l%6 THE BUTTER INDUSTRY IN UNITED STATES [410 



the quotations were based on actual sales. The significance 

 of this table is more readily seen when the monthly aver- 

 ages for the first period and those of the second period are 

 charted. This is done in diagram III. 



It is seen that the averages of the monthly variations of 

 the Elgin prices from the New York prices during the 

 period from 1893 to 1898 are much lower on the whole 

 than they are for the period from 1903 to 191 1. This fact 

 is of course in agreement with the results shown in dia- 

 gram II. While the prices during the period from 1903 to 

 191 1 were on the whole considerably above the New York 

 prices, the course of the prices throughout the year is the 

 opposite from the course of the prices during the period 

 from 1893 to I ^>9^>- I n the first period prices were com- 

 paratively high in the summer, while in the second period 

 they were low in the summer and comparatively high in the 

 winter. The time for storing butter is during the months 

 of May, June, and July, and sometimes as late as August. 

 It is during these months that the level of the Elgin prices 

 as compared with the New York prices falls in the latter 

 period. The charge therefore that the Elgin quotation 

 committee was dominated by the large centralizers and that 

 they depressed prices in the summer months in order that 

 they might buy butter and butter fat on a comparatively 

 low basis and sell it in the fall and winter at a higher price, 

 seems to be verified by the results of this comparison. 



WHOLESALE AND RETAIL PRICES COMPARED 



It is a familiar fact that wholesale prices fluctuate more 

 widely than retail prices. Diagram IV. shows the course of 

 retail and wholesale prices of butter in New York City. 



The two price levels show rather close correspondence. 

 There are of course some pronounced exceptions, the most 

 notable being the drop in the wholesale price in February, 



