would
be to advise the De Beers board regarding the conduct of operations on
the properties of which the De Beers company is the sole proprietor,
and the De Beers nominees on the boards of those companies in which the
De Beers company holds controlling interests and for whose
administration it is responsible; also to supervise the operations of
the various companies in order to ensure that effect is being given to
the decisions of the boards. . . .
Later
on in the year, he was writing very frankly on the same subject to Sir
Frank Meyer, who had become deputy chairman of the De Beers company. In
a letter dated 28 July he said:
.
. . May I describe the policy which it is my aim to introduce ? I am
trying to reorganize the diamond trade both as regards the producing
and selling end, and to do away with the abuses which have crept in in
the past, and it is only with the complete support of my colleagues
that I can succeed.
Let me just explain what I am driving at.
First, the reorganization of the producing companies so as to establish the supremacy and control of De Beers.
Secondly, a
technical and secretarial organization which shall be most efficient
and lead to very great economies in working, in particular as regards
De Beers, where abuses have been very great and where very
considerable savings can be effected. It is no use describing the
present abuses. .. . When I took over the chairmanship our mining
expenditure (working the three mines one eight-hour shift each) was
£1,250,000 per annum. I insisted on economies and we came down to an
expenditure at the rate of £1,000,000 per annum, and I shall not be
satisfied until our expenditure (always assuming three mines working
one eight-hour shift) is down to £750,000 or £800,000 per annum. But what is more, I want to see the mining and washing operations considerably improved; that is to say, I want to see 6,500 to 7,000 loads hauled and washed in
one shift from each mine, so that when times improve we can give our
quota without working two shifts at any one mine. In view of the lower price we get for our diamonds this improvement in output per eight-hour shift is essential. . . .
You
will see, therefore, that I have a definite policy which has as its aim
making De Beers prosperous. The reformer always has a bad time, and I
do not mind the unpopularity which I am reaping at the moment, because
I am absolutely certain that I am doing the right thing by the
companies, and that it is one of the privileges of the chairman to get
all the blame. . . .
He
fully gained the assent of his colleagues on the De Beers board, and in
his speech to the shareholders at the forty-third ordinary general
meeting was able to set forth at length the new arrangements arrived
at. De Beers were to become secretaries and consulting engineers to all
the companies whose control had been acquired; their head offices were
