THE ALBERTI FRAUDS.

Dominion, Volume 1, Issue 311, 25 September 1908, Page 5

THE ALBERTI FRAUDS.

EFFECT ONWILLER AND RILEY. AN EXPLANATION. . Mr. S. Turner, F.R.G.S., a director of 'Messrs. Wilier and Riley, Limited, has sent us (from Eltham) an explanation of his firm's alleged losses by'the Alberti frauds. We qiiote as under:— 1 "To-day I telegraphed you tliat I would sond you confirmation and full' explanation to confirm- my remarks that my company, Messrs. Wilier and Riley,' Limited, Manchester, etc.. had not lost money as published in the New Zealand press (telegraphed by the United PressAssociation). The indirect connection that Mr. Alberti. had ■ with Wilier and Riley, Limited, was as follows:—Mr. Alberti was ex-Minister' for Justice and director of the Zetland Peasants' Lank. Ho was also chairman of the Farmers of Denmark Butter Export A ssociation. This association banked with tlie Zetland Peasants' Bank, and Mr. Alberti is alleged to have taken 0,000,000 (six million) kroner from the Zetland 'Savings Bank. A kroner is equal to Is. lid. in English money;.; therefore, this is about ■£337,000. But ull the peasants and associations of' peasants in the timber, egg, -butter, 'and other trades banked with that bank in : addition to, the Farmers of Denmark Butter Export Association: • ..

'We have been the Farmers of Denmark Butter Export Association's agents for twenty-one years, owing to my company saving the intermediate profit by selling direct to retailers. They have- grownj and prospered, and so have . we. During the' very high prices this last year, the Farmers of Donmark Butter Export Association', overdrew ".their account, and as'they 'ship a very large quantity of buttor to my company on consignment, drawing 00 per cent, of' tho, market price, owing to the extreme market price,they overdrew .their account several thousand pounds. The amount t|ie Farmers of Denmark. Butter Export Association overdrew was banked, and has'gone with 'the other peasants' savings in the' Peasants' 'Savings Bank'; and the poor peasants will have to lose heavily l by . these frauds. ' But tho association, on the advice of my people, are not pressing thom on their joint and several guarantee, because wo can let tho debt remain owing, until the Farmers' Association can collect it gradually and pay it back to my company' without' causing' financial embarrassment -to'individual'farmers. Last May wo secured ■£125,000 fresh capital, and we can, therefore, let the debt'be wiped off gradually, and'thereby give the-unfortunate farmers who are victims of the fraud plenty of time to get over it. " "The agency is something liko 5000 to 7000 tons of Danish butter per year, and they 1 havo stuck to us for 21 years. Therefore, why Should we take-advantage .of them in thoir present unfortunate.position? Wo have .£350,000 fully paid-up capital: in fact, our • last issue was 2S times' over-subscribed 'in three days .(May ,18-20, 1908): •. It will be clearly seen by any of our friends in New Zealand and Australia that our.position to-day is very, much stronger than last year, -although we did so woll.for our factories last year that wo secured nearly COUO tons of. butter ,and cheese this year ■ up to now. Tho money in the hands of tho Farmers of Denmark Buttor Export Association is as safe as in the Bank of England, on account of oacli individual 'Danish! farmer in that'ass6- : ciation being jointly a,nd severally liable 'for ; it. This fraud may' be taken as a. warning to New Zealand Australian farmers to keep their finance tightly in their own l hands, and not let any one man have butter or money in his own hands. / Of course, the money- which the Farmers of Denmark owo -us will bear'tho usual rato.of interest, and wo arc practically, financing thorn by compulsion, owing to these frauds.. . ' ,

"Now it is clear to see how it is that our -enomies make capital out of this fraud, by making out to the' United Press in London that we are reported to liave lost ,£55,000, and our shares have dropped. I cabled my people.-toll-ing them our competitors in New Zealand and Australia were making out that-our distributin;: power and financial standee had been affected.: - Their answer reads'as follows:—

"'P.nutor's, . Wellinston,, September 22:— was obtained from last issue of shares, so that in any'case we aro stronger than-' last year. ..It w6nlll' fc Ti6t be good'policy tefpreiss the' Farmers of Denniark-Association' for the money they owe us, but the farmers aro liable individually. -We:will haveino-difficulty financing shipmonts during the coming season. Will satisfy overybody that our selling-and distribu-, 't.ing',-power is stronger: than ,■ ever.—(Signed), Wilier.' ... 'j.

"I havo gono into, these details to nrove tlie Press Association' were misled into cabling out to New Zealaiid exaggerated reports,'just at -the'time-I was fixing up tho consignments of .some vory large factories. Wo give tho power to all factories to draw the full market rates' under letters of credit from the banks in their own town, and we are willing to deposif 'a sum of money in - theso banks to cover any surpluses. We are capable of handling .15,000 tons of buttor and cheese from Now Zealand and Australia this year, and up to now we have secured on consignment .about 6000 tons in Now Zealand, and 3000.tons in Australia. At the present.' time' wo are financing in Groat Britain between 10,000 and 18.000 tons of butter from the Northern Hemisphere. "(Signed), . ' "WILLER AND RILEY. LTD.. "S. TURNER."