CHAPTER VI 



History and Development of the Organization of 

 the Butter Market 



early conditions 



In the Vermont Agricultural Report for 1872 l there is 

 an unique account of a corner in butter that affected the Bos- 

 ton market. It runs as follows : 



In 1856 B. F. Rugg . . . undertook to carry out a plan for 

 controlling the Boston butter market ... to keep back a large 

 quantity of it has the effect to advance the price. This Mr. 

 R. well understood ... he made his arrangements at the vari- 

 ous banks in the county 2 for an unlimited supply of means of 

 credit. He began buying toward the last of June when butter 

 was low, and quietly stored it away in cellars. This he con- 

 tinued to do through July and August, sending to market only 

 a small supply from week to week. 



Before August was past in consequence of keeping this 

 large amount out of the market, butter began to advance in 

 price. Mr. Rugg continued to buy and when he could buy no 

 more, advised the farmers that still had butter to hold on for 

 higher prices. This they were only too willing to do on a ris- 

 ing market, and their prices became so extravagant that buyers 

 cuuld not buy. Now he had them. Boston had to submit to 

 St. Albans. 3 The profits of this little speculation amounted to 

 the snug little sum of $18,000; so says the gentleman himself 

 and nobody doubts it. 



1 P. 161. 



2 Franklin County, Vermont. 



3 The county-seat of Franklin County, Vermont. 



363] 139 



