WOOL-BUYING PRACTICES

Press, Volume XCVII, Issue 28748, 20 November 1958, Page 15

WOOL-BUYING PRACTICES

Leaders Before Inquiry •Rec. 10 p.m.) SYDNEY, Nov. 19 A long list of questions will be put to 20 leading wool-buyers operating in Sydney, Brisbane. Newcastle, and Goulburn to find out to what extent the buyers have participated in “forward selling’’ and “pies” since 1955. Mr C. L. D. Meares, Q.C., tendering the list in the Industrial Commission today, said the buyers on the list bought 50 per cent, of the wool in the northern area of Australia. Arrangements had been made with the Auditor-General check answers to the questions against the buyers’ company records, said Mr Meares. He warned that if the answers were not satisfactory the buyers would be subpoenaed to give evidence before the inquiry. Mr Meares is assisting Mr Justice Cook in an inquiry into the wool industry. The inquiry is being held under the New South Wales Monopolies Act. and is investigating “forward selling.’’ “pies.” and a boycott on tht? Go'ulburn (New South Wales) sales by buyers. “Pies,” the inquiry has been told, are groups of buyers who band together at sales, and do not bid against one another, thereby allegedly restricting free woo] auctions. “Forward selling’’ is selling of wool in advance at lower than current rates, thereby allegedly depressing the market. The inquiry has been told that every Id per lb drop in wool prices lowers the Australian economy by £5.000.000. Today, Mr Meares said the answers to the questions, put to the buyers, should settle matters before the inquiry beyond argument. The hearing is unfinished.