GROWTH OF THE DIAMOND TRADE 57
terms
their directors made with themselves in their capacity as the Diamond
Syndicate, for practically they occupied that profitable dual position.
At
some time, either when the new five-year contract between the Syndicate
and the De Beers was made, or shortly after, the Syndicate must have
been convinced that the increasing production of the Premier mine was
undermining its ability to maintain prices, and was forced to make an
arrangement with its dangerous competitor whereby it agreed to market,
under certain conditions, the Premier diamonds also. The Premier
Diamond Mining Company announced from its head office in Johannesburg
on October 24, 1907, that the company had made definite arrangements
for the sale of its production to the Diamond Syndicate, similar to
those granted to the De Beers. Immediately thereafter came the panic in
the United States and the instantaneous cessation of orders from the
world's largest consumer. That the Syndicate at once endeavored to
evade or defer some of its responsibilities, appears certain from the
tone of a notice sent by the Premier Company to its shareholders
January 15, 1908, which said, "The board hope and believe that the
depression which affects trade will shortly be replaced by a more
normal state of things so as to enable the Diamond Syndicate, which has
undertaken to buy until March next the production of the Company, to
maintain its dealings with the Company." In the report of the Premier
Company dated January 25, 1908, occurs the following, " Certain
proposals concerning the quota to be supplied by the De Beers and by
your company have been settled, and the first period of the contract
dealing with the sale of your output by the
