This astonishing division of votes which gave to the Transvaal Government 6 out of 112, although it subscribed one-third of the capital, and assured to the Hollanders twice as many votes as the other holders put together, although they only provided one-third of the capital, was the work of Dr. Leyds. The contract for the construction of the first 70 miles is not less surprising. Messrs. Van Hattum & Co. were to build the line, at a cost mutually to be agreed upon by them and the railway company; and they were to receive as remuneration 11 per cent. upon the amount of the specification. The 11 per cent. was to be proportionately decreased by a sliding scale so arranged that it disappeared by the time Van Hattum & Co. had exceeded the contract price by 100 per cent. Beyond that the company had the right to cancel the contract. From this it follows, that, by deciding to lose the 11 per cent., Messrs. Van Hattum could make a gain of 89 per cent. This they did, and whole sections of earthworks, which should not have cost £8,000 per mile, cost £23,000 instead. A thousand Hollanders were brought out to work on the line; and sent home again at the expense of the Government. In a country which abounded in stone, the Komati Bridge was built of dressed stone imported from Holland, with the cost of a transit of 7,000 miles.
4.—The Drift Question.
The Cape Colony Free State Railway ends at the Vaal River, 50 miles from Johannesburg. Thence goods are transmitted by the Netherlands Railway at a charge of 8-1/2d. per ton per mile, the rate being 3d. over the rest of the line.
In order to escape this rate manufacturers resorted to the use of ox-wagons; Mr. Krüger forbade them the drifts in order to compel the transit of goods by railway. This was another flagrant violation of Article 14 of the Convention of 1884, which called forth the intervention of Mr. Chamberlain. The indignation at the Cape was so great, that Mr. Chamberlain having asked the Cape Government, whether, in the event of war resulting, it would pay half the cost, and undertake the transport of the troops by the railways, the proposal was accepted by an Afrikander minister! Mr. Krüger yielded and re-opened the drifts.
5.—Methods of Exaction.
A reduction of £100,000 was made on the railway tariffs; but in July, 1897, the duties on corn and food-stuffs were increased by £200,000. At the end of 1898, a certain number of these were lessened, but not that on flour. A comparison of the list of duties between 1897 and the end of 1898 shows that they were increased on twenty-eight products, and decreased on four.
Coal travelling a distance of 25-1/2 miles, the charge made by the Netherlands Railway Co. is 4s. 5d., which is 8-1/2d. per ton per mile; while the Free State Railway only charges 5-3/4d. and the Natal line 3d.
The Company collects the customs dues for account of the State, as security for the payment of interest on their shares and debentures.
Dr. Kuyper is quite willing to admit that the "financial administration leaves something to be desired," but he adds that, "while at the Cape the taxes on produce are at the rate of 15 per cent., in the Transvaal they are only 10 per cent." But it is easy to see how, by means of railway tariffs and various combinations, due to the cunning of Mr. Krüger and his Hollander friends, it has been possible to enhance prices of every description.