The Osceola times., 1879-03-15
THE IIAMOND swINDLLR.
Death Of the Maa who Mad % Fortune
saItfss IA valley with Srweis.

Death Of .he Mao who Mad. Fortune
saItfns ~ valley with Srweis.
louisville Letter.
Philip Arnold died in his beautiful
horie in Elizsbethtown, this state, on
Saturday last. of peneumonis. Seven or
eight years ago bis dismond-mine speeu'
lation made his name as well known
throughout the world "a was ever that OF
John Law or any other shrewd schemer
who successfully imposed on credulous
spectators. Arnold was born in Har.
din county shout fifty years ago, and
was bred there, being apprenticed TO a
hstler. He ran away before his term OF
service expired, and enlisted as soldier
in the Mexican war. Alter peace was
declared he went 10 California, and re-
msined there until 1872, when he ap.
peared in Elizabethtown and opened a
large account in the local bank. 1t was
said that he had discovered an immense
diamond field in California, aud had
come home to enjoy, among old friends,
the fruits of his fortune. Speedily,
however, Oh the heels OF this rumor
came the allegations of J. b. Cooper, a
san Francisco bd0kkeeper, who made
affidavits that the diamond field was a
gigantic swindle, that Arnold had
planned and persuaded him TO help car
ry out.
Arnold sailed for Europe with SAC, 900,
and bribed two sailors to go among the
London jewellers and buy what diamonds
they could in the rough. He got togeth.
in this way $27 900 worth OF cheap
stones, something like bushel in qusn-
tity, and sailed back again to California.
Some months sfterwsrd 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
a valley in which diamonds, sapphires,
aud gems OF various kinds and values
we're to be picked up wi only the trou.
BILE OF stopping for them. The lucky
finders had bsgiull of the jewels in theil
possession that they claimed to have gath
cred in the valley, and they were dis
played in such profusiOu that one OF the
speculstsrs said that they covered one
end OF a billiard>tsble an inch deep.
Arnold took his bag of gems to New
York, and company with a capital Of
$40 600, 600, was suggested to work the
mine. Nearly 500 900 worth of stoch
was subscribed, and Henry Janin, an ex
pert, was engaged to explore the valley
and report upoh the prospect. Arnold
led the expedition that was fitted out
for the purpose. They started from
Denver, Col, on May 90, 1872, and, af
ter travelling nine days, Arnold told
them they were on the spot. They af
terwards sscertained that they were only
thirty miles from the point OF departure
But the valley more than fulfilled thei
anticipations. They spent seven day
there, and gathered in that time l,00t
carats OF diamonds and 5000 carats o
other precious stones Janin's repor
was an enthusiastic one. There had al
ready been paid s250,000 to Arnold
and on Jsnin's report, S400 600 wortl
of the stock was sold, Of which Arnolt
GOT $500, 900.
Information of the alleged discovery
soon reached England, and the Londol
Times demonstrated the geological i'm
possibility OF there being so many jewel
OF such various kinds in one locality
and further exposed the swindle by max
| ing known the fact that persons trsn
| California had attracted attention tn
year before in.London by buying up nj
rough diamonds to be found in the city
The managers Of the company then sen
Clarence King, United States geologist
| -. al. IL ,un
that the ground had been plainly "sslt
ed" Holes had been poked with com
mon stick into the clay, the jewel
dumped into them, and then stopped u
again.
a lew weeks after the exposure sewers
California capitalists sued Arnold an,
Slack in the Kentucky courts for the re
covery OF $3.50, ,000 The suit WAS com
promised by the payment OF $500
No criminal action was ever begul
against either Of the men.
Arnold established bank in Elizabeth
tewn, and between him and l.. NJ
Lonsehaw, who had also bank there
there had been much rivalry and bs,
feeling A letter to a commercial agency
in June last, rejecting on the financia
staGding of Arnold's bank, he attribute,
to his rival, and began ssuit against hin
for $25. eco damages. H. Y. Holdsworth
one OF Longshaw's clerks, took an sctiv
part in the controversy, aud Arnold COW
hided him in the street They me
again in a bsrroom August 22d last, an,
Arnold Knocked Hollswor,h down
Holdsworth ran to the bank, cot shot
gun, and fred at Arnold as he came from
the bsrroom. Arnold returned the fir
with his pistol, shooting FIVE times
None of the shots hit Holdswsrth, bu
one of them struck John Anderson,
farmer, passing entirely through hi
stomach. The second time Holdswortl
fired the entire load lodged in Arnold
right breast aud shoulder. He neve
thoroughly recovered from the effects o
the wound, although it was not the i'm
mediate cause of his death. None of tn
persons engaged in the melee were prose
cuted.
Mr.. Arnold's bank was one of tn,
most furnishing in Kentucky. He wa
very ho-pitsb e, his stable was note,
for its last stock, and his fruit-fsrm i
the boast in Hardin county.
Something New in Ocean Steamers
Yaohtsp,su and tnuriata ,yhc u;s;, l. ,