THE SUPPOSED GREAT DIAMOND.

Evening Star, Volume VII, Issue 1989, 20 September 1869, Page 3

THE SUPPOSED GREAT DIAMOND.

The Sydney Empire of August 10 has the following : We stated in Saturday’s Empire that the supposed diamond had been conditionally purchased by Mr Butters and other gentlemen from Melbourne. The precise nature of the bargain entered into with Mr Townsend and his friends is as followsl. The purchasers have formed a company in 100 shares, and have given the A.S.N. Co. a cheque for a certain sum in satisfaction of their de-

maud ; and have likewise guaranteed to the Treasurer the amount of any claim the Government may have. 2. They are to give Mr Townsend L4OO in cash before the bag is opened in -which the supposed diamond is contained—to be paid down this day, at noon, at the Eoyal Hotel. 3. If the stone proves to be a veritable diamond, Mr Townsend is to receive a further sum of L 4,00 together with twenty shares out of the 100 in which the company for its purchase is divided. The original price of the shares was lixed at L 5 each—that is, eighty shares—L4oo to pay Mr Townsend, and twenty paid-up shares for Mr Townsend himself as part of his remuneration for giving up the bag in which the diamond is contained unopened to the company. So great, however, was the demand for shares on Saturday, that when it was generally known that a company was formed, the desire was so great that they quickly rose to a premium, and the first holders soon sold half their original shares at LlO each, and thus realised the L4OO to be paid to Mr Townsend before they

were called upon to disburse a penny. The excitement did not even stop here, for the second buyers soon demanded and obtained a premium ; and we are informed on good authority that the L 5 scrip were selling on Saturday night for L3O each. As soon as arrangements had been made to form a company to buy the diamond, telegrams were dis-

patched to Melbourne to that effect; and also to say that ten original shares bad been reserved for Victoria speculators. Almost instantly the following telegram was received in Sydney in reply Melbourne, Saturday. 2.4 p.m. The ten sold. Can we Lave more ?

Ten more were promised at a premium of L 5 each —that is, a profit of JOO per cent, on the first'cost—and the next telegram was as follows ; Melbourne, Saturday, 4.55 p.ra. Secure me three more at same price. Beply to night and offer LlO more—sure to sell,

And then in less than another hour the shares wont up to LIS each in Melbourne, as the following telegram will show :

Melbourne, Saturday, 7.30 p.m. Can cot LlO premium—shall we sell. disappointed. Do get him one.

Seeing the rate at which the price was rising in Melbourne, the holders in Sydney took the hint, and on Saturday night half-shares (representing, of course, only l-200th part of the value of the stone) were actually sold at LIS each ! To-day, at noon, the stone is to be handed over by the Bank of NewSouth Wales to Mr Townsend. It is then to be taken to the Royal Hotel,

when, upon receipt of L4OO, and scrip representing twenty original shares, L 5 each, paid up, with a guarantee for L 4,000 more if the stone should prove to be a diamond, Mr Townsend is to hand the bag containing it over to Mr Butters as representing the shareholders. Whether the bag shall be then opened, or when, or whether it shall be taken to Melbourne unopened,

will be for the shareholders to determine. The excitement that will arise to-day before the matter is settled may be better imagined than described. The supposed diamond was found by Mr Townsend, between Armidale and Bendemeer, in New England. It is in size about as large as a turkey’s egg, and of a somewhat similar shape. In its present state it weighs 7oz. 14dwt. Several tests have already been applied to the stone, and the confidence of the manager of the Bank of New South Wales at Armidale was such that he advanced the sum of L7OO on it.

The Goulhurn Herald states that a clay or two ago, Mr Benjamin Brown, of Bonrke street, found a stone pronounced to be a sapphire, in the Woltwo miles above Goulbourn.