The Transvaal Government maintains that this monopoly does not violate the freedom of labour, as it was established in the interest of the State, not in that of the concessionaires, and that the manufacture of dynamite is forbidden to the Boers as much as it is to foreigners.

Mr. Chamberlain in his despatch denies that the dynamite monopoly has been established in the interest of the State; and points out that even according to General Joubert, Vice-President of the Republic, this is really not a State monopoly but the monopoly of one, Lippert, because it is he who has derived the greatest profits from it.

The monopoly company has always failed to fulfil its engagements; the installation was to be completed in two-and-a-half years:  in October, 1896, the company was only able to produce 80,000 cases, the consumption at that time amounting to 200,000.  The commission of the Volksraad estimated that between 1897 and 1899 it would be necessary to import 430,000 cases in addition to the quantity produced by the company.  It is more to the company’s interest to import than to manufacture, since importation affords a profit of L2 per case, and to the State a duty of 5s.  Were dynamite imported by the State itself, the latter would realise about L860,000 instead of, as at present, L107,500, making a difference of at least about L752,500.

The price at which dynamite is sold is from 40s. to 45s. above its real value, from which excessive charge only certain individuals, living for the greater part in Europe, derive the benefit.  This fact is attested, not by the English, but by Mr. Philipp, State Director of the Manufacture of Explosives.  The Commission demanded that all dynamite should be manufactured by the State, and imposed a duty of 20s. per case on all imported dynamite.

These resolutions were passed by the Volksraad Commission in 1897; the monopoly has continued to exist, and in 1899 it was proposed to prolong it for a period of fifteen years.  On May 1st, 1898, it is true, the price was reduced by 10s.; the company giving up 5s., and the State renouncing the whole of the 5s. duty.  It had therefore no interest in maintaining the monopoly; 2s. of the net profits were still payable to it, it is true; but there are no public accounts.

By way of compensation new taxes were imposed by the Government.  Mr. Rouliot, President of the Chamber of Mines, in his speech, January 26th, 1899, put it thus:—­

“It is a burden borne by us on another shoulder, not a lightening of the burden.”

Allowing for the increased consumption of dynamite, it has been estimated that, even with a further reduction of 5s. per case, the annual burden imposed upon the industry by the monopoly would, at the end of the period, amount to from L687,500 to L825,000.  The Transvaal Government in its reply of March 9th, 1899, did not dispute these figures, but stated simply that, “the government had the right to judge what was most advantageous to itself.”