I followed Lent to Kentucky, whither also went Captain I. W. Lees. Familiar with the field, after some investigation of the state of public opinion in Hardin county, I am satisfied that had Arnold stood his ground unflinchingly not a dollar could have been wrung from him by legal proceedings, no matter what the proof. And, moreover, at that time the matter of exact proof was not as easy as later on.
Negotiations leading to a compromise took place in which I played a part. These resulted in a compromise by which Arnold surrendered $150,000 on consideration of immunity from further litigation. The money was turned over to Mr. Lent personally. What disposition was made of it I am not informed, but understood that it was retained by the recipient to make good his personal loss.
So Arnold, left, according to his own statements, with an uncontested fortune of nearly half a million dollars, everywhere enjoyed the esteem and high respect which broadcloth and a large cash balance invariably inspire. But he did not live long to enjoy prosperity. Arnold, among other ambitions, wanted to shine in finance, and for this purpose opened a bank in Elizabethtown, and for a time did a rushing trade, to the great irritation of his business rivals. The quarrel became very bitter, and as differences of opinion were only arbitrated in one way in Hardin county at the period mentioned, the first time Arnold met one of his competitors the two opened fire at each other on the street, after the manner of the best traditions. Arnold never lacked courage, and had all the best of the arbitration, having winged his man once, when his antagonist’s partner appeared in a doorway and landed the greater portion of a charge of buckshot in the diamond discoverer’s shoulder. His wounds were considered fatal, but his iron constitution carried him far toward recovery, and he was considering with pleasant anticipation a second meeting with the bankers, with sixshooters instead of a clearing-house to balance the account, when he was seized with pneumonia. Under this last affliction the tough old campaigner, after a hard struggle, weakened and died. This happened, I think, near the close of 1873, so that Arnold’s prosperity was short-lived.
What became of Slack? That was a question often asked, but never answered in a satisfactory way. As I said, the last time I ever saw him was when I left the diamond fields with the Janin party. He and Rubery remained behind. When these two separated Rubery came to San Francisco, while Slack took an eastbound train. Many attempts were made to locate him at a later day. He was heard from at various points—St. Louis, New Orleans, Memphis and Mobile. Always it turned out to be another Slack. Finally the impression became general that he must have gone abroad and hid his identity in another land.
But the strange part of it was that Arnold had all the money, or nearly all of it, as appears by his signed statements and later by the inventory of his estate, which corresponded. Granting every possible contingency, the share of Slack was either practically nothing or very small, not to exceed $30,000 at the utmost. As they always figured as partners, and as Slack, though not the spokesman, appeared a man of force, I have always considered that a deep mystery hung over his fate. It seems not unlikely that he died somewhere in the Western country, probably among strangers, and never participated in the profits of the diamond fraud at all.
CHAPTER XXXIV.
Diamond Fraud Loss Falls on Shoulders of Original Dupes; Ralston Reimburses All Stockholders.
Gossips Make Unjust Charge Against Men Who Acted in Good Faith and Were Deceived by Swindlers.
The losses growing out of the diamond fraud fell on the shoulders of the original dupes—W. C. Ralston, William M. Lent, George Dodge and myself. My impression is that the money obtained by Mr. Lent from Arnold very nearly, if not quite, balanced his account. Perhaps he may have given a portion of this to General Dodge, his business associate. Mr. Ralston promptly paid the twenty-five stockholders who subscribed $2,000,000 for a half interest in the company, dollar for dollar. Not a man of them lost a cent. This involved a sacrifice of the last $300,000 paid to Arnold and Slack. Mr. Ralston had the receipts in full of the various parties neatly framed and I am told that it was one of the mural decorations of his private office in the Bank of California. The remaining balance of loss was borne by Mr. Roberts and myself.