The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-08-19
WOOL AT OPEN AUCTION.
An INVOCATION IN THE TRADE IN
THIS COUNTRY.

Tho Initial Sale ut the wool Exchange Tester-
day Indicates = Successful Future for the
New system - Ruyers from All Parts OF the
Country -resent-Presen Prices Fnirly Good
Tho first open auction OF wool ever held in
this country took place at the Wool Exchange
yesterday, and over three million pounds wero
offered TO a largo number OF buyers who repro.
sentod nearly every dealer, broker, and manu-
~facturer OF any Importance In the United States.
Until yesterday such sales were held In but three
cities in the world. Liverpool, London, and Ant.
werp. and although the prices fetched showed
only q slight increase over tho prevailing market
figures. tho officers OF the Exchange were well
pleased with the result, for tho bidding was
fairly brisk, and the buyers expressed them
selves as much in favor Of the Innovation.
Heretofore tho wool business in this country
has been carried on by private trading. There
has been no central supervision over tho
market, and in a sense 1t has been run
in a haphazard fashion. The organization
of tho Wool Exchange. effected q year ago,
was the first step taken to correct some
of the abuses that had grown up in the
trade. Although organized q year ago, the
Exchange was incorporated this year with the
special purpose of holding these sales and In.
stalling an open competitive market. super.
vised by an authorized body. At first much op.
position was CntOuntOTou III DOStOn II L lila
dclphia markets. which sought to monopollze
the trade, but tho energetic efforts Of the wool
mon OF this city proved effective, and the Bos.
ton and Philadelphia operators fell into line and
came to this city for tho sale.
The first and. in a sense, chief advantage that
is derived from these sales is the authorized and
guaranteed classification Of the woods. In the
trade woods are classified as medium, fino
medium. fine, quarter. three-eighths, and com.
mon or general. These classifcations are not
new. but under the new system they become
fixed as adjusted and guaranteed by the inspec.
tors Of the board. In the past these grades have
fiuctuated with the ideas of tho individual dealer
or broker md there was. no certainty about
them. Now every balo OF wool consigned for
sale at the Exchange Is inspected and passed
upon by an expert inspector and his assistants,
and certificates from the Exchange specifying
the number OF. pounds and the grade. become
available as collateral at banks, At tho Same
time the price fixed at the sales Of the Exchange
becomes the standard price of that particular
grade.
only to members OF the Exchange but to dealers
who have not yet become members. and as a
consequence moro than 800 were present yester.
day. President Allan MCLaughlin opened the
sale with II short speech in which he said that 1t
try. and no was satisfied that 1t would be
pr3duGtiys of much good, Then A1 MtI q
M SIte ell put aitnS up the HIirsts l t,m'f There we're $50
lots on the catalogue. about AZ per cent. of
which were domestic woods. Secretary Light
bourn said after tho sale:
Some OF the prices weye below the market
figure and some above. but the average, l should
say, was slightly above the prevailing market
price. The bidding was fairly brisk. but we
must remember that to-day a great many came
to see and not TO buy. At our next sale l look
for much better results. Both buyers and
sellers should have been satisfied with the way
prices ran in tho open market. The buyers
were not scared away by Unfortunately high
prices produced by competitive bidding, and
the sellers found that they would get as good
sales. with the advantage Of having their goods
graded by the Exchange.
THE sale was carried out on the plan OF those
in London and Liverpool, which colonial wool
growers have found most cxpedient in the dis.
posal OF their product. We have introduced a
few notifications in various details Of super.
vision by the Exchange and in the appointment
of an official auctioneer. We have. in fact,
under our system established a sort of clearing
house for the broker. An open market such aa
the Wool Exchange affords makes q competitive
market for the producer which Is not subject Ia
artificial conditions or speculative combinations
but Is subject purely to the law of supply and
demand. thereby enabling the producer to pro
cure the highest market price compatible with
the character and condition OF the wool offered
There were a number of interested spectators
at the sale. among whom were Senator Thomas
c. Plat, Mayor Strong, Henry A. Page. E.. ID
Page. Charles r. Flint, Edward F. Poor, Clement
A. Griscom, Jr.. and Postmaster Van Colt
There will be three other sales of this series. or
Sept. 8 and 30 and Oct. l3. During the winter
similar sales will be held as often as necessary