The problem which a situation of the character described thrust upon Sir Alfred was easier to discuss than to solve. The League was a power so wide that it was almost impossible to get rid of its influence in the country. It was controlled by Rhodes, by De Beers, by the Chartered Company, by the members in both Houses who were affiliated to it, by all the great financial establishments throughout South Africa—with but a solitary exception—by the principal industrial and agricultural enterprises in the country. It comprised political men, landowners, doctors, merchants, ship-owners, practically all the colonists in Rhodesia, and most of the English residents of the Transvaal. It controlled elections, secured votes, disposed of important posts, and when it advised the Governor the Legislature had to take its remarks into consideration whether or not it approved of them. Under the regime of the days when the League was formed it had been able to develop itself with great facility, the dangers which lurked behind its encroachment on the privileges of the Crown not being suspected. But Sir Alfred Milner discovered the menace at once, and with the quiet firmness and the tact which he always displayed in everything that he undertook proceeded to cope with the organisation.
Sir Alfred soon found himself confronted by the irritation of Rhodes, who had relied on his support for the schemes which he had nursed in regard to the Transvaal. I must here explain the reason why Rhodes had thrown his glances toward the Rand. One must remember the peculiar conditions in which he was placed in being always surrounded by creatures whom he could only keep attached to his person and to his ambition by satisfying their greed for gold. When he had annexed Matabeleland it had been principally in the expectation that one would find there the rich gold-bearing strata said to exist in that region. Unfortunately, this hope proved a fallacious one. Although thousands of pounds were spent in sinking and research, the results obtained were of so insignificant a nature, and the quantity of ore extracted so entirely insufficient to justify systematic exploitation, that the adventurers had perforce to turn their attention toward other fields.
It was after this disillusion that the idea took hold of Rhodes, which he communicated to his friends, to acquire the gold fields of the Rand, and to transform the rich Transvaal into a region where the Chartered Company and the South African League would rule. Previous to this, if we are to believe President Kruger, Rhodes had tried to conclude an alliance with him, and once, upon his return from Beira to Cape Town, had stopped at Pretoria, where he paid a visit to the old Boer statesman.