THE DANISH FRAUDS.

Gisborne Times, Volume XXVI, Issue 2036, 26 September 1908, Page 2

THE DANISH FRAUDS.

THE POSITION OF WILLER AND RILEY.

A LETTER OF EXPLANATION

[Press Association.]

AA’ELLINGTON, Sept. 25. ■ Air. S. Turner, a director of AViller aml Riley, writes to the Press Association as follows: “Theindirect connection Alberti had with AA r iller and Riley, Ltd., is as follows: Alberti was ox-Almister of Justice and Director of tho Zeeland Peasant’s Bank. He was also chairman of the Farmers of Denmark ißutter Export Association. This Association banked with the Zeeland Peasants’ Bank, and Alberti is allogcd to have taken 6,000,000 kroner from the Zeeland Savings Bank. A kroner is equal to Is 1-Jd in English money; therefore, this is about £337-, 000. But all the peasants and association? of peasants in tho timber, 'egg, bn ter, and other trades banked with that bank, in addition to the Farmers of Denmark Butter Export Association’s agents for 21 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 accounts, and as they ship a very large quantity of butter to my company on consignment, drawing 90 per cent, of the market price, owing to the extreme market price they overdrew their account by several thousand pounds. Tho amount the Farmers of Denmark Blitter Export Association overdrew was banked, and is now gone, together with other peasants’ savings in the Peasants’ Savings Bank, and the poor peasants will have to lose heavily by theso frauds. The Association, on tiie advice of my peoplo, are not pressing them oil their joint and several guarantees, because 'we can let the debt, remain, owing until the Farmers’ Association can collect, it and gradually pay it back to my company without causing financial embarrassment to the individual farmers. Last May wo secured £125,000 fresh capital. and wo can therefore let the debt bo wiped off gradually, thereby giving the poor farmers who were the victims of the fraud plenty of timo to get over it. The agency brings us something like 5000 to 7000 tons of Danish butter per year, and the Association have stuck to us for 21 years; therefore, why should we tako advantage of them in tlioir present unfortunate position? Wo have £350,000 fully paid-up capital; in fact, our last issue was two and a-lialf times over-subscribed in three davs (18th to 20th Alay, 1908). It will clearly be seen by any of our friends in New Zealand or Australia that our position to-day is very much stronger j than it was last year, although wo did i so well for our factories last year. AYc ! have secured nearly 6000 tons of but-! ter this year up to now. 'The money j in the bank of the Farmers of Den-j mark Butter Export Association is as) safe as in the Bank of England, on j (account of each individual Danish farmer in the Association being jointly and severally liable for it. This fraud may he (alien as a warning to New Zealand and Australian farmers to keep their financo tightly in their own hands, mul not to let any one man have their butter or money in his own hands. Or course, the money which the farmers of Denmark owe us will lie at the usual rate of interest, and wo are practically financing them by compulsion owing to these frauds. Now, it is clear to sec how it is that our enemies are making capital out of this fraud by making out to the United Press in London that we arc reported to have lost £55,000, and our shares have dropped. 1 cabled my ! popple, telling them our competitors ! in New Zealand and Australia were making out our distributing power and financial .standing had been affected. Their answer read as follows: ‘Reuter’s, AA r ellington; September 22nd, —£125,000 obtained from last issue of shares, so that, in any case, we are stronger than last year. ’ It would not lie good policy to press tho Farmers of Denmark Association for the money they owe us, hut the farm- ! ers are liable individually. We will' have no difficulty in financing ship-1 ments during the coming season, and j will satisfy everybody. Our selling I and distributing power, is stronger than ever. —Wilier.’ A\ r o give power : to all factories to draw full marketrate under letters of credit from the hanks in tlioir own town, and we* are willing to deposit a sum of money in these hanks to cover any surpluses. AA T o are capable of handling 15.000 tons, of butter and cheese from New Zealand and Australia this year, and up to now we have secured on consignment about 6000 tons in New Zralad and 3000 tons in Australia. At the present time we are financing in Groat Britain between 10,000 and 18,000 tons of butter from t-lie Northern . Hemisphere.” |