Mining Titles.—The mining laws of the Transvaal -are excellent in character and while the claims cover every square foot of land for an area of nearly 40 miles long by from two to three miles wide there have been practically no conflicts over extra-lateral rights.
Notwithstanding the change in the political status of the Transvaal following the Boer War the main features of the mining law of the South African Republic are retained. The principles of the English common law and the immemorial precedents of English practice up hold present rights according to the statutes in force at the time of their inception. The mine operators of the Transvaal whose titles were acquired from the Republic are, therefore, se cure in the position thus defined; and hence it is not inappropriate in this place to state the Transvaal mining law as it existed prior to the war.
According to that law (1903) the of mining for and disposing of all precious metals and precious stones belongs to the state; but the state president, with the advice and consent of the executive council, may, by proclamation, throw open government ground as a public dig gings, upon which mining claims can be "pegged off" (that is, located) as specified by law.
An owner of a farm may, upon application to the government, have the farm likewise pro claimed. Before the proclamation of a private farm, the owner has the right of allotting to any person or persons he may specify a cer tain number of claims, called Vergunning claims, the number depending upon the size of the farm but not exceeding 60 as a maximum.
The owner has the further right to reserve for himself one-tenth of the ground, which is called a Mynpacht. This portion is held by the owner as a lessee, under what is called a Myn pacht Brief, for a term of not less than five years nor more than 20 years, with the privilege of renewal. The rental on Mynpacht was 10s. per Morgen (2.11 acres) in 1903.
He may also retain a certain area for resi dential and farming purposes, called a or homestead. Finally, the owner of a pro claimed farm is entitled to one-half of all licenses paid to the government.
A reef-claim (lode-claim) is 150 Cape feet (155 English feet) on the strike of the reef by 400 Cape feet (413.2 English feet) in the direc
tion of the dip— about 1.47 acres.
1 Cape ft = 1.033 English ft.
1 Cape sq. ft = 1.067 English sq. ft.
1 Claim = 150 by 400 Cape ft. = 60,000 Cape sq. ft. or 64,025 English sq. fr. f= 1.47 English acres.
1 Morgen — 92,196 English sq. ft. = 2.1165 English acres of 43,560 sq. ft.
Prospecting is not allowed on private ground without permission of the owner, but public ground is open to prospectors, though claims may not be pegged out until after proclamation of the ground in question as above described.
For a prospecting license on proclaimed private ground there is a charge (1903) of 5s. per month per claim, half of which goes to the owner and the rest to the government. On government ground the similar charge is 2s. 6d. per month, which goes to the government.
When, in the judgment of the mining com missioner, the results of the exploration justify the step he may convert the prospecting licenses into a digger's license, after which a charge of 20s. per claim per month is made, provided ore from the property is being crushed. If, how ever, no ore is being extracted and crushed from the claim, the charge for the digger's license is 15s. per month.
In 1896 the receipts from prospecting licenses amounted to £620,000; from diggers' licenses, 161,000, and from machine-stand licenses, #59,000.
Financial Conditions.—At the outbreak of the South African War the total capitalization of the gold mines of the Witwatersrand was over #70,000,000 at par, and at market prices about #147,000,000. A large part of these amounts represents worthless properties which have been "floated" during "boom" times; yet, notwithstanding this excessive capitalization, the mines yielded about 7 per cent on the total capitalization at par, and about 3.5 per cent on market prices. Eliminating properties notori ously without value, and also the capitalization of certain "deep-level" properties which have not, as yet, reached a producing stage, we may pronounce the returns from bona-fide invest ment and competent management to have been exceedingly satisfactory.