+
26
in which the latter contracts to complete a wharf commenced in September 1870 by the Company. By the agreement the Company are to provide all the materials, and the Government, all the labour, skilled and otherwise, for the work, which is to be completed within six months from 17th June last, unless delayed through defaults of the Company. On the other hand the Company are to pay to the Government, by monthly instalments in advance, the net sum of 2,100 dol.
S. As to the details of the arrangement and the sufficiency or otherwise of the charge made to the Company, I am not in a position to offer an opinion; nor is this of any moment as the work, which is to be finished by 17th December next, will probably be completed, or nearly so, before any communication on the subject could now reach the Governor.
4. I can only remark generally that the Company seem to have been dealt with very liberally, and that the work when completed will be the means of saving them much expense, and at the same time, will greatly facilitate their shipping operations. It would also be of general utility if the public are to share in its use on reasonable terms. No indication of this, however, appears in the papers, and perhaps that is not feasible.
5. But I doubt the policy of Government becoming a contractor for the execution of works for private parties. The circumstances of Labuan, it is true, are very exceptional, and may afford a justification for exceptional treatment in the present instance.
6. If the Company or other private persons in the Colony can usefully employ the labour of convicts in any way which does not interfere with their health and discipline, or with the general regulations on the subject, there may be no objection to the Governor's sanctioning the necessary arrangements for that purpose; but such sanction should not, as it appears to me, be given in cases which render the Government responsible in any way for the results of the labour.
I have, &c.
8. WALCOTT.
27
This, Mr. Bulwer thinks is not a high charge; but, as a convict's work may be uncertain in amount, he considers it would be more satisfactory to the Company and to the Public Works Department, if, in future, all works should be done by contract. If by this is meant that the Government should take contracts from the Company, and become responsible for the execution of their works, such a course I apprehend would be open to objection, and should only be resorted to in case the exceptional circumstances of Labuan admit of no other. With deference, however, to Mr. Bulwer, and in the absence of local knowledge, I should have thought that a better alternative would be to make a small reduction in the charge for convict labour.
I have, &c. (Signed) S. WALCOTT.
(No. 53.)
Sir,
No. 29.
The Earl of Kimberley-to Governor Bulwer.
Downing Street, October 15, 1872.
I HAVE received your despatch No. 62 of the 17th July, inclosing a copy of an agreement you had entered into with the manager of the Oriental Coal Company for the completion by the Convict Department of the Company's wharf.
I
approve of your action in this matter.
I have, &c.
(Signed) KIMBERLEY.
No. 30.
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PUBLIC RECORD OFFICE
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PUBLIC RECORD OFFICE, LONDON
Sir,
(Signed)
No. 28.
Mr. Walcott to Mr. Herbert.-(Received October 12.)
Emigration Board, October 12, 1872.
I HAVE to acknowledge your letter of 2nd instant, with a copy of a despatch from the Governor of Labuan, relative to the charges made to the Oriental Coal Company for police supervision and for convict labour.
2. The despatch is the Governor's answer to the inquiry addressed to him by Lord Kimberley as to the possibility of reducing those charges.
3. It appears that in 1866 it was arranged between the Secretary of State and the predecessors of the present Company that the police force should be increased, and that the Company should bear half the expense of the additional force, and have the services of half of that force. The total amount received by the Local Government under this arrangement, up to the end of 1871, was 9831. 14., of which 6311. 18s. 11d. has been paid by the Oriental Coal Company. The contribution for the year 1872 is estimated
at 2201
4. Governor Bulwer, for the reasons he assigns, is of opinion that, so far as police are required for general purposes at Coal Point, the Company ought not to be called on to contribute towards the expense of the force, but that they ought to bear all the expense when they require the services of the police for special purposes at their works. It appears to me that this is a reasonable and just distinction, and I would suggest that it be adopted,
5. Should Lord Kimberley take the same view, and approve of the Governor's suggestions, it will result that the contribution for the present year will be reduced from 2201. to 871. 10s., plus the additional charge alluded to in the postscript to Mr. Bulwer's despatch, if the Company require nightly a police sentry over the offices instead of a private watchman, as heretofore.
6. With regard to convict labour, the Governor states that the rates at which the Company are charged for discharging and loading-and which range from 18 to 25 cents per ton--are most favourable for the Company, and that he cannot recommend any reduction under this head. I presume that Lord Kimberley will accept the Governor's opinion on the point.
7. The rate for labour supplied for other works than coaling is 25 cents per diem.
Gentlemen,
Mr. Holland to the Emigration Commissioners,
Downing Street, October 16, 1872.
I AM directed by the Earl of Kimberley to inform you that he approves of the letter you propose to send to the Oriental Coal Company requesting payment of G11. 18. on account of royalties on coal raised and sold between 25th December, 1870, and 24th June, 1872.
I have, &c.
(Signed)
H. T. HOLLAND.
No. 31.
Governor Bulwer to the Earl of Kimberley.—(Received October 28.) (No. 65.) My Lord,
Government House, Labuan, July 30, 1872. IN my despatch No. 61 of the 13th Julyt I reported to your Lordship the obstacle that the manager for the Coal Company in this island had recently encountered in the mining operations in which he is engaged, arising from a body of water, tapped during the process of sinking the 100-fathom shaft, which up to the date of my despatch he had been unable to remove.
Notwithstanding his continued exertions the available means for raising the water are still apparently inadequate for the purpose, and it would seem that nothing now remains but to wait till proper pumping machinery can be brought to bear upon it.
3. At this conjuncture it will perhaps be well that your Lordship should understand the general position of the Company's affairs in the island, and in order that this position may be better understood 1 propose to pass in review the nature and extent of the Company's operations since they took over the management of the mines in 1868.
3. This seems to me the more advisable as the subject is referred to in the papers which accompanied your Lordship's despatch No. 14 of the 9th February, and I scarcely think it has been so dealt with in those papers as to enable your Lordship to form that complete and correct conception of the condition and prospects of the Company's affairs which it is important you should possess.
4. Whenever the history of the non-success of the Labuan mines during the past twenty-four years comes to be fairly and fully considered, I believe that one of the main causes of their failure will be found in the practice, delusive at first, but ruinous in the
† No. 21.
I No. &
• No. 93.