Lee was working on the theory that someone close to Neil Muir had killed him. On Thursday, 17 January 1980, with the evidence he had, Lee Haddon went to Mount Gambier with Detective Bob Lindner and drove to the home of Dr Millhouse’s parents, where he was staying at the time. Lee Haddon recorded his conversation with the doctor.
‘Dr Millhouse — Sergeant Haddon, Detective Lindner, Major Crime Squad.’
‘Yes, I remember you.’
‘I’m still making enquiries into the death of Neil Muir. I still want to ask you questions in relation to this death. Are you now prepared to answer questions that I put to you?’
‘Look gentlemen, I must still take the advice of my solicitor and not answer any questions.’
‘Last time I spoke to you on the way to Adelaide from Whyalla, you told me that you wanted to answer my questions and that you’d go to your solicitor and request that you be allowed to answer questions. Did you not?’
‘Yes, I said that.’
‘Did you approach your solicitor about making a statement?’
‘I tried to get him a couple of times on the phone but he was out.’
‘Are you prepared at this stage to answer any questions relating to the death of Muir?’
‘I’m sorry. I must take the advice of my solicitor and decline to answer any questions. It’s my fundamental right.’
‘I’m now arresting you on a charge of murder relating to the death of Neil Frederick Muir. You don’t have to say anything in answer to this charge unless you want to but anything you do say may be given in evidence. Do you understand the charge?’
‘This is ridiculous. I told you I didn’t know the man. I don’t know anything about it.’
Dr Millhouse became upset and called out to his mother and father. Lee let Dr Millhouse speak to Peter Waye on the phone before taking him to the Mount Gambier Police Station where he was charged, photographed, fingerprinted and put in one of the cells. He was charged with having murdered Neil Federick Muir on or about 27 August 1979 at North Adelaide or elsewhere.
The charge indicated the weakness of Lee’s case. He could not be sure exactly where Neil Muir was killed even though there were indications of blood in the bathroom. Also, he could not say exactly when he had been killed.
Lee could prove that they knew each other, and blood had been found in the bathroom of Peter Millhouse’s rented premises in North Adelaide. At the doctor’s trial, the prosecutor argued that the dissection of Muir had to have been done by someone who had some medical training and knowledge of anatomy. Dr Robert Britten-Jones gave this evidence but he couldn’t say if the person who did the dissection was a doctor.
Dr Millhouse was still saying that he didn’t know Neil Muir. Lee could prove that he did know Neil Muir.
Dr Millhouse’s arrest removed the spotlight from the investigation into Alan Barnes’ murder. Police speculated that the same offender or offenders committed both murders. Both victims were abusing drugs. Both suffered anal injuries but these similarities were not enough to link both murders to one offender or group of offenders.
Dr Millhouse endured two trials. The first trial started on 29 July 1980 but, less than a month later, the judge, Justice Williams, suffered a heart attack. The jury was dismissed and a new trial started on 2 September 1980, with a new judge and jury. The second trial commenced with Justice Mohr controlling proceedings. The trial lasted twenty-four days, and ninety-eight witnesses gave evidence.
Towards the end of the trial, Dr Millhouse took the unusual step of giving evidence under oath. Most often in murder cases defendants refuse to give evidence; in those days they could give an unsworn statement from the dock and the prosecutor was not allowed to cross-examine the defendant. But Peter Millhouse allowed himself to be cross-examined. He gave sworn evidence over three days, a long time to be giving evidence. He was cross-examined for a full day by the bespectacled prosecutor, Tony Bishop.
Tony Bishop, a car enthusiast from the Office of the Director of Public Prosecutions, conducted the case against Millhouse. After Dr Millhouse gave sworn evidence, Tony addressed the jury. He said that the prosecution’s case was based on circumstantial evidence because there wasn’t any direct evidence implicating the accused with the crime. Circumstantial evidence inferred he was involved rather than anyone saying that they saw him do it. Tony Bishop summed up by saying that the prosecution case rested on eleven points.
1. The type of relationship between the two men indicated Millhouse could have committed the crime;
2. Alleged false denials by Millhouse;
3. The association between the victim and the accused was on-going at the time of the murder;
4. The person who mutilated Neil Muir had anatomical and medical knowledge;
5. Evidence indicating that Neil Muir had been at Dr Millhouse’s home;
6. Yellow cord binding the body was similar to the line that had been on Dr Millhouse’s clothesline;
7. Plastic bags similar to those that Neil Muir was stuffed into were in the cottage;
8. Use of Doctor Millhouse’s car and denials about its use;
9. General behaviour and conduct of Millhouse;
10. Opportunity to commit the murder; and
11. Motive to commit the murder.
Tony Bishop provided two possible motives for the mutilation of Neil Muir. Firstly, he adopted one of the views of the police psychologist and said that the mutilation could have been done out of contempt. Secondly, it was done to help dispose of the