The sun., 1902-07-13
The Effect OF british Conquests Z pon
the Tran.vsai Mines.

provisional government established AZ
Pretoria was to impose tax nt lo per
cent. on the net profits of the Rand goid
mines This measure was taken m pur-
suanca uf report lately made 10y sir
DAVID BARBOUR on the finances Of the
Transvsa and Orange River Colony.
the conclusions Of which. Mr.. CHNMBrA-
LAIS has announced. have been sub
stantially adopted bv the Colonial OihCc
Although Sir DAVID B.RBoUR's recon-
menda,ion has been denounced hv the
African Rerier, the organ Of the Rand
capitalists, on the ground that It's pur-
port may be summed up IN the sentence
Here Is a gold mine: Como let W. rob
H., there seems tn be no douht that the
mines can afford 10 pay the additional
tax, and even larger i'np",' provided,
Of course. they are relieved nom other
exactions and restrictions Ia which they
were subjected by the Boers.
In his report Sir DAVID mrrorR pro-
ceeds ON the principle that tho new
system of taxation Tor the Iransvaa!
should he so framed as not 20 increase
unnecessarily the initial capital expendI-
ture. or augment the cost of working
Enterprise should not be discourage
neither should the poorer mines h.
made To bear an unfair share Of tho
fiscal burden. Consequently, the revc-
nue. should be raised by means OF "a tax
levied. not on gross returns bat on the
net profits lie advl-,s. moreover.
that steps should be- taken 20 benefit
mine owners and mine worlcrs in other
wavs. so that they should not have
reason to regard tho change of govern
ment as a misfortune from a rccunary
point Of view. He advocates, for in
stance, the abolition of transit dues
upon goods brought through the south
ern colonies an equ!'ablc adjustment
Of colonial railway rates, "a reduction at
the excessive frcights hitherto charged
by the Neither lands Railway tho Shnr'
line 20 Deiagua BAY, and. finally. tho
sweeping away of the dynamite mo-
nopoly. which last proc""cing alone will
mean a saving of about three million
dollars year.
According 20 Sir Dawn P,RRorr'S
calculations. the economics brought
about nv the changes oi fiscal policy
lust named would collectively amount
10 not less than 81 :: per ton ~ ore mincd
and treated Mr. JoHN HAYS HAMMOND.
a high authority upon Rand mining put,
the figures at 81 81 per ton. and a Johan-
nesburg writer lately quot"d in the
London Tunes asserts that the saving M
working cost would be at least % per
cent. or almost t75 PER ton Siill
another wcl-lnformed writer Mr. W
BLRIoCH. believes that the net gain 10
the whole industry on a wears work
the production Of iso9 bong taken as a
basis. would 10 after the new profit tax
81 10 per cent has been paid AZ least eight
million dollars n wear Tpon the basis
81 probable production, after the laps"
of three years from the declaration e
p~ace. tho same writer estimates that
for the ten wears ending with 1874. the
net saving would be about sla5oo. On
per annum In addition to these net
gains in profits. the mines would bene-
III from the large quantities of low
grade ore which, for the first time, W
be rendered available for exploitation
II should be obvious that every shilling
hy which costs are reduced will largely
increase the quantity 81 ore which can be-
millcd with a profit.
The consequences ~ adopting Sir DA-
vlD BsRBoUR's recommendations may
be brought out more clearly hv citing
two or three concr"'" examples IN
tho case 81 the Robinson mine tho
premier mine of tho Rand and ono Df
the largest gold producers IN the world.
the ne, profit made in 1898 was ci25 o1;,
from the crushing VI ~, on tons Of ore
Five shillings ton reduction in working
coat would mean an addition 20 the
profits Of ctG 900. Ten per cent. upon
the enlarged profit of fi7i ,e35 would bc
e47, 1893. or very little more than the saw
ing effected under the improvement uf
the general conditions. As another in
stance. We NAV take tho City and Sub
urban, where the grade ~ ore crushed
il rather above the general average
Of the Rand Here the not profit earned
in 1895 WAS fiss,5?i upon crush
ing Of ?is,llo tons. Under Sir DAVID
BARBouR's schome, the profit would bc
increased by fsi.52o 10 retS.O5O. Ton
per cent. on this increased profit would
he only E?i.SoS, and even 20 pcr cent
would be less than the estimated saving
Take. finally. such a mine as the George
Goch. which in 1893 did not pay The
quantity OF ore crushed was l01 80
tons. yielding gold to tho valge of ElI3,-
I&s. at an expenditure of fild,UI. Had
costs been fve shillngs per ton lower.
n profit OF T?3.2;0 would have been
secured. leaving go o?5 net, after paving
tar of 10 per cent
II is evident from these figures that
the new tax of 10 per cent on the net
profits will bc borne easily by the mines
of N" Rand, provided, 81 course, tive
shilling- can bc saved on working cost
rs certainly will hc the case II Sir DAVID
B,RBoUR's plans are carried out. Both
Sir MICHAEL HicKs-BrAcu and SIR VIII