FIRST WOOL SALES.

Dominion, Volume 5, Issue 1280, 8 November 1911, Page 5

FIRST WOOL SALES.

SEASON 1910-11. STRIKE OF OVERSEA BUYERS. CLASH OVER A CLAUSE. THE CUSTOM OF TWENTY YEARS. The wool buyers for foreign houses withdrew from the sales yesterday, leaving only the local buyers to do the bidding. Tho trouble arose over the interpretation of Clause 2 of the Conditions of Sale, which reads as follows: — "The goods to bo weighed by the warehouse-keeper, taken away within fourteen days, including Sundays and holidays, at t'iie buyer's expense, and to be paid lor in cash before delivery. Such payments' to be made before 2 p.tn. on prompt day." In the past the interpretation of this clause has been rather elastic so far as tho oversea buyers were concerned, for they liavo been allowed to lift the wool (presumably for the cenvenieuce ot tho brokers and shipowners) before prompt day and, as the chairman of the Wellington Woolbrokers' Association says, wool has been delivered out of brokers' stores, taken into the Harbour Board sheds for dumping, placed on board the carrying steamer and, in some cases, tho steamer has departed from Wellington before the wool has been paid for. The local buyers receive no such favourable treatment, but have to pay before delivery. The system is beyond defence, but some sort of a custom has grown up which, sooner or later, had to be abolished, and the brokers have apparently decided to make a stand now. Obtaining delivery before payment no doubt enabled the oversea buyers to arrange their finances with very little trouble and, probably, sorao savings wore effected in interest, but nevertheless, the custom is indefensible, because there ia an element of risk in it to the brokers. The buyers, on the other hand, claim to have good reasons for the stand which they have taken. Hitherto, because of inadequate facilities for handling wool, tho clause referred to above has beon inoperative, and the practice had been for selling brokers to deliver wool to t'he shipping agents on buj-ers' instructions and before payment, conditionally on shipping agents holding the wool to brokers' orders until paid for, and buyers giving a letter of indemnity. This arrangement had worked smoothly for over twenty years, and in only one instance did a buyer become a defaulter. Mr. Hill, the chairman of the Woolbuyers' Association, in referring to tho matter, remarked that brokers said they wero taking grave risks in the methods hitherto adopted for facilitating deliverv, but they linvo never lost control of the wool. It was as reasonable for buyers to say that they were asked to take grave risks in trusting brokers with thousands of pounds when it is - an .acknowledged fact that delivery cannot be given promptly and would take at least six days—probably ten—before deliveries would bo complete. According to Mr. Hill buyers would agree to read Clause 2 literally and comply with it if brokers would rebate interest equal to bank charge for overdraft for the period between payment and expiry of prompt', which is the method adopted in the Commonwealth. 'he outsider the trouble looks very much liko a "storm in a tea-cup," but apparently the buyers and brokers t'hink differently, for conferences have so far mu to I)ri " s aljout a settlement. The withdrawal of the buyers yesterday was somewhat dramatic. As soon as Mr Keeling, auctioneer for Abraham and 'Villiams, Ltd., who were the first of the selling brokers, mounted the rostrum, ho was asked by Mr. Walter Hill i Y lau . 50 2 of the Conditions of Sale was to be interpreted as it' had been for the past twenty years. The question was reterrcd to Mr. 11. W. Waterhouso (New f i? Lonfi and Mercantile), chairman of the Wellington Woolbrokers' Association, who promptly answered in tho negative. Upon this answer the oversea buyers, headed by their chairman, immediately left the room. Levin and Co. r . Ltd, Messrs. Levin and Co. report:—The first sale of tho season was field yesterday, when lO.jO bales were olTered by the associated brokers-our offering being 250 bales. Tho condition of the clips was somewhat similar to that of last year, though heavier than ordinarilv, and the wool not too well grown. At the opening of the sale there was a good attendance of buyers from all parts, the United Kingdom, Europe, United States, and New Zealand being well represented, but the oversea buyers withdrew owing to objections raised by them to tho enforcement of terms "cash before deliverv." I he sale was supported, however, by "local operators and non-members of the Buyers' Association, who operated freely at prices which were fully equal to tho London equivalent, and the sale did not appear to suffer from any lack of competition. As was to be expected, owing to t'he low rango of prices now current in London and the uncertain outlook, prices showed a fall of l£d. to IJd., as compared with last November. Tho following is the range of prices:— Nov. 1910. Yesterday ... d. d. d. d. Merinos None offering None offering Ilalfbreds 10} to 11J 9 to 9J Superior fine • crossbreds None offering None offering Fine crossbreds 10 to 101. ~t\ to Si Medium crossbreds 9 to 7 to 7§ Coarse crossbreds .. 8 to Sjf 6J to Inferior crossbreds 7 to 8 G to 6} Pieces and bellies ... 1 to 7 4 to 5 Locks 3 to 5i 2 to 3J Tho following are some of the prices realised. Where the clip was sold last year the price then obtained is stated in parentheses:—"Weldcone," BJd. "M G/ IT," 7}d. "L L/W," 7Jd. "Terangitumau," and Bd. "5," 7Jd. (9d.). "A L" (in diamond), Old. and 9Jd.; halfbred (Hid. and lid.); halfbred hoggets, BJd. (10id.), halfbred wethers. Fino crossbred, Bd. and &}d. "Club," Bd. "II C C" over Tarehuru, 7Jd. (9d.). "T W S Capstan," 73d. (9Ad.). "F M/P," 7jd. (8!d.). "Landseud," 71d. "P G/W," sjd. Dalgety and Co., Ltd, Messrs. Dalgety and Company, Limited, report as follows:—The first sale of the season was held in tho Town Hall yesterday when a total of 1011 bales was offered by the Associated Brokers, out of which we contributed a catalogue of 393 bales. The wool in most eases opened up clean and bright and, as regards condition, was on a par as compared with the first sale of last year. As growers will have no doubt observed tho Home and foreign markets have shown a considerable decline as compared with the corresponding period of last year, and, as anticipated by us, values on this side have shown a lower tendency, corresponding with those prices. Those lots sold at to-day's auction realised up to full market rates of the day, and in a number of instances exceeded our valuations. There was a large attendance of buyers, but, owing to a dispute between brokers and buyers, those from oversea refrained from bidding. Notwithstanding this, however, the wool was taken by New Zealand buvers at prices, as beforo stated, well up to'tho market prices of the day. The following table will give an indication of prices ruling as compared with November 1909 and 1910.— Nov., 1909. Nov., 1910. Nov., 1911. , d. d. d. d. d. d. Greasy halfbred 12 to 13} 10 to 10} — Super crossbred 115 to 123 9 to 10i — Medium cross- , bred 85 to 10$ 73 to 83 7 to 8 Inferior crossbred 63 to 8 75 6 to 63 Pieces 5 to 73. 55 to 8} 35 to 51 Bellies 5 to 73 53 to 75 4 to 5 Stained pieces and locks... 2 to 5 23 13 to 3 Crutchings... 4jto 55 4ito 53 4} to 43 Dead 71 to 75 7J to 85 5 to 5 The highest prices realised by us were:— S bales Romney wethers o/a of Mr. A. J. Toxward, Palmerston North, Bd.; i bales o/a, of Mr. Dugald Thompson, Manakau, 7»d.; 32 bales X-bred 11., o/a, of Mr. Tlios. Bevan, jun., 7}d; 20 bales X-bred E o/a, of Mr. T. Morland, at 7Jd.; 3 bales Xbred, o/a, of the Wairarapa Racing Club, 7Jd. j and 5 bales X-bred, o/a, of Mr. C. 11. Kerr, 7Jd. Murray, Roberts, and Co. The initial wool sale of tho season was held yesterday when, awing to a wet season combined with the coastal shipping trouble, only about 1000 bales wore cata. 'ogued. The wool tore evidence of a bad

winter, many lots showing tick-slain and a good deal of t'he wcol tender. Generally speaking, the condition was rather lighter than at the corresponding sale of last year, but most of the lots showed shortness of staple, hogget wool especially. The prices realised may be said to be as was anticipated—about 2d. to 2Jd- per lb. lielow those obtained at this time last year, and from lil. to lid. per lb. below the lowest' point of last season, namely, January of this year—the market value having gradually shrunk to that extent in tho interim. Owing to a conflict of opinion in regard to one of tho conditions of sale the British buyers refrained from bidding, but as there were buyers present who were willing to accept the clause which has formed one of the conditions of sale for over 20 years, it was decided to go 011, and tho prices, wo think, fully justified this action. We passed in about half our offering, mostly in cases where the wool was reserved at higher figures than the market warranted. The range of prices was as follows:— Medium Sujier. tojjood. Inferior. Merino — — — J-bred — 81 to 9 i 7 to 8 Fino X-bred ...... — 8 to 91 G.l- to 7J Med. X-bred ... BHO 9 7J to 8J G to 7 Coarse do 7 to 7J 0 to 6} Pieces — 5 to C 31 to 4| Bellies — -13 to 53 3\ to 1 Locks — — lj to 3 Abraham and Williams, Ltd. Messrs. Abraham and Williams, Ltd., report: W« had a very small offering for the opening sales yesterday. Owing to the withdrawal of a large number of buyers we had to pass in the whole of our catalogue, the reserves not being Teached. New Zealand Loan and Mercantile. The New Zealand Loan and Mercantile Agency report as follows:—The first wool sale of the season took place yesterday. There was a representative gathering of buyers, including a strong contingent of local operators. Owing to the wet weather experienced for some weeks past, and to tho coastal boats being laid up 011 account of the dispute between the officers and owners, the offerings were small. In consequence of tho brokers enforcing tho strict carrying out of clause 11 of the conditions of sale, which provides for payment beforo delivery of the wcol from brokers' warehouse, the oversea buyers withdrew from the sale. We are pleased to report, however, that certain local and other buyers competed well for the catalogues, anc! although many lots were passed, those lots which we did sell sold at or above our valuations, based on present London prices, which rule at Id. to I'd. per lb. less than the local prices of Marqh last. Our range of prices, as compared with March sales, are as follow:— March, 1911. Nov., 1911. Per lb. per lb. Halfred medium 9d. to lOd. BUI. to 8?d. Crossbred, „ 8!-d. to 9Jd. 7id. to Sjd. Crossbred, coarse and inferioT ... CJd. to Sd. C.'.d. to7Jd. Romney B'd. to 10!, d. Sd. to Sid. Locks Id. to 4Sd. 3d. to 3Jd. Pieces and bellies 51d.t0 7!d. 4Jd. to sd. Crutohings ... 4!d. to GJd. 4id. to ild.