Episode 289 - Black Velvet Opskop, De Beers’ Trojan Horse, an Historic Trick and a Multi-Racial Miner Protest
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Show notes
It could be said that Cecil Rhodes quest for hegemony over the diamond industry of South Africa was quickened by rumours of significant gold discoveries in the Transvaal.
Others say not, because no-one was aware in these heady days of just how valuable the Motherlode of Main Reef was to become. First a quick note.
The easiest way to picture Kimberley in 1886–87 is not as a collection of neatly separated modern mining companies, each with its own mine. It was more like a gigantic underground chessboard, where the four great diamond mines around Kimberley—De Beers, Kimberley, Dutoitspan and Bultfontein—had originally been divided into hundreds of individual claims.
A claim was essentially a small piece of ground, and in the early days an individual digger or small partnership could own one or several of them. As the workings became deeper and more dangerous, those little claims were progressively bundled together into larger holdings and companies. By the mid-1880s, therefore, you had companies that owned groups of claims inside a particular mine, while the word "mine" referred to the entire diamond-bearing pipe or working area.
So, if you were standing in Kimberley in 1886 and somebody said, "I'm working in the Kimberley Mine," that did not necessarily mean he worked for a company called Kimberley Mine. He might have worked for Kimberley Central, or the French Company, or Standard, or one of the smaller interests that still held claims there. The mine was the physical hole in the ground; the companies were the owners of pieces of that hole.
In 1886–87 the whole industry was therefore in the middle of a gigantic transition from hundreds of little claim-holders hacking away independently at the diamond-bearing ground, toward a handful of enormous corporations controlling entire mines.
Underground mining was replacing the enormous open pits because the old workings were becoming dangerously deep; companies were sinking shafts and driving tunnels down into the pipes. At the same time, Cecil John Rhodes and Barney Barnato were consolidating ownership above ground.
By 1886 Rhodes wasn’t powerful enough to overcome other significant owners in Kimberley, although most of the other entrepreneurs believed amalgamation was good for diamonds — no-one wanted to be dominated by Rhodes — or each other. And Rhodes was seeking domination.
While the majority of those in Kimberley scrabbled and scratched, the magnates were high on the hog. They frequented the Kimberley Club, launched by 74 well-heeled citizens who pledged 100 pounds each, a double storey structure that impressed as it rose from the flat Griqualand surrounds. Evenings were full of dinners and dances, black tie and evening dress abounded, awash in the blaze of the new electric lights, the first in South Africa, which twinkled inside the homes of the rich, and splashed along the streets. Men and women mingled, thronged and thrusted, the tuxedo dressed elites sat in their plush chairs in the Kimberly club, pressing the electric bells to call waiters who slid effortlessly across the plush velvet pile and Turkish carpets.
Most evenings sitting side by side in the lounge were Cecil John Rhodes and his friend and co-shareholder Alfred Beit, sipping on their favourite tipple which was black velvet, a mixture of champaign and stout beer. Suitably fortified, they would dance, but let me hasten to add, not together, Rhodes with the plainest girl apparently while Beit, who was a short man, often sought out the tallest women. A weird vaudeville show and watched by a few sober enough to register irony. Alfred Beit was the key to what happened next because he had already drawn the attention of one of the most powerful capitalists in the world — Nathanial Natty Rothschild of Rothschild’s bank in London. Beit wrote a letter of introduction for Rhodes, who sailed off to England where he met Natty Rothschild. The first meeting didn’t start well. Rothschild was frosty.
