Through the agency of I. W. Lees, this end of the transaction was fully traced and the facts published. Arnold made two trips to Europe to purchase gems. Both times he shrewdly avoided American ports, sailing and returning by way of Halifax. His first visit was made in the fall of 1870. That time he confined his activities to Amsterdam and showed great shrewdness in concealing his tracks and avoiding suspicion. He visited the various gem-cutting establishments, bought many coarse stones, but not enough from any one firm to make the transaction look unusual. No one seemed to know his name, but his photograph was at once identified by many diamond dealers of Amsterdam as the eccentric person who seemed to have an unusual penchant for inferior stones. He was regarded as a newly-rich American with a vulgar taste for ostentation, who wished to overburden his family and dazzle his fellow-countrymen with a wealth of cheap, almost worthless gems. [Illustration: WM. BABCOCK A foremost San Franciscan, director of Diamond Co.] On his second trip in the early winter of 1872, Arnold went direct to London, and there, while the conspiracy was at the most ticklish point, he threw all caution to the winds. One of the largest dealers in the great metropolis gave the story to the press how one afternoon a rather rough-looking American appeared at his place of business and asked to be shown what they had in the way of undergrade or rather refuse diamonds. He was shown a large stock of South African stones of the quality known as “niggerheads,” handsome enough, but of very small commercial value. The American pawed over them apparently without the least regard for size or quality until he had collected a great pile. Then he asked indifferently, “How much for the lot?” The trader hadn’t the least conception that his customer meant business. However, he made a rapid appraisement of the stones and gave the price at £3000, or $15,000. To his amazement, the American produced a huge bank roll, counted off the money, had the diamonds packed in small sacks, which he deposited in the capacious pockets of an overcoat and elsewhere, said good-day and departed. In the photograph of Arnold, the English trader recognized his customer at once. As near as anyone could estimate, about $35,000 was invested in “salting” the claims. To this should be added something for traveling expenses, etc. The men received approximately $660,000. That left a little over $600,000 net profit. CHAPTER XXXIII. PRINCIPAL IN DIAMOND SWINDLE GOES BACK TO HIS OLD HOME IN KENTUCKY TO ENJOY HARD-EARNED RICHES. _Victims Bring Suit for $350,000, But Arnold Is Popular With Neighbors and Forces Compromise._