The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1895-11-23
BARNEY BARNATO.
Chief Beneficiary of the Boom in "Kaffirs."
(Harper's Wsekly.)

(Harper's Weekly
Once or twice in every generation there
come moments when humanity goes
financially mad Such moment has
now arrived, as far as London, Paris and
Berlin arc concerned.
1t is all of surprising interest, but it is
bound to end sooner or later as all such
things do-in collapse, in ruin to thous-
ands and in misery to many, and when
that time comes a name which is now
word of maggie that of Barney Barnato,
will be exeorated and cursed the length
and breadth of Europe. At present the
name Of Barnato is an "open sesame"
with which to unlock the Golfers of
Europe An enterprise has merely to
bear that name to be successfully
launched upon the waters of finance.
Twenty years ago Barnato had difficulty
in getting as many pence as he has mil
lions now
At first, he bought few diamonds,
which he sold at a profit. Then he bought
a few mining shares, which he also sold
at profit. Then he bought great many
mining shares SO many, in fact, that in
1885, lie practically owned two-thirds OF
the diamond mines at Kimberley. Every
thing he touched turned into gold-he was
veritabIe modern Midas. During this
period be made the acquaintance of Cecil
Rhodes. tho son of an English clergyman
who had gone to South Africa in search
of health, and had gained both that and
wealth.
They formed silent partnership, and
began financial campaign that has Gull
minated in the present Kaffir boom.
Numerous wildcat schemesHwere float
ed, and all the prospectuses that glittered
were not gold. These prospectuses were,
however, necessary, for the fish cannot be
caught without bait, and the public as
the latesMr Barnum remarked. likes to
be fooled. In this case the public paid
the piper and Mr.. Barnato and his friends
did dance-a dance of financial joy.
For instance, they would float COM
pany for two hundred thousand dollars.
OF this amount one-half would go to Mr.
Barnato as vender and promoter, quar-
ter would be expended in floating the
enterprise and the balance would be used
In developing the property. AS it takes
about h2lf million dollars to properly
develop gold mine before dividends can
be paid-that is under the most favorable
oircumstances-it is self-evident that the
seventy five thousand dollars remaining
was utterly inadequate.
Barnato knew this of course and calcu-
lated accordingly. He had not the slight
est intention of keeping the shares he had
obtained free Of all cost. He knew bet
ter trick than that. With his able assis-
tants he started q boom in gold mining
shares through means of reports of rich
finds i'll various parts OF the country.
These reports as rule came after the
close of the market giving the confeder-
acy plenty of time to sell their stocks and
shares before the rumor of reports could
be verified or discredited. In this way
they. rolled up millions-not one or two
or three. but hundreds. In period of
four years they accumulated at least five
hundred millions of dollars, of which
Barnato and Rhodes owned, and sti IL
own, fouY-t.ths.
Shares wat up like skyrockets They
TO pounds. Fortunes were made in
twinkle, and on the site of the farm
where gold was first found there arose as
II by magic the city of Johannesburg.
AS far as the Transvaal itself is con-
eerned, there is not the slightest doubt
that it is one of the richest countries as
far as minerals are concerned in the
world. 1t was third in the list of gold
producing countries in 1894, but it is
probable that this year it will be second
to the United States with Australia
third.
The richness of its mines is not due to
the great collaborating quality of the
ree,s but to the fact of large, continuous
bodies of ore of moderate grade.
During the existence of these mines,
from 1887 until the first of this year, 10,
10000 tons of ore have been extracted,
yielding 6, 544, 5S4 ounces of gold, worth
about ST. so per ounce, and having gross
val C Of S110 CO.,, 600. The dividends paid
during the same period amounted in
round figures to 1928, 000, 900, or 10 per cent.
of the output. Last year were milled
1887, 635 tons. yielding 1904, 1862 ounces
of gold, worth $35, 900, 600, and the divi-
dends declared for the year amounted to
81. 050, ZOO, or 20 per cent of the output
The value of the output OF the fifty pro-
ducing mines on the 1st of last January
was S16O. 600, O00
The output per year in ounces since
gold was discovered in thu Transvaal is
as follows:-
1887, %. 754
1888, $40 266
1889, 366 O23
1S90, 49, 302 |