WOOL CONSPIRACY

Grey River Argus, 5 February 1930, Page 5

WOOL CONSPIRACY

BY

FOREIGN BUYERS

To Exploit N.S.W. Growers (Aus. and N.Z. Cable Assn.) (Received February 4 at 9.55 p.m.) SYDNEY, February 4. The allegation is made in a Labour newspaper at Sydney that certain abuses arc prevalent at the wool auctions) here, the chief of which is 4 4 lot splitting,” under which a group of the foreign buyers meet before the sales to ascertain the aggregate amount of wool they require. Then, later, they parcel it out among themselves. When the buying commences, one representative of this group bids about threepence per pound below the price that the group is prepared to pay. Vociferous bidding then goes on, creating the impression that fierce competition exists; but then the bids jeach the level agreed upon, all of the bidders but one drop out. He secures the lot

It is also alleged that the Japanese Gove rnment has forbidden the Japanese buyers from bidding against one another The Federal Labour members of Parliament are unofficially investigating the matter in the hope of producing evidence that the wool growers are the victims of this exploitation. The representative of the growers have admitted to the Prime Minister, Mr J. H. Scullin, that 4 4 lot splitting ’ ’ goes on at the sales, but state that they are powerless to stop it. At to-day’s Sydney wool sales the offerings were 8421 bales, and 7897 were sold, along with 1374 bales sold privately. Continental buyers were again active, with good support from/ Yorkshire and the United States? Prices were firm, with a hardening tendency for superfine wools. Greasy merinos' fetched thirty-two pence.