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Part 2: Company Rule in Rhodesia

Rhodes’s Dream

Rhodes’s childhood

Birth

Rhodes was born in 1853 in Bishop's Stortford, Hertfordshire, England, the fifth son of the Reverend Francis William Rhodes (1807–1878) and his wife Louisa Peacock. Francis was a Church of England clergyman who served as perpetual curate of Brentwood, Essex (1834–1843) and then as vicar of nearby Bishops Stortford (1849–1876). He was proud of never having preached a sermon longer than 10 minutes. Francis was the eldest son of William Rhodes (1774–1843), a brick manufacturer of Hackney, Middlesex. The earliest traceable direct ancestor of Cecil Rhodes is James Rhodes (fl 1660) of Snape Green, Whitmore, Staffordshire. Cecil's siblings included Frank Rhodes, an army officer.

England and Jersey

Rhodes as a boy

Rhodes' birthplace, now part of Bishop's Stortford Museum; the bedroom in which he was born is marked by a plaque.

Rhodes attended the Bishop's Stortford Grammar School from the age of nine, but, as a sickly, asthmatic adolescent, he was taken out of grammar school in 1869 and, according to Basil Williams, "continued his studies under his father's eye (...)."

At age seven, he was recorded in the 1861 census as boarding with his aunt, Sophia Peacock, at a boarding house in Jersey, where the climate was perceived to provide a respite for those with conditions such as asthma. His health was weak and there were fears that he might be consumptive (have tuberculosis), a disease of which several of the family showed symptoms. His father decided to send him abroad for what were believed to be the good effects of a sea voyage and a better climate in South Africa.

Africa

When he arrived in Africa, Rhodes lived on money lent by his aunt Sophia. After a brief stay with the Surveyor-General of Natal, Dr. P.C. Sutherland, in Pietermaritzburg, Rhodes took an interest in agriculture. He joined his brother Herbert on his cotton farm in the Umkomazi valley in Natal. The land was unsuitable for cotton, and the venture failed.

In October 1871, 18-year-old Rhodes and his 26-year-old brother Herbert left the colony for the diamond fields of Kimberley in Northern Cape Province. Financed by N M Rothschild & Sons, Rhodes succeeded over the next 17 years in buying up all the smaller diamond mining operations in the Kimberley area.

His monopoly of the world's diamond supply was sealed in 1890 through a strategic partnership with the London-based Diamond Syndicate. They agreed to control world supply to maintain high prices. Rhodes supervised the working of his brother's claim and speculated on his behalf. Among his associates in the early days were John X. Merriman and Charles Rudd, who later became his partner in the De Beers Mining Company and the Niger Oil Company.

During the 1880s, Cape vineyards had been devastated by a phylloxera epidemic. The diseased vineyards were dug up and replanted, and farmers were looking for alternatives to wine. In 1892, Rhodes financed The Pioneer Fruit Growing Company at Nooitgedacht, a venture created by Harry Pickstone, an Englishman who had experience with fruit-growing in California. The shipping magnate Percy Molteno had just undertaken the first successful refrigerated export to Europe. In 1896, after consulting with Molteno, Rhodes began to pay more attention to export fruit farming and bought farms in Groot Drakenstein, Wellington and Stellenbosch. A year later, he bought Rhone and Boschendal and commissioned Sir Herbert Baker to build him a cottage there. The successful operation soon expanded into Rhodes Fruit Farms, and formed a cornerstone of the modern-day Cape fruit industry.

University

A portrait bust of Rhodes on the first floor of No. 6 King Edward Street marks the place of his residence whilst in Oxford.

In 1873, Rhodes left his farm field in the care of his business partner, Rudd, and sailed for England to study at university. He was admitted to Oriel College, Oxford, but stayed for only one term in 1873. He returned to South Africa and did not return for his second term at Oxford until 1876. He was greatly influenced by John Ruskin's inaugural lecture at Oxford, which reinforced his own attachment to the cause of British imperialism.

Among his Oxford associates were James Rochfort Maguire, later a fellow of All Souls College and a director of the British South Africa Company, and Charles Metcalfe . Due to his university career, Rhodes admired the Oxford "system". Eventually, he was inspired to develop his scholarship scheme: "Wherever you turn your eye—except in science—an Oxford man is at the top of the tree".

While attending Oriel College, Rhodes became a Freemason in the Apollo University Lodge. Although initially he did not approve of the organisation, he continued to be a South African Freemason until his death in 1902. The shortcomings of the Freemasons, in his opinion, later caused him to envisage his own secret society with the goal of bringing the entire world under British rule.

Establishment of De Beers

Preference Share of the De Beers Consolidated Mines Ltd., issued 1. March 1902

Sketch of Rhodes by Violet Manners

During his years at Oxford, Rhodes continued to prosper in Kimberley. Before his departure for Oxford, he and C.D. Rudd had moved from the Kimberley Mine to invest in the more costly claims of what was known as old De Beers (Vooruitzicht). It was named after Johannes Nicolaas de Beer and his brother, Diederik Arnoldus, who occupied the farm.

After purchasing the land in 1839 from David Danser, a Koranna chief in the area, David Stephanus Fourie, forebearer for Claudine Fourie-Grosvenor, had allowed the de Beers and various other Afrikaner families to cultivate the land. The region extended from the Modder River via the Vet River up to the Vaal River.

In 1874 and 1875, the diamond fields were in the grip of depression, but Rhodes and Rudd were among those who stayed to consolidate their interests. They believed that diamonds would be numerous in the hard blue ground that had been exposed after the softer, yellow layer near the surface had been worked out. During this time, the technical problem of clearing out the water that was flooding the mines became serious. Rhodes and Rudd obtained the contract for pumping water out of the three main mines. After Rhodes returned from his first term at Oxford, he lived with Robert Dundas Graham, who later became a mining partner with Rudd and Rhodes.

On 13 March 1888, Rhodes and Rudd launched De Beers Consolidated Mines after the amalgamation of a number of individual claims. With £200,000 of capital, the company, of which Rhodes was secretary, owned the largest interest in the mine (£200,000 in 1880 = £22.5m in 2020 = $28.5m USD). Rhodes was named the chairman of De Beers at the company's founding in 1888. De Beers was established with funding from N.M. Rothschild & Sons in 1887.

Cape Parliament

Cecil Rhodes (Sketch by Mortimer Menpes)

In 1880, Rhodes prepared to enter public life at the Cape. With the earlier incorporation of Griqualand West into the Cape Colony under the Molteno Ministry in 1877, the area had obtained six seats in the Cape House of Assembly. Rhodes chose the rural and predominately Boer constituency of Barkly West, which would remain loyal to Rhodes until his death.

When Rhodes became a member of the Cape Parliament, the chief goal of the assembly was to help decide the future of Basutoland. The ministry of Sir Gordon Sprigg was trying to restore order after the 1880 rebellion known as the Gun War. The Sprigg ministry had precipitated the revolt by applying its policy of disarming all native Africans to those of the Basotho nation, who resisted.

The Imperial Factor

"The Rhodes Colossus" – cartoon by Edward Linley Sambourne, published in Punch after Rhodes announced plans for a telegraph line from Cape Town to Cairo in 1892.

Rhodes used his wealth and that of his business partner Alfred Beit and other investors to pursue his dream of creating a British Empire in new territories to the north by obtaining mineral concessions from the most powerful indigenous chiefs. Rhodes' competitive advantage over other mineral prospecting companies was his combination of wealth and astute political instincts, also called the "imperial factor", as he often collaborated with the British Government. He befriended its local representatives, the British Commissioners, and through them organized British protectorates over the mineral concession areas via separate but related treaties. In this way he obtained both legality and security for mining operations. He could then attract more investors. Imperial expansion and capital investment went hand in hand.

The imperial factor was a double-edged sword: Rhodes did not want the bureaucrats of the Colonial Office in London to interfere in the Empire in Africa. He wanted British settlers and local politicians and governors to run it. This put him on a collision course with many in Britain, as well as with British missionaries, who favoured what they saw as the more ethical direct rule from London. Rhodes prevailed because he would pay the cost of administering the territories to the north of South Africa against his future mining profits. The Colonial Office did not have enough funding for this. Rhodes promoted his business interests as in the strategic interest of Britain: preventing the Portuguese, the Germans or the Boers from moving into south-central Africa. Rhodes's companies and agents cemented these advantages by obtaining many mining concessions, as exemplified by the Rudd and Lochner Concessions.