The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-07-01
TIE PRICE oF DIAMONDS.
1t Is No Longer Maintained by the Ma
tural Scarcity the Gems, but Artifi-
Cially

1t Is No Longer Main taineu by tne Ma
tural Scarcity ofthe Gems, but Artifi-
cially
NEW YORK, June 29--"When
was in London short time
ago" said Mr.. D. De S. Mendes, the dia-
mond cutter, of Maiden Lane, 81 was
a lowed as n special favor to see the great
diamond that was found last year in South
Africa. | think they are going to call it
the Jubilee diamond, but believe 1t is not
yet named. 1t is the whltest stone i'll tho
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 diamond dealers could
afford.
when found it was Of an irregular
shape, being somewhat like an egg with the
small end some what elongated. The own
ers in order to reduce it TO a regular shape,
split off this end, and after cutting tho
fragment, found they had a forty carat
brilliant which they sold to the King of
Portugal for 440,000 the value of the re-
mainder was not impaired by the su btrac-
tion of this tritle, but rather enhanced, since
the split was successful, and the shape of
the stone is improved. 1t Is valued by the
owners at a million and half sterling, and
any gentleman who wishes TO invest i'll a
rather costly tr1e cannot do better than to
examine it.
1.-THE owners intend keeping it until the
Prince of Wales shall succeed to the throne
of England, and then trying to sell it to
him Failing this sale, it is hard to tell
what they can do with it"
"Who are the owners now" was asked of
Mr. Mendes.
81 do not think d better mention names"
he replied with that caution which dealer
in diamonds Inust needs have. There is
considerable mystery maintained about it,
and it would not perhaps he 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 it, and |
know it is owned in eight shares, for the
gentleman who showed it to me owns one
eighth.
ut is difficult for people outside the bust
ness to realize the enormous wealth of the
diamond dealers i'll London" he continued.
LAS an indication, may say that the same
gentleman showed me one package of stones
aggregating 5000 carats, which he valued
at guineas carat. This was by no
means his stock in trade. 1t was one of a
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 com
pany. Between the two they own or con
troll every important claim in the world in
which diamonds are found. These are in
Africa, for as is we'll known, the supply
from tho old mines has entirely ceased
Tho two companies control hundreds Of
millions of capital, and were formed by "A
consolidation of all the small companies
owning cllims, for the purpose Of control
ing the output and SO keeping up the value
of diamonds
as the value then fluctuatingp
at has lluctuated considerably within a
few years. The scare or furry in the trade
that wa, talked about after the African
mines were discovered, and which was
pooh-poohcd by the bulls, was very active
reality and was nearly approaching panic
when the consolidation was effected
The large dealers saw plainly that unless
something was done to limit the
supply the market would DO broken,
and they banded together and bought a
control of all the diamond mines. Since
that time no new diamondssuave been put
have allowed, and tho 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
but upon an artificial restriction of it. ="
Precisely 500
And it is within the power of these two
companies ~ break the market whenever
they choose"
Undoubtedly, but they will never do it.
for they would be throwing away millions
of pounds OF their own property.
DAVID A CtTRTIS