The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-08-30
HOW DIAMOND INDUSTRY
COULD BE INCREASED.
amines Ground and Suggests
Form of New Law.

Johannesburg Correspondence Of London Times.
Owing to the great and growing interest
which is being taken by the public in the
truly wonderful discoveries of damondifer-
Gus deposits in the Transvaal, 1 have. as
your mining representative, made a careful
inspection of some of the most important
properties which are now being worked for
diamonds in this colony.
I must own that before visiting the prop
critics 1 was very skeptical as to the dscov-
cries proving anything Of permanent i'm
portance.
There cannot be the least doubt that pay
able diamondiferous deposits have, in the
first place. been discovered in a district
which is situated some twenty-five miles to
the east of Pretoria.
After careful examination of the ground
and the geological conditions which present
themselves in this district. 1 have no hest
tation in stating that true pipes or craters
do exist in this district Of precisely sim
liar nature to those discovered at Kimber-
ley. which have given such wonderful
store of diamonds to the world.
1t Is naturally somewhat early In the day
to express any very definite opinion as to
the exact quality of the diamonds, but from
the comparatively small amount Of work
which has already been accomplished I be-
lieve 1t is the very general opinion that they
are somewhat inferior to those found in the
Kimberley mines.
On the other hand, stones have been dis
covered which clearly show that there is
very large percentage of diamonds OF a
good Salable quality.
Under these conditions It is of the great
est Importance to the future of the indus
try. and to the interests OF the state, that
the new diamond law should be drafted
so RI "a hast interests of
the colony.
There can be no question of doubt that
the State is entitled to retain the right of
mining and disposal OF all precious stones
as 1t does with gold. In exercising this
right its laws should be so drafted as to
preserve the best interests of the people, for
whom the State acts as trustee
GOVERNMENT AID NEEDED.
The diamond industry should be preserved
in the distinct interests of this colony, and
be in no way allowed to become swamped
by the De Beers monopoly, or in any other
way made subservient to Cape Colony in
terests.
In order to bring this about should think
that it will be of first Importance, to the
Government 10 draft such regulations as
will regulate the output of diamonds in ac-
cordance with the demand, and especially
od dTge tb OF th tho
of an inferior class Of diamonds.
In this connection it would certainly be
il Claims Should be- disposed e of to the eI pub
lie by lottery, as in such case the ground
would naturally fall into the hands of those
who had done nothing, as either prospectors
or discoveries, in advancing the interests
OF the diamond mining industry.
such spectators would probably bring
ers of claims merely using them as gamb-
ling counters. l am therefore strongly of
the opinion that it will be to the best inter
ests of the State to encourage all those
who have a sufficient amount OF capital to
conduct mining operations in a systematic
and mineriike manner.
In giving this opinion, ] wish It to be
distinctly understood that / am no special
pleader for capitalists interests. as opposed
TO those of the poor proSpector.
In fact. l am most DESTROYS that the Gov
in drafting the future diamond
law. should, as / believe Is it's Intention.
genuine prospector by the issue of licenses
on reasonable terms, and also so reward
the discoverer Of any d!amondiferous de-
colonization of the country.
The best form of taxing this industry is
to do so by results-that is, in
manner as that adopted in connection with
the gold industry.
In order to prevent the capitalists. who
Will be IN partnership with the Government,
from obtaining any unduly large propor-
ton OF the profits. it is naturally essential
mat this ROYALTY should be sufficiently large:
or made proportionate to the profits earned
on some sliding scale principle. ,
LII this were done, there could then be no
by the general public that the
state was In partnership with the capital.
lists to their detriment.
Should the Government insist on a rea-
sonable royalty being paid 1t Is claimed |
by those who are Dest able to form an opn-
ion that the diamond industry will before |
long assume such proportions as to be cas- |
lily capable OF meeting each year a very
considerable portion of the interest on the |
war loan.
ENORMOUS ANNUAL REVENUE.
In short. the Government may within a
year or so reasonably expect from Trans
vaal diamond mines an annual revenue of
fully $4,000 In order to show that this
estimate is not an exaggerated one. the
following particulars may be given in rela-
ton to one Of the diamond mines now at
work in this district Shortly after the dis
covery of a few diamonds on one of the
farms In the district. the owner of the |
farm offered to sell his freehold rights for
sl2o0oo. but. seeing that no systematic pros
pectinS work had at that time been car
ried out, several parties to whom 1t was
made refused to give this amount, Consid-
erlng the price outrageous.
The market valuation of this same firm
at present-day prices is over $4,000 600. and
all mining engineers who have visited the
agree that its speculative value
greatly exceeds this.
The company now owning this farm final
1y gave $26a 600 In hard cash for the prop