"GOLD AND DRUGS BRINGING VISITS OF U.S. GUNMEN," Toronto Star. February 6, 1934. Page 1 & 3.
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Belief That High-Grading Is Not Only Reason for Their Presence
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MEET IN TIMMINS
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Special to The Star
Timmins, Feb. 6. The arrest and conviction of Charles Massey Armstrong in Detroit is believed to be responsible for revelations of sensational importance which will shortly lead to arrests of a syndicate trading in gold from the Porcupine area.
Armstrong, a former resident of Timmins, was arrested in Detroit, October 27, charged with making false affidavits covering the sales of some $76.000 worth of gold to the United States authorities, claiming that it had been mined in Wyoming. Authorities held, however, that the gold had come from the mines near Timmins. According to the officials, huge amounts had been smuggled across the border at Windsor and then taken to New York and disposed of.
Almost coincident with Armstrong's conviction, the Timmins French newspaper, Le Nord Ontarieu, printed a report based on information from on anonymous party, that at least eight to ten gunmen from either New York or Chicago visit that town every month. While the editor did not divulge the identity of his informant he declared his faith in the reliability and truthfulness of his news source. The editor conjectured up a picture of what might happen with the gunmen in the midst of the apparently peaceful community of Timmins. Although the story intimated that one purpose of the gangsters is highgrading there was a sinister suggestion that they might be engaged in a more insidious traffic.
One official said: "It's true enough, although no one seems able to put a finger on the gunmen." Queried on the other interests which might lead them to the mining towns beside highgrade, the answer was one significant word. "Drugs."
Gold Smuggling Checked
Rigid regulations governing mine employees have gone far to prevent the smuggling of gold, and to-day it is almost impossible to accomplish it under some of the systems in effect. One mine has probably the simplest. Under it, men going to work remove all their street clothing
in one room, walk through another room unclad, and go into another where they don their mining attire. The same procedure is adhered to when they leave work. Lunch pails are placed on a conveyor going in and coming out, and the owners are able to get them only after they have
been subject to thorough inspection. Considering that gold is worth around $34 an ounce, and it takes but little gold to weigh an ounce the difficulty in preventing anyone smuggling out enough for a small fortune is easily seen. There was one case some time ago, where a man was found secreting the precious metal in his hat band.
Despite every precaution, there is high-grading involving huge sums of money. "Concentrates," which is gold and quartz crushed down until it resembles ordinary sand, is sometimes. smuggled out. But since it must come from within the mill, where the supervision is keen, the chances of getting it out with success are slim. For the most part, the gold is said to be taken out in nugget or chip form. Then the high-graders crush it down so that it is more easily dis- posed of.
Loot Taken to Woods
One authority stated that in few cases is the stolen loot taken to the homes of the highgraders. Most of it is hidden in the bush. Cases are reported where there has been equipment found in lonely spots in the woods able to complete the preliminary stages of refinement. A crude way of crushing, said to be used by some, is to put the quartz in a towel, then smash it with a mortar.
An indication of the magnitude of some of the deals was given The Star by a man who claimed to know one of the higher-ups in the ring of gold traffickers. "Two weeks ago, he stated, "a shipment of twenty- five pounds of gold was made to either Toronto or Montreal." That, at the present price per ounce, is worth a tidy sum. "A piker transaction only amounting to $1,800, took place on one of the streets of Tim- mins about a month ago," he stated. According to him, highgraders pay only $12 to SIS an ounce. "It only takes a few seconds to complete a deal," he explained.
"For the most part, deals are made in stages. One man will have a couple of ounces. He will sell it to another who buys these small quantities from various others until he has enough to approach a higher up. The transaction pyramids until the syndicate is reached. Then they dispose of it to their outside connections. "Of course, all deals are in cold cash. There are no charge accounts, not even for a few seconds," he said.
Double-Crosser Detected
"Woe betide the man who double-crosses," remarked our friend. Yet, perhaps to keep the game from getting monotonous, that often happens. That was the claim made by another authority who should know. Not so long ago, Timmins police arrested a man who had 30 pieces of rock in his club bag. The weight of the pieces ranged from two pounds to two ounces. Assay tests at one of the mines revealed that there was not a trace of gold in the lot. They were all brass, and brass is the principal substitute used in putting the double-cross. Any redress must come from the personal efforts of the "sucker," because under British justice it is an offence to buy or sell the metal, gold.
"Are there many high-graders around here?" the reporter asked.
"Enough to fill a train." was the laconic response. "Merchants to bootleggers are engaged in it." he enlarged, "and everyone is more or less under suspicion. "All means of transportation are utilized to get the illicit gold south to a market, aeroplanes, motor cars and trains," he said. He knew of one girl assisting in taking a quantity to Toronto.
"She hid the gold in her lingerie," he remarked.
Kept Apart on Journey
"One of the ring travelled down on the same train with her, but they didn't even sit in the same coach. When they got to Toronto, the girl took one taxi, and her "escort" took another. Then they met at an appointed rendezvous." Another deal in which a woman. featured was related to the reporter by a man familiar with highgrading methods.
"The officials learned that a woman in South Porcupine had some gold to sell so they arranged to buy it. The woman was paid with marked fifty dollar bills. Everything went beautifully. That is until they went to arrest her. When she found the trap she was in, she destroyed the bills."
The Star was told of one man who earned $250 for driving a car to a garage in Toronto. "A fellow was approached to drive this car down." it was stated. "All he had to do was drive the car to a specified garage. leave it there overnight, and call for it the next day to bring back up here. He did it and received the money. When he called for the car, it was washed and polished, greased and the tank fell of gas."
