ARAHURA GOLD

Grey River Argus, 25 March 1943, Page 4

ARAHURA GOLD

THEFT CHARGE MORLAND’S U.S.A. EVIDENCE Predge Samples Compared

P.A. CHRISTCHURCH, March 24. Evidence of having arrested Leo Edward Morland on the afternoon of August 24, 1942, as he arrived at Wellington on board an overseas vessel was given by Detective-Ser-geant William Robert Murray, of Hamilton, when the hearing of the theft charge against Morland was resumed this morning. Murray said that when he arrested Morland, accused said he would plead not guilty to the charge of stealing the gold. John Vine Hall, second-hand dealer, Hokitilca, said that Morland had leased a hut on Wharf Street for two or three months. To witness’ knowledge, the hut had not been used for retorting or smelting gold by the previous occupiers. Hall said that at the request of Morland he installed a new stove in the hut. When Morland left the new stove had gone, and the old one was replaced. „ Det.-Sgt. Hamilton Davis, of Greymouth, said he had taken sweepings from the 4 hut. When panned out, the sweepings had yielded fine beads of gold and globules of mercury. Stewart Henry John Wilson, physical chemist, Dominion Laboratory, Wellington, gave evidence of analysing bullion samples including some from Arahura, America and Canada. The conclusions reached were that the samples from U.S.A, and Canada resembled closely the sample from the Arahura dredge, except in the copper, lead and tin content, though in the case of the last two, the ration was the same in all bullion samples. Bullion samples from bars and from the Arahura smelt resembled small samples from the Arahura dredge, and could be distinguished from a dozen other West Coast samples. The resemblance between the bullion bars from U.S.A, and Canada, and the bullion from Arahura smelt, were so great that it was very probable that, the gold in the bullion bars had come from Arahura dredge. Frederick Thomas Seelye, senior analytical chemist, Dominion Laboratory, detailed results of an assay of six samples of gold bullion. To Mr A. T. Donnelly, for the Crown, witness said the results of the assay were quite consistent with the five bars of U.S.A, and Canadian gold being Arahura gold. Samples of Gold COMPARED WITH BULLION FROM U.S.A. AND CANADA. ' CHRISTCHURCH, March 24. Results of the comparison of gold samples from the Arahura dredge and from bars brought to Dew Zealand by witnesses from the United States and Canada, were described by scientific experts at the Magistrate s Court to-day, when the case continued to-day, in which a charge of the theft of gold' to the weight of 3650 ounces, valued at £31,495, is preferred against an Australian metallurgist, Leo Edward Morland, aged 41, before Mr E. C. Levvey, S.M. A police witness said that he arrested Morland on August 24, 1942, when he arrived at Wellington on an overseas vessel. Twenty-one witnesses have now given evidence. Two witnesses whose evidence will be heard when the case is resumed to-morrow are Corporal H. A. Maxted of the Royal Canadian Mounted Police, and Arthur S. Atherton, United States Customs agent, of Seattle. Thomas Henry. Sherwood, chief clerk, Mines Department, Wellington, said that he had given instructions for gold samples to be taken from thirteen West Coast gold dredges. The siamples were to be submitted to the Dominion Analyst for assay and testing. NEW STOVE FOR HUT John Vine Hall, second-hand dealer. Hokitika', who said he let a hut at the rear of his premises to Morland for two or three months, stated that to his knowledge the retorting or smelting of gold had never been carried out in the hut either before or after Morland occupied it. Morland had used the hut for making cases in. He asked witness if he could put in another stove, as the one already there was not throwing out enough heat. When witness visited the hut at night, on two occasions, the new stove was throwing out a terrible heat. There was asbestos round the stove. When Morland left the hut, the new stove was gone, and the old one was in its place. Witness said that he remembered Detective Sergeant C. H. Davis and the company’s chief metallurgist, Richard Eryce, visiting the hut at the end of March. 1941. He saw them take sweepings from a tin placed under the stove”to prevent burning, and from cracks in the floor and the doorstep.

HUT “PANNINGS’ 7 Detective Sergeant Charles Hamiltodn Davis, of Greymouth, described the takings of sweepings from w stove area in the hut and from the floor on two occasions. Dust and soot were taken from the stove pipe, The inside and outside sweepings were kept separate, and were panned out by Bryce. They produced bine beads of gold, - and globules of mercury’. There was slightly’ more in the inside sweeps. DETECTIVE’S SEARCH Senior Detective Herbert Edward Knight, of Greyjmouth, said that «« searched the hut and found a quantity of short ends of red pine timber corresponding to timber which a pre vious witness had said had been so to Morland. A large brass-bound of foreign timber, which had been left in the hut, was in the possession of the witness Hall. It , contain cabinet-making fittings and a tin marked “glass borax. The box was marked with Morland s name Also in the hut was the lid of a case bear in? Morland’s name. Inside the na were impressions, apparently made by a block which had been subjected to heat There was evidence of some attempt to erase the marks. Witness added that he had searched round the hut but he could find no trace or a stove’stated to have been bought by Morland. The Hokitika River was only 70 yards from the hut. It was often -in flood, and anything disposed of in the river would be carried away. GOLD SPECIMENS FOR ANALYSIS. Detective Sergeant William Robert Murray of Hamilton, said that on May 22, 1942, he received from the company's chief metallurgist, Bryce, a specimen of Arahura gold, which he saw being recovered from the •dredge at Arahura. On February 10, this year, he handed the specimen to Messrs Seelye and Wilson, of the Dominion Analyst’s office, tor assay purposes, and also for comparing it with specimens of gold brought to

New Zealand by a witness from Canada, and ore from the United States. Canadian and .United States witnesses also handed over their specimens tor assay. ' - 1 - ; -‘- MORLAND’S RETURN “Oh August 24 last,” said witness, “I arrested Morland, as he arrived at Wellington. He briefly intimated that he would be pleading not guilty. The accused had iin his possession a very large quantity of luggage, and, with his voluntary assistance, I listed it. Included was a book, which he picked up himself. He said: ‘lnis is my disposition, taken in the District Court of the United States for the Western District of Washington, Northern Division, bearing the date, Seattle, Washington, March 27, 1942.” Mr Scott (for accused) formally objected to this evidence and asked that his objection be noted. MORLAND’S EVIDENCE IN U.S.A. Witness continued that Morland added tnat the book was a copy or evidence which he, gave. He stated that, he had been examined by Mr Feliegnm, and his own lawyer was Mr Garvin. Messrs Long and Acland had appeared for the present informant company. Witness said that Morland also produced from his luggage a file, which he stated was a copy of his deposition in a case Rex v. Martin Jlacoby. Mr Scott again objected to this particular evidence, and his objection was noted. Continuing, witness said that Morland stated that his evidence in the case had also been given at Seattle. Also amongst his luggage was a redcovered book, which, he said, contained duplicate copies of his reports furnished to Arahura Gold Dredging Limited during the period that he was employed as their metallurgist. Morland also handed to witness his own notes of depositions taken in the United States proceedings. ANALYST’S CONCLUSIONS Stewart Henry John Wilson, physical chemist, of the Dominion Laboratory Wellington, described results of a spectrographic analysis of samples of bullion, alluvial gold, and gold from thirteen principal West Coast dredges, including Arahura. He said that on February 10, 1943, he receiv-. . ed from a United States witness two samples bored, from gold bars in his ' presence. He also received three , samples from gold bars brought by a ; Canadian witness, and one sample or drillings • from Arahura bullion. ' Samples of alluvial gold from Otago. Nelson, and unknown localities were 1 obtained from the - Dominion Museum. ; On February 23 he received samples • of gold from 13 dredges on the West ! Coast. . After describing the examination of nineteen gold samples, six bullion samples, and 13 dredge samples lor r the presence of other metals, witness said that the conclusions he had ’ reached were:— c (1) That the .bullion samples from 1 the United States and Canada re--1 sembled very closely; the sample yf bullion from the Arahura dredge, except in the content of copper, lead and tin; and, in the case of the last two, the ratio was the same in all of the bullion samples. . (2) Bullion samples from the bars and from the Arahura smelt resembled small samples from the Arahura dredge, and could be distinguished j from the 12 other samples from the ; West Coast. (3) The resemblance between the i bullion bars from the United States ; and Canada and the bullion from the Arahura smelt was so great that it • was very prabable, that the bullion ' bars had come from the Arahura j dredge. ; ASSAY RESULTS > Frederick Thomas S’eelye, chemist’ 1 and assajyer and senior analytical i 1 chemist at the Dominion Laboratory ? for 23 years, detailed the results of 3 an assay of six samples of gold bul- ; lion. The figure 1000 indicates golc! of 24 carat fineness and the results given by the witness were:— • United States samples: (1) 963.15- ■ gold, 31.65 silver, 5.2 base metail. (2> 1 963.3 golds 31.5 silver, 5.2 base metal. Canadian samples: (1) 963.75 gold, 31.25 silver, 5.0 base metal. (2) 961.5 f gold, 33.4 silver, 5.1 base metal. (3) • 976.5 gold, 27.8 silver, 4.7 base metal. 3 Arahura sample: 968.2 gold, 29.1 1 silver, 2.7 base metal. Witness said that the fineness of ’ the Arahura gold was very similar to 1 that of the other bullion, and it differed very slightlyl from the highest figure shown in the assay of all the other bars. Witness said the results of the assay were quite consistent • with the five bars of United States i and Canadian gold being Arahura r gold. The hearing was adjourned until ; 2.30 p.m. to-morrow.