix 21st May as the opening day, and preparations for the great event went forward rapidly.

THE OPENING CEREMONY.