PUBLIC SOON HEARS OF WONDERFUL FIND AND GOSSIPS CARRY NEWS
UNTIL WHOLE WORLD IS KEENLY INTERESTED.
_Company to Develop Diamond Fields Includes Great Lords of Finance
and One Noted Union General._
We returned direct to New York; that is to say, all of the original
party except Rubery and Slack. Of course, Mr. Ralston was advised
by wire of the substantial results of our examination. Likewise, of
course, we advised our New York friends who had been previously in our
confidence, that our best expectations were exceeded. Where so many are
cognizant of a secret, it very soon becomes public property, and in a
brief space of time all New York and, for the matter of that, all the
civilized world, knew that vast diamond fields had been discovered on
the North American continent, had been inspected by a mining engineer
of great reputation and pronounced genuine. Something like the profound
excitement that stirred the mighty Argonaut movement began to take form
everywhere.
As an evidence of this fact, almost immediately after I had reached New
York, Baron Rothschild of London, who had previously made inquiries
of us, arranged for what amounted to a cable interview. He informed
me that he had just received a cable from Mr. Ralston. (This, I
presume, related to the agency he accepted at a later date.) He stated
further that he had heard of the Tiffany appraisement, also that I
had personally made a visit to the mines with a leading expert. He
wished me to confirm the result of our observations. I answered Baron
Rothschild that half the truth had not been told; that the diamond
fields were rich beyond calculation; that every doubt and shadow of a
doubt had been absolutely removed, so far as I was concerned. The Baron
thanked me, saying he was pleased to hear the good news.
In fact, after the Tiffany valuation, the personal examination of the
mines and the statements of Mr. Janin before he promulgated his famous
report, every suspicion gave way to an unbounded enthusiasm. Mr. Lent
afterward made a written statement, still in existence, that Mr. Janin
assured him he could wash out a million dollars’ worth of diamonds a
month with the assistance of twenty rough laborers. Mr. Janin never
went that far with me; in fact, he afterward questioned the entire
accuracy of Mr. Lent’s figures, and Mr. Lent himself admitted that
he might have made an error. But before leaving the diamond fields
Mr. Janin assured me that the discovery location alone, which we had
partially examined, was certainly worth many million dollars, with
countless possibilities besides.
Who wouldn’t become enthusiastic with such a showing? It fired the
imagination of all financialdom. It upset the caution of the wisest
heads in the old world, as well as in the new. There was a wild
scramble to get on board, almost at any price.
Some statements have been made to the effect that I used my influence
to have the headquarters of the company at New York instead of San
Francisco. There is this much truth to the statement, that it was
debated very seriously. This was a plain matter of business, a question
of dollars and cents--not patriotism. In launching a concern of such
tremendous importance, probably destined to affect profoundly a vast
industry, it is always deemed vital to have the support of the largest
financial center possible. New York was then, as now, the great haunt
of capital in the United States. Many of its leading men were only
too anxious to identify themselves with the new exploitation. I did
not think that the question of headquarters was one deserving mature
consideration, especially inasmuch as San Francisco, controlling the
stock issues, would necessarily be the great beneficiary in the long
run.
But this point was easily settled. Mr. Ralston and myself owned a
majority of the property. This we had held from the outset. I simply
telegraphed to Mr. Ralston, laying the matter before him, without
prejudice. Mr. Ralston’s answer was decisive. He said that San
Francisco stood ready to furnish any amount of capital required. There
was no further argument on that head. To San Francisco the headquarters
went, but this much was conceded to New York--that branch offices were
to be maintained in that city, and that Samuel P. Barlow and General
George B. McClellan were to be resident directors; which arrangement
was later carried out. The New York connection was clearly indicated by
the company’s name.
The scene now shifted to San Francisco, where Mr. Ralston had the
situation well in hand. A company was regularly organized under the
laws of California, entitled the San Francisco and New York Mining and
Commercial Company, with a capital stock of $10,000,000, divided into
100,000 shares. Its powers were of the largest possible description;
not alone to engage in the business of mining and owning mines and
their accessories, but also to engage in every class of commercial
business, including the preparation of precious stones for the general
market. The apparent intention of the organizers was to move the great
lapidary establishments of Amsterdam to the Pacific Coast, and the
truth is that this design caused no small concern in the Low Countries,
where the cutting of gems is an industry hundreds of years old.
San Francisco was certainly ripe for the new company. Hardly a business
man of any considerable wealth would not have considered it a rare
privilege to be admitted to participation in the enterprise on the
ground floor. It was only a case of choosing the highest class of
names in the community, to launch the great undertaking under the most
brilliant auspices. Twenty-five gentlemen, representing the cream of
the financial interests of the city of San Francisco, men of national
reputation for high-class business standing and personal integrity,
were permitted to subscribe for stock to the amount of $80,000 each,
and this initial capital of $2,000,000 was immediately paid to the Bank
of California.
[Illustration: THOS. S. SELBY
Founder of Selby Smelting Works, director Diamond Co.]
At a stockholders’ meeting the following board of directors were
elected to manage the affairs of the corporation: Wm. M. Lent, A.
Gansl, Thomas Selby, Milton S. Latham, Louis Sloss, Maurice Dore,
W. F. Babcock, William C. Ralston, William Willis. George B. McClellan
and Samuel P. Barlow were at the same time elected directors, with
headquarters at the City of New York. Mr. Lent was then chosen
president, W. C. Ralston, treasurer, and William Willis, secretary.
David D. Colton resigned from his position with the railroad to become
general manager.
Only old timers can recognize what these names meant. All the owners of
them are long since dead. Some of them went into a financial eclipse
before they died. But in 1872 they stood as the last word in the
financial and commercial world of the Pacific Coast. I might mention
here for the benefit of the later generation that A. Gansl was the
representative of the House of Rothschild on the Pacific Coast.
Such was the lineup. The biggest men of San Francisco were solidly
behind the enterprise. Two distinguished citizens of New York
represented the company as resident directors there, and in the Old
World the famous house of Rothschild became the company’s agents. The
interest of Slack and Arnold was wiped out finally by a cash payment
of $300,000, which was turned over to Arnold personally, he having a
properly executed power of attorney to act for Slack. Thus, the decks
were cleared.