THE ALBERTI FRAUDS.

Taranaki Herald, Volume LIV, Issue 13761, 25 September 1908, Page 5

THE ALBERTI FRAUDS.

AYILLER AND RILEY'S ALLEGED LOSSES. STATEMENT BY MR TURNER. .• DANISH FARMERS THE ULTIMATE LOSERS. Per Press Association. WELLINGTON, Sept. 24.

Mr S. Turner, director of Wilier and [ Ililey, Ltd., writes to the Press Association as follows: — "The indirect connection Alberti had with Wilier and Ililey, Ltd., was as follows: — Alberti is an ex-Minister of Justice and was aj director of the Zetland Peasants' Bank. He was also chairman of the Farmers of Denmark 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 ljd in English money. Therefore tliis represented about £337,000, but all the peasants and , associations of peasants in the timber, egg, butter, und 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 Associations 1 agents for twenty-one years. Owing to my company saving the 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 £hey shipped a very large quantity of butter to my company on consignment, drawing 90 per cent, market price. Owing to the extreme market price they overdrew their account several thousands of pounds. The amount the Farmers of Denmark Butter Export Association overdrew was banked, and had gone with other peasants' savings in the Peasants' Savings Bank, and the poor peasants will have lost heavily by these frauds. The Association, however, on the advice of my people, are not pressing them on their joint and several guarantees, ■ because we 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 the % individual farmers. Last May we secured £1*25,000 worth fresh capital, and we can therefore let the debt be wiped off gradually, and thereby give the poor farmers who have been the victims of the fraud plenty of time to get over it. The agency handles something like 5000 to 7000 tons of Danish butter per year. They have stuck to us for 21 years; therefore why should we take advantage of them in their present unfortunate position? We have £350,000 fully paid-xip capital; in fact, our last issue was two and a half times oversubscribed in three days (18th to 20th May, 1908.) It will clearly be seen by any of our friends in New Zealand and Australia that our position today is very much stronger than last year, although we dia so well for our factories last year.' '.We ha via secured nearly 6000-tonsofi 'butter, this year up to now. The ,money in the hands of the Farmers of Denmark Butter Export Association is as safe as in the Bank of England, on account of each individual Danish farmer in the Association being jointly and severally liable for it. This fraud may be taken as a warning to New Zealand and Australian farmers to keep their finance tightly in their own hands, and not let one man have butter or money in his own hands. Of* course the money which the farmers- of .Denmark owe us will bear the usual rate of interest, and wo are practically financing them by compulsion owing to these frauds. Now, it is clear to see how our enemies make capital out of this fraud, by making out to the united press of London that we are reported to have lost £55,000, and our shares have dropped. I cabled my people telling them our competitors in New Zealand and Australia were making out that our distributing power and financial standing were being effected. Their answer reads as follows: — 'Renter's, Wellington, September 2.— £125,000 was obtained from the issue of shares so fhat in any case we are stronger than last year. It would not be good policy to press the Farmers of Denmark Association for the money they owe us, but the farmers are liable individually. We will have no difficulty in financing shipments diiring the coming season, and will satisfy everybody that our selling and distributing power is stronger than ever.-— Wilier.' "We give power to all factories to draw full market rate under letters of credit from banks in their own town, and we are willing to deposit a sum of money in these banks to cover any surpluses. We are capable of handling 15,000 tons of butter and cheese from New Zealand and Australia this year, and up to now Aye have secured on consignment about 6000 tons in New Zealand and 3000 tons in Australia. At the present time we are financing in Great Britain between 16,000 and 18,000 tons of butter from the northern hemisphere.