the diggings had been completed, and the machinery set up. It
appeared to him, however, that the government intended to
appropriate some of their profits, although it had given no
facilities for the preparatory works on the mines, during which it
should be remembered that their capital had been burdened by
exceptionally heavy indirect taxation. The moment that capital
began to be productive, it was to be taxed." (_Blue Book_, No.
9345, p. 48.)

In four-and-twenty hours, Mr. Krüger had unexpectedly managed to pass a
law levying a new tax of 2-1/2 per cent. of the gross production from
mynpachts (mining leases), and 5 per cent. from the gross production of
other mines. In his report of January 26th, 1899, Mr. Rouliot says: "Had
this new tax formed part of a general scheme for the readjustment of
taxation, it might have been defended, but those who are considered best
qualified to express the views of the government, content themselves by
saying that it has the right to take a share of the profits realised by
the mines and add that this tax is only a beginning."


6.--_Attempt to Raise a Loan._

Not content with increasing taxation, the government now wished to raise
a loan. The attempt failed. The Government of Pretoria blamed the mining
companies for the failure. Mr. Rouliot said, on January 26th: "It is
true that the companies did not actually support the government in its
efforts;" but he added:--

"Neither the Chamber of Mines, nor, to my knowledge, anyone
directly, or indirectly, connected with mining interests did