TOO MANY DIAMONDS

Nelson Evening Mail, Volume LXI, 4 February 1928, Page 5

TOO MANY DIAMONDS

CURIOUS < *POSITION De Beers, the' great South African diamond company, will not pay an interim dividend on its £2,726,285 of deferred shares this year, whereas a year ago 50 per cent, was paid. This decision was announced recently by Sir David Harris, president of the company, at the meeting- at Kimberley. The company, he said, met the situation created by tbe unrestricted production of diamonds on the alluvial fields bv reducing their deliveries of diamonds. The diggers, however, went gaily on, regardless of the consequences to which the industry, including themselves, owing to over-production, would be subject. If they were eliminated then there would be a reduction in the State revenue from De Beers of about £300.000. , . Sir David quoted figures showing that tbe average alluvial production before the discovery in the field was £1,854,550 yearly, whereas for the. year ended 31st 'October tbe production was £6,258.000.. Although De Beers were in a position to* pay a dividend, in view of the situation'the board had decided not to pay an interim dividend on the deferred shares Ibis year.