Perhaps the position in which the Federation was placed by the war and the view of it taken by the directors can be explained most clearly in the words of Mr Gerrard himself. Addressing the September quarterly meeting, he stated that the profits for the half-year which had ended in July had been a little better than usual, but [3]“the future was so indefinite that no one could foresee with any accuracy what would happen. They had been blamed, and were still being blamed in certain quarters, for not increasing the price of bread, but they had resolutely refused, thinking it their duty as a Federation to keep the price of bread and other commodities as low as possible. Notwithstanding, he understood the price of biscuits had been increased in some quarters, and this had brought them some trade that they should have had before. The way in which prices were rushed up at the commencement of the war had seemed to the board most unseemly and unpatriotic, and seemed to show that everyone was trying to make as much as possible out of the war. It was unfortunate that the price of bread would require to be increased before the war was over, but until that step was absolutely necessary they would not increase it, and then only as far as was necessary. They had received several contracts for bread, and the manner in which the manager, heads of departments, and the general body of the employees acted under the stress of these circumstances was worthy of all praise.” Footnote 3: (The _Scottish Co-operator_, 25th September 1914.) HALF-PAY TO SOLDIER EMPLOYEES. At the outbreak of war, a number of the employees had been members of the Territorial Forces and had been called up at once, and the board decided to grant them half-pay. Later, when the call for more men came, many of the employees joined up, and the directors decided that those who enlisted should be placed on the same footing as regarded half-pay as were those who had been called up at the outbreak of war. At this quarterly meeting the directors were accused by a representative of the Bonus Investment Society of not being so generous to their employees who were serving with the Colours as were some other Co-operative societies, but the chairman was able to satisfy the delegates that, in those cases where generosity was most necessary—those of wives with large families—the Baking Society’s scheme was the one which gave the wife the larger total income.