The St. Louis Republic., 1902-01-26
De Beers Mine Can Produce for
IA Years Before Opening Its
Other Deposits.
MEETING OF THE COMPANY
Kimberley Trust Organized by Ce-
Gil Rhodes Practically Repre-
sents the Industry in
That Locality.
SPECIAL BY CABLE.

SPECIAL BY CABLE.
London. Jan. pa cable to the Daily
Express from Kimberley, South Africa, an
nounces that an extraordinary meeting of
shareholders of the De Beers Diamond
Company preceded the annual meeting.
Colonel Harris. presiding, moved a series
of resolutions regarding increase of capi-
tai and arrangements of the company's
finances necessitated by the Communication
of the life governors interests. He said
he desired to correct the erroneous i'm
preston that the life governors interests
died with them and could not be perpet-
uated, and pointed out that under section
81 of the trust deed the power of the life
governors to perpetuate their interests was
beyond dispute; and that was the position
with which the directors had to deal in
estimating the capital value of the life
governors interests.
That power had actually been exercised
after the death of Mr.. Barnato, and when
Mr.. Stowe ceased to be a life governor.
having sold out his interest and become
disqualified. Messrs. Rhodes and Belt ap-
pointed a third life governor, Mr.. Wernher,
50 that there was nothing to prevent the
life governors arranging among themselves
TO perpetuate the Office SO long as De
Beers existed.
Mines Annual Output.
The chairman pointed out that in calcu-
lating the capital value of a life governors
interest. the life of the mine was a most
important factor. The De Beers and KIM
berley mines, which had been in full swing
rarin T%r the last thirtytwS years were t9day
600 annually. These mines were likely to
be contributing their output for many
years yea s., beyond the lives of those present
namely. Dutoitspan, B6ltfontein and Pre-
mier, containing total claim area more
than four and half times as large as that
of the two mines which had produced the
remarkable results stated and as regarded
those mines little work had yet been done
Therefore he estimated that even If the
Kimberley and De Beers mines worked out
they would still be able to maintain their
output for the next 144 years. He thought
they became Shareholders. needed to
trouble themselves about the life of the
De Beers mines. On the other hand, the
diamonds, and as soon as the normal con-
ditions prevailed they might look for a
considerable increase in the rate of profits.
London stocks Low.
The stock OF rough diamonds in London
pated that they would be able in the future
10 do more work at less expense, owing to
fuel and other supplies becoming cheaper:
while he did not regard the competition OF
outside mines as of much Importance, see
ing that a sensible reduction in the present
price of diamonds would compel these COM
panies, with the exception Of Jagersfontein.
to cease operations.
The chairman entered into various statis-
ss to h that i hs s saTer lit It
would have involved saving to the COM
He read the following statement made by
Mr.. Rhodes: In accepting the proposal to
capitalize my life governorship interest 4
wish to state that my strong desire is to
retain my position as defined by the trust
deed, but in Difference to the wish expressed
by gentlemen representing a number Of IN
fuential shareholders, and in order to re-
tween myself and the shareholders, am
sacrifice"
The chairman concluded by saying that
in settling with life governors they had
naturally to take into consideration the
capital value Of their reverslonary interest.
rights and insisted on obtaining the full
value Of their interests it would have been
impossible to carry the arrangement
through without paying an increased
amount.
estimated roughly the gain to the share
holders to be at least 100000 per year. The
resolutions were carried unanimously;
The ordinary meeting was then held, at
which Colonel Harris, again presiding, ex-
haustively reviewed the results of the past
years working as compared with 1Sss
The retiring directors were reelected.
Rise Of De Beers.
The De Beers Consolidated Mines which
practically represents the diamond industry
energy and genius of Mr.. Cecil Rhodes.
Starting as the De Beers Mining Company
in 1880 it has gradually absorbed by pur-
chase and amaigamation number Of COM
peting mines.
How many these were can be estimated
by the fact that originally each mining
person was allowed to hold more than one
claim. At one time there were 800 separate
mining properties, and competition threat
ened to ruin the diamond industry.
In 1885 there were forty-four companies
and fifty-six private firms holding the
mines The most important of these was
the Beers Mining Company. and this formed
the nucleus of the consolidation, which was
effected in the same year. 1t was In con-
nection with this amalgamation that the
life governorships were Instituted as COM