MILK PRICES 219 



Figure 20 compares the San Francisco and Portland 

 (Ore.) prices with the ten cities average. In both of these 

 cities the producers have apparently lost ground slightly 

 in the upward price movement. Both started in 1913 some- 

 what above the ten cities average, and both fell somewhat 

 below it in the latter part of the period. 



Can milk producers' associations influence milk prices? 

 Temporarily they can undoubtedly do so. At least they 

 have repeatedly done it. In the Chicago district in the 

 spring of 1916, for example, the Chicago Milk Producers' 

 Association was directly responsible for securing an in- 

 crease of 22 cents per 100 pounds for the summer months. 

 Similarly the Dairymen's League in the New York district 

 secured a material advance in October and November 

 of the same year. Undoubtedly such associations can be 

 of tremendous service to the members in bringing about 

 better prices at unfavorable times, particularly if suffi- 

 ciently fortified with adequate and reliable data with 

 which to justify their claims before consumers. On the 

 other hand, how far can they go ? The answer will depend 

 upon the accuracy with which the producers have judged 

 conditions of supply and demand in deciding upon the 

 price they are going to ask. If, as a result of thorough 

 organization, they succeed in securing too high a price, 

 a surplus will result either from increased quantities of 

 milk seeking the market for any of the reasons above 

 given, or from a reduced demand. This would be true 

 even though the milk producers all over the United States 

 were thoroughly organized, for it must be remembered 

 that there are in any large milk territory enough men who 

 can turn to the production and sale of milk to cause a 

 serious surplus should prices go too high. Many specific 

 instances might be mentioned where cities whose prices 



