The Archive · 1926

Smuggled Gold from

RUSSIA

Metal Hidden in Kegs of Nails:

Prosecutor's Story of How He Was Duped Further interesting revelations were made before Mr. 8. E, Whitamore, British Assessor, and Magist-tute 'Shao in the Mixed Court on Wednesday afternoon when Ivan Kousmiteh Pineghin, a Russian, appeared on remand' to answer Gharge of having" defrauded Me, jam J. Lowrie of Shanghai of a eum of money amounting to $2,000 between Degember 10 and December 17.

The first appearance of Pineghin the Mixed Court created a mild sensation for he was declared by the Police to have obtained this sum of money in order to secure the re-Jease from the Customs authorities of ten Kegs of nails in which Pineghin declared was hidden a large quantity of gold which he had Uroughé from Russia.

Mr, Tycho Wing prosecuted, for Mr. Lowrie and Mr. A. N, Fishman appeared for the accused.

William John Lowrie said he bad] been in the employ of Caldbeck, MeGregor & Ca, and had a younger brother Charles who was in Shang. hai, A little tinie ago witness made the acquaintance of Philip Menelsohn and through him made the quaintance of the accused whom hie' first. met on December 17, Mendelssohn came to his office with she brother Charles on December 9 and told witness that the accused hood arrived from Manchuria wita 20 kegs, 19 of which contained nails and inthe other seven were concealed gold roubles and gold bars. Witness's brother then said that the recused was in trouble with the Customs over the cargo and required the sum of $1,500 in order to gee it released, Witness ar. amount of ready money a them to call next day. His brother! came the following day and withers save him $500. Mendelssohn was not present on that occasion. On Decern= der 14 his brother and Mendelssohn ain called and said they could not, raise the balance of the money outride, Witness made arrangements with the shraf? fo the money and as his brother had been able curtain $100 paid over $900 more, Hundred Per Cent. Profit The arrangements for the ad of this money, as explained by witness, were that he was to be paid mack two dollars for every one dollar advanced, The total amount loaned was $1400. On December 17 the brother and Mendelssohn again called and said that the advance was not sufficient and when asked why, stated that the original intention was wet half of the old released by: Paying half of the fine and by cor verting this gold into Shanghai evrreney obtain enough money. to yeleae the rest of the gold, Men-Aelsobn said the Customs would not! ugric to the release of half the cane and the payment of the full amount was necessary,—Witness then told them that he would have to negotiate with the shroff for Joan, Witness spoke to his brother lund asked about the repayment and was asked to go to Mendelsohn's Louse and make arrangements, Both' went and witness was me troduced to the accused by Mendelsohn and, as the accused did not speak English, Mendelssohn acted as an interpreter, Witness asked Mendelzohn if it was a straight deal an was told it was. He further said he had seen 18 kegs being taken to the Customs shed from the godown for examination and when the gold was found saw the accused being, Brought to the station by the ex-miner. Witness had asked why a man with all the wealth in the kegs could not afford to pay the dut Menelsohn informed him that the kecused had run away from the $25,000 in getting the gold out off. Soviet Government and had spent. Russia. He also said that the accused gave the examiner a certain Uribe and had no more Witness then said that he was satisfied with the existence of the wold and would give the rest of the money bot was not satisfied with the payment of two to ce, Bonus of Gold Rewbles Menddscin had aco: with the occured who finall ly agreed te ive 5.600 poid reuadles a 8 a bonne beside the two to one payment. Witness returned to the office where the shroff gave him $1,500 in notes. On the advice of the shroff he went} to the South Manchurian' Railway; wharf accompanied by No. 2 shroff with the money, The accused and Mendelssohn went} with them and upon arrival at the wharf the accused went into the office with some documents. Later} the accused came out and went into the examiners office but came back apd took Mendelsobn and witness a godown to the left of the office where they were shown 10 kegs in which accused said were the nails Witness said he had not come to see ils and wished to be shown the eeld, He was then taken to another shed where the accused: stated the gold was kept. The shed was locked and witness said that he was not} going to pay the balance of the money. Mendelssohn again assured him that it was a straight deal and Pointed to a van which he said was there to take the kegs away, Witess walked then to the examiner's office, intending to interview him, but was prevented -by Mendelsoh: who advised him not to worry Jaco} sen the examiner as he had already! received a bribe and it was not wise to disturb him further. Witness! hesitated for a while and then re-torned to a car where he handed the votes over to the accused who wert towards the examiner's office. A young Russian came out and Menelsohn said that this man was going to take the money to the Custom House to pay the rest of the fine Witness pointed of that it was 4 v'elock and that the Custom House closed at that time but Mendelsoha said that it would be alight Jacobsen had telephoned and she permit was ready, They waited time and at last the Russiaa me back and said that the permit wa, being sent by a special messen. ger. They waited until after 5 o'clock and as the messenger had not ived and the motor van had left tues became suspicious. Mendelsohn said that they trusted him, and gave him four pieces of paper which he said were—shipping documents,

Text read from the printed page and cleaned; old type leaves the occasional error.

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