FROM CRISIS TO CHAIRMANSHIP OF DE BEERS 177
I
sent you a confidential cable with reference to our purchasing certain
farms. You are in possession of Dr. Beetz's first report, and you will
remember that he found that the rich gravel extended eastwards from
Uitgevonden as far as the watershed. I may tell you that we have
acquired, with the exception of one or two farms, the ground lying
eastwards of Treasure Trove. We bought the farms with the mineral
rights, so that we can either work them or keep them locked up.
It
is a most valuable purchase, which in the long run must show huge
profits. Solly was not inclined, nor was I, simply to hand them over to
De Beers. We both felt that it was a very useful thing, for bargaining
in the future, to have properties of that kind under our control.
Westwards,
gravel exists, of course, as far as Mafeking, but most of the farms are
the ordinary river gravel, and while diamonds will be produced they are
not rich enough to endanger the diamond trade.
Lewis
and Marks own a few farms which contain rich gravel. Of these
Grasfontein is the richest and has been split up into a number of plots
which have been sold by Lewis and Marks to various people. Five of
these plots are exceptionally rich. Horlein, who inspected the property
for me, told me that he thought they were as rich as Pomona. Two of
these rich plots have been acquired by us for £15,000 and we have
already £5,000 or .£6,000 diamonds in hand.
The
other promising farms of Lewis and Marks are Hendriksdal, La Reys Stryd
and Samenkomst. These three farms will contain very rich spots, but
they are by no means as important as Grasfontein nor as promising as
the farms which wre have bought. I may tell you that the
total outlay is very little more than £100,000. If we could do a deal
with Lewis and Marks, then the whole Lichtenburg position would be
solved, but I doubt whether any reasonable arrangement can be come to
with these people, although Joel intends speaking to Isaac Lewis.
Anyhow the position which we now have is as follows:
On
Treasure Trove the rich gravels have been worked out and the
production will in future approximate .£50,000 per month, at which
level it should continue for some considerable time.
Grasfontein
is the next farm to be proclaimed, and as soon as that takes place we
must expect the alluvial production to increase again to .£500,000 per
month, and this will last about five or six months. Once Grasfontein is
finished, and in consequence of the farms which we have acquired, I
think that the alluvial production of the Lichtenburg fields will drop
to between £100,000 and £150,000 per month, and if you add the lower
river and Bloemhof to this then by the end of the year we should be
back to a production of between £200,000 and £250,000 per month for
alluvial.
Having
dealt with the position by purchasing farms it now remains for the
Syndicate to purchase the diamonds, always with a margin, which will
