PAYMENTS FOR WOOL

Otago Daily Times, Issue 26776, 20 May 1948, Page 6

PAYMENTS FOR WOOL

Sir,—At last, after a delay of 29 days, the Dunedin Stock Agents and Woolbrokers Association has decided to inform its clients that they are going to be paid for the wool sold at the last sale; but not for another 10 days, making a total of 39 days. The statement printed in Saturday’s Daily Times is sufficient to arouse curiosity, but that is all. What I would like to know is the cause of this, from the clients' point of view, disgraceful state of affairs. The same thing happened after the last sale last year. At aU previous sales this year, the ‘ prompt payment ” was prompt. It is a well-known fact that all stock firms charge 5 per cent, on all outstanding accounts, yet they hold back this payment, which will run into thousands of pounds in some cases, for almost six weeks without any apparent, reason and no explanation. It appears to me, sir, that the firms have already been paid for this wool as in previous sales, and are deliberately holding back the payment to extract more interest from their “ tied ” clients. , It is also weU-known that stock firms shares are rising by leaps and bounds. One firm's shares have risen from » £l2 odd in the last four years, a rise of £1 a year, and needless to say ' 3 dividend in proportion. I should be pleased if you have space to publish a full statement from the Dunedin Stock and Woolbrokers’ Association giving the reasons, if any. for this delay.—l^m^^etc., [The secretary of the association replies: " The decision to alter the usual rule for fixing “prompt” date is not made by the Dunedin Stock Agents and Woolbrokers' Association but is decided jointly by that association and the New_ Zealand Wool Disposal Commission, the Ncw Zealand Wool Buyers’ Associafion, and the Overseas Ship Owners Allotment C■ n* mittee. It was necessary to extend prompt" date for the April sale because of the difficulty in obtaining shipping SDace and was requested by the wool Buyers' Association. The difficulty with shipping has resulted in prompt date being extended in all the ot b e J w 0 ” 1 ® nrf ing centres of New Zealand this seas n. " There is definitely no question of brokers holding back payment, as they are not able to pay their clients until the wool buyers pay for the wool on “ prompt ” date. We assure Grower that the Dunedin Stock Agents’ and Woolbrokers’ Association is very much against any extension of “ prompt ’ date. t) U t the circumstances are outside its control. Ed., O.D.T.]