WOOL SALES.

Hawke's Bay Tribune, Volume I, Issue 274, 8 November 1911, Page 3

WOOL SALES.

TROUBLE AT WELLINGTON

CVLRSEAS BUYER.) M ETiIDRAW.

AVellingicn, Nov. 7.

Trouble arose at the opening of the first New Zealand local wool s.a.e of t!.c season at the Town Hail today v.ith the evi-nscas buyers. B" i<<ie tl:e salts began tin. re was :;n umasy I'cOing that biiyrs woi-id express in forimle luma thiir objection to the brokers’ insist cnee <_ n .he ••cash on delivery” rule, which appears in the inmlitions i.t sal". Before the sale In gnu (upem d by Mr. H. A. Keeling for Messrs Abi.tliaiii and Williams) Air. \\ alti r Hui. chairman of the WoolLuy ci s' .is-n- j- ■ •i.;:timi. asked if clause 2 <>f the co.i- ■ iitions of sale was going to be i:itei peered as it h;-.:l been tor (he last 20 year-. Mi. Keeling said Mr. Wate: iioi’.se, the chairman of theWillington Brokers’ Assoemtica. wouLl answer that question. Air. Watt rhoe.se : No.

Tin- buyers then rose from their seats and left the rcom headed by Air. Hili. Buying thin proceeded, tiling eoniini d to New Zealand buyers. Air. Hill, seen l.y n •'Best” representative. said the buyers were of opiiiinn that the conditions of sale were sultieiciitly one-sided even widi the previous inti rpretal io.t of tiic clause in dispute, and to submit to further restrictions would mean an increase in expens, s wi,hoi:t any eoi i i sponding advantage and great diffieultii s in what is now the most expensive and difficult market to operate. The clause in dispute hr.il been in the conditions of sale since the inception of auction sales in New Zealand, but by reason of inadequate facilities for handling wo >1 it iiad ba n mopi rativ e, and the practice had been for selling brokers to deliver wool to the shipping agents on the buyers' instructions and before pnyim nt conditionally on the shipping agents holding the wool to the brokets' orders until paid for ami tl'.e bc.ycrs giving a litter of indemnity. Tais arrange meat had wv.rke<l smoothly for over twenty years, and in on.y one instance d.d n .buyi r become a defaidter. The krcki rs do not say how long ticbuyers should allow for delivery afti r pay ini nt, i;or do they state that it is beyond thiir powers to render correct invoices and ‘■pecifications until several days afii. r the f>.ale, but in tr.ce cf this fart the buyi rs are expected t<> pay i.n estimated pro f„rina invoices. The arokers said they were taking grave risks in the methods hitherto adopted for facilitating delivery.

but they have never loss ccntiu! of the wool. It was as reasonable fin- the buyers to say that they were asking them to take grave risks in trusting the brokers with thousands of pounds when it is an ackncwledg-e-,1 fact that deiivery cannot be given prcinptly and would take at least six days probably ten, before deliver:! would be completed. A\ ith regird to covering the wool by inrtirni:ec, the buyers would agree to take the li.-k fioin (he broker’s store otic the appointment of a third party (shipowner or .agent) to receive, hold and insure the wool from the i.ime of leaving the store until paid for. Further the buyers would agree t:> read clause 2 literally and comply with it if the brokers would rebate Interest equal to the bank chargfor an overdraft for the p< tied between payment and expiry _ol prompt, which is ttie method adopted in tlie Commonwealth. Conferences had been held i n this matter.

said Air. Hill. b;;t tiiiy had proval abortive. Tl’.e clause in question was an workable.

Mr. A. E. Mubin. Chairman of the Associated V. oolbrokers’ Association of New Zealand, when seen by a representative of the ’’Post. ’ explained that the brokers of New Zealand e.skt’d for cash before delivery for wools s'.liL which was in accordance with the conditions of sale, and was also a universal practice in the trad '. The ride lias only been partially observed in New Zealand in the past, lie added. The spccitlalor, fellmo.ig* r and hx-aF <>p•■rat'ir have had to rigidly comply by putting tip their cash before getting their wo->), fiat th*' English anil overseas buyers have been allowed to remove or ship their wool before payment, so that they could obtain bills of lading for the wool contemporaneously with the paying for it. This system has obviously an element of risk about it, and is one that has always caused brokers grave anxiety, whilst it may have served its purpose when the wool trade was young and the interests comparatively small. Now that the trade lias grown to large dimensions some other anil more businesslike method of protecting the interests of the selling brokers and the vendors must be adopted. Th' old system s.'iiti'd the buyers and provided an method for ftnanc”. as it saved them some interest outlay: but they mipf i *-■.ozms? sooner or later that tlm system has to go. ar.l woolbrokers are determined to end it mr.v. It is mmh to be regretted tiiat the (.vpr-.e.is buyers objected: l-iit tie:- woolbrokers, by giving ample notice— for the buyers were ad-| vised last season of the proposed strict adherence to th*- terms cash i.oi’or*’ delivery—have done their part, ami surely as sellers of goods they are entitled to a=k for payment before giving delivery.

RANGE OF PRICES. The catalogues at to-day’s wool sales were small, consequently they .vcre (].:’* klv disposed of. Prices were *>n a parity with London September sales, but I<l to I l.d lower than November local sale last year. The rangi* of prices was :- Halfbred : Medium !•> good ‘-.yl to tfyl. inferior 7d to s d. Fin* crossbred: medium to good s(( to tt.lil. inferior fi.ld to 7"*|. Medium crussbr. d : Stipe;- "bi to 9d. medium to good 7yl to "pl. inferior t’d to <d. C oarse crossbred : Medium to good 7d to 7.*1. interior ‘ ; d to tipi. Pie<es: Medium to good s*l to fid. inferior .3yl to ltd. Bellies: Medium to good tpl to ">pl. inferior 3td to -Id. Locks: Inferior l.‘.d to 3d.

POSTPONEMENT OE NAPIER SALES.

For the same reason which led to die withdrawal cf the overseas buyers from tlie Wellington sale yesterday the Napier brokers have decided to postpone the sah- fixed for Thursday. 9th inst.. to M ednesday, November 2!)iii. Fiom enquiries

made we learn that it is the part of tlie clause relating to the payment for purchase-: before delivery which has occasioned the difiietdiv. In view of the constantly expanding character of the local sales, and of the heavy financial risks inciirred by brokers, the New Zealand Bro kers’ Association, with which all selling brokers in New Zealand are affiliated, have. as stated in the Wellington telegiam, decided that in the interests of growers this condition should bo strictly enforced. As the brokers are acting as trustees for the growers no doubt the latter will cordially support them in their endeavoms to safeguard their interests and to conduct the sales on a sound commercial basis and one which shoul I be equally satisfactory to buyers and sellers. The opinion is expressed, lit members of the local Brokers’ Association, that an eirly satisfactory, settlement of th? difficulty may lie anticipated. It is to be hoped that in the interests of growers, tlie postponement of th? sale will mean better prices for them