DISPUTE IN THE SHEEPSKIN

Otago Daily Times, Issue 12639, 17 April 1903, Page 4

DISPUTE IN THE SHEEPSKIN

MARKET. For some time back there has been friction in the sheepskin market between the Dunedin Skin Buyers' Association anid the Wool Brokers' Association rdlative to the delivery charge of 2£ per cent, charged to the buyers on all sheepskins purchased at the auction sales. It is stated that tho brokers had been in the habit of baling up the skins purchased by somo of *the export buyers free of charge. Some of tho fellmongering firms objected to this concession being made, arguing that all buyers ought to bo placed on an equal footing. Owing to these representations the brokers imposed a charge of 2s for baling, whereupon the aggrieved buyers asked that tho delivery, charge be ■taken off. This the brokers would not concede, anil consequently a deadlock has ensued, a number of the buyers having sincc refrained from attending the auction sales. Following is the case from the buyers' point of view, as stated by Mr G. B. Story, the secretary of the Skin Buyers' Association, the chairman of 'the association, Mr T. O. Price, being at present absent from ■the colony:— . .• "For » long time, past tho Blioepskin buyers who form the Duuodin Skin Buyers' Association have felt ftgyriwed at.b?ing corn-

| polled to pay o delivery oharge of per cent, on sheepskins purchasod at public 1 auction imposed by tho Wool Brokers ' Association. This charge ccrlainiy includes cartage to the buyer'" siorev but buyers generally do their own carting, and are allowed a rebate of Is nor 100 skins off tho 2i per cent, charge. Thus, on 100 skine at 33 each buyers have to pay 7s 6d dolivery, or 6» 6d if they do their own cartage. " Buyers consider that when they buy skins at auction'they should he at liberty to tako them away without beinf liubjcot to any charge whatever, and argue that they should be placed on tho same footing as any purchaser in a shop who buya his sugar, tea, meat, drapery, etc., and takes them away; and that a grocer of baker or butcher, would he considered guilty of imposition who would say to his customers, ,r Ycs, you have bought and paid . for those goods, but you must pay mo 2£ per cent, beforo I will deliver them to you." The Buyers' Aasoeiation demand that they shall be nlacod on the same footing as buyers at Chrfstchurch and other large centres, whero no delivery charge whatever is made.

" Tho Buyers' Association held a mocting on March 10, and decided to request the selling brokers to remit tlm chargo of 2£ per cent., and nut their request in writing, and received a reply, dated March 16, from tho chairman of *110 Wool Brokers' Association stating that at a meeting of that Association it was unanimously decided that no alteration he made.

"This was considered at a meeting of tho Skill Buyers' Asrociation, held on March 17, when the buyern unanimously decided not to reccdo from the posi'lion taken up, and it was unanimously agreed that members would not attend at the pales for tho purpose of buying unless tho obnoxious oharge was removed, and notico to that effect was sent to the selling brokers. The result is that, almost without exception, the regular large buyers have not attended the sales, which have been dragging and depressed.

"The Buyers' Association believe that all couritry cliento ore Suffering heavy losses through the brokers selling with such reduced competition. Representatives from the buyers having carefully valued the catalogues previous to encli sale, report, that the skins sold at auction realised an average of 20 to 30 per ecnt. below their valuation. This would mean to a large butcher or dealer with 100 worth of fkins about £25 loss, The Buyers' Association anticipate that country clients will refuse to allow brokers to sell with the limited competition, and trust they will bring pressure to bear on them to accede to the buyers' reasonable request, or, failing tliio. that country clients will soil their skins privately. The Buyers' Association have had placed before them a proposal for establishing another auctioneering firm, who will sell free of delivery charge, and who would have tho buyers' whole support, ensuring high prices ,to sellers."

This statement having been shown to tho chairman of the Wool Brokers' Association, lie volunteered the following information: —

"This delivery charge of 2| per cent, has been in force for the liast 30 years, and oven were it so desired it would be a matter of difficulty to interfere with siioli a longestablished custom. Tho expense of handling tho skins his to be met from some direction. At presont the vendors pay 2£ per ccnt. and the buyers 2£ per cent., and were the delivery chargo abolishod tho full 5 per cent, would have to be charged to tho vendor. The Wont Brokers' Association, after carefully considering tho matter, came to the conclusion that to abolish the delivery charge would seriously disarrange the progress of trade. _ That is to say, that it would be a more difficult matter to educate the large number of vendors up to tho new order of things than to bring the aggrieved buyers into line again. "It is a comparatively easy matter for buyers to allow for delivery charges, as skins are sold at so much apiece, and 'thus it hecomes a very easy calculation.

"While it is quite true that in Christchurch no delivery charge is made, yet the trade custom varies in the different centres. In Melbourne, for instance, there is a. delivery charge of id per lb. There is no recognised custom in the trade either in this colony or ; n Australia. In Sydney, we understand that quite a different custom obtains, and tho whole matter is one of purely local arrangement. " Since a scction of 'tho buyers combined to abstain from buying, only four auction sales have been held. While it is quite probable that owing to Icsoenod competition prices have been to some extent in favour of those who remained in the market, yet •thero have several secPEßions from tho ranks of the Skin Buyers' Association, and ithe brokers arc of opinion that tho combination will shortly bccomo co weakened that the organised opposition to the delivery oharges will fizzle out, and trade will resume its TOual course." Independent inquiries elicited the fact that recently two of the leading'fellmongering firms had recommenced attendance at the auction salefi, <in,d that those stijl holding .out aro mainly firms who buy for export,"