LOT SPLITTING.

Poverty Bay Herald, Volume LII, Issue 17088, 17 July 1926, Page 11

LOT SPLITTING.

IN THE WOOL ROOMS

DANGER OF. COLLECTIVE BUYING

Considerable discussion among woolgrowers has followed a published .statement, that lot-splitting in the Australian wool auction rooms cost the woolgrowers millions of money this year. It can be said at once that, in the opinion of authorities, such an estimate is absurd.

Lot-splitting among the buyers is going on in Australia, and both brokers and growers have given a good deal of consideration to it. The difficulty is to decide what can be done about it. WORLD-WIDE PRACTICE. It is pointed out that lot-splitting is practised in every big auction market throughout the world.' The main thing is to see that the practice does not go too far. Some growers have talked of shipping their wool to London to escape the lot-splitting. Men.who know the London market, however, point out that lot-splitting is much more generally practised in that market, than in Australia. Mr. C. G. Waddell, president of the Graziers'' Association of New South Wales, told the last annual conference of the Graziers' Association that the London wool market really was in the hands of about, a dozen buyers. Others explained that a handful of buyers an London buy nine-tenths of the wool, and afterwards they split it up among hundreds of buyers. One of Australia's best-known buyers commenting on the comparative position, said that, "compared with London, lot-splitting is only beginning in Australia. The London buyers are past-masters in the art." ADVANTAGE WITH. AUSTRALIA.

Tt is also pointed out that the wool brokers place reserves on the wool thev submit to auction, and that it these reserves are not reached the wool is withdrawn. Australian markets have a further advantage over London, in that Japanese buyers operate here very strongly, whereas, they do not buy in London. As an example of this demand, it was stilted that the Japanese bought over 20,000 bales of wool at the last Brisbane sales. Men who have travelled extensively <f;He that the Australian wool auc- .;,,',,.. nt ,, ,],;. host organiser] in the

orld. In America, for instance, there re no public auctions of wool —the ~,,( I'l ■<•, is sold privately. It is admitted that lot-splitting in vu.-:tr:i!in has developed very consid- ,-;,.:■-,,' -■: the lasl few peasons. and -,.. rVelintr i>.inonrt growers is Mint it .:H. t\,r ;ii,i wry -■.eV'ous consideration j ;!>:•',- [(>! vvii,.t:i'iv("j acting in con--1 Miction with the selling brokers.