Rhodes and Barnato
This is a story of two men who created a company that would rule an industry and an age. They forged the image that "diamonds are forever" in order to promote the carefully constructed illusion of value. These two men are Barney Barnato and Cecil John Rhodes who together through their exploits in Africa created the diamond and mining company of De Beers Consolidated Mines. This company, cartel really, controlled 95% of all diamond trading in the world. The only other entity history has ever seen that may have rivaled De Beers in power and influence was the Catholic Church during the Middle Ages. However, even this analogy falls short of the sheer authority and dominance that De Beers possesses, not just in its industry but in all fields. Two very different men created this empire, and this is their story.Barney Barnato was perhaps one of the greatest South African legends. He found his fortune and fame as a young man in the quest for the diamonds of Africa. Born Barnett Isaacs on July 5, 1852 in the East End of London, he was the son of a poor second hand clothing salesman. Barnato was not very well educated, dropping out of school at age 13. However, he was incredibly intelligent and shrewd, and thus a perfect
In 1890 Rhodes's Pioneers began their hazardous march into Matabeleland and thence to Mashonaland, where they established a fort in September, to be called Salisbury, after the British prime minister. In the following year Harry Johnston took over the administration of Nyasaland in a dual capacity, as commissioner of the British government and an employee of the chartered company. Although eventually the protectorate reverted fully to the British government, Rhodes's influence was felt both north and south of the Zambezi River, and soon the new territories were called by his name. Barnato had no choice but to concede to the merger. Over lunch at the Kimberly Club, described as the richest place in the world, with more millionaires per square foot than anywhere else, they worked out the terms of the consolidation. Barnato would exchange his stock in Kimberly Central Mining Co. for that of De Beers Consolidated Mines. Barnato would be the single largest shareholder, but Rhodes along with his associates would wield enough power to be firmly in control of the company. This merger brought 95% of diamond production under one company, and a business plan that would make OPEC look like free trade. His first big break in the business began with the retirement of another kopje-walloper he had befriended. He was selling all of his tools, including his pony for L27.10s. The reason this was such a find was that, Barnato noticed, the man would ride his pony with very loose reigns, the pony was so familiar with the route it was taking it would take it by habit. He reckoned that by buying what the man had to offer he was also purchasing the man's supplier list. Shortly after making his purchase, Barnato had enough money to form the company of Barnato Brothers, Dealers in Diamond and Brokers in Mining Property with his brother. He would still go out among the miners to buy diamonds and use the negotiating skills he had honed while a kopje-walloper. He mostly dealt with the Boer miners and due to his amicable nature developed a loyal clientele. The Boers preferred his warm nature to the coldness of the established German trading houses. When trading with the miners he would pick up useful information from them concerning the output of various parts of the mine. He became convinced that he would be able to find the largest concentration of diamonds deep under ground at the center of the mine. Consequently, he and his brother bought four mines at the center for L3000. The purchase soon paid for itself and the mines made L2000 a week. He continued his bold speculation in mining claims and expanded to become Kimberly Central Mining Co. and the richest man in South Africa. Once he got to South Africa he could not afford a wagon seat for his trip to Kimberly. Kimberly was the center of the diamond mining industry, and he would set off that way to find his fortune. He was able to book on his luggage, but had to make the 700-mile trek by foot. Once in Kimberly he began to work as a laborer for the boers living in the area. He would carry their products to market, and work on their farms. He also found work as a clown. Finally he had saved up enough money to enter the diamond business. He began at the bottom, as a kopje-walloper (literally: hill basher). These people would go from digger to digger buying diamonds right there on the spot. Queen Victoria found Rhodes's imperialism attractive, no less than his courtly rebuttal of the accusation of being a woman hater: "How could I dislike a sex to which your Majesty belongs?" The upshot of his successful propaganda was that the charter granted by the British government went far beyond what Lobengula had conceded. There was no northern limit on it; and Rhodes intended to extend the chartered company's control to Northern Rhodesia and Nyasaland as well as to the Bechuanaland Protectorate. His settlement of the Bechuanaland question was also soo
Some common words found in the essay are:
De Beers, Kimberly Kimberly, Company Barnato, Mining Property, East London, South Africa, England Oxford, Queen Victoria, British Empire, Starr Jameson, de beers, south africa, british government, diamond industry, kimberly central, diamond mining, british empire, beers consolidated mines, rhodes associates, july 5, barney barnato, de beers consolidated, commissioner british government, kimberly central mining, central mining co,
Approximate Word count = 3687
Approximate Pages = 15 (250 words per page double spaced)
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