One Of Wealthiest New York City Real Estate Developers Grew Up On Chattanooga's Westside

One of New York City's wealthiest real estate developers was the youngest of a family of nine children who grew up on Chattanooga's Westside.

Aaron Diamond was born in 1910 when his father, Max, was operating a soft drink business on West Ninth Street and the family was living at 18 College St.

Max Diamond had left his native Poland and arrived in the U.S. in 1888. He became an American citizen in 1892. Max Diamond was working as a peddlar to support his growing family when he arrived in Chattanooga in the late 1890s. He married Rebecca Slabosky, whose family lived near the top of Cameron Hill. 

By 1902, Max was in the confectionary business on West Ninth, which was a vibrant business street at the time. He later ran a saloon and a horse and buggy taxi service. He was in the real estate business by 1915.

The crowded Diamond household included Lena, Louis, Sam, Esther, Abe, Felix, Josephine, Joseph and then Aaron. Joseph and Esther moved away to Canton, Ohio. Lena Diamond moved to New York City to attend Brooklyn College in order to become a dietician. The rest of the family remained here. Joseph moved to Canton to go into the iron and metal business with the Stein family, and he married Ruth Stein.

Sadly, Rebecca Slabosky Diamond died in June 1912, when the youngest, Aaron, was only three years old. The funeral was held at the family home at 18 College St., then the burial was at the Jewish Cemetery in North Chattanooga. The obituary noted she left behind nine children.

As a teen, Aaron Diamond was a salesman for his brother Louis's jewelry store. He later went into the Navy, then completed Harvard Business School. He was a rug buyer in New York City before he began building homes for World War II veterans. He moved on to larger and larger projects, including the well-known housing development on Roosevelt Island next to Manhattan.

He and his wife established two separate foundations - the Aaron Diamond Foundation and the Irene Diamond Foundation. Both were actively involved in the arts and humanities in the New York area and in the battle against AIDS. Before his foundation was closed out, it provided $220 million to 700 New York City projects, including more than $51 million for AIDS research and prevention. Aaron Diamond died in 1984 of a heart attack.

Before their marriage, Aaron's wife, Irene, was a Hollywood talent scout who was credited with giving Burt Lancaster and Robert Redford their first breaks. She was also famous as the story editor at Warner Bros. who found the play that became the film classic "Casablanca." Irene Diamond was among those from Hollywood subpoenaed to testify in front of the House Un-American Activities Committee as to their political beliefs.    

After her husband's death, Irene Diamond continued her personal foundation work. She was called one of the most innovative philanthropists in the country, including setting up the Aaron Diamond AIDS Research Center at New York Hospital. She personally hired Dr. David D. Ho, one of the country's leading AIDS researchers who developed the first "cocktail" to control AIDS.

Felix Diamond was involved in insurance and real estate, while heading Reliance Realty and Felix Diamond Insurance Company. He married Estelle Moore of Carrollton, Ga., and they had three children. Louis Diamond was in the loan and jewelry business and was also involved at Reliance Realty. He married Esther Deich of Savannah, Ga., and their son was Henry Louis Diamond. A lifelong bachelor, Samuel P. Diamond fought under General George Pershing in World War I and was a supporter of veterans organizations, the Boy Scouts of America and other charities.

Josephine Diamond married Manuel Russ, who started Wesco, a paving company that merged into Vulcan Materials. His original company created the quarry near the airport and did the paving work for many of the early roads in Tennessee, including the original one up Monteagle Mountain.He had a trucking company that was originally Asphalt Haulers, then the name was changed to Russ Transport.  The Russ children were Philip and Rita. Philip moved to Nashville and became a successful real estate appraiser. Rita married Sam Speer, an optometrist.    

David Diamond, son of Felix Diamond, was a graduate of Normal Park Elementary, Baylor School, and the University of Virginia. He was a third-generation Chattanoogan involved in real estate, mortgage banking and insurance. David Diamond was the first male president of Girls Inc.,  president of Insurors of Chattanooga, and president and board member of Mizpah Congregation. He also developed commercial properties. David Diamond married Karen Stein, who was from the Canton, Ohio Steins. David and Karen met at the 1963 wedding in Canton of Joe and Ruth's son Robert. They were married a year later. Their daughter, Sara Patterson, lives in Knoxville with her family. Son Sam is the last of the Diamond line still in Chattanooga. He and his daughter, Olivia, are also Baylor graduates.

Henry Louis Diamond, son of Louis and Esther Deich Diamond, became New York State’s first Commissioner of Environmental Living. He was appointed by Governor. Nelson Rockefeller on the inaugural Earth Day in 1970. He also had a 40-year association with conservation-minded Laurance Rockefeller. He received a Lifetime Conservation Achievement Award from the Interior Department. Among his many accolades was a Lifetime Conservation Achievement Award from the U.S. Department of the Interior.

Henry Louis Diamond had received a bachelor’s degree from Vanderbilt University in 1954, and graduated from Georgetown University Law Center after a tour in the Army. He was interviewed by Bobby Kennedy for a post in the John F. Kennedy presidential campaign, but opted for the Rockefellers instead. He married Betty Tatum of Chattanooga and they had one daughter, Laura. His law firm, Beveridge and Diamond, had branches in several states and was at one time the largest environmental law firm in the country.