STATE LOANS

Evening Post, Volume CX, Issue 147, 19 December 1930, Page 13

STATE LOANS

THREE MEX CHAEGED FALSE DECLARATIONS ALLEGED

(By Telegraph—Press Association.) AUCKLAND, This Da}-. The hearing was begun to-day of charges against three men in connection with State Advances loans. Brian Dunninghani (23), a solicitor, was charged in six instances with aiding and abetting persons to make declarations which would amount to perjury if made on oath.

Tho declarations wero all alleged to have been made in support of applications for loans from the State Advances Department.

Dunningham and William Cornelius Torcklcr, a taxi-driver, were jointly charged with obtaining from the Department £800 by falsely representing that the money was for the erection oi' ■i. house for the solo use of Doris i'ordyee Chappel and Ernest Cedric Chappel. Tqrckler was ajso charged with counselling Ea3'mond George Hausmau to make a declaration which was equivalent to perjury. Samuel Thomas Baker (36), a carpenter, was charged with making a declaration which was equivalent to perjury. A DISAPPOINTED APPLICANT. Ernest Cedric Chappel, a painter, of St. Leonard's road, Mount Eden, was the first witness. He said that he purchased a section at Point Chevalier in April, 1026, for £245 on £25 deposit and monthly instalments of 48s. In March, 1927, he applied to the State Advances Department for a loan of £1165. The tender for Iho house was £900. After waiting for eighteen months it did not seem likely that the loan would bo granted, and as he was1 then unable to keep up tho payments he tried to. recoup the loss by selling Ihe section. Dunningham called on him in' December, 1928, and said that he had a lady who required a section but wanted a Government loan with it. "I asked him how I would stand with a Government loan," said the witness, "and Dunningham told me I would get back what I had paid on it, and that, he would arrange for a new loan application." The witness next received a letter from the Valuation Officer and showed it to Dunningham. The letter asked why a Government sale notice was placed on the property. The accused advised witness to see the valuator and tell him that the application would be renewed.

Mr. Meredith (for the Crown): "You knew tho application was 3iot to bo for you?"—" Yes." ' Mr. Meredith': "And Dunningham knew also?" —"Yes."

Mr. Meredith: "Before you went to tho Valuation Department did you ask Dunningham if it was all right?"— "Yes. My wife asked him if it was the right thing, and Dunningham told her it was. My wife said she did not want to do twelve months in Mount Eden."

Chappel said that later Dunningham wrote out a letter which the witness copied^ stating that he had withdrawn the section from, sale, and would be carrying on with'the loan. Later still, he and his wife signed a declaration supporting the loan application. He did not sec tho body of the application before signing. He did not know that the declaration said .that he and his wife would reside permanently on the property. He got £53 fi-om Dunningham out of the loan, which he had put into the section. Witness then made tho statement that Dunningham. on 19th August last called on him at his house, and stayed for two hours. Detectives Doyle and CStillivau had arrived previously, and were in the next room.

Chappel said that Dunningham told him he wanted witness to meet Torckner. The three of them should get together and talk things over. Dunningham said he was sure there was nothing wrong, and added: "If we don't get together we will all be making different statements, and if we do that we will all be in the soup."

Detective-Sergeant Doyle, giving evidence, said that on learning that Daun high am was going to Chappel's house he and another detective went into the next Toom, from which they could hear distinctly. The witness then read extremely lengthy extract's from notes he took.