Live From Sothebys

[Archive]

Posted By: Corey R. Shanus

I don't look at this issue as what is better for consignors or buyers. Rather I look at it as an issue as what is honest and upfront, and then let the chips fall where they may. If that means buyers benefit (through the elimination of book bidding), then so be it. Book bidding is nothing less than selling something under false pretenses, period. The fact that an auction house discloses the practice in its terms and conditions of sale doesn't change what the practice is. Or to put it another way, just because someone discloses ahead of time that he/she may cheat, and then does it, doesn't change the fact that he/she is cheating. Yes I know the practice is legal. So nobody is breaking any laws. But that doesn't make it right.

And let's also be real about another aspect of this. The only reason it is legal is because of the auction house lobby. Contrary to some posted views as to the power of the hedge fund people who control NYC finance and who consign valuable works of art, I seriously doubt they are lobbying Albany to keep book bidding legal. And even if they were, who are buying these expensive works of art? Probably other financial superstars who would find it in their interest to lobby for the elimination of book bidding. I have little doubt that when Sothebys et. al. lobby to maintain the legality of book bidding, they are dropping not-to-subtle hints that if Albany outlaws it, well, there is always New Jersey or Connecticut.