The San Francisco call., 1910-07-05
DIAMOND TRUST
HAS COMPETITOR
London Syndicate Unable to
Control Output of Ger
man Mines
Kaiser's Government Takes so
Per Cent of Profit From
African Fields


that was discovered about two years
ago has seriously entered into competi-
tion with the older ones in supplying
the market with raw material. OF
late years the diamond output of South
Africa-the most important producing
center OF the world-may be regarded
as having practically come from three
groups, the De Beers, the New lager
fontein and the Premier. There are
others, but they are of little impor
tance. OF the great trio, the De Beers
is. of course, the most important. All
these are strictly bound TO deliver their
output TO the Diamond syndicate at
London, which dominates the sales of
rough diamonds TO the cutters in Ant
werp, Amsterdam and elsewhere, thus
forcing up the prices of finished dia-
monds out of all proportion to their
actual cost value.
Such was the condition when sud
denly, in May. 1908, the discovery was
announced of a new diamond field, also
in South Africa, near Luederitz bay, in
the German colony of Southwest Africa.
At first little attention was paid to
these rumors, but soon that country
was overrun by venturesome parties all
scraping for diamonds, q large number
of which were actually found The
German government established law
and order during the past year, and a
temporary arrangement was made
whereby a syndicate in Berlin, COM
prising q number of leading banks, is
to control the entire output of this new
field, and TO turn over to the govern
ment a large portion of the profits.
Whether or not the London diamond
syndicst te offered TO take over the Ger
man diamonds on the same terms and
conditions as il did De Beers and others,
the offer, if made, apparently met with
refusal, as the Germans prefer to
not only monopolize the output of these
new mines, but at the same time to also
gradually build up an entire diamond
industry of their own. from delivery of
rough stones to supplying the finished
product to the market.
MILLIONS IN SIGHT
Meanwhile another German combina
tion has been formed and is now nego-
tiating with the government for the
purpose of working the mines on terms
to suit the government, guaranteeing it
not less than so per cent of the profits.
Thus the German people, who had to
sacrifice many lives in their South
African province, now have fair
cnance of having at least the money
and time spent for the protection and
Improvement Of the colony-said TO
amount to about $50. 900. 600 or $50, ,0o0.-
OO0-refunded in good time with hand
some interest.
Since the present Berlin syndicate
took charge OF the mines about a year
ago, up TO October. 1909, about 273,701
carats of diamonds were delivered to
them. which were sold for s1,900300, of
which 1878. 500 was turned into the
public treasury. In the meantime the
prices have been advancing, and for
the first nine monthly shipments they
averaged per carat as follows; s5.34,
s6.49, s6.54. $40, $e.79, $3.50, Se.77,
S7.19 and $500. At present the average
production in each month amounts to
As 900 carats.
The German South African diamonds
are not large, as a rule. Some few
were found of 17k, 10%, and AZ
carats. Stones of one carat are not
rare. but by far the most average only
one-third. Though some of these
stones-but not many-are yellow or
red or green or blue, most of them
could vie with the clearest water for
transparency and color, and possess a
wonderful luster oftentimes glistening
like dewdrops when found in the sand.
Being not so hard as the British South
African diamonds, there is less waste
in cutting, and therefore the German
stones are very popular with the dia-
mond cutters. The cost of production
of rough stones at the German African
mines, too, is very low, averaging from
so cents to 81 per carat, while the aver
age in the British South African mines
ranges from 81 to IS per carat.
AS Germany is not yet able to prepare
in home establishments all the rough
diamonds so suddenly harvested from
of the South African output was turned
into the hands of a syndicate of dia-
mond merchants at Antwerp which has
become one of the great centers of the
European diamond industry, to be cut
and polished and made ready for the
trade.
SYNDICATE CONTROL
AS is well known, the traffic in rough
stones is centered in London, as nearly
the entire product of the mines of the
Cape OF Good Hope is in the hands of
a powerful syndicate there, from whom
the manufacturers are Obliged to get
their supply
Every week the mail from the Cape
brings thousands Of carats Of rough
dia monds, just as they come out of the
mines These stones are sorted in Lon.
don into lots. according TO their quality
and size, and then offered for sale to
merchants and manufacturers, who. ia
order to Judge Of the value of the
rough diamond. must possess great
practical and theoretical knowledge Of
the article The principal factors de-
terminln2 the value or the diamond are
it's color, it's purity and the regularity
of its form. The color is valued ac-
cording to its rarity Purity appears
to be the mast essential quality. he
cause every flaw diminishes the value
of the stone, and, furthermore. only
per cent OF the production of the mines
are absolutely pure. Regularity of
form also plays an important part in
the valuation of a diamond because
upon this depends, more or less. the
quantity Of waste in cutting and the
size OF the finished article
Therefore, in judging large rough
diamonds, the dealer has to proceed
with the greatest caution. for any
slight flaw, which one might think to
be merely on the surface, and conse-
quently easy to remove, may, in the
process OF cutting, penetrate the whole
diamond and occasion serious loss
In buying and selling diamonds the
weight of the gems has much to do
also in determining their price, and
this weight is gauged by q scale pecu-
liar to this trade only.
Mele diamonds are the small mixed
ones weighing less than one fourth OF
a carat or one grain. After this weight
the dealers usually count by grains
/, 2, 8. 4, 5, s, UP to IL grains. after
which the term carat is used. That Is
to say, carat is equal to 4 grains, but
IL is not customary among merchants
to speak of carats under IL grains
Thus; One-half carat is grains. 2H