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.