STATE ADVANCES LOAN.

Otago Daily Times, Issue 21214, 20 December 1930, Page 9

STATE ADVANCES LOAN.

FALSE REPRESENTATIONS ALLEGED. THREE MEN CHARGED. (Per United Press Association.) AUCKLAND, December 19. The hearing was begun to-day of the charges against three men in connection with a State Advances loan. Brian Cunningham, aged 23, solicitor, was charged in six instances with aiding and abetting persons to make declarations which would amount to perjury if made on oath. All the declarations were alleged to have been made in support of applications for loans from the State Advances Department. Cunningham and William Cornelius Torckler, taxi _ driver, were jointly charged with obtaining from the department £B6O by falsely representing that the money was for the erection of a house for the sole use of Doris Fordyce Chappell and Ernest Cedric Chappell. Torckler was also charged with counselling Raymond George Hausman to make a declaration equivalent to perjury'. Samuel Thomas" Baker, aged 30, carpenter, w ; as charged with making a declaration equivalent to perjury. Ernest Cedric Chappell, a painter, St. Leonards road, Mount Eden, was the first witness. He said he purchased a section at Point Chevalier in April, 1026, for £245 on a £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 the house was £9OO. After waiting 18 months it did not seem likely that a loan would be granted, and as he was then unable to. keep up bis payments he tried to recoup by selling his section, Dunningham called on him in December, 1928, and said he had a lady who required a section, but she wanted a Government loan with it. “ I asked him how 1 would stand with a Government loan. Dunningham told me I would get back what I had paid on it,” continued witness, “and that' he would arrange for a new loan application.” Witness next received a letter from the valuation officer and showed it to Dunningham. The Tetter asked why, a Government sale notice was placed on his 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 the application was not to be for you?—“Yes.” Mr Meredith: And Dunningham knew also —“ Yes.” Mr Meredith: Before you went to the 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 12 months in Mount, Eden.” Witness, continuing, said that later Dunningham wrote out a letter which witness copied, stating he had withdrawn his 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 see the body of the application before signing. He got £53 from Dunningham out of the loan, which he had put into the section. Witness then made a statement that Dunningham on August 19 last called on him at his house, and stayed two hours. Detectives Doyle and O’Sullivan had arrived previously, and were in the next room. Witness said that Dunningham told him that he wanted witness to meet Torckler. 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 makimdifferent statements. If we do that wo will all be in the soap.”' . Detective-sergeant Doyle said on learning that Dunningham was going to Chappell’s house he and another detective went into the next room, from which they coum hear distinctly. When Dunningham entered witness took up a position at che connecting door and heard the conversation, which both he and Detective O’Sullivan recorded verbatim. The report of the conversation between Dunningham and Chappell was read by the detective-sergeant. Witness staled that he interviewed Torckler on August 7. He asked Torckler how he had come to occupy the house, and he replied that he had asked Dunningham to collect some money for him from Chappell, but Dunningham had not succeeded, and he had been advised to take the money out as rent. “On December 4 I arrested Torekler,” continued witness. “ I read the warrant to him and he replied, ‘I do not remember saying that this will be a clean-tup of the. State Advances. There will be a few disclosures.’ ”

After further evidence the bearing was adjourned till Monday.