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Show HERALD SUNDAY FEATUREPAGE SUNDAY, OCTOBER 12; 1958 Utah County, Utah SUNDAYHERALD 2 Prospectors Duped Bankerin Utah's Biggest By KATHRYN D. GROESBECK Eastern Utah is rich, notin tangibles like gold and silver, but in tales that take you back into the late 1800’s, some of which tell about a time when ambitious men fought deseris, sioned -a bonanza as fabulous as to show him the gem area bethe Comstock and a San Fran- fore he would give them any cisco booming with - great dia- money. mond trade and himself oe As “honest” prospectors they: leading factor. . willingly agreed, but with the Again the prospectors were summcned to his office. Inwardsnowy peaks, and hard weather ly they gloated. Nothing could te stake 2 claim and hope to have pleased them better. Yet with the- same hesitancy they uncover a treasure. One tale centers around Dia- had exhibited previously and ? mond Mountain out from Vernal their seeming lack of knowledge and tells of one of the sylest concerning worldly affairs, they “galtings” of an area man ever shyly responded to the call. And they further acted out their part schemed up. With the great San Francisco well by their ‘stumbling bewilbanker and empire builder, Wil- derment over Ralston’s offer of liam C. Ralston, it was like find- $100,000 for an interest in their ing diamonds in his own back find, which they were reluctant yard when he was convinced to let him have. They, naturalthat. Utah hill seemed loaded ly, Mr. Ralston said, would have with gems. Not only diamonds, But let us go back to the beginning of this. tale’: of hocus-pocus — of one of | the’ ever that same part re e— Rawlins Springs, Wyo., at which town they set off on horseback for ‘he country of Having encoin- prospectors. What he found was a convincing scene — two seemingly worn out, unshaved miners with mudSeven days they rode round stained clothes, one sound asleep and about over the wilderness and the other wide awake, holdwastes to reach that eastern ing a rifle and protecting a buckthe diamonds. of Utah they’ sought. As | skin ding in London to come manage the diamond business. Messages flew back and forth between the sack at his feet. Harpen- Since the jmportantce of the find seemed apparent, the moneyed men led by Ralston felt two, some cables costing Ralston that such simple ones as Slack and Arnold were not qualified to over $1000. William Ralston’s elaborately decorated Bank of California with a buckskin sack which they » asked to be put in the vault. Only after the great Baron Rothschild of the world famous family of bankers had spoken They made no comment concerning the contents—didn’t say develop after the a rich little area. Hence, persuasion, the financiers were ableto take over about two-thirds of the prospec- they left as inconspicuously as they had entered. They had a scheme which, if TRICKED—William C. Ralston, empire builder, financial genius, and head of Bank of California, who was tricked by prospectors John Slack and Philip Arnold. area was a sure thing. The prospectors, too, seemed more willing to do their part now; and when Ralston asked for more security before he turned over Before the deal was into which ambled the dirty, bewhiskered prospectors consu- New York to. consult with the leading experts in the field of |gems. Men of distinction’ in $100,000 to them for his interest, worldly affairs, the great gem they agreed to return to the expert Mr. Tiffany, Horace opportunity came and a bonanza was his. None knew this any better | every sage in previously from the area the total value set on the gems was $1,500,000. The experts’ opinion finished the trick—that is, almost. Only one other, a Henry Janin, had to be consulted. He wouldn’t comment until he d person- little ill at ease. What might prove could wreck his well formed With his final trick foundries, mills, and factories to turn out machinery needed for the Comstock and operating them with the bank’s. millions. All San Francisco expressed grati- sleeve tude to him for the abounding It was only a dirty old loaded sack left for safe keeping, but an inquisitive employee with prying eyes had. to have a look inside. Behold! There were diaunbelievably fantastic — inconceivable! ._ As might be guessed, the plan of the prospectors was~ working. Before the day was over, WilMam Ralston* knew about the contents of the sack and accord- he went to Janin easily plans. up his Harpending They seemed and who had caughthis interest. Both were, he learned subsequently, in good standing as prospectors. Shortly, he learned, too, that the old sack of gems appraised had a probable value of $125,000. That- was all he needed to know to start action. William Ralston then’ envi- Slightly “Used HAMMOND: SPINET ORGAN A FINE BARGAIN $mall down payment ARRANERmace « X will handle a BROS. this tale of swindling. With the times .booming and} the great Comstock paying of | So ends the tale of the biggest rior gems in Amsterdam at var-| | ‘salting”’ in the history of Utah, ious times. This he was able to} do out of the $50,000 he had made mediately. After all, they millions — thanks to Arnold Slack — so they should not grudge few WHERE EMPIRE BUILDER RULED ROOST—Old building of the Bank of California, in San Francisco, where William C. Ralston had his office. Construction started in 1864 and- was completed in 1867. Structure was razed in 1906 prior to time of earthquake and fire. the prospectors a Once this matter was settled, Arnold and Slack guided the Janin group from New York to see the gem area. What they discovered seemed an endless wealth, again, not only in dia- SAVEGAS RAMBLER TV SERVICE any inake Low .. . low rates daily service on RCA Victor TV WAKEFIELD’S Phone FR3-1263 (Ziel BRAKE AND FRONT END SPECIAL backward ity of the prospectors Philip Arnold and John Slack, the men who had brought in the gems. But more must be told of Only the great charitable .WilWhat did he really think as he realized he had been duped liam Ralston, the. idolized leader of San Francisco and the Bank by two non-talkative, bewhiskered, sly prospectors? | of California, the man who had wanted to make San Francisco Howdid it happen so many | into a great world metropolis, experts were fooled — Mr. held the bag. In the calm, deboRalston, who had always disnair manner of a gambler who played such sound judgment | has lost, he assumed full responbefore, and all the others? | sibility, paid off the losers, to Who can say? | maintain for awhile. longer his | great empire and restore the Subsequent investigation re- sense of security again to those vealed the fact that Philip Ar-| thousands of Californians whose nold—identified by his picture—| leader he remained, had bought~ quantities of infe- in America—a diamond business Tiffany in New York to, ex-| that would startle the world. amine. And then the blow fell. Why didn’t someone realize imAn old German prospector and had a young geologist, Clarence and King, decided they would have be- were more gems out the hills where the others came from. Nothing more would they conabout having the gems appraised for their value, but finally. offered no opposition to Mr. Ralston and granted his request to have it done. Played It Smart 2 As millionaire, banker, and man of action, William Ralston knew he must find out the qual- seemingly out of existence. So this tale might end with two shysters getting rich and making good their escape. wired Ralston, who granted his by its expected success. With apparent reluctance they talked. Yes, they id, there fide. Rothschild on a gold mining claim. A few| ground floor were holding peel of those he bought might have | They were in on what been expensive, uncut ones, thought to be the biggest thing | such as were taken by him for hundred thousand dollars. That the ther into the venture and the rest of the $600,000 put in the bank for. him, pending Janin’s report. Harpending obliged him and wildered prospectors brought to the bank for questioning. They Were clever: schemers and knew it now. All they had to do was maintain their silence longer. under For the end of the tale, John Slack with his share, $300,000, |-was never heard of again. Philip over night, it is tragic to think of what catastrophes might have request and sent the money little a few— for his great find was. just a piece of paper given him by the financiers, while they held all ingly had the two seemingly be- a there resulted had any number of | the gems. He said he thought shares of this ‘salted’? mine| he ought to have at least $200,000 | been placed on the market. But in cash before he went any fur- none were. Those in on the monds — millions, it seemed just mercial Co.” office established| a “salted’’ field. with the statement that he had in fabulous figures and people! failthfully kept all his agree- buying anything that they) ments, but all he had to show thought might tfiple its value prosperity. their trick was an underhanded one concerned them not at all. Most probably it was difficult for them to refrain from exhititing their evil pleasure caused brush held monds besides—pure evidence of Immediately they sent word to Arnold with an equal amount of agency. Ralston, who ordered a full in- wealth reasoned he was safe— And then, as unobtrusively as vestigation. It came back with | for a time, anyway--in far away. they had ‘ambled before into| the report: “Salted!” | Kentucky, where he set himself William Ralston’s Bank of Cali-| And then William Ralston, who up in fine style to become a fornia with a buckskin sack, so always before -had been the benevolent hero to his neighally visited the diamond area the prospectors Slack and Arnold great financial genius, took full bors, who with shotguns in hand and been paid a fancy price. for ambled in again—by now almost blame. From his own purse he let-it be known that Californians his opinion. He also asked for| wholly out of the picture-— and paid off everyone who had put | in that area might find it unan interest in the area at a [ae with what had been put in healthy. money into the venture. Prove promising. That was agreed, It was, then that Arnold became for the first time a nia, who even then was pouring into San Francisco profits from for and New York Mining and Com-| small fee if the field were to escrow due them of the original | sale price — $600,000 — to pass than the simple-looking prospec-| : tors—or even the great William Ralston of the Bank of Califor- treasure on their mission of swindling. They left a sack of gems for safe-keeping, the bait that trapped California financiers in scheme that involved “salting” of Diamond Mountain in eastern Utah. mated, all the parties went to With those and others brought newly organized “Sar Francisco but some of them were cut dia- anywhere by anyone then. Man had only to be alert when the —a PROSPECTORS SET THEIR TRAP HERE—Thisis an artist’s conception of the ornate interior of the old Bank of California in,San Francisco, the business 6ffice to Harpending of the find and monds, but. rubies, emeralds, a look at the diamond country, | that diamonds and rubies are mentioned that “‘America has tors’ interest afd give a note for Greeley, others no less notable, as well as the humble prospec- and sapphires as well. where they both felt positive ‘néver found together? It was produced some wonderful sur- $600,000 in payment. tors Slack and Arnold, all stood With Janin’s report the boom there could be no diamonds. just good luck for Arnold and ‘Ignorance’ Pays Off prises,” did Harpending decide wide-eyed as Mr. Tiffany hanwas on. Over $2,000,000 poured Slack that .no one did, the kindDiamonds Tell Tale For their part Slack and Arto come. dled the gems spread before in from Ralston’s friends alone of good luck ‘they met from the nold still played the role of simWhat they came up with sur‘More Security’ him. for a share in the diamond venvery beginning of their swindle. Once in America with Ralston pletons. It was paying off better prised even themselves. Finding| His appraisement sent in later ture. Even London reacted fa-|| he seemed certain the diamond than they had hoped for. diamonds was easy for, them— Slack Disappears valued the gems at $150,000. vorably with a branch of the much of anything — just enough to make sure their sack was put fin a safe place for them. Then was pouring into San Francisco with spirits riding high. Rich deposits might be discovered for “to protect our. own interests,’ tered. difficulty they needed said Arnold and Slack. Mr, Ral- help. ston was jubilant and agreed to Just such an opportunity the plans. suited Harpending and he set out] immediately for The small party brought Lathrope |as designated as together by the banker was the meeting place by the soon rolling the rails for whiskered prospectors showing evidence of a long stay in ‘the hills unobtrusively ambled into | times, for the newly discovered wealth from the great Comstock lode in Viriginia City, Nevada, what they had. gone William Ralston sent word to astonishing display ever to rock his: old friend Asbury Harpen- the financial world. touched off. ° On day in 1871 two typical, Comstock Lode The times then were booming on. been a message came with their eye screens removed | dollars in. gems. As the two parted from Harthey began their search. What yells of delight must have rent pending upon reaching Oakland, . the air as the men filled their he felt he had. evidence of their hands and pockets with gems! honesty and good intentions by They were everywhere. Such a the security they had, given—the vast diamond area they little sack of gems—which he carried | with exhilaration to his home. dreamed existed. Once back in San Francisco What he had was the most_ as to seem incredible. it were to pay off, had: to make their silence prove golden. and Arnold had some ‘ime, agreed, the group was willingly ding believed their story of los‘blindfolded upon the near ap- ing .one sack in a_ swollen stream, but still having the secProach to the gems. * On Diamond -Mountain at last ond one filled with 3 million —a field of_gems so pretentious deceptions seemed agreeable to all. After the prospectors Slack provision that those taken to the part as well, peeping out from the ground, gouged in crevaces, lying in ant hills—they seemed to be everywhere, some even caught near the brush roots. Here was undreamed of wealth cunningest . the ‘security in more gems. That diamond country be blindfolded from them! asking someone to part of the way there as well as come aid them to bring back were there in countless numbers| among the sage and rocks, put| emeralds, rubies, and sapphires| diamond country and bring back AFTON M. PAYNE 757 E. - 150 N. PROVO, UTAH SAVE almost Yo 95 A 19.00 Valve Compare! HERE’S WHAT WE DOI! 1. Adjust brakes 2. Add necessary brake fluid 3. Re-pack front wheel bearings 4. Balance both front wheels _5. Re-align front end 6 Months to Pay on. Aa Service Work! FRE ' BUMPER-TO-BUMPER ‘SAFETY INSPECTION— NOTHING TO BUY— JUST DRIVE IN! |