The sun., 1908-03-19


II il agreement with the diamond syndi-
rate have been broken of and that the
Premier will make other arrangements
for the disposal Of its output.
KIMBERLEY, March ls.-The Jagersfon-
,sn diamond mine has reduced It's output
ore.half and stopped night work.
LoNuoS. March Io.-A despatch from
Amsterdam 10 the Telegraph states that
several important diamond firms are ar
rapeing TO send number Of diamond cut
,ers 10 Cape Town TO establish the industry
there. They hope that the Colonial Govern
ren' will support the enterprise by placing
duty on exported uncut diamonds or in
srro other way,
IoNpoN. March lS.--The announcement
NJ the collapse Of the agreement between
tho syndicate and the Premier company
has caused CONSERVATION in the diamond
trade. II is officially stated by both tho
Premier and the De Beers companies that
tbey will make every effort to maintain
prices.
The De Beers company will continue
N operate through the syndicate. The
Premier has not disclosed its plans, but
II ,s quite possible that the American syn
dcate which was investigating the busi-
rs.s with a view to purchase Just before
the American financial crisis came may
secure IT,
r. by No means follows that a collapse
will happen now. The danger is that
holders Of large quantities Of finished stones
throughout the world, which have been
unmarketahle for months, may seek TO
realize. This would bring a smash which
the producers and the syndicate may be
unable TO control II ishoped in the trade,
however. that the declarations Of both
the big companies that they will do their
utmost to sustain prices will avert this,
The agreement between the Premier
and the syndicate, which will expire on
March 81, provided that the syndicate
should take the entire output Of the Premier
mine at prices automatically fixed semi
annually bv the condition Of the market
during the previous six months. The
syndicate which is heavily overloaded
owing to the present state Of the market.
endeavored 20 secure a modification Of
the agreement by which it would have
10 purchase only portion Of the Premiers
output. The Premier insisted on all or
nothing. Hence the failure Of the negotia-
tions.
The importance of the crisis to the dia-
mond trade may be Judged by the fact
that all the leading diamond cutters Of
Amsterdam. TO the number Of seventy
seven firms, petitioned the De Beers and
Premier companies and the syndicate
Yesterday, urging speedy agreement
in order to avert a disastrous break in the
market
The Diamond Cutters Association, the
combination which controls practically all
the diamonds cut in the United States,
made public yesterday two cablegrams
received from London from the heads OF
The De Beers syndicate and Of the Premier
Mining Company respectively. From l..
4 n Abhhams Of the DE Beers syndicate
came the following
Vci,bop, Ny:
syndicate lrmly intend to maintain prices
a. hitherto.
From ". Busch, representative Of the
Premier Mining Company, the cabegram
received read,
T0hop. Wy;
Premier Company have no int ention lower
inE prices, regardless continuation of present
agreement with syndicate.
veithop il the cable name Of the secretary
of the Diamond Cutters Association. The
members of this body determined reCentlyto
leni direct 70 headquarters OF the diamond
combine 10 order to get statement OF the
condition Of the diamond trade, believing
hat the cable reports earlier did not have
m do with the prices Of diamonds at all,
On behalf Of the Diamond Cutters As
soclation a statement was made yesterday
a. follows:
There is mistaken impression, it is
relieved. that the cablegrams printed in
newspapers here relate to the prices of the
stones themselves when they refer to dia-
nonds That phrase relates to diamond
shares or stocks. which il is true have fallen
"A in prices since last October. The rea-
son for this fall is the failure OF the com
ranies to pay dividends. a wise business
measure under the circumstances OF
reduced trade in diamonds. They are keep
lng the money to support themselves over
continuance Of this period Of reduced de-
nand. il IL persists. IL is believed in the
diamond trade here that the persistent re-
poris Of cut in the price Of diamonds we're
circulated as a stock iobbing scheme to
force down the prices of shares on the other
Gde even further
Because OF these reports the Diamond
tutters Association here which at first
was not at all worried over them, decided
to send 10 headquarters in each case to get
an authoritative report about the price OF
diamonds. TThe cablegrams received are
published herewith IL may be stated.
ion. that despite all the reports and state
wenls about overlooking of diamonds and
mo forced sale Of them at lower prices.
that dealers here who import in the rough
have not succeeded in obtaining one cent
PRODUCTION There is absolutely no change
N the situation from what il was last Octo-
ler except that confidence has been hurt
and the diamond business is very dull in
consequence
Several dealers yesterday said that busi-
ness was sluggish after October OF last
year and was just regaining life again a
few weeks ago when the reports Of huge
falling on in the prices knocked the business
cudways again. They said business would
now he normal but for the reports persons
who might have bought diamonds now hav-
Wg decided to hold on to see II they couldn't
get the precious stones for less later on