The diamond hoax of 1872 was a swindle in which a pair of prospectors sold a false American

diamond Diamond is a Allotropes of carbon, solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the Chemical stability, chemically stable form of car ...

deposit to prominent businessmen in

San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...

and

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

. It also triggered a brief diamond prospecting craze in the western

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

, in

Arizona Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...

New Mexico ) , population_demonym = New Mexican ( es, Neomexicano, Neomejicano, Nuevo Mexicano) , seat = Santa Fe , LargestCity = Albuquerque , LargestMetro = Tiguex , OfficialLang = None , Languages = English, Spanish ( New Mexican), Navajo, Ker ...

Utah Utah ( , ) is a state in the Mountain West subregion of the Western United States. Utah is a landlocked U.S. state bordered to its east by Colorado, to its northeast by Wyoming, to its north by Idaho, to its south by Arizona, and to it ...

Wyoming Wyoming () is a U.S. state, state in the Mountain states, Mountain West subregion of the Western United States. It is bordered by Montana to the north and northwest, South Dakota and Nebraska to the east, Idaho to the west, Utah to the south ...

, and

Colorado Colorado (, other variants) is a state in the Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the western edge of t ...

History

In 1871, veteran

prospector Prospector may refer to: Space exploration * Prospector (spacecraft), a planned lunar probe, canceled in 1962 * '' Lunar Prospector'', a NASA spacecraft Trains * Prospector (train), a passenger train operated by the Denver & Rio Grande Western ...

s and cousins

Philip Arnold Philip Arnold (1829–1878) was a confidence trickster from Elizabethtown, Kentucky, and the brains behind the legendary diamond hoax of 1872, which fooled people into investing in a phony diamond mining operation. He managed to walk away from t ...

and John Slack traveled to

. They reported a

diamond mine There are a limited number of commercially available diamond mines currently operating in the world, with the 50 largest mines accounting for approximately 90% of global supply. Diamonds are also mined alluvially over disperse areas, where dia ...

and produced a bag full of diamonds. They stored the diamonds in the vault of the

Bank of California The Bank of California was opened in San Francisco, California, on July 4, 1864, by William Chapman Ralston and Darius Ogden Mills. It was the first commercial bank in the Western United States, the second-richest bank in the nation, and considered ...

, founded by

William Chapman Ralston William "Billy" Chapman Ralston (January 12, 1826 – August 27, 1875) was a San Francisco businessman and financier, and the founder of the Bank of California. Biography William Chapman Ralston was born at Wellsville, Ohio, son of Robert Ralst ...

. Prominent financiers convinced the "reluctant" Arnold and Slack to speak out on their find. The cousins offered to lead investigators to their field. Investors hired a mining engineer to examine the field. They planted their diamonds on a remote location in northwest

Colorado Territory The Territory of Colorado was an organized incorporated territory of the United States that existed from February 28, 1861, until August 1, 1876, when it was admitted to the Union as the State of Colorado. The territory was organized in the ...

. They then led the investors west from

St. Louis, Missouri St. Louis () is the second-largest city in Missouri, United States. It sits near the confluence of the Mississippi River, Mississippi and the Missouri Rivers. In 2020, the city proper had a population of 301,578, while the Greater St. Louis, ...

in June 1872. Arriving by train at the town of Rawlins, in the

Wyoming Territory The Territory of Wyoming was an organized incorporated territory of the United States that existed from July 25, 1868, until July 10, 1890, when it was admitted to the Union as the State of Wyoming. Cheyenne was the territorial capital. The bou ...

, they continued on horseback. But Arnold and Slack wanted to keep the exact location a secret, so they led the group on a confusing four-day journey through the countryside. The group finally reached a huge field with various gems on the ground. Tiffany's evaluated the stones as being worth $150,000. When the engineer made his report, more businessmen expressed interest. They included banker Ralston, General George S. Dodge,

Horace Greeley Horace Greeley (February 3, 1811 – November 29, 1872) was an American newspaper editor and publisher who was the founder and newspaper editor, editor of the ''New-York Tribune''. Long active in politics, he served briefly as a congressm ...

Asbury Harpending Asbury Harpending (September 14, 1839 – January 26, 1923) was an adventurer and financier in San Francisco, California, Mexico, and New York City. Early life Harpending was born in Hopkinsville in Christian County in southwestern Kentucky. At th ...

George McClellan George Brinton McClellan (December 3, 1826 – October 29, 1885) was an American soldier, Civil War Union general, civil engineer, railroad executive, and politician who served as the 24th governor of New Jersey. A graduate of West Point, McCl ...

, Baron von

Rothschild Rothschild () is a name derived from the German ''zum rothen Schild'' (with the old spelling "th"), meaning "with the red sign", in reference to the houses where these family members lived or had lived. At the time, houses were designated by sign ...

, and Charles Tiffany of

Tiffany and Co Tiffany & Co. (colloquially known as Tiffany's) is a high-end luxury jewelry and specialty retailer, headquartered on Fifth Avenue in Manhattan. It sells jewelry, sterling silver, porcelain, crystal, stationery, fragrances, water bottles, watc ...

. The investors convinced the cousins to sell their interest for $660,000 ($ million today) and formed the San Francisco and New York Mining and Commercial Company. They selected New York attorney Samuel Latham Mitchill Barlow as legal representative. Barlow convinced them to add U.S. Congressman Benjamin F. Butler to the legal staff. Barlow set up a New York corporation known as the Golconda Mining Company with capital stock of $10,000,000, while Butler was given one thousand shares for amending the

General Mining Act of 1872 The General Mining Act of 1872 is a United States federal law that authorizes and governs prospecting and mining for economic minerals, such as gold, platinum, and silver, on federal public lands. This law, approved on May 10, 1872, codified the ...

to include the terms “valuable mineral deposits” in order to allow legal mining claims in the diamond fields. The

U.S. Attorney General The United States attorney general (AG) is the head of the United States Department of Justice, and is the chief law enforcement officer of the federal government of the United States. The attorney general serves as the principal advisor to the p ...

, George H. Williams issued an opinion on August 31, 1872, specifically stating that the terms “valuable mineral deposits” included diamonds. Financiers sent mining engineer Henry Janin, who bought stock in the company, to evaluate the find. Arnold and Slack led him and a group of investors to just north of what is now called Diamond Peak in the remote northwest corner of the Colorado Territory, where Janin and the investors found enough diamonds in the soil to satisfy themselves. Janin submitted a highly optimistic report, which found its way into the press. Geologist

Clarence King Clarence Rivers King (January 6, 1842 – December 24, 1901) was an American geologist, mountaineer and author. He was the first director of the United States Geological Survey from 1879 to 1881. Nominated by Republican President Rutherford B. Hay ...

who had led a survey team that recently completed a

Geological Exploration of the Fortieth Parallel The Geological Exploration of the Fortieth Parallel was a geological survey made by order of the Secretary of War according to acts of Congress of March 2, 1867, and March 3, 1869, under the direction of Brig. and Bvt. Major General A. A. Humphrey ...

had a chance meeting with Janin on a train. King and his team were alarmed at the reports of such an prominent diamond field which their survey had not noted. King sent geologist

Samuel Franklin Emmons Samuel Franklin Emmons (March 29, 1841 – March 28, 1911) was an American geologist. He was born in Boston, Massachusetts. He graduated from Harvard University in 1861 and studied at the ''Ecole des Mines'' in Paris, France, from 1862 to 1 ...

and cartographer A. D. Wilson ahead to investigate, with King joining them soon after. Upon locating the site, they quickly concluded that it had been salted (as a geologist, King was aware that the various stones formed under different conditions and would never be found together in a single deposit), and notified investors.King, Clarence. 1872. Copy of official letter, addressed November 11th, 1872, to the Board of Directors of the San Francisco and New York Mining and Commercial Company ... discovering the new diamond fields to be a fraud." San Francisco and New York Mining and Commercial Company. an Francisco? 1872 12 pages. 24 cm. Further investigation showed Arnold and Slack bought cheap cast-off diamonds, refuse of

gem cutting Lapidary (from the Latin ) is the practice of shaping stone, minerals, or gemstones into decorative items such as cabochons, engraved gems (including cameos), and faceted designs. A person who practices lapidary is known as a lapidarist. A lap ...

, in

London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...

and

Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the Capital of the Netherlands, capital and Municipalities of the Netherlands, most populous city of the Netherlands, with The Hague being the seat of government. It has a population ...

for $35,000 and scattered them to "salt" the ground. Most of the gems were originally from

South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...

. Arnold returned to his home in

Elizabethtown, Kentucky Elizabethtown is a home rule-class city and the county seat of Hardin County, Kentucky, United States. The population was 28,531 at the 2010 census, and was estimated at 30,289 by the U.S. Census Bureau in 2019, making it the 11th-largest city ...

, and became a successful businessman and banker. Diamond-company investors sued him, and he settled the cases for an undisclosed sum. Years later he died of

pneumonia Pneumonia is an inflammatory condition of the lung primarily affecting the small air sacs known as alveoli. Symptoms typically include some combination of productive or dry cough, chest pain, fever, and difficulty breathing. The severity ...

after he was wounded in a shootout with a rival banker. John Slack dropped from public view. He moved to St. Louis, where he owned a

casket A casket jewelry box is a container that is usually smaller than a chest, and in the past were typically decorated. Whereas cremation jewelry is a small container, usually in the shape of a pendant or bracelet, to hold a small amount of ashes. ...

-making company. He later became a casket maker and

undertaker A funeral director, also known as an undertaker (British English) or mortician (American English), is a professional involved in the business of funeral rites. These tasks often entail the embalming and burial or cremation of the dead, as w ...

White Oaks, New Mexico White Oaks is a ghost town in Lincoln County, New Mexico, United States. Located on the outskirts of the Lincoln National Forest, it became a boomtown in 1879 following the discovery of gold and coal in the nearby Jicarilla Mountains. History Th ...

, where he lived quietly and died in 1896 at the age of 76.

Dramatizations

The story of the great hoax was featured in several television programs in the 1950s and 1960s. Marc Hamilton played investor

(a colorful character known for numerous escapades) in the 1955 episode "A Killing in Diamonds" of the syndicated

western Western may refer to: Places *Western, Nebraska, a village in the US *Western, New York, a town in the US *Western Creek, Tasmania, a locality in Australia *Western Junction, Tasmania, a locality in Australia *Western world, countries that id ...

television series A television show – or simply TV show – is any content produced for viewing on a television set which can be broadcast via over-the-air, satellite television, satellite, or cable television, cable, excluding breaking news, television adverti ...

Death Valley Days ''Death Valley Days'' is an American old-time radio and television anthology series featuring true accounts of the American Old West, particularly the Death Valley country of southeastern California. Created in 1930 by Ruth Woodman, the program ...

''.

Vaughn Taylor Vaughn Joseph Taylor (born March 9, 1976) is an American professional golfer who has played on the PGA Tour and Web.com Tour. Born in Roanoke, Virginia, Taylor was raised in Augusta, Georgia, from infancy. After attending Hephzibah High School ...

played Harpending in a 1965 episode of the same series, "Raid on the San Francisco Mint," which was hosted by

Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...

, who was cast in the starring role of banker

. ''Death Valley Days'' aired a third story devoted to the hoax, the 1968 episode "The Great Diamond Mines", with

played by

Gavin MacLeod Gavin MacLeod () (born Allan George See; February 28, 1931 – May 29, 2021) was an American actor best known for his roles as news writer Murray Slaughter on ''The Mary Tyler Moore Show'' and ship's captain Merrill Stubing on ABC's '' The Love ...

, John Slack by

John Fiedler John is a common English name and surname: * John (given name) * John (surname) John may also refer to: New Testament Works * Gospel of John, a title often shortened to John * First Epistle of John, often shortened to 1 John * Second E ...

and Ralston by

Tod Andrews Tod Andrews (born Theodore Edwin Anderson; November 9, 1914 – November 7, 1972) was an American stage, screen, and television actor. Early years Tod Andrews was born as Theodore Edwin Anderson in El Paso, Texas, to Henry Anderson and Lydia ...

. A first-season episode of ''

Maverick Maverick, Maveric or Maverik may refer to: History * Maverick (animal), an unbranded range animal, derived from U.S. cattleman Samuel Maverick Aviation * AEA Maverick, an Australian single-seat sportsplane design * General Aviation Design Burea ...

'' (January 1958), "Diamond in the Rough", was based on the hoax. The incident was also dramatized as "The Great Diamond Mountain" on the television series '' The Great Adventure'' in 1963. Arnold was played by

, Slack by

John McGiver John Irwin McGiver (November 5, 1913 – September 9, 1975) was an American character actor who made more than a hundred appearances in television and motion pictures over a two-decade span from 1955 to 1975. The owl-faced, portly character ac ...

, Ralston by

Barry Sullivan Barry Sullivan may refer to: *Barry Sullivan (American actor) (1912–1994), US film and Broadway actor *Barry Sullivan (stage actor) (1821–1891), Irish born stage actor active in Britain and Australia *Barry Sullivan (lawyer), Chicago lawyer and ...

, and con-breaking geologist

by J. D. Cannon. A mystery, ''The Dangerous Angel Affair'' by

Clarence Budington Kelland Clarence Budington "Bud" Kelland (July 11, 1881 – February 18, 1964) was an American writer. Prolific and versatile, he was a prominent literary figure in his heyday, and he described himself as "the best second-rate writer in America". Kelland ...

, revolves around the hoax.

Footnotes

References

* Robert Greene and Joost Elffers, ''The 48 Laws of Power'' (references this scam in Law 21 Play a Sucker to catch a Sucker - Seem Dumber than your Mark) * King, Clarence. 1872. Copy of official letter, addressed November 11, 1872, to the Board of Directors of the San Francisco and New York Mining and Commercial Company ... discovering the new diamond fields to be a fraud." San Francisco and New York Mining and Commercial Company. an Francisco? 1872 12 pages. 24 cm. USGS Library. * Dan Plazak, ''A Hole in the Ground with a Liar at the Top'' (contains a chapter on the great diamond hoax) * * {{cite book , last=Voynick, first=Stephen M., title=Yogo The Great American Sapphire, publisher=Mountain Press Publishing, pages=5–6, year=1985, edition=March 1995 printing, 1987, place=Missoula, MT, isbn=0-87842-217-X

External links

Photographs relating to the great diamond hoax
1872 in the United States Fraud in the United States Crimes in California Diamond

History

Dramatizations

Footnotes

See also

References

External links