Original subtitles

OLD RANGER: And now,Death Valley Days.

♪♪ [ trumpet ]

Hyah! Yah!

Yah! Yah!

Howdy, folks. I'’m the Old Ranger,

and I have another interesting true story for you

about the historic Death Valley country.

The story you'’re about to hear

is one of the most amazing ever to come out of the West.

Amazing largely because of the people involved.

A group of distinguished men whose names read

like a page from Who'’s Who.

We go back to the year 1871.

San Francisco is riding the crest

of the greatest financial wave in its history.

Stocks are booming. Speculation is rampant.

There'’s an excitement in the air.

A feeling that anything could happen,

and it does,

as you'’ll see in the story of...

It starts on an afternoon in September,

when two weather-beaten prospectors

come ambling along Market Street. [ trolley bell clanging ]

Thank you.

There'’s Roberts now.

Now, you let me do the talking.

This strike is just as much mine as it is yours.

I was--I know. I know.

But I worked for him. I know how to handle him.

Come on.

Now, we'’ll only stay in town long enough to--

Why, Phil Arnold.Oh, howdy, Mr. Roberts.

Haven'’t seen you in a dog'’s age.

Well, we'’ve been out prospecting.

Meet my partner John Slack.

This is Mr. George D. Roberts.

Howdy.Glad to know ya.

What'’s new?Well, we--

Is it all right if I tell him?

Oh, I don'’t know.You mean a strike?

Oh, we can trust him. Fact, he might be able to help us.

Mr. Roberts is one of the biggest mining consultants in the West.

Well, all right.

[ chattering ]

Not on the street. Someone might hear.

You got someplace where we can talk in private? Where we can show you something?

My office is right inside.

Good. Good.

Come along.

A sack full of diamonds?

Where on earth did you find them?

That'’s our business, Mr. Roberts.

We stumbled on the field by accident, out there in the wilds.

Are you sure they'’re real?

I took '’em to a jeweler here in Frisco to be examined.

Here. Here'’s the report.

Why, this is absolutely astounding.

These must be worth a fortune.Oh, that'’s only a handful.

A few samples we scraped up.

What do you propose to do?

We'’re not saying.

Mr. Roberts is only expressing an interest, John,

as an old friend.

We'’re not selling out, that'’s for certain.

Gonna work the field ourselves.

That'’ll take capital.

We'’ll raise it, I hope.

I wish you'’d let me show these to William Ralston.

Ralston?

President of the Bank of California.

You think Mr. Ralston would be interested?

He'’d want to know a lot more about the property first, of course.

Oh, have us take him out there, I suppose.

At least being sure that these aren'’t just a flash in the pan.[ chuckles ]

If it'’s diamonds he wants to see, I could bring him a million dollars'’ worth.

Will ya?Hey, now, wait a minute. Not so fast.

Mr. Roberts wasn'’t suggesting anything unreasonable, John.

It'’d take a while, of course, to make the trip.

How long?Oh, couple of months, maybe.

You get started as soon as you can.

Meanwhile, I'’ll have a talk with Ralston.

I don'’t like the idea of this news getting around.

William Ralston is as closemouthed as they come.

Your secret'’ll be safe.

You will need working capital.

Well, all right.

Diamonds! In this country?

That'’s unheard of.

So was gold before '’48.

Or silver till the Comstock strike.

Who are these men anyway?

Phil Arnold I'’ve known for many years.

Hired him to investigate some mining properties for me.

Highly reliable?Absolutely.

And the other man?

John Slack.

I checked on him too. He'’s an old-time California prospector.

A bit surly, but has a good reputation around town.

The diamonds have been certified as genuine?

By San Francisco'’s leading jeweler.

I tell you, Bill,

we'’re onto something tremendous

if this field turns out to be as rich as they claim.

And we can keep the news from leaking out.

They'’ll be out of town for the next two months.

Good. That'’ll give us time to organize.

Mind you, these fellas haven'’t said they'd sell.

Quite the contrary.

If it'’s something we want, we'’ll get it.

It'’ll take a lot of money.

And brains. The best available.

Of course, the whole thing may prove to be a false alarm.

Well, at least we'’ll be prepared.

Ready to step in and take control

of the first great diamond fields to be discovered in America.

I'’ll get in touch with our friend, Asbury Harpending, right away.

But he'’s in London.

Well, I'’ll cable him to come back.

He'’ll come when he hears what'’s afoot.

When I received this cable, I thought my friends in San Francisco had gone mad.

Diamonds in the desert. Diamonds by the sackful.

It sounded like the Arabian Nights.

Then I reminded myself that William Ralston

was one of the soundest, shrewdest financiers on the West Coast,

and George Roberts was a top mining consultant.

They wouldn'’t have spent $1,100 on a cable--

that'’s what it cost them-- if there wasn'’t something behind it.

So I cut my plans short and booked passage on a ship

sailing for home at an early date.

SLACK: You think we got a million dollars'’ worth here?

Well, it'’s hard to judge.

Enough, anyhow, to convince their lordships we'’re telling the truth.

Sure. You know what I'’d do just to be on the safe side?

Pack them in two separate sacks.

Then if anything happened to one, we'’d still have the other.

What are you afraid of? Injuns?

Well, you never can tell.

I'’d hate to turn up emtpy-handed

after Ralston and Roberts have waited so long for us.

I'’ve still got my fingers crossed about that Ralston.

[ chuckles ] We'’re in luck to have such a contact.

Big banker, with all the money in the world behind him.

And the old eagle eye out.Oh, sure, sure.

Oh, come on. Let'’s pack up and get going.

[ no audible dialogue ]

Well, I couldn'’t believe it when I first saw it.

Well, I'’m glad it'’s a West Coast deal.

You'’ll keep it that way. [ knocking on door ]

Oh, Harpending.How are you, Roberts?

Give me your hat. I believe you know these gentlemen.

Yes, indeed. How are you, Mr. Ralston?Fine, thank you.

General Dodge.Fine. How are you?

Where'’s Mr. Lent?He couldn'’t be with us today.

Well, gentlemen, let'’s get down to business.

Pull up a chair.

You couldn'’t have timed your arrival more opportunely, Harpending.

This telegram has just been received from our prospector friends.

It'’s sent from Reno.

Reno?

Well, then, the diamond field isn'’t in Arizona, as we'’d imagined.

Apparently not.

"Arriving on Overland Thursday evening.

Please have responsible person meet train to take over baggage."

"Baggage"? A mere million dollars'’ worth of diamonds?

Signed "Arnold and Slack."

That isn'’t John Slack?

Do you know him?He used to work for me.

Examined that mining property I own down in New Mexico.

A good man.Well, I'’m glad to hear that.

Perhaps, then, you'’d like to meet the train?

Well, what about you other gentlemen?

No. I think only one of us should go.

We don'’t want to run the risk of attracting too much attention.

Very well.

Take the diamonds straight to your home.

We'’ll all meet you there later this evening.Fine.

By the same token, I'’d suggest that we all arrive separately.

There'’s no telling who may have got wind of this.

You'’re right.

I'’ll inform the servants. Y'’all can wait for me in the library.

I just hope that train isn'’t late.

They sure looked all in.

Hadn'’t closed their eyes since they boarded the train.

Seems they already lost half the diamonds.

Lost them? Fording the river on the way back.

Their raft overturned, and one sack went to the bottom.

Nearly a million dollars sunk.

Good grief!No chance of recovering them?

They didn'’t even try. Said there were plenty more diamonds where these came from.

Wait a minute. Are the curtains drawn?

Yes, and the door'’s locked.All right. Go ahead.

Look at the size of some of these!

Bigger than dice!

When they'’re cut, they'’ll knock your eye out.

Talk about a king'’s ransom.

And these are only half of what they gathered.

Two men, alone.

Well, gentlemen, I guess this dispels

any doubts we may have had.

We can go ahead now and form a company.

The first diamond company in America.

Hold on. Not too fast.

If we can'’t raise the necessary capital

here in San Francisco, we'’ll get it in New York.

I have connections there.There'’s no need for that.

This is a West Coast discovery, and we intend to keep it here.

Gentlemen, please.

Before we start discussing plans of organization,

there are several important steps to be taken.

First of all, these stones should be examined.

We already have the word of a reliable jeweler.

I want an appraisement by the greatest authority

on precious stones in the United States-- Tiffany & Company.

You'’re taking no chances, are you?

You bet I'’m not.

We'’re dealing, my friends, with something that could make the Gold Rush look pale.

And if Tiffany'’s report is favorable?

We'’ll send a mining engineer-- the most expert in the country--

out to examine the fields.That'’s a good idea.

I think you'’re right.You'’re forgetting one thing.

What'’s that?Arnold and Slack.

Yes, I'’d forgotten about them.This is their discovery.

They'’re the only people in the world who know where the diamond fields are located,

and they haven'’t yet indicated they'’d be willing to sell.

Even a part interest.

They'’ll sell.

Why else would they have gone all the way out there-- wherever they went--

to bring us back a million dollars'’ worth of diamonds, more or less?

We'’ll have a meeting with them the first thing in the morning.

Pardon me, Bill, but I think you'’d better stay out of this.

Arnold and Slack are kind of suspicious of you."Suspicious"?

Well, they'’re afraid that you'’ll try to cut them out.

You leave the negotiating to Harpending and me. We know them.

They trust us.That'’s a fact, Bill.

Well, all right.

Just so long as you make a deal with them.

We will. To our advantage.

We'’ll tie 'em up. Properly. Uh-huh.

Meanwhile, I'’ll deposit these for safekeeping.

Uh, you think our friends will trust my bank?

[ laughter ]

You admit you have to have working capital.

Our group'’s willing to provide it.And grab control.

You and Slack will still retain an interest. A good big one.

I'’d rather not sell.Well, how are you gonna proceed?

Someone'’ll lend us the money on the diamonds we already have.

Look, Arnold, you need more than money. You need protection.

The minute the news of this strike leaks out,

there'’s gonna be a rush like nothing you ever saw before in your life.

You'’ll have claim jumpers, legal battles, problems with the government.

Do you realize that there isn'’t even a law existing

under which diamond fields can be located and held?

Try to do this on your own, and you'’ll end up with nothing.

The sharpers will move in.

I might part with a small interest.

A quarter?

Mm, I reckon.

You'’re a fool, John!

We'’ll pay you $100,000 for it.

Cash on the barrelhead?Cash.

That'’d still leave me three quarters.

It'’s a deal.Good.

How about you?

Well, I'’ll think it over. Let you know later.

I'’m heading for the East tomorrow.

Why, you only just got here.

I'’m taking the last lot of diamonds

back to Tiffany & Company in New York

for examination.Tiffany?

Experts in precious stones.

That'’s smart.

You'’ll still be around, Mr. Roberts,

in case I change my mind about selling?

I'’ll be here waiting for ya.

We'’ll fix up the papers and give you a check for your part of the deal.

Thanks.

[ door closes ]

Well, we made a little headway.

Arnold will come through.

He'’s just overpowered by the magnitude of the whole thing.

Can'’t say that I blame him.

Just how big is it, Roberts?

Hmm? Can we swing it here in California?

Well, Ralston seems to think so. And his associate, Lent.

Well, I don'’t.

I think we'’re gonna have to interest New York capital.

That'’s one of the things I plan to do while I'’m east.

You'’ve heard of Samuel Barlow?

The attorney? Why, yes.

Well, he'’s a friend of mine, and well connected in Wall Street.

If we decide to incorporate back there,

he could arrange to float the stock.

For ten million, easily.

Ralston will want to go with it.

All right. We'’ll leave tonight.

Put the store before Barlow by the end of the week.

The proposition that Harpending and Ralston presented to me

sounded like the biggest strike in history.

But I wasn'’t gonna let myself get too excited about it at first.

Not Samuel Barlow.

I examined all angles, sifted the facts.

I had him send for Arnold to come East.

Invited him out to my home in Glen Cove, Long Island,

to become thoroughly acquainted with him.

I found Arnold to be a simple, sincere,

straightforward fellow, and an experienced miner.

There wasn'’t a flaw in his story.

But the thing that really clinched the case, as far as I was concerned,

was the appraisal from Charles Tiffany himself.

Our lapidary has examined these stones

and finds them to be genuine diamonds.

All that remains now is to find out how extensive the fields are.

How about it, Arnold?

You and Slack willing to guide an expedition there?

Mm, we'’re placing ourselves at your mercy.

You don'’t think we'’d jump your claims?

Well, I oughta have some sort of guarantee.

In the form of... money.

Well, how much?Mm...

$100,000?100,000?

Oh, you don'’t have to pay it over now.

You can hold it for me till you get a report on the fields.

Well, that'’s fair enough.

Thank you.

We'’ll want the best mining opinion in the country.

And there'’s just one man to send: Henry Janin.

He'’s expensive.But he'’s infallible.

Janin has experted some 600 mining properties, to my knowledge,

and never once made a mistake.

If he has any fault, it'’s that he's ultraconservative.

BARLOW: That'’s the kind of man you need.

We can'’t afford to take chances with so many millions at stake.

I'’ll get in touch with Henry Janin tonight.

I, Henry Janin, did agree to undertake the job

for $2,500 cash, all expenses,

and the privilege of buying 1,000 shares in the new company.

In the party that set forth were General Dodge,

Mr. Harpending, myself,

and, of course, Arnold and Slack.

We left the railroad at a little station

near Rawlins Springs, Wyoming,

where we hired an outfit and struck out into the wilderness.

I'’ve traveled over some pretty rough country,

but this was about the roughest.

After four days, we finally reached the diamond fields

and started in prospecting.

We were rewarded at once.

There were diamonds all through the area.

In the crevices of rocks.

In little anthill formations.

How deep they went, nobody could guess.

We made only a surface examination.

But enough to satisfy me that here indeed

were diamonds in plenty.

Then I got busy and surveyed

all the neighboring ground that resembled it.

We staked out everything in sight,

set up notices of occupation,

secured title to water rights and timberland.

Leaving Slack to guard the property,

the rest of us returned to New York

where I filed my official report.

I don'’t know when I've ever been more excited about a project.

As I told Mr. Ralston,

"Give me 20 men-- rough laborers--

"and I'’ll have a million dollars'’ worth of diamonds out for you

the end of the month."

This diamond field would control the world market,

I felt sure.

Now that you got Janin'’s report,

how about that down payment I was promised?

$100,000.

Make it 150,000.

Getting bigger ideas, huh?

You'’re right.

I'’ll speak to my friends about it right away. Thanks.

We paid out his $150,000 on account.

With what we'’d already paid Slack,

that represented an outlay of a quarter of a million dollars--

only a fraction of what we now had to raise for working capital.

There'’ll be no difficulty.

Give me an hour on Wall Street, and we'’ll have the money subscribed.

Mm. That'’s very kind of you, Mr. Barlow,

but I am definitely of the opinion

that the stock should be floated in California.

You know, I'’ve come to the same conclusion.

Well! For once, we agree.

[ laughter ]

You'’re thinking in terms of a $10 million corporation?

San Francisco can swing it.

I have the word of my associates.

You have been in communication with them?

Every day since the expedition returned.

Ralston'’s assurance is good enough for me.

I'’ll go along with the rest of you.

Well, I can see that I'’m outvoted.

I'’m sorry, Mr. Barlow.

Oh, I understand. But it would'’ve been a satisfaction

to finance this great diamond company.

We appreciate all you'’ve done for us, Mr. Barlow.

I wish there was some way we could express our gratitude.

There is. Allow me to subscribe

to a block of stock when it'’s issued.

Well, if we have our way, you'’ll be elected a director of the company.

[ chuckles ]

The news of a great diamond strike

hit San Francisco like a bombshell.

The streets were jammed with excited people talking, shouting...

[ chattering ]

trying to get a peek at the display of diamonds

in the window of a prominent jewelry store.

[ clicking ] Everybody wanted to buy stock,

but the only the cream of the financial and business world

were permitted to subscribe.

Men like David D. Colton,

Thomas H. Selby,

Milton S. Latham,

Louis Sloss, General George B. McClellan,

William Willis, W.F. Babcock.

From London came a cablegram from the House of Rothschild

offering to act as European representative.

Arnold and Slack were bought out

for a total of $660,000.

Slack disappeared.

And I come back to Hardin County, Kentucky,

with enough to buy me a fine house and land

and open up a bank in my hometown,

like I'’d always dreamed of doing.

Oh, not a bank as big as Ralston'’s Bank of California,

but I'’m satisfied.

I don'’t want millions. I'’ve done all right. [ chuckles ]

Yes, sir, I'’ve done all right. [ chuckles ]

This map shows the boundaries and the various locations.

Discovery claim.

Diamond flat.

Sapphire hollow.

Just how soon can we start operations?

Well, with two million dollars on deposit in the bank,

there'’s nothing to hold us back.

Gentlemen.Janin.

Excuse me for breaking in on you like this unannounced.

Not at all. Glad to see you.

This is Mr. Clarence King.Ah, the honored geologist.

At present, employed by the United States Government

as head of its Fortieth Parallel Survey.

How do you do? How do you do? Good to know you.

Mr. King has some information of vital importance to us.

Well, won'’t you sit down?

I'’m the bearer of unfortunate news, gentlemen.

You have all been duped, the victims of a gigantic swindle.

What are you talking about?"Duped"? What do you mean?

Please, please...What in the world do you mean?

Let him tell you the story just as he'’s told it to me.

As Mr. Janin explained,

I'’m in charge of the government'’s survey of the fortieth parallel.

Hearing about this great diamond discovery

and realizing that it lay within the province of our work,

I decided to visit the fields

in order to include an account of them in my official report.

Well, it was everything I had been led to expect.

Diamonds everywhere--

in the surface of rocks, in little anthills.

I'’ll confess that we helped ourselves

to quite a few.

I'’ll confess, too, that if we had left after the first day,

I would'’ve been completely fooled as anybody,

even Mr. Janin here.

But on the second day, one of our parties

saw something sparkle in a crevice

and picked it out.

It was a cut diamond,

clearly bearing the marks of a lapidary'’s tools.

I realized then that these diamond fields

were a gigantic fraud,

salted by somebody with diabolical cleverness.

But Tiffany'’s appraisement.

Oh, the diamonds were genuine,

only nature hadn'’t put them there.

I still can'’t believe it till I see it with my own eyes.

We'’ll go back together, and I'’ll show you.

There'’s no doubt in your mind, Mr. King?

None whatsoever.

You'’ve been taken by two of the slickest operators in the business.

Your friend Arnold.

And your friend Slack.

I'’d have staked my life on their honesty.

As president of the company,

I shall stop the sale of stock immediately.

This is the cruelest blow I'’ve ever been dealt in my life--

to be made the laughingstock of the whole world.

We'’ll never live it down.

But there'’s one thing you can be sure of:

No one will lose a penny,

if I have to pay it back out of my own pocket.

And that'’s a promise.

OLD RANGER: And Ralston kept that promise.

When the last debt was settled, he had the canceled checks

framed and hung on the wall of his office

as a daily reminder of man'’s gullibility and guile.

What about Arnold and Slack?

Slack vanished from the face of the earth.

Arnold was tracked down in Kentucky by Mr. Lent and sued.

He denied everything, of course.

But he paid back $150,000

with the stipulation that no further legal action

be taken against him.

A year later, he was shot to death.

Gradually, the background story was pieced together.

Arnold, using the money which he and Slack had made in a lucky mining deal,

had gone to England and purchased the stones in bulk

from a London merchant.

Low-grade stones which cost him $35,000.

Together, he and Slack had salted the field.

The fact that nobody in the United States was familiar with diamond mines

was a great factor in their favor.

Well-- Well, the rest you'’ve heard.

And that'’s the story of America'’s Great Diamond Hoax.

♪♪ [ trumpet ]