I have lived near Malone since mid 1970's. Malone has a small 'House of History' here that is repository of much of the local historical records (along with the county courthouse - Franklin County, NY). I am sure that the House of History would love to see the photos your father found in 1960, as I would. Please post more!
Malone was very active in railroading in 1800's into mid 1900's, as well as the being the site of the Dutch Shultz (notable rumrunner of the 1930's)tax evasion trial - the trial was moved from Manhattan to Malone - Shultz was acquitted!!!

I'll have to show this to my ex-husband. He was Malone born and raised.

This site has a picture of what might be that block at Mabel and Daisy are standing on. You can see the power line pole with the cross bucks on it behind them. The names in the image are hard to read, but the text on that page says that M.E. Howard is a "subject". The page says 1910 for the year.

An utterly charming view. I love the clothing.

Little did they know 118 years later we would be smiling back at them!

Looks like the movie Pollyanna and they are going shoping for a store-bought dress - from a real store!!!

I was hoping this would happen when I posted this photo. Thanks to everyone for finding all this information. I looked up Daisy Lalime and it looks like she married someone with a last name of Swinston. I even found a picture of their daughter as an elderly woman.

I have found a notice in an old Malone newspaper called the Malone Palladium, you can find it online, announcing that Misses Daisy and Mabel LaLime of Malone spent the weekend at Hacketts Hotel as a guest of their sister Miss Jennie who works as a stenographer in the offices of the NNYRR the North New York Rail Road Company.
The article is dated May 20 1897
Their father appears to have been a Eusebe LaLime, possibly Canadian, and here's a link to a patent he took out regarding railway equipment. http://www.google.com/patents/US362221
From the Malone Farmer (newspaper) 1905:- Miss Jessie Beach, Miss Eva Ridge way,
Miss Mabel LaLime, Miss Ida MeKerraeher
and L. E. Sweet have entered C. E.
Costlow1s stenographic school, to take
courses in shorthand and typewriting.
Mabel married a Harold Laurence and was living in Malone on the 1940 Census and another sister Jennie married a James J McGrail and lived in Crafton, Pennsylvania.

Well where does one start? I agree totally with the sentiment expressed in the other comments. Makes one think it was just yesterday, superb natural photo.

I would say they look like sisters and yes, I would guess Daisy is the gal on the right.

I too, love this photo -- what a great story.

My great grandparents, Frank and May Montgomery, lived in Malone in 1897. My grandfather lived in Malone until 1917. My great uncle, Garth (who wrote the Chiquita Banana Song), was born in Malone in 1914. I'd love to see all the photos if possible, to see if anyone looks familiar!

I look forward to more images from the stack of old negatives your father saved from the trash heap.

Malone, New York, was also home to Almanzo Wilder, of Little House book fame. Laura Ingalls Wilder told her husband's story in "Farmer Boy."

Isn't it great to enjoy photographs such as this with people like you viewers!

I just love this photo!

Almost certainly an ad for "Sapolio", a popular hand soap of the day. Here's a link to a brief explanation.

It was a popular soap in the late 19th and early 20th century, and the magazine she's holding may contain an ad.

Nice Edison bulb in the shop window!

Could those phone-like items be visiting card cases?

Does anyone else see what seems to be the word "Polio" on that flyer/handout that the woman on the right is holding? On the paper, there seems to be an image of a man with a woman leaning toward him from the right. I can't read what's in the circle but just under the shadow of the holder's hand it sure looks like POLIO.

Village of Malone, Town of Malone, Franklin County. Pritnyar to Canada, this bucolic locale gave to Rutherford Hayes his vice-president and to the rest of us, the founder of Gibson guitars.

I know it's a tad disrepectful, but the one on the right looks like Stan Laurel in drag.

They look full of fun these two nicely dressed ladies captured on film. I wonder which is which; I plump for Daisy being on the right!

Nice iPhone cases they're carrying.

What a rare sight from this period compared to other Shorpy photos. I think their attire is lovely.