CHOICE OF METHODS OF SALE 295 



The Choice as between Sales by Auction, Tender, 

 and Private Contract. 



There is always much difference of opinion as to the best 

 method to adopt in order 'to obtain a price for timber. In a 

 general way, it may be said that sales by tender are 

 infinitely preferable to any other method. However, the 

 merits and demerits of each of the three methods may be 

 briefly considered, along with a short description of each. 



Sale by Auction. It is a sine qud non that the auctioneer 

 employed be well up in this particular line of business. 

 He must know the "Trade," and the "Trade" must know 

 him ; otherwise, success cannot be anticipated. 



The success of the sale depends largely upon the auctioneer. 

 He alone is responsible for the advertising, and the prepara- 

 tion of the catalogue. If he be a good judge of timber and 

 if he know the demands of the trade, the lotting may be left 

 to him, but not otherwise ; and the conditions of sale must 

 always be submitted to the agent of the estate for approval. 



A sale by auction encourages spirited bidding, and thus 

 a better price may be obtained for the timber than if there be 

 no competition. But auction sales render facilities for buyers 

 to form a " ring," and thus defeat the desired competition. 



When a ring is formed, those in the ring do not bid 

 against each other, but, after the sale, they usually meet 

 together and have a " knock out " sale amongst themselves ; 

 and divide the spoils of their ill-gotten gains. 



If the lots be large, there is always more likelihood of 

 a successful ring being formed, than if the lots be small. For, 

 in the latter case, the " big men " will not deign to admit the 

 " small fry " into their confidence, and initiate them into the 

 advantages of co-operation. 



It must be distinctly understood that the formation of a 

 ring at an auction sale is quite illegal. But its existence is 

 very difficult to prove. 



It is, however, a consolation to reflect that there are many 

 buyers who will never, under any circumstances, enter, or join 

 a ring. 





