THE ALBERTI FRAUDS.

Press, Volume LXIV, Issue 13231, 26 September 1908, Page 2

THE ALBERTI FRAUDS.

WILLER AND,RILEY'S POSITION.

(FB-SS association T__KGE__.) WELLINGTON, September 24. Mr S. Tnrner, a director of Wilier and Riley, writes to the Press Association as follows:—"Tho indirect eonneetion Alberti had with Wilier and Riley, Limited, was as follows: —Alberti was ex-Minister of Justice and director of tho Zetland Peasants' Bank. He was also chairman of the Farmers of Donmark Butter Export Association. This Association banked with the Zetland Peasants' Bank, ' and Alberti is alleged to have taken 6,000,000 kroner from the Zetland Savings Bank. A kroner is equal to Is lid English money, therefore this is about -337,000, but all the peasants and associations of peasants in tho timber, egg, butter, and other trades banked with that bank, in addition to tho Farmers of Denmark Butter Kxport Association. We have been the . Association's a_ents for twenty-one ' years. Owing to my company saving intermediate profit by selling direct to retailers, they have grown and prospered, and so have we. During the very high prices this last year, the Farmers of Denmark Butter Export Association overdrew their account, and, as they ship a very large quantity of butter to my company on consignment, drawing 90 per cent, of tho market price, owing to the extreme market price they overdrew their account by several thousand pounds. The amount the Farmers of Denmark Butter Export Association overdrew was banked, and has gone with the other peasants' savings in the Peasants' Savings Bank Tho poor peasants will have lost heavily by these frauds, but the Association, on tin*, advice of my people, is not pressing them on their joint and several guarantees, because we can let tho debt remain owing until the Farmers' Association can collect it and gradually pay it back to my company- without causing financial embarrassment to individual farmers Last May wo secured £125,000 fresh capital, and wo can, therefore. Jet the debt bo wiped off gradually, and thereby givo the poor farmers who are victims of fraud plenty of timo to get over it. The atrency handles something like 5000 to 7000 tons of Danish butter per year. They have stuck to us for twenty-one years, therefore why should we take advantage of thorn in %hc\r present unfortunate position? Wo have £350.000 fully paid lip capital, m fact our last issue was two and a half times over-subscribed in three days (May 18th to 20th, 1908). It will clearly be seen by any of pur friends in New Zealand and Australia that our position to-nay is very much stronger than last year, although wo did so well for our factories last year. Wo have secured nearly 6000 tons of butter this year up ti_l now. Tho money in the hands of the Farmers of Den-mark Butter Export Association ia as safe as in tho Bank of England, on account of each individual Danish farmer in tho A__ooiation being jointly and severally liable for it. This fraud may bo taken as a warning to New Zealand and Australian farmers to keep their finances ti_htly in their own hands and not let any on© man have buttor money in his own hand-. Of oourso, tho money which tho farmers of Denmark owe us will boar the usual rate of interest, and we are practically financing them by compulsion, owing to those frauds. Now it is clear to see how it is that out enemies make capital out of this fraud by making out to the united Press in London that we are reported to have lost £55,000 and that our shares have dropped. I cabled to my people telling them that our competitors in New Zealand and Australia are making out that our distributing power and finnncial standing have been affected. Their reply reads as follows:—'Renter's Wellington report on 22nd £125,000 obtained from last, issue of shares, so that in any caeo „wo aro stronger than last year. It i would'not bCgood policy- to prcrss Far-. mors of DehijiJHrk Association for- money they owe us, 'but farmers are 'liable individually. Wo will have no difficulty in financing shipments during coming season. Will satisfy, everybody our selling and distributing power stronger ; than over.—Wilier.' We give power* to all factories to draw tho full market rate under letters of credit from in their own town, and we are willing" to deposit a sum of money in these banks to cover any surpluses. We are cipable of handling I£,_oo tons of butter and cheese from New Zoiland and Australia this year, amd up till noiw we have secured on consignment about 1000 ton* in Now Zealand, and ' 3000 tons in Australia. At the present time we aro financing in f*r"at, Britain between 16,000 and 18,000 tons of butter from the Northern Hemisphere.