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Strength of the Society in
1861—Primitive Arrangements—Supply of Bread—Fleshmeat—Boots and Coal—First
Quarterly Report—First Dividend—Successes and Trials—Bad Butter and Dear
Sugar— Apathetic Members—Bonus to Workers—Trouble with First Salesman
—Appointment of Second Salesman—Second Shop—Increase of Capital—Credit and
Menage System—Purchase of First Horse— Successive Shopmen.
“Some of the objects of
Co-operation are, to economise the necessary expenditure of the working
class by dispensing with the unprofitable labour and capital that stand
between the producer and the consumer, to gain access to the purest and
cheapest markets, to afford commercial instruction to the people, to give
opportunity for developing the intellectual and moral faculties, to
inculcate the practice of prudential virtues, and thereby create higher
aspirations and fit men for nobler aims in life.” —(From nth quarterly
report of Barrhead Co-operative Society.)
STRENGTH OF THE SOCIETY, 1861
AT the end of our first
chapter we left the little shop at 95 Main Street with its shutters newly
taken down, the shopman behind the counter with his sleeves up, and the
committeemen all hopefully yet anxiously waiting the first results of their
bold experiment. On the day the shop opened, the Society was in the position
of having fifty members and capital amounting to £70—all of which was sunk
in shop fittings and a small stock of groceries. It was a very humble
beginning ; and a very small matter—the neglect of the members or a little
carelessness on the part of the managers—might have meant its ruin. But once
it had got fairly launched, the new Society went steadily on without a
single setback worth speaking of. Doubtless there were moments of anxiety,
but of these we find no mention in the chronicles of the period. On the
contrary there were many things to hearten the pioneers, and we can readily
understand with what joy the report would be received at the end of six
weeks that the membership was increasing and that the weekly drawings for
this period averaged £36,14s. From the first moment of the Society’s
existence the directors face the difficulties that arise in a practical
spirit which commands success.
PRIMITIVE ARRANGEMENTS
Many of its arrangements are,
of course, of the most primitive character, and they are often such as we
cannot look back upon without a smile. Reference has already been made to
the conditions attaching to the appointment of the salesman, and we find
such matters as the purchase of a “ gamel ” for potatoes and the putting in
of a stock of soft goods—to the extent of one piece of moleskin and one
piece of flannel—forming the subject of a very anxious debate. That item “
one piece of moleskin ” seems to indicate that the moulders of Messrs Smart
& Cunningham, who had so much to do with its formation, were still pushing
it forward. The bread supply gives trouble at an early stage, and at the
third meeting following the opening of the shop the committee encounters a
serious difficulty in regard to the delivery of the “ staff of life ” to the
West Arthurlie members. Much discussion finally results in these members'
being asked to appoint one of their own number to receive the bread from the
van in a slump lot, “ take note of each member’s consumpt, and hand the list
to the salesmen to be charged against each individual on the Saturday.” One
can perceive all the elements of trouble here, and, as might have been
expected, the proposed arrangement proved unsatisfactory; and a week later
it was amended so “ that each member arrange with the salesman what quantity
he wants left, and pay at the end of the week.”
SUPPLY OF BREAD AND FLESHMEAT
It will naturally be asked
how it comes that the Society has so early managed to arrange a van service
of bread for its members. The explanation is that the committee made terms
with a local baker to supply bread to the members and send in his account to
the Society. In the years immediately following, this method gave rise to a
great deal of worry and annoyance, first one baker being tried and then
another; but finally “ tokens ” were introduced, and the custom arose of
permitting the members to purchase bread by means of these tokens from whom
they pleased, the bakers being afterwards paid by the Society. In a somewhat
similar way the committee early tackled the question of supplying members
with butcher-meat. Competitive offers were taken from local fleshers, and
the late Mr John Clark was the first to secure the Society’s trade, his
offer of 2S. per £ discount being accepted against one of is. per £ from Mr
William Craig. This Mr Craig, it may be interesting to point out, at that
time a flesher in Main Street, was afterwards the owner of the Cogan Street
Weaving Factory, and as such was well known throughout our district. It was
part of the arrangement that no dividend was allowed to members on their
butchermeat purchases. As can be understood, this proved anything but
satisfactory; and after several spasmodic attempts to put it on a better
basis, the arrangement was finally abandoned.
BOOTS AND COAL
In like manner, and within
twelve months of its birth, the Society had arranged for the supply of boots
from Mr John Paton, and of coals, first from Mr Alex. Kilpatrick but
latterly from Mr Duncan Ferguson. All this is indicative of a spirit of
enterprise on the part of the first managers, which, we believe, will
scarcely be paralleled, and certainly not surpassed, in the annals of
Scottish co-operation. And the sound sense and business capacity of the men
who were at the head of its affairs is proven by the fact that these
courageous experiments were made with at least partial if not always
complete success, and that they were so safeguarded as to entail no loss or
injury to the young organisation.
FIRST QUARTERLY REPORT
The end of the first quarter
was naturally awaited with great anxiety, and the committee, on 6th August
1861, is very pleased to report a slight profit. It is too small, however,
to permit the declaration of a dividend, and is accordingly carried forward
as a small nest-egg for the second quarter. By the second of August we have
climbed so far into a settled condition that it becomes advisable to insure
the stock for £200. Two months later (on 8th October) the directors declare
that “ sensible of the growing business of the Society, the time has now
arrived for the appointment of a boy to assist the salesman,” and Alexander
Stark, son of the secretary, is selected for the situation.
FIRST DIVIDEND
On the 5th November 1861 the
second quarterly meeting is held, and the directors are in the proud and
happy position of declaring their first dividend of is. id. per £, and of
reporting at the same time that the fifty members of the opening have now
increased to 100, and the £70 of capital has grown to £130. Doubtless there
have been many proud moments in the history of the Society, and it must
often have happened that the president for the time being felt a rich glow
of pleasure when called upon to intimate some increase in trade or profit;
but we can well believe that in the whole records of the Society there could
be no prouder moment and no happier president than Mr Adam Crawford when it
fell to his lot to announce that modest dividend of 1/1 and that increase of
100 per cent, on the capital of the members. The practical and far-sighted
wisdom of these pioneers is exemplified also in a motion, brought forward at
the same meeting by two members of committee, to put aside 2J per cent, of
the profits as the nucleus of a reserve fund. It is true that the motion was
defeated by a small majority, but it shows unmistakably that present success
had not blinded the eyes of the leaders to the necessity for making sure of
that success being built upon solid and secure foundations.
CONTINUED SUCCESS AND TRIALS
Continuing their career of
prosperity, the committee, by the middle of December, decide to take the
empty house on the ground flat adjoining the shop. This is to be used
chiefly for directors’ meetings, but also as a land of auxiliary store for
the increasing quantity of goods which they find it necessary to purchase.
Already they are beginning to feel the pinch of small premises, and it is
agreed to take down the partition which divides the shop in two in the hope
that this will permit of more accommodation. So far we have spoken only of
the triumphs and successes which came in that first six months, but no one
who knows human nature—and shall we say particularly co-operative human
nature—will run away with the idea that the lot of the committee was one of
unbroken happiness, or that they slept upon a bed of roses. They had already
been subjected to a good deal of criticism, they had been troubled in spirit
by those whom Mr Stark in one of his early reports calls “ dividend
co-operators,” and a number of dissatisfied ones had already confessed
themselves disillusioned and had departed with their share of the capital.
Indeed, the managers are feeling the want of capital very much, and on the
declaration of the next dividend they urge members to leave the money in the
treasurer’s hands, and beg those who cannot do so “ to take it in goods and
not in cash.” As an instance of the want of sympathy which had occasionally
to be faced, we may point to an incident in the winter of 1862 when there
was great and exceptional want of work and much distress in the district.
The Cotton Famine Fund was being formed to assist cases of necessity, and
the directors of the Society were prepared to bear their part of the burden
lying upon the community. They accordingly recommended to a special meeting
a vote of £5 to the fund. This the members reduced to £x, and at the
following quarterly meeting a resolution was carried censuring the committee
for its resolution, and declaring that “ the same was contrary to the spirit
of co-operation ! ” All this would, doubtless, be gall and wormwood to those
early apostles of the new movement, burning as they were with an enthusiasm
which only those who have taken part in some great movement in its early
days can fully realise.
BAD BUTTER AND DEAR SUGAR
Practical difficulties also
they are bothered with, and it will not seem strange to those who have had
experience of committee work when we say that one of the first to put in an
appearance was our hoary-headed, old friend " bad butter.” " Bad butter ” is
the cry of the members at more than one of the early general meetings, and
the committeemen are kept on the run trying to satisfy diverse tastes in
that commodity. Another difficulty which worries the directors of that time
is, unlike the butter one, unfamiliar to his successor of to-day. This is
the high price of sugar, coupled with the fact that there is a general habit
amongst grocers of retailing it at or even below cost price. What is to be
done with sugar ? If we sell at a price which will permit of a profit, our
members will almost certainly purchase the article elsewhere. If we sell at
cost, how are we to pay a dividend ? And so, after much anxiety, it is
recommended to the members, and accepted by them, that sugar purchases shall
be entered separately in the books, and no dividend paid thereon. Even then
the managers feel they are working the sugar trade at a loss; and at one
meeting it is solemnly recorded in the minutes that an applicant for
membership is refused admission “ as the applicant is a large consumer of
sugar ”—surely as strange a reason as could well be imagined for keeping any
person outwith the co-operative movement! One wonders who this large
consumer was, what were the reasons for his—or it may have been her—heavy
consumption of sugar, and whether he, or she, afterwards reduced it to such
manageable proportions as to permit of a new application being accepted. It
was only in November 1864, and that after a long discussion at a quarterly
meeting, that the regulation as to paying no dividend on sugar was
withdrawn.
MEMBERS' APATHY
Another, difficulty which
arises is, to our thoughts, somewhat unexpected. One naturally assigns to
the men of an earlier generation the possession of virtues, the absence of
which we deplore in our contemporaries. We are grieved, for instance, at the
want of interest too often shown by members to-day, and, by contrast, we
think of their predecessors as being full of enthusiasm and constantly
animated by a spirit of devotion to duty. It is surprising, therefore, to
find that, not once, but many times, in these early years the monthly and
quarterly meetings had to be abandoned for want of the necessary quorum.
Even when the’ membership has grown to three or four hundred, we still find
in the minutes notices of abandoned meetings. To overcome this, many plans
were suggested. Warders were appointed for the different districts, with a
view to beating up laggard members, and, for a long time, absentees from
quarterly meetings were fined one penny. It is interesting to note in this
connection that the recently established regulation for the production of
the share book on entering the meeting is but the revival of an old custom
of the Society. Each member had to produce his book on entering the hall,
and it was the duty of the two most recently appointed members of committee
to keep the door, see that the rule was obeyed, and make a note of the
number of each book shown, so that the absentees who did not figure on the
list might be fined.
THIRD QUARTER’S DIVIDEND
With the completion of its
third quarter and tne repetition of the dividend of i/i, the Society may be
said to have got fairly settled down. The success of the second quarter, it
might have been argued, had been due to some fluke or to an error in
bookkeeping, but a repetition on the same lines and at the same figure
plainly indicated that Barrhead Co-operative Society had come to stay. From
this time onward we find record of continual additions to stock, and there
is a constantly increasing stream of new members. The second
balance-sheet—the first one showing a dividend—was printed; but, on the
preparation of the third, it is considered too expensive to have this done
each time, and it is decided that only every alternate quarter’s report be
printed. Whilst we are touching upon dividends, it may be worth while noting
that in the earlier years lower dividends ruled than would be acceptable
to-day. In the fourth quarter the profit showed 1/2 per £, but it was not
until fully ten years after the formation of the Society that a dividend of
2/ was earned and paid. When, in 1867, after a succession of profits ranging
from 1/2 to 1/6, there was a sudden spring forward to one of 1/10, the
committee could not repress the desire to let its vanity find expression in
the report. “This dividend (i/io),” it says, “ is large, and should satisfy
the expectations even of the most sanguine of the merely dividend
co-operators, and especially gratifying will it be to those who are
co-operators on principle.”
BONUS TO EMPLOYEES
It is to be remembered that
from the beginning and, indeed, right on until May 1875, the payment of
dividend on purchases was accompanied by an equivalent bonus on all
emplpyees’ wages. At a meeting in May 1875, a majority of the members
decided against the continuance of the bonus to servants, and the position
then taken up has never been altered, although it has sometimes been called
in question. The decision on that point is an instance of a very complete
change of policy, for at a meeting in June 1867 it was unanimously affirmed
that “ the payment of a bonus on wages was a fundamental principle of
co-operation.”
TROUBLE WITH FIRST SALESMAN
Its speedy and continued
success would seem to have indicated that the Society was fortunate in its
first salesman, but this is hardly borne out by the minutes. John Blackwood
would appear to have been a very capable person, but he seems to have made
the mistake of thinking that the board would be a mere figurehead, content
to look vacantly on at his management, provided he succeeded in producing
profits. Before the first year is out there are evidences of conflict
between the salesman and the committee. He is twice reprimanded for want of
respect towards the directors, and there are repeated complaints that he
pushes certain goods and holds back others which are more sought after by
members. It is therefore decided, in September 1862—sixteen months after his
appointment—to dispense with his services, principally on the ground of his
overbearing manner and disobedience to the directors. The following week Mr
Martin Whyte is appointed to the vacancy, but the first man will not go
without creating a certain amount of trouble. He carries his case before the
following meeting of members, to whom he appeals for justice. He blames
chiefly the boy, Alexander Stark, whom he alleges had been appointed against
his wishes, and personally accuses the secretary of being the direct cause
of his dismissal. The meeting, however, with unanimity, support the
committee, and approve of what has been done. Even then John Blackwood
remains a trouble. He desires, naturally, to withdraw his security at once,
but £50 is more than the Society can afford to pay on short notice. Half of
the amount is paid over in a week or two. There is a good deal of
correspondence, and even threats of legal proceedings from both sides, but
it is not till January of the following year that he finally obtains the
balance due him. And, after all, the last word remains with the salesman,
for he puts the Society to some inconvenience by refusing to grant his
signature to a request that the “ certificate of license ” (probably a
tobacco licence) be transferred from his name to that of the president.
SECOND SALESMAN AND SECOND
SHOP
Within a short time of Mr
Martin Whyte’s appointment additional assistance is required to meet the
growing demands of members. Miss Maggie Whyte is appointed to help in the
shop, at first for three days a week, and latterly on full time. The little
shop is no longer able to satisfy requirements, and after many negotiations
with the proprietor—Mr Gillies, of Cross Arthurlie Hotel—it is finally
agreed to lease a shop then occupied as a public-house at the comer of Bank
Street. The lease is for ten years, with a break at seven; and in May 1864
the Society moves into these larger and specially fitted premises. In the
negotiations which preceded the taking of the new shop the late Mr John
Allan acted as the agent between the Society and the landlord ; whilst the
practical arrangements and fitting up of the shops were left to men whose
names are so familiar to us as those of James Baillie and Thomas M'Cowatt.
INCREASING CAPITAL
At a slightly later period
the Society was beginning to find capital accumulating in its hands, and
there were many anxious discussions as to how this could be remuneratively
employed. A favourite proposal was the establishment of a com mill, and over
and over again/' both in committee and at general meetings, motions are made
as to the desirability of the Society taking up the grinding of grain for
their own use and for sale to others. A few shares had already been taken in
the Paisley Manufacturing Society, and an English company, the Calliard
Flannel Manufacturing Company, had apparently appealed to the directors as a
likely opening, and there were many talks about its prospects, but in the
end no money was invested in the business. Another project which seems to
have had an attraction for them, and
with which they coquetted a
good deal, was that of ham-curing. They frequently bought pigs from members
and others in the district, which they killed and cured for sale, and a
committee was appointed to investigate the subject with a view to commencing
hamcuring on a larger scale; but in the end nothing came of it, and instead
of starting some small productive work of its own the Society was ultimately
content to invest its surplus wealth in the larger undertakings of the
general co-operative movement.
CREDIT AND MENAGES
In the rules drawn up for the
Society, the promoters were careful to insist upon all its trade being done
on the cash system, and on the outside cover of the original rule book stood
the clear-cut statement—“ All Purchases to be paid for on delivery.” Then,
as now, there were members to whom this acted as an impediment to their
desire to be consistent to the Society. The first effort to overcome this
difficulty took the form of a clothing club, which was formed, not through
the Society, but within it, and with its approval. This seems to have been
unsatisfactory; for as early as 1864 we find a discussion on the first
suggestion for the now familiar menage system for the supply of boots and
clothing. It was deferred at that time, the directors plainly indicating
their dislike to anything in the nature of the dreaded credit trading, and
it is some time later that the menage method is adopted. This is not the
place to discuss the much debated question of a strictly cash or of a cash
and strictly safeguarded credit trading, but it will, no doubt, interest
many if we quote the remarks of the old Scottish Co-operator when reviewing
Barrhead Society’s thirty-seventh balance-sheet. The report was a favourable
one, and announced a dividend of i/ii per £. The editor speaks of it,
therefore, in approving terms, but adds—“ We notice, however, an ugly item
of £494 as value for goods owing to the Society. We are aware that this is
incurred in that new mode of credit termed a 'menage,’ but as we hear of
several societies that have met losses from these menages, it will be well
that the directors pay special attention to this matter as the sum gradually
gets to be very large.” The menage system with various modifications has
ever since remained in operation. Either the fears of its opponents have
proved groundless, or the successive committees have heeded the warning to
keep a watchful eye upon the accounts, for we have not heard of any great
loss inflicted by its workings, and, on the other hand, it has probably been
one of the causes of the Society’s steady and increasing trade.
PURCHASE OF FIRST HORSE
From a very early date the
committee aspired to own a horse of its own, and more than once instructions
were asked from the members on the subject. No doubt the members were also
flattered at the thought of possessing their own horse, but they were at the
same time always careful not to commit themselves, and, time after time,
they sent the proposal back to the board for further consideration. It was
only after long thought that the directors could make up their minds to take
the plunge. Finally, in the opening months of 1867, it is definitely decided
to purchase a horse for the Society’s use, and Mr James Williamson, the
treasurer, and “another member ” are appointed to carry out the important
commission. The real story of that first horse transaction is still recited
with gusto by Mr John Lindsay—now one of the two surviving representatives
of the original members of the Society. Mr Williamson and Mr Robert Law, at
that time president of the Society, journeyed to Glasgow, and in the market
there they spotted “ the very article" for their purpose. The bargain was
quickly concluded, and in high spirits they brought their new four-footed
servant home. Committee members and other friends were hastily summoned to
admire the new acquisition, and amongst those who attended was a carter, an
uncle of Mr Lindsay. ' The company was examining the animal in solemn
silence and at a respectful distance, but the carter immediately began a
real' professional inspection. After a few preliminaries, he proceeded to
the important part of examining its mouth. No sooner had he pulled open the
horse’s jaws than “ Man,” he exclaimed, with the characteristic vigour of
the carter, “ the b-has nae tongue.” It was too true ! Whether by disease,
accident, or ill-usage, the fact was undeniable that the horse had no
tongue. What could be done with it ? was the anxious question of an excited
committee. The carter being appealed to, offered to go with the subcommittee
to Glasgow on the next market-day, where he helieved he might sell it. “But
mind ye,” he added, “ ye’ll need to leave the market d-smert whenever the
beast’s sel’t.” The horse was got rid of in this way at some loss, and for
years afterwards the buying of the horse which had no tongue was a standing
joke, relished by the buyers no less keenly because it was against
themselves. Such is Mr Lindsay’s story of the buying of the first horse,
and, reading between the lines, one can find ample verification in the
minutes. On nth February 1867 the purchase is decided upon, and on 18th
February Mr WilHamson reports buying the animal, but the minute immediately
adds “ resolved, unanimous, that we sell the horse as soon as possible, as
it is not fit for our business.”
SUCCESSIVE SHOPMEN
Our record of the events
which may properly be grouped under the general heading, “ Early Days,”
which is given to this chapter will, we think, be brought to a fitting close
if we return for a short time to the shop itself and the successive shopmen
who presided there. Mr Martin Whyte, appointed in 1862, whilst the Society
was still in its first shop, continued in its service until 1866 when he
resigned. At this time the second shop had been occupied for two years, and
trade had shown a very considerable increase. Robert Adam, from Paisley, was
Mr Whyte’s successor, but he resigned in April 1868, and in doing so left
the Society in a somewhat awkward fix. He could not remain longer than the
19th, and his successor, Robert Sturrock, from Greenock, could not come till
the 26th. To make matters worse, the second-hand also intimated his
intention of leaving on the 19th. This man had been making repeated but
unsuccessful applications for an increase of wages, and he apparently
thought this an excellent opportunity to force the hands of the directors.
How to manage for the week pending the arrival of the new man was the
question. Determined not to be beat, the committee accepted the second man’s
resignation, hurriedly appointed a lad in his place, and put in the
treasurer, James Irvine, to assist until Mr Sturrock would arrive. It was
only a few weeks before this that the directors had removed the steadily
increasing stock, of drapery from the grocery shop, and had appointed a Miss
Au.chencloss to take charge of the first drapery department. She also was
pressed into service in the grocery, and by these means the difficulty was
overcome. The new salesman, Mr Sturrock, remained with the Society only a
year, when he was appointed first manager of the newly-formed United Baking
Society. He was succeeded by a Mr Joseph Tait, but this proved an
unsatisfactory choice, and he was dismissed in 1871. His successor was Mr
John Tyndall, the very mention of whose name is sufficient to indicate that
we are approaching much more modem times, for Mr Tyndall will be recalled by
a hundred for one who can remember any of his predecessors. For many years
thereafter he continued in the Society’s service, and was closely associated
with the period of progress and development which followed. |
