PROCEDURE CHANGE

Gisborne Herald, Volume LXXIV, Issue 22447, 30 September 1947, Page 4

PROCEDURE CHANGE

J.O. RESERVE PRICE 1947-48 WOOL AUCTIONS ALTERATION EXPLAINED The reserve price procedure for New Zealand has been altered this year to conform with that adopted in the United Kingdom, Australia and Simth Africa, according to an advice received by the New Zealand Wool Board from the New Zealand Wood Disposal Commission. From the opening wool sale for this season held on September 25, 1947, at Wellington the joint organisation reserve price valuations on wool to ne offered at auction will not be handed to brokers. The Joint Organisation representative at auction sales will, where necessary, bid the reserve prices at the sale.

Wool growers, through their brokers, may place their own reserves on any lots, and if they fail to effect a sale, they may sell such lots at the Joint Organisation reserve prices, during the option period mentioned below. , Growers may secure from their brokers advice regarding market valuations of their wool in accordance with the pre-war practice. Passed-in Lots Where a grower places his own reserve on a lot at a price higher than the J.O. reserve and there is no bid by a commercial buyer at or in excess of the J.O. reserve, the lot is passed to J.O. at the J.O. reserve. The grower through his broker can endeavour to effect a sale to a commercial buyer and if he is not successful he can sell to J.O. at the J.O. reserve price during the option period from the conclusion of the sale of the last catalogue until 4 p.m. on the second day following the sale. . A further provision is that where a grower places his own reserve on a lot at a price higher than the J.O. reserve and the price bid equals or exceeds the J.O. reserve but is less than the grower’s own reserve, the lot is passed to the commercial buyer who made the bid and the grower has then the right 'to sell the lot to J.O. at the J.O. reserve price if he cannot effect a sale to a commercial buyer. In this case the time limit is the same as set out in the previous paragraph. , , Following is an example of the working of this provision; If a grower placed his own reserve of say, I6d on his wool, and the J.O.’s reserve is l4d and the price bid is 15d, the grower in such case does not sell to a commercial buyer at a price between 14d and lod he can sell to J.O. at the J.O. reserve price, 14d. within the option period; i.e. from the conclusion of the sale of the last catalogue until 4 p.m. on the second day following the sale.