Most states have laws which determine the legal standard of milk. Any one selling milk which does not meet this standard is liable to be fined. The laws of most states prohibit the taking of anything from the milk or the adding of anything to it. This prohibits the skimming and watering. Skimmed-milk must be sold as such.
328. Marketing of cheese.—There are many different methods[138] of selling cheese. Each is adapted to certain conditions and each has its advantages and disadvantages. In cheese sections, the customary method of selling is on the board of trade, which is the meeting of the cheese-buyers and factory salesmen. They meet at a given place at a certain day and hour each week. Every board has its officers. There are different ways in which a board of trade may be operated. In some cases there is a large blackboard divided into columns. In the first column, the salesman writes the name of the factory and the number and kind of cheese offered for sale. At the top of the other columns are the names of the different cheese-buyers. The president usually opens the sale at a stated time and asks that all cheese be placed on the blackboard. When this is done he states that they are ready to receive bids on the cheese. The buyers then write the price a pound they wish to pay opposite each lot of cheese and in the column headed by their names. After all the bids have been received and placed on the board, the presiding officer states that a certain length of time, usually fifteen minutes, will be given the salesman to withdraw his cheese if he does not think a high enough price has been offered; this is indicated by the salesman stepping to the blackboard and erasing the factory name and number of boxes. At the close of the stated time, the presiding officer declares the cheese offered on the board sold to the highest bidder. The purchaser then gives the salesman directions for shipping.
Sometimes a board of trade has a committee of one member elected by the factory salesmen and one elected by the cheese-buyers. These two members elect a third and these three constitute the price committee. This committee meets each week and determines what the price shall be. This is known as the ruling. The factory salesmen and cheese-buyers then try to make private sales. By this method no one, except the persons concerned, knows exactly what price is paid for the cheese. Usually, a price above the ruling is paid.
At Quebec, Canada, there is a cheese-selling organization with government assistance. On paying a certain fee, any cheese factory may join. All the factories belonging to the organization ship their cheese to a central cold storage where the cheeses are examined and graded by a government inspector. A cheese from each vat is tried. These cheeses are separated into white and colored lots, then graded according to quality. When the total number of cheeses in each lot is known, the lots are sold at auction. The purchaser must accept the cheese as graded. The better grades of cheese bring about the same price as on the market, but the advantage lies in the selling of the lower grades. Ordinarily, the purchaser takes advantage of the salesman when the cheeses are undergrade. The success of this plan depends on the accuracy of the person grading the cheese. This method seems to be growing in popularity, because the cheese-buyer can purchase large amounts of cheese at one time and be sure of the quality. A small fee, about one-twelfth of a cent a pound, is charged for handling the cheese. Similar organizations are in operation in Wisconsin. The boards of trade and selling organizations deal almost entirely in Cheddar cheese.
329. Mercantile exchanges.—In the larger cities are exchanges where cheese is bought and sold by jobbers. This cheese is mostly Cheddar. The prices paid these jobbers tend to fix the daily price of cheese. These prices are published daily, for example, in New York Price Current. Some factories ship their cheese directly to these jobbers. The following are the cheese rules of the New York Mercantile Exchange adopted May 4, 1915:
CHEESE RULES OF THE NEW YORK MERCANTILE EXCHANGE
Rule 1. At the first regular meeting of the Executive Committee in each year, the President shall appoint, subject to the approval of the Executive Committee, a Cheese Committee to consist of seven members of the Exchange, who are known as members of the cheese trade, to hold office until their successors are appointed. It shall be the duty of the Cheese Committee to formulate such rules and regulations as may be necessary for the government of transactions between members of the Exchange, and to revise the same as circumstances may require. Such rules and revisions shall be subject to the approval of the Executive Committee.
Rule 2. All transactions in cheese between members of the Exchange shall be governed by the following rules, but nothing therein shall be construed as interfering, in any way, with the rights of members to make such special contracts or conditions as they may desire.
Rule 3. If a sale is made from dock, or platform, or to arrive, the buyer shall assume the same relations toward the transportation line by which the cheese arrives, as the seller previously held as regards its removal from the place of delivery within the time granted by such lines for that purpose. Transactions between members of this Exchange shall be governed as follows: Any member negotiating for any lot of cheese belonging to another member, the price having been agreed upon, shall examine such lot of cheese within twenty-four (24) hours after such negotiation takes place. Failure to examine within said time releases the seller from any obligations to make delivery thereafter, if he so wishes.
Rule 4. In the absence of special agreement, all cheese purchased "in store" shall be understood as being ready and designed for immediate delivery, but the buyer shall have twenty-four hours in which to have the cheese inspected, and weight tested, and shall not be liable for the storage and insurance, if removed within two days.