The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-25

lnaC- ola, nOaTy-leaQe0$ operator IN the
world of trade, known by the double
name of Supply and Demand, has trailed
the banner of the butter trust in the
mud, and the soaking rains Of yesterday
and to-day in all parts of the west are
rubbing the mud in.
The butter boom Is busted
BY next week it is believed the whole
sale price will be back to a normal basis,
which means 20 cents per pound in Min
neapolis, with the retail price two or
three cents higher. Already this week the
price has declined nine cents pound.
This is situation which ought to be
pleasing to both trust and consumer. The
big packers started in to corral the major
portion of the supply and while 1t will
be forced to sell at a loss a large guam
THY of the immense stock on hand, it has
the satisfaction of knowing that its drag
net worked well even If its other plans
went to the bad. The consumer has a big
broad grin coming as he watches the price:
go down the slide with the butter trust
rushing its big holdings on, the maEke IN
desperate effort to get out from Mnd
The Trust Bids On, @
The fate Of the butter corner is
the reauosGpps am onntings to ninss
per pound made dprfn4 the past ~
Armour, Swift, Cudahy, Norris,
berger and Hammond, known as the ssbig
six in the meat and produce trade, own
immense cold storage facilities at Chs
cago New York, and various ether big con-
Stunning points. The drouth OF the past
three weeks and the shortage Of feed was
a natural condition tending toward higher
prices in butter. The big six took un-
due advantage Of this and by exaggerat
ing the conditions proceeded to corner the
butter supply. On the strength of Con
ditions" the market was bid UP gradually
to strong figure.
The New York price of butter general
| ly regulates the price in other markets.
Gradually the wholesale price in New
York was increased. The trust planned
by making the price high to keep all the
supply coming their way; their storage
| was ample to take care of the stock till
the corner was accomplished and then
would come the killing which would
net them fancy profit. Their agents
talked shortage" The press Of the
country prompted the consumer to econo-
mize by discussing the high prices
swamped with Butter.
Right here supply and demand began to
work with vengeance. The consumers
considered butter too much of a luxury
to spread on very thick, and their orders
grew remarkably less in the short space
Of few days. Merchants in Minneapolis
who, under normal conditions, ordered
from ten to fifteen tubs Of butter at a
time, cut down their orders to one third
that amount. The same was true in every
other center. The local wholesale
handlers, not being able to dispose Of the
butter through the regular channels,
shipped 1t on to the fat boys with the side
whiskers who were managing the corner,
and who were bound to take everything
offered. This stream of the yellow prod
uct flowed into the cold storage houses of
the trust several days. Butter mounted
to a magnificent price in the meantime
Demand continued to fall off. New York
is pretentious town, but it could not go
a retail price Of 40 cents for butter.
The boom Collapses.
About the time that the fat boys of the
butter trust were counting four aces and
looking under the chair for fifth, some
thing happened. Butter slid down peg.
1t kept sliding in spite of the loud talk