GROWTH OF THE DIAMOND TRADE 51
The
De Beers Consolidated Mines, Limited, was organized March 13, 1888,
with a nominal capital of £100,000 with power to increase it. In
acquiring the control of the two great mines and the various companies
which had been operating the claims into which they were subdivided,
the capital stock was increased to £3,950,000, and £2,225,000 was
borrowed at 5-1/2 per cent. interest. The first step after
organization was to amalgamate with the De Beers Mining Company, and
the scheme was carried into effect March 31, 1888.
The
Kimberley Central Company then passed a resolution, August 7th, to
amalgamate, but as stated, a small minority, by securing a decision of
the Supreme Court against the legality of such a proceeding, prevented
the consummation in that way, so January 29, 1889, a resolution was
passed to liquidate, and the De Beers Consolidated bought the assets of
the Kimberley Central Company, paying therefor £5,300,000, and secured
the property, A paramount interest was also obtained in the Griqualand
West Company (Dutoitspan) and the Anglo-African Company. The South
African Company was bought for £120,000. The Krauss Bros, property was
secured for £36,500, and a perpetual lease of the Bultfontein
Consolidated, obtained. Gardner F. Williams, in " The Diamond Mines of
South Africa," says that, in all, properties costing upwards of
£14,000,-000 were acquired.
When
the De Beers Consolidated Mines Company was formed, all but twenty-five
shares of its stock were held by four men, as follows; Barnett J.
Barnato, 6658; Alfred Beit, 4439; Cecil J. Rhodes, 4439; F. S. P. Snow,
4439. By the articles of association they were
