Sound Diamonds

Reports of the 1929 diamond industry last week included the following facts: world diamond production was 7,348,000 carats, estimated at $72,960,000 (3% less than the 1928 output); the U. S. purchases 80% of all cut diamonds; 50% of diamonds consumed in the U. S. are smuggled; the per capita wealth of diamonds in the average U. S. family is more than $200; there was no overproduction last year. "The industry," opined Manhattan Mining Engineer Sydney H. Ball, "is sound."

Diamond men reviewing these statistics last week had every reason to be well pleased. Of these none should have been more so than Solomon ("Solly") Barnato Joel, ringleader and probably richest of the tycoons who form the Diamond Syndicate which, as everyone knows, controls the price and production of almost all the world's diamonds. But though Solly Joel may well have rejoiced in his 1929 profits he could not have forgotten that less than a month ago his Diamond Syndicate was ordered by the British Government to pay -L-350,000 to a suing company. No matter how rich the profits of the Syndicate, the payment of -L-350,000 must have soured rejoicing.

The suing company was United Diamond Fields of British Guiana, Ltd., which charged that in common with all other diamond companies it had agreed to sell only to the Syndicate, that because of newly discovered fields the Syndicate had so lowered the price paid United Diamonds that the company was ruined. Included among the accusations was a charge of fraud. Settlement of the suit announced last month from the King's Bench awarded United Diamonds -L-325,000 plus -L-25,000 cost. Although the fraud charge was withdrawn, awarding of the sum to United Diamonds was tantamount to admitting that fraud did exist. It could not cheer Solomon Joel to believe that the British Government harbored such a suspicion and was furthermore quite prepared to act upon it.

Most picturesque of diamond tycoons is Solly Joel. He and his two brothers, Jack and Woolf, left London's Petticoat Lane (now officially known as Middlesex Street) some 50 years ago, went diamond hunting in South Africa. Their maternal uncles, Harry and Barney Barnato had preceded them, had somehow garnered a few thousand pounds, bought some claims at Kimberley. Shortly thereafter the Barnatos and the Joels found themselves in the eclectic company of world's richest men. In 1884 Brother Jack was involved in the Illicit Buying Case, jumped bail in South Africa, returned to England where he has lived ever since. In 1898 Brother Woolf was shot and killed by a German adventurer, one von Woltheim.

In England, Solly and Jack are best known for their racing stables. Among their prize horses have been Prince Palatine (bought for -L-40,000), Sunstar, Humorist. Of Solly's children, Doris eloped with a chauffeur, Stanhope secretly married a U. S. citizen, one Gladys MacFordon. another son died bankrupt at sea. Still unmarried and living with him is 22-year-old daughter Eileen for whom his yacht the Eileen, once the Doris, is named. Solly spends most of his time in England in his London office on Austin Friars. At least once a year, however, he visits Capetown. Huge is his wealth but no man has ever publicly estimated it.

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