Printed for the use of the Colonial Office. January 1873.
PUBLIC RECORD OFFICE
Reference :-
THETIC.O.
سيس
882
2 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
Correspondence respecting the Oriental Coal Company's Affairs (Labuan).
[The Lease of the Labuan Mines, dated 11th March, 1869, is printed as an Appendix.]
Sir,
No. 1.
Sir C. Murdoch to Mr. Herbert.—(Received June 29.)
Emigration Board, June 28, 1871.
I HAVE the honour to enclose herewith, for the consideration of the Earl of Kimberley, the copy of a letter addressed to us by the Secretary to the Oriental Coal Company, Limited, praying that the terms of the lease granted to them in March 1869, may be so far relaxed as to allow them to continue for the present to pay royalty on the coal they raise instead of the fixed rent of 1,000l. a year which they undertook to pay from the 25th December last, the first moiety of which fell due on the 24th instant.
The Oriental Coal Company is the fourth Company which has undertaken to work the coal mines in Labuan hitherto with little result beyond the loss of large sums of money, nevertheless the success of these mines is generally considered a matter of imperial importance on account of the facilities it would afford to steamn-vessels navigating the China Sea. If the Oriental Company should fail to succeed it could hardly be expected that any other Company would be willing to undertake an enterprise which has hitherto brought nothing but loss to those who have engaged in it. In that case whatever advantage the public would otherwise derive from the production of coal - at Labuan would be lost. Under these circumstances I would venture to submit to the Earl of Kimberley whether, having regard to the facts stated in the enclosed letter, the payment of the rent due from the Company might not be postponed for (say) two years, from the date at which under the lease it became due, the Company continuing in the meantime to pay royalty on the coal they raise as heretofore. The royalties received from them bitherto have been, on account of 1889, 571. 48.; on account of 1870, 801. Sø. 6d.: but there are questions as to the whole of the Royalties payable for those years still undecided which may vary the amounts.
Bir,
I have, &c.
(Signed) T. W. C. MURDOCH,
Inclosure in No. 1.
Mr. Wood to Mr. Walcott.
The Oriental Coal Company (Limited),
55, Bernard Street, Leith, June 23, 1871. WHEN this Company purchased the Labuan Coal Mines, they were led to believe by the employers of the former Company that the mines were in such a condition that a large output of coals could be very speedily obtained, and they therefore had no hesitation in entering into a new lease for payment of a royalty of 6d. per ton of output for a period of two years and thereafter a fixed rent of 1,0001. a year.
It has been found by this Company however, that a very large proportion of the coals raised by the former Company was obtained from surface diggings and that the prosecution of a similar aystem could only result on permanent injury to the collieries, these diggings enabling the surface water to get into the works.
A large sum of money has consequently been required to be laid out to obtain access to the coals in a proper manner, and to make spaces for the men to work in, and considerable progress has been made in this direction.
These works have not only entailed a heavy outlay upon this Company, but have [88]
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