PUBLIC RECORD OFFICE
To Is In Is It I
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high, and that the present Governor should be called on to put them on a more just and equitable footing for the future.
There was another source of expense to the Company in the late Governor's time which requires explanation. The Company's late manager engaged himself in making a road to the Governor's house, for which the Company have been charged and have paid 4411. 16s. 2d., or thereby. Whether this road was executed by convict or free labour the Directors are not yet advised, but in either case the cost of the road was not a lawful or just or equitable charge against the Company. The Directors, therefore, beg that this matter may be inquired into by the Colonial Office, and that justice be rendered to the Company in respect to it.
The above observations are necessarily somewhat crude, partly from the want of full information not having yet been obtained in regard to several of the matters, and partly from the fact that I have been necessitated to draw up this statement in London in the absence of the Company's books and papers which are at the Company's head office in Scotland.
There yet remains to be stated, as also suggested by your Lordship, the proposition which I ventured to make for an amicable settlement of the question of rent now pending betwixt the Crown and the Company: namely, that the Crown should discharge or postpone the money rent for two years from June last, in which case the Company would not disturb the payments made prior to this date, all future charges for police, hospital, and convict labour, however, to be adjusted by the present Governor and present manager of the Company, subject to the approval of the Colonial Government, and the rent for the single jetty to be reduced to a nominal sum of 1s. a year.
I say the money rent to be discharged or postponed, because if the Company succeed, the money rent to this date will not be, in that event, of the least importance.
And on the above being agreed to, the Company would undertake to give one-half of their present output of coals, say 3,000 tons a year; aye, and until the new pit is ready to be worked, which will be in two years or thereby, by which time the Directors expect to be able to give an unlimited supply of coals, which will prove the best security to the Government, for everything on the ground is liable for the rent.
I have only to add that the Directors will be ready at all times to give the fullest information in their power on all matters connected with the mines or the Company's business, either to the Colonial Government or to the Governor of Labuan.
My Lord,
No. 15.
I have, &c.
(Signed) WM. LINDSAY.
Mr. Wood to the Earl of Kimberley.-(Registered August 5.)
The Oriental Coal Company (Limited),
55, Bernard Street, Leith, August 3, 1872. MR. LINDSAY has forwarded to me copy of a letter addressed to you on the subject of the Labuan collieries, and I observe that Mr. Lindsay, in the absence of the Company's books, has made a mistake in stating that no money has been paid by the Government for the use of lighters in carrying off the coals to Her Majesty's ships; and I have been directed to inform your Lordship that the stipulated allowance has been duly paid.
I have, &c.
(Signed)
No. 16.
ALEX. WOOD, Secretary.
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2. First. The Company complain that the late Governor required them to pay a rent of 1001. a year for the land on which they had built a pier. The rent in question was fixed by the Earl of Granville's despatch of 2nd June, 1870. Considering the circum- stances of the Colony and the apparent prospects of the Company at that time, such a rent could not be regarded as excessive. Whether it should be now reduced, as the Company propose, to a merely nominal sum, must depend on the financial position of the Colony, of which we are imperfectly informed.
3. Secoud. The Company represent that Governor Hennessy misled them as to the character of their manager. But as the manager was selected by the Directors in this country, and as there is no reason to suppose that the Governor intentionally misled them on the subject, they have no just ground for complaint on that head.
4. Third. They object to the charges for police and hospitals, which have amounted in all to 1,3651. 28. 10d. We have no information on these points, and would submit that they should be referred to the present Governor. As the Company were allowed to employ convicts, some payment for police and for medical attendance must have been a necessary part of the arrangement.
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5. Fourth. They ask for an inquiry into the rates paid for convict labour. The convicts are not employed in mining, but in loading ships and moving coal, and are paid, I believe, 25 cents a ton. The price appears far from excessive. But Lord Kimberley will probably refer that question also to the Governor.
6. Fifth. They complain that they were required by Mr. Hennessy to make a road to the Governor's house, at an expense of 4411. 168. 2d. I presume that Mr. Hennessy should be asked for an explanation on this point.
7. Passing, however, from these details, the main question remains in what way the Company is to be dealt with in the matter of the rent now due, or to become due, from them. On 24th June last, three half-yearly payments, amounting in all to 1,5001, were due. The Company state that they are quite unable to pay that amount, having been obliged to raise money on preferential shares at an interest of 25 per cent. per annum, of which only 9,000l. remains available for their new works. It is easy to believe that this amount will not be more than enough for that service, and for other pressing demands which cannot be put aside, and that to insist at this moment on payment of the Crown's rent would, therefore, practically put an end to the Company. But if that were the result, it is scarcely probable, considering the large sums (not less it is said than 300,0001.) sunk in the undertaking by the present Company, and its two predecessors, that any new Company would be found to take up the business. In that case either the hope of finding coal at Labuan must be abondoned - which for many reasons would be much to be regretted-or the Government must undertake itself to work the mines, which is obviously undesirable.
8. Under these circumstances I would submit for the Earl of Kimberley's con- sideration, whether the application of the Company might not be so far complied with as to suspend for the present, and till the 24th June, 1874, payment of the rent due under their lease; the Company paying instead royalty at 6d. a ton on all coal raised by them from 24th June, 1870, to 24th June, 1874. The suspension of the rent not to imply an abandonment or remission of the amount now due or to become due, but merely the temporary relief to the Company of not being compelled to pay it while their operations are unproductive. But the whole amount would become payable on 24th June, 1874, or sooner if the Company desired it, the amount received in the meantime as royalty being allowed as a set-off. Under this arrangement, if the expectations of the Company are realized that the works they are about to commence will render the undertaking a very profitable concern-the Crown will lose nothing more than the interest on the deferred rent, if Lord Kimberley should be pleased not to insist on payment of interest.
I have, &c. (Signed) T. W. C. MURDOCH,
C.O.
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Bir,
Bir Clinton Murdoch to Mr. Herbert-(Received August 10.)
Emigration Board, August 9, 1872. I HAVE to acknowledge your letter of 5th instant, with one from the Oriental Coal Company, explaining the present position of the Company, and praying that, in consideration of the difficulties in which they find themselves, the Government will discharge or postpone the money rent due from them for two years from the month of June last. They also specify certain points on which they think they have ground of complaint against the Local Government. To these I shall first advert.
(No. 326.)
Sir.
No. 17.
The Earl of Kimberley to Governor Hennessy.
Downing Street, August 31, 1872. 1 TRANSMIT to you copies of two letters I have received from the Oriental Coal Company, in which they complain of certain transactions which they allege injuriously affected their interests during your administration of the Government of Labuan.
• Nos. 14 and 15,