Nr. 12017. Nr. 12017. GROSSBRITANNIEN. Der Kolonialminister an den Gouverneur der Kapkolonie. Er stimmt der Brit. Downing Street, May 13, 1899. Sir I have the honour to acknowledge the receipt of Major-General Grofs- Cox's despatch of the 23rd of November last, in which was enclosed a note 13. Mai 1899. from the State Secretary of the South African Republic, supplying a specifi britannien. cation of the claim for an indemnity on account of material damage arising out of Dr. Jameson's raid. || I caused the claim to be transmitted to the Directors of the British South Africa Company, intimating that I did not consider that the claim for moral and intellectual damage, which has been again advanced on behalf of the South African Republic, or that contained in Schedule 9 (expenses of the Orange Free State) can be entertained, but that I should be glad if the Directors would state their views upon the other Schedules. || I have now received the answer from the British South Africa Com Grefs pany of which I enclose a copy, and I request that you will communicate it Nr. 12017. to the Government of the South African Republic, with an expression of my britannien. opinion that, in the circumstances, the proposal of the Company is fair and 13. Mai 1899. reasonable, and that you will state that Her Majesty's Government would be glad to learn that the Government of the South African Republic are willing to agree that the claim for material damage should be submitted to arbitration, as proposed by the Company in the last paragraph of their letter. J. Chamberlain. I have, &c., Nr. 12018. Verhandlungen über die Beschwerden - Nr. 12018. SÜDAFRIKANISCHE REPUBLIK. Bericht der Industriekommission an die Regierung. *) 5. August 1897. Honourable Sirs, || In accordance with your instructions contained in your Südafrikan. letters addressed to the members of this Commission, dated 5th April, 1897, 5. Aug. 1897. your Commission have the honour to report as follows: Republik.{ On the 9th of April last, your Commission commenced proceedings at Pretoria, and after having been engaged there for a few days in arranging preliminary matters in connection with the Inquiry, your Commission decided to go to Johannesburg to pursue their investigations. || On the 20th day of April the Inquiry commenced at Johannesburg, and your Commission deemed it in the interest of all concerned to have the proceedings in public, and to give the same the widest publicity. || In the first place, your Commission set themselves the task to institute minute und careful investigation with regard to the depression in matters connected with the mining industry, and ascertained that during the year 1896 there were 183 gold mines within the State, whereof 79 produced gold to an amount and value of £8,603,821. The remaining 104 mines yielded no gold, most of these being in a state of development and equipment, whilst only 25 companies declared dividends to a total amount of £1,718,781. || For various reasons some mines have temporarily ceased operations. The cause of so many mines not paying dividends is primarily to be ascribed to the high cost of production. || There are various other causes that have contributed to the existing condition of things, but where mistakes have been made in the past, your Commission is pleased to state that at present there exist all the indications of a pure administration, and the State as well as the mining industry must be congratulated upon the fact that most of the mines are controlled and engineered by financial and practical men, who are devoting their time, energy, skill, and knowledge to the interest of the mining industry, and who have not only introduced the latest machinery and mining appliances, but also the greatest perfection of method and process known to science. But for these, a good many of the mines now pro *) Bis 12027 Blaubuch C. 9345. Red. Republik. 5. Aug. 1897. ducing gold would not have reached that stage. The extensive and voluminous Nr. 12018. evidence, as also the carefully prepared statistics in connection therewith, Südafrikan. annexed to this report, prove the vast extent of the mining industry within this State. The figures, plans, calculations, specifications, &c., are very interesting and exhaustive, and calculated to provide the studious reader with much material for contemplation, and it will further appear from the same that financial, economical, and political relations are very complicated. Your Commission, therefore, feel the weight and responsibility of the task imposed upon them; but, strengthened by a sense of confidence that their efforts to arrive at a satisfactory solution of the different problems will meet with your approval and support, they have undertaken the duty agreeably to your request by carefully entering into all the details of the position and investigating the same. The question cannot be solved by probing the past of some mines. We know that there are some mines where the gold reefs only exist in the imagination of the promoters, and it can safely be accepted that these mines. will not pay, even were coal and dynamite delivered free of charge at the mines; neither does the question of over-speculation or over-capitalisation affect the case. As has already been pointed out, there are only 25 companies who declared a dividend out of their profits, while the rest works with a very small profit, and in many cases do not cover the costs of production. The question to be solved is, what must be done to reduce the costs of production so as to leave a margin of profit upon the article produced, and this is a problem apart from any complications as between Government and nationalities. || A company migth be over-capitalised, but the costs of mining their property is in no ways affected thereby. It is within the knowledge of your Commission that the costs of working a mine may be averaged at £ 10,000 per month, and equipment and development from £200,000 to £500,000 per mine. Take this average of £10,000 per month, and that under existing conditions 100 mines will have to close down. In that case an annual amount of £12,000,000 will be taken out of circulation, with a result too disastrous to contemplate. To avoid such a calamity, your Commission are of opinion that it is the duty of the Government to co-operate with the mining industry, and to devise means with a view to make it possible for lower grade mines to work at a profit, and generally to lighten the burdens of the mining industry. This, and the development and equipment of new mines, are a few examples among many others where it is desirable that the Government shall take an active part, the more so when the fact is taken into consideration that up till now the mining industry must be held as the financial basis, support, and mainstay of the State. || The question, therefore, becomes one of national economy, and it is incumbent upon the Government, considering the rapid growth and progress of the country, so to alter its fiscal law system and administration as to meet the requirements of its principal industry. A close scrutiny of the combined Republik. Nr. 12018. report of the Chamber of Mines and Mercantile Association proves that the Südafrikan. commercial interests and that of the mining industry are so interlaced that it 5. Aug. 1897. is hardly possible to separate the one from the other, and all economical measures with regard to taxation, freight, &c., must apply to both. || Your Commission think that, with the natural facilities for agriculture, this industry ougth to be greatly encouraged. As a natural result, the development of this industry will materially reduce the cost of living, which will have an immediate and beneficial effect on the price of labour. It is a fact much to be regretted that the advance of agriculture is not proportionate with that of the mining industry, and the general growth and progress of the country, and it is, therefore, of the greatest importance to establish an agricultural department, and for the Government to take active measures to promote the interests of the industry by assisting, where such is feasible, to have same conducted on the most improved and modern principles, as practised in other parts of the world. In submitting to the Government a scheme for reducing the burdens of the mining industry, it is naturally to be expected that the latter will also practise economy in every department. Judging from recent events, and by the persistent manner in which the mines have reduced, and are further trying to reduce, the expenses, it leaves no doubt with your Commission that the mines, after so far having taken the initiative, will act responsively to any economical measure the Government may think proper to introduce. Your Commission entirely disapprove of the concessions through which the industrial prosperity of the country is hampered. || Such might have been expedient in the past, but the country has arrived at a stage of development that will only admit of free competition according to Republican principles. This applies more especially to the gold industry, that has to face its own economical problems, without being further burdened with concessions that are irksome and injurious to the industry, and will always remain a source of irritation and dissatisfaction. || From the commencement of the inquiry it was clear to your Commission that the question of labour was a most vital one for the mines, and seeing that the cost of labour amounted to from 50 to 60 per cent, of the production costs, your Commission are of opinion that the labour question deserves the first place in their report. Not only in this Republic, but in most countries all over the world, the labour question is a most difficult one to deal with. It still remains a subject for discussion, notwithstanding that the most renowned and eminent politicians and statesmen have tried to solve the question. || A combination of circumstances in this country renders the solution still more difficult, and from the evidence laid before you, it will be apparent how complicated the question is. To begin with White Labour. Your Commission would strongly recommend that all measures should be taken by which the cost of living at the mines should be reduced as much as |