The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-09-21
pRLv1Na FOB DIAMONDS.
Present Condition of Kimberley's
Great Industry.


mines was held here last week. This COM
pany was formed about fifteen months ago
to consolidate the whole Of the diamond
mining industry OF South Africa, and it
has so far succeeded that it has now the
ownership first of the De Beers mine, which
has ar area of about fifteen acres, with
about 600 claims. Out of this mine there
have been already excava ed $3.50, 900
cubic yards of diamondiferous ground,
prO 1ucing diamonds to the value Of about
R9. 600, 600, or about one and ons-half tons
weight of precious stones, between 1871 and
1885. Since then its annual production has
averaged about $500, 900.
This mine was originally worked by indi-
vidual diggers. Then, as the depth in
creased and the cost of working became too
great for individuals, claims we're amalga-
mated and taken up by companies, till at
length the whole mine came into the hands
of the De Beers company, which has
nominal capital Of about $4,000, 000 Early
last year the &10 shares OF the company
stood a. $40, making the capital then more
than IS, 900. 900. At that time it was taken
over by the new company, the De
Beers consolidated mines. The next
stem of the consolidated was to take
over the Kimberly mine. This mine, al
though smaller than the De Beers, possess
ing ouly about $50 workable claims, was
and is much richer in its production, AMI
bv the end of 1885 had scooped out 1900, 900
cubic yards of stuff, half of which was
diamondifernus. The yield of diamonds up
to 1885 exceeded 17,5O0,0J0 carats, valued
at $50, OOO, 00J, or a out 80 tons Of precious
stones The capital of the Kimberley mine
when anlalgamated stood nominally at
about $4,000, 000 and as the 410 shares
were then selling at ESQ the capital was
nearly e9,000,000.
Having these two mines, the consolidated
company Individually the control of the dia-
mond production, but there were two other
factors with which it was important to deal.
These were the Dutoitspan and the Button
tein diamond mines. T csc represented
capital of another 25, 600, 600, with an aver
age annual pr duction Of nearly 1900, 900
In value. The companies holding these
mines have never been able to work them
prOftably. and it mig It have seemed uu-
necessary TO take them into consideration
at all in dealing with the question of nal
who have made it their business to
carry out their scheme knew that
they might fall into the ha ads of an opposi-
ton which would be able to supply the
market with precious stones sufficient to
prevent them having full control of it. This
was the great object, to check production
50 that the price of diamonds might be
regularly maintained at profitable rate.
To do this they made diamond pool, into
which the chief companies of other mines
were induced to enter, as De Beers had
quietly purchased shares sufficient TO give
them controlling power.
TIE effect OF the pool was to raise the
price of diamonds from II to 80 slillings
per carat, at which they now stand. The
De Beers company has, therefore, succeeded
in buying up some Of the companies in the
L IA
entered into perpetual lease with some of
the others guaranteeing them interest on
their capital varying from 4 to z per cent,
a better arrangement than the shareholders
could have ever hoped to get were they TO
stand Ut for an independent existence Of
their companies.
This, thea, is the present state of affairs
All the productive diamond mines in
Grigualand West are under the complete
control Of one consolidated company. This
company has nominal capital of 43, 900,-
600 in 85 shares, which are to-day standing
at nearly ZIG. During the year it
has paid off a MOUNTS III the shape of
transfer and other expenses which will
only occur once amounting to nearly
9250,000, leaving a profit of 940O,-
600, out of which a dividend of 10 le"
cent. has been declared for the last half
year. But this first year has been trying
one for the company. 1t is only within the
last few months that diamonds have reached
their present price. The expenses will n t
occur again which have been such drain
on the revenue. Savings have been effected
and will be effected in the working which
will reduce the cost of production, and as
the price of % or 80 shillings per carat is to
be maintained, it will materially add to the
profits of the shareholders.
Such, for instance is the accumulation of
blue ground on the ioors-i. e., the diamond
life. Gus ground taken from the mines which
has to be pulverized by exposure to the
atmosphere aud by watering. The wa er-
ing process has been expensive, but the ne
policy of checking production will leave the
ground to be pulverized by natures pro-
cesses alone-i. g., by long exposure to the
atmosphere aud rain, thus saving the cost
of water.
AT present there are on the floors of the
two mines a stock of blue ground amount
ing to 900 loads, which represents an
asset OF 8l,315,O10, as each load averages
IL carats OF diamonds. Altogether. then.
this company is in a most flourishing 60
dltlon. ne demand for diam ,nds ha5
kept pace with the production ever since
the miue5 were opened. That it will still
Keep pace is shown by the fact that even at
the Increased price all the diamonds have
been cleared Off, no stock remaining il
hand. If things CONT ne as they are now
there is rothiag improbable in the stats
ment made by those who have had large ex-
perience in these mines that the company
will be able to pay a divide I'd of betwee
Do and 90 per cent. per ann IN, and, if the
demand for the diamonds increases, even
more, One fact shows the remarkable skill
OF the tinanciers who are manipulating this
whole business-viz: that although the
capital OF the mines was actually 422, 5O0,-
UVJ, TINS new company, having only a
capital of 93,910,000, will distribute
larger scale Of dividends among the share
holders, dehenture3 having been raised for
the purchase of the other mines on which
only a small interest has to be paid.
The gold mines Of South Africa. which
are now IN the full swing of their develop
menf are gradually attracting the notice OF
1nanclal men and spectators all over
Europe. With only few properties work.
Hg the last month, the production was
/oS'UOO ounces of gold. There have been
Z sreau Ore " backs TO the speedy development
VI the mines, not the least being the diff
culty OF trans oru and the expense of fuel
ana labor. Every inch of macni cry has to
De conve ed over the worst roads in the
world for more than 300 miles by the slow
bullock wagon, but railways will soon be
constructed TO the fields, and then better
things may be expected.
THE ADDRESSING SEASON