WOOL CONSPIRACY

Hokitika Guardian, 5 February 1930, Page 4

WOOL CONSPIRACY

BY FOREIGN BUYERS,

." (Australian Press Association). ; ; " SYDNEY, Feb. 4. The allegation is made in a Labbur newspaper tat Sydney that ’<jer-t4j,n abuses are prevalent at the wool auctions here, the chief of which is “lot splitting;” tinder which a group of the foreign buyers meet before the sales to ascertain the‘ aggregate ..amount of wool they require. Then, later, they parcel it out among themselves. When the buying commences, one;representative of this' group bids about threepence per pound below the price that the group is prepared to pay. Vociferous bidding then goes on, creating the impression that " fierce competition exists; but then the bids reach the level agreed upon, all of the bidders but one drop out. He secures’ the lot; It is also alleged that the Japanese Government lias forbidden the Japanese buyers from bidding against one another. , The Federal Labour members of Parliament are ; unofficially investigating the matter, in the hope of producing evidence that. the wool growers are the victims of this exploitation. V The representatives of the grower* have admitted ,to the Prime .Minister, Mr J. H.. Scullin, that “lot spl.ittiM” goes on ,at the-.: sales but state tnjvtr they are powerless to .stop it. At- to-day’s Sydney wool gales’, the offerings were 8421 bales,, and 7897 were , sold, along with 1374 hales sold privately. Contineptal buyers., were again active, with good, support, from Yorkshire and the United States. Prices were firm, with .a . hardening tendency for. sqperfine - wools. Greasy merinos S2ds - 1 1 • -j. i L I .