The Birmingham age-herald., 1908-04-15
From the Boston Globe.

From the Boston GloDe.
 % HE crisis in the money market t(0 in New York last fall lessened
 the demand for many luxuries' Among these dispensable luxuries are diamonds; hence the owners of the. dia- mond fields are not havins so much call for their goods in the United States as formerly
 The weakness of the diamond market is shown by the fact that New York GUS toms returns of the import of precious stones-of which 90 per cent are diamonos show that in the five weeks ended fep- ruary 22, 1907, the value was $4,oS5,ooo, ana for the corresponding period of lsoS the import reached only $SS00OO. a shrink age of over 91 per cent
 This remarkable shrinkage accounts Tor the announcements from the managers of the South Africa mines concerning the shutting down of mines.
 The diamond output of South Africa the most important producing center in the World-may be regarded as coming from three properties, to wit The De Beers. the New Jagersfontein and the Premier. There are others, but they are
 
 of little account.
 or the great trio the De Beers is, of course. the best known and the most inn portant. It was formed as Tar pach ds 1888, and it's recent huge profits since the capital was divided into S00000 40 per cent preference shares of f2 los each and l,ooo- 600 deferred shares of like amount-1our millions sterling in -all-have been repre- sented by dividends of 50 per cent TOT the wears ended June 1903 and l9O4, ao per cent for 1so4-5 and 1906 and 70 per cent for 19o6-7.
 Some idea as to the magnitude of the company's operations will be gathered from the fact that last years income, according to the British mining year book, totalled, in round figures, s6,57O,ooo; ana after meeting expenses, dcbenture interest and taxes, and providing substantial amount for depreciation, a net profit or a2, 77000O remained.
 To illustrate luther the enormous profits made from one of these diamond mines, the remarkable history of the Premier Mining company may be cited. No serious attempt was made to deal with the prop erty until after the war. The company was formed in December, 1902, and within a year the G1 shares changed hands at 95O each-not on the strength or dlVl- dends, for production had only just com- menced but on the richness of the ln1tlal returns and of the indications afforded by the opening up of the mine. Since then the yield per load has fallen from n pro eli 70 pany, operating on a large scale, mas made enormous profits.
 The accounts to October 31 last show | an income for the year of G1, 100000 from diamonds plus G97,00O sundries-the lat ter item including the company's share | of the proceeds from the sale of the 1 Cullnan stone, not long ago presented to the King. The divisible profit was | e59s. 900, of which the Transvaal govern ment takes 9306,O0O.
 The capital of eSo0OO is now divided into 16o,00o shares of 5s each, entitled to 2oo | per cent cumulative dividend, and 32oooo | deferred shares of 2s Sd each, entitled to 1 the balance of profits. For each of the | past three years dividends of 400 per cent have been declared on the deferred shares.
 When a business enterprise can declare 1 dividends of 400 per cent in a single year | it can be judged how immaterial it is to l fine owners when lean year for business | appears
 The diamond merchants know that with | prosperous times again in any part of the | world there will be another great demand for their gems, and they will realize | profits high enough to make up for any | temporary lack of trade. Having mon- | opoly they can send prices soaring when | it is good business judgment to do so
 Those outside the trade have little con
 ception of the interest there Is in dia-
 monds in the United States. Until about
 1850 precious gems of high order were
 seldom sold in the United States. Wealthy
 families bought them abroad. Now, in
 diamonds and precious stones. that most | costly and important department of jew