Daily Los Angeles herald., 1878-09-06
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week or 90 ago, revives the story
b the Diamond Swindls which
oxcIted California about six or
sven years ago. In all its details
e rlvaled George LAWS South Sea
bubble. Arnold was originally o
hatter's apprentice Ia Elizabeth
town, but went to California when
: lad. What he did during the In
terval is not clearly known, but he
suddenly appeared in Elizabeth
town six or seven years ago and
opened big account in the local
bank; but before that it had been
reported that he had discovered q
new 0olconda somewhere among
The Western mountains, and was
only IN Kentucky to enjoy some
part Of the millions he had gained.
Then after q while came the expos
ure. J. b. Cooper, the San Fran
cisco bookkeeper, made oath that
Arneld had planned the swindle
and had persuaded him to help In
It. Arnold sailed for London with
some $40, 900 in his pocket. On
board the vessel he had bribed two
sailors with $500 apiece to go out
among the London jewellers on
fasfr arrival there and purchase
what they could of diamonds in
the rough. In this way he got to-
Gother $4,000 worth OF cheap
otones like a bushel OF
thsm-and sailed back again for
San Francisco. Several months
latsr George d. Roberts, General
George s. Dodge. William M. Lent
and William Ralston, all notable
among the wealthy spscu lators Of
California. were SUCCESSFULLY let
Into the tremendous secret that
Arnold aud one Slack-s:so from
Elisabethtown, and q playfellow o1
Arnold's when q boy-while pros
psoting in the mountains, had
stumbled upon q valley in which
diamonds, rubies, emeralds, sap.
phires, and gems Of all kinds anG
values were to be picked up as peb
.bles along the ocean beach. They
had brough back with them al
that they could carry, and u bag
full Of the jewels would be emptied
before the astonished beholder. A
Robsrts's house, Gen. Dodge sale
that they covered one end of til,
billiard table an inch deep.
These fnanciers invested Iargs
sum almost at tho first sight of tn,
Jewels. Then Arnold and Genera
Dodge went on to New York an,
laid their scheme for forming .
stock company WITH $4,000, ,00'
capital before certain chosen ricl
men Of the metropolis. These wer,
Mr.. 8. L. NJ. Barlow, Mr.. Angus
Belmont. and Mr.. Charles riffa ny
OF the great jewslry firm. Arnolt
had carried his bushel of gems will
him and carried them from th'
Fifth Avenue Hotel to Mr.. Bar
lows Office and back again wrap
ped up in brown paper, and tina
again in little red bag. The,
were daily spread out on the offic,
table, and Mr.. Tiffany was intrust
I'd with some of them to test. H,
was incredulous. for, as he said
there was o curious diversity in th,
Jewels to have all come from tn,
same locality. Mr.. Belmont ais,
fought shy Of investment, but Mr.
Barlow, Gen. Mcclellan. and per
haps others in New York bough
from $780, 900 to 100000 of tn,
stock.
An expedition, equipped will
arms, provisions, and baggage fol
= sixty days trip rendezvoused a,
Denver, Colorado. Henry Janin
tho best known and most trusted
expert on the California coast, had
bssn engaged to superintend the
Investigation, and with General
Dodge, Harpending, another Cali.
forpis capitalist who had large
block Of diamond shares: Arnold
and . young Englishman named
Rubsry, started from Denver May
20, 1872, out into the wilderness.
Arnold had positively declined to
give even . hint Of where his mesa
might be, and, at the head of the
column, led the explorers through
= most devious and puzzling course.
!, They travelled nine days, and then
Arnold told them they were on the
SPOT. Afterward they learned that
they were really but thirty miles
or 20 from the point of depart.
ure. But In the valley
their widest hopes seemed
fulfilled. Every member of the
expedition found jewels for the
trouble Of picking them out Of the
hard clay, Arnold and Slack al
Wsys being on hand to direct the
exact spot to look for them. They
opont seven days In the valley, and
Iathersd together about one thous-
and carats OF rubies, amethysts
and other precious stones. Then
they started back for New York,
and there Janin's enthusiastic re-
pert on the apparently exhaustless
value Of the "dnd'' was prepared,