WELLINGTON CASE

Manawatu Standard, Volume LX, Issue 136, 9 May 1940, Page 5

WELLINGTON CASE

EVIDENCE CONTINUES. “MR X” INTRODUCED. Per Press Association. WELLINGTON, May . 8. \ Evidence was continued' in tlie Supreme Court to-day in the case in which a charge of conspiracy by deceit to defraud the former secretary of the New Zealand Racing Conference, Hartley Roy Sellers,' of more than £6OOO, and six other associated charges are being preferred against Harvey Maitland Chrystall, engineer, aged 52, of Nelson, and Gordon Percy Aston, of Christchurch. A. C. Jessep said that at an interview on. March 5, 1938, Chrystall said there was no written agreement between himself and Sellers, or between Aston and Sellers. Chrystall also said quite definitely that they had been conducting experiments at Nelson for some time. He refused to give any details and witness had some difficulty in obtaining the name of the inventor. To Mr Leicester, witness said the matter never reached the stage of fixing an actual premium for the suggested guarantee of-£3OOO by Nathan but Chrystall suggested that if a guarantee could be'given to Sellers a premium" of £2OOO payable in London, could be given. Witness mentioned that in the.discussions with Sellers and Chrystall he had been; invited to believe a number of things which as a professional man lie - felt he could not believe in the absence of documentary evidence. GUARANTEE SOUGHT. Ernest Palliser gave evidence that he had known Sellers for 25 years and was one of his closest friends. Witness first met Chrystall at Sellers’s office in January, 1938. At that time witness had lent Sellers "numerous sums totalling £SOO. He had no idea for

what purpose Sellers was borrowing. The security was a series of i.o.u.’s, just personal loans. Ho had a conference with ' Sellers and Chrystall in March, ■ 1938, when he first learned what Sellers had been borrowing for and'that further was required. Sellers •asked if witness would be prepared to act as a guarantor at the bank for tlie ; amount to be advanced to Chrystall and • “Mr. X.” Witness intimated that lie could not give a guarantee. Chrystall gave a fairly clear statement of the patent and its purpose and indicated that it had been sold to the Admiralty for £280,000. He gave the name-of the inventor as “Air X” and said the Admiralty had already paid over £BO,OOO, which had been used in the purchase of steel. Witness said he had arranged for Sellers and Chrystall to meet Batt and he was present when the meeting took place, when the same story was told. Witness had nothing more to do with the arrangements between Batt, Sellers and Chrystall. “EVERYTHING COMPLETED.’’

About the middle of Alarch he received a promissory note for £IOOO payable in London for advances he had made to Sellers. The note was en-

dorscd by Clirystall. Witness never asked lor any consideration for bis loans to Sellers. He was given tbe promissory note by Sellers, who intimated that Chrystall was prepared to pay an extra £SOO. Palliser said he first met “Mr X’’ in . May, 1938, with Batt, Sellers and Chrystall. “Mr X” proved to be Aston. Palliser extended payment of his promissory note for £1240 to September 18. At a later meeting Aston said the Admiralty had deposited £BO,OOO and final payment would be made on the following March 31. Sellers’s share was mentioned by Clirvstall as being £20,000. Tn October Aston made a very definite statement that everything was completed and the Admiralty required him to arrange for a quadruple plant to increase the production of metal. Subsequently Aston emu the Aw ate a was fitted with special, plates at Sydney and told them they could see her at the wharf. Witness had not paid the money on March 31, 1939, and on the following day ho was in Sellers’s office, when Sellers rang Chrystall in Christchurch. The effect of what Chrystall said was that a cabled statement by Lord Chatfield regarding the anti-submarine device ought to satisfy | any doubts they might have as to the genuineness of the patent. Palliser said that after' Sellers had disappeared Chrystall returned from Sydney. Palliser told him that he thought he and Aston were the two biggest rogues under the sun. “I may have used stronger words,” lie said. “I was very annoyed and had learned of happenings of which we bad had no knowledge. He still pleaded that everything was all right and that they were not what we thought they were.’* Mr Cunningham referred to the suggestion made to the police by Chrystall that Palliser and Batt were holding a pistol at the heads of ac-

cuscd iii order to get / payment and that they wanted prompt settlement so that they would not ho drawn intu Sellers’s inquest and, further, that a 24-hour ultimatum was given of a settlement or arrest and prosecution. Palliser: The answer is we had nothing to lose in exposing this matter. We had lost a friend and in the interest of society it was our duty to go to the police. It was not a question of money.

“NO RISK.”

Edward Augustine Batt, managing director of Edward A. Batt and Company, Limited, Wellington, said he met Chrystall through Palliser, and was invited to guarantee Sellers’s account up to £3OOO. It was explained that Chrystall and “Mr X,,” the inventor were sworn under the Official Secrets Act. “Chrystall and Sellers assured me there was no risk whatever and that the invention had been sold to the Admiralty,” said witness. “I agreed to give tho guarantee and the next day the guarantee was completed. They were to pay off the bank on June 8 and pay me in London £6OOO free of exchange.” Witness said he believed the assurances he had received. About two months afterwards he met “Mr X” in Sellers’s 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 accused on the lines of Pal User’s evidence. In November, 1938, said Batt, he was passing through Nelson and went to “Tho Hut,” which ho found to be a tearoom. In May, Aston said everything depended on tlio release of the mortgage of £750 on “The Hut.” He said payment would bo made about four days after his arrival in Australia. He returned on June 1, left for Australia again on June 16, and arrived back on July 1. On ‘July 3, tho day Sellers disappeared, Aston asked whether ho could see witness urgently. Witness went to the Carlton Hotel and found Aston very agitated, and dressed as if ready to leave. Ho asked whether witness had seen Sellers. Aston said Sellers had cleared out and ho had been with him that morning till 10 a.m. He said: “I suppose you know he has embezzled tho conference funds.”

Witness said he was not awaro of that, and was very surprised. Aston said he had told Sellers everything was all right and that he had the money to make up Sellers’s defalcations and would pay it next morning. Chrystall had gone to London and was going to pick up £27,000. If lie chose to pay witness os in tho pound or nothing, witness must'accept that as final. Witness told him, after hearing that, that he was not surprised Sellers had disappeared. Aston said tho Jews in Australia had got tho rest of the money from tho Admiralty. Aston rang witness from Christchurch and said there were stramre happenings in regard to Sellers in Christchurch. He said lie had paid Sellers £4OOO and held his receipt for it, and this was intended to release witness from the guarantee at the bank. He said witness would get all that was duo to him. HELD TO CONTENTION!, On Clirystall’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 lie would still maintain that lip and Aston had over lmd a contract with the Admiralty. He said most certainly they had. He was particularly cautious and was not prepared to ho frank. Witness lost patience and Chrystall seemed to bo very agitated. Wilfred Hugh Ilobertshaw, stock and sharebroker, and for six years till December 16, 1939, manager of the Bank of Australasia, Wellington, said Sellers was a customer of the bank and- ■ had introduced Chrystall and Aston to him. Several’ cheques from Sellers’s ordinary 1 account were jpaid out to accused as follows: 1-10-37, £IOO to Chrystall; 13-10-37, £4OO to Chrystall; 29-10-37, £IOO 3s 6d to Chrvstall; 2-12-37, £l2Ol 10s-(id to Chrvstall; 25-2-3 S, £3OO 8s 6d to Chrystall; 1-7-38. £SO to Aston ; 5-S-38, £2OO payable to self and forwarded to Nelson for credit to Chrystall; 17-8-38, £l5O 14s 9d to Chrystall, sent to Sydney to the credit of Aston; 16-12-38. £6B, payable to Aston and endorsed by Chrystall. The hearing was adjourned till tomorrow' morning.