from
the stocks of the various mining properties included in the new
incorporation and its leased holdings. The capital of De Beers Mines
before consolidation was £2,009,000. The capital of the Central Company
was £1,779,650. De Beers stock at the time of consolidation was selling
at .£40 a share, representing a capital of .£8,036,000. The stock of
the Central Company, controlling the Kimberley mine, was selling at
£50 for each £ 10 share, making a total valuation of £8,898,250
for the mine. At this market estimate the valuation of the two great
mines was j£ 17,934,2 50. The capital of the Du-toitspan was
approximately ,£3,500,000, and of Bultfontein, £2,000,000 nominally, making a gross valuation for the four mines of £23,434,250. By consolidation the capital stock was compressed to £3,950,000,
and almost absolute control of the mining in all four of these great
properties was secured at an annual charge of about f 320,000 for
interest on debentures and for leases of two companies, one in
Dutoitspan mine and one in Bultfontein mine. The business of the
Company grew so rapidly that it was necessary to establish transfer as
well as general business offices in London.
In
the year 1901 the Company's shares, which had increased in value to
more than £40 for a ,£5 share, were split up as follows : The capital
was increased from £3,950,000 to £4,500,000. The shares were divided
into two classes, 800,000 preference shares of £2 10s. each,
which will have a fixed cumulative dividend at the rate of forty per
cent per annum before the deferred shares participate, and 1,000,000
deferred shares of £2 10s. It will be remembered that in the
formation of the De Beers Consolidated Mines Limited, provision was
made for five Life Governors, who were to receive twenty-five per cent
of the profits of the Company after an annual dividend of thirty-six
per cent had been paid. When the reconstruction took place the Company
purchased the interests of the Life Governors and gave in payment
160,000 deferred shares.
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