The Transvaal from Within Part 4

The Boers were not satisfied with the Convention of 1881. They desired the removal of the Suzerainty, the cancellation of the clauses referring to natives, and the restoration of the t.i.tle of the South African Republic in lieu of that of the Transvaal State. They also desired (but did not expect to obtain) complete freedom in regard to their external relations, and they lost no time in trying how far they would be allowed to go in the direction of stretching the spirit of the Convention. Nothing in that ineffectual and miserable doc.u.ment is clearer than the definition of certain boundaries, and the provision that no extension shall be allowed. This hemming of them in-or shutting them up in a kraal, as President Kruger has expressively put it-was intensely repugnant to them. It cut into one of the most deeply-rooted habits of the Boer. His method of trek and expansion has been, to begin by making small hunting excursions into adjacent native territories, to follow up with grazing his cattle there until he created in his own mind a right by prescription, and then to establish it either by force or else by written agreement, too often imperfectly translated. This was oftentimes varied or supplemented by helping the weaker of two rival chiefs, and so demolis.h.i.+ng the power of a tribe. The expulsion of the native followed as a natural result.

In the Transvaal itself there was, and still is, an immense quant.i.ty of unoccupied land, and the Boers were quite unable to properly control, utilize, and administer their own immense territory, but 'land hunger' is theirs as a birth curse. The individual cannot bear to see the smoke of his neighbour's chimney; he will not cultivate 50 acres, but wants 50,000; the 'nation' wants Africa-no less. They coveted Swaziland, Zululand, Bechua.n.a.land, Matabeleland, Mashonaland, and Tongaland, and set to work by devious methods to establish claims to these countries.

In Bechua.n.a.land they took sides; that is to say, parties of freebooters from the Transvaal took up the cause of certain native chiefs against certain others. The London Convention in 1884 disposed of this quarrel by fixing the south-western boundaries of the Republic, and placing two of the disputing chiefs under the Transvaal, and the other two under British protection. Notwithstanding this, however, the new Convention was no sooner signed than the scheming was resumed, and before a year had pa.s.sed a party of Transvaal Boers, several of them now holding high official positions under the Republic, raided the territory of the chiefs in the British Protectorate, and even attacked the chief town Mafeking. This was followed by a proclamation by President Kruger placing the territory under the protection of the Republic. Mr. Rhodes, who had already made himself conspicuous by his advocacy of holding the highway to the interior open, was instrumental in inducing the Imperial Government to make a determined stand against this. An ultimatum moved the Transvaal Government to withdraw the proclamation and forced the Boers to leave the country-only, however, when and because the demand was backed by the Warren expedition at a cost of over a million and a half to the British taxpayer! This expedition was sent by Mr. Gladstone, the Boer benefactor-notwithstanding all his anxiety to prove the Transvaal settlement a good one! The action of the Transvaal, and the most brutal murder of Mr. Beth.e.l.l by the individuals above referred to as holding high official positions under the Republic, gave indications of the bent of the Boer authorities which people in South Africa did not fail to take note of. Beth.e.l.l had been wounded in the invasion of the territory by the Boers, and as he lay helpless the 'prominent Transvaal official' came up and, seeing a repeating rifle lying beside him, asked him to show them how it worked. He did so, and the 'prominent official' taking it up under pretext of examining it shot Beth.e.l.l dead with his own weapon.

In Zululand similar tactics were resorted to by the Republic. Transvaal Boers invaded Zululand and (1884) took up the cause of Dinizulu, a son of the dead Cetewayo, and established him as king, upsetting Sir Garnet Wolseley's settlement. They then proceeded to seize the country, but the British Government intervening at this point, rescued some two-thirds for the Zulus. A glance at the map will show that the intention of the Boers was to get to the sea, and also that the unlucky Zulus, who had been broken by the British Government-and very rightly too-because they were a menace to the Transvaal, even more than to Natal, were now deprived of the pick of their country, plundered and harried by the very people who had been at their mercy until the Imperial Government stepped in. It is very noteworthy that, with the splendid exception of the lion-hearted Piet Uys and his sons, who fought and died (father and one son) in the Zulu war side by side with the Britishers whom he was keenly opposing on the annexation question, none of the Boers came forward to help in the Secocoeni or Zulu wars, although these wars were undertaken, the one entirely, and the other mainly, on their account. But a great many were ready to raid and annex as soon as the Zulu power was broken.

Swaziland became in turn the object of the Boer Government's attentions. First, grazing concessions were obtained; and next, other concessions for the collection of Customs and Revenue dues, for telegraphs, railways, banking, surveying, and goodness only knows what. One individual applied for and obtained a concession for the balance of ungranted concessions, and another applied for a grant of the Chief Justices.h.i.+p. What chance the unfortunate native had in such a condition of things can be imagined. The Transvaal bought up all the concessions necessary to make government of the country absolutely impossible, except with their cooperation. The secret service fund of the Republic provided means for making the representatives of the Swazi nation see things in a reasonable light, so that when the time came to investigate the t.i.tle to concessions and to arrange for the future administration of the country the result was a foregone conclusion. The judge appointed by the Imperial Government on the Special Joint Commission to inquire into the concessions and matters in general let some light on the manner in which these concessions were acquired and granted, by pertinent questions to the concessionaires and interpreters. He asked, for instance, 'Do you swear that you interpreted this doc.u.ment verbatim to the king?'-'Yes.' 'Will you kindly tell to the Court what is the Kaffir for "ad valorem duties" and "et cetera, et cetera, et cetera," or how you interpreted and explained the significance of the "survey," "mint," "revenue," and "towns.h.i.+ps" concessions?'

The picture of the obese and drunken chief surrounded by fawning harpies was a shameful and disgusting one. One example is sufficient to show how the thing was done. A concession for gambling was applied for. The man who interpreted knew a smattering of 'kitchen' Kaffir, and his rendering of the 'monopoly for billiards, card playing, lotteries, and games of chance' was that he alone should be allowed to 'tchia ma-ball (hit the b.a.l.l.s), hlala ma-paper (play the papers), and tata zonki mali (and take all the money).' The poor drunken king nodded sleepily to the first two clauses, but to the bald proposition of taking all the money, which he could understand, he violently objected. The concession was, however, subsequently granted on the representations of a more tactful interpreter.

A very flagrant breach of the spirit of the London Convention, and a very daring attempt at land-grabbing, was the proposed last will and testament of the Swazi King Umbandine, which provided that the governing powers should be a.s.signed to Mr. Kruger as executor of the King and trustee and administrator of the country. His project was defeated; but the aim of the Boer Government was ultimately achieved, nevertheless, and Swaziland has now been handed over to the control of the Republic in spite of the prayers and protestations of the Swazis themselves, who had proved in the past with very practical results to be useful, ready, and loyal allies of the British Government.

While Swaziland was being entoiled the Transvaal Government were not idle elsewhere. Matabeleland was looked upon as the heritage of the Boer, because of the 'old friends.h.i.+p' with the Matabele,-whom they had driven out of their country, now the Transvaal; and Mashonaland was theirs because it was their ancient hunting-ground. That the Boers did not abandon their old schemes merely because they had agreed by treaty to do so is shown by a letter which was found at Lo Bengula's kraal by Mr. F. Thompson when he went up to negotiate for Mr. Rhodes. The stealthy grovelling of the Commandant-General before a savage native chief, the unctuous phraseology, the hypocritical a.s.surances of an undying friends.h.i.+p between Boer and Matabele so long as there are living one of each race, throw a lurid light upon the conduct of Boer diplomacy with native tribes, and explain much of the ineradicable fear and distrust which are felt on the native side in all dealings with the aggressive Boer. The letter reads:

MARICO, THE SOUTH AFRICAN REPUBLIC, March 9, 1882.

To the great ruler the Chief Lo Bengula, the son of Umzilikatse, the great King of the Matabili nation.

GREAT RULER, When this letter reaches you, then you will know that it comes from a man who very much desires to visit you, but who, being a man of the people, cannot get loose to make such a long journey. Therefore he must now be satisfied with writing a letter to carry his regards to the son of the late King of the Matabele, our old friend Umzilikatse. When I say that I desire to see you, it is not to ask for anything, but to talk of something, and to tell Lo Bengula of the affairs and things of the world, because I know that there are many people who talk and tell about these matters, whilst there are but few who tell the truth. Now, when a man hears a thing wrong, it is worse than if he had never heard it at all. Now, I know that Lo Bengula has heard some things wrongly, and for this reason would I tell him the real truth. Now, you must have heard that the English-or as they are better known the Englishmen-took away our country, the Transvaal, or, as they say, annexed it. We then talked nicely for four years, and begged for our country. But no; when an Englishman once has your property in his hand, then is he like a monkey that has its hands full of pumpkin-seeds-if you don't beat him to death, he will never let go-and then all our nice talk for four years did not help us at all. Then the English commenced to arrest us because we were dissatisfied, and that caused the shooting and fighting. Then the English first found that it would be better to give us back our country. Now they are gone, and our country is free, and we will now once more live in friends.h.i.+p with Lo Bengula, as we lived in friends.h.i.+p with Umzilikatse, and such must be our friends.h.i.+p, that so long as there is one Boer and one Matabele living these two must remain friends. On this account do I wish to see Lo Bengula, and if I may live so long, and the country here become altogether settled, and the stink which the English brought is first blown away altogether, then I will still ride so far to reach Lo Bengula, and if he still has this letter then he will hear the words from the mouth of the man who now must speak with the pen upon paper, and who, therefore, cannot so easily tell him everything. The man is a brother's child of the three brothers that formerly-now thirty-two years ago-were at Umzilikatse's, and then made the peace with him which holds to this day. He still remembers well when the first Boers, Franz Joubert, Jann Joubert, and Pieter Joubert, came there, and when they made the peace whereby Umzilikatse could live at peace and the Boers also, and the peace which is so strong that the vile evil-doers were never able to destroy it, and never shall be able to destroy it as long as there shall be one Boer that lives and Lo Bengula also lives.

Now I wish to send something to give Lo Bengula a present as a token of our friends.h.i.+p. I send for Lo Bengula with the gentleman who will bring him this letter a blanket and a handkerchief for his great wife, who is the mother of all the Matabele nation. I will one day come to see their friends.h.i.+p. The gentleman who brings the letter will tell you about all the work which I have to do here. Some bad people have incited Kolahing, and so he thought he would make fortifications and fight with us, but he got frightened, and saw that he would be killed, therefore I made him break down the fortifications and pack all the stones in one heap, and he had then to pay 5,000 cattle and 4,000 sheep and goats for his wickedness. Now there is another chief, Gatsizibe-he came upon our land and killed three people and plundered them-he must also pay a fine, or else we will punish him or shoot him, because we will have peace in our country. Now greetings, great Chief Lo Bengula, from the Commandant-General of the South African Republic for the Government and Administration.

P.J. JOUBERT.

A big trek (the Banjailand trek) was organized in 1890 and 1891 by General Joubert and his relatives and supporters to occupy a portion of the territory already proclaimed as under British protection and the administration of the Chartered Company. The trekkers were turned back at Rhodes's Drift, stopped by the firmness and courage and tact of Dr. Jameson, who met them alone and unarmed; and also by the proclamation of President Kruger, to whom it had been plainly intimated that the invasion would be forcibly resisted and would inevitably provoke war. The matter had gone so far that the offices of the Republic of Banjai had already been allotted. The President's proclamation instead of being regarded as the barest fulfilment of his obligations-very grudgingly done under pressure of threats-was vaunted as an act of supreme magnanimity and generosity, and was used in the bargaining for the cession of Swaziland.

In Tongaland Boer emissaries were not idle; but they failed, owing to the fact that the Tonga Queen Regent, Zambili, a really fine specimen of the savage ruler, would have nothing to do with any power but England, whose suzerainty she accepted in 1887. Being shut off here, the Boer Government made another bid for seaward extension, and, through their emissaries, obtained certain rights from two petty chiefs, Zambaan and Umbegesa, whom they represented as independent kings; but Lord Rosebery annexed their territories in 1894, and so put a final stop to the Transvaal schemes to evade the Convention by intrigue with neighbouring native tribes.

Nothing can better ill.u.s.trate the Boers' deliberate evasion of their treaty obligations than their conduct in these matters. The Pretoria Convention defined the Transvaal boundaries and acknowledged the independence of the Swazis, and yet the British Government's delay in consenting to the annexation of Swaziland by the Republic was regarded for years as an intolerable grievance, and was proclaimed as such so insistently that nearly all South Africa came at last to so regard it.

The Boers' consent to the Chartered Company's occupation of Mashonaland was looked upon as something calling for a quid pro quo, and the annexation of Zambaan's land is now regarded as an infamous act of piracy by England, and an infringement of the Republic's rights, which the Dutch papers denounce most vehemently. The Boer Government made it clear, not less in their purely internal policy than in these matters of extensions of territory, that they intended pursuing a line of their own.

In 1882, the property known as 'Moodies,' consisting of a number of farms bearing indications of gold, was thrown open to prospectors. The farms had been allotted to Mr. G. Piggott Moodie when he was Surveyor-General, in lieu of salary which the Republic was unable to pay. This was the beginning of the prospecting era which opened up De Kaap, Wit.w.a.tersrand, and other fields; but it was a small beginning, and for some time nothing worth mentioning was discovered. The Republic was again in a bad way, and drifting backwards after its first spurt. The greatest uncertainty prevailed amongst prospectors as to their t.i.tles, for in Lydenburg, at Pilgrim's Rest, and on the Devil's Kantoor, concessions had been granted over the heads of the miners at work on their claims, and they had been turned off for the benefit of men who contributed in no way to the welfare and prosperity of the State. It has been stated in the Volksraad that not one of those concessionaires has even paid the dues and rents, or complied with the other conditions stipulated in the contracts. Many of the miners left the country in disgust. The Lydenburg district was practically locked up for fourteen years owing to the concession policy, and has only lately been partly released from the bonds of monopoly.

In 1884 Messrs. Kruger and Smit proceeded to Europe to endeavour to raise funds, which were badly needed, and also to obtain some modifications of the Convention. The attempt to raise funds through the parties in Holland to whom the railway concession had just been granted failed, but the delegates were more fortunate in their other negotiations. They negotiated the London Convention which fixed certain hitherto undefined boundaries; and in that doc.u.ment no reference was made to the suzerainty of Great Britain. They also secured the consent of the British Government to the alteration of the t.i.tle of the country. Instead of Transvaal State it became once more the 'South African Republic.'{07} During this visit there occurred an incident which provides the answer to Mr. Kruger's oft-too oft-repeated remark that 'the Uitlanders were never asked to settle in the Transvaal, and are not wanted there.' Messrs. Kruger and Smit were staying at the Albemarle Hotel, where they found themselves, after some weeks' delay, in the uncomfortable position of being unable to pay their hotel bill. In their extremity they applied to one Baron Grant, at that time a bright particular star in the Stock Exchange firmament. Baron Grant was largely interested in the gold concessions of Lydenburg, and he was willing to a.s.sist, but on terms. And the quid pro quo which he asked was some public a.s.surance of goodwill, protection, and encouragement to British settlers in the Transvaal. Mr. Kruger responded on behalf of the Republic by publis.h.i.+ng in the London press the cordial invitation and welcome and the promise of rights and protection to all who would come, so frequently quoted against him of late.

By this time Moodies had attracted a fair number of people, and the prospects of the country began, for the first time with some show of reason, to look brighter. No results were felt, however, and the condition of the Government officials was deplorable. Smuggling was carried on systematically; in many cases officials 'stood in' with smugglers. They were obliged either to do that or to enforce the laws properly and get what they could by seizing contraband goods. There were two objections to the latter course, however. One was that the country was large and detection difficult with men who were both daring and resourceful; and the other was that the officials were not sure of receiving their share of the spoil from a Government so hard pressed as this one was, and whose higher officials also had difficulties about payment of salaries. In many cases salaries were six months in arrear; and other cases could be quoted of officials whose house-rent alone amounted to more than their nominal remuneration. Yet they continued to live, and it was not difficult to surmise how. Another significant fact was that goods subject to heavy duties-such as spirits, hams, etc.-could be bought at any store at a price which was less than original cost plus carriage and duty. Smuggling was a very palpable fact, and-quoth the public and the officials-a very convenient and even necessary evil.

The principle on which the Customs officials conducted the business of their office was observed by other officials of the Republic, and in one department, at least, the abuses have had a very far-reaching and serious effect. The Field-cornets-district officials who act as petty justices, registering, and pa.s.s officers, collectors of personal taxes, captains of the burgher forces, etc., etc.-are the officers with whom each newcomer has to register. This is an important matter, because the period of residence for the purpose of naturalization and enfranchis.e.m.e.nt is reckoned from the date of registration in the Field-cornet's books. As these officials were practically turned loose on the public to make a living the best way they could, many of them, notwithstanding that they collected the taxes imposed by law, omitted to enter the names of new arrivals in their books, thus securing themselves against having to make good these amounts in event of an inspection of the books. Many of the Field-cornets were barely able to write; they had no 'offices,' and would accept taxes and registrations at any time and in any place. The chances of correct entry were therefore remote. The result of this is very serious. The records are either 'lost' when they might prove embarra.s.sing, or so incorrectly or imperfectly kept as to be of no use whatever; and settlers in the Transvaal from 1882 to 1890 are in most cases unable to prove their registration as the law requires, and this through no fault of their own.

In the country districts justice was not a commodity intended for the Britisher. Many cases of gross abuse, and several of actual murder occurred; and in 1885 the case of Mr. Jas. Donaldson, then residing on a farm in Lydenburg-lately one of the Reform prisoners-was mentioned in the House of Commons, and became the subject of a demand by the Imperial Government for reparation and punishment. He had been ordered by two Boers (one of whom was in the habit of boasting that he had shot an unarmed Englishman in Lydenburg since the war, and would shoot others) to abstain from collecting hut taxes on his own farm; and on refusing had been attacked by them. After beating them off single-handed, he was later on again attacked by his former a.s.sailants, reinforced by three others. They bound him with reims (thongs), kicked and beat him with sjamboks (raw-hide whips) and clubs, stoned him, and left him unconscious and so disfigured that he was thought to be dead when found some hours later. On receipt of the Imperial Government's representations, the men were arrested, tried and fined. The fines were stated to have been remitted at once by Government, but in the civil action which followed Mr. Donaldson obtained 500 damages. The incident had a distinctly beneficial effect, and nothing more was heard of the maltreatment of defenceless men simply because they were Britishers. Moreover, with the improvement in trade which followed the gold discoveries of 1885 and 1886 at Moodies and Barberton, the relations between the two races also improved. Frequent intercourse and commercial relations begot a better knowledge of each other, and the fierce hatred of the Britisher began to disappear in the neighbourhood of the towns and the goldfields.

In 1886 the wonderful richness of the Sheba Mine in Barberton attracted a good deal of attention, and drew a large number of persons-prospectors, speculators, traders, etc.-to the Transvaal. Before the end of 1887 ten or twelve thousand must have poured into the country. The effect was magical. The revenue which had already increased by 50 per cent. in 1886, doubled itself in 1887, and then there came unto the Boer Government that which they had least expected-ample means to pursue their greater ambitions. But unmixed good comes to few, and with the blessings of plenty came the cares of Government, the problem of dealing with people whose habits, thoughts, ambitions, methods, language, and logic differed utterly from their own. Father Abraham on the London Stock Exchange would not be much more 'at sea' than the peasant farmers of the Volksraad were in dealing with the requirements of the new settlers.

Agitations for reforms commenced early in Barberton. At first it was only roads and bridges that were wanted, or the remission of certain taxes, or security of t.i.tle for stands and claims. Later on a political a.s.sociation named the Transvaal Republican Union was formed in Barberton, having a const.i.tution and programme much the same as those of the Transvaal National Union, formed some five years later in Johannesburg. The work of this body was looked on with much disfavour by the Government, and it was intimated to some of the prominent members that if they did not cease to concern themselves with politics they would suffer in their business relations, and might even be called upon to leave the country. Many reforms were specified as desirable, and the franchise question was raised, with the object of getting the Government to make some reasonable provision in lieu of the registration clause, which was found in most cases to be an absolute bar.

The discovery of the Wit.w.a.tersrand conglomerate formation soon helped to swell the flowing tide of prosperity. In the middle of 1887 the regular output of gold commenced, and the fields have never 'looked back' since. Johannesburg-named after Mr. Johannes Rissik, the Surveyor-General of the Transvaal-was soon a far greater problem than Barberton had been. The shareholders in the mines soon found it necessary to have some organization to protect their interests and give unison to their policy, and to preserve the records and collect information for the industry. The Wit.w.a.tersrand Chamber of Mines was then formed, a voluntary business a.s.sociation of unique interest and efficiency. The organization includes all the representative and influential men, and every company of any consequence connected with the mining industry; and it has, through its committee and officials, for eight years represented to the Volksraad the existence of abuses and grievances, the remedies that are required, and the measures which are felt to be necessary or conducive to the progress of the industry in particular, or the welfare of the State in general. The President, Executive and Volksraad, by neglect of their obvious duties, by their ignorance of ordinary public affairs, by their wilful disregard of the requirements of the Uitlanders, have given cohesion to a people about as heterogeneous as any community under the sun, and have trained them to act and to care for themselves. The refusal year after year to give a charter of incorporation to the Chamber, on the grounds that it would be creating an imperium in imperio, and the comments of Volksraad members on the pet.i.tion, have made it clear that the Government view the Chamber with no friendly eye. The facts that in order to get a workable pa.s.s law at all the Chamber had to prepare it in every detail, together with plans for the creation and working of a Government department; and that in order to diminish the litigation under the gold law, and to make that fearful and wonderful agglomeration of erratic, experimental, crude, involved, contradictory and truly incomprehensible enactments at all understandable, the Chamber had to codify it at its own expense and on its own initiative, ill.u.s.trate both the indispensable character of the organization, and the ignorance and inept.i.tude of the Government.

The records of the Volksraad for the last ten years may be searched in vain for any measure calculated constructively to advance the country, or to better the conditions of the workers in it, with the few-very few-exceptions of those proposed by the Chamber of Mines. The country has, in fact, run the Government, and the Government has been unable to ruin it.

Shortly after the discovery of the Rand conglomerates, it became clear that a railway would have to be built between the coalfields and the mines-some forty miles. But it was a fixed principle of the Boers that no railways (with the exception of the Delagoa Bay line, which, as the means of diverting trade from British channels, was regarded as a necessary evil) should be built, since they could compete successfully with the ox-waggon, and thus deprive the 'poor burgher' of his legitimate trade spoil; and great difficulty was experienced in getting the consent of the Raad. As a matter of fact, the permission to build it was only obtained by subterfuge; for it was explained to the worthy law-makers that it was not a railway at all-only a steam tram. And the Rand Steam Tram it is called to this day.

The Delagoa Railway-the darling scheme of Presidents Burgers and Kruger in turn-was taken seriously in hand as soon as it was possible to raise money on almost any terms. The concession for all railways in the State was granted on April 16, 1884, to a group of Hollander and German capitalists, and confirmed by the Volksraad on August 23 following. The President's excuse for granting and preserving this iniquitous bond on the prosperity of the State is, that when the country was poor and its credit bad, friends in Holland came forward and generously helped it, and this must not be forgotten to them. As a matter of fact, friends accepted the concession when the State was poor and its credit bad, but did nothing until the State's credit improved to such an extent as to be mortgageable. Then the friends granted certain favourable terms under their concession to other friends, who built the first section of the line at preposterous rates, and repaid themselves out of moneys raised on the State's credit.

A well-known South African politician, distinguished alike for his ability and integrity, who visited the Transvaal during the progress of the reformers' trial, and was anxious in the interests of all South Africa to find a solution of the differences, put the position thus to some of the leading men of the Rand: 'You can see for yourselves that this is no time to ask for the franchise; for the time being, Jameson's invasion has made such a suggestion impossible. Now, tell me in a word, Is there any one thing that you require more than anything else, which we can help you to get?' The answer was: 'The one thing which we must have-not for its own sake, but for the security it offers for obtaining and retaining other reforms-is the franchise. No promise of reform, no reform itself, will be worth an hour's purchase unless we have the status of voters to make our influence felt. But, if you want the chief economic grievances, they are: the Netherlands Railway Concession, the dynamite monopoly, the liquor traffic, and native labour, which, together, const.i.tute an unwarrantable burden of indirect taxation on the industry of over two and a half millions sterling annually. We pet.i.tioned until we were jeered at; we agitated until we-well-came here [Pretoria Gaol]; and we know that we shall get no remedy until we have the vote to enforce it. We are not a political but a working community, and if we were honestly and capably governed the majority of us would be content to wait for the franchise for a considerable time yet in recognition of the peculiar circ.u.mstances, and of the feelings of the older inhabitants. That is the position in a nutsh.e.l.l.'

Netherlands Railway Company.

The Netherlands Railway Company is then a very important factor. It is unnecessary to go very fully into its history and the details of its administration. As the holder of an absolute monopoly, as the enterprise which has involved the State in its National Debt, and as the sole channel through which such money has been expended, the Company has gradually worked itself into the position of being the financial department of the State; and the functions which are elsewhere exercised by the heads of the Government belong here, in practice, entirely to this foreign corporation. Pet.i.tions for the cancellation of this concession were presented in 1888, when the progressive element in the first Volksraad consisted of one man-Mr. Loveday, one of the loyalists in the war. The agitation begun and carried on by him was taken up by others, but without further result than that of compelling the President to show his hand and step forward as the champion of the monopoly on every occasion on which it was a.s.sailed. During the years 1893-96 the President stoutly defended the Company in the Volksraad, and by his influence and the solid vote of his ignorant Dopper Party completely blocked all legislation tending to control the Company. Indeed at the end of the Session of 1895, on receiving representations from the business communities of the Republic as to the desirability of removing this incubus from the overtaxed people, the President stated plainly that the Netherlands Railway Concession was a matter of high politics and did not concern any but the burghers of the State, and that he would receive no representations from the Uitlanders on the subject nor would he permit them to discuss it.

Very shortly after the granting of this railway concession came the appointment of Dr. Leyds as State Attorney for the Republic, he having been recommended and pushed forward by the gentlemen in Holland to whom the concession had been granted. It is stated that he was sent out as the agent of the concessionaires in order to protect and advance their interests, although at the same time in the service of the Republic. It is only necessary to add that Mr. Beelaerts van Blokland, the Consul-General for the Republic in Holland, is the agent of the concessionaires in that country, and the accord with which these two gentlemen, as railway commissioners at their respective ends, have always acted becomes intelligible. Several of the vital conditions of the concession have been freely violated, the first being that a certain section of the line (Nelspruit) should be completed within four years. It was not completed for eight. The concession really became void several times during the years prior to 1890, but always found a stalwart champion in the President, who continued to defend the concessionaires for some two years after they had failed to get their capital subscribed. The Company was floated on June 21 1887 on the most peculiar terms, the capital of 166,666 being in 2,000 shares of 1,000 guilders, or 83 6s. 8d. each. The shares were subscribed for by the following groups:

German 819 shares, carrying 30 votes.

Hollander 581 " " 76 "

The Republic 600 " " 6 "

The trust-deed, which limited the Republic to 6 out of 112 votes, although it subscribed about one-third of the capital, and gave to the smallest holders, the Hollanders, twice as many votes as all the others put together, was pa.s.sed by Dr. Leyds, in his capacity of legal adviser of the Government, having previously been prepared by him in his other capacity. The sum of 124,000 appears to have been expended on construction ten months before any contract was given out for the same or any work begun, and fifteen months before any material was s.h.i.+pped.

The contract for the construction of the first sixty miles compels admiration, if only for its impudence. In the first place the contractors, Van Hattum and Co., were to build the line at a cost to be mutually agreed upon by them and the railway company, and they were to receive as remuneration 11 per cent. upon the amount of the specification. But should they exceed the contract price then the 11 per cent. was to be proportionately decreased by an arranged sliding scale, provided, however, that Van Hattum and Co. did not exceed the specification by more than 100 per cent., in which latter case the Company would have the right to cancel the contract. By this provision Messrs. Van Hattum and Co. could increase the cost by 100 per cent, provided they were willing to lose the 11 per cent. profit, leaving them a net gain of 89 per cent. They did not neglect the opportunity. Whole sections of earthworks cost 23,500 per mile, which should not have cost 8,000. Close upon a thousand Hollanders were brought out from Holland to work for a few months in each year on the line and then be sent back to Holland again at the expense of the Republic. In a country which abounded in stone the Komati Bridge was built of dressed stone which had been quarried and worked in Holland and exported some 7,000 miles by s.h.i.+p and rail.

These are a few instances out of many. The loss to the country through the financing was of course far greater than any manipulation of the construction could bring about. In the creating of overdrafts and the raising of loans very large sums indeed were handled. Three-quarters of a million in one case and a million in another offered opportunities which the Hollander-German gentlemen who were doing business for the country out of love for it (as was frequently urged on their behalf in the Volksraad) were quick to perceive. The 5 per cent. debentures issued to raise the latter sum were sold at 95 15s.; but the financiers deducted 5 commission from even this, so that the State has only benefited to the extent of 90 15s. This transaction was effected at a time when the State loan known as the Transvaal Fives-raised on exactly the same interest and precisely the same guarantee-was quoted at over par. What, however, was felt to be worse than any detail of finance was that this corporation of foreigners had gradually obtained complete control of the finances of the State, and through the railway system it practically dictated the relations with the other Governments in South Africa, by such measures for instance as the imposition of a charge of 8-1/2d. per ton per mile on goods travelling over their lines coming from the Cape Colony, whilst the other lines are favoured by a charge of less than half that. The burdens placed upon the mining industry by the excessive charges imposed for political purposes were, in the case of the poorer mines, ruinous. The right which the Company had to collect the Customs dues for account of the State, to retain them as security for the payment of interest on their shares and debentures, and to impose a charge for collection quite disproportionate to the cost, was another serious grievance. It was hopeless, however, to deal with the whole question. The Government had set its face against any reform in this quarter. It was not possible to obtain even ordinary working facilities such as any business corporation unprotected by an absolute monopoly would be bound to concede of its own accord, in order to catch a measure of trade.

The Government have the right, under the agreement with the Company, to take over the railway on certain conditions, of which the following are the most important:

(a) The Company shall receive one year's notice of the intention to take over.

(b) The Company shall receive twenty times the amount of the average of the last three years' dividends.

(c) The Company shall receive as a solatium for the unexpired period of the concession an amount equal to one per cent. of its nominal capital for each year up to the year of expiring (1915).

The Government can take over the Krugersdorp-Johannesburg-Boksburg Tramway against payment of the cost of construction.

If the Volksraad should not during this Session{08} decide to nationalize the railway no change can take place before 1898, so that the three years 1895 to 1897 would have to be taken as a basis and therefore the 6 per cent. for 1894, the only low dividend, would not come into the calculation. This would of course considerably increase the purchase price-e.g.,

1895 9 per cent.

1896 14 " (estimate), 1897 14 " "

-- Total 37 "

That is to say an average distribution of 12.33 per cent. for the three years. The purchase price would thus be:

12.33 X 20 = 246.66 per cent.

17 years' premium 17 "

------ Total 263.66 "

This has been clearly explained to the Volksraad but without avail, the President's influence on the other side being too strong. During the Session of 1895 it was made clear that agitation against the Company was as futile as beating the air. When the Hollander clique found that they could no longer convince the Boers as a whole of the soundness of their business and the genuineness of their aims, and when they failed to combat the arguments and exposures of their critics, they resorted to other tactics, and promulgated voluminous reports and statements of explanations which left the unfortunate Volksraad members absolutely stupefied where they had formerly only been confused.{09}

The following is taken from an article in the Johannesburg Mining Journal, dealing with the burdens imposed by the railway company upon the industry:

RAILWAY MONOPOLY.

This is another carefully designed burden upon the mines and country. The issued capital and loans of the Netherlands Company now total about 7,000,000, upon which an average interest of about 5-1/3 per cent.-guaranteed by the State-is paid, equal to 370,000 per annum. Naturally the bonds are at a high premium. The Company and its liabilities can be taken over by the State at a year's notice, and the necessary funds for this purpose can be raised at 3 per cent. An offer was recently made to the Government to consolidate this and other liabilities, but the National Bank, which is another concession, has the monopoly of all State loan business, and this circ.u.mstance effectually disposed of the proposal. At 3 per cent. a saving of 160,000 per annum would be made in this monopoly in interest alone. The value represented by the Custom dues on the Portuguese border we are not in a position to estimate, but roughly these collections and the 15 per cent. of the profits paid to the management and shareholders must, with other leakages, represent at least another 100,000 per annum, which should be saved the country. As the revenue of the corporation now exceeds 2,000,000 a year, of which only half is expended in working costs, the estimate we have taken does not err upon the side of extravagance. By its neglect of its duties towards the commercial and mining community enormous losses are involved. Thus, in the coal traffic, the rate-which is now to be somewhat reduced-has been 3d. per ton per mile. According to the returns of the Chamber of Mines, the coal production of the Transvaal for 1895 was 1,045,121 tons. This is carried an average distance of nearly thirty miles, but taking the distance at twenty-four miles the charges are 6s. per ton. At 1-1/2d. per ton per mile-three times as much as the Cape railways charge-a saving upon the coal rates of 3s. per ton would follow, equal to 150,000 per annum. Again, by the 'bagging' system, an additional cost of 2s. 3d. per ton is incurred-details of this item have been recently published in this paper-and if this monopoly were run upon ordinary business lines, a further saving of 110,000 would be made by carrying coal in bulk. The interest upon the amount required to construct the necessary sidings for handling the coal, and the tram-lines required to transport it to the mines, would be a mere fraction upon this amount; and as the coal trade in the course of a short time is likely to see a 50 per cent. increase, the estimate may be allowed to stand at this figure without deduction. No data are available to fix the amount of the tax laid upon the people generally by the vexatious delays and losses following upon inefficient railway administration, but the monthly meetings of the local Chamber of Commerce throw some light upon these phases of a monopolistic management. The savings to be made in dealing with the coal traffic must not be taken as exhausting all possible reforms; the particulars given as to this traffic only indicate and suggest the wide area covered by this monopoly, which hitherto has made but halting and feeble efforts to keep pace with the requirements of the public. Dealing as it does with the imports of the whole country, which now amount in value to 10,000,000, the figures we have given must serve merely to ill.u.s.trate its invertebrate methods of handling traffic, as well as its grasping greed in enforcing the rates fixed by the terms of its concession. Its forty miles of Rand steam tram-line and thirty-five miles of railway from the Vaal River, with some little a.s.sistance from the Delagoa line and Customs, brought in a revenue of about 1,250,000 in 1895. Now that the Natal line is opened the receipts will probably amount to nearly 3,000,000 per annum, all of which should swell the ordinary revenue of the country, instead of remaining in the hands of foreigners as a reservoir of wealth for indigent Hollanders to exploit. The total railway earnings of the Cape and Natal together over all their lines amounted to 3,916,566 in 1895, and the capital expenditure on railways by these colonies amounts to 26,000,000. The greater portion of these receipts come from the Rand trade, which is compelled to pay an additional 2,500,000, carrying charges to the Netherlands Company, which has 7,000,000 of capital. Thus, railway receipts in South Africa amount now to 7,000,000 per annum, of which the Rand contributes at least 5,000,000.