BUYING IN

Hokitika Guardian, 30 October 1931, Page 2

BUYING IN

AN AUCTION PRACTICE

LEGALITY TESTED

WELLINGTON, October 28

During the discussion on the Cook Islands vote in the House of Representatives on Friday, the Hon. Sir Apirana Xgata undertook to make a statement to the House on fhe subject of the proceedings against Laery and Company, fruit auctioneers, of Wellington. To-day, Sir Apirana. said legal proceedings had been taken in October last by the Government against this firm, which was charged under the Secret Commissions Act with improperly withholding a portion of the proceeds of the saie of Government produce placed i.n the company's hands for sale by public auction. The jury in the 'Supreme Court had failed to agree on the question of criminal intent, and on the advice of the Crown Prosecutor, the proceedings had then been 'transferred, and a civil action was taken to recover the amount estimated as having beer. 1 improperly withheld. Tlie Government had succeeded in its claim and an amount of £l4O Is 4d had been paid into the Public Account by the company.

These .proceedings, he said, had been instituted mainly for the purpose of testing the legality of the practice adoped by some auctioneering firms of “buying in” produce placed with them for saie by auction. The producer by this means did not in such instances receive the full net profit derived from the sale, as the auctioneer, in addition to charging his usual commission, vs able to make a:i additional profit bv trading in the goods placed in h:3 lianos for auction.

The Minister said the question of an amendment to the Secret Commissions Act and the Auctioneers Act was receiving consideration by the Government.