My take
My understanding is that Mastro Auctions intends and expects in the relatively near future to pay all consignors. Their delay in doing so was caused by a "Perfect Storm" of extraordinary occurrences: (i) recognized credit-worthy individuals not timely paying on their debts and (ii) withdrawal of a line of credit caused by economic circumstances unseen since the 1930's.
Their practice of selectively sending out lots prior to payment is hardly without precedent in this hobby. As has been noted, when one other noted auction house did it, they received tremendous applause and no dissent. The belief that Mastro's actions were unique in this hobby is the height of naivety. So Mastro caters to certain bidders. Mastro's rationale almost certainly is that it induces those bidders to bid more aggressively in their auctions, which benefits all consignors. I have yet to hear a complaint from a consignor who received substantially more for his consignment due to bids from an individual who knew he would be extended just the sort of credt that caused this whole situation.
Bottom line to me: Mastro's business practices are the rule, not the exception, not just in this hobby but in collectables in general. Yes, by the letter of the law perhaps they fall short. But then so do the substantial majority of others. Those out to crucify Mastro certainly have enough fodder to make it a grand feast. But they are smoking on something if they feel Mastro is the exception and not the rule.
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07-05-2009, 06:12 PM
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