Heritage Auction

[calvindog]

David, if that's all it is then I agree, there's nothing done wrong. I think the concern is that the bids will be placed further along in the auction. Is there any way to determine when the Heritage bids are placed? Either during or after an auction?

[David Atkatz]

They say they only bid up to the beginning of the last week.

[calvindog]

Well, if that's what it is, what is the harm (or even purpose) of that? The evils of shill bidding usually are contained within the near end of an auction, unless a ceiling bid is run up early on. As Barry noted above, it seems really innocuous -- so why do it at all? Just opens them up for unwarranted criticism.

[DJR]

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[barrysloate]

Jonathan- thanks for coming on and explaining Heritage's policy in great detail. I do understand that your practices are legal, and that the company is bidding in good faith- by that I mean if you win a lot you will honor your bid and pay the consignor.

But there are other issues besides legal ones. There are just some auction practices that collectors really hate, and one is when employees of auction houses bid. I know it's done in other places- when I worked at Sotheby's I was allowed to bid on Halper lots even though I catalogued the collection. It was not an issue and they even have contracts written up solely for this purpose.

But that is the legal justification for it. On a public relations level, it is a disaster. I guess when you sell $600 million a year of memorabilia it may not matter. But I'm certain that is the issue that rankles the people reading this. Again, it's rare for an auction house to come into this lion's den with a fair and reasonable explanation.