, 1872-12-05
THE DIAMOND SWINDLE.


From the San Francisco Bulletin, Nop. 26.
From gentleman who is in the secret Of
those who have suffered, and who is himself one
Of the losers, We have the following comprehen-
siVe account Of the great diamond swlndle. The
first discovery, as alleged, Was made by one
Philip Arnold. he made contract with Har-
pending for the sale Of the discovery. Harpend-
ing transferred m interest in that contract to
William II. Lent. The first payment to Arnold
WIS 100000. This money was advanced BY
Lent The property n nov = underwent VaTao1s ant
eho paid about $3.50, 900. Other interests! we're
sold to various parties, go that the result was
that Arnold and his confederates, whoever they
we're, netted about $650000. By. subsequent
sale Of portion OF Lent's interest he got,back
part Of lis money, and now stands loser Of
about $3.50, 900.
The diamond fields discovered by Arnold,
after having been prospected BY Henry Janin,
under Arno1d's supervision, yielded about s15,-
pect Janins report to Messrs. Barlow and Gen.
eral Mcclellan was based. It is now reported
that Arnold took Janin over few acres OF the
land, and that Arnold chose the spots for dig
ging, while Janin looked on: Upon Janin's re-
port and the receipt Of the jewels, the San
Francisco and New York Mining and CONNER
cial Company WAS organized, with capital Of
$40 900 600. 4 portion OF this stock was taken In
San Francisco at the rate Of $40 per share. with
the agreement OF all SUBSCRIBERS that the stock
and should not be sold OF put upon the market
until the value Of the property should be thor
oughly ascertained.
Another prospecting party, headed by George
L. Roberts, who appears to have been one OF the
purchasers from the discoverer, visited the field
This party did 4 good deal Of surveying and 10
eating, but spent, it is rumored, only Al hour in
hunting jewels, and left the field, bringing awny
several hundred carate OF diamonds. The brevity
ofthis search, and the small results
aroused suspicion Of the extent il notthe genuine
party VAS despatched, whose examination and
report have not yet been made public. Enough
is known to warrant the assertion that future
explorations will develop no diamonds or other
gems.
Arnold, the diBcoverer, Is native OF Ken
tucky, and is now supposed to be in that State,
though it is more than likely he will prove to be
like the pea under the thimb1e-ngger's cap
snow you see it, and now you don't"
The swindle WAS probably suggested by the
discovery Of the mineral known as itacolumite
in the Green River District, which mineral is
usually found in diamondiferons countries,
though it il frequently found, as in the present
instance, without the important adjunct Of dia-
nonds.
THE LOSERS III TIE FRAUD.
From the San Franciseo Chronicle, Nou. %.
VIM. u. Lent has paid out over 9400. 600, cash
which, Of course, is q complete loss. He had
neVer seen the grounds, and invested solely on
his faith in Janin's report and the stories circu
lated by others. William G. Ra1ston comes next
among the losers, having advanced $250, 900 to
help make the payments to Arnold
The following gentlemen purchased stock for
the amounts sot opposite their names. AS the
cash was paid in every instance the money is
AA$uf