The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-06-22
THE PRODUCTION OF DIAMONDS.

1t. appears that the great De Beers
Diamond syndicate is actually thinking
of moving its headquarters Office from
London 10 New York The reason for
this contemplated move is given IN a
recent consular report made by Frank
ID. Hill Of Amsterdam. 1T appears from
this that the Cape gov ernmcnt imposes
an income tax upon the company which
amounts to 100000 a year. The Eng
llsh income tax amounts TO about the
same figure. The Cape government
further taxes the company about So
100000 a year. That 100000 col.
leeted by the home government in Eng
land would be escaped if the company s
Office were removed from London TO
New York, At late meeting Of the
company IN London, the chairman made
this statement bearing upon the PROPOSE
tion TO make the move Indicated
The real business of the company--that
OF producing diamonds from the SOILS
absolutely confined to 1iimHerley III the
London office were closed tomorrow II
might inconvenience the English and con-
tincntal shareholders and would certainly
ing machinery ana supplies in England.
which amounted tc 500 for the two
years ended June 80 last. but it would not
make the slightest difference to our min
Ing operations. Not load less blue
ground would be hauled or washed. the
production Of diamonds for the year would
not he decreased by ono carat, nor would
the aggregate profit of the company suffer
TO the extent of one farthlng.
The London office, which is source
service to the English and continental
shareholders, and is of great Importance
10 English manufacturers and mer-
luxury 10 prolong its existence at a cost
of over s4S2. 900 per annum to the share
holders. Considering that America pur-
chases more than half Our diamond out
put, as against one-sixth consumed in
England, IL would be quite feasible and
not bad business for the company to
move the London office TO New York
This move, besides saving the 100000
income tax in England, would transfer
TO this country immense orders for ma
chinery which amount to over mil
lion dollars a year.
The company turned out during the
year 1906 diamonds valued at 7,051,-
627 as against $23 .l6S,91o for the previ-
Gus year. All the time that the diamond
mines are producing so largely, the com
pany. which is monopoly, is raising
the price, The value per carat of thes
diamonds from the different mines. at
the mines, is given as follows: De
Beers and Kimberley, $12.6S; Wesselton.
$3.50; Bultfontein, 1888; Dutoitspan,
$16.7S; Jagersfontein, $l3.s6, and Pre-
mier, 1854. Illustrating the increase in
the average price realized per carat
during the last twenty years, the report
of the New Jagersfoptein is quoted as
follows: Price in 1887 per carat, $3.50;
1891, $500; 1896, $746; 1899, SS.2S;
1908, $13; 1905, $13sS; and since then
there has been another increase of
per cent. The De Beers company con-
trolls the De Beers and Kimberley, Wes-
sclton, the Bultfontein. and the Du-
toitspan. But the Premier, an indepen-
dent mine (though in the monopoly is
said to b. by far the largest and most
valuable individual diamond mine ever
found in South Africa, and the report
says; "It is probably not an exaggera-
ton to say that il is one Of the most
valuable mines Of any kind ever discov-
cred in the world 1t is estimated
that when its full plant is at work it
will make profit al the rate Of almost
$l0,0OO,0oo year. And the productive
vitality of the mine on that basis,
reekoned on present developments. is
computed TO be fifty years. 1t was in
this mine that the tremendous Cultinan
diamond, now owned in New York was
found, This diamond weighs 1924 2-3
carats; that is to say, about one and
two-tnirds pounds troy. or one and
threeelghths pounds avoirdupois. The