It is no easy matter to fully trace why the cause of this wild desire for speculation seized upon the community. It has often been stated that it was simply an endeavor on the part of interested persons on the diamond fields to defraud the outside public and get rid of their worthless property. This, however, was not the case, although it must be admitted that in many instances the actions of promoters of companies were far from honorable. A more feasible answer to the question will be found in the fact that for some time past there had existed in Kimberley, companies which, although registered under the limited liability act, were of a semi-private nature; for instance, the “Compagnie Française” (French Diamond Mining Company) and the Cape Diamond Mining Company, both of which had been formed in 1879, some three years after the “ten claim clause” had been abolished. These undertakings were believed to be most successful, and the general public on the Fields were eager to participate in the profits of similar enterprises. When this desire became apparent there were many claim-holders who were desirous of realizing some ready money, or paying off some existing mortgage, by the sale of a share in their diamond operations, and hence the creation of new joint-stock undertakings. That the first companies on the Fields, the British and Central, were formed with a most legitimate object, it is quite impossible to deny, and the reason for their formation is most easily to be seen. As the mine attained a greater depth, the expenses of working naturally became larger; elaborate machinery had to be erected, and more European labor was therefore required. Under such circumstances it is not strange that many diggers found it to their advantage to amalgamate with their neighbors; moreover, it often occurred that those who formerly had been actively employed in the mine were desirous of entering into other pursuits, and yet were not willing to abandon all interest in digging operations; consequently the formation of joint-stock companies naturally suggested itself as a convenient way of meeting the requirements of the case. It was under such circumstances that the first companies in Kimberley were formed. The shares in these undertakings very seldom passed out of the hands of the original holders and the system gave every promise of success; it is true that there were prophets of evil, who were ready even in those days to declare that this step was one on the road to ruin, so far as the prosperity of Kimberley was concerned, yet for a time the results of these companies in most cases proved to be unmistakably satisfactory, and it was this _bona fide_ success which encouraged the promotion of numerous other schemes which were shortly afterward introduced.