ILLICIT GOLD SALE.

Hokitika Guardian, 21 July 1925, Page 4

ILLICIT GOLD SALE.

A WAI OTA CASE. TALE OF MYTHICAL CHINESE. GREY.MOUTU, July 21. At the Warden's Court, yesterday, lie to re Warden .Meldrum, the Inspector of .Mines {..John E. Downey) brought several charges against a well-known Waiulu hotel manager, Patrick J. O'Donnell, in connection with some alleged dealings in gold with two Chinese, named Hip Wan and Ah Cow. who were alleged to lie mythical per-

o’Donnell was charged that, on December Id. 192-1, be did make a false statement in the gold dealers book kept by the Hank ol New South Wales at Greynioiith, to wit. that certain gold then brought by the said Hank of New .South Wales was sold by or on behalf ol Hip \\ an and Ah (low. and that such gold was obtained at Manila.

lie was also charged that, on De•onther Pi. 1921, and on divers dales ,ince. at Crcymouth. being the person who received gold exceeding the calue of tL’O from Hip Wan and All Cow as a bailee, did fail to keep a record in writing of such transactions; also that be did fail to produce a record in writing of such transactions for inspection by the informant.

.Mr E. A. Kitcliinghain appeared for llie Inspector. Mr J. W. Hannan, for the fiefenpint, pleaded not guilty. Ihe infoim:\tiinis were taken as one charge.

Opening the case. Mr Kitcliinghain statcil that it possessed considerable interest, ' boi h iron) the point- of lav. and of fact, lie read the sections ol the .Mines Act under which the charges wore laid. The tacts were that the defendant on December 10, last came to Crcymouth and visited the bank, where he sold several parcels ot gold, weighing I’JPo/.s. -Idwts. and valued at C 197 Is 2d. No person was entitled to sell or buy irom, miless one of the parties was a licensed dealer, and the Act also provided for the registration of such sales in a g„|,| dealers’ book. When defendant went In the batik lie gave certain information, stating that tie was win g the gold on behalf of the two ( littto.se. Miners’ rights issued in the names ol the Chinese were produced at the litre. Cue parcel ot gold was Mg ngtiins’. the inline of one ( hineso

ami two parcels against the name ol tlie other Chinese. Entries were made in ilie gold dealers’ book and signed hv O’ Donnell. ’I hat loritled the has? of t],c information, laid under Leciinn :f7C. Extensive eti(|iiiries made

went to show that the ( liinesc names were assumed. Ibe police bad discovered that a Chinese named Alt Cow died at Rcefton in 192:1. When the transaction came b-unro the Inspector of Mines he began to make enquiries.

and was surprised to know trial two Chinese of whom be bad never heard were securing about (LOO worth ol gold. When interviewed, oil February 11 hist. O'Donnell refused to answer questions, but made a statement that lie bad no reenlleeiion of selling the gold to the bank. Mr Downey then left him copies of the claim holder’s return to fiII in, huh so far these had not been sent in. On March 21 last, Deteeiivc-Fergeauf .1. It. Young secured a statement front O'Donnell that lie met two Chinese in Mackay Si reel. 0 rev it uhi t li. on December 10. and i hey asked him to sell the gold for them, as be could get a better price than they could. He said be paid them half the money out ol his own money lie brought down tor (he purpose of banking, and paid them the balanee a fort night later. Jfe stated that le had previously sold gold for the two Chinese, but did nut know where they could he lound. Oil June -j, the Detective-Sergeant and

Inspector Downey again interviewed who stated that ho had not soon 11 10 Chinese .since, and admitted that ho had no written record of the transaction hetween himself and the Chinese. From the stringency <>f tinpenalties set out, it would he seen that sneh breaches of the .Mines Aei were regarded seriously. Illicit dealings in gold should he looked upon a- sio'ioils. (told stealing, whether from alluvial or quartz claims, was easy to commit, hut hard to delect, and it was a matter of great moment that 'th'a authorities should know where the gold came from when it was sold, lie claimed that the Chinese names were fictitious, Intfc the prosecution cnnld not eomh the whole of the Dominion and prove that sneh men did not exist. The evidence, however, would set up a primn facie ease that sneh men were not in the district on December Ui. .Mr Hannan objected to lour of the informations, laid under Section IK3. on the ground that the informations, as laid, did not. disclose any offence.

After hearing legal argument, the Warden agreed to note the objection.

Kvidenee was led on the lines outlined by counsel for the prosecution. For the defence evidence was given b,v two witnesses as to having seen a Chinese of tin- name of Hip Wan. .Reviewing the evidence, the Wardim said that there were in all six charges against the defendant. They were laid on Information given by him to thi' hank managers, if what: defendant said was true, then there wtts no doubt that he had commuted an 'illeime in not kccp.ug and producing a record. If dcfenilaufc did not keep a record, he could not produce it. however, and therefore the charges could he reduced in number. It wits quit' l clear that the dciondaut should he ionviclcd on two charges of failing to keep a record. Regarding the charges alleging; that a false statement had been made, it had to lie considered whether defendant created fictitious person's in order to cover up a transaction hetween himself and the Hank. A good deal of time and trouble had been spent in an endeavour to find those persons. Defendant had not given the Inspector any information regarding them, and had failed to -end in icturns. He had also admitted that he had not kept a written record of the alleged trait sac lion.-, with the Chinese. The question was whether, on the facts, a, xullit ienily strong presumption had been raised that the story about the Chinese was merely made up. Had defendant, h. an absolutely honest and innocent, there was no douht that he would have been much more frank with Inspector Downey and Deter-live-Sergeant Young, Hi- whole eonduet went to show that he had a great deal to conceal, and that the story about the Chinese was made tip. The fact that defendant himself went to the Court on December 1(1. and took out: two miners’ rights, then taking them to the hank, showed that he knew much more than he had told. There tra- no doubt whatever in the Warden's mind that defendant had obtained the gold illicitly and that ho had invented the Chinese story to cover no his tracks.

.Mr Hannan pleaded that the provisions of the Act were not well known, and that it was the first prosecution of the kind on the Coast. Defendant, had not previously been before the Court. Mr Kitchingliam said that there wnA evidently much more behind de«j|£n|||s actions than appeared on The Warden, continuing, said that in fixing a penalty he had to take into

consideration the value of the gold. Defendant would be convicted and fined I’d with costs, on each of two charges of failing to keep a proper record ; on each of two charges of mtiking a false statement in the gold dealers’ book he would be convicted and fined £SO, with costs. Witnesses' expenses and solicitor’s fee would also he allowed.