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The Glasgow, produced between 1919 and 1924, was Scotland's only indigenous tractor. John Wallace and Sons, Agricultural Engineers and Implement Makers, Glasgow, established in 1826, became the largest agricultural implement business in Scotland. John Wallace, the founder of John Wallace and Sons, was one of four sons and his father John, was a blacksmith at Fenwick, Ayrshire. In 1896 John Wallace and Sons Limited, was incorporated, taking over the Agricultural Engineers and Implement Makers business. With, and after the First World War, a so-called boom period existed and expansion into engines and tractors became the focus of John Wallace.
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A new company called Wallace Farm Implements, Limited, was incorporated in December, 1918, with a capital of �300,000. In 1920 the company listed on the Glasgow Stock Exchange with Subscription Lists open on August, 9th 1920.
In the prospectus the objects of the company were:
"The funds [were] issued, for the purposes, inter alia, of acquiring the Patents for a new Motor Tractor to be used for agricultural and other purposes, now known as the "Glasgow" Tractor, and, in order to facilitate the manufacture of the said Tractor and the sale and distribution thereof in large quantities, the whole of the share capital in John Wallace and Sons, Limited, Agricultural Implement Makers, Glasgow; the Carmuirs Iron Company, Limited, Falkirk and the D.L. Motor Manufacturing Company, Limited, Motherwell."
"To acquire as at 31st December, 1919, the business of Wallace Farm Implements, Limited, Engineers and Founders, Agricultural Implement Makers, Glasgow, and Patentees and Manufacturers of the "Glasgow" Tractor, with all heritable properties, Patents, Plant, Machinery, Stock and Contracts appertaining thereto. To complete the purchase of the National Projectie Factory at Cardonald, near Glasgow, which [was] negotiated by Wallace Farm Implements, Limited. To acquire the British, Colonial, and Foreign Letters Patent for Single Sleeve Valve Engines, known as the Burt McCollum Patents. To complete the purchase of the National Projectile Factory at Cardonald, near Glasgow, which [had] been negotiated by Wallace Farm Implements, Limited."
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The company works in Paton Street, Glasgow, owned by the Company, were completed in 1914. The buildings covered between three and four acres of ground. Carmuirs Iron Company, Limited, was incorporated in 1898, for the purpose of making light castings as required by builders and engineers for home and export use. The foundry, situated at Falkirk, the centre of the coal and iron district of Scotland, covered 4 1/2 acres, with a railway siding. The D.L. Motor Manufacturing Company, Limited, incorporated in 1918, for some years prior to the war had been engaged in the production of the D.L. light motor car. The factory at Motherwell, during the war equipped with the latest type of machine tools, was engaged in munition work. To consolidate the business, the tools and machinery were transferred to Cardonald, and the Motherwell Works were put up for sale.
In August, 1919, a contract was entered into between John Wallace and Sons, Limited, on behalf of Wallace Farm Implements and the British Motor Trading Corporation, Limited, for the sale to the latter, on terms advantageous for Wallace Farm Implements. Terms were of its whole production of "Glasgow" Tractors for a period of five years from 1st January, 1920. By this contract the British Motor Trading Corporation, Limited, were appointed sole selling agents of the "Glasgow" Tractor for the whole of the British Empire, except Canada. To enable Wallace Farm Implements to undertake the large production contracted for, the Nationa1 Projectile Factory at Cardonald was purchased at a Price of �170.000. This price included the factory buildings, railway sidings, power, lighting, heating, and a considerable quantity of the suitable plant, with twelve acres of ground and with about thirteen acres available for future extension. When the Subscription List was published for investors a deposit had been paid of �17,000. When patents and licenses for various countries had been issued Wallace Farm Implements went into voluntary liquidation.
The net asset valuation, dated 22nd March 1920, excluding goodwill, was �624,006 1s 4d. The projected Glasgow production for the British Empire, excluding Canada, per annum was estimated at a minimum 1,000 tractors, during and after 1920, and the patentees (John Wallace and Sons) for developing the Glasgow received �10 per tractor in royalty fees, in lieu of a cash payment. For the United States, and South America, a contract was under negotiation in 1920 for 2,500 tractors per annum with royalty of �10 per tractor; France and French Colonies, 500 tractors with �10 royalty. In the agreement 400,000 fully-paid shares valued at �1 per share, and �30,000 cash were accepted by Wallace Farm Implements.
The Glasgow, up until August 1920, was fitted with a poppet valve engine, however the intention was to obtain a patented engine rights and manufacture these at Cardonald. The Burt McCollum was considered the most suitable engine for any purpose being efficent, economical, quiet running and a reliable source of power. It had simplicity, ease of management with absence of parts requiring adjustment. The whole unit was entirely enclosed, making it impossible for dirt or dust to come into contact with any of the working Parts. It was decided to confine to one size of engine, which would be suitable for the Glasgow. The Single Sleeve Valve Syndicate, of 34 Paton Street, Glasgow, acquired the proprietary rights with an optional price, selling to the company, plus a sum of �25.000. The option price was: (1) �100,000; Payable �50,000 in cash and �50,000 in fully-paid shares of the Company, and (2) $250,000 dollars New York funds, payable in cash. With development of plant and machinery at Cardonald the factory geared up for an annual output of 5,000 tractors.
Several Directors held shares of �1 each in Wallace Farm Implements in August 1920, of which they were :-
Mr. Duncan McNaughton Wallace, 14,444 fully-paid shares individually, and 18,600 fully-paid shares jointly with other people;
Mr. David William Traill Cargill, 3,000 fully-paid shares;
Mr. John Coutts Duffus,3,500 ful1y-paid shares;
Mr. William Guthrie, 3,979 fully-paid shares;
Mr. John Napier Reynard, 4,001 fully-paid shares;
Mr. George Bertram Shields, 5,001 fully-paid shares;
and Mr. William Burns Wallace, 13,851 fully-paid shares,
Mr. Duncan McNaughton Wallace and Mr. Willlam Guthrie were Partners, with others, in the Single Sleeve Valve Syndicate.
As a new company with capital of �1,000,000, the share issue consisted of 850,000 shares on offer at �1 each at par, of which 450,000 shares had been, or were to be issued fully-paid in part payment of the assets acquired by the company. Since the beginning of 1920, �66,637 had been paid towards the Burt McCollum patents.
Mr. Duncan McNaughton Wallace and Mr. William Guthrie were appointed Managing Directors on 2nd and 9th April 1920, respectively, at �1000 and �1500 per annum salary for five years. They also received a royalty of �1 per tractor. Horace Milton Emery, the General Manager, was paid royalties on the patent licences, excluding Great Britain and Ireland, for as long as he remained with the company.
John Wotherspoon Burt, Engineer, Glasgow was appointed on 7th May, the first manager of the Single Sleeve Valve Engine Department on �1000 per annum, plus commission. Duncan McNaughton Wallace, William Guthrie and Horace Milton Emery also received a total commission of 7 1/2 per cent on the sum by which the royalties from the Single Sleeve Valve Engine Patents exceeded �25,000 in any year.
Personal details:
DIRECTORS:
DUNCAN McNAUGHTON WALLACE, M.I.Mech.E., Agriculturl Implement Maker, 34, Paton Street, Glasgow, Director of the Highland and Agricultural Society, Director of the Carmuirs Iron Company, Limited, Chairman.
DAVID WILLIAM TRAILL CARGILL, East India Merchant, Elstow, Dowanhill, Glasgow, Director of the Burmah Oil Company, Limited.
JOHN COUTTS DUFFUS, Jute Spinner, Dundee, and Jute Merchant, London; Penniwells, Elstree, Herts.
WILLIAM GUTHRIE, Engineer, Toll-street, Motherwell, Director of the D.L. Motor Manufacturing Company Limited.
JOHN NAPIER REYNARD, Marine Insurance Broker, of Manuel, Stirlingshire.
GEORGE BERTRAM SHIELDS, Farmer, Dolphinstone, Tranent, Director of the Highland and Agricultural Society.
WILLIAM BURNS WALLACE, Agricultural Implement Maker, 34 Paton Street, Glasgow, Director of John Wallace and Sons, Limited.
BANKERS:
THE NATIONAL BANK OF SCOTLAND, LIMITED, Glasgow, Edinburgh, London, and Branches; and their Correspondents, LLOYDS BANK, LIMITED, 72 Lombard Street, London; and Branches.
THE CLYDESDALE BANK, LIMITED, Head office, St. Vincent Street, Glasgow; and Branches.
SOLICITORS:
BANNATYNE, KIRKWOOD, FRANCE and COMPANY, 145 West George Street, Glasgow,
BROKERS:
KIDSTON, GOFF, and FINDLAY, 94 Hope Street, Glasgow.
AUDITORS:
McLAY, McALISTER, and McGIBBON, C.A., 94 Hope Street, Glasgow.
SECRETARY:
ALEXANDER BENNIE, REGISTERED OFFICE, 34 Paton Street, Glasgow.
Between 1920 and 1925, the American tractor market competed for sales between Fordson, International Harvester, Case and John Deere. Fordson cut its prices to promote sales, while International Harvester Corporation offered a free plough with each tractor it sold. This cleared all stock and the company then introduced the 15-30 and 10-20 models in 1921 and 1923 respectively. After these models the first row crop tractor was manufactured in 1924. The Farmall was designed specifically for cultivation as it could be driven along rows of cotton, corn and other crops. From then on the rival manufacturers used innovation as a way of staying ahead of the competition. Allis-Chalmers, Case, International Harvester, John Deere, Massey-Harris and Minneapolis-Moline all sought to offer more advanced tractors to their customers in order to win sales. The Glasgow could not compete with the ravenous American market and the problems within the British Motor Trading Corporation.
Go back to part one :-> The Glasgow Tractor
Go to part three :-> The British Motor Trading Corporation
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