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.