Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1873-02-27
MORE OF THE DIAMOND swIhDLE.
Libel Suit by VIM. =. Lent Against Jo-
seph 7. Goodman, Proprietor ofthe
Territorial Enterprise" for St5,-
mn q

From the San Francisco Alta. February B.l
VIM. NJ. Lent commenced suit yes
terday In the Fourth District Court
against JosephT. Goodman, proprietor
OF the Territorial Enterprise, to recover
$4,000 for alleged libel. The COM
plant alleges that In January, 1871.
Philip Arnold and John B. Slack did
falsely, frsudulently and deceitfully
pretend to the plaintiff at San Fran
cisco, and to George 8. Dodge. that
they -had- discovered q locality In the
public lands of the United States, rich
Ia diamonds and other precious stones,
which was q secret known only to
themselves. aud that they proposed to
take ND and locate and work said To-
cality as n diamond mining claim ;
and that It was a splendid enterprise.
That they produced and exhibited to
plaintiff and to Dodge a large guam
tity Of stones, somc Of which lad the
appearance OF rough, uncut diamonds,
and others rubies, representing Mt the
same time that they were precious
stones of great value, and had been
found BY them on the aforesaid local.
ity, and were onlya sample Of the dia-
monds aud rubies wherewith the local.
ity abounded. Giving credit to these
statements, the plaintiff and Dodge
were.induced to purchase aud did pur-
chase on the 9th of June, 1871, from
Arnold and Slack, for the sum OF $50
900, then and there paid.o one undivided
eighth part Of the alleged discovery.
After this purchase was made, Slack
and Arnold lett tho city and county
for the alleged purpose Of making an-
other expedition to the diamond min
Ing claim, and after being absent for
several months, returned on the 10th
of September, 1871. On the goth OF
September. 1871, at San francisco,
Slack and Arnold produced and exhlb-
tied to plaintiff aud Dodge, n large
quantity OF diamonds, rubies and sap
phires, falsely representing that they
had been found and collected by
them OH the diamond mining claim
during their expedition, whereas
such statement was utterly false.
Giving credit to their statements,
however, the plaintiff and Dodge were
induced to purchase, on the 10th OF
September, 1871, the sum OF $4,000,
then and there paid, q further interest
of another undivided eighth part there
OF, aud that the plaintiff aud Dodge
were partly interested In the purchase.
On the Sd of November. 1871, plaintiff
aud another person, believing Arnold
aud Slack's representations, purchased
$3.50 shares Of the stock Of the alleged
diamond discovery aud mining claim,
| considering the whole stock to consist
Of 100. 900 shares, from Philip Arnold,
for $40 per share, making q total pur-
chase price of $3.50 600, whereof $780,
0O0:were then and there paid by plain.
| tiff and his associate to Arnold, and
the remaining $3.50, QUO was paid to
Arnold In the month Of July, 1872. /;
On the 10Th of July, 1872, In the
city Of New York, plaintiff believing
the aforesaid false. pretence, and repre-
sensations, and that the diamond claim
was q genuine discovery, Of great
value, and would yield large profits,
joined with four other parties In maxi
ing a further joint purchase from Ar
mold, namely, $4,000 shares, ut $40 per
share, making = total purchase price
OF $500, 900, aud Of which plaintiff had
one-fourth entered and paid therefor
to Arnold $75, 900, Oh the 18th Of July
1872. Since the aforesaid purchases,
the alleged diamond discovery has
been ascertalned to DO a fraud, and
plaintiff has lost, by said purchases,
$3.50, 000.-
The complaint then gives the alleged
libellous article published in the Ter
ritorial Enterprise on the 3lst Of Au-
gust. 1879. The article refers to a
Communication In the London Times,
which stated that an American bought
from the writer a quantity of uncut
| diamonds, and then states that Mr..
Lent visited Europe In January, 1872;
that soon after his return the scheme
was concoctcd and sprung upon the
public, and that his connection with
the scheme gave color to tho suspicion
that he was the American gentleman
who purchased the diamonds In Lon
don. The article also says that the
initiatory steps appear to have been
taken In New York, with n view to
enlist prominent Inc In the enter
prise, and that until they disproye
their completely, they must be regard
ed as swindlers. The plaintiff avors
that the article Is false and l~lbellous,
| and demands Judgment for Sl5. 600, :