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Capital and Colonialism pp 283–309Cite as

Palgrave Macmillan

On the Ground Floor: The Corner House Group

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Abstract

In previous chapters, we have analysed the outcome for different regions of Africa. In the present chapter, we zoom in to a much more detailed level to analyse how the macro-oriented financial history approach can be merged with a more micro-oriented business history approach. We will here use the data from our general dataset and analyse it in tandem with archival material and contemporary business press. In order to discuss the outcome for investors and other stakeholders, we focus on the Corner House group and particularly on the South African gold company Rand Mines Limited during the 1890s. Although this was one of the most important mining companies operating on Witwatersrand at the time, it has received scant attention in previous scholarly literature. We here analyse the formation of inside positions in the company and how these positions can help to explain the varying results for different kinds of investors.

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Notes

  1. 1.

    WB 118, 940119; WB 121, 951025; HE 61, 951101; WB 173, 960317.

  2. 2.

    HE 65, 980916.

  3. 3.

    Authors use slightly different terminology when they refer to the same technique: vendor’s interest, vendor’s capital and vendor’ shares (Cartwright 1967, 29–33; Wheatcroft 1985, 116; Phimister 1988, 63–64; Katzenellenbogen 1975, 362; Van Helten 1990, 163–68; Dumett 2009, 23–24).

  4. 4.

    HE 124, 871109; HE 124, 871219; WB 117, 930203; HE 64, 980311. See also (Cartwright 1967, 127; Fraser 1977, 56).

  5. 5.

    HE 61, 950208.

  6. 6.

    HE 58, 930215.

  7. 7.

    Quoted in (Cartwright 1965, 130).

  8. 8.

    HE 124, 871108; HE 124 980506. See also (Kubicek 1979, 58).

  9. 9.

    HE 58, 930210. See also (Cartwright 1965, 120–42; Fraser 1977, 39).

  10. 10.

    HE 124, 871108; HE 58, 930311; WB 120, 941229; WB 122, 960908; HE 140, 970830; HE 65, 980722; HE 65, 980916.

  11. 11.

    HE 65, 980916.

  12. 12.

    HE 5, 900707; HE 5, 930930; HE 5, 931105; HE5, 931110; HE 5, 940602; HE 950118, WB 122, 960912, WB 173, 960317; WB 173, 960318; WB 173, 960321; HE 64, 980107; HE 64, 980520.

  13. 13.

    HE 124, 871109; HE 124, 871125; HE 124, 871202; HE 124, 871221.

  14. 14.

    HE 124, 871118.

  15. 15.

    HE 124, 871118; HE 124, 871119.

  16. 16.

    Baantjes, Langlaagte, Robinson, Ferreria, Henry Nourse, Jubilee, Salisbury and Wolhuter.

  17. 17.

    HE 124, 871119.

  18. 18.

    HE 124, 871103; HE 124, 871105; HE 124, 871108; HE 124, 871119.

  19. 19.

    HE 124, 871103; HE 124, 871105; HE 56, 901017. See also (Kubicek 1979, 62).

  20. 20.

    See, for example, FT 940529.

  21. 21.

    WB 122, 961212.

  22. 22.

    Quoted in (Cartwright 1965, 127).

  23. 23.

    HE 58 n.d.; WB 117, 930117; HE 58, 930311; Annual report of Rand Mines 1894, p. 13.

  24. 24.

    332,708 shares (out of the 400,000) was issued and fully paid up when the company was formed. The rest of the shares were kept as a reserve. To provide further working capital, debentures were created in 1897 to a value of £1,250,000 (at 5% interest). In 1898, another 4436 shares were issued (at £32), in order to acquire the shares in Rose Deep and Glen Deep (Cartwright 1967, 127–31).

  25. 25.

    HE 58, 930210.

  26. 26.

    HE 58, 930303; WB 117, 930602; WB 118, 931202.

  27. 27.

    FT 940320.

  28. 28.

    FT 940305; FT 940530; FT 940815.

  29. 29.

    The Economist 940106. See also (Cartwright 1965, 120–25).

  30. 30.

    Annual report of Rand Mines 1894, p. 8.

  31. 31.

    ECO 940310; FT 940320; FT 940407; FT 940621; FT 940628. See also HE 5, 940602.

  32. 32.

    ECO 940310.

  33. 33.

    FT 940628.

  34. 34.

    FT 940905; FT 940907.

  35. 35.

    FT 941030; FT941119.

  36. 36.

    FT 950108; FT 950924.

  37. 37.

    HE 307, 951220; HE 307, 960111.

  38. 38.

    HE 307, 951225.

  39. 39.

    HE 306, 951026.

  40. 40.

    HE 307, 960111.

  41. 41.

    HE 307, various letters.

  42. 42.

    Annual report of Rand Mines 1896, p. 7 and 1897, p. 7. See also (Kubicek 1979, 82).

  43. 43.

    HE 58, 930310; HE 306, 950511; HE 140, 970830; HE 64, 980406; HE 64, 980513.

  44. 44.

    See annual reports of Rand Mines 1893–99.

  45. 45.

    See annual reports of Rand Mines 1893–99.

  46. 46.

    Annual report of Rand Mines 1895, p. 7.

  47. 47.

    Annual report of Rand Mines 1897, p. 17.

  48. 48.

    HE 124, 871219; WB 117, 930203; HE 167, 970730.

  49. 49.

    HE 307, 960215; HE 307, 960222.

  50. 50.

    HE 140, 970823; HE 140, 970830. See also annual report of Rand Mines 1897, pp. 33–34.

  51. 51.

    HE 140, 970830.

  52. 52.

    Annual report of Geldenhuis Deep 1893.

  53. 53.

    HE 58, 930115; HE 58, 930117; HE 58, 930224; HE 140, 970830; Annual report of Rand Mines 1897, p. 25 and 1898 p. 28. See also (Kubicek 1979, 68).

  54. 54.

    This figure is based on the augmented time series which was presented in Fig. 12.1. If our original data is used (starting in June 1895) and if 1920 would be included, then the return would drop to an average of −4.5%. For the whole period 1895–1969, the average return to investors in Rand Mines was 2.3 per cent, well below the return of our overall South African portfolio, see Chap. 7.

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  1. Department of Economy and Society, University of Gothenburg, Gothenburg, Sweden

    Klas Rönnbäck & Oskar Broberg

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  1. Klas Rönnbäck
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Correspondence to Klas Rönnbäck .

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Rönnbäck, K., Broberg, O. (2019). On the Ground Floor: The Corner House Group. In: Capital and Colonialism. Palgrave Studies in Economic History. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-19711-7_12

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  • DOI: https://doi.org/10.1007/978-3-030-19711-7_12

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