Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 12, 1990 TAG: 9004120364
SECTION: VIRGINIA PAGE: B5 EDITION: STATE
SOURCE: associated press
DATELINE: NORFOLK LENGTH: Medium
How a group of monks became involved in the treasure is a story as fascinating as the nearly 133-year-old search for the SS Central America and the wealth that went down with the ship off the South Carolina coast in 1857.
Originally, the dispute over the ownership of the gold involved only the Columbus-America Discovery Group, which found the wreck and recovered nearly a ton of the treasure, and a group of insurance companies, which paid out on the original loss and argued that they have never relinquished their claims to the bullion.
When the trial opened last week in U.S. District Court, two treasure hunters and Columbia University asked to enter the suit, claiming research done by the New York City school in 1984 led to the discovery of the wreck four years later.
One of those treasure hunters was Harry G. John, heir to the Miller Brewing Co. fortune. In 1946, John set up DeRance Inc., a Catholic charity. He eventually gave all of his brewery stock to the group, which gave away $126 million to charities around the world through 1983, he testified.
DeRance later set up Santa Fe Communications, which other DeRance officials charge John used to spend millions looking for lost treasures. It was Santa Fe that paid Columbia University more than $300,000 for a sonar survey of a portion of the ocean floor looking for the Central America.
John testified that in 1984 the board of directors of DeRance decided to stop all searching for such treasures. At that time, he signed over the rights to the Columbia research to the Province of St. Joseph of the Capuchin Order in Detroit.
Santa Fe Communications was incorporated by John as a non-profit corporation in Milwaukee, Wis., in 1982 to produce radio and television programs of a religious nature.
In 1987, John was removed from the board of DeRance by a state judge in Milwaukee who found that John had committed perjury, securities fraud and tax fraud, and had lied to the board.
Wednesday, John disputed the allegations contained in the civil suit for his removal.
"I was never convicted of a crime. The civil proceedings were a convenient vehicle for my removal because some members of the board disliked me," John said.
Under questioning by Robert W. Trafford, an Ohio attorney representing Columbus-America, John said he purchased back the rights from the order for $10 two weeks before the trial.
John said he did not tell the order that the Central America had been found or that he was planning to intervene in the lawsuit over ownership. "I assumed they read the newspapers and knew about it," he said.
Brother Larry Ampe, secretary-treasurer of the Detroit monks, said it was his understanding that John told the monks he was virtually penniless.
Under questioning by Trafford, John admitted he lived in an oceanfront apartment in Pacific Palisades, Calif., and had a pension from DeRance that paid him $47,000 annually. John said he told the monks he was a pauper.
Ampe testified that Tuesday night, the order drew up a new agreement with John for the transfer of rights of the Columbia research. Under the new agreement, the monks would get one-third of whatever John is able to recover from the court, if anything.
Ampe said the order would have fought the original agreement had John not renegotiated it.
Arguments in the case are expected to end this week, but a decision by U.S. District Judge Richard B. Kellam is not expected soon. Kellam told the numerous attorneys involved he will require briefs on all of their arguments before he gives a decision.
by CNB