288 THE DIAMOND MINES OF SOUTH AFRICA
Mosenthal,
and myself left for Paris, and after several meetings with the French
Company's directors, we settled upon the terms for the purchase of
their property, which they valued at that time at about £ 1,400,000,
including all their assets. On returning to London Mr. Rhodes arranged
with Lord Rothschild that he should furnish him with £ 750,000,
which would be sufficient for the time being to complete the
arrangements that he had made with the French Company. In my letter of
the 18th of June, it was mentioned to Messrs. Smith and De Crano that
Rhodes would be willing to issue De Beers shares in payment of the loan
at £1 less than the ruling market price of the shares at the date the
money was paid, and would pay Messrs. Rothschild a handsome commission
for transacting the business.
The
final arrangement made for the payment of this money was the issue of
50,000 De Beers Mining Company's shares at £15 per share, and a
syndicate was formed to take up these shares with the able assistance
of Mr. Ludwig Lippert, of Hamburg. It was agreed between Lord
Rothschild and Rhodes that the profit on the rise of the shares between
£16 and £20 during the next three months should be divided between the
purchasing syndicate and the De Beers Company. The shares rapidly rose,
and, before the expiration of the time, had already reached £11 per
share. The De Beers Company received £100,000 as their portion of the
profit on the rise of the shares. Shortly after the completion of this
business Rhodes returned to the colony and awaited the result of the
French Company's shareholders' meeting to confirm the sale which had
been made to him by the directors of that company. Barnato and others
interested in the Kimberley Central Company, upon hearing of the
transaction that had taken place, determined to use every effort to
prevent the consummation of this sale, and threatened to offer the
shareholders of the French Company at their general meeting f 300,000
more than the amount for which the directors had pledged the company to
Rhodes.
As a general of a great army is obliged to have the assistance and cooperation of competent lieutenants to carry out the plan
