Transvaal (South Africa) -- History; Transvaal (South Africa) -- Politics and government
On October 13th, 1893, the Transvaal Government granted a monopoly of
the dynamite trade to Mr. L.G. Vorstman for a period of 15 years. The
price of No. 1 dynamite was fixed at L4 15s. per case, of which 5s. was
to be paid to the Government.
The Transvaal Government maintains that this monopoly does not violate
the freedom of labour, as it was established in the interest of the
State, not in that of the concessionaires, and that the manufacture of
dynamite is forbidden to the Boers as much as it is to foreigners.
Mr. Chamberlain in his despatch denies that the dynamite monopoly has
been established in the interest of the State; and points out that even
according to General Joubert, Vice-President of the Republic, this is
really not a State monopoly but the monopoly of one, Lippert, because it
is he who has derived the greatest profits from it.
The monopoly company has always failed to fulfil its engagements; the
installation was to be completed in two-and-a-half years: in October,
1896, the company was only able to produce 80,000 cases, the
consumption at that time amounting to 200,000. The commission of the
Volksraad estimated that between 1897 and 1899 it would be necessary to
import 430,000 cases in addition to the quantity produced by the
company. It is more to the company's interest to import than to
manufacture, since importation affords a profit of L2 per case, and to
the State a duty of 5s. Were dynamite imported by the State itself, the
latter would realise about L860,000 instead of, as at present, L107,500,
making a difference of at least about L752,500.
The price at which dynamite is sold is from 40s. to 45s. above its real
value, from which excessive charge only certain individuals, living for
the greater part in Europe, derive the benefit. This fact is attested,
not by the English, but by Mr. Philipp, State Director of the
Manufacture of Explosives. The Commission demanded that all dynamite
should be manufactured by the State, and imposed a duty of 20s. per case
on all imported dynamite.
These resolutions were passed by the Volksraad Commission in 1897; the
monopoly has continued to exist, and in 1899 it was proposed to prolong
it for a period of fifteen years. On May 1st, 1898, it is true, the
price was reduced by 10s.; the company giving up 5s., and the State
renouncing the whole of the 5s. duty. It had therefore no interest in
maintaining the monopoly; 2s. of the net profits were still payable to
it, it is true; but there are no public accounts.
By way of compensation new taxes were imposed by the Government. Mr.
Rouliot, President of the Chamber of Mines, in his speech, January
26th, 1899, put it thus:--
"It is a burden borne by us on another shoulder, not a lightening of the
burden."
Public-domain text, read in full here on John Shaqi.
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