GREAT AMERICAN FRAUD.

Tuapeka Times, Volume V, Issue 263, 13 February 1873, Page 7

GREAT AMERICAN FRAUD.

(News Letter.) The report of Clarance King, of the United States Geological Survey* exposes the fraudulent character of t!ie Harpending Diamond Field in Colorado Territory. He shows tbe diamonds, rubies, and other precious stones, brought thence ; by successive exploring parties (or a portiSn of them) bad been artificially distributed, orj'salted," through the ground. Mr. King made his report to the Executive Committee the Directors of the San Francisco * -nd New York Mining and Commercial Company on tbe 11th November. The Committee immediately sent a party to the ground in charge of their general manager, Mr. D. D. Colton, accompanied by Mr. King and Mr. Janin, who originally reported favorably of the "find." This party returned on Sunday last, and on* Monday the. directors," aft- er receiving their report, gave tbe full details of tbe disclosure to the public. It appears that the scheme had been over two full years in preparation. About eighteen months ago Messrs., Harpending, Roberts, Arnold, Slack, Lent, and Dodge deposited confidentially with a leading banking bouse a sealed parcel said to rough diamonds, rubies, garand sapphires, which were represented to have been gathered in a neighbouring territory. It was found necessary to secure. Congressional legislation in order to acquire a title to ■ tbe ground. The services of a distinguished New York lawyer and of a Republican- Congressman were retained, and the requisite legislation procured. The two men who are found in active connection with Harpending and Roberts in these earlier steps of the development appear on^the scene in the persons of Slack and Arnold, both old Californian miners. They had been prospecting in New Mexico and Arizona, aud were familiar with the garnets which abound in that region, tbe ant-bills on the sides of which they are seen plentifully scattered, etc. A 6 eld of appropriate formation for tbe production of diamonds was selected — apparently by some one who had become familiar, by reading or otherwise, with the diamond fields of South Africa. Tbe Congressional legislation having been secured, tbe next step was to bring tbe scheme forward. Large numbers of gems were exhibited to Tiffany and Co., diamond merchants and jewellers of New York,"whose interest in tbe affair was secured. Leading California operators were also joined to tbe project. These selected a nrineralogisj and mining engineer of highest reputation on the Pacific Coast, to make the proper examination. Before setting out he is informed that stones from the "new field, to a value approximating to 300,000 dollars, are on deposit with a bank in San Francisco, while a member of the firm of Tiffany ■ ond Co. informs him that certain other scones, understood to be of tbe same dad, on deposit with Duncan, Sherman, and Co., of New York, reach a value of 150,000d01. Thus he is successfully impressed with tbe idea that his mission" is specially to ascertain and estimate tbe probable extent and value of a field of undoubted genuinenss. General Dodge, of Pacific Railroad connection, with Harpending, Rubeiy, Arnold, and Slack, accompany, Mr. Janin, the man of science, the ground. Some very petty quarrelling between Harpending and Dodge ensues during the trip, which Mr. Janin accommodates at great apparent personal risk. Arrived at tbe ground, he finds diamonds and rubies at a number of points. The earth dug has to be transported by hand some distance to running water to be washed. Itappears that tbe larger part of the stones are introduced into it by tbe assistants who engage in this operation. Mr. Slack is most successful in finding the stones, A large of Mr. Janin's time on the ground is' consumed in surveying, &c. Mr. King (in his report) alludes to the crafty way in which the gems were distributed — poked with sticks into the ant-hills, sprinkled on the ground between ifche richer portions of deposit, carefully scattered in the stream running below the bluff, where they would naturally be washed by the weather, and where any geologist would naturally look for them. As a result, Mr. Janin was successfully deceived, and upon his report a number of leading bankei-s and merchants were associated in tbe en. terprise. How successive expeditions ' were fitted for the field and re-called or dispersed upon one ptausible pretext or another, we need not rehearse. Two facts come out prominently in the sequel. When the story came from London that dealers: in precious stones had sold under incomprehensible circumstances a mimber of rough stones to two young Americans, the directors of the diamond company were staggered. If the London story were true, as told, tbe only conceivable explanation that connected the purchase was the new American find. JPer contra a large part of the American stones bad been on special deposit both in the San Francisco bank and in New York a year prior to tbe alleged sale. The stones were at once forwarded to London for identification by tbe sellers. But at this juncture General Dodge stepped forward with a portion' of soil taken by bim from tbe diamond ground, which, underlie microscope, revealed couutless minute diamonds. From that moment no iota of suspicion floated in the fitted of any one of the parties

interesfed. *JPhis 'was the master touch and crowning glory offctie fipauJXJp to this tinjfe it Had been conducted with high art, jiut this gtrolte must bo pronounced the touch of genieus General Dodge said that he had himself gathered the soil on the ground. A* portion of it was afterwards submitted to, the California Academy, of Sciences, and discussed at their public meeting. It had not bqpurred\ to anybody but . General Dodge to bring in a sample i for microscopical examination. The true sagacity and sound business jJrinciple.of the gentlemen embarked in tbe undertaking stood, however, like a bulwark to ward op injury from the innocent who might have suffered through their example. They bad caused tbe whole of the incorporate stock to be locked up under tbe key of one of their number, and there they had resolutely detained it, resisting all cajolery to release any part of it, even after General Dodge's providential package of microscopical diamond dust had dissipated from their own minds' tbe last flicker of suspicion that there could be anything unsound in the 'en* terprise. With all its brilliant preparation, the great diamond fraud hag then proven, in ft larger sense, a failure. Tbe question now is — Who salted tbe Diamond Field ? It is understood that tbe trustees are devising ways and means to ferret out the whole thing, which will be prosecuted without respect to person or persons, and tbe public need bave no anxiety lest tbe question be allowed to remain unanswered.

The " Medical Times and Gazette" has tbe following paragraph regarding emigration to New Zealand : — Complaints are constantly reaching us ot the treatment to which surgeons to emigrant ships to New Zealand are subjected. From what we can learn, it appears that some of tbe ships sent out are most imperfectly overhauled by tbe authorities, that the vessels are badly ventilated, and tbe comfort of the sick all but ignored. Moreover, the medical officers are subjected to neglect and ill-treatment on tbe part of the captains, and even tbeir medical duties are interfered with. It appears there are rules laid down with respect to the position and authority of tbe captain over the doctor. From what we have been made acquainted with, we should advise our brethren to be extremely careful in accepting an appointinent as surgeon *° * n emmigrant ship bound to New Zealand. If he should do so, we advise bim strongly to see before be leaves the port of London that everything connected with his own cabin and bis medical appliances is complete. Moreover, let him have a written contract with tbe owners specifying bis duties, and let him "keep tbe captain-— often an ignorant and ill-bred fellow— at bis proper distance. Word-promises go for nothing at sea ; • but even tbe "ruffians" of tbe mercantile marine know that they are bound by written agreement, A ease involving a question of considerable importance was beard at tbe Warden's Court, Inangabur, before Mr. Warden Broad. Mr. Frank Matbias, as secretary to tbe Hit or Miss Company, Qaffney l s Line, sued four shareholders, among whom were some well-known Greymouth gentlemen, for certain calls due, Mr. Pitt appeared for tbe defence, and argued, among other reasons as a cause why tbe plaintiffs should be nonsnited, tbat tbe defendants were not liable, as a company had not been registered under the Act, and no deed of association bad been signed. His Worship very properly overruled tbe objections, and ultimately gave a verdict for the plaintiffs with costs, remarking that he could not for a moment entertain the plea of non-indebtedness, as, were such I a plea allowed very few of the claims in the district could be worked. SDboir shares were protected by the certificate of registration, and such being tbe case, it could not be right that they should be able to deny liability or possession whenever it pleased them to do so. Nothing was calculated to do more barm to the district than to bave difficulties thrown in the way of . the miners obtaining contributions I from defaulting shareholders, — " Grrey I River- Argus." i On the 29th November, Annie Gur- [ H», widow, aged 29, and her daughter, Ada MiMicent G-urlin, 2 years old, were found dead in their house, Cross. Street, Thompson Street. Manchester, by tbe mother of the former. Annie Gurlin lost her husband some time ago, and ever since has been in a state of despondency. Frequently she had been heard to say tbat she would like to poison herself and children, and only on Saturday her mother took all the children from her except Ada. It appeared that a fortnight ago, she induced a chemist to sell her an ounce of prussic acid, and the bottle which had .contained it was fo,und on the floor, besides the bed in which the bodies lay. A post mortem examination showed that this had caused death* and given at the inquest left no doubt that the deceased woman was insane. A verdict to that effect was returned, and the jury recommended the prosecution of a woman named Walker, who s had assisted the deceased in deceiving tbe chemist and obtaining the poison. - 'i