COMPAEISOX OF MODES OF SALE. 46:5 



as tlie most ordinary mode of sale. The chief advantages and 

 disadvantages of its different varieties are as follows : — 



i. In Sale by Detail. 



AVhen converted timber is sold in small lots by public auction, 

 sufficient competition will ensure the best prices, for owing to 

 demand and supply, prices in this case most nearly represent 

 the true local value of any sale-lot, including its quality, 

 utihty, portability, &c. By auctioning forest produce, it is 

 distributed in the simplest manner, and according to the measure 

 of their requirements, among the consumers. If there are excep- 

 tions to this rule, they are less numerous and more easily 

 remedied than in sales by private contract. Much less time is 

 occupied by auction -sales than by sales by private contract, a 

 matter of great importance. All unjust dealing and respect 

 for persons which may easily occur in private sale, or com- 

 plaints of which may be brought against the most honourable 

 foresters, are avoided by public auctions. The superiority of 

 public auction over sale by private contract is proved by the 

 fact that nearly everywhere in Germany, sale by private con- 

 tract has been supplanted by auction-sales. 



Amongst the disadvantages urged against sale by public 

 auction, the following is worthy of notice, namely, the possi- 

 bility of the purchasers coming to an understanding before the 

 sale. This is especially to be feared — when the attendance at a 

 sale is small ; when too much material is offered for sale at 

 once ; in the case of wood-assortments which not everyone can 

 buy, either because their cost is prohibitive, or demands for 

 them are small ; or finally, when the seller purposely tries to 

 maintain prices above their proper local figure. Coalitions of 

 purchasers are very frequent in the sale of merchantable timber, 

 rafted wood or firewood intended for trade, for which local 

 competition may be nil, or of a very limited nature. 



Coalition of purchasers is becoming a common affair in 

 Germany, being much more frequent than is imagined both at 

 large and petty sales. The theoretical idea of an auction-sale 

 involves the assumption that every competitor is present merely 

 on his own account, and that a coalition among the competitors 

 is impossible : coalition cannot, however, be prevented, provided 



