Hermann Ludwig Eckstein (3 August 1847 – 16 January 1893) was a German-born
British
British may refer to:
Peoples, culture, and language
* British people, nationals or natives of the United Kingdom, British Overseas Territories and Crown Dependencies.
* British national identity, the characteristics of British people and culture ...
mining magnate and banker. He was instrumental in the development of
gold mining
Gold mining is the extraction of gold by mining.
Historically, mining gold from Alluvium, alluvial deposits used manual separation processes, such as gold panning. The expansion of gold mining to ores that are not on the surface has led to mor ...
in
South Africa
South Africa, officially the Republic of South Africa (RSA), is the Southern Africa, southernmost country in Africa. Its Provinces of South Africa, nine provinces are bounded to the south by of coastline that stretches along the Atlantic O ...
, the
South African Chamber of Mines
The Minerals Council South Africa is a South African mining-industry employer organisation. Its members include famous South African mining houses such as Anglo American plc, Anglo American, De Beers, Gold Fields and Harmony. In its current form, ...
, and the
National Bank of the South African Republic.
Life history
Born in
Hohenheim near
Stuttgart
Stuttgart (; ; Swabian German, Swabian: ; Alemannic German, Alemannic: ; Italian language, Italian: ; ) is the capital city, capital and List of cities in Baden-Württemberg by population, largest city of the States of Germany, German state of ...
,
Germany
Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
to a Lutheran minister,
he received an excellent education. He came to the South African diamond- and goldfields in 1882, and soon acquired a reputation as the resourceful manager of the Phoenix Diamond Mining Company at
Du Toit's Pan
Du Toit's Pan, now usually Dutoitspan, is one of the earliest diamond mining camps at what is now Kimberley, South Africa. It was renamed Beaconsfield, which existed as a separate borough from Kimberley itself until Kimberley and Beaconsfield wer ...
near
Kimberley
Kimberly or Kimberley may refer to:
Places and historical events
Australia
Queensland
* Kimberley, Queensland, a coastal locality in the Shire of Douglas
South Australia
* County of Kimberley, a cadastral unit in South Australia
Ta ...
.
[ He attracted the attention of Julius Wernher and ]Alfred Beit
Alfred Beit (15 February 1853 – 16 July 1906) was an Anglo-German gold and diamond magnate in South Africa, and a major donor and profiteer of infrastructure development on the African continent. He also donated much money to university ed ...
and in 1884 joined them in the partnership of Jules Porgès
Jules Porgès (25 May 1839 – 20 September 1921) was a Paris-based financier who played a central role in the rise of the Randlords who controlled the diamond and gold mining industries in South Africa.
He was born Yehuda Porges in Vienna and ...
& Co (later Wernher, Beit & Co).[
In 1885, Beit arranged for Hermann Eckstein and Jim Taylor to report on the firm's interests in the Barberton and De Kaap goldfields, in which they had invested heavily. Taylor wrote a gloomy report on the extent and quality of the ore lode that brought Porgès hurrying back to South Africa. He and Beit decided to disinvest. The firm suffered a loss, which was trivial compared with what was to follow. The soaring share prices during the boom were rapidly followed by pessimism, plummeting prices and widespread bankruptcy. Just before the collapse there had been rumours of enormous deposits of gold on the ]Witwatersrand
The Witwatersrand (, ; ; locally the Rand or, less commonly, the Reef) is a , north-facing scarp in South Africa. It consists of a hard, erosion-resistant quartzite metamorphic rock, over which several north-flowing rivers form waterfalls, w ...
, about 60 km south of Pretoria
Pretoria ( ; ) is the Capital of South Africa, administrative capital of South Africa, serving as the seat of the Executive (government), executive branch of government, and as the host to all foreign embassies to the country.
Pretoria strad ...
. These rumours had reached Porgès and Beit whilst visiting government offices in Pretoria. Initially discounted, they had proved to be true. Beit hurriedly acquired extensive mining rights in Johannesburg.
In 1888, Eckstein started his own firm under the name of Hermann Eckstein & Co., in the Corner House as a representative of Jules Porgès.[ He was instrumental in establishing the Chamber of Mines in Johannesburg in 1889, and acted as its first president until 1892.][ Eckstein put the infrastructure of the mines on a solid footing by using competent engineers, thus turning mere diggings into established industry. He was involved in the move to deep level mining when the surface deposits had run out. By the end of 1888, he was in charge of virtually all the mining activities in the central area of the Witwatersrand, and controlled the eleven most important syndicates. He played an important role in the founding of the Wanderers Club and is considered one of the ]Randlord
The Randlords () were the capitalists who controlled the diamond and gold mining industries in South Africa from the 1870s to the First World War.
A small number of European financiers, largely of the same generation, gained control of the diamon ...
s.
Eckstein was dismayed by the growing rift between the Uitlanders and Afrikaners
Afrikaners () are a Southern African ethnic group descended from predominantly Dutch people, Dutch Settler colonialism, settlers who first arrived at the Cape of Good Hope in Free Burghers in the Dutch Cape Colony, 1652.Entry: Cape Colony. '' ...
, more so since he counted Paul Kruger
Stephanus Johannes Paulus Kruger (; 10 October 1825 – 14 July 1904), better known as Paul Kruger, was a South African politician. He was one of the dominant political and military figures in 19th-century South Africa, and State Preside ...
as a personal friend. He played a large part in establishing the National Bank of the South African Republic. The year before his death he went to England, having been offered a partnership with Wernher and Beit in the Central Mining and Investment Corporation. He left Johannesburg in 1892 with his wife who was pregnant with their fourth child, but didn't live long enough to see its birth.[ On 16 January 1893 he died of "apoplexy of the heart", probably a heart attack. His brother Frederick took over the family interests and in 1910 rebuilt Ottershaw Park in Surrey which at the time was described as the 'Wonder House of Surrey'.
]
Sachsenwald
Beit's company planted some three million trees on an area of , an area Eckstein called Sachsenwald, now known as the Johannesburg suburbs of Saxonwold and Forest Town, the Zoo Lake and Johannesburg Zoo
The Johannesburg Zoo or Joburg Zoo is a zoo in Johannesburg, South Africa. The zoo is dedicated to the accommodation, enrichment, husbandry, and medical care of wild animals, and houses about 2000 individuals of 320 species. Established in 1 ...
.[ The forest became a favourite recreational spot for the wealthy Randlords and their families.
Ten years after his death, and in his memory, his former partners made a gift to Johannesburg of the Sachsenwald, later named the Hermann Eckstein Park.][ This Deed of Gift read: "Whereas the late Hermann Eckstein was in his lifetime a resident in the town of Johannesburg and always took a deep interest in its advancement and prosperity, and played an active part in many schemes and undertakings for its improvement and whereas it has appeared to us that the dedication of a suitable area of land for the use of the public of Johannesburg, as a public park, would have met with the cordial approval of our late friend and will be acceptable to fellow townsmen." The Deed was signed by Julius Wernher, ]Alfred Beit
Alfred Beit (15 February 1853 – 16 July 1906) was an Anglo-German gold and diamond magnate in South Africa, and a major donor and profiteer of infrastructure development on the African continent. He also donated much money to university ed ...
, Lionel Phillips
Sir Lionel Phillips, 1st Baronet (6 August 1855 – 2 July 1936) was a British-born South African financier, mining magnate and politician.
Early life
Phillips was born in London on 6 August 1855 to Phillip Phillips, a trader, and his wife J ...
, Ludwig Breitmeyer, Friedrich Eckstein (his brother), Charles Rube and Ludwig Wagner.
Epilogue
"Eckstein's skill in financial transactions and his unimpeachable integrity made him a respected man in a community where dishonesty was rife. He became a leading figure in the Johannesburg mining industry." - South African Dictionary of National Biography.
Eckstein was a founding member of the Rand Club, an exclusive club created for the use of the Randlords
The Randlords () were the capitalists who controlled the diamond and gold mining industries in South Africa from the 1870s to the First World War.
A small number of Europe, European financiers, largely of the same generation, gained control of the ...
, and first president of the Wanderers' Club.
References
Sources
Article on Hermann Eckstein
{{DEFAULTSORT:Eckstein, Hermann
South African mining businesspeople
Randlords
1847 births
1893 deaths
German emigrants to South Africa