WOOL SELLING IN AUSTRALIA

Press, Volume XCVII, Issue 28742, 13 November 1958, Page 19

WOOL SELLING IN AUSTRALIA

Unfair Practices Alleged

(N.Z. Press Association—Copyright) SYDNEY, Nov. 12.

Woolbuyers had organised two systems which had cost individual graziers “hundieds and hundreds of pounds,” C. L. D. Meares. Queen’s Counsel, has told an inquiry. The inquiry, being held under the New South Wales Monopolies Act, is into an alleged boycott of wool sales at Goulburn. 138 miles south-west of Sydney by buyers. Mr Meares, who is assisting the inquiry, said the two systems were known as forward selling and lot splitting. Under the forward selling system. buyers in recent years had developed the practice of selling wool to mills in advance at cheaper rates than those operating currently. They did this to get trade, but because of competition, the system depressed current prices, he said. Mr Meares said estimates of wool sold in this way were more than 50 per cent, of the total wool sold in New South Wales. In lot splitting, Mr Meares said, buyers formed themselves into what they called “pics.” The pies were, in effect, cartels or combines. $

Under the pie system, one man bought for a group. This meant members did not bid against each other and kept the price down. “It is of vital public interest that there must be free auctions, but this is not so where lot splitting goes on.” Mr Meares said. The inquiry will continue today.

AUSTRALIAN WOOL SALES (N.Z. Press Association—Copyright) SYDNEY. Nov. 12. The Sydney Woolselling Brokers’ Association reported a clearance of 16,463 of the 16.689 bales offered at today’s wool sale. Competition was strong from Japan and Britain, and there was a noticeable increase in Continental and Australian support. Values for Merino fleece and skirtings compared with yesterday’s were fully firm. Comebacks and crossbreds also remained fully firm under strong sustained demand.

Crossbred prices were: good 60s, 66d; good average 58’s, 55}d.