395] PRESENT ORGANIZATION OF BUTTER MARKET iyi 



the official price quotations of the Board. 1 Upon the comple- 

 tion of their task these quotations were immediately wired 

 to all butter markets of the country. It is claimed that 

 this course was necessary because the " contract system " 

 of trading had become common and decreased the amount 

 of trading under the " call " of the Board to such an extent 

 that these sales no longer reflected the true market price of 

 butter. Too wide variations in prices at the sales under the 

 " call " made it desirable to charge a committee with the 

 task of harmonizing these, with the injunction that they 

 were expected to take into account factors of supply and 

 demand. In 1903, similar quotation committees charged 

 with the duty of establishing prices for butter, eggs, and 

 cheese were organized by the New York Mercantile Ex- 

 change. The Chicago Butter and Egg Board and the Bos- 

 ton Chamber of Commerce followed the same plan. In 

 the New York Mercantile Exchange these committees 

 quoted official prices until 1907, when the Supreme Court 

 restrained them. After this the committees were reorgan- 

 ized to comply with the order of the court that no quota- 

 tions be made except those based on actual sales. But owing 

 to a quarrel among members representing different inter- 

 ests on the Exchange the quotation of prices by committees 

 was discontinued, and " the work was taken up by trained 

 reporters, and from that time to the close of the year these 

 men reflected in their daily quotations, [as they have prob- 

 ably ever since], more nearly the actual wholesale selling 

 prices than had been given for some years previously ". 2 

 The Elgin Board of Trade, in accordance with a decree 

 entered by the United States Government in the District 

 Court of Northern Illinois, Eastern Division, was enjoined 

 April 27, 1 9 14, not only from quoting prices except those 



1 The Annual Report of the Elgin Board of Trade for 1911. 

 3 Report of New York Chamber of Commerce for 1907, p. 49. 



