The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1874-09-04


The Louisville Courier-Jouynai of Aug.
l6 says: Mr.. Philip Arnold, well known
throughout the country as the alleged
leading character in the celebrated Cali
fornia diamond swindle, was arrested yes
ierday In this city and lodged in jail on a
warrant from GOV. Newton Booth of Cali
fornia. The arrest was ordered on an in
dictmcnt found against Mr. Arnold in san
Francisco about a year ago for swndling
l.. l.. Treadwcll TO the amount of $4,000
in that same famous diamond transaction.
Philip Arnold was born and raised I'm Har-
din county, Kentucky, and in his early
manhood went 70 California, where he
turned his attention To mining. minerals
etc. About the year 1870 the country was
startled by the report of the discovery by
Philip Arnold of diamond mines in
the northern part of New Mexico.
California especially became fever
ish over the extraordinary discovery.
and the excitement ran high among
the spectators. To add to the in
tense interest awakened. those interested
in tie supposed mines caused an entirely
reliable and quite celebrated expert named
Jannin TO publish in his report that he
had examined into the alleged fields of da-
monds. and that there was every indica-
ton of large quantities of precious stones
in the place named. Everybody who had
the money to spare was anxious TO pur-
chase an interest in the mines. After nu-
merous propositions from various parties,
Arnold. who. II was said was only an
agent for IA large company interested in
the scheme. was induced TO sell his interest
10 various parties for about 100000.
The newspaper stories Mt the time were
10 la ..fl.. hot
by number of men who brought Arnold
into the enterprise TO execute the work. Ii
was said that they furnished him money
with which to buy rough diamonds. and
that he went TO London and purchased
about $4,000 worth of the precious stones
i'm their natural state. These ne brought
back and sailed at suitable intervals i'm
the soil of his pretended mine. The stories
of this wonderful Mesa were at first dis
but after oft repeated assurances
from Arnold and his partners, the princi- |
pal active one OF whom was John Slack. a |
was formed in san Francisco and |
New ork, and representatives, sent To ex-
plore the lands. They went. and their |
discoveries Were marvellous. Arnold and |
Slack being their guides, they were led TO |
spots where the sparkling gems were I'M
earthed i'm great numbers. and i'm sizes of |
great value. The news went back TO San |
and, assured by the stories of |
the explorers OF this wonder land MEM
bers of the company Immediately entered
INTO negotiations for its purchase. When
he transfer was made, the company was
organized and Gen. Mcclellan elected its
PRESIDENT. One Of the terms of the sale
made by Arnold and Slack to the CON-
,amy required Arnold to take into the
aborers. In compliance with this contract
he returned to Elizabethtown and organ
Led a company of negroes. with which he
proceeded TO the western part of Wyom-
ng Territory. but was stopped by orders
rom the company's headquarters. and
he laborers. instead of going to the mines.
we're returned To their homes in Ken
ucky.
Meantime the Professor i'm charge of the
lnited States geological survey, who had
mt recently been over the country in
which IL was claimed that these diamond
hines existed, had stated that there were
o original diamonds there, and staked his
reputation on that fact. This ,
eng made public in san Francisco. where
lost of the interested parties resided,
aused the company To send out another |
xpedition. the report of which burst the
ubble. Soon after the DISARMAMENT OF ,
is company of laborers, Arnold returned
. his home in Hardin county, and there
emained until the institution of the suit ,
gainst him by Lent, Ralston. Dodge and
ther San Francisco capitalists, members !
{ the company. for the sum of S3j0.000. ,
laimed TO have been paid TO him by them
Or part of his interest in said mines. and ,
nth whom he finally compromised for
10000 cash in hand. The suit was in /,
tituted in the Hardin county circuit court, ,
nd in the spring of 1873 was removed TO ,
ne United States Circuit Court at this ,
lace, with Messrs. Harlan and Brstow .
ttorneys for defendant. but before trial |,
ould be had the plaintiffs agreed to accept