The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-07-10
ARIZONA DIAMONDS.
An Ingenious Fraud That Won Mill
ion Dollars for a Miner.

newspaper correspondent, iound myself |
in little village OF New Mexico. 1t was |
apleasant spot, and i rested there few |
days. Naturally, in so small place my |
advent was noted, and on the second day |
OF my stay a lad came to me with strange |
message that Jim Haggerty was dying and
wanted to see me. | went to the small
abode pointed out, but death had pre-
ceded me. The dead man was indeed
cold JIM" as he was famillarly called. |
had known him well some years before in
California, where he was a noted mining
prospector, but had not met him since
His worn and haggard face recalled wildly
TO my mind 'the great diamond swinde,"
OF which he was a protector. had re-
ported the affair at the time OF its occur
renee, but briefly, because great as was its
magnitude in theAmighty food OF specula-
ton which then engulicd the Golden
State, it was but an episode in the passing
show. The story OF the swudlc has never
been written in full, | think, and its re-
counting fills one Of the most interesting
pages in the history OF the mining barons
OF California.
Among the countless 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 Cali
fornia bank, OF which he was president,
was the exploiting of mines in the Pyra-
mid range OF mountains close to the Dor
der line which divides Arizona from New
Mexico. This was in the early seventies,
when speculation was rife and the discov-
cry OF bonanzas an everyday event
Among the employees OF Ralston in the
Pyramid mines was one George Arnold, a
man OF meager education, but bright and
ambitious. In his shanty on the wild
mountain side, and over his bacon and
beans, he was ever thinking Of some plan
that would bring Dame Fortune 30 his
waiting feet and shower upon him her
princcly iavors. He saw men making for.
tunes by a single cast OF the die, and losing
them by single throw. While yet dream
ing his dream Of wealth there came to him
the bright-colored story OF the great dia-
mond discoveries at Cape Colony. His
teemng brain at once devised n scheme
which, in its way, equaled Lows South
Sea Bubble. lie had grown INSCRIPTIONS
in his desire, and had come to believe that
with him at least the end justified the
means
The soil around the Pyramid district was
rich in color, and had character enough TO
inaugurate any mining scheme, however
wild and impacticablc. so with com.
rade, Jim Haggcrty, with whom lac had
long been associated, Arnold made long
tours over the surrounding country. After
n few weeks OF this kind OF work he re-
signed his place in the mines, with the
given intention Of seeking the fairer fields
OF Mexico.
He next turned up in San Francisco In
Ike fall OF 1871. He Immediately found
Ralston, and even astonished that bold
operator by revealing that he had discoy.
cred in Arizona rich diamond fields quite
as extensive rs those Of Cape Colony
From the gripsack he had brought with
him he poured forth a wondrous display
OF rough diamonds which had been washed
from the yielding soil Of the new ini
They were many and apparently OF value
Raiston, ever ready for venture, espc-
cially one which promised such dazzling
results, entered at once into proposed
~sxplora,ion OF the new diamond fields
lie introduced Arnold to several leading
capitalists, who at once became enthusi-
astic over the new GOlcOnda. With the
rapid action peculiar TO Calilornians, the
clique who had been led into the -sccrct
Immediately determined to visit the mines,
and, II found 10 be all right. To- purchase
hrnOld's claims aud titles for the modest
but snug sum OF Sl.OOO,0OO. Arnold NJ.
luctantly accepted the offer.
In due course OF time the party Of CAPT.
talists interested left san Francisco for the
promised land. At Camp Ralston, the
headquarters OF the Pyramid mining specu.
lation, the eager capitalists were met by
Arnold aud llaggerty, the latter being in.
trOduccd as sort OF side partner, like the
silent marines Of the admiral Of III. VI. s
Pinaiorc. The two worthless were TO con.
duct Ralston and his associates 10 the dia.
mond Fields. The party was led by a
road as zigzag as q snake fence and ~
rough rs a corduroy road. Part Of the
way was along the ella river TO where the
Rio pricto cmptcs into IL. At this point
the eyes OF the iaded capitalisiic visitor
were carefully blindfoldcd and their ami
mails were led by their guides for some dis.
lance farther. When they We're permitted
90 see daylight again they were in the
midst OF Clump Of trees which stool
on the rivers bank. They were given
shoycs and picks aud told TO dig any
where about the clump OF trees. Each o
the visitors did 40, aud each in turn
brought forth one or more OF the precious
stones they sought for They were every
where. and the millionaire miners wiped
the clinging soil from oil their hand.
softly, as though Il was a sacred deposit.
On their return 10 san Francisco the
capitalists wished to form a company. IL
Ten days IL was accomplished. Arnold
was paid his 81 COCOON and made supcrin.
tendcnt Of the new mines. lie nj once
made known the location OF the diamond
- fields, and they were visited by scvcm
stockholders in the company. Diamond,
were found by each and all Of them, ant
all went merry NJ q marriage bell until Ar
mold skipped ior the east.
IL was then thought best 10 call In ~
expert, aud Prof. King, the well know
gcologisi, was selected. lie first discov
cred that the ground around the Clump 81
trees on the bank OF the Rio Pficto ha,
been ceycrly "salted" with refuse dia
monds, such rs may be chcaply bought IN
the marls Of Amsterdam. II was ais,
found that the diamonds found by th,
capitalists had been tried at Amstcr
dam, and, ~ Prof King said, "Whilc dia
monds may exist in Arizona, Il Is harill
~ b. expected that nature will produce
them partly cut or polished
The members Of the new diamond com
pany were both thundcniruck and indig
nant, aud steps were quickly taken I,
bring Arnold 20 justice. lie was at hi
home In his native Kentucky, and th,
machinery u the law was brought 10 bca
upon him there. lie was arrested, bu
was never taken ont Of the blue gras
country for punishment In some name
hc secured his release and entered upon
life Of Wild enjoyment His excuses wen
Of short duration, and after live ycars O
ieasiing and roing with III gotten NealUl