Tribal Art Auctions and Exhibitions Fall 2016

1. FALLS CHURCH FALLS CHURCH, VA.- Quinn’s Auction Galleries has been chosen to auction the highly important African tribal art collection of renowned dealer, artist and collector Merton D. Simpson (African-American, 1928-2013). The estate collection will be offered in two major sales at Quinn’s northern Virginia gallery, the first to be held on October 1 and the second in late fall or early winter of this year.
The New York County Public Administrator, which serves as fiduciary of the Simpson estate, confirmed Quinn’s appointment and said the proceeds will “directly benefit Mr. Simpson’s estate.”
With an acclaimed eye for spotting exceptional art and a career as an art dealer that spanned more than 50 years, Merton D. Simpson was one of the world’s most respected African and tribal art dealers. He was instrumental in helping individuals and institutions around the world to build comprehensive, historically significant collections. He was also a gifted artist in his own right and an early member of the Spiral group, a collective of black artists founded in 1963 by Romare Bearden, Hale Woodruff and others.
The 2,000+ pieces to be auctioned consist of artworks and rare tribal relics from Simpson’s personal collection, as well as selections from the New York art gallery he operated, and some of his own works.
With his passion for collecting African art and artifacts, Merton Simpson enlightened the public with an otherwise untapped perspective of a continent with diverse and rich cultures and traditions. The mystery behind some of those traditions was unraveled by Simpson’s uncompromising desire to document and collect art and artifacts that otherwise would have remained obscure.
Quinn’s Executive Vice President Matthew Quinn said Simpson had maintained extensive archives documenting his acquisitions as far back as the 1960s. “It’s one of the most impressive archives of its type that I’ve ever seen,” Quinn said.
“Quinn’s is known for selling entire collections, with care and respect. Because of the historical importance of the Simpson collection, we hired John Buxton of Arttrak to serve as our auction consultant,” Quinn continued. “John has an impeccable reputation as a specialist in his field and will be evaluating each and every item in the two sales.”
Detailed information about the October 1 auction’s contents will be included in a preview press release to be issued in September.       
 http://artdaily.com/news/89777/Quinn-s-appointed-to-auction-Merton-D--Simpson-estate-collection-of-African-tribal-art-#.V9nS2ub6taQ

2. LONDON.- This autumn the British Museum will host the first major UK exhibition on South African art that explores a 100,000 history through archaeological, historic and contemporary artworks, which look at the long and rich artistic heritage of the country. South Africa: the art of a nation is sponsored by Jack and Betsy Ryan and will use art to tell the story of the region’s deep history, the colonial period, apartheid, the birth of the ‘rainbow nation’ and South Africa today. Objects from the British Museum’s own South African collections will be displayed alongside contemporary acquisitions. There will also be significant loans in the exhibition, including objects coming to the UK for the very first time, thanks to the exhibition’s logistics partner IAG Cargo.
The exhibition will shed light on the varied artistic achievements of South Africa with around 200 objects arranged chronologically across seven key episodes from the country’s history, from ancient history to the present day. Each section is illustrated with artworks by contemporary artists that provide new perspectives regarding South Africa’s past. One example of this approach is a new acquisition that the British Museum has made to its permanent collection for this exhibition, Karel Nel’s ‘Potent fields’ (2002). Nel created ‘Potent Fields’, with its two planes of red and white ochre, in the same year as the discovery of the approximately 75,000 year old cross-hatched ochre at Blombos Cave in the Western Cape. This discovery repositioned southern Africa, not Europe, as one of the earliest sites of artistic thought and creation. The tension in the piece between white and coloured planes echoes the colour divide of apartheid. Nel collected the ochre in Nelson Mandela’s ancestral lands in the Eastern Cape, and so the artwork also acknowledges the balance that Mandela dedicated his life trying to create among all people in post-apartheid South Africa.
One of the most significant loans is the gold treasures of Mapungubwe, four of which are leaving South Africa for the very first time. From AD 1220 to 1290 Mapungubwe was the capital of the first kingdom in southern Africa. These gold figures, discovered in three royal graves there, are among the most significant sculptures in Africa today. They depict animals of high status – a cow, a wild cat and a rhinoceros, and objects associated with power – a sceptre and a bowl or crown. The only one of the Mapungubwe treasures to have travelled to the UK before is a gold bowl which underwent conservation work at the British Museum. The golden rhino is now the symbol of the Order of Mapungubwe, South Africa's highest honour that was first presented in 2002 to Nelson Mandela.
The gold treasures of Mapungubwe are evidence of new developments in artistic production at the start of the second millennium around the time of the creation of the first southern African kingdoms, as society shifted towards more hierarchical styles of rule. These archaeological artworks are important in contemporary South Africa for many reasons, not least because they are evidence that complex societies existed in the region immediately prior to the arrival of European settlers. This history was hidden during the apartheid era when the colonial concept of ‘terra nullius’, the myth of an empty land, was used to legitimise white rule. In the exhibition, gold treasures of Mapungubwe will be displayed alongside a modern artwork by Penny Siopis and a sculpture by Owen Ndou that encourage the viewer to challenge the historic assumptions of the colonial and apartheid eras.
The British Museum has been collecting contemporary African art for over 20 years, and this exhibition presents an opportunity to showcase some of the pieces acquired from South African artists. A recent acquisition to the British Museum’s permanent collection is a stunning 2 metre wide textile ‘The Creation of the Sun’ (2015), a collaborative piece from Bethesda Arts Centre in South Africa. The artists at the centre are descendants of South Africa’s first peoples, San|Bushmen and Khoekhoen who have been inspired by archival recordings of their ancestors’ beliefs to produce contemporary representations of their founding stories, such as the creation of the sun.
South Africa has a dynamic contemporary art scene with a rapidly growing global reputation. A variety of contemporary works are coming on loan to the British Museum from a self-portrait by Lionel Davis’ to video featuring Candice Breitz, and a 3D installation by Mary Sibande. These pieces conclude a show punctuated throughout with pieces by artists including Willie Bester, William Kentridge and Santu Mofokeng. This exhibition will open the eyes of visitors to the long and diverse history of South African art. Through the exploration of key episodes and objects from throughout the country’s history, it will reveal unique insights into South Africa today.
Hartwig Fischer, Director of the British Museum said South Africa: the art of a nation is a chance to explore the long and diverse history of South African art and challenge audience preconceptions in the way our visitors have come to expect from a British Museum exhibition. Temporary exhibitions of this nature are only possible thanks to external support so I am hugely thankful to Betsy and Jack Ryan’s continuing commitment to sponsoring projects at the British Museum. I would also like to express my gratitude to our Logistics partner IAG Cargo who are safely transporting incredible loans that will allow audiences in London to see the unique and powerful stories these objects can tell.”

3. BERLIN.- Dada is 100 years old. The Dadaists and their artistic articulations were a significant influence on 20th-century art. Marking this centenary, the exhibition “Dada Africa. Dialogue with the Other” is the first to explore Dadaist responses to non-European cultures and their art. It shows how frequently the Dadaists referenced non-Western forms of expression in order to strike out in new directions. The springboard for this centenary project was Dada’s very first exhibition at Han Coray’s gallery in Zurich. It was called “Dada. Cubistes. Art Nègre”, and back in 1917 it displayed works of avant-garde and African art side by side. In five sections, “Dada Africa” broadens the focus on this dialogue between Dadaist output and African, Asian, American and Oceanic artefacts. The exhibition and catalogue were created in partnership with Museum Rietberg in Zurich.
Reacting to the First World War, Dada challenged bourgeois norms and cultural values to the core. Forms of artistic expression had to change radically. The art and culture of “non-Europe” was seen as offering a coherent alternative. Breaking with the aesthetic past was associated by the Dadaists with the idea of social renewal. Expressionists and Cubists had already taken an interest in the formal elements of non-European artefacts in their quest to develop a new visual vocabulary. The Dadaists went beyond this by merging what was seen as “the Other” with home-grown formats. Marcel Janco drew, for example on objects from Cameroon to make his Dada pictures and masks. Sophie Taeuber-Arp, for her part, was struck by the expressive power of indigenous works from North America and Southern Africa. Tristan Tzara took literary cues for his “Poèmes nègres” from African and Australian texts, while Hugo Ball borrowed input from Oceania for his richly creative use of materials.
The Dadaists launched their assault on conventional views of art with cross-genre performances consisting of music, text and dance. The pseudo-African sound poems, the rhythmic drumming and the masked dances – spontaneous, vibrant and primal – were intended to shock the audience and to overcome the divide between the show and its audience. At the same time, the “primitive” flavour tested the minds and bodies of the performers to their limits. The exhibition retraces these enactments with the aid of historical photographs, documents and acoustic specimens.
Hannah Höch’s collages from her series “From an Ethnographic Museum” are another distillation point in this exhibition. In works with a grotesque feel, the Dada artist combines depictions of non-Western artefacts with others of “white” physicality. Now these collages are displayed alongside the original objects from Africa, Asia and Oceania, still in the Museum Rietberg collection, from which Höch borrowed her motifs – just one example of the unusually fruitful collaboration between two institutions with very different profiles.
The exhibition describes a historical situation. Wherever use is made of racist and colonialist terms such as “primitive”, “negro” or “nègre”, they are taken from historical quotations and have been placed in inverted commas. In the early 20th century, these concepts were applied to societies in Africa and also Oceania, which were regarded as primeval.
Artists: Approx. 120 works (collage, assemblage, masks, sculptures, documentary material, photographic reproductions, sound installations) from Africa, Oceania and Asia, the Master of Buafle, as well as Hans Arp, Johannes Baader, Carl Einstein, George Grosz, Heinz Harald, John Heartfield, Raoul Hausmann, Erich Heckel, Hannah Höch, Richard Huelsenbeck, Marcel Janco, Man Ray, Hans Richter, Karl Schmidt-Rottluff, Robert Sennecke, Sophie Taeuber-Arp, Tristan Tzara.
http://artdaily.com/news/89525/Exhibition-in-Berlin-explores-Dadaist-responses-to-non-European-cultures#.V9nfDeb6taQ

Auctions Fall 2016

1. LOS ANGELES LOS ANGELES, CA.- On Saturday, May 19, 1962, at a Democratic fundraiserand early 45th birthday celebration, President John F. Kennedy took his seat in Madison Square Garden anticipating what has now become one of the most iconic moments in entertainment and political history. In front of 15,000 guests, many of them celebrities, actor Peter Lawford was about to make an introduction that would change the course of pop culture and Presidential folklore forever. Under a bright spotlight, the legendary Marilyn Monroe walked on stage and peeled away her white ermine fur coat, revealing a skintight, sheer, flesh-colored dress that sparkled with over 2,500 handstitched crystals. The custom Jean Louis creation was so tight fitting that Marilyn wore nothing underneath and had to be sewn into it last minute. Original sketch illustrated by Bob Mackie. When Marilyn appeared and the dress was finally revealed, the entire audience gasped.
After Peter Lawford introduced her as the “LATE” Marilyn Monroe, she flicked the microphone and began to sing “Happy Birthday Mr. President” in her trademark sultry, sexy voice with original lyrics she wrote herself.
However, it was her intimate tone and projection of the words “Mr. President” that would stun the audience, excite the press and become a milestone in popular culture. The song and performance were remembered for many reasons, not the least because it was one of her last public appearances before her untimely death less than three months later. Sadly, President Kennedy died a year later and that infamous night at MSG was the last known time they saw each other. The rendition by Marilyn remains one of the most famous, delivered in her halting, breathy tone. All in all, it lasted approximately 30 seconds, but more than five decades later, it remains the most famous version of “Happy Birthday” ever. The dress, the performance, Jacqueline Kennedy’s absence and photographs from the evening would spark ravenous rumors of an affair between the President and Marilyn.
In fact, it was Marilyn’s death in 1962 that prompted American artist Andy Warhol to create “Marilyn’s Diptych” — one of the most famous art homages to her, permanently securing Marilyn’s place in contemporary art history.
“Marilyn Monroe singing ‘Happy Birthday Mr. President’ is certainly one of the most famous impromptu performances in American history,” said Darren Julien, President & CEO of Julien’s Auctions. “That rendition has lived on for decades as one of the most remarkable events in her career and certainly one of the most storied tales in popular culture history — a moment in time squarely at the center of the 1960s, Hollywood and Camelot. We are incredibly privileged to have the opportunity to offer this amazing dress to collectors, fans and contemporary art enthusiasts around the world.”
On November 17, 2016, Julien’s Auctions, the world-record breaking auction house to the stars, will once again make history when it exclusively offers the Marilyn Monroe “Happy Birthday Mr. President” Jean Louis creation at auction. Julien’s Auctions will give collectors and fans from around the globe one of the most awe-inspiring moments in auction history when the gavel comes down on the final bid for this remarkable object.
Prior to the auction, the “Happy Birthday Mr. President” dress will go on an exclusive world tour. The dress will exhibit at MANA Contemporary in New Jersey as part of the Exhibition “Marilyn: Character Not Image” followed by the Newbridge Silverware Museum of Style Icons (MOSI) in Kildare, Ireland before making its way back to the Julien’s Auctions Gallery in Los Angeles.
“We have had remarkable opportunities to offer unique objects related to Marilyn Monroe in the past,” said Martin Nolan, Executive Director of Julien’s Auctions. “To be part of the continued interest and excitement around this legend is always thrilling. This dress, this story, this momentous occasion represents a defining moment in history. This auction will remind the world why Marilyn Monroe remains an icon.”

2. NEW YORK, NY.- Christie’s sale of Important American Furniture, Silver, Outsider and Folk Art on September 20 will present nearly 150 lots from the 17th through 21st centuries. Leading the sale is
The Benjamin Franklin Silver-Hilted Small Sword (estimate: $200,000-300,000), made for him by Samuel Soumaine (1718-circa 1769), Franklin’s neighbor in Philadelphia.

This court sword is a testament to the diplomatic, scientific and intellectual achievements of America’s foremost statesman. After representing his country’s interests in London during the events leading up to 1776, Franklin secured military and financial support from the French government for the American Revolution. His was a victory as great as any fought in combat, since the struggle for American independence depended greatly upon French intervention.
During his nine years in France, Franklin won over the hearts and minds of the people; one of these was Pierre Jean Georges Cabanis (1757-1808), a young student of medicine and philosophy. Both men of the Enlightenment, they shared a love of scientific study as well as a broader interest in humanism, morality and liberty. The two developed a deep friendship and before departing back to America in 1785, Franklin gave this sword to him. Cabanis went on to encompass both politics and science in his career — a physician and physiologist, he became a member of the Council of Five Hundred and later the Senate. After abandoning politics during the rule of Napoleon, he wrote a groundbreaking study on the links between physiology and psychology that saw him hailed as the pioneer of modern neurology.
Until the present sale, the sword has been in the possession of Cabanis’s direct descendants. ‘The sword is a symbol between two countries, two ideals — both of democracy and progress,’ says Emmanuel de Lipkowski, one of the present owners of the sword and a descendant of Pierre Jean Georges Cabanis.
The Important American Furniture, Silver, Outsider and Folk Art auction takes place during Americana at Christie’s New York, a series of live and online auctions, viewings and events, from September 17-22. Other sales include The Private Collection of President and Mrs. Ronald Reagan and online auction of American Art. 
http://artdaily.com/news/90095/Benjamin-Franklin-s-sword-leads-Important-American-Furniture--Silver--Outsider-and-Folk-Art-sale-at-Christie-s#.V9mSbub6taQ

3. NEW YORK Christie’s Raises Premiums Effective Sept 19th
September 6, 2016 by Marion Maneker
Christie's 2016 Fee Structure
Christies has announced a new fee structure for all categories except wine. Emphasizing that the current fee structure has not changed since 2013, the firm emailed clients this morning with the news which includes these new breakpoints:
The new premium rate will be an amount equal to
•25% of the hammer price of each lot up to and including £100,000/$150,000
•plus 20% of the hammer price from £100,001/$150,001 up to and including £2,000,000/$3,000,000
•and 12% above £2,000,001/$3,000,001.
http://www.artmarketmonitor.com/2016/09/06/christies-raises-premiums-effective-sept-19th/

4. PARIS PARIS (AFP).- A Paris court on Tuesday jailed 35 former porters from the prestigious Drouot auction house for stealing precious antiques, jewels and artworks in an insider racket thought to date back decades.
The defendants, who transported and stored objects destined for sale by Drouot, were found guilty of helping themselves to treasures including diamonds and a painting by Marc Chagall.
They were sentenced to up to three years in jail, with 18 months suspended, and fined 60,000 euros ($67,000).
Three auctioneers were also convicted in the scandal that shook the French art world, with the three receiving suspended sentences of up to 18 months plus fines of 25,000 euros.
The lavish lifestyles of some of the porters had long been a source of suspicion. One drove a Porsche 911 and the latest BMW cabriolet, while another reportedly bought a Paris bar with his spoils.
The convicted men were among 43 porters and six auctioneers who were tried in March on charges of gang-related theft, conspiracy and handling stolen goods. Defence lawyer Lef Forster complained that the court had failed to take into consideration the "social complexity of the phenomenon", arguing that the practice of "salvaging objects" was widely tolerated.
Secretive group
Investigators alleged institutionalised theft by the porters, known as "Les Savoyards" as all members of the secretive group came from the French Alpine region of Savoie.
They are also known as the "Cols Rouges" after the red trim on the collars of their black uniforms, paired with pristine white gloves. The porters had monopolised the transport and handling of valuables for Drouot, one of the world's oldest auction houses, since 1860. The court on Tuesday ordered the dissolution of their union, whose membership was tightly controlled and limited to 110.
Much of the pilfering occurred while the porters set about emptying the homes of wealthy people after their deaths, taking items that were not inventoried.
Two pieces by leading Art Deco designer Eileen Gray went missing in July 2006, appearing three months later on the Drouot auction block where they sold for a combined total of one million euros.
The porters claimed they had no idea the objects -- a pedestal table and a dressing table -- could fetch such a fortune, with one saying they were to have been "hauled away by the rag-and-bone man".
The investigation was launched in 2009 after an anonymous tip led investigators to a painting by the 19th-century artist Gustave Courbet that disappeared while being transported in 2003.
Raids uncovered a mountain of treasures, including precious jewels and antique furniture, that had gone missing.
Stealing from the dead'
The same fate befell some stage costumes of the great French mime Marcel Marceau, who died in 2007 leaving a tax debt of several million euros to his daughters.
Testifying at the trial in March, the daughters lambasted what they called a "free-for-all" behind the scenes at Drouot.
They were among several dozen victims of the alleged scam who sought damages in the trial, but the court did not award any on Tuesday.
Drouot was quick to dissociate itself from the scandal, dropping the porters in 2010 and becoming a civil plaintiff in the trial.
"These thefts committed on such a large scale have shamed the institution," the auction house's lawyer Karim Beylouni said in March.
According to the prosecution, the practice -- known as "la yape" which means "theft" in Savoie slang -- was endemic and profits were shared equally among the porters.
Each newcomer "bought" the membership of an outgoing porter, with an initiation process that involved stealing something and sharing the proceeds with the others.
Defence lawyer Thibaut Rouffiac acknowledged during the trial that "there were thefts, without a doubt," but said: "Just because there were thefts and excesses doesn't mean they all stole."
Another, Leon Lef Forster, questioned whether "fraudulent intent" could be proven when the employees salvaged "abandoned things".
Some of the porters allegedly defended the practice by saying they were merely "stealing from the dead".
http://artdaily.com/news/89933/Dozens-jailed-for-insider-thefts-at-French-auction-house#.V9nAPeb6taQ

5. DALLAS, TX.- An early Confederate flag likely handmade by the notorious spy Belle Boyd will open at $50,000 during a special, joint auction event Sept 17 at Heritage Auctions, celebrating the 20th anniversary of The Rail Splitter, a respected publication for enthusiasts of Abraham Lincoln and related memorabilia.
Titled "Lincoln and His Times", the auction features numerous unique items in addition to Boyd's 5-foot by 3-foot flag, which has survived under remarkable circumstances and was recently discovered after being locked away for more than a century in Switzerland following the U.S. Civil War.
"Heritage has auctioned a number of significant Confederate flags over the years," said Tom Slater, Director of Americana Auctions, "but none more evocative than this one. The beautiful display conditional and thoroughly-documented back story makes the Belle Boyd flag a very special offering indeed."
Isabella Maria Boyd was one of the Civil War's most colorful characters. An ardent Southern patriot, the Virginia-born Boyd used her feminine wiles in the service of the Confederacy during the first two years of the War before being discovered and arrested after Union troops over-ran parts of Virginia. When "Stonewall" Jackson's troops occupied Front Royal and prepared to defend it in May 1862, Boyd supplied the general with valuable information about Union troop strength and reportedly even helped Jackson to plan his battle strategy. According to her memoirs she played a prominent role in the fight, appearing on the front lines to cheer and encourage the Confederate soldiers.
When Federal troops took control of Front Royal that summer Belle was quite the celebrity, and it was then that she encountered a young Union captain named Frederick d'Hauteville. The precise nature of their relationship remains the subject of speculation, but she presented Frederick with this Confederate flag, an event recorded both in d'Hauteville's own journal and in a letter to his wife from Robert Gould Shaw (who would later command the immortal 54th Massachusetts regiment of African-American troops, and whose story was told in the film "Glory!"). At the time D'Hauteville and Shaw were friends, both serving on the staff of General Nathaniel Banks.
Boyd would be arrested shortly thereafter on orders of Secretary of War Edwin Stanton, but she was promptly exchanged and apparently returned to her old ways, as she was rearrested the following year. She escaped custody and attempted to flee the country on a blockade-running vessel, but the ship was interdicted by a Union warship. Belle was again placed in custody, but clearly her feminine charms were not lost on the vessel's commander, who promptly fell in love with and proposed marriage. The two escaped together and traveled to England, where Boyd would sit out the rest of the War.
D'Hauteville, who came from a wealthy family with roots in both the U.S. and Europe, left the army in 1863 and eventually moved to Switzerland, where he spent the rest of his life. The Belle Boyd flag and three of his uniforms, also offered in this auction, were packed away and did not see the light of day for a century and a half until they appeared in an estate auction in Europe last year. Not surprisingly these artifacts have survived in remarkably fine condition.
The flag itself has a most interesting configuration, as there is a circle of 11 stars in the canton on one side, and but a single star on the other. The circular pattern is typical of Confederate First National flags, and the number of stars implies that this side of the flag was completed between July and the end of November 1861, when the Confederate states numbered eleven. But significantly the 11-star side is actually the back of the flag, which suggests that the single star side was completed first. Quite possibly this was an expression of defiance by the maker, as the earliest flag of the Republic of Texas when the Texans were in revolt against Mexico had featured a single star, widely considered a symbol of independence. Later the Texas flag would be redesigned in a red, white, and blue pattern which may well have served as the inspiration for First National flags, including this one.
Belle Boyd's unique Confederate flag will be offered Sept. 17 in "Lincoln and His Times". Additional highlights include a nearly 30-ounce solid gold medal gifted to the great American statesman Henry Clay and one of the most important Abraham Lincoln letters ever to appear at auction. Also featured are a newly discovered banner from one of the legendary 1858 Lincoln-Douglas debates and a Lincoln life mask, sculpted by Leonard Volk, which once belong to Lincoln's Secretary of the Navy Gideon Welles.
 http://artdaily.com/news/89834/Flag-of-notorious-female-Civil-War-spy-surfaces-in-Heritage-Auctions---Lincoln-And-His-Times--event#.V9nRGOb6taQ

Art Market Fall 2016

1. NEW YORK Over the weekend, the Wall Street Journal ran a story suggesting that auction houses would be offering generous incentives to consignors because of fears of a weak auction market.
The meat of the story was a list of fairly standard sweeteners—waived seller’s premium, photography fees and insurance—that collectors or advisors with attractive property or strong relationships can usually get in all markets, up or down.
The auctioneers who were happy to be quoted are aggressive regional houses that have to be very aggressive to compete with the global firms. For example:   “I use all the tools available to me to get important consignments,” says Peter Loughrey, president of Los Angeles Modern Auctions. “At $1 million, I offer crazy incentives.”
And: “When you know there is competition with other auction houses, the first place you cave is with commissions,” says Leslie Hindman, owner of Chicago-based Leslie Hindman Auctioneers.
Christie’s, Sotheby’s and Phillips—who spent the boom period of 2011-15 providing extremely generous incentives and guarantees—are far less likely to do that now than before.
It’s a paradox that these firms would be less likely to fight for market share in a down period. Yet as the pie shrinks, there are fewer places to compensate for the incentives with real revenue.
Sotheby’s has begun to apply more discipline across the specialist network if the last sales cycle is any indication. Recent personnel moves at Christie’s during the August hiatus suggest the once-profligate firm may be more disciplined this Autumn. Phillips has a raft of new specialists and business-getters coming aboard whose relationships are more likely to bring in quality consignments than incentives.
We’re entering a new market with new assumptions on both sides of the art selling equation. Don’t expect past behavior to indicate what comes in the future.
Art Auction Houses Want to Deal  (WSJ)
http://www.artmarketmonitor.com/2016/09/13/a-weak-art-market-doesnt-necessarily-mean-more-incentives-to-sellers/

2. INDONESIA Gulf News has brief feature on the growing traction in the Indonesian art market. Pointing out that Balinese art became popular in Europe during the 1930s turning the island into a magnet for artists. That tradition continues with Ashley Bickerton who has lived on the island for more than 20 years.
Indonesia, which is experiencing a resource-driven economic miracle, has more billionaires than Japan, according to Forbes. Add to that 17.6 million middle-class households with room for discretionary spending, according to Euromonitor International. This combined with the strong connection between collectors and their traditions are shaping the country’s art scene.
“Until recently, only Indonesians collectors collected Indonesian art. But due to globalisation, Indonesia is getting increasing interest from the international art market,” says Oei Hong Djien, owner of the OHD Museum in Yogyakarta with its impressive collection of contemporary Indonesian art.
http://www.artmarketmonitor.com/2016/09/01/indonesia-has-more-billionaires-than-japan-will-it-have-more-art-buyers-soon-too/

3. MALAYSIA Is the Art Market Big Enough to Launder Money? August 18, 2016 by Marion Maneker
Here’s an interesting take on international money laundering and the art market from the president of Transparency International in Malaysia. Unfortunately, it relies upon cobbling together “research” on money laundering and the art market that has appeared in a long string of flawed news reports.
Malaysia, of course, is ground zero for the 1MDB development fund scandal that is being investigated by several nations, including Singapore, Switzerland and the US. Compounding the issue has been the very visible reporting on Jho Low’s art purchases over the last several years. Low
One reason to doubt the prevalence of money laundering in the art market is the lack of capacity. As the author unwittingly illustrates, the art market just isn’t big enough to accommodate much money laundering. He cites estimates that $2T in funds are laundered globally each year. A generous measure of the art market would be $75bn and that includes a huge portion of primary work that has no resale value.
So the best case argument would make the entire art market 3.75% of the global total for money laundered funds:According to PwC’s Global Economic Crime Survey 2016, global money laundering transactions are estimated at two percent to five percent of global GDP – or roughly one to two trillion US dollars – annually. Yet, according to the United Nations Office on Drugs and Crime (UNODC), less than one percent of global illicit financial flows are currently seized by authorities.
The Art Market Report published by the European Fine Art Fair stated that transactions in fine art were worth US$75 billion in 2014. Lately, it is believed that illegal money pumped through art dealers and auction houses have contributed to the rise in the value of fine art
http://www.artmarketmonitor.com/2016/08/18/is-the-art-market-big-enough-to-launder-money/

4. NEW YORK - What Sotheby’s Means When It Says It Will Use Guarantees ‘Judiciously’
August 12, 2016 by Marion Maneker
It’s been a big theme for Sotheby’s new management to claim they are going to be more ‘judicious’ in their use of guarantees and won’t play dice with shareholders money. The subtext of these statements is always in reference to Christie’s aggressive willingness over the past several years to guarantee works of art at prices that would seem to subsidize the market instead of adding to the auction house’s profits.
Daniel Loeb made Sotheby’s failure to keep pace with Christie’s in Contemporary art a key reason for the need to replace Sotheby’s CEO. It has been an open secret that a part of Christie’s dominance in Contemporary art came from its free use of guarantees. So, naturally, Sotheby’s new CEO has been consistently paying lip service to the idea of shunning the guarantee-to-gain-market-share strategy.
Unfortunately, when it comes to practice, the new Sotheby’s has been far more reckless with guarantees than previous management. This was demonstrated by the massive—and, in retrospect, probably unnecessary—$515m guarantee for the Taubman estate.Sotheby’s recognized a small portion of the loss on Taubman but is holding $33m in works that did not sell on its books to avoid what will surely be a greater loss. Look for those write-downs to get taken in an unusually strong year or a big kitchen sink quarter.
Even with that record, Sotheby’s management continues to believe that if it says it is being more responsible than it must be true that it is being more responsible. The latest example of that was on this week’s earnings call when CEO Tad Smith re-iterated his stance in the context of his new Fine Art division team:
That team today is very focused on profitable deal making and more judicious use of guarantees, the benefits of which we are also starting to see in our financials.
If Smith is using Taubman as a comparative, the statement is strictly correct. And Sotheby’s has gotten the message out to art market participants who have been happily coining the idea:
“Sotheby’s has held the line,” said Guy Jennings, managing director of the Fine Art Fund Group in London. “They haven’t allowed consignors to eat into their margins.”
All of this provoked a bit of an outburst from one collector who emailed this comment out of frustration:
Basically, it is a seller’s market, as it has always been for the last 10 years. So what they did for Taubman, they would do it again. Look at that 100m$ guarantee they’re giving for the Ames collection. They are bogged down in the same dead-end: high estimates to catch up with the guarantee.
Despite Smith’s repeated assurances—and in the face of overall commission margins rising from 15.5% to 16.4% last quarter—anecdotal evidence of consignors getting “enhanced hammer” deals for this Fall’s auctions suggests that Sotheby’s definition of judicious includes continuing to make guarantees that will ensure a loss and offering terms on highly visible lots that will eat into commission margins.
Sotheby’s Fine Art division is clearly eager to buy market share. That ‘judicious use’ may be a defensible strategy but it is exactly the strategy that Christie’s used and Sotheby’s has long complained of. It also happens to be a strategy that Christie’s appears to be on the edge of abandoning.
In its May Evening sales, Sotheby’s aggressively covered guarantees with irrevocable bids that locked in a loss. That was a smart move and one that jibes with Smith’s repeated use of phrases like “hedging.”
A hedge does not mean protection against a loss; however, it means a mitigation of a potential loss.
Nowhere was that better demonstrated than in Smith’s response to an analyst’s direct question on guarantees and the meaning of “judicious use.” Smith’s response, which you can read below, amounts to saying that it’s all on the Fine Art Division’s Amy Cappellazzo and Adam Chinn.
Here’s the earnings call transcript:
Oliver Chen, Cowen & Company
Congrats on solid results. Tad, on your prepared remarks, we were curious about your statement about more judicial use of guarantees. What’s the incremental lens that you are using just to make sure that that is in the right place in terms of how those are taking place? Thank you.
Tad Smith, Sotheby’s – President and CEO
Okay. With respect to the first question on guarantees, my view is what is the profitability and risk balance on guarantees. I think we currently have approximately $100 million of net exposure to guarantees as of the end of the quarter, plus or minus. And I expect a good portion of that to be covered by hedges.
But the truth of the matter is I am thrilled with the team and the pricing excellence of the contemporary team. And frankly, the Modern Impressionists and many other teams, too. And so I feel very comfortable that a combination of understanding the value of the underlying works, having a clear sense of how they will sell in the auction room, gives me a higher degree of confidence that our guarantees are judicious. And frankly, we have a strong bias to hedging guarantees.
So the way to hear that is we are unafraid to make guarantees because we have a high degree of confidence in our team. And the conference [confidence] in that team is borne out by that team’s ability to both hedge where it makes sense or make — or get profitable returns from guarantees in the auction room. I feel quite good about it, and I expect you will see more of the same, which is that we are willing to use guarantees and we are also hedging them very aggressively and thoughtfully.
How Sotheby’s Found a Path to Higher Profits  (The New York Times)
http://www.artmarketmonitor.com/2016/08/12/what-sothebys-means-when-it-says-it-will-use-guarantees-judiciously/

repeatedly appears among the constellation of individuals connected to the use of the 1MDB funds.

If You Thought NAGPRA was Bad - Read This Spring/Summer 2016

Kate Fitz Gibbon and The Committee for Cultural Policy (https://committeeforculturalpolicy.org/) will soon publish a statement on HR1327 sponsored by Flake, McCain, and Udall. From everything we can see to date this will be a further incursion of the government into areas that they really don't understand. If you thought as a citizen under the U.S. Constitution that you would be protected from seizure of property acquired legally then maybe you thought wrong and that's the happy hunting ground we are moving towards now. Any reputable dealer, collector, or curator wants to avoid stolen property; however, we all who have experience with Pre-Columbian understand that the issue has been , is and will always be who defines the word stolen. We will keep you posted on what Kate says and we recommend you read her newsletter. JB


Washington, D.C - .Jul 19, 2016  — U.S. Sen. Jeff Flake (R-Ariz.) today joined U.S. Sens. Martin Heinrich (D-N.M.) and Tom Udall (D-N.M.) to announce the growing bipartisan support for the Safeguard Tribal Objects of Patrimony (STOP) Act, a bill they introduced earlier this month to prohibit the exporting of sacred Native American items and increase penalties for stealing and illegally trafficking tribal cultural patrimony. U.S. Sens. John McCain (R-Ariz.), Jon Tester (D-Mont.), Lisa Murkowski (R-Alaska), and Steve Daines (R-Mont.) have since signed on as cosponsors of the bill.
"I am pleased to join my colleagues in this bipartisan effort to stop the illegal trafficking of sacred Native American artifacts," said Flake. "These culturally significant and historical objects belong with the tribes, not the highest bidder."
"I'm proud to welcome the growing bipartisan support for my legislation to safeguard sacred Native American artifacts," said Heinrich. "The STOP Act will increase penalties for stealing and illegally trafficking tribal cultural patrimony. And it will prohibit exporting these objects and create a tribal working group to help federal agencies better understand the scope of the problem and how to solve it. The United States must do everything in its power to ensure that priceless Native American cultural items are returned to their rightful homes instead of being sold off to the highest bidder. I will continue working with my colleagues and tribal communities to ensure we build on this momentum so we can help repatriate stolen culturally significant artifacts back to Indian Country."
"I'm very pleased that this is a growing bipartisan effort. Cultural objects play fundamental role in connecting Tribal members to their culture and their personal identity, and this connection should be recognized and respected at all levels of government in the United States and abroad," said Udall. "These aren't items to be collected and exploited, and I will keep working with this bipartisan group--and alongside New Mexico's Tribal leaders--to ensure the penalties for stealing and illegally trafficking sacred Native American cultural objects match the significance of the crimes."
"Many of the cultural artifacts that this bill would protect have a special, sacred connection to Native American people, as well as their history and heritage," said McCain. "I have worked for many years to help protect these objects and keep them within the Native American community. I'm proud to see growing support in Congress of our legislation to impose stiffer penalties to stop these sacred items from being lost forever."
"Sacred items connect Native Americans with their vibrant tribal heritages and cultures," said Tester, Vice Chairman of the Indian Affairs Committee. "This bill will help put a stop to the illegal sale of cultural objects, and ensure that communities in Indian Country are able to preserve sacred items for generations to come."
"Through the Native American Graves Protection and Repatriation Act, Congress set national policy that cultural items and remains sacred to our Native families belong to the community--not museums, not collectors," said Murkowski. "But some of these items have managed to leave the country and find their way into the hands of collectors abroad. Through the STOP Act, we are taking a stand to put an end to this practice and taking a major step forward in repatriating those that have ended up in foreign hands back to the United States."
"It's critical that we treat Native American artifacts with the respect and protection they deserve," said Daines. "That's why I'm supporting legislation that will help protect objects of  tribal heritage and ensure they are preserved for generations to come."
The Navajo Nation passed a resolution supporting the STOP Act, and the bill has been endorsed by the Jicarilla Apache Nation, the Pueblos of Acoma, Santa Ana, Isleta, Zuni, Laguna, Nambé, Jemez, and Ohkay Owingeh as well as the All Pueblo Council of Governors, the National Congress of American Indians, and the United South and Eastern Tribes Sovereignty Protection Fund.
Specifically, the STOP Act would:
•Increase penalties (from a maximum of five years to a maximum of 10 years) for NAGPRA criminal violations to more closely match the National Stolen Property Act and other similar statutes.
•Explicitly prohibit the export of items obtained in violation of NAGPRA, the Archaeological Resources Protection Act, or the Antiquities Act. The French government has cited the lack of an explicit export prohibition as an impediment to enforcement of NAGPRA and related laws overseas.
•Establish a two-year amnesty period for individuals who voluntarily return all of their illegally possessed cultural objects to the appropriate tribes.
•Direct U.S. Government Accountability Office (GAO) to complete a report on the number of cultural objects illegally trafficked, both domestically and internationally; the extent to which the U.S. Department of Justice (DOJ) has prosecuted cases of trafficking in cultural objects or human remains; and recommendations for DOJ, U.S. Department of State, and U.S. Department of the Interior to eliminate illegal commerce in cultural objects and secure repatriation of such objects.
•Direct the formation of a tribal working group to work with the agencies in preparing information for the report and advise on implementation of the report's recommendations.
Background:
•On May 21, 2015, Flake and the Arizona Congressional Delegation sent a letter to Attorney General Loretta Lynch and Federal Bureau of Investigation Director James Comey asking for their assistance in helping the Hopi Tribe to recover and repatriate cultural artifacts from the Estimations Ventes aux Encheres auction house in Paris, France. The signed letter can be viewed here.
•On Dec. 12, 2014, Flake and the Arizona Congressional Delegation sent a letter to Department of State Bureau of Legislative Affairs Assistant Secretary Julia Frifield asking how the federal government can help the Hopi Tribe halt the sale of Hopi cultural artifacts at a December 2014 auction in Paris, France. The signed letter can be viewed here.
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Simpson Estate Auction to be Held in October