ARAHURA GOLD

Grey River Argus, 24 March 1943, Page 4

ARAHURA GOLD

ALLEGED THEFT OF 3,650 OUNCES Charge Against L. E. Morland CHRISTCHURCH, March 23. Leo Edward Morland appeared at the Magistrate’s Court ,to-day charged with the theft of 3650 ounces of alluvial gold, of a total value oi £31,496, the property of the Arahura Gold Dredging Company.' Limited. Morland was described as a metallurgist, of Australia. It was alleged that he stole the gold at Arahura, on or about October 29, 1940, when he was employed by the Company. It is expected that the hearing of the case will occupy four days, ’twenty witnesses are to be called, including a’ corporal of the Royal Canadian Mounted Police, and a United States Customs agent. William John Ellis, Greymouth, manager of the Company in evidence said, that Morland had been engaged in Sydney, as a dredge metallurgist and had worked for the Company between January and October, 1940. In September, Morland told witness that he wanted to leave New Zealand for Canada at the end of October, to open a metallurgist’s and office, as mining was booming in Canada. During the time Morland had been employed by the Company there had been no reason to suspect he had been stealing gold or amalgam. Ellis said his suspicions were- first aroused when he saw a report in a newspaper that Morland had been arrested at Blaine, on the border of the United States and Canada, on a charge of smuggling amalgam. Ellis said that Morland could have removed the quantity of gold seized in America during the time he was employed by the Company. LATER.

In the case against Morland, there are 22 witnesses, 15 of whom were heard to-day. Among them are a Corporal of the Royal Canadian Mounted Police, a Customs Agent from the- United States a metallurgist, mining registrars, and analytical chemist, and a bank manager. Mr A. T. Donnelly, with him, Mr A. W. Brown, appeared for the Crown.

Mr J. A. Scott, of Wellington appeared for Morland. William John Ellis, Company Manager, Greymouth, in his evidence, said that he had been engaged in the mining industry for fifteen years, and he had acted as General Manager of Arahura Gold Dredging Limited since August, 1939. After describing technical operations involved in the recovery of gold, witness said that approximately 91 per cent, of the gold was caught on riffle tables. The remainder was caught on copper amalgamating plates..

METHOD OF GOLD RECOVERY.

Witness said that the gold recovered each day was weighed, when in the form of amalgam, and was locked in the dredge safe, by the metallurgist, who had a key to the safe. A record of the weight of the amalgam was handed by the metallurgist to the mine store clerk for phoning to Greymouth. A duplicate 4 copy was held by the metallurgist. The riffle tables used for the recovery of gold, said witness, were locked when not in use, and the metallurgist held the keys.

Retorting and smelting operations were described by witness, who said that the metallurgist remained In the gold room until the arrival of an officer of the Bank of New South Wales, who took the gold to Greymouth. The gold bars, which were of a maximum weight of 150 Troy ounces, were weighed in the presence of a Company representative, and later were sent to Sydney for assay. MORLAND NOT SUSPECTED. Witness said that Morland was engaged by the Company’s Sydney office, and was employed from January 25, 1940, until the end of October, 1940. A statement of the bullion sent to Sydney, previously produced, was for gold recovered during the period of Morland’s service with the company. In September, 1940, Morland told witness that he wished to resign at the end of October, and to proceed to Canada to open a metallurgical and assaying business, as mining was booming there.

FIRST SUSPICIONS. “1 had no reason to suspect him of stealing amalgam or gold,” replied witness, when asked if he had any reason to suspect Morland during his employment with the Company. “My suspicions were first aroused when I read in the “Grey River Argus,” on February 17, 1941, that a person, named Morland, had been arrested at Blaine, Washington, on the border of the United States and Canada, for smuggling gold.” Witness said that amalgam recovered from the amalgamating plates could be carried in a man’s pocket. In a two-ounce tobacco tin, it was possible to place approximately 58 ounces of amalgam, which would equal, approximately, 35 ounces of gold. Morland did the final processes with the gold and the amalgam when he was alone in the gold room on the dredge. He also scraped the amalgam off the amalgamating plates when he was alone. It was possible for Morland to take amalgam away from the dredge, and he could have removed the quantity of gold seized in America —over 3,000 ounces—during the nine months that he was with the company.

SMELTING AT HOKITIKA HUT. Richard Bryce said that he was the company’s Chief Metallurgist.. He had offered Morland help in the retorting and smelting processes, but Morland had said that he preferred to work alone. Morland had the assistance of the clean-up foreman in carrying the amalgam from the dredge to the gold room. Witness said that he had never suspected Morland of stealing amalgam or gold. In March, 1941, he was asked by Ellis to investigate the possibility of a loss of gold during the term of Morland’s employment. On March 29, he went to a hut, in Wharf Street, Hokitika, in company with Detective Sergeant C. H. Davis, and took sweepings from round the base of a stove and a crack in the doorstep. He washed and panned these sweepings. “I found small globules of mercury, free gold, and small beads of gold,” said witness. This would be consistent with retorting and smelting having been carried on in the hut. The same result was obtained from . further | sweepings. BORE VALUES NOT REALISED. “There was a difference of approximately 3,650 ounces,” said the witness, when asked if the recovery values of the gold- squared with the bore values o f the claim during the term of Morland’s employment. He added that the ratio of recovery' value to

bore value was 56.4 per cent, before Morland came, and 44 per cent, during the time he was employed. Witness said that Morland was away from the dredge for three days. The hut, which he had leased, at Hokitika, would not be required tor the Company’s business. Goods shown on an invoice, produced, as having been bought by Morland would not be required for the dredge. Asbestos sheets, which were mentioned on an invoice, could be made into gloves for protection against excessive heat. Coke which had been shown to him could have been used Lor retorting and smelting. William Silcock, soldier, who was Clean-up Foreman on the dredge from the middle of 1939 to November 1941, said that Morland did the weighing of the amalgam himself, and was the only person who had access to the record book. He assisted Morland to take the amalgam from the dredge to the gold room, and left it in his charge. Before Morland joined the Company, witness had assisted in the retorting and smelting, but did not do so while he was there. Walter McNabb, storeman, said that he was in charge of the store in the gold room on the, Company’s dredge property. Morland gave him details of the gold recovered. There was a slip for daily and weekly clean-ups, and the total was held for retorting. When Morland first came he (witness) helped him with the retorting and the smelting once or twice, but Morland then said that he preferred to work on his own. Reginald Ernest Taylor, manager of the Greymouth Branch of the Bank of New South Wales, said that there was no possibility of anv interference with the gold from the time thg.<t it left the gold room until it reached the bank. ,

STOVE BOUGHT. Paul Reinton, hardware manager, of Hokitika, said that he knew Morland, who had purchased a number of articles, some on behalf of the Company, from his store. An illustration of & certain type of stove, produced, was similar to a stove sold to Morland. William Cunningham, yardman at a timber mill in Hokitika, said that Morland had purchased red pine and rimu timber from the mill. The timber in the bottom of a box, produced was similar to that sold to Morland. Harold Cyril Rowe, Collector oi Customs, Hokitika, said that on June 17, 1940, he inspected five cases that had been shipped from Sydney for Morland. He inspected them in Morland’s hut, in Wharf Street, which contained a quantity of dressed timber. carpenter’s tools, and a stove. The cases contained books and instruments. Later, witness inspected two more cases of books and a carved chest, containing personal clothing. He gave Morland a clearance for the cases, which he inspected from top to bottom. Gold bars could have been concealed in the cases. COKE OBTAINED. Archibald Neil, a soldier, and formerly licensee of the Hotel Westland, Hokitika, said that Morland stayed at his hotel until October, 1940. On several occasions, he obtained bags of coke from witness, saying that he was feeling cold, and wanted it for his ollice lire. When Morland left, witness helped to carry his oases and he noticed that they were very heavy. LATE FOR “AW ATE A.” Constable Andrew James Cummings, attached to the Detective Branch, at Auckland, said that passengers leaving on overseas vessels had to produce a permit to leave New Zealand, (and a financial declaration, and to claim their luggage before. they were allowed to go on board. Then they were not allowed off, except for some good reason. Morland sailed on the Awatea, November 5, 1940, and witness had a special reason to remember him. The ship was due to sail at 9 p.m., but there was a delay, and it did not leave until 10 p.m. The passenger list was completed, except for Morland, at 8.20 p.m., but Morland did not arrive until 9.45 p.m. Two mining Registrars, Wilham M'urray Fraser, of Hokitika, and Frank Bird, of Greymouth, said that Morland had no gold dealer’s license, and no mining privileges to win gold in their districts. Two inspectors of gold mines, George Wall Lowse, and Reginald Campbell Ruffin, described how thejr took samples of gold from thirteen West Coast dredges, including the Arahura dredge. These samples were registered, and insured,' and were sent to the Mines Department, in Wellington. The Court adjourned until 10 o’clock to-morrow morning. NEWS OF MORLAND’S ARREST. The cablegram in the “Grey River Argus” on February 17, 1941, referred to by the first witness, Mr. Wm. John Ellis, read as follows: — (Received, February 16, 7 p.m.) SEATTLE, February 14. Leo. E. Morland, aged 39, described as an Australian, is alleged to have attempted to smuggle his lifesavings, consisting of 65,000 dollars worth of gold bars, from Canada. He was arrested on the Canadian border. The Assistant-United States Attorney, Mr. Pellegrini, said he “would seek ‘the forfeiture of the metal, which was found between tthe lining and the side of Morland’s autoi mobile.”