The Washington herald., 1907-09-01
GEMS INCREASE IN PRICE
Powerful London Clique Controls
the Value.
sixty Per Cent of Mines Output BE.
longs TO Goyernment-HOw the
stones Are Cut.

EAuDdbiy many people i've IN iNe nope
that diamonds and automobiles. the to
them outward signs of great wealth, will
some day be 50 reduced in price as TO
come within the reach Of ALL" says the
New York Telegraph. So far as diamonds
are concerned. those hopeful ones proba-
bly, VIII have to live as long as did Methu-
selah to realize their dream. for although
the diamond mines are increasing their
output, and new mines have been dis
covered recently. the prices Of diamonds
are increasing instead OF falling, as one
might expect.
Practically ali the fine diamonds come
from South Africa, althugh one Occa-
sionally hears OF stones being discovered
in other countries. Special Consul Frank
D. Hiil has been in Amsterdam recently
investigating the diamond industry, and
his reports published in the Daily Consul
lar and Trade Reports contain much in
formation OF general interest. Diamonds
are found IN what are known as vol
canic pipes" and Il Will surprise many
persons TO learn that pipes recently have
been discovered in Connecticut, among
other places. These pipes may be ex-
planned. unscienuncaIly, as the materials
filling the eraters OF extinct mud vol
canoes.
For several years the prices Of diamonds
have been controlled by a powerful COM
bination OF dealers in London Experts
say that the present output Of the mines
will have TO be doubled before there will
be any drop in prices, while the better
class Of stones always will be in demand
at about present prices. Although the
business Of the mines was badly crippled
during the Boer war. the output in the
last year was near the total of the times
before the South African struggle. one
Of the newer mines. the Premier. is de-
clared the finest and most valuable dia-
mond mine in the world. and probably
one Of the most valuable mines Of any
kind ever discovered in the world. It
is estimated that when in full operation
the profits of its owners will be az the
rate OF $9.6iS.0oo a year.
According TO the new TransvaaI dia-
mOnd law, the government has the right
TO take Up so per cent Of the profits Of
any diamond mines found In the colony
after allowing for all capital expendi-
lures necessary 10 equip the property
In the Orange River Colony 20 per cent
Is the share allowed the government.
Yet such IS the profitable nature Of dia-
mond mining that a semi-annual divi-
dend Of % per cent has Just been de-
ciared on the preferred stock Of the Dc
Beers mines and dividend Of 30 per cent
on the deferred shares. At the annual
meeting of the Premier Company two
dividends Of l25 per cent were declared
on the common stock and one OF 400
per cent on the deferred stock
Just as South Africa produces all the
diamonds of the world. so Amsterdam en-
joys practical monopoly OF the diamond
cutting and polishing business 1here has
been talk Of late of starting a polishing
and cutting plant in Cape Town. but the
project Is not considered seriously, in
Amsterdam at least. The diamOnd-fnish-
ing industry was established in that city
IN the fifteenth century, and at the pres
ent time there are sixty firms engaged in
the business there In one immense fac
tory In the Dutch city 400 900 diamonds
were cut and polished in the last year.
This company employs $50 men and some
% women. to whom is intrusted the deli
cate and difficult task of cutting the
stones.
Three processes are required before the
rough stone is ready for the retail market
The first is that of splitting. which is done
by men, who do all the work by hand.
The purpose in splitting is to divide the
rough stone which contains flaws into
several pure, hawless stones. The rough
stone Is securely waxed into a small
wooden frame which the workman holds
in his left hand. In his right he takes a
small tool tipped with a diamond, and
with this he exertS strong pressure upon
the flaw or weak spot in the rough stone
until IT is split in two parts. If either
section contains more flaws. II Is split
again and again until only fiawless stones
remain.