2
necessitated their turning the force of their employés on the island to preparations for the future rather than to output for the present.
In addition to the whole of its original capital close upon 15,0001. of additional capital raised has been expended on the mines, and the Company is now arranging for a further addition to the capital in order to put the works into a satisfactory state, and to obtain a large permanent output.
Hitherto the mines have produced only as follows:-
1868 (part of) 1869 .. 1870..
Toni.
3,732, at a cost of... 6,986,
.. 4.700,
30
H
£ 3. 7.
4,545 1 0
8,898 B 0
11,947 4 4
In the course of three years the Directors expect to have the mines in order, but if success attend their exertions earlier, the Directors pledge themselves to communicate to you the facts and will gladly pay the fixed rent if, in the judgment of the Commissioners, such should be exacted at any earlier date.
I have therefore been instructed to request that you will take these circumstances into your favourable consideration, and continue the royalty but postpone the fixed rent until the mines are put into a proper state to be worked.
I have, &c.
(Signed)
No. 2.
ALEX. WOOD, Secretary.
3
2. On the receipt of your previous letter of 12th July we communicated the substance of it to the Company, and having received no answer, we again called upon them on the 4th and 21st October to explain the circumstances under which the rent remained unpaid. We have recently received an answer from which it appears that the Company understood your letter of 12th July last as postponing, until Governor Hennessy's arrival
England, the Secretary of State's decision on their application for a remission of their rent, and they ask for an opportunity of making a personal represen- tation on the subject in the presence of the late Governor. As we have no authority to come to any decision in the matter, and as any representation they might make to us would only be for the purpose of our submitting it to the Secretary of State, we have thought it best to request them to make any statement they may desire to make in writing, so as to avoid the possibility of any error on our part in explaining their application to the Secretary of State. In the meantime we have informed them that we have no authority to abstain from pressing for payment of the rent due on the 24th June last, and that we accordingly require them to pay that sum at once.
3. The question of the amount of royalties due by the Company for the years 1869-70 has necessarily stood over until we could receive from the Colony the returns and explanatory information forwarded to us in your letter of the 31st ultimo. From them we find that the amount of royalty due by the Oriental Coal Company for those years was—
For coals sold during the year ended December 25, 1869, exclusive of
supplies to Her Majesty's Navy
PUBLIC RECORD OFFICE
Reference :-
EPIC.O.882
سياسيا
2 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- | COPYRIGHT PHOTOGRAPH—NOT TO
Sir,
Mr. Meade to Sir C. Murdoch.
Downing Street, July 12, 1871.
I AM directed by the Farl of Kimberley to acknowledge the receipt of your letter diated the 28th June, inclosing the copy of a letter addressed to you by the Secretary of the Oriental Coal Company, asking for certain modifications in the terms of the lease granted to them in 1869.
I am to state, in reply, that the financial position of Labuan is not such as to satisfy the Secretary of State that he can safely surrender on behalf of the Colony, so large a proportion of its revenue as would be involved in the concession asked for by the Company. The condition of the mines and the terms of the new lease must have been fully considered by the Company before the arrangements now in force were entered into. It is further to be observed that, besides affording special facilities to the Company in supplying it with cheap convict labour, the Colony has been committed to an increased police expenditure, the necessity of which is mainly attributable to the employment of
auch convict labour.
Every possible assistance, indeed, within the very limited means of the Colony, has been given to the Company, and it is not from any indisposition to afford all reasonable assistance in the future, but because he apprehends the possibility of serious embarrass- ment to the Colonial finances if the present request were even in part acceded to, that Lord Kimberley feels unable to entertain it.
His Lordship trusts, however, that the Company will perceive that the solvency of the Colonial Government is intimately connected with the welfare of the Company, and will make a special effort to pay the reserved rent punctually. Such payment may, in the present state of the Company's affairs, be considered to be as properly chargeable to the new capital, as many of the other objects on which it is proposed to expend it.
Although, for the reasons above stated, Lord Kimberley does not at present think it possible for the Company to receive the desired remission of rent, his Lordship will suspend his final decision until he has had an opportunity of consulting Governor Henneway, whose arrival in England is shortly expected.
Bir,
I am, &c.
(Signed)
R. H. MEADE,
No. 3.
Sir C. Murdoch to Mr. Monde.~~~(Reorived December 14.)
Emigration Board, November 18, 1871. WITH reference to your letter of 20th September last, inquiring what steps had been taken by us respecting the arrears of rent and royalty due to the Crown by the Oriental Coal Company, Limited, I have to submit for Earl Kimberley's information, the following report :—
• No. 1.
Tons ewt. £
3,427 0
Less deduction claimed by the Company on account of stock in band
at the commenæement of their lasse, viz.
1,089 18
2,337 7
58 8 8
6,247 d
156 3 6
214 12 2
137 12 6
At 6d. per ton
For coals sold during the year ended December 25, 1870, exclusive of
supplies to Her Majesty's Navy
At 6d. per ton
Less already paid by the Company on account, and now in our hands.
Balance due by the Company..
76 19 8
4. There is, however, a question not yet finally cleared up respecting some sales of coal reported to us by the Company in this country, of which no mention is made in the Colonial returns. Should the Company's liability for these sales be established, the sum due from them will be increased by 351. 10s. 6d. When this point is settled we shall call upon the Company to pay to us either 761. 19s. 8d. or 1127. 10s. 2d., as the case may be, and will apply for Lord Kimberley's instructions as to the disposal of the amount in our hands, and any further receipts from this source.
I have, &c.
Sir,
(Signed)
No. 4.
Mr. Meade to Sir C. Murdoch.
T. W. C. MURDOCH.
Downing Street, November 22, 1871.
IN reply to your letter dated the 18th November, I am directed by the Earl of Kimberley to instruct you to inform the Oriental Coal Company that my letter of the 12th Julyt was not intended to intimate that his Lordship consented to the non-payment by the Company of the rent due from them, which they should accordingly be required to pay, as their delay in doing so has not been anticipated, and is inconvenient to the Colony.
Lord Kimberley has only reserved his decision as to the possibility of a future reduction in the amount of rent.
I am, &c. (Signed) 2. H. MEADE.
Sir,
No. 5.
Sir C. Murdoch to Mr. Herbert.—(Received December 14.)
Emigration Board, December 13, 1871. WITH reference to your letter of 29nd ultimo, I have the honour to transmit herewith, for the consideration of the Earl of Kimberley, an extract of a letter we have
• No. 2.
+ No. 2.
PUBLIC RECORD OFFICE
Reference -
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TILLIC.O.882
TH
| ALLY WITHOUT PERMISSION OF THE
| CÓPYRIGHT PHOTOGRAPH-NOT TO
BE REPRODUCED PHOTOGRAPHIC-
PUBLIC RECORD OFFICE, LONDON