The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1879-03-20
THE DIAMOND sWINDLER.
Death Of tEae Men who Made a Fortune
Sailing a valley with asaeIE.
Louisville Letter.

Death Of, tIae szea who Made "a Fortune
Sailing n valley with asTeIE.
Louisville Letter.
Philip Arnold died in his beautiful
! home in ElizabethtoWn, this state, on
Saturday last, Of peneumonis. Seven OF
eight years ago bis diamond~mine specu-
lstion made his name IS we'll known
throughout the world IS WAS ever that OF
John Law or any other shrewd schemeI
who successfully imposed on credulous
e eculators.- Arnold was born in Har-
din county about fifty years ago, and
was bred there, being apprenticed to s
halter. He ran away before his term oi
service expired, and enlisted as g soldier
in the Mexican wsr. After peace was
declared ne went to California, and re-
mained there until 1872, when he ap-
peared in ElizabethtOwn and opened g
large account in the local bank. It was
said that he had discovered an immense
diamond field in California, and had
| come home TO enjoy, among old friends,
the fruits of his fortune. Speedily,
however, on the heels of this rum0r
came the allegations of J. 3. Cooper, g
San Francisco bo0kkeepeT, who made
effidavits that the diamond field was a
gigantic sWindle, that Arnold had
planned and persuaded him to help car
~ out.
Arnold sailed for Europe with $40, 900,
and bribed two sailors to 90 among the
London jewellers and buy what diamonds
they could in the rough. He got togeth-
in this way $37, 900 worth of cheap
stones, something like bushel in quan~
tity, and sailed back again to California
Some months afterw2rd a number of
wealthy San Francisco spectators,
among whom were William Ralstcn and
William NJ. Lent, were told that Arnold
and friend of his named Slack, also an
Elizabethtown boy, had stumbled upon
q valley III which diamonds, sapphires,
and gems of various kinds and values
were to be picked up with only the trou-
bic of STOPPING for them. The lucky
finders had bagfull of the jewels in their
possession that they claimed to have gath
cred in the valley, and they were dis
played in such profusion that one OF the
speculaters said that they covered one
end of q billiardStable an inch deep.
Arnold took his bag of gems to New
York, and a company with capital of
100000, was suggested to work the
mine. Nearly 500, 900 worth of stock
was subscribed, and Henry Janin, an ex-
pert, was engaged to explore the valley
and report upon the prospect. Arnold
led the expedition that was fitted out
for the purpose. They started from
Denver, Col, on May %, 1872, and, af-
ter travelling nine days, Arnold told
them they were On the spot. They sf-
terWards ascertained that they were only
thirty miles from the point Of departure.
But the valley more than fulfilled their
anticipstions. They spent seven days
there, and gathered in that time 1000
caTats of diamonds and 5000 carats OF
otker precious stones Janin's report
was an enthusiastic one. There had all
ready been paid $250,O0O to Arnold.
and, on Janin's report, $400 600 worth
of the stock was sold, of which Arnold
got 100000.
Information of the alleged discovery
soon reached England, and the London
Times demonstrated the geological im~
possibility OF there being so many jewels
OF such various kinds in one locality,
and further exposed the swindle by max
ing known the fact that persons from
California had attracted attention the
year before in London by buying up all
rough diamonds TO be found in the city.
The managers of the company then sent
Clarence KING, United States geologist,
to visit the valley. He soon ascertained
that the ground had been plainly " salt
ed" Holes had been poked with COM
mon stick into the clay, the Jewels
dumped into them, and then stopped up
again.
A few weeks after the exposure several
California capitalists sued Arnold and
Slack in the Kentucky courts for the re-
covery of $4,000 The suit was COM
promised by the payment of Sl50,000.
No criminal action was ever begun
against either of the men.
Arnold established a bank in Elizabeth
town, and between him and L. NJ.
LOnsghaw. who had also a bank there,
there had been much rivalry and bad
feeling. a letter to q commercial agency,
| in June last, rejecting on the financial
Standing of Arnold's bank, he attributed
to his rival, and began a suit against him
| for S25. 600 damages. II. y. HOldsworth,
| one of L0ngshaw's clerks, took an active
part in the controversy, and Arnold COW
hided him in the street. They met
again in baTroom August 22d last, and
/ Arnold knocked Holdsworth down.
| Holdsworth ran to the bank, got shot
gun, and fred at Arnold as he came from
| the barroom. Arnold returned the fire
with his pistol, shooting five times,
None OF the shots hit Holdswsrth, but
one of them struck John Anderson, q
farmer, passing entirely through his
stomach. The second time Holdsworth
fred the entire load lodged in ATnold's
right breast and shoulder. He never
thoroughly recovered from the effects oi
the wound, although it was not the inn
mediate cause of his death. None of the
persons engaged in the melee were prose
Cuted.
Mr.. Arnold's bank was one of the
most fourishing in Kentucky. He wal
very hospital e, his stable was noted
the boast in Hardin county.
] ~ Cnnl.c. AL,n EInn,hnnA .