The Washington herald., 1910-08-07
By j. CLINTON RANSOM.


Elgin. H.. to all parts of this country
last Monday afternoon.
This was an advance OF one cent
pound. and the price set by the board
OF trade Of Elgin is the guide for butter
dealers In North America.
Applying this standard to Washington
the local dealers last Tuesday morning
set the wholesale price Of butter at 291z
TO 3O1k cents for creamery. and 81 cents
for prints. that being about the difference
between the Elgin price at wholesale and
the Washington jobbing price.
Inquiry OF the president Of the Elgin
board Of trade with reference TO the rul-
ing on the price of butter elected the
information that the conditions Of the
market relative 10 the sources OF supply
seemed TO justify the advance. Further
more. President Newman said that so
far as he could see prices would be
higher during the autumn months. and
that probably winter prices would be
higher than they have ever been known.
President Newman also called attention
In his statement TO short pasturage as
one Of the factors in the situation.
Unusual Advances In August.
The price Of butter usually advances
somewhat in the month Of August. May.
June, and July are the months Of lowest
prices. and December and January usual
ly the months Of the highest prices. But
the price set last Monday was the high
est August quotation ever made by the
Elgin Board OF Trade. The nearest ap-
proach TO it was in 1907. when the aver
age for the month was 249. with the
highest for tie month at 25.5 Twenty
eight cents is one cent higher than the
average price FOR the year 1908. which
was twO-thirds Of a cent lower than the
previous year, when butter prices for the
year reached high-water mark.
The action OF the Elgin Board OF Trade
last Monday was largely arbitrary on
the principle established years ago by
the railroads that the traffic would stand
the rate. Being in a position 20 do SO,
the Elgin board fixes the price at 2s
cents, guided by what II has bsen able to
learn about the probably supply Of but
ter during the month 10 satisfy the de-
mand.
Traders in Washington say they are
helpless. as they look 10 Elgin for the
standard price and must fix theirs TO
conform Herewith. Retail dealers are
likewise helpless, and bringing the mat
ter down 10 the consumer. he has the
one choice left Of paying the piper or not
dancing.
Costs Millions of Dollars.
Nobody knows, except approximately,
the amount OF butter produced in the
United States each year. but the books
of statistics give it as about 800, 100000
pounds. which would give a monthly av-
erage of 100000 pounds, and adding a
cent to the pound wholesale value takes
the sum Of S1.6oo.oOO out Of the pockets OF
the American people on the single matter
OF butter alone.
Supposing that 80 per cent OF the total
production represents that portion Of the
output which is sold in the home market
TO butter eaters. deducting the amount
sent out OF the country as export and
that used on the farms where Il Is pro-
duced. and the people Of the nation are
paying $4,000 more for their butter this
August than they did In july.
That this Is done at the behest OF the
board OF trade in Elgin. H., is surely in
dicative Of the perfect working Of the
trust principle in the selling and distribu-
ton Of this product in the United States.
1t is not intended here 10 discuss the
right or wrong Of the system which takes
$4,000 monthly from The pockets OF the
people in the advanced price OF butter.
but to state the fact as It appears. which
was made painfully plain In about every
investigation into the cost OF living last
winter IN Washington and elsewhere. The
responsibility of setting the price rests
without any doubt in Elgin, H., II other
factors OF production. supply. and de-
mand enter into the terse decisions sent
out weekly in the Elgin dairy report
How Il All Happens.
How the association Of dairymen Of a
small city in Illinois became the arbIter
OF the destiny Of butter in the system
Of distribution OF the product in this
country was told several times In Wash
ington last winter
Back in the '7Os dairying became the
principal industry in and around Elgin.
A specially fine grade Of butter was pro-
duced there, and as early as 1870 this
product had forced its way to the tables
OF the best families in Chicago and other
Western cities. and was fast winning its
way into the Eastern markets as the
standard Of good butter. The farmers
and jobbers OF Elgin began to see that
they had control Of a product which with
proper handling meant good money. In
1872 they formed the organization known
as the board Of trade. which had for its
principal object the development Of the
butter trade in that part of Illinois.
Demand for Elgin butter increased I'M
der the publicity given it and the uniform
excellent quality OF the product For
twenty years the board Of trade contin-
ued its efforts to supply the best grade
OF butter possible and to build up a
system Of distribution which would cause
it TO command the best prices in all the
markets Of the country
JobbinE Element Enters.
Jobbing grew enormously at Elgin. at
Chicago, and other points, and, owing to
the standard Of the product of the cream
cries at Elgin. 1t became throughout the
United States the standard Of the best
butter In the trade. In 1891 the Elgin
Board Of Trade started the weekly pub
LEGATION Of the Elgin Dairy Report. and
an extensive telegraph service followed