CONFIDENTIAL.
Further Correspondence respecting the Oriental Coal Company's Affairs (Labuan).
(In continuation of Papers printed for the use of the Colonial Office, January 14, 1873
[86.]
PUBLIC RECORD OFFICE
Reference -
TICO.882
2
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
No.
Date.
1
Sir C. Murdoch
Jan. 22, 1873
2
3
SUBJECT.
Remarking on the controversy between the Oriental Coal Company and Mr. Hennessy, and suggesting that it is not desirable to continue it; also pointing out that there is at present only one question ripe for settlement, viz., the rent for the wharf
To the Secretary of Jan. 31, 1873 Stating that Lord Kimberley cannot furnish any docu-
the Oriental Coal
Company
ments relating to the charge for lighterage; that he is unable to consent to a reduction of the rent psid by the Company for wharfage, and that he sees no advantage in prolonging the controversy between the Company and Mr. Hennessy
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..
To Governor Bulwer.. Jan. 31, 1873 Transmitting further correspondence with the Oriental Coal Company on points connected with their operations in Labuan
Page
Sir,
2
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2
4
Governor Bulwer
Dec. 30, 1872 Furnishing information on questions raised by Mr. Lindsay,
a Director of the Oriental Coal Company
2
5
Sir C. Murdoch
March 3, 1873 Reporting on the charges made against the Coal Company for police, convict labour, rent of wharf, hospital accom- modation, and the mismanagement of the mine. by Mr. Lumsden
5
To the Secretary of March 11, 1873 Transmitting copy of a despatch from Governor Bulwer
the Oriental Coal
reporting on various questions raised by Mr. Lindsay in his letter of the 27th July, 1872..
Company
6
No. I.
Sir C. Murdoch to Mr. Herbert:-(Received January 23.)
Emigration Board, January 22, 1873. I HAVE to acknowledge your letter of 15th instant, with a printed copy of the correspondence on the subject of the lease of the coal mines in Labuan to the Oriental Coal Company. You call our attention to two letters from the Company of 20th and 23rd December,* included in this correspondence.
2. The letter from the Company of 20th December is an answer to Mr. Pope Hennessy's letter of 5th October last.t The Company had complained that, among the causes of their difficulties was the expenditure which Mr. Hennessy had improperly required them to incur for police, hospitals, convict labour, roads, &c. Mr. Hennessy gave a peremptory, and, as it appeared to me, a sufficient, contradic- tion to this statement; but having done so, he went on to explain what appeared to him the real causes of the Company's failure, which included charges of jobbery and mismanagement, the purchase of unsuitable and useless machinery, and the raising of money at extravagant interest. The Company are indignant at these charges- the truth of which they deny-and they give statements of the expenditure of their former manager, Mr. Lumsden, for wages, &c., amounting to 35,8751-of the manner in which their capital of 40,000l. was expended-and of the interest they have paid for borrowed money in Labuan (which is very small), in refutation of Mr. Hennessy's charges. They also complain that Mr. Hennessy in writing to Sir J. D. Elphinstone, the Chairman of the former Company, expressed a very favour. able opinion of their manager, Mr. Lumsden, whom they originally sent out, but whom they afterwards dismissed.
It will scarcely, I presume, be considered advisable to continue the controversy between the Company and Mr. Hennessy. It would be extremely difficult, by correspondence only, to come to a conclusion on the points in dispute; and even if that could be done, it would lead to no practical result. The Company are satisfied with the arrangement now made as to police and hospital charges, as well as for the future payments for convict labour. They also express their approval of the present Governor, whom they appear to regard as a sort of head overseer of their undertaking. "They believe," they say, "that Governor Bulwer is alive to his duty, and is disposed to act intelligently:" and they "sincerely trust that Governor Bulwer will continue to observe what is being done at the mincs, the result of which the Directors will at all times be glad to learn." For the present, therefore, it may be assumed that there is peace between the Company and the Governor.
The only practical question at present ripe for settlement is the rent for the wharf. The Company say that by the lease they were "entitled to 500 yards of water frontage," and as they have only got 400 feet they wish the rent for the wharf to be kept separate from rent for two lots of land they hold in rear of it. The lease provided that the Company should be allowed to occupy any land required for wharves, &c., "not exceeding 500 yards," at a rent to be fixed by the Governor. The rent was fixed by Lord Granville at 1001, a year; a rent which cannot but be
• Vide Confidential Paper, January 14, 1873, pages 64 and 60 (Nos. 48 and 49).
page 40 (No. 33). [271]
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