The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1879-03-13
THE lIlNOND SWINDI Err,
Death Of the Mac VITO " De a Fortune
sailing .. valley vi n seweIA
Loulsville attar

Death Of The MAJ VITO ~ Dc n Fortune
sailing a valley vi n 5eweIs.
Louisville .etter.
Philip Arnold : Led IN bis beautiful
home in Elizst. shtown, this state, on
Saturday Last, OF pneumonia. Seven or
eight year, ago his dismond>mine specu-
lation made his name as well known
throughout the world as was ever that OF
John Law or any other shTewd schemer
who successfully imposed on credulo1s
z eculstors. Arnold was born in Har-
din county about fifty years ago, and
was bred there, being apPFentlcee 70 8
halter. He ran away bsiofe his tenn o.
service expired, and enlisted IS soldier
in the Mexican war. After peSce was
declared he went to California, and re-
msined there until 1872, whez ne sp
peared in Elisshethtown and opened q
large account in the local bank. 1t WAS
said that he had discovered sn immense
diamond field in California, aud bad
come home to enjoy, among old friends,
the fruits of his fortune. Speedily,
however, on the heels OF this rumOr
came the allegations of J.. B. Cooper, g
san Francisco bo0kkeeper, who made
affidavits that the diamond field was e
gigantic swlDdle, thst Arnold had
planned and persuaded him TO help car
ny out.
Arnold sailed for Europe with $40, 600,
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 SS7, 900 worth OF cheap
stones, something ike a bushel in qusn~
tity, and sailed back again to California.
Some months afterwsrd a number of
wealthy San Francisco speculstoTs,
among whom were William Ralstcn and
William NJ. Lent, we're told thst Arnold
and friend of his named Slack, also an
EEzabethtoWn boy, had stumbled upon
valley in which diamonds, sapphires,
and gems OF various kinds and values
were 10 be picked up vi h only the trou-
bic OF STOPPING for them. The lucky
finders had bsgfull 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 billiard>table an inch deep.
Arnold took his bag of gems 10 New
YorE, and company with a capital OF
$40, 00G,00O, was suggested to work the
mine. Nearly 800 900 worth of stock
was subscribed, and Henry Janin, an ex
pert, was engaged to explore the valley
and report upon the prospect. Arneld
led the expedition that was fitted out
for the purpose. They started from
Denver, Col, on Msy %, 1872, and. at
ter travelling nine days, Arnold told
them they were on the spot. They al
forwards sscertsined that they were only
thirty miles from the point OF departure
Bat the valley more than fulfilled their
snticipStions. They spent seven days
there, and gathered in that time 1000
carats of diamonds and 5000 carats Of
other precious stones Jsnin's report
was an enthusiastic one. There had al
ready been paid $250,000 TO Arnold
and, on Jsnins report, $500 900 worth
of the stock was sold, of which Arnold
got $300,000.
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 KDg, United States geologist,
to visit the valley. He soon ascartained
that the grerrd ha been plainly salt
ed" Holes ad BE- n poked with COM
mon stick inlu The cley, 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 $350,000. The suit was COM
promised by the payment of $4,000
No criminal action was ever begun
against either OF the men.
Arnold established bank in Elizabeth
town, Snd between him and l.. M.
L0nsghaw. who had also bank there.
there hsd been much rivalry and bad
feeling. A letter to commercial agency,
in juno LAST. rejecting on the financial
standing of Arnold's bank, be attributed
to his rival. and began suiC sgslnst him
for S25. coo damages II. y. Hoidsworth,
one OF Longsh&w' clerks, took an active
part in the controversy, SUD Aruald cow
hided him in the street. They met
again in q. barrcom August % last, and
Arnold knocked HOldsworth down.
Hoidsworth ran to the bSnk, got 3 snOt
gun, and fred at Arnold as he came from
the barroom. Arnold returned the fire
with his pistol, shooting I've times.
None OF the shots hit HoidswSrth, but
one of them struck John Anderson,
farmer, passing entirely through his
stomach. The second time Holdsworth
fired the entire load lodged in Arnold's
right breast aud shoulder. BE never
thoroughly recovered from the effects of
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 Furnishing in Kentucky. He was
very hospitabe e, his stable was noted
for it's fast stock, and his fruit-fsrm is
the boast in Hardin county.