AMERICAN INTERESTS IN SOUTH AFRICA
An idea of the nature and extent of American enterprise in South Africa
might be deduced from the one example of a Boston book agent, who made a
competency by selling albums of United States scenery to the negroes
along the shores of the Umkomaas River, near Zululand. The book agent
is not an incongruity of the activity of Americans in that part of the
continent, but an example rather of the diversified nature of the
influences which owe their origin to the nation of Yankees ten thousand
miles distant. The United States of America have had a deeper influence
upon South Africa than that which pertains to commerce and trade. The
progress, growth, and prosperity of the American States have instilled
in the minds of the majority of South Africans a desire to be free from
European control, and to be united under a single banner, which is to
bear the insignia of the United States of South Africa.
In public, editors and speechmakers in Cape Colony, Natal, and the
Transvaal spend hours in deploring the progress of Americanisms in South
Africa, but in their clubs and libraries they study and discuss the
causes which led to America's progress and pre-eminence, and form plans
by which they may be able to attain the same desirable ends. The
influence and example of the United States are not theoretical; they are
political factors which are felt in the discussion of every public
question and in the results of every election. The practical results of
American influence in South Africa may now be observed only in the
increasing exports to that country, but perhaps in another generation a
greater and better demonstration will be found in a constitution which
unites all the South African states under one independent government.
If any corroboration of this sentiment were necessary, a statement made
by the man who is leader of the ruling party in Cape Colony would be
ample.
"If we want an example of the highest type of freedom," said W. P.
Schreiner, the present Premier of Cape Colony, "we must look to the
United States of America."[#]
[#] Americans' Fourth of July Banquet, Cape Town, 1897.
American influences are felt in all phases of South African life, be
they social, commercial, religious, political, or retrogressive.
Whether it be the American book agent on the banks of the Umkomaas, or
the American consul-general in the governor's mansion at Cape Town, his
indomitable energy, his breezy indifference to apparently insurmountable
difficulties, and his boundless resources will always secure for him
those material benefits for which men of other nationalities can do no
more than hope. Some of his rivals call it perverseness, callousness,
trickery, treachery, and what not; his admirers might ascribe his
success to energy, pluck, modern methods, or to that quality best
described by that Americanism--"hustling."
American commercial interests in South Africa are of such recent growth,
and already of such great proportions, that the other nations who have
been interested in the trade for many years are not only astounded, but
are fearful that the United States will soon be the controlling spirit
in the country's commercial affairs. The enterprise of American
business firms, and their ability to undersell almost all the other
firms represented in the country, have given an enormous impetus to the
export trade with South African countries. Systematic efforts have been
made by American firms to work the South African markets on an extensive
scale, and so successful have the efforts been that the value of exports
to that country has several times been more than doubled in a single
year.
Five years ago America's share of the business of South Africa was
practically infinitesimal; to-day the United States hold second place in
the list of nations which have trade relations with that country, having
outranked Germany, France, Belgium, Holland, and Italy. In several
branches of trade America surpasses even England, which has always had
all the trade advantages owing to the supremacy of her flag over the
greater part of the country. That the British merchants are keenly alive
to the situation which threatens to transfer the trade supremacy into
American hands has been amply demonstrated by the efforts which they
have made to check the inroads the Americans are making on their field,
and by the appointment of committees to investigate the causes of the
decline of British commerce.
American enterprise shows itself by the scores of representatives of
American business houses who are constantly travelling through the
country, either to secure orders or to investigate the field with a view
of entering into competition with the firms of other nations. Fifteen
American commercial travellers, representing as many different firms,
were registered at the Grand Hotel, Cape Town, at one time a year ago,
and that all had secured exceptionally heavy orders indicated that the
innovation in the method of working trade was successful.
The laws of the country are unfavourable in no slight degree to the
foreign commercial travellers, who are obliged to pay heavy licenses
before they are permitted to enter upon any business negotiations. The
tax in the Transvaal and Natal is $48.66, and in the Orange Free State
and Cape Colony it amounts to $121.66. If an American agent wishes to
make a tour of all the states and colonies of the country, he is obliged
to pay almost three hundred and fifty dollars in license fees.
The great superiority of certain American manufactured products is such
that other nations are unable to compete in those lines after the
American products have been introduced. Especially is this true of
American machinery, which can not be equalled by that of any other
country. Almost every one of the hundreds of extensive gold mines on
the Randt is fitted out wholly or in part with American machinery, and,
at the present rate of increase in the use of it, it will be less than
ten years when none other than United States machinery will be sent to
that district. In visiting the great mines the uninitiated American is
astonished to find that engines, crushing machinery, and even the
electric lights which illuminate them, bear the name plates of New York,
Philadelphia, and Chicago firms.
The Kimberley diamond mines, which are among the most extensive and most
elaborate underground works in the world, use American-made machinery
almost exclusively, not only because it is much less costly, but because
no other country can furnish apparatus that will give as good results.
Almost every pound of electrical machinery in use in the country was
made in America and was instituted by American workmen.
Instances of successful American electrical enterprises are afforded by
the Cape Town, Port Elizabeth, and Pretoria street railways, almost
every rail, wire, and car of which bears the marks of American
manufacture. It is a marvellous revelation to find Philadelphia-made
electric cars in the streets of Cape Town, condensing engines from New
York State in Port Elizabeth, and Pittsburg generators and switchboards
in the capital of the Transvaal, which less than fifty years ago was
under the dominion of savages. Not only did Americans install the
street railways, but they also secured the desirable concessions for
operating the lines for a stated period. American electricians operate
the plants, and in not a few instances have financially embarrassed
Americans received a new financial impetus by acting in the capacities
of motormen and conductors.
One street car in Cape Town was for a long time distinguished because of
its many American features. The Philadelphia-made car was propelled
over Pittsburg tracks by means of the power passing through Wilkesbarre
wires, and the human agencies that controlled it were a Boston motorman
and a San Francisco conductor. It might not be pursuing the subject too
far to add that of the twelve passengers in the car on a certain journey
ten were Americans, representing eight different States.
One of the first railroads in South Africa--that which leads from
Lorenzo Marques to the Transvaal border--was built by an American, a Mr.
Murdock, while American material entered largely into the construction
of the more extensive roads from the coast to the interior. American
rails are more quickly and more cheaply[#] obtainable in South Africa
than those of English make, but the influence which is exerted against
the use of other than British rails prevents their universal adoption.
Notwithstanding the efforts of the influential Englishmen to secure
British manufactures wherever and whenever possible, American firms have
recently secured the contracts for forty thousand tons of steel rails
for the Cape Colony Railway system, and the prospects are that more
orders of a similar nature will be forthcoming.
[#] "But the other day we gave an order for two hundred and fifty miles
of rails. We had a large number of tenders, and the lowest tender, you
may be sorry to hear, was sent by an American, Mr. Carnegie.
Fortunately, however, the tender was not in order, and we were therefore
able to give the work to our own people. It may be said that this
American tender was a question of workmen and strikes."--Cecil J.
Rhodes, at a meeting of the stockholders of the Cape-Cairo Railway,
London, May 2, 1899.
It is not in the sale of steel rails alone that the American
manufacturer is forging ahead of his competitors in South Africa.
American manufactured wares of all kinds are in demand, and in many
instances they are leaders in the market. Especially true is this of
American agricultural implements, which are so much more adaptable to
the soil and much cheaper than any other make. Small stores in the
farming communities of Natal and Cape Colony sell American ploughshares,
spades, forks, rakes, and hoes almost exclusively, and it amazes the
traveller to find that almost every plough and reaper used by the more
progressive agriculturists bears the imprint "Made in the United
States."
It is a strange fact that, although South Africa has vast areas covered
with heavy timber, almost all the lumber used in the mining districts is
transported thither from Puget Sound. The native timber being unsuited
for underground purposes and difficult of access, all the mine owners
are obliged to import every foot of wood used in constructing surface
and underground works of their mines, and at great expense, for to the
original cost of the timber is added the charges arising from the sea
and land transportation, import duties, and handling. The docks at Cape
Town almost all the year round contain one or more lumber vessels from
Puget Sound, and upon several occasions five such vessels were being
unloaded at the same time.
American coal, too, has secured a foothold in South Africa, a sample
cargo of three thousand tons having been despatched thither at the
beginning of the year. Coal of good quality is found in several parts
of the Transvaal and Natal, but progress in the development of the mines
has been so slow that almost the total demand is supplied by Wales.
Cape Colony has an extensive petroleum field, but it is in the hands of
concessionaires, who, for reasons of their own, refuse to develop it.
American and Russian petroleums are used exclusively, but the former is
preferred, and is rapidly crowding the other out of the market.
Among the many other articles of export to South Africa are flour, corn,
butter, potatoes, canned meats, and vegetables--all of which might be
produced in the country if South Africans took advantage of the
opportunities offered by soil and Nature. American live stock has been
introduced into the country since the rinderpest disease destroyed
almost all of the native cattle, and with such successful results that
several Western firms have established branches in Cape Town, and are
sending thither large cargoes of mules, horses, cattle, and sheep.
Cecil J. Rhodes has recently stocked his immense Rhodesian farm with
American live stock, and, as his example is generally followed
throughout the country, a decided increase in the live-stock export
trade is anticipated.
Statistics only can give an adequate idea of American trade with South
Africa; but even these are not reliable, for the reason that a large
percentage of the exports sent to the country are ordered through London
firms, and consequently do not appear in the official figures. As a
criterion of what the trade amounts to, it will only be necessary to
quote a few statistics, which, however, do not represent the true totals
for the reason given. The estimated value of the exports and the
percentage increase of each year's business over that of the preceding
year is given, in order that a true idea of the growth of American trade
with South Africa may be formed:
YEAR. Value. Per cent
increase.
1895 $5,000,000
1896 12,000,000 140
1897 16,000,000 33 1/8
1898 (estimated) 20,000,000 25
A fact that is deplored by Americans who are eager to see their country
in the van in all things pertaining to trade is that almost every
dollar's worth of this vast amount of material is carried to South
Africa in ships sailing under foreign colours. Three lines of
steamships, having weekly sailings, ply between the two countries, and
are always laden to the rails with American goods, but the American flag
is carried by none of them. A fourth line of steamships, to ply between
Philadelphia and Cape Town, is about to be established under American
auspices, and is to carry the American flag. A number of small American
sailing vessels trade between the two countries, but their total
capacity is so small as to be almost insignificant when compared with
the great volume carried in foreign bottoms.
The American imports from South Africa are of far less value than the
exports, for the reason that the country produces only a few articles
that are not consumed where they originate. America is the best market
in the world for diamonds, and about one fourth of the annual output of
the Kimberley mines reaches the United States. Hides and tallow
constitute the leading exportations to America, while aloes and ostrich
feathers are chief among the few other products sent here. Owing to this
lack of exports, ships going to South Africa are obliged to proceed to
India or Australia for return cargoes in order to reduce the expenses of
the voyage.
However great the commercial interests of the United States in South
Africa, they are small in comparison with the work of individual
Americans, who have been active in the development of that country
during the last quarter of a century. Wherever great enterprises have
been inaugurated, Americans have been prominently identified with their
growth and development, and in not a few instances has the success of
the ventures been wholly due to American leadership. European capital
is the foundation of all the great South African institutions, but it is
to American skill that almost all of them owe the success which they
have attained.
British and continental capitalists have recognised the superiority of
American methods by intrusting the management of almost every large mine
and industry to men who were born and received their training in the
United States. It is an expression not infrequently heard when the
success of a South African enterprise is being discussed, "Who is the
Yankee?" The reason of this is involved in the fact that almost all the
Americans who went to South Africa after the discovery of gold had been
well fitted by their experiences in the California and Colorado mining
fields for the work which they were called upon to do on the Randt, and,
owing to their ability, were able to compete successfully with the men
from other countries who were not so skilled.
Unfortunately, not all the Americans in South Africa have been a credit
to their native country, and there is a considerable class which has
created for itself an unenviable reputation. The component parts of
this class are men who, by reason of criminal acts, were obliged to
leave America for new fields of endeavour, and non-professional men who
follow gold booms in all parts of the world and trust to circumstances
for a livelihood. In the early days of the Johannesburg gold fields
these men oftentimes resorted to desperate means, with the result that
almost every criminal act of an unusually daring description is now
credited against them by the orderly inhabitants. Highwaymen,
pickpockets, illicit gold buyers, confidence men, and even train-robbers
were active, and for several years served to discredit the entire
American colony. Since the first gold excitement has subsided, this
class of Americans, in which was also included by the residents all the
other criminal characters of whatever nationality, has been compelled to
leave the country, and to-day the American colony in Johannesburg
numbers about three thousand of the most respected citizens of the city.
The American who has been most prominent in South African affairs, and
the stanchest supporter of American interests in that country, is
Gardner F. Williams, the general manager and one of the alternate life
governors of the De Beers Consolidated Diamond Mines at Kimberley. A
native of Michigan, Mr. Williams gained his mining experience in the
mining districts of California and other Western States, and went to
South Africa in 1887 to take charge of the Kimberley mines, which were
then in an almost chaotic condition. By the application of American
ideas, Mr. Williams succeeded in making of the mines a property which
yields an annual profit of about ten million dollars on a nominal
capital of twice that amount. He has introduced American machinery into
the mines, and has been instrumental in many other ways in advancing the
interests of his native country. Although Mr. Williams receives a salary
twice as great as that of the President of the United States, he is
proud to be the American consular agent at Kimberley--an office which
does not carry with it sufficient revenue to provide the star-spangled
banner which constantly floats from a staff in front of his residence.
Dr. J. Perrott Prince is another American who has assisted materially in
extending American interests in South Africa, and it is due to his own
unselfish efforts that the commerce of the United States with the port
of Durban has risen from insignificant volume to its present size. Dr.
Prince was a surgeon in the Union army during the civil war, and
afterward was one of the first Americans to go to the Kimberley diamond
fields. He it was who later induced Dr. Leander Starr Jameson to
accompany him to Kimberley in the capacity of assistant surgeon--a
service which he performed with great distinction until Mr. Rhodes sent
him into Matabeleland to take charge of the military forces, which later
he led into the Transvaal.
Dr. Prince's renown as a physician was responsible for a call to
Madagascar, whither he was summoned by Queen Ranavalo. He remained in
Madagascar as the queen's physician until the French took forcible
possession of the island and sent the queen into exile on the Reunion
Islands. Dr. Prince has lived in Durban, Natal, for several years, and
during the greater part of that time conducted the office of American
consular agent at a financial loss to himself. Unfortunately, Dr.
Prince was obliged to end his connection with the consular service, and
the United States are now represented in Durban by a foreigner, who on
the last Fourth of July inquired why all the Americans in the city were
making such elaborate displays of bunting and the Stars and Stripes.
The consular agent at Johannesburg is John C. Manion, of Herkimer, N.Y.,
who represents a large American machinery company. Mr. Manion, in 1896,
carried on the negotiations with the Transvaal Government by which John
Hays Hammond, an American mining engineer, was released from the
Pretoria prison, where he had been confined for complicity in the
uprising at Johannesburg. American machinery valued at several million
dollars has been sent to South Africa as the result of Mr. Manion's
efforts.
In the gold industry on the Randt, Americans have been specially active,
and it is due to one of them, J. S. Curtis, that the deep-level mines
were discovered. In South Africa a mining claim extends only a
specified distance below the surface of the earth, and the Governments
do not allow claim-owners to dig beyond that depth. Mr. Curtis found
that paying reefs existed below the specified depth, and the result was
that the Government sold the underground or deep-level claims with great
profit to itself and the mining community.
The consulting engineers of almost all the mines of any importance in
the country are Americans, and their salaries range from ten thousand to
one hundred thousand dollars a year. John Hays Hammond, who was one of
the first American engineers to reach the gold fields, was official
mining engineer for the Transvaal Government, and received a yearly
salary of twenty-five thousand dollars for formulating the mining laws
of the country. He resigned that office, and is now the consulting
engineer for the British South Africa Company in Rhodesia and several
gold mines on the Randt, at salaries which aggregate almost one hundred
thousand dollars a year. Among the scores of other American engineers on
the Randt are L. I. Seymour, who has control of the thirty-six shafts of
the Randt Mines; Captain Malan, of the Robinson mines; and H. S. Watson,
of the Simmer en Jack mines, in developing which more than ten million
dollars have been spent.
Another American introduced the system of treating the abandoned
tailings of the mines by the cyanide process, whereby thousands of
ounces of gold have been abstracted from the offal of the mills, which
had formerly been considered valueless. Others have revolutionized
different parts of the management of the mines, and in many instances
have taken abandoned properties and placed them on a paying basis. It
would not be fair to claim that American ingenuity and skill are
responsible for the entire success of the Randt gold mines, but it is
indisputable that Americans have done more toward it than the combined
representatives of all other nations.
Every line of business on the Randt has its American representatives,
and almost without exception the firms who sent them thither chose able
men. W. E. Parks, of Chicago, represents Frazer & Chalmers, whose
machinery is in scores of the mines. His assistant is W. H. Haig, of
New York city.
The American Trading and Importing Company, with its headquarters in
Johannesburg, and branches in every city and town in the country, deals
exclusively in American manufactured products, and annually sells
immense quantities of bicycles, stoves, beer, carriages, and other
goods, ranging from pins to pianos.
Americans do not confine their endeavours to commercial enterprises, and
they may be found conducting missionary work among the Matabeles and
Mashonas, as well as building dams in Rhodesia. American missionaries
are very active in all parts of South Africa, and because of the
practical methods by which they endeavour to civilize and Christianize
the natives they have the reputation throughout the country of being
more successful than those who go there from any other country. In the
Rhodesian country Mr. Rhodes has given many contributions of land and
money to the American missionaries, and has on several occasions
complimented them by pronouncing their achievements unparalleled.
A practical illustration will demonstrate the causes of the success of
the American missionary. An English missionary spent the first two
years after his arrival in the country in studying the natives' language
and in building a house for himself. In that time he had made no
converts. An American missionary arrived at almost the same time,
rented a hut, and hired interpreters. At the end of two years he had
one hundred and fifty converts, many more natives who were learning
useful occupations and trades, and had sent home a request for more
missionaries with which to extend his field.
It is rather remarkable that the scouts who assisted in subduing the
American Indians should later be found on the African continent to
assist in the extermination of the blacks. In the Matabele and Mashona
campaigns of three years ago, Americans who scouted for Custer and Miles
on the Western plains were invaluable adjuncts to the British forces,
and in many instances did heroic work in finding the location of the
enemy and in making way for the American Maxim guns that were used in
the campaigns.
The Americans in South Africa, although only about ten thousand in
number, have been of invaluable service to the land. They have taught
the farmers to farm, the miners to dig gold, and the statesmen to
govern. Their work has been a credit to the country which they continue
to revere, and whose flag they raise upon every proper occasion. They
have taken little part in the political disturbances of the Transvaal,
because they believe that the citizens of a republic should be allowed
to conduct its government according to their own idea of right and
justice, independently of the demands of those who are not citizens.