The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-12-05
A DIAMOND swINDLE.
MR.. BARLOW WANTS TO GET BACK HIS IN
vEsTMENT AND SUES WIDOW.

MR.. BARLOW WANTS TO GET BACK HIS IN
vEsTMENT AND SUES WIDOW.
10y TELEGRAPH TO THE HERALD
LOUISVILLE KY, Dec. 4. 1879.
suit for S143,OO0 was filed in the United
States Circuit Court to-day by Samuel L. NJ.
Barlow. OF New York, against Mary Arnold.
wife Of the late Phillip Arnold. of dia-
mond fame, and executrix of his last will. Two.
items are embraced in the suit. Ono for 100000
represents the cash fraudulently obtained by
Arnold from the plaintiff. and the othel
S43, 900 represents the interest the 100000 from
July 20. 1877 The following facts contained
in Barlow's petiton:--He states that in
October 1871. Ashburg Harpending. William
r. Lent and George T.. Dodge. under
pledge of secrecy communicated TO HIM that Philip
Arnold had discovered a diamond field in
1 the h o, the territories OF 'he states on
As proof of their statement they exhibited a bag
which contained diamonds in the rough. together
and earth which they said discovered by Ar
mold in, the alleged diamond field. and that
large quantity from the same field. exceeding in
value :ooo,ooo, had been deposited in the
Bank OF California. i'll San Francisco. They
claimed to represent Arnold. but he refused
to enter into any business compact with any one
but Arnold The three men accordingly in.
duced Arnold to 20 to New York and call
!, 1871. He then confirmed the statements made by
Harpendng and his associates, and further
stated that in crossing stream his raft
obtained on his visit which were worth
million dollars, lost. Soon after harlow tele
graphed to the cashier of the Bank of Cafornia in
quiring about the diamonds which were said
to be deposited in that bank and received
reply from the cashier that a bag Of
great value had been deposited with him.
This led Barlow to believe the story Of
Arnold and his associates true. and
agreed to advance 100000. providing they
could sc. act passed by Congress secure them
in the fruits of the discovery and further on
condition that SURVEY should be made of the
location by competent engineer. Arnold replied
that he would be perfectly willing to have the
ground surveyed, but 1t would be impossible at that
season OF the year, the ground was covered with
snow, and it could not be surveyed without great
trouble and danger. The result of the conference
was that. eventually, the Golconda Mining
Company formed, and in the spring
Mr.. Barlow named an engineer 70 60
to the spot and report. Arnold and
his partners accompanied the engineer to the place.
and 1t that everything arranged TO deceive
him. Diamonds were, indeed, found in the dirt, aud
the engineer deluded by the advenurers into the
belief that diamond bonanza at last found
in this country. He went back to New
York and reported that it . bond
Gde mine. Mr.. Barlow then furnished
100000. Shortly after the rumor began to crcu-
late that the whole thing a huge fraud.
Another engineer despatched to the so-called
diamond field, and reported the thing grand fraud
and that the ground had been ''salted." Litiga-
ton was then begun in the courts. and after
q long legal fight the thing wound up in q COM
promise but it seems by the filing of the present
suit that it is not yet settled.