THE GREAT ARMIDALE DIAMOND.

Star (Christchurch), Issue 421, 20 September 1869, Page 3

THE GREAT ARMIDALE DIAMOND.

♦ (From the Sydney Empire.) The supposed diamond was conditionally purchased by Mr Butters and other gentlemen from Melbourne. The precise nature of the bargain entered into with Mr Townsend and his friends was as follows: — 1. The purchasers have formed a company in 100 shares, and have given the A.S N. Co. a cheque for a certain sum in full satisfaction of their demand; and have likewise guaranteed to tbe Treasurer the amount of any claim the Government may have. 2. They are to give Mr Townsend £400 in cash before the bag is opened in which the supposed diamond is contained — agreed to be paid this day, at noon, at the Royal Hotel. 3. If the stone proves to be a veritable diamond, Mr Townsend is to receive a further sum of £4000— together with twenty shares out of the 100 into which the company for its purchase is divided. The original price of the shares was fixed at £5 each — that is, 80 shareß=£4oo to pay Mr Townsend, and 20 paid-up shares for Mr Townsend himself as part of his remuneration for giving up the bag in which' the dia- j mond is contained unopened to the company. So gr'eutj however, was the demand for shares on Saturday, when it became generally known that a company was formed, that they quickly rose to a premium, and the first holders soon sold half their original shares at £10 each, and thus realised tbe £400 to be paid to Mr Townsend before they were called upon to disburse a penny. The excitement did not even Btop here, for the second buyers soon demanded and obtained a premium ; and we are informed, on good authority, that the £5 scrip certificates were selling on Saturday night for £30 each. As soon as arrangements had been made to form a company to bu7 the diamond, telegrams were despatched to Melbourne to that effect;

and also to say that ten original shares had been reserved for Victoria speculators. Almost instantly the following telegram was received in Sydney in reply: — " Melbourne, Saturday, 2.4 p.m. " The ten sold. Can we have more ?" Ten more were promised at a premium of £5 each— that is, a profit of 100 per cent on the first cost — and the next telegram was as follows : — " Melbourne, Saturday, 4.55 p.m. " Secure me three more at the same price. Reply to-night — and— offer £10 more — sure to sell." And then in less than another hour the shares went up to £15 each in Melbourne, as th-3 following telegram will show :— " Melbourne, Saturday, 7.30 p.m. " Can get £10 premium— shall we sell ? disappointed. Do get him one." Seeing the rate at which the price was rising in Melbourne, the holders in Sydney took the hint, and on Saturday night halfshares (representing, of course, only l-200th part of the value of the stone) were actually sold at £15 each ! On Monday, at noon, a private meeting of the ■hareholders in the Diamond Company was holden at the Royal Hotel, in the apartments of J. L. Butters Esq., that gentleman being called upon to preside. For some time previously the vestibule had been crowded with anxious inquirers, and extraordinary excitement prevailed. Never before had the building, during Mr Skarrit's tenancy, accommodated such numbers. The original shareholders and the £10 shareholders were all represented at the meeting. A statement embodying the whole of the correspondence between Mr Butters and Mr Townsend, the finder, was read to the shareholders, and an explanation given of all the circumstances regarding the difficulties witli the Australasian Steam Navigation Company and the Government and the Bank of New South Waleß, and upon motion of Mr Mirefield, seconded by Mr Sampson, a resolution was submitted to the effect that the documents read to the meeting, and the explanations offered, were satisfactory, and the report was unanimously adopted by the meeting. Messrs Butters, Burrows, and Sampson were appointed as a deputation on the part of the shareholders to accompany Mr S. C. Brown, M.L.A., and Mr Townsend, to the bank, to demand the stone, and a vote of thanks was unanimously accorded to Mr Butters for bis conduct of the business. The meeting then adjourned until half -past 1. During the absence of the deputation the excitement amongst the shareholders was immense, and shares that had sold in the morning at £25 were transferred at £35. On the return of Mr Townsend and some of tbe members of the deputation it transpired tbat the b.ink authorities had required an indemnity to assure them against further disputes as to the delivery of the identical package containing the diamond ; but while in the custody of the bank, Mr Butters and Mr Townsend positively declined to allow it to be opened. At the same time Mr Butters expressed his willingness, on behalf of the shareholders to receive delivery from an officer of the bank at the Royal Hotel, and it was decided that Mr S. C. Brown should accompany any officer the bank should wish to perform that duty at 2 o'clock. This intelligence, instead of creating apprehension that another source of litigation with respect to the Armidale diamond had sprung into existence, only tended to increase the excitement, and the shares went up to a higher premium. Some delay again occurred in the delivery of the stone, and it was not until about 3 o'clock that Mr S. C. Brown, accompanied by Messrs Townsend and Butters and several shareholhers, arrived at the Royal Hotel, having succeeded in obtaining the precious prize. The Illustrious Stranger was greeted with loud cheers as soon as it became known that the deputation had succeeded in bringing it with them. The shareholders then adjourned to the dining room, from which the press and all but those who were directly interested in the value of the stone were excluded. Indeed many shareholders who could not produce their scrip were placed in the position of externa. It was understood, however, that considerable opposition was offered by a section of tbe shareholders .to opening the package in which the supposed diamond was contained at that time. After some further discussion, the package was opened, and the supposed diamond was revealed to the presence of the shareholders, who examined it carefully, and at once arrived at the unanimous opinion that it must be a most valuable stone, but it could not be positively identified as a diamond, although Mr Townsend explained at some length the reasons that had induced him to arrive at that conclusion. It was ultimately decided to submit the gem to the examination of the Rev. W. Clarke and some other gentleman ; for, although many of those present were of opinion that it was what it has been represented to be, it was not considered that they were competent judges to decide so important a question. A champagne libation was indulged in, and the band that had boen sent for in the interim, struck up " See the conquering hero comes," the vigorous huzzas resounding from the meeting-room mingled with martial snatches from the ever-popular oratorio. Endeavours were made at a later hour to procure the opinions of scientific men on the subject, and it was bhown to the Rev W. B. Clarke, Mr Thompson, Dr Bennett, and Mr Krefft, but those whose pecuniary interests were concerned were very reticent, and nothing definite was ascertained for the information of the public as to the appearance or value of the stone. On Tuesday it was on view to the public at the Masonic Hall, on payment of half-a-crown a head. In all probability those who invested their money in

its purchase, and were exhibiting it, were Bincere in their belief as to its genuineness ; and, as for the public at large, to use the old showman's phrase, those who wished to see it could " pay their money and take their choice" whether they would call it a diamond or anything else. There can be no doubt whatever that the finder, Mr Townsend, got £400 in cash for the stone, and that he was a very lucky fellow ; for after the above^ was in type, we received a letter from Dr Thomson, stating that that gentleman did not hesitate to pronounce the suppose diamond a quartz pebble. Others who professed to be judges of precious stones called it a topaz, but tho Rev W. B. Clarke pronounced it i s " nothing but a water-worn long exposed pebble of rock crystal or quartz." Mr Townsend " cleared out" of Sydney in the Hunter River steamer, on Wedneaday. A meeting of shareholders was held yesterday at the Royal Hotel, at which seventy-six shares out of 100 into which the speculation was divided were represented. Mr Butters was called to the chair, and reported that the stone, on being tested by Professor Thompson and the Rev. W. B. Clark, was declared to be a quartz crystal, and valueless. The accounts in connection with the release of the stone were presented, and showed charges amounting to a total of £74 143 : £15 15j were solicitor's fees, and £5 was charged by the A.S.N. Company for carriage of the stone ; the balance consisting of sundry charges. It was shown that the stone was purchased by eight gentlemen merely as a speculation, and that they were induced to divide their interests by a number of gentlemen who were desirous of joining the venture ; the first shareholders had therefore sold half their interest, and continued to hold the other half, having no desire to make money, but merely to take their chance of the stone proving a diamond or not. In consequence of its proving valueless, the eight original purchasers thought it fair to pay the whole of the charges and so relieve the £10 shareholders of all responsibilty, so that the total loss is divided amongst fifty gentlemen, and amounted to from £5 to £10 each. The whole matter was looked upon as if it had been a bet of about £2000 to £10 as to the stone being genuine, and those who ventured their money considered the speculation as legitimate as backing a horse for the Derby. The manner in which the business was conducted by Mr Butters was favourably commented on, and resulted in the following resolution :— " That in the opinion of this meeting the whole of the business connected •with the purchase and the sale of the supposed big diamond haß been conducted by Mr Butters in an upright and business-like manner ; and it is resolved that the accounts and report now presented be adopted ; and, while regretting that the stone has proved valueless, the shareholders beg to accord to Mr Butters a cordial vote of thanks." — Carried unanimously. The next resolution was as follows : — " That the stone be taken to Melbourne by Mr Butters, and shown to the Melbourne shareholders ; also exhibited if deemed propeu; and then placed in the hands" of Mr Crisp to be cut and set, and then retained by Mr Butters until subsequently dealt with by the shareholders." Carried unanimously. The thanks of the meeting were also aeeorded to the original shareholders for holding intact their interests, and also bearing all the expenses connected with the stone, amounting to £74 Us. A vote of thanks to the chairman closed the meeting. It will be seen from the above that the purchase of the stone was a mere private speculation, and the affair was not intended to assume the shape of a company until the holders were pressed to part with a portion of their interest ; that they then sold half to cover the original cost, and held tbe balance on the chance of the stone proving a diamond or not. This action on their part appears to have given general satisfaction to those interested, who all admitted that, although the speculation had turned out unprofitably, the whole business had been conducted in such a manner that the slightest suspicion of unfairness could not be entertained.