THIRD DAY

Dominion, Volume 33, Issue 192, 10 May 1940, Page 11

THIRD DAY

Trial On Conspiracy Charge FURTHER EVIDENCE Eighteen More Crown Witnesses Heard Considerable progress was made in the hearing of the evidence for the Crown in the third day of the trial of Harvey Maitland Chrystall and Gordon Percy Aston before Mr. Justice Smith and a jury of 12 in the Supreme Court, Wellington, yesterday. Eighteen Crown witnesses occupied the box during the day. Accused are jointly charged with conspiracy by deceit to defraud the former secretary of the New Zealand Racing Conference, Hartley Roy Sellers, deceased, of £6705. Six other associated charges include two of false pretences, oue of theft, one of receiving and two of attempted false pretences. The Crown Prosecutor, Mr. W. H. Cunningham, with him Mr. W. K. Birks, is conducting the prosecution. Mr. IV. E. Leicester, with him Mr. H. T. Peacock, is appearing for Chrystall, and Mr. D. W. Russell, Christchurch, for Aston.

Evidence Of Bunk Manager,

Continuing his evidence yesterday, Wilfred Hugh Robertshaw, stock and sharebroker, and for six years till the time of his retirement on December 16, 1939, manager of the Bank of Australasia, Wellington, said the total amount of cheques drawn on Sellers’s ordinary account was £2570/17/3. A second account guaranteed by Batt ■was opened by Sellers. This No. .-< account was drawn on to the limit, £3OOO, by July 1, 1938. , The overdraft was not repaid on the due date, June 8, 1938. On June 17 Sellers and Chrystall called on witness. Chrystall said they had been unable to lift the money due to them and asked for an extension of two months. Batt later said that though the position was unsatisfactory he would agree to the exteusion. Sellers, witness understood, was to . get £25,000 in England- from the British Government or Admiralty. The overdraft was not paid on thenext due date, witness said. Aston later rang witness and said the money would be in Wellington before November 29. When witness tried to tie him down to an amount at an interview he got angry and said there had beeu a lot of trouble over a lousy £3OOO. He made a gesture to prill a cheque book from his pocket and said he would pay the lot then, less 8. per cent. Sellers, of course, refused. Sellers’s ordinary account was overdrawn by more than £2OOO at that time. Sellers could not have borrowed any more money on his own securities. Racing Conference Account. The Racing .Conference No. 2 imprest account could be operated on Sellers’s signature alone, witness said. The following cheques were drawn on the account: 29/9/38, payable No'. 1683, £lOO, cashed over the counter; 18/10/38, payable No. 1732, £l5O, cashed over the counter; 23/1/39, payable No. 1783, £3OO, cashed over the counter; 9/2/39, payable No. 10S2, Mrs. J. H. Hall, £l5O, cashed over the counter; .19/4/39, payable No. 1859, £BO, cashed over the counter; 3/6/39, payable No. 1915, £750, cashed over the counter; total, £1530. Evidence regarding cheques drawn in favour of either Chrystall and Aston was given by Isaac William Bolton, bank officer, Commercial Bank of Australia, Limited, Christchurch. Alan Alexander Noble, inquiry officer, Post and Telegraph Department, Wellington, gave evidence of moneyorder telegrams transmitted by Aston to Aston and Sellers to Aston, and of various telegrams and cables. Bank Officers’ Evidence. Alfred Leslie Smith, ledger-keeper, Commercial Bank, Nelson, gave evidence of two accounts opened at the bank by Aston. Evidence" of telegraphic transfers of money from Sellers to Aston and Chrystall to Aston was given by Keith Russell Reed, bank officer, Commercial Bank, Wellington, who said that on one occasion Sellers, Aston and a Miss Claridge called on him, and Sellers promised a bottle of champagne if he could get a remittance of £lOO through to Sydney that afternoon as Miss Claridge was leaving that afternoon for Sydney. The remittance, though approved by the Reserve Bank, was not made. Witness did not get the champagne. Evidence of other banking transactions was given by Eric Mollison, bank officer, Bank of New Zealand, Wellington; Sydney Dennis Vincent, bank officer, Bank of Australasia, Christchurch; Clarence Clifton Challies, bank officer, Union Bank of Australia, Limited, Nelson. Donald Gordon Johnston, public accountant, Wellington, auditor to the New Zealand Racing Conference, said the No. 2 imprest account of the conference at the Bank of Australasia was used for paying half-monthly salaries and comparatively small payments to jockeys and trainers who were injured. Witness first became aware of irregularities in the account on June .13, 1939. He read a report be made to the president of the conference, Mr. J. .S. McLeod, on the position. It showed a total shortage of £1167/4/6. . Total Irregular Drawings. Cross-examined by Mr. Leicester, witness said he had no knowledge that. Sellers could draw in advance against his salary. Witness had no knowledge that Sellers previously had ever drawn such advances. To Mr. Russell, witness said the No. 2 account ran on on overdraft. It should have been squared at the end of each month, but was not. Re-examined by Mr. Cunningham, witness said Ihe total irregular drawings were £1530, of which £362/15/6 was returned, mainly through salary adjustments.

Charles Wlnforton Tringliain, barrister and solicitor. Wellington, and a member of the executive committee of the Racing'Conference, said Sellers had been a faithful secretary to the conference. f>n June l<t witness first heard of irregularities, when a report by the auditor was read to the executive. Sellers was called in and lie suggested Chr.vstall be called also. Clirystall strid he was taking some hn|K>rtant papers to Sydney and would lie able to lift substantial slims of money from the British Admiralty and that everything would Ih? squared up. When asked to prcduce the documents, he said they

were secret documents iu the hands of a bank and that he could not produce them. Mr. Motion asked Chrystall several questions, witness said. Chrystall understood the position Sellers was in with the Racing Conference. The committee agreed to postpone any further action for 14 days to give Sellers and the others associated with him time to clear up the position. Cross-examined by Mr. Leicester, witness agreed Chrystall said he was sorry the position was as it was and that the money would be forthcoming in the following week. Mr. Leicester: Was it in order for Sellers to make advances to himself from the No. 2 account? Witness: I don’t think it was. Subject to the account being squared, there was no objection to Sellers making a temporary advance to himself?— I should think it would be very improper. I think the auditor would have called our attention to the fact that Sellers was drawing his salary in advance. Witness said he could not recollect any scheme put forward by Chrystall for a land telephone system to eliminate bookmakers. He had no recollection of anything about such a proposal appearing in the minutes of the conference. Committee Member’s Evidence. William Claud Motion, farmer, Waiuku, the Auckland representative on the New Zealand Racing Conference executive committee, who was present at the meeting of the committee on June 16 when the discrepancy in the No. 2 imprest account was disclosed, said he had not seen Chrystall before the meeting. Chrystall told the executive he was aware of the serious position Sellers was iu and that the money would be forthcoming the next week. , . . Cross-examined by Mr. Leicester, witness said Chrystall stressed the secrecy of his obligation or pledge. His assurance was that once he got the documents to Australia the money would be released. ■ Further Personal Loams. Thomas Coltman, licensee of the Grand Hotel, Wellington, said he had known Sellers for many .years. On April o, 1939, he gave Sellers a personal loan of £2OO, and received a promissory note tor £2OO. Sellers said he wanted the money for about 14 days. Witness on June 16 made Sellers a second loan of £l2O. Sell” ers seemed to be very excited and upset. Neither of the loans had been repaid. The depositions in the Lower Court of Thomas Sutherland Cornwall, now serving with the New Zealand Expeditionary Force, were put in. In July, 1939, he was a barman in the Carlton Hotel, Wellington, aud his evidence related to a visit by Sellers, Chrystall and zVston to the hotel. i Herbert Richard Churton Wild, barrister and solicitor, Wellington, now with the special force at' Trentham, said he had known Sellers for <1 number of years and from February, 1939, lodged at Sellers’s house. He had met both the accused at Sellers’s house. Aston came late one night iu March with Sellers to stay the night. Aston was pretty noisily drunk and called on the housekeeper to get out of bed and make him some tea.. In .May Aston rang for Sellers from Christchurch, and as Sellers was out left a message that Sellers was to go to Christchurch by the first plane next morning. Sellers left for Christchurch that morning.

Trips to Australia.

Sellers after May was very frequently iu telephone communication with Aston and Chrystall, who visited his house about the middle of May. Aston had a girl aged about 23 with him and said he was going to Australia. About the middle of June Aston turned up again. He had another girl with him this time, a Miss Claridge, and said he was going to Australia again. . On June 16, the day the Racing Conference committee met, Chrystall came to Sellers’s house for tea. Sellers was m the best of spirits. He said he had been on the mat, but that Chrystall had made things right for him. lie said: Good old Sammy. He like a num. Chrystall went off to Australia. Sellers sent cables to him and was daily expecting a cable from him. On July 2 Sellers left the house on receipt of a telephone call early in the morning. He returned late at night. Next morning, July o, Sellers got up quite early, was. in the very worst state of worry, ana went to the city about 8.30 a.m. His body was found on August 2 at Ngahauranga. Special Plano Trips. Witness said Sellers had taken several special planes for trips to Christchurch and Nelson. . As trustee under Sellers s will, witness said he had received no payments from either of the accused and had found no documents which defined Sellers s interest. Cross-examined by Mr. Leicester, witness said Sellers changed toward, the end of the period he lodged at Sellers s house. Sellers appeared, in his relations with Aston, to be ordered about. Mr. Leicester: Would it be an exaggeration to say Aston appeared to have some hold over him? Witness: No. Did you notice any tendency on Cnrystall's part to order him about?—lt would be in the nature of requests m Chrystall’s case. Did it appear to you that Aston was the dominating personality of Aston and Chrystall?—l think Aston was the directing force of the three. Did you see any evidence of attluence on the part of Chrystall?—On the contrary, he was dependent on Sellers tor train fares and boat fares. ' . Did Sellers appear to be obsessed with matters relating to this patent or process? —He discussed it with the .housekeeper and myself latterly. Chrystall appeared to have a deep conviction and belief in this? —Yes, he seemed to believe in it thoroughly. Secretarial Work. To Mr. Russell, witness said there was always an atmosphere of strain _ when either Aston or Chrystall were in the house with Sellers, the housekeeper, and witness. Mr. Russell: What was it you understood the girl was there for? Witness: I understood she was to fly from Sydney to Melbourne, with certain documents, and do secretarial work generally. Re-examined by Mr. Cunningham, witness said he knew Sellers was paying out large sums, and Sellers asked witness whether he knew where he could get more money. ■ Sybil Clark, Hawke's Bay, employed as housekeeper by Sellers for nearly three years before his death, said Chrystall first carie to Sellers’s house about October, 1937, and Aston some time afterward. Sellers went to Nelson quite often. , „ „ Later witness noticed Sellers was very worried. On July 2 he left home at 8,30 a in , aud went, to the Carlton Hotel, after a message from Aston, and came home about 1 a.m. the next morning. He left the house at 8.30 the same morning. He was desperately worried. That was the last, witness saw of him. Samuel Dunn, licensee of the Carlton Hotel, Wellington, said Aston hooked in at the hotel on July 2, 1939. His father, Miss Claridge, and Miss Murray, were with him. He left the following night. Sellers came to the hotel about 9 a.m. on July 2, and he and Aston were at the hotel practically the whole day. Sellers appeared to be drinking heavily. About 9 a.m. the next day, Sellers was again at the hotel with Aston. They were talking together in the hall. M itness last saw Sellers about .19.30 a.m., apparently in the act of leaving the hotel. The Hut Property. William Edward Brown, district land registrar, Nelson, produced a certified copy of the freehold title to the property known as The Hut. Tahunanui. On October 1, 1937. Alma Monica Clarke, married woman, Tahunanui, was the registered proprietor. At the time of the transfer there was a mortgage on the title securing the sum of £1750. That .mortgage was still on the title. Mrs. Clarke ‘was the owner till December 19. .1939, wheu it was transferred to Electric

Elements, Ltd., Christchurch. It was signed bv Gordon Aston, as Mrs. Clarke s attorned and by H. M. Chrystall, ns director of Electric Elements. Cross-examined by Mr. Leicester, witness said as far as the record . went Chrystall’s only concern was as a director of Electric Elements to certify that the transfer was in order. . Alma Monica Clarke, married, cashier, Wellington, said she bought The Hut propertv, Tahunanui, for £2750, exclusive of stock, and ran the tea rooms there for 16 jnonths till December, 1937. Her husband, who was working at the Trafalgar Hotel, left his job and signed a contract to work for Aston. The hearing was adjourned at 5 p.m. yesterday till 10 a.m. today.