Claude de Bernales
Encyclopedia
Claude Albo de Bernales was a Western Australia
n mining entrepreneur whose business activities and marketing did much to stimulate investment in Western Australia during the early years of the twentieth century. During the 1930s gold production in the State increased from £1,600,000 to £11,800,000 and employment in the industry quadrupled due in considerable part to de Bernales' marketing of the goldfields to overseas investors.
De Bernales accumulated immense wealth through complex and elaborate schemes by which he acquired many mining companies and attracted overseas investment and personal support. In the latter part of his life however, financial difficulties and ill-health saw him live as a recluse in Selsey
, Sussex .
, London, the son of a New York-born Basque, Emmanuel Edgar Albo de Bernales, and his American wife Emma Jane, née Belden. He was educated at a variety of schools in the USA, Britain and Europe, including one year (1891) at Uppingham School
in Rutland
in the East Midlands of England
, and later at Neuenheim College (now called Heidelberg College) in Heidelberg
in the Rhineland
, Germany
.
In 1897 de Bernales emigrated to the Western Australian goldfields, drawn like many other European immigrants to the lure of the gold rush of the region.
On 19 May 1903 de Bernales married Bessie Picken Berry at Kalgoorlie.
His business contacts continued to expand and in 1909 became managing director of a major mining plant supplier, Kalgoorlie Foundry, Ltd. In 1911, he purchased a Federation Queen Anne
style house in Cottesloe
, renaming it 'Overton Lodge' after the house in Brixton, London, where he was born. In 1936 he redeveloped it into an ostentatious Inter-war Spanish Mission style mansion. The house and its grounds are now the Cottesloe Civic Centre. In 1912 he became a director of foundry operators Hoskins & Co, Ltd in Perth.
During this time, he developed his forté as a mining promoter while acquiring leases through defaults by some of his clients at Kalgoorlie
and Wiluna
. These leases were eventually used to form the Wiluna Gold Mines company which he owned jointly with several overseas companies including Consolidated Gold Fields of South Africa.
In 1926 he went to London and raised £1 million to develop the Wiluna leases. A later issue of promissory notes for £300,000 was backed by the State government, after de Bernales fostered a close alliance with the Governor of Western Australia
, Sir William Campion
. Campion would later become a close business associate and took chairmanship roles of a number of de Bernales' companies including Anglo-Australian Gold Development Co. and Commonwealth Mining and Finance Co. Ltd.
Following the death of his first wife in 1927, de Bernales married Helen Florence Berry, née Alger, on 5 February 1930 at Cottesloe
.
Using London capital, the Wiluna mines were expanded and by 1934, 10,000 people had settled there and gold worth £3 million had been extracted. The Wiluna mine ultimately earned £12 million and provided an impetus for other mines in the region.
With the onset of the Great Depression
, de Bernales campaigned for government support of the gold mining industry, arguing that investment would enable the industry to continue to operate throughout the depression as unemployment rose to 25%. He devised a gold bonus campaign, where the Federal government would pay a 'bounty' of £1 an ounce on gold produced in excess of the 1928-30 average. Not surprisingly, the idea had widespread support from his fellow entrepreneurs and state government politicians. De Bernales led several delegations to the eastern states to lobby for the scheme which was known as the 'Gold Bounty Acts', but by the time it became law in 1930 and 1931, the exchange rate had collapsed and price of gold had risen to well above the rate of the bounty paid.
De Bernales moved to London in 1932, forming several investment companies which he promoted to seek new capital for mining leases on new land reserves provided by the state government. Capital of £1,261,000 was raised, though much of the land was unproven. In 1933-35, yet more companies and another £6,110,000 was pumped into his leases. By now, de Bernales' fundraising represented a major proportion of overseas capital inflows for Australian mining and the Western Australian economy as a whole. In 1936, he won control of one of the oldest and richest mines of the 'Golden Mile', the Great Boulder Proprietary Gold Mine. He also developed new mines at Mount Palmer
which returned £200,000 to investors in the first 2 years and to the north at Marble Bar
.
In 1935-36 he returned to Western Australia with ex-governor Campion, being feted by local politicians acknowledging his ambassadorial role for the state. At that time he acquired properties in Melbourne and Perth including the well-known 'London Court
' shopping arcade in the Perth CBD.
De Bernales returned to London, but from 1939 his empire started to encounter difficulties. The Great Boulder mine went into liquidation and its shareholders sought recovery of their losses, accusing de Bernales of mismanagement. The London Stock Exchange
suspended trading in several of his companies in July 1939 which sent them also into liquidation. An extensive investigation into de Bernales' Commonwealth Group of companies by Sir William McClintock for the Board of Trade
was made during 1939 and 1940. This uncovered income tax liabilities from share dealings on profits of £1,382,000. These were however, never brought to trial as the case arguments dragged on for ten years. Between 1945 and 1948, the official receiver undertook further investigations but partly due to his failing health the claims were finally settled for just £125,000. In the meantime, a concerted attack campaign by Lord Beaverbrook
's influential Daily Express
continued.
De Bernales became a recluse in Selsey
, Sussex, near Chichester, and died in Chelsea
, London, on 9 December 1963, survived by his second wife and two daughters from his first marriage.
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
n mining entrepreneur whose business activities and marketing did much to stimulate investment in Western Australia during the early years of the twentieth century. During the 1930s gold production in the State increased from £1,600,000 to £11,800,000 and employment in the industry quadrupled due in considerable part to de Bernales' marketing of the goldfields to overseas investors.
De Bernales accumulated immense wealth through complex and elaborate schemes by which he acquired many mining companies and attracted overseas investment and personal support. In the latter part of his life however, financial difficulties and ill-health saw him live as a recluse in Selsey
Selsey
Selsey is a seaside town and civil parish, about seven miles south of Chichester, in the Chichester District of West Sussex, England. Selsey lies at the southernmost point of the Manhood Peninsula, almost cut off from mainland Sussex by the sea...
, Sussex .
Early life
De Bernales was born in BrixtonBrixton
Brixton is a district in the London Borough of Lambeth in south London, England. It is south south-east of Charing Cross. The area is identified in the London Plan as one of 35 major centres in Greater London....
, London, the son of a New York-born Basque, Emmanuel Edgar Albo de Bernales, and his American wife Emma Jane, née Belden. He was educated at a variety of schools in the USA, Britain and Europe, including one year (1891) at Uppingham School
Uppingham School
Uppingham School is a co-educational independent school of the English public school tradition, situated in the small town of Uppingham in Rutland, England...
in Rutland
Rutland
Rutland is a landlocked county in central England, bounded on the west and north by Leicestershire, northeast by Lincolnshire and southeast by Peterborough and Northamptonshire....
in the East Midlands of England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, and later at Neuenheim College (now called Heidelberg College) in Heidelberg
Heidelberg
-Early history:Between 600,000 and 200,000 years ago, "Heidelberg Man" died at nearby Mauer. His jaw bone was discovered in 1907; with scientific dating, his remains were determined to be the earliest evidence of human life in Europe. In the 5th century BC, a Celtic fortress of refuge and place of...
in the Rhineland
Rhineland
Historically, the Rhinelands refers to a loosely-defined region embracing the land on either bank of the River Rhine in central Europe....
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
.
In 1897 de Bernales emigrated to the Western Australian goldfields, drawn like many other European immigrants to the lure of the gold rush of the region.
Goldfields
His first job was running Western Machinery Company, Limited, which supplied and financed various mining machinery purchases for the hundreds of large and small gold mining companies in the region.On 19 May 1903 de Bernales married Bessie Picken Berry at Kalgoorlie.
His business contacts continued to expand and in 1909 became managing director of a major mining plant supplier, Kalgoorlie Foundry, Ltd. In 1911, he purchased a Federation Queen Anne
Queen Anne Style architecture
The Queen Anne Style in Britain means either the English Baroque architectural style roughly of the reign of Queen Anne , or a revived form that was popular in the last quarter of the 19th century and the early decades of the 20th century...
style house in Cottesloe
Cottesloe, Western Australia
-Transport:Cottesloe is served by Swanbourne, Grant Street, Cottesloe, Mosman Park and Victoria Street railway stations on the Fremantle line. Various bus routes along Stirling Highway and through the suburb's western and eastern sections link Cottesloe to Perth and Fremantle. All services are...
, renaming it 'Overton Lodge' after the house in Brixton, London, where he was born. In 1936 he redeveloped it into an ostentatious Inter-war Spanish Mission style mansion. The house and its grounds are now the Cottesloe Civic Centre. In 1912 he became a director of foundry operators Hoskins & Co, Ltd in Perth.
During this time, he developed his forté as a mining promoter while acquiring leases through defaults by some of his clients at Kalgoorlie
Kalgoorlie, Western Australia
Kalgoorlie, known as Kalgoorlie-Boulder, is a town in the Goldfields-Esperance region of Western Australia, and is located east-northeast of state capital Perth at the end of the Great Eastern Highway...
and Wiluna
Wiluna, Western Australia
Wiluna is a complex town in the Mid West region of Western Australia. It is situated on the edge of the Western Desert at the gateway to the Canning Stock Route and Gunbarrel Highway. It is the service centre of the local area for the local Aboriginal people, the pastoral industry, mining, and...
. These leases were eventually used to form the Wiluna Gold Mines company which he owned jointly with several overseas companies including Consolidated Gold Fields of South Africa.
In 1926 he went to London and raised £1 million to develop the Wiluna leases. A later issue of promissory notes for £300,000 was backed by the State government, after de Bernales fostered a close alliance with the Governor of Western Australia
Governor of Western Australia
The Governor of Western Australia is the representative in Western Australia of Australia's Monarch, Queen Elizabeth II. The Governor performs important constitutional, ceremonial and community functions, including:* presiding over the Executive Council;...
, Sir William Campion
William Campion
Colonel Sir William Robert Campion KCMG, DSO, TD, DL was a British politician and Governor of Western Australia from 1924 to 1931....
. Campion would later become a close business associate and took chairmanship roles of a number of de Bernales' companies including Anglo-Australian Gold Development Co. and Commonwealth Mining and Finance Co. Ltd.
Following the death of his first wife in 1927, de Bernales married Helen Florence Berry, née Alger, on 5 February 1930 at Cottesloe
Cottesloe, Western Australia
-Transport:Cottesloe is served by Swanbourne, Grant Street, Cottesloe, Mosman Park and Victoria Street railway stations on the Fremantle line. Various bus routes along Stirling Highway and through the suburb's western and eastern sections link Cottesloe to Perth and Fremantle. All services are...
.
Using London capital, the Wiluna mines were expanded and by 1934, 10,000 people had settled there and gold worth £3 million had been extracted. The Wiluna mine ultimately earned £12 million and provided an impetus for other mines in the region.
With the onset of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, de Bernales campaigned for government support of the gold mining industry, arguing that investment would enable the industry to continue to operate throughout the depression as unemployment rose to 25%. He devised a gold bonus campaign, where the Federal government would pay a 'bounty' of £1 an ounce on gold produced in excess of the 1928-30 average. Not surprisingly, the idea had widespread support from his fellow entrepreneurs and state government politicians. De Bernales led several delegations to the eastern states to lobby for the scheme which was known as the 'Gold Bounty Acts', but by the time it became law in 1930 and 1931, the exchange rate had collapsed and price of gold had risen to well above the rate of the bounty paid.
De Bernales moved to London in 1932, forming several investment companies which he promoted to seek new capital for mining leases on new land reserves provided by the state government. Capital of £1,261,000 was raised, though much of the land was unproven. In 1933-35, yet more companies and another £6,110,000 was pumped into his leases. By now, de Bernales' fundraising represented a major proportion of overseas capital inflows for Australian mining and the Western Australian economy as a whole. In 1936, he won control of one of the oldest and richest mines of the 'Golden Mile', the Great Boulder Proprietary Gold Mine. He also developed new mines at Mount Palmer
Mount Palmer, Western Australia
Mount Palmer was a town in the Yilgarn shire in Western Australia. It was founded in 1934 after the discovery of gold in the area. The Mount Palmer Gold Mine operated from 1934 to 1944, when it closed due to labour shortages cause by World War II...
which returned £200,000 to investors in the first 2 years and to the north at Marble Bar
Marble Bar, Western Australia
-North Pole:An ironically named locality nearby is known as North Pole , no doubt for its heat. It is the location of rock formations considered to have evidence that puts the origin of life on earth back to 3,400–3,500 mya, due to stromatolites in particular rock sequences...
.
In 1935-36 he returned to Western Australia with ex-governor Campion, being feted by local politicians acknowledging his ambassadorial role for the state. At that time he acquired properties in Melbourne and Perth including the well-known 'London Court
London Court
London Court is a three- and four-level open-roofed shopping arcade located in the central business district in Perth, Western Australia. It was built in 1937 by wealthy gold financier and businessman, Claude de Bernales for residential and commercial purposes...
' shopping arcade in the Perth CBD.
De Bernales returned to London, but from 1939 his empire started to encounter difficulties. The Great Boulder mine went into liquidation and its shareholders sought recovery of their losses, accusing de Bernales of mismanagement. The London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
suspended trading in several of his companies in July 1939 which sent them also into liquidation. An extensive investigation into de Bernales' Commonwealth Group of companies by Sir William McClintock for the Board of Trade
Board of Trade
The Board of Trade is a committee of the Privy Council of the United Kingdom, originating as a committee of inquiry in the 17th century and evolving gradually into a government department with a diverse range of functions...
was made during 1939 and 1940. This uncovered income tax liabilities from share dealings on profits of £1,382,000. These were however, never brought to trial as the case arguments dragged on for ten years. Between 1945 and 1948, the official receiver undertook further investigations but partly due to his failing health the claims were finally settled for just £125,000. In the meantime, a concerted attack campaign by Lord Beaverbrook
Max Aitken, 1st Baron Beaverbrook
William Maxwell "Max" Aitken, 1st Baron Beaverbrook, Bt, PC, was a Canadian-British business tycoon, politician, and writer.-Early career in Canada:...
's influential Daily Express
Daily Express
The Daily Express switched from broadsheet to tabloid in 1977 and was bought by the construction company Trafalgar House in the same year. Its publishing company, Beaverbrook Newspapers, was renamed Express Newspapers...
continued.
De Bernales became a recluse in Selsey
Selsey
Selsey is a seaside town and civil parish, about seven miles south of Chichester, in the Chichester District of West Sussex, England. Selsey lies at the southernmost point of the Manhood Peninsula, almost cut off from mainland Sussex by the sea...
, Sussex, near Chichester, and died in Chelsea
Chelsea, London
Chelsea is an area of West London, England, bounded to the south by the River Thames, where its frontage runs from Chelsea Bridge along the Chelsea Embankment, Cheyne Walk, Lots Road and Chelsea Harbour. Its eastern boundary was once defined by the River Westbourne, which is now in a pipe above...
, London, on 9 December 1963, survived by his second wife and two daughters from his first marriage.