, 1872-11-28
THE DIAMOND 8WINDLE.

The great diamond swindle which has just
been exposed in San Francisco. WAS one Of the
most colossal frauds that has ever been attempt
ed in the United States. The warning which
was given in the columns Of TIE TRIBUNE, some
months since, when it was first announced that
large quantities OF diamonds and other precious
stones had been found in New Mexico, has been
swindle, but not in time to save many persons
from being heavily victimized. The speculation
WAS worked up in the most ingenious manner,
and WAS calculated to deceive even very cautious
people. The original parties to the swind1e pur-
chased large number Of inferior and cheap
gems in London and Paris, and mixed with them
q few valuable stones. These they took
to certain localities in New Mexico and Colorado,
where the soil and creyices in the rocks were
'tsalted" with them. This operation is by no
means novel. There are parties in this State
to-day who Will remember to their soIrow SINH
lar transactions in tho Galena mines, in which
nuggets OF ore, advantageously deposited, vero
made the basis Of valuable lead mine and
stock certificates, which to-day arc interesting
souvenirs OF their poBsesaors' susceptibilities.
Having deposited their gems, the first step Of
the swindlers Was to food the press with rumors
Of remarkable diamond discoveries in New
Mexico, and thus stimulate public curiosity.
The next move was the arrival OF exploring
parties In Ban Francisco, who brought
with them large numbers Of diamonds,
rubies, emerads, and sapphires, a few Of which
were exhibited in shop windows, and the re-
mainder Deposited in the Bank Of California.
A few Of the most valuable specimens we're
tested by jewellers and experts, Who, ofcourse,
reported fayo1ably upon them. Shortly after
wards, packages OF gems, purporting to come
from New Me1ico, we're exhibited in the princi-
pal cities OF tae country, and some OF the public
journals wers duped into giving glaring &C
counts Of thu new diamond fields. The game
began to WORK, and, as soon Is the public Gu
riosity become excited, stock COM
pany was formed, and General George
B. Mcclellan was induced to take the
Presidency OF the Company, and the names Of
several respectable Eastern gentlemen, Who
would not knowingly hare lent their influence
to swindle, appeared Us Directors. The Com
pany appointed surveyor to explore the new
diamond fields, and he miB1ed by the t'sa1ting' y
| made favorable report. The public began to
bite st the gilded hook, and shares commenced
selling lively. Immediately, similar reports OF
diamond discoveries came from Colorado Ihe
widest reports began to food the newspapers,
and the Associated Press lent its aid, With
out asking n question, to still further
excite the people. The Arabian Nights tales vera
putdone. Diamonds we're found, quarts At o
time. Rut;es we're ahoyelled up and forwarded
to San Francisco. jE,leralds, eapphirea, and to-
PAGES became 90 common that the Hs.ners 1e11
them ungathered, while the virgin eo'o was
BtreWn about 30 loosely and profusely in hSse~
gets that 1t was OF no more consequence than peb-
besl. All the while the public excitement increas-
ed. and shares sold faster and faster. The share