Middlebury register. (Middlebury, Vt.) 1886-1937, 1888-02-24
THE GREAT DIAMOND FRAUD.
Making a Million Out of a Mine which
Had no Existence.

Making u Million Out of q Mine which
Had no Existence.
Among the many schemes to which
the great banker, Ralston, who loved to
be called the financial king of the Pacific
coast, devoted no small share of the
California bank, of which he was presi-
dent, was the exploiting of mines in the
Pyramid range of mountains close to the
border line which divides Arizona from
New Mexico. This was in the early
seventies, when speculation was rife, and
the discovery of bonanzas an every day
event. Among the employees of Ralston
in the Pyramid mines was one George
Arnold, man of meager education, but
bright and ambitious. In his shanty on
the wild mountain side he was ever
dreaming of some plan that would bring
Dame Fortune to his feet. While yet
dreaming his dream of wealth there
came to him the bright colored story of
the great diamond discoveries at Cape
Colony. His brain at once devised a
scheme which, in its way, equaled Laws
South sea bubble.
The soil around the Pyramid district
was rich in color and had character
enough to inaugurate any mining scheme,
however wild and impracticable. So
with a comrade, Jim Haggerty, with
whom he had long been associated,
Arnold made long tours over the sur
rounding country. After few weeks of
this kind of work he resigned his place in
the mines, with the given intention of
seeking the fairer fields of Mexico
He next turned up in San Francisco in
the fall of 1871. He Immediately found
Ralston, and even astonished that bold
operator by revealing that he had dis
covered in Arizona rich diamond fields
quite as extensive as those of Cape
Colony. From the grip sack he had
brought with him he poured forth a
wondrous display of rough diamonds
which had been washed from the yield
ing soil of the new find. They were
many and apparently of value.
Ralston, ever ready for a venture,
especially one which promised such daz-
cling results. entered at once into pro-
posed exploration of the new diamond
fields. He introduced Arnold to several
leading capitalists, who at once became
enthusiastic over the new Golconda. With
the rapid action peculiar to Californians,
cret Immediately determined to visit the
mines, and if found to be all right, to
purchase Arnold's claim and title for the
sum of $1,000,000. Arnold reluctantly
accepted the offer.
On their return to San Francisco the
capitalists wished to form a company.
In ten days it was accomplished. Ar
mold was paid his $1,000, 900 and made
superintendent of the new mines. He
at once make known the location of the
diamond fields, and they were visited by
several stockholders in the company.
Diamonds We're found by each and all of
them, and all went merry as a marriage
bell until Arnold skipped for the east.
1t was then thought best to call in an
expert, and Professor King. the well
known geologist, was selected He first
discovered that the ground around the
clump of trees on the bank of the Rio
Prieto had been cleverly ''salted" with
refuse diamonds, such as may be cheaply
bought in the marts of Amsterdam. 1t
was also seen that the diamonds found by
the capitalists had been ''tried" at
Amsterdam, and, as Professor King said,
"while diamonds may exist in Arizona.
it is hardly to be expected that nature
will produce them partly cut or polished"
The members of the new diamond COM
pany were both Thunderstorm and indig-
nant, and steps were quickly taken to
bring Arnold to justice. He was at his
home in his native Kentucky, and the
machinery of the law was brought to
bear upon him there. He was arrested,
but never taken out of the blue grass
country for punishment In some man.
ner he secured his release, and entered
upon life of wild enjoyment. His ex-
cesses were of short duration, and. after
five years of feasting and rioting with i'll
gotten wealth, he died.-Providence
Press.