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Herndon Watches Treasures Arrive from Salvaged U.S.S. Central America
Commander Herndon’s Ship Sank in 1857
by Peggy D. Vetter Send Mail to Writer
Observer Staff Writer

When the recovery ship of the Columbus-America Discovery Group came into port at Norfolk on Oct. 5, 1989 and unloaded a ton of gold bars and coins salvaged from the wreck of the S.S. Central America, the atmosphere was euphoric.
The Herndon High School band played rousing music as the R/V Arctic Discoverer came into view and a contingent of Herndon residents, headed by then-Mayor Richard Thoesen, cheered in remembrance of Cmdr. William Lewis Herndon, USN, for whom their town was named.
The crew opened the crates of gold for display on the docks, where it dazzled spectators in the fall sunshine. The crew, headed by Tommy Thompson, the engineer who founded the group, and his many investors, thought themselves the legal owners of the bounty. The findings brought ashore that day represented only about one-third of that aboard the ship.
In 1989, a large number of insurance companies claimed a right to the treasure on the grounds that they had paid on the loss more than 100 years ago, setting off a three-year legal battle. In succeeding rulings, the number dwindled to eight companies and the state of New York, possible legal heir to now-defunct companies.
A 1990 ruling by U.S. District Judge Richard B. Kellam applied the traditional law of finds to award the treasure to the team of engineers and scientists from Columbus, Ohio who spent a decade locating the shipwreck site. The insurers appealed.
The Fourth Circuit Court of Appeals ruled in a 2-1 split decision that the treasure belonged to the group of insurance companies, ruling that the law of finds only applies in cases where abandonment by previous owners a more clearly shown.
Thompson’s group appealed that ruling on the grounds that the insurance companies’ lack of attempt in more than a century to recover the wreck showed sufficient proof of abandonment.
The Columbus America Discovery Group was dealt a severe blow later when the U.S. Supreme Court, by a 5-7 split vote declined to hear their case, which sought to clarify the issue of abandonment.
The case was sent back to the district court which was instructed to apply the law of salvage rather than finds to divide the treasure. The Columbus-Discovery Group will probably receive a share of the find in proportion to their labor, skill and energy expended, as well as their risk and expenses.
The appeals court said: “We are hazarding but little to say that Columbus-America should, and will, receive by far the largest share of the treasure.”
The story of the Central America and the bravery of its captain, is now part of naval lore. After 43 successful round trips between Panama and New York, the side-wheeler Central America, a luxury ship of the era, had delivered nearly one third of the gold shipped from the California gold rush during her time.
On her 44th transit, loaded with more than three tons of gold and 676 passengers returning from the California gold fields, the ship stopped in Havana, Cuba for water, and the next day steamed into the fringes of a hurricane. The storm worsened, and on the third day, Sept. 12, 1857, the ship sunk about 200 miles off the coast of the Carolinas.
All the women and children, and some of the gold miners, pioneer tycoons and crew members, for a total of 153, were rescued by passing ships.
Cmdr. Herndon, in the finest naval tradition, went down with his ship, along with 422 other passengers and crew. The ship sank to a mile and a half under the Atlantic, and the largest treasure trove in American history remained untouched for 130 years.
As a courtesy to the town named for the ship’s captain, the Columbus-America Group presented a lump of coal, one of the first items recovered at the wreck site, to the Herndon Historical Society for permanent display in their Depot Museum.

Copyright © 2000 The Herndon Publishing Company

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