ALLEGED LOT SPLITTING.

Timaru Herald, Volume CXXV, Issue 18491, 5 February 1930, Page 9

ALLEGED LOT SPLITTING.

At Sydney Wool Sales. MATTER BEING INVESTIGATED. (United Press Association—By Electric Tel egraph —Copyright.) (Received February 4, 8.15 p.m.) SYDNEY, February 4. The allegation is made in the Labour newspaper in Sydney that certain abuses are prevalent at the wool auctions here, the chief of which is lot splitting, under which a group of foreign buyers meet before ths sales to ascertain the aggregate amount of wool they require, and then later parcel it out among themselves. When buying commences, one representative of this group bids about 3d a pound below the price the group is prepared to pay, and vociferous bidding goes on, creating the impression that fierce competition exists, but when the bids reach the level agreed upon, all bidders but one drop out, and he secures the lot.

It is also alleged that the Japanese Government has forbidden Japanese buyers bidding against one another. Federal Labour Parliamentarians are unofficially investigating the matter in the hope of producing evidence that growers are the victims of exploitation. Representatives of growers have admitted to the Prime Minister (Mr J. H. Scullin) that lot splitting goes on at the sales, but they are powerless to stop it.