!68 THE BUTTER INDUSTRY IN UNITED STATES [392 



which are intended to be used in any way as a basis for 

 the making of quotations of prices on said Elgin Board of 

 Trade 'V 



A very important function that the organized market 

 serves is the regulation of the trade. By parliamentary 

 methods it can establish grades and compel their adoption 

 in trading under the " call " and in connection with the quo- 

 tation of prices. This feature, as was seen in the previous 

 chapter, is fundamental in establishing a market price for 

 the various qualities of butter. The exchange rules in many 

 cases are in the nature of a code of ethics that are made 

 binding upon all the members of the exchange. Of this 

 nature are the rules on inspection. When butter is sold 

 either party may ask for an official inspection. This hap- 

 pens when the purchaser contends that the lot tendered is 

 not of the grade sold him ; or it may happen when there is 

 doubt by both parties as to the grade, and the owner of the 

 butter being anxious to effect a sale may ask for an official 

 inspection. According to the rules of the New York Mer- 

 cantile Exchange, the party ordering the inspection pays for 

 it. But in many cases, presumably by mutual agreement, 

 the party whose contention as to the quality of the butter 

 fails to be supported by the result of the inspection pays 

 the fee. The amount of the inspection fee ranges from 

 $0.75 for 25 tubs to $2.50 for 500 tubs. The fees are paid 

 into the treasury and form, next to dues of members, the 

 most important source of revenue of the organized market. 

 Immediately after the inspection a certificate is filled out 

 and given to the party ordering the inspection. For this 

 purpose the following form is used : 



1 Decree entered April 27, 1914, in the District Court of the United 

 States for the Northern District of Illinois, Eastern Division. 



