New-York tribune., 1912-02-20
DEFENDS EGG EXCHANGE.
FIG. Urner Denies Produce Deal
ers Are in Conspiracy.
DEAcH MAN FOR HIMSELF
Saws Organization Merely Fur
nishes information and
Settles Differences.

charges Of conspiracy and illegal com
pination for the control or prices nave
.,trred I'M the New York Mercantile bN-
change. and the members are not at al
verse T., expressing themselves ireelS VI
tho subject With the object OF oDtainlne
a, authoritative statement as to the posi-
,ion of the exchange in relation 10 'he
,,ices os butter eggs and other country
nroduce. Frank c. Urner, Tce-president OF
The Timer Barry Company, publishers OF
The Producers Price Current" was asked
what foundation there was for the charges
,,ade against the exchange. In reply MT
ITrner said:
THE members Of that exchange know
that no such combination exists. They are
certain that any intelligent and unpreJu-
diced investigation, such as can easily De
made, would show this to be the fact lheS
feel outrage that they should be held up
10 pubic suspicion as lawbreakers and be
compelled TO leave their business pursuits
70 defend themselves from unjust and un-
founded charges have been Connected WIN
Ahe butter and egg trade of this city for
thirty years as a reporter of market con-
ditIons and am familiar with the condl-
tionS under which these food products are
assembled and distributed. and for some
years I have been an officer Of the Mercan-
tile Exchange
Mr.. I-rner issued a statement as 10 the
business of the exchange. in which he said:
The exchange Is composed of over four
hundred members, chiefly wholesale recelY-
ers and iobbers of butter, cheese ana eggs
The membership includes t nss aso I6esi cold
storage plants, trade newspaper men anu
some others. The merchants are lhoepenI
dent dealers esch lor nilsea, ai ex
cept for legitimate exchange purposes.
The exchange furnishes to It's members
important information OF PUBIC c--caas c5as ~
ter establishes specifications for grades OF
butter and eggs, to the end that uaulns
may be done in known qualities carries on
a dally call at which bids and oherinSs 10.
ftsss specihed grades may be recorded and
sales effected and performs other usetui
functions in settling diherences petWeen
members and in uniting the TRACE lot
nronsr influence in public affairs The eX-
change, as such, carries on no deaHhsA III
butter or eggs.
In reference 10 the sources and extent OF
.pnnliAs of butter and eggs for the New
Work market. Mr.. Urner's statement said
that the quantity II butter coming into inc
,ysur York wholesale market yearly was ap-
croximately 100000 tubs, averaging about
eftv-eight pounds net and Of eggs approx
matelv 100000 cases, thirty dozen each'
THE hutter is produced in thousands OF IN
donenden+ creameries. scattered from the
Atlantic Coast 10 Nebraska, and on farms
q, ths Same territory. The eggs are pro-
1,,,ed nm farms from Texas north TO the
Canadian line and from Nebraska to the
Eastern coast. These are assembled by IN
terror storekeepers and larger merchants
and forwarded TO this and other oonsum-
ine centres. The statement aided;
IT will be evident TO any business man man
that in such vast market as TINS there
must be some means of expressing the
changing conditions Of trade and the pre-.
vailing selling values This nSea was 10. Irot
fessional market reporters' ana the pup
Hcation with which am connected IN tiis S
capacitN was established aooH, LeoS' con! Slu
hss since been continuously ploNsheo, con
taining Neyiews of the conditions OF the
rroduce markets and quotations tor va
tous kind' and qualities 6asen ut9E Cl'
smonc both receivers and buyers.
The use OF reliable market quotations IN
tbis usy is q great economy In distrtou-
tinn saving a, part Of the otherwise neces-
ssry NEGOTIATION, and often the Necessary
for personal attendance at the market .1.ae me
economy Of the use Of accredited markst
ntIotations lei To their adoption 10 cohslo.
cratle exteEt-not through any agreelneI,.
among sellers so TO do but solely throusaa
seller as a part of the normal Ltgotlauoh
~ price terms in specific sales. But sone
wears ago the members Of the eXcnauge
concluded that the determlnauon OF zis tLie
bssic nrices lrron which they were uading
as individuals should be made by a corh-
rnittee of the membership, as was me pIacs
tice In other trade centres, snd tms Wa
The origin of "official quotations which
were issued by the exchange TOT seVeral
years from 1903
=, .,tars+,o, of the difference between
nubushed quotations and the prices jobbers
had to sell at 10 get profit Mr.. Crner re-
viewed the suit, tried in 1907, in which the
exchange was enjoined from issuing quo
+ations which did not represent the value
of the products. commonly obtainaole' as
indicated by wholesale transactions from
frat hands" This led the exchange 10 give
up issuing official quotations for a time.
later effort to make them conform TO the
stated requirements being abandoned In
1909. Since then, he said, most OF the agree
ments to buy and sell individual lots OF
hutter and eggs at prices based upon quo
tstions had been left TO the published quo
tstions and reports from other markets.
Mr.. Urner's statement continues;
upon these quotations II Is solely through
negotiation between the individual seller
and buyer in each case or series OF cases.
There is no agreement whatever among the
members Of the New York Mercantile Ex-
change to abide by the quotations, or any
one of them, In the sale or purchase of
these commodities. There is no artificial
feature In the wholesale distribution trade
IN butter or eggs to prevent the free up
ward and downward movement OF market
values in accordance with the law of sup
ply and demand, or the free and fair eX-
preston of these fluctuations In the accred-
fted market reports.
The effect upon available supply of food
products at stated prices. due to the pres
iervaton Of surplus in cold storage or other
wise, and the importance and necessity of
this periodical accumulation and unloading
10 secure the maximum production of food,
ere subjects upon which there is much pop
nlar misapprehension and erroneous belief
II can be shown that in this phase of the
business Of food distribution-at least so
far as butter. cheese, eggs and country
produce are concerned-there is no combi-
nation. no concert of action among individ-
ual dealers. and only benefit to the public