Diamond Cut Diamond

Nobody had told young Isidore W. Schlesinger, when he ran away from his New York home at the age of 18, that there were no cannibals in South Africa, so he had to become a businessman. In 40 years he acquired all the theatres, cinemas, broadcasting facilities in South Africa and a large share of its minerals, shipping, banks, timber, fruit, insurance, transportation and real estate. Last week he edged his way into the world's most famed monopoly: Diamonds.

Last week Depression forced De Beers Consolidated Mines, Ltd., to close its diamond mines. Chief unit of the South African diamond syndicate, De Beers closed with the understanding that other mines would follow. But a favorite child of South Africa's government is its diamond-cutting factory at Kimberley. On the heels of the first announcement came news that the government had contracted with I. W. Schlesinger to operate this factory and other smaller ones. Price charged by I. W. Schlesinger was permission to work diamonds in his extensive holdings in Namaqualand. Before the syndicate was the prospect of direct competition which would defeat its efforts to keep the diamond prices up, might force it into a price-cutting war that would permit many an O'Grady to buy a stickpin and look like a cinemagnate.

About 50 years ago one Abraham Schlesinger, importing & exporting merchant, started a private banking firm on Manhattan's lower East Side. The firm was called A. Schlesinger & Son. Son was named Samuel. Unnamed in the firm was Son Isidore, then in short pants. When Isidore grew into long pants and had a few dollars in their pockets he bought a steerage ticket for England and slipped away to look for cannibals. Eventually he reached Johannesburg, spent several years grubbing for his board & bed. Finally he hit upon the bright idea of selling land on the installment plan, formed African Realty Trust, Ltd., sold suburban sites which later became parts of cities. To get the sites occupied he imported portable houses, opened a mortgage & loan office. To get his tenants to their homes he started a bus line. That paid too. Everything paid. He bought more land, planted it with fruits, sold it, collected from the fruit profits. He opened banks, bought ships, went into every branch of business that looked profitable. He bought theatres, organized his own companies to play in them, now has a monopoly of the amusement facilities of South Africa.

A. Schlesinger & Son are both dead. The Manhattan firm of A. Schlesinger & Sons is owned by South Africa's Isidore W. and his New York brother Max A. It operates exclusively as U. S. financial agent of the Schlesinger interests. Both Schlesingers like to be called by their initials. Brother M. A., 48, is short, stocky, black-haired, sits in an office in an old building near Times Square. Brother I. W., 58, is short, stocky, grey-haired, dashes about South Africa and Europe in pursuit of more business. Neither brother, enriched by films, ever had a photograph taken in the U. S. Brother M. A. thinks the diamond business may change all that.

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