ALLEGED FRAUD

Gisborne Herald, Volume LXVII, Issue 20242, 9 May 1940, Page 14

ALLEGED FRAUD

TORPEDO CHECK DEVELOPING DEVICE SECRECY SOUGHT FINANCE GUARANTEES CHEQUES PAID OVER (Per Press Association.) WELLINGTON, this day. The trial of Gordon Percy Aston and Harvey Maitland Chrystall on charges of conspiracy arising out of an alleged r.nti-torpedo invention was continued in the Supreme Court yesterday before Mr. Justice Smith. The Crown prosecutor, Mr. W. H. Cunningham is conducting the prosecution. with him Mr. W. R. Birks. Aston is represented by Mr. D W. Russell, Christchurch, and Chrystall, by Mr. W. E. Leicester, with him Mr. R. T. Peacock. Ernest Palliser, cross-examined by Mr. Leicester, said when they endeavoured to probe certain matters, Chrystall would always stop at a certain point. Witness agreed with His Honour, that Chrystall "insisted he was bound to secrecy so far as the nature of the agreement with the Admiralty was concerned. Answering Mr. Leicester, Palliser said that Aston and .Chrystall indicated that so far as England was concerned, the money was being handled by a Sir Robert Dowling. Mr. Leicester: I suggest that never at any stage of these transactions did the accused Chrystall appear to waver in his belief that the patent was genuine?—That is quite true. The witness added that he never saw any evidence of personal affluence as far as Chrystall was concerned from March, 1938, to August, 1939. The accused said he dared not put on a new suit or a new coat because his creditors would be pushing him. He said he had put some of his mother’s money into it, witness continued. Chrystall told him the “earth” telephone was in a shed at the back of The Hut tearooms, which were only a blind. To Mr. Leicester, witness said that when Chrystall returned from Sydney he and Mr. Balt invited the accused to make a plain statement because “we were concerned with Sellers’ disappearance and wanted to know what led up to Sellers taking his own life.” They insisted repeatedly that everything was and had been genuine. Assurance of Payment

To Mr. Russell, witness .said he received no consideration for arranging the interview with Mr. Batt, but he had an assurance from Sellers that ho would be well paid. Sellers had frequently borrowed substantial amounts from him and there had been no question of repayment. Mr. Russell: First you received a oromissory note for £IOOO. Was not that a consideration for arranging the interview with Mr. Batt, —No. It was in consideration for advances to Sellers. The agreement was for £6OOO for the original loan of £3OOO. Was it not arranged that Mr. Batt should receive £3OOO and a premium of £3ooo?—Definitely no. Who suggested that he should have a premium of £6000? Chrystall was the man who suggested it. Although ostensibly it was made to Sellers, it was a guarantee to Sellers for the purposes of Chrystall and “Mr. X”? The £6OOO was suggested because it was said that Sellers would be a very wealthy man. Very Bad lippression Witness denied that Aston’s abuse was caused by Aston thinking that the agreement was for a premium of £3000.' “If 1 had met Aston before making any advances to Sellers and introducing Mr. Bait, my advice would have been not to lend a farthing. I got a very bad impression of Aston the first time I met him. Subsequently, when I met him and he was in sober mind, he was a man who did create a different impression.” Edward Augustine Batt. managingdirector of Edward A. Batt and Comply, Limited. Wellington, described his meeting Chrystall through Palliser. He said he was invited to guarantee Sellers’ account for £3OOO, which was to be paid to Chrystall and Aston. The latter was described to him by Chrystall as his partner in an invention that had been sold bv them to (he British Admiralty. It was explained that Chrystall and “Mr. X”. Ibe inventor, wore sworn under the Official Secrets Act and therefore the inventor’s name could not at that time be disclosed. The amount for which the invention had been sold was mentioned as £280.000. Chrystall said they required the money to clear up the’residue of debts owing in connection with experiments they had made! prior to the AdmiraPv making an advance payment of £IOO,OOO on June 1. 1938. Witness was given an outline of the purpose of the invention.

“No Bisk Whatever” “Chrystall and Sellers assured me there was no risk whatever and that the invention had been sold to the Admiralty,” said witness. ‘‘l agreed to give the guarantee and next day the guarantee was completed. They were to pay off the bank on June 8 and nay me : n Lender CfiO'lO. free of exchange.” Witness said he believed the assurances he had received. About two months afterward, he met ”Mr. X ’ in Sellers’ office. He turned out to be Aston. Witness then described several postponements of the dates of paying off the guarantee and gave evidence of interviews with the accused on the lines of Palliser’s evidence. In November, 1938, said witness, he was passing through Nelson and went to The Hut. which he found to be a tea-room. In May, Aston said that everything depended on the release of a mortgage of £750 on The Hut. He said that payment would be made about four days after his arrival in Australia. He returned on June 1 and left for Australia again on. June 16, and arrived back on July 1. On July 3. the day Sellers disappeared, Aston asked whether he could see witness urgently. Witness went to the Carlton Hotel and found Aston very agitated. He was dressed as if he was ready to leave. He asked whether witness had seen Sellers. Aston said that Sellers had cleared out and he had been with him that morning till 10 a.m. He said: “I suppose you know he has embezzled the conference funds.” Witness said he was not aware of that and was very surprised. Aston said he had told Sellers that everything was all right and that he had the money to make up Sellers’ defalcations and would pay it next morning. Chrystall had gone to London and was going to pick up £27,000. If he chose to pay witness 5s in the £ or nothing, witness must accept that as final. Witness told him after hearing that he was not surprised Sellers had disappeared. Aston said the Jews in Australia got the rest of the money from the Admiralty. Strange Happenings Aston rang witness from Christchurch and said there were strange happenings in regard to Sellers in Christchurch. He said he had paid Sellers £4OOO, held his receipt for it and this was intended to release witness’ guarantee at the bank. He said the witness would get all that was due to him. On Chrystall’s return from Australia. witness and Palliser saw him and appealed to him to clear the whole atmosphere in regard to the alleged Admiralty contract. Witness asked him whether he would still maintain he and Aston ever had a contract with the Admiralty. He said most certainly they had. He was particularly cautious and was not prepared to be frank. Witness lost patience. Chrystall seemed to be very agitated.

Wilfred Hugh Robertshaw, stock and sharebroker and for six years till December 16, 1939, manager of the Bank of Australasia, Wellington, said that Sellers was a customer of the bank and had introduced Chrystall and Aston to him. Several cheques from Seilers’ ordinary account were paid out to the accused as follows: On October 1. 1937, £IOO. to Chrystall: on October 13. 1937. £4OO to Chrystall: on October 29. 1937, £IOO 3s 6d. /to Chrystall: on December 2, 1937, £l2Ol 10s 6d. to Chrystall: on February 25. 1938, £3OO 8s 6d. to Chrystall; on Julv 1, 1933, £SO to Aston; on August 5, 1938, £2OO payable to self forwarded *o Nelson for credit to Chrystall; on August 17, 1938, £l5O 14s 9d, to Chrystall, sent to Sydney to the credit of Aston; on December 16. 1938, £6B, payable to Aston, endorsed by Chrystall. The hearing was adjourned.