“OLD MINER” DRAWS ON HIS IMAGINATION AND TELLS WILD TALE OF
SINGLE GEM AS BIG AS A PIGEON’S EGG.
_Winter Causes Lull, But Cold Fails to Chill the Ardor of Men
Counting on Millions in Spring._
On July 30, 1872, the articles of incorporation of the San Francisco
and New York Mining and Commercial Company were formally filed and the
report of Expert Janin was made public. As yet, however, the exact
location of the diamond fields was undisclosed, because the company’s
rights to the great territories claimed were not completed, although a
recent act of Congress changing the mining laws gave ample opportunity.
The wildest tales concerning the new discoveries were at once turned
loose. An article in the New York Sun, signed “Old Miner,” located
the exact position of the fields somewhere in Southeastern Arizona, a
guess that happened to be out of the way by some seven or eight hundred
miles. The “Old Miner” further stated that the company had in its
possession a single gem larger than a pigeon’s egg, of matchless purity
of color, worth at a low estimate $500,000. You may be sure that this
started a good-sized stampede for Arizona.
The directors had several meetings and decided to proceed with extreme
circumspection. For one thing, they sent a large consignment of
diamonds to the House of Rothschild in London for examination and
sale. At the same time a party of fifteen, including miners, surveyors
and others interested, were dispatched to the diamond fields for
the purpose of exploring, surveying and securing our rights. In the
meantime not a share of stock was placed on the market, although the
excitement was intense.
I append an extract from a morning paper of the day following the
incorporation and making public Janin’s radiant report:
(Alta, Aug. 1, 1872.)--“American Diamond Fields. One Thousand Diamonds
Now in This City. Also Four Pounds of Rubies and Large Sapphires.
“We have a wonderful story to tell. We listened to it at first with
incredulity, but after hearing all our informant had to say we found
reasons for believing it. We have seen a report written by Henry Janin,
a mining engineer of an established reputation who had visited the
mines, examined them and reported favorably on them. He has accepted
the position of superintendent and has expressed the opinion that with
twenty-five men he will take out gems worth at least $1,000,000 a
month. In this paper he attached so much importance to the discovery
that he discusses the question whether the price of rubies and diamonds
is likely to depreciate in consequence of increased production and
answers the question in the negative. We have thus commenced with Mr.
Janin because he is well known here and it is mainly on his statements
that confidence rests. His statements evidently command confidence,
for some of the leading capitalists of the State have purchased stock.
“The place of the new mines has not been communicated to us by any of
the interested parties, but street rumor says it is New Mexico. About
three years ago, they say, an Indian near the diamond deposits gave
several diamonds and rubies to a white man who brought them to Messrs.
Roberts and Harpending in San Francisco. These gentlemen satisfied
themselves of the value of the gems and sent men to hunt for more. They
met the Indian after a long search, he took them to the place and was
subsequently drowned. We tell the story as it was told to us.
“Then Mr. Janin went to the spot, washed a ton and a half of gravel,
took out 1000 diamonds, four pounds of rubies and a dozen sapphires,
and selected the best ground for mining. Three thousand acres were
claimed under the mining law passed last session. The country for a
considerable distance around was examined, but no equally promising
deposit was found.
“Most of the diamonds found by Mr. Janin are small, weighing a karat.
One obtained previously weighed over 100 karats, but was dark and of
little value relatively. There are 109 karats in an avoirdupois ounce,
so that a diamond weighing a karat is a small affair, yet if clear and
well shaped may be worth from $25 to $50.... Some of the sapphires are
as large as pigeon eggs.
“The diamond mines are the property of the San Francisco and New
York Mining and Commercial Company, which has been incorporated,
and the directors are M. S. Latham, A. Gansl, W. F. Babcock, Louis
Sloss, William M. Lent, T. H. Selby, Maurice Dore, General George B.
McClellan and Samuel L. Barlow, the last two of New York. The company
is incorporated in this city. It has 100,000 shares of stock and they
have been selling at $40, making the present market value of the whole
property $4,000,000.
“This price indicates great expectations, as Mr. Gansl is the agent
of the Rothschilds and Mr. Latham of prominent British capitalists. A
party of miners will go to the mines with tools and provisions for the
winter’s work and the extraction of gems will begin. The stones are to
be brought to San Francisco and cut here.”
But that was nothing compared with what followed, when the last party
returned from the fields on October 6. Previous to that Deacon Fitch
had cautioned the public more than once to go slow on the diamond
craze. But thereafter even he joined the procession joyously. Witness
this:
(From the Bulletin, Oct. 7, 1872.)
“The Diamond Fields--About the 20th of August a party of fifteen
men left this city to explore the diamond fields about which
there has been such a furore of excitement. Amongst them were the
following well-known gentlemen: G. D. Roberts, General John W.
Bost, M. G. King, M. G. Gillette, Alfred Rubery, John F. Boyd, Dr.
C. Cleveland, E. M. Fry, Chauncey Fairfield and Chas. G. Myers.
“The members of the expedition returned last evening. They
experienced no trouble with the Indians, but had a very tedious
march to the fields and thence home. The heads of the party declare
that their explorations more than confirmed the original report of
Janin of the extent and richness of the deposits and they exhibited
specimens which they say they secured with their own exertions with
but little labor. This party went merely to explore and prospect
the country where the diamonds and rubies were said to abound and
not for the purpose of working. They say that active operations
could not be carried on when they were there, as the altitude is
great and the ground covered with snow. The specimens they brought
back are similar to those previously exhibited in this city and
they number 286 diamonds of various sizes.
“Mr. Roberts says that if they had been deceived they are the worst
deceived and cheated men who ever lived. They surveyed 3000 acres
of land and propose to keep secret the exact locality until the
company receives a Government patent. The implements used by them
seem to have been ordinary jackknives--an improvement on the boot
heels of the original locators. If so much wealth can be turned up
by such primitive means, what might be accomplished with shovels
and pickaxes? The report of the party renewed the excitement and
little else is talked about on California street but diamonds and
rubies. A meeting of the trustees of the company was called for 2
p. m. and further developments will be awaited with interest. A
fact that is so easily demonstrated as the existence of diamonds in
that country should not be longer one of doubt and suspicion.”
Of course, everything was closed down for the winter. But every holder
of the company’s stock figured on being a millionaire at least by the
early spring, from the proceeds of his diamond field adventures.
I should have added that when we returned from the diamond fields Mr.
Janin took a package of the gems we had found to Tiffany for valuation.
We had estimated them to be worth $20,000, but the jeweler scaled this
down to $8000. This didn’t disturb Janin. He considered it a “bear”
movement.