The scope and value of this grant were made manifest when the now notorious sewerage concession came under discussion. The Municipality had upon several occasions endeavoured to get the right to introduce a scheme for the disposal of the sewage of the town, and had applied for authority to raise the necessary funds, but had been refused. Suddenly a concession was granted by the Government—they called it a contract—to Mr. Emmanuel Mendelssohn, the proprietor of the Standard and Diggers News, the Government organ in Johannesburg. He said that he got it for nothing—possibly a reward for loyal services; but he also stated that he was not the sole owner. The value of the grant was estimated by the concessionaire himself to be about £1,000,000 sterling, and in the lately published proposals which he made to one of the big firms interested in the Transvaal he indicated how a profit of £100,000 a year could be made out of it. The Town Council unanimously and vigorously protested; but the Government took no notice of their protest. They then decided to apply to the Court for an order restraining the Government from making this grant, on the ground that they had no power to alienate a right which belonged to the town itself. In order to make the application to Court it was necessary, in terms of the constitution of the municipality, to obtain the signature of the Burgomaster. That official as representing the Government refused point blank to authorize the council to dispute the Government's action in a Court of Law, and the council were obliged to apply for an Order of Court compelling the Burgomaster to sign the documents necessary to enable them to contest in the Courts of the country the validity of an act of the Government which was deemed to be infringement upon the rights of the town. In the face of this the President capitulated for the time being; but neither he nor the concessionaire makes any secret of the determination to find a quid pro quo.
The year 1898 brought in its turn its full share of fresh encroachments and exactions. The bare enumeration of the concessions, privileges, and contracts, proposed or agreed to, is sufficient to indicate what must be the condition of mind of one whose interests are at stake under such a régime. Not all 'concessions,' 'contracts,' and 'protected factories' confer exclusive rights, but many might easily in effect do so and all are infringements upon the rights of the public. Here are some from the official list of 1899;—Dynamite, Railways, Spirits, Iron, Sugar, Wool, Bricks, Earthenware, Paper, Candles, Soap, Calcium Carbide, Oil, Matches, Cocoa, Bottles, Jam, &c.
A large loan had been constantly talked of throughout the year, but no one knew for what purpose it could be required. The Government vouchsafed no information at all but negotiations were carried on both in Pretoria and in Europe. Month after month went by, but the millions were not forthcoming, and the Government believed or affected to believe that their failure was due to a conspiracy among the capitalists, and in retaliation they directed and subsidised a fierce anti-capitalist campaign in their press. The explanation of failure, which did not occur to them, may have been that investors believed that the course pursued by the Transvaal Government must inevitably lead to conflict with the paramount power, and they had no faith and no assurance that in the event of such a conflict taking place the British Government would take over loans which must have been contracted only for the purposes of war against England.
The juggling with the dynamite question continued throughout the year. The President had successfully defeated the aim of the Volksraad, and the investigation and reports which had been ordered by that body in 1897 to be made by lawyers and auditors, although duly handed into the Government, were suppressed by the President and not permitted to be shown to the Raad. On the contrary, the astounding proposition was made that in return for a very inconsiderable reduction in the cost of dynamite (half of which was to be made up by the Government sacrificing its share of profits) and a possible further reduction of 5s. per case under certain conditions, the monopoly should be renewed for a period of fifteen years, all breaches in the past to be condoned, and cancellation on the ground of breach of contract in the future to be impossible. This proposal, it was publicly notified, would be laid before the Raad during the first session of 1899. The existence of the dynamite monopoly was at this time costing the industry £600,000 a year, and on every possible occasion it was represented to the Government that, if they really did need further revenue, in no way could it be more easily or more properly raised than by exercising their undoubted right to cancel the monopoly and by imposing a duty of such amount as might be deemed necessary upon imported dynamite. It was also pointed out that the proposed reduction in the cost of dynamite would offer no relief whatever since it was far more than counterbalanced by the taxes upon mynpachts and profits which were then being imposed.
During this year the Volksraad instructed the Government to enforce their right to collect 2-1/2 per cent. of the gross production from mynpachts (mining leases). All mynpachts titles granted by the Government contained a clause giving the Government this power, so that they were acting strictly within their legal rights; but the right had never before been exercised. For twelve years investors had been allowed to frame their estimates of profit upon a certain basis, and suddenly without a day's warning this tax was sprung upon them. It was indisputably the right of the Government, but equally indisputably was it most unwise; both because of the manner in which it was done and because there was no necessity whatever for the doing of it, as the revenue of the country was already greatly in excess of the legitimate requirements. Immediately following this came a resolution to impose a tax of 5 per cent. upon the profits of all companies working mining ground other than that covered by mynpacht. The same objections applied to this tax with the additional one, that no clause existed in the titles indicating that it could be done and no warning had ever been given that it would be done. The proposal was introduced one morning and adopted at once; the first notice to investors was the accomplished fact. These measures were particularly keenly resented in France and Germany.
The grievance of hasty legislation was in these cases aggravated by the evidence that the taxes were quite unnecessary. President Kruger still fought against cancellation of the Dynamite Monopoly, by which the State revenue would have benefited to the extent of £600,000 a year, if he had accepted the proposal of the Uitlanders, to allow importation of dynamite subject to a duty of £2 per case—a tax which represented the monopolists' profit, and would not therefore have increased the cost of the article to the mines. He still persisted in squandering and misapplying the public funds. He still openly followed the policy of satisfying his burghers at the Uitlanders' expense; but the burghers have a growing appetite, and nothing shows the headlong policy of 'squaring'—nothing better illustrates the Uitlanders' grievance of reckless extravagance in administration—than the list of fixed salaries as it has grown year by year since the goldfields became a factor.
TRANSVAAL FIXED SALARIES.
£ s. d.
1886 51,831 3 7
1887 99,083 12 8
1888 164,466 4 10
1889 249,641 10 10
1890 324,520 8 10
1891 332,888 13 9
1892 323,608 0 0
1893 361,275 6 11
1894 419,775 13 10
1895 570,047 12 7
1896 813,029 7 5
1897 996,959 19 11
1898 1,080,382 3 0
1899 (Budget) 1,216,394 5 0
That is to say, the Salary List is now twenty-four times as great as it was when the Uitlanders began to come in in numbers. It amounts to nearly five times as much as the total revenue amounted to then. It is now sufficient if equally distributed to pay £40 per head per annum to the total male Boer population.
The liquor curse has grown to such dimensions and the illicit liquor organization has secured such a firm hold that even the stoutest champions of law and order doubt at times whether it will ever be possible to combat the evil. The facts of the case reflect more unfavourably upon the President than perhaps any other single thing. These are the facts: The law prohibits the sale of liquor to natives; yet from a fifth to a third of the natives on the Rand are habitually drunk. The fault rests with a corrupt and incompetent administration. That administration is in the hands of the President's relations and personal following. The remedy urged by the State Secretary, State Attorney, some members of the Executive, the general public, and the united petition of all the ministers of religion in the country, is to entrust the administration to the State Attorney's department and to maintain the existing law. In the face of this President Kruger has fought hard to have the total prohibition law abolished and has successfully maintained his nepotism—to apply no worse construction! In replying to a deputation of liquor dealers he denounced the existing law as an 'immoral' one, because by restricting the sale of liquor it deprived a number of honest people of their livelihood—and President Kruger is a total abstainer!
The effect of this liquor trade is indescribable; the loss in money although enormous is a minor consideration compared with the crimes committed and the accidents in the mines traceable to it; and the effect upon the native character is simply appalling.