WOOL SALES LIMIT

Hawera Star, Volume XLVI, 29 January 1927, Page 5

WOOL SALES LIMIT

OVERLOADING THE MARKET.

SOUTH AUCKLAND BUSINESS . REPLIES TO CRITICISIt. BY TELEGRAPH —SPECIAL TO THE STAR. WELLINGTON, Jan. 28... From two centres in the Dominion has come criticism of the New Zealand wool committee’s decisions regarding the maximum number of bales to be offered at the next sales. The question involves the important point of what supply the market will stand without a break in prices. Though it was suggested in a highly critical statement by the chairman of the Auckland Woolbrokers’ Association that the wool interests in Wellington were straining every nerve to attract business to that centre from South Auckland by a process of limiting Auckland’s allotment, an equally strong denial is given by Mr E. G. Anderson, chairman of the Wellington Wool-brokers’ Association, who, when questioned by your correspondent, declared: “It is hard to credit such statements as emanating from any person of responsibility in the wool trade in Auckland, by reason of the fact that it discloses lack of knowledge of the position. In the first place, the woo} committee is anything but ‘‘a. Wellington committee,’’ seeing that. its membership comprises William Perry (Masterton), sheep farmer, chairman; Messrs Bernard Tripp (Timaru), R. Lilburn (Wanganui), representing farming organisations, Messrs R. L. M. Kitto (Christchurch) and W. S. Bennett (Wellington), representing the New Zealand Wool-Brokers’ Association. It will be seen, therefore,. that only one member of the committee is interested in Wellington business. The suggestion that the refusal of the committee to increase Auckland’s limit has behind it an attempt to attract to Wellington business from the southern end of the Auckland province is very clearly opposed to actual facts. The next Wellington sale is fixed for February--17, but catalogues for that fixture closed at noon on January 13, when 3-2,000 bales were in store. To-day the quantity in Wellington stores is approximately 37,000 bales, which means that there is already a carry-over of 10,000 bales to the next sale in Wellington, to be held qn March 28. The limit for the February sale is 27,000 bales. The next sale in Auckland is fixed for February--21, and even though that quantity in store at present is in excess of the allotment of 20,000 bales, the fact of Auckland brokers having to carry forward a residue to their March sale could not possibly be an inducement to growers in the Auckland district to. send to Wellington, as it could not* be offered there until March 28; whereas the March sale in Auckland is fixed for the 17th. These facts clearly disprove that any inducement could be offered to growers in the Auckland district to favour Wellington as against Auckland.’’ RISKS f OF THE MARKET. Mr Anderson added that the chairman of the Auckland Wool-brokers’ Association is reported to have expressed the opinion that there is no danger of market interference in the event of the wool committee increasing the allocations. “From this, I must as I am strongly of the opinion that with the heavy quantities of crossbreds recently offered, we ran a great risk of prejudice to the market; and to in?. crease the quantities beyond those already allotted would be, to my mind, a,most reprehensible; proceeding on the part of the committee, such as would, in my opinion, be totally opposed to the interests of the wool-growers the conservation of which must be a primary consideration which should govern the decisions of the committee. It would certainly be little satisfaction to the wool-brokers to see any break in the market by reason of an overloading in the quantity brouglrfc forward, and, as I have already stated, should an increase in quantity be conceded, very grave risks would be run in that respect.’’ It is understood that a meeting of the New Zealand Wool Committee will be held in Wellington early next week.