(Exodus 25:7) "Onyx stones and stones for the settings." The school of Sheila taught: what is the reasoning of Rabbi Eliezer, who said that a red heifer is not bought from gentiles? Because it is written (Numbers 19:2), "Speak to the children of Israel" - the children of Israel, and not the gentiles, and so on. And should you say that this is indeed so, did not Rav Judah say in the name of Samuel: they asked Rabbi Eliezer the Great, how far does the honoring of father and mother extend? He said to them: go and see what a certain gentile did for his father in Ashkelon, and Dama ben Netina was his name. Once the sages sought from him stones for the ephod at a profit of six hundred thousand - and Rav Kahana taught it as eighty myriads of profit - and the key was lying beneath his father's pillow, and he would not disturb him. "Onyx stones" interrupted the matter [stands apart in the verse]. But surely "and stones for the settings" is written, for it then joins them back together. And further, the latter clause teaches: the next year a red heifer was born in his herd, and so on. Rabbi Eliezer holds two positions.
Dama Ben Netina and the Gems for the Ephod
Yalkut Shimoni on Torah 364:4
(שמות כה ז) אַבְנֵי שֹׁהַם וְאַבְנֵי מִלֻּאִים, תָּנָא דְּבֵי שֵׁילָא, מַאי טַעְמָא דְּרַבִּי אֱלִיעֶזֶר דַּאֲמַר פָּרָה אֲדֻמָּה אֵינָהּ (נקחית) [נִיקַחַת] מִן הַגּוֹיִם, דִּכְתִיב (במדבר יט, ב) "דַּבֵּר אֶל בְּנֵי יִשְׂרָאֵל", בְּנֵי יִשְׂרָאֵל וְאֵין הַגּוֹיִם וְכוּ'. וְכִי תֵימָא הָכִי נַמִי וְהָאֲמַר רַב יְהוּדָה אֲמַר שְׁמוּאֵל, שָׁאֲלוּ אֶת רַבִּי אֱלִיעֶזֶר הַגָּדוֹל, עַד הֵיכָן כִּבּוּד אָב וָאֵם. אָמַר לָהֶם, תְּאוּן וּרְאוּ מֶה עָשָׂה גּוֹי אֶחָד לְאָבִיו בְּאַשְׁקְלוֹן וְדָמָא בֶּן נְתִינָה שְׁמוֹ, פַּעַם אַחַת בִּקְּשׁוּ מִמֶּנּוּ חֲכָמִים אֲבָנִים לָאֵפוֹד בְּשִׁשִּׁים רִבּוֹא שָׂכָר, וְרַב כָּהֲנָא מַתְנִי בִּשְׁמוֹנִים רִבּוֹא שָׂכָר, וְהָיָה מַפְתֵּחַ מֻנָּח תַּחַת מֵרַאֲשׁוֹתָיו שֶׁל אָבִיו וְלֹא צִעֲרוֹ. אַבְנֵי שֹׁהַם, הִפְסִיק הָעִנְיָן. וְהָא וְאַבְנֵי מִלֻּאִים כְּתִיב, דַּהֲדַר עָרְבֵיהּ. וְעוֹד קְתָנִי סֵיפָא לְשָׁנָה אַחֶרֶת נוֹלְדָה לוֹ פָּרָה אֲדֻמָּה בְּעֶדְרוֹ וְכוּ'. רַבִּי אֱלִיעֶזֶר תַּרְתֵּי אִית לֵיהּ.