ALLEGED THEFT OF GOLD

Press, Volume LXXIX, Issue 23947, 14 May 1943, Page 6

ALLEGED THEFT OF GOLD

CHARGE AGAINST METALLURGIST SUPREME COURT TRIAL The hearing of the charge against Leo Edward Morland of the theft of 3650 ounces of gold valued at £31,496, the property of the Arahura Gold Dredging Company, Ltd., entered on the second day of hearing at the Supreme Court yesterday, before Mr Justice Northcroft. Mr A. T. Donnelly, with him Mr A. W. Brown, appeared for the Crown, and Mr J. A. Scott, of Wellington, represented Morland. The hearing of the evidence of all witnesses was completed in the morning, after which some time was occupied in reading the depositions taken at Seattle in a dispute to settle the ownership of the gold. The United States of America, the Dominion of Canada, the Arahura Dredging Company, and Morland were all disputants in this claim. The evidence given by Morland under crossexamination concerned his dealings in gold, in which Morland said he had been interested for 18 years. Over this period he had collected a large quantity of gold, which he had stored at his father’s place in Sydney. His parents did not know that he was collecting gold. He was living apart from his wife, had sold refrigerator parts, and breath purifying concoctions and sheep dip before going to Papua and later to New Zealand. He had gathered together metallurgical equipment including muffled furnace, iron moulds, muffled tongs, jeweller’s tongs. nitre, borax glass, and borax, assayer's leads, cupels, scarifiers, chemical glassware, and other material with which to carry on his work. Some of it was stored at his father’s house and some at a neighbouring garage. It was with the material that he had produced the ingots which had been brought to Canada. All the ingots he had brought to Canada had been cast in a mould 6in by 3in. Much of the evidence given in crossexamination by Morland referred to his financial position with the intention of showing that in 1937 he was destitute, had applied for a reduction in the maintenance paid to his wife, and owed several sums of money. Morland had said that at the time of his marriage he was worth £ISOO to £2OOO in cash and bullion. This was kept at his home in a small cash’ box and included £7OO in cash. His father had been paying his maintenance and he had since been reimbursed. The company had paid his expenses when he went to Papua, and his father had given him £2 or £3. When experimenting with breath purifying tablets he gave it up because there was no money in it. He did not remember having testified in Sydney that he was destitute, that he owed money, and had not paid income tax amounting to £5. The evidence of the different witnesses had previously been given ■at the hearing in the Magistrate’s Court, and Mr Scott, who represented Morland, did not cross-examine at any length. Analysis of Gold Stewart Henry John Wilson, a physical chemist at the Dominion Laboratory, Wellington, said that he had been handed certain drillings of gold for analysis (a report of which he had made for submission to the Government). The gold was termed Canadian, American, and Arahura. * To Mr Scott, witness said that he had made his first assay in February, and since he had given evidence in the Magistrate’s Court he had gone through his report carefully and he had made minor alterations. An assay had been made by George Stanley Lambert and Wilson had found that he had over-estimated the difference in one analysis. Only five bars of gold had been presented to him and he thought that five drillings from bars out of 111 would give a good general average. The fairest way of making an analysis had been adopted, He had examined the drillings separately and collectively. If he wanted to find the average composition he would put all the samples together. The only samples analysed were those mentioned in the report. There were no Australian golds. George Stanley Lambert, a chemist at the Dominion Laboratory, Wellington, read a report he had made on an assaymade from drillings from five gold bars. His assay was not consistent with gold collected and smelted over a long period. To Mr Scott; Witness did not think it would have made any difference if more bars, cast the same and of the same appearance, had been presented for analysis. It would be a reasonable assumption to say that other bars would check up with the ones experimented on. If bars were collected over a period he would expect to find a difference. Frederick Thomas Seeleys, chemist and assayer, and senior analytical chemist at the Dominion Laboratory, gave evidence to show the fineness of the different samples of gold handed to him. Witnesses from Abroad Harry Amos Maxted, a corporal in the Royal Canadian Mounted Police, investigation branch, gave details of his interview with Morland, who was represented by counsel. Persons entering Canada, he said, were required to declare all assets. This was a war-time measure. He told of visiting the Georgia Hotel, Vancouver, where Morland was living, and also 416 Pender street, Vancouver, and finding a number of boxes containing bars of gold which had been secreted in cleverly arranged cavities which

were concealed by a false bottom of three-ply wood. He produced photographs of the boxes, also a box showing the cavities which had concealed the gold, and pieces of wood used to make a false lid for the box. Arthur S. Atherton, a United States Customs official, stationed at Seattle, repeated the evidence given in the Magistrate's Court as to searching Morland's car at Blainp, in the State of Washington, and finding bars of gold. There was a law in the United States that anyone entering the States was required to declare [n writing if the value of assets totalled more than 25 dollars. Morland had not declared anything. Witness gave details of taking charge of the motorcar and of arresting Morland. In a statement which was made under oath, Morland said he had accumulated gold in Australia. The statement, however, he had refused to sign. The case will be continued at 10 a.m to-day, when counsel will address the jury. ________________