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He was fascinated by spiritualism after the death of his son Kingsley, killed in the Battle of the Somme.
The painting called 'The Rearguard', depicts the spirits of Australians killed in the Gallipoli campaign in the First World War.
The 'psychic" oil painting, captures the beach at Gallipoli, where thousands of Australian and allied servicemen died in 1915.
After a visit to Menin Gate memorial in Flanders, Longstaff was inspired to create this painting. The painting was later bought by Conan Doyle in 1928.
He complimented the painting saying, "It is one of the most remarkable pictures I have ever seen."
The painting is now put on auction Bonhams auctioneers in an Australian sale in June and is expected to fetch 12-24,000 pounds.