Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-06
RULE BUTTER PRICE
Five Men Meet Weekly in e.
gin With Imperial Powers.
PAY, OR GO BUTTERFLIES
President of Elgin Board of Trade
Before Senate Committee.
PRODUCERS IN A COMBINE
Creamery Which Cut Prices Would
Be Expelled From the As
sociation.

The fact that five men, meeting every
Monday morning In the little city OF
Eigln. ILL.,, fix the price to be paid by the
consumers OF creamery butter throughou,
the country was demonstrated before the
Senate special committee on food prices
this morning. when John Newman. pres
ident OF the Elgin Board of Trade. frank
ly told the committee the operations OF
the butter makers and butter sellers.
The board names the highest price the
market, in its opinion can stand
Ihese five men are known as the quo
tation board, and their word is final The
men who produce the butter will not sell
for any less figure. and those who buy
butter have to pay it or go without. They
are enabled to do this through co-opera-
ton of the creameries, the farmers and
the dealers in butter. II butter dealers
underssil these figures they are expelled
from the organization.
The special committee heard the testi-
mony Of Mr.. Newman with varied feel
1ngs, as evidenced by their questioning
There was Senator McCumber Of North
Dakota, who thought 1t a fine plan for
the farmers to get all they could for
their butter and he is convinced they
do not get enough. Then there was SEN
ator Johnston Of Alabama, who wondered
If the farmers did really get the benefit
OF the good prices fixed by the agreement
Senator Lodge Perplexed.
Senator Lodge sat with puckered brow
as If he were wondering where the con.
sumer came in.
These five men comprise two buyers OF
butter, two sellers of butter and one who
may be either buyer or seller.
Who fixes the price," asked Senator
Lodge.
Mr.. Newman explained that the board
price was fixed by the committee Of the
board of trade. The considerations upon
which they base the price Is the general
conditions of the market. For instance
he said, they take into consideration the
amount Of butter sold at call price and
the amount of butter offered for sale but
was not purchased Besides, the board
has the market quotations from New
York. Philadelphia, Boston and other
eastern markets.
Senator Lodge asked him why the board
dropped the price from thirty-six to thirty
cents per pound during last January.
Drop in Price Explained.
Mr.. Newman explained that this was
brought about by the storms which de-
layed so many deliveries and otherwise
tied up their business. and was also due
to the conditions Of other markets. The
Elgin board, he said, made the price every
Monday. while other markets. for in
stance the New York market, made the
price every day. In New York the price
was quoted as thirty-eight cents Monday,
and the Elgin board fixed the price at
thirty-six, although they realized that it
was a little high. Friday the New York
price was thirty-four and Saturday il
was thirty-two and the following Monday
it was thirty. Consequently. the same
Monday the Elgin price was fixed at
thirty cents.
1t was brought out that there are no
creameries in Elgin, where the board
meets, but the action OF the board In
fuences the prices demanded by cream
cries as far away as Iowa. President
Newman said that the increased price
Of butter was due in part to the increased
cost of feed, hay for instance. The in
creas cost of hay was due to the farm
ers turning their meadows into corn land
and sowing for other more profitable
crops.
The "Elgin district" comprises the en-
tire state of Illinois, the three lower
tiers of counties in Wisconsin and the
eastern tier of counties in Iowa.
Figures submitted showed that butter
was produced in the Elgin district in 1909
to the value of $1,000, 229. In 1908 the
value was S12.573, ,713. The average price
per pound in 1909 was 2S.99 cents and
in 1908, q cents.