LOANS OF MONEY

Waikato Times, Volume 126, Issue 21040, 16 February 1940, Page 2

LOANS OF MONEY

CONSPIRACY CHARGE TRANSACTION'S WITH BANK ASSURANCES OF PAYMENT <By Telegraph.—Press Association) WELLINGTON, Thursday Evidence was heard at the hearing in the Magistrate’s Court to-day of the conspiracy charge against Harvey Maitland Chrystall and Gordon Percy Aston from Charles W. Tringham, barrister and solicitor, Wellington, and a member of the committee of the New Zealand Racing Conference, who said that until June 3, 1939. Sellers was secretary to the Racing Conference at a salary of £I4OO a year. Mr Leicester: What was iiie time within which the loan of £SOO was to be repaid? Witness: Within three months. Subsequently, ' I think, there was substituted a promissory note in New Zealand currency which meant a return of £l24o?—Yes. Was it because of the hazardous nature of the process or patent that the late Mr Sellers insisted on this occasion on your receiving such a large return?—Definitely not. I took exactly the same view as with the other advances I had made to Sellers, that he would honour his obligations as he had done in the past. I had his assurance that he was in something big. £26,000 Expected Witness continued that Sellers had told him he (Sellers) expected to receive £26,000 from the patent. Alexander C. Jessep, barrister and solicitor, of Wellington, said that on March 4, 1938, he was was consulted by Mr H. L. Nathan, of Wellington, in deference to a proposed guarantee of £3OOO by him on Sellers’ account at the Bank of Australasia. After witness and Sellers had discussed certain matters, Chrystall had come to Wellington from Nelson, and subsequently Chrystall had told witness that he and one Aston, of Christchurch, and Sellers were interested in an invention, which consisted of special metal to be fixed to ships. The Admiralty had agreed to buy the invention and had paid £30,000 into the Bank of England. There were some details to be completed by those sponsoring the invention before the money could be received. Chrystall had added that it would not be possible to obtain a charge on the money under the arrangements made with the Admiralty. Sellers and Chrystall offered to repay £3OOO plus an additional £2OOO by the end of May, said witness. He wrote to Sellers on March 17, 1937, advising that his client was unable to give the proposed guarantee. Chrystall had . tated that £BO,OOO would be paid

: ver when the final details were com•iletcd, and both he and Sellers stated that the invention should be worth not less than £500,000.

Racing Conference Money Charles W. Tringham, barrister and solicitor, Wellington, and a member of the committee of the New Zealand Racing Conference, said that until June 3, 1939, Sellers was secretary to the Racing Conference at a salary of £I4OO a year. Witness gave evidence regarding the banking procedure of the conference, and said that on June 16, 1939, at a meeting of the executive committee, it was disclosed that the imprest account had been drawn upon by Sellers without proper authority to the extent of £1167. The late Mr J .S. McLeod was then president, and on his going into the matter with Sellers the latter offered to bring Chrystall before the committee. Chrystall was brought before the committee, and -told it he was leaving for Australia that afternoon and taking with him certain certified documents, on the production of which at a bank in Sydney the money due from the Admiralty would be paid over. After questioning Chrystall, witness said Sellers was allowed 14 days in which to refund the money. In Highest Spirits A Wellington solicitor, who is now serving with the New Zealand military forces at Trentnam camp, Herbert Richard Churton Wild, said he had resided with Sellers at his home, 3 Ngaio Road, Kelburn. In August, 1939, acting on behalf of Sellers relatives, he made a certain communication to the police. He did this as a friend and not as a solicitor. Witness said the accused sometimes called at Sellers’ home. On a night Chrystall came to Sellers’ home for tea witness said he remembered that it was the day on which the Racing Conference had met to consider a cheque drawn by Sellers for £750. “We were seated at tea and

Sellers was in the very highest spirits," said witness. "He kept on referring to the fact that he had been on the mat, but that Chrystall had spoken up for him. Chrystall appeared quite willing to accept what Sellers said.” On the morning of Sunday, July 2, 1939, said witness, .Sellers received a telephone call and left the house and did not return until late that night. When witness saw him next morning Sellers was most depressed. “He diet not see me for a minute or two,” said Wild. “Alter I went into his room, he left the house and that was the last time I saw him alive.” Other Loans Made Leonard Coker Blundell. of Blundell Brothers, Limited, Wellington, said that about February, 1938, he was requested by Sellers to lend him money in connetcion with an invention. He gave Sellers £3OO as a personal loan. Sellers promised repayment about April, 1938. Witness received a letter from Chrystall dated April 30, 1938, in which the writer stated there was not the slightest risk of witness losing his money. On November 15, 1938, Sellers handed witness a promissory note for £SOO, the due date being April 30, 1939. The note was payable in London and was endorsed by H. M. Chrystall. Detective-Sergeant McLennan: Has this money been repaid? Witness: I have never presented this note. I did not ask Sellers for it. I was getting nothing out of it from Sellers. Thomas Coltman, licensee of the Grand Hotel, Wellington, said Sellers approached him for a loan of £2OO in April, 1939. He was given a cheque for that amount as a personal loan and some days later returned with a promissory note payable on April 30, 1939. Sellers called again on June 16 and asked if witness would advance him £2OO odd as a personal favour. He said he would be able to liquidate both cheques in a few days and he needed the money to help somebody who was going to Australia. Witness gave him a cheque for £l2O and, at the suggestion of Sellers, entered 4 nto an agreement for the loans to be repaid in London. Bank Transactions Details of Sellers’ financial position at the time of his death were given by Wilfred Hugh llobertshaw, who retired on December 16, 1939, from the position of manager of the Bank oi Australasia, Wellington. Witness produced a statement relating to Seilers’ private account from October 1, 1987, to July 3, 1939. On | the last-named date there was an | overdraft of £2413. Nine cheques cn j which the names H. M. chrystall and ! c-. P. Aston figured drawn from this I acccunt had been traced. The total I amount involved in the nine cheques j was £2570. ■ On March 9, 1938, said witness, j Sellers, Batt and P. W. Jackson j called at the Bank of Australasia in Wellington. Batt offered to guarantee H. R. Sellers’ No. 2 account to the extent of £3OOO. Chrystall was also present. It was stated that this guarantee was to enable a syndicate to pay certain expenses in connection with the patent lights of a proi tection against torpedo attacks. I Arrangements were accordingly made ; and a No. 2 account was opened that j day. | Witness added that Sellers’ last ■■ operation cn the No. 2 account was on June 21, 1938. by which date the ■ whole of the £3OOO was fully drawn from the account. On that date there j was an overdraft of £3OOB and as the , maximum allowed was £3OOO, Sellers I paid in £8 on July 1, 1938. Annoying Deiays ! There were further delays and : repeated extensions of the guarantee, j Aston and Sellers called at the bank | one afternoon in the second half of I 1933 and Sellers said he had brought i Aston along because of repeated dei lays in receiving their money. When witness said the delays were very annoying and most unsatisfactory, Aston became angry and said something about “All this damn fuss over a lousy £3000.” Witness told him it was all very well to talk like that and that Sellers had pledged everything he had to give assistance to the syndicate and had induced Batt to guarantee the account. Witness also told Aston that if either the bank or Batt demanded payment Sellers would have no option but to file a petition for bankruptcy and would possibly lose his position.

Aston then made a gesture of taking out his cheque book, said witness, and said he would give a cheque for the whole lot less eight per cent. Sellers said he was not prepared to lose eight per cent on the transaction. On June 6. 1939, Sellers told witness all matters had been completed and that £27.500 would be paid into his account in London in about a week’s lime. Chrystall confirmed the statement.

The hearing was adjourned until tomorrow and is not likely to finish before Monday afternoon.