The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-07-06

The Diamond Market Has To Be Maintained
by Artificial Methods.


obe-Democrat. New York Letter.
when was in London a short time ago.
said Mr. ID. De S. Mendes, the diamond cutter,
OF Maiden Lane, 81 was allowed as special favor
to see the great diamond that was found last
year In south Africa think they are going to
call 1t the jubilee diamond, but | believe IL 10
not Yet named Il is the whtest stone in the
world, and one of the largest, and is owned by
eight persons on shares the value being greater
than any one even of the enormously rich dia-
mond dealers could afford
when found it was of an irregular shape
being somewhat like egg with the sm all end
somewhat elongated. The owners in order to
reduce 1t to regular shape. split of the END.
and after cutting the fragment found they had
forty karat brilliant, which they sold TO the
King of Portugal for 100000 The value of she
remainder was not impaired by the satisfaction
of this trif1e, but rather enhanced since the
split was successful. and the shape of the stone
is improved. 1t Is valued by the owners at
1,50000 pounds. aud any gentleman who wishes
to invest In u rather costly trife can not do
better than to examine it.
"The owners intend keeping il until the Prince
Of Wales shall succeed to the throne of England,
aud then trying to sell it TO hum. Failing this
sale, il is hard to tell what they can do with it I"
"Who are the owners nowl' was asked OF Mr..
Mendea
Il do not think I'd better mention names" he
replied, with that caution which dealer in
diamonds must needs have. There is consid-
cradle mystery maintained about il, and it
would not perhaps be safe to tell all the facts.
even if knew them, about when the stone was
found, who bought it and what they paid.
know that there is such a stone. however. for
have seen il, and / know it ia owned IN eight
shares. for the gentleman who showed il to me
owned one-eigbth.
sit ia difficult for people outside of the bust
ness 20 realize the enormous wealth of the
diamond dealers in London" he continued las
an indication. may say that the same gentle
man showed me one package or stones agerega-
ting 3, 900 karats, which he valued at FIVE guiueas
a karat. This was by no means his stock in
trade It was one Of q number Of packages"
HE is one of the shareholders in the two
great companies which practically control the
diamond market of the world They are the
Central Diamond Mining Company and the
Kimberly Diamond Mining Company. Between
the two they own or control every important
claim in the world in which diamonds are found.
These are Ia Africa, for. as lie well known, the
supply from the old mines has entirely ceased
The two companies control hundreds of millions
OF capital. and were formed by consolidation of
all the small companies owning claims for the
purpose of controlling the output, and so keep
ing mp the value of diamonds"
SIS the value then fuctuatipg2"
'It has fuctuated considerably within few
years. The scare or furry in the trade that
was talked about after the African mines were
discovered. and which was pooh -poohed by the
bulls. was a very active reality. and very
nearly approaching panic when the consoida-
ton was effected. The large dealers saw plain
ly that unless something was done limit the
supply the market would be broken, and they
banded together and bought control
Of all the diamond mines. Since that
time no new diamonds have been put on the
market excepting those which they have al
| lowed, and the price. which had gone down, has
been restored to about what it has been for
| many years"
"Then the price or value OF diamonds no
| longer depends upon their natural supply bat
| upon an artificial restriction Of itl"
Precisely So"
"Aud 1t Is within the power OF these two COM
psuies to break the market whenever they
| choose?"
Undoubtedly; but they will never do IL, for
| they would be throwing away millions Of
| pounds of their own property"