THEFT OF GOLD ALLEGED

Press, Volume LXXIX, Issue 23918, 9 April 1943, Page 6

THEFT OF GOLD ALLEGED

3650 OUNCES WORTH £31,496 ACCUSED COMMITTED FOR TRIAL Pleading not guilty to a charge of the theft of alluvial gold worth £31,496, Leo Edward Morland, aged 41, an Australian metallurgist, was committed to the Supreme Court for trial when the Crown’s case against him was concluded in the Magistrate's Court yesterday. . The evidence of a corporal in the Royal Canadian Mounted Police and of a United States customs official concluded the case for me prosecution. The charge is that Morland, on or about October 29, 1940, at Arahura, near Hokitika, being a servant in the employ of Arahura Gold Dredging, Ltd., stole 3650 ounces of alluvial gold valued at £31,496, the property of the company. Mr E. C. Levvey, S.M., was on the Bench, and Mr A. T. Donnelly, with him Mr A. W. Brown, appeared for the Crown. Morland was represented by Mr J. A. Scott, of Wellington. Harry Amos Maxted, a corporal in the Royal Canadian Mounted Police, said that on February 12, 1941, he was engaged on investigation into the activities of Morland, who had been arrested at Blane, Washington, for smuggling gold over the border from Canada to the United States of America. On February 13 he went to Seattle, Washington, with his officer in charge, Inspector Cripps, and on the following day left with F. H. Bradt, a United States customs agent, for the King’s County Gaol, where Bradt introduced him to Morland. Assets In Canada

The witness was left alone with Morland and had asked if he (Morland) wished to make a statement as to the assets he had in Canada, but the accused, before giving any information, said he preferred to have a talk with his lawyer, a Mr Garden. He later interviewed Morland in the presence of Mr Garden, and Morland said that he had assets in Canada equal to the value of those seized by the United States authorities, but he would not tell where the gold was stored. He promised later to disclose the whereabouts of the gold. A person landing as an immigrant in Canada was required to make a declaration of his assets. Morland did not declare any gold. On February 15, the witness said, he returned to Vancouver with Inspector Cripps and went to a room that had been rented by Morland. Here they found nine boxes and two large campphorwood chests. Another smaller chest was later found at a hotel. The witness produced phtographs that had been taken under his direction and supervision. The first photograph showed 12 boxes, the second a close-up of box No. 6, and the third the interior of box No. 6. The fourth showed a box with a lining of three-ply which, when removed, showed 12 sections which, cut out, left cavities in the box. The fifth photograph showed gold bars found in the cabinets, and the sixth the 54 bars recovered in Canada on February 15. Maxted produced box No. 6, and explained that a covering of brown paper Inside had secreted the cavities. There were nine boxes of that type. The boxes contained metallurgical instruments, books, personal belongings, etc. The two camphorwood chests, sections of which he produced, showed small trays about half an inch deep. Each of the three boxes contained 12 bars which were secreted in the cavities. False bottoms of three-ply, over which green felt had been placed, gave the appearance of the floor of the box. In several boxes, he said, the cavities were empty, the gold having been removed. Gold Recovered In these boxes 53 bars had been recovered and one found at the hotel made a total of 54. When the gold was discovered he and his associate, Corporal Taylor, placed the gold under seizure in accordance with a writ issued, and it was placed im.%, vault after identification marks placed on it,

The witness added that in MOfland’s room at the Hotel Georgia he had found a diary, which he produced. Figures in the diary referred to gold bars stored in each box and showed that 124 bars weighing 3397.71 ounces had been tabulated. The total weight of each box and the weight of each individual bar were also given. The diary indicated that 124 bars were brought to Canada and of these 57 were seized in the United States, also that 13 bars had been disposed of, six to a jewellery firm in Vancouver, four to a man named Jacobie, and the temainder in Massachusetts, where, it was alleged, Morland had been using a laboratory for the manufacture of pure gold for signet rings. The price of gold in Canada at that time was 38 dollars 50 cents an ounce. Morland had obtained 29 dollars and 30 dollars an ounce.

The witness said tuat the gold was taken to the assay office for security and then sent to Ottawa to be stored in the Royal Mint. He produced a copy of the assay report made in Canada.

Detective - Inspector Cripps, of Seattle, and he had interviewed Morland and his lawyer Garden with the object of making investigations into the activities of one Jacobie who, it had been alleged, was interested in the smuggling of gold. He was present during the taking of Morland’s evidence on commission in Seattle on an order by the Supreme Court. Evidence of Customs Officer

Arthur S. Atherton, a United States customs official, said that on February, 11, 1941, he'was at the United States Customs House on the international boundary between Canada and the United States with Fred H. Bradt. A car, bearing the British Columbian registration, drove in from the Canadian side. It was driven by Morland, who was the only occupant. When the car arrived it was examined by customs officers. Any person coming in under those conditions was required to make a written declaration. Morland made a declaration that he had nothing in the car except personal effects. He was allowed to proceed, but the witness and Bradt stopped him and compelled him to drive to a garage where further investigations were made. In the rear compartment of the car he noticed the lining was loose, and on opening it further he found between the lining and the body of the car a small package about 3x5x7 inches covered with black cloth. He took it out and found another which he thought very heavy for its size. He asked Morland about it and was told that it was gold. He cut through the coverings and found a yellow metal. Asked if he had any more Morland said there were two more packages on the right-hand side of the car. Morland had said that he might as well tell the witness, for he would find them anyhow. The witness then told Morland he was under arrest and the gold and the automobile under customs seizure.

Morland replied: “Is that an offence? Can’t a man bring his own property into this country without it being seized?”

The witness produced photographs of the inside of the back of the car which had been taken under his directions. Bradt took charge of the gold and he (Atherton) drove Morland to the office in Seattle. He had power to do all this as a customs officer. He later took a sworn statement from Morland, a copy of which he produced. The original was in the care of the United States Attorney at Seattle. After making the statement Morland was confined to the King’s County gaol for smuggling in contravention of the Tariff Act. When tried Morland pleaded guilty and was sentenced to a term of imprisonment in the McNeil Penitentiary, Washington. The witness corroborated the evidence given by the previous witness as to a list found in Morland’s possession flying with the bars found. On March fl’ I™?, he added, he was present at the taking pf Morland’s depositions. He produced a copy bearing the seal of the

Court together with a certificate signed by the British Vtee-Consul at Seattle. The witness afto produced two gold bars of the 57 recovered, which he had received from the United States Marshal under order from the Court. They had not‘been out of his possession.

This concluded the evidence for the Crown.