CO882-(2-3) — Page 105

CONFIDENTIAL.

Further Correspondence respecting the Oriental Coal Company's Affairs (Labuan).

(In continuation of Papers printed for the use of the Colonial Office, March 1873

[271].)

My Lord,

No. 1.

Governor Bulwer to the Earl of Kimberley.—(Received April 28.)

Government House, Labuan, February 25, 1873.

IT is some months since I furnished your Lordship with a Report on the progress of the present mining operations at Coal Point.

2. In my despatch of July 30, 1872,* I endeavoured to give a general outline of the past transactions of the Oriental Coal Company. This company succeeded, in 1868, to a position which it must be admitted was a most favourable one. For a very moderate amount of purchase-money-it is stated between 7,001. and 8,0001.-they acquired valuable rights and privileges, and came into possession of premises and property,† the value of which I have heard estimated at three times, and four times, the amount of the purchase-inoney.‡

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3. The mining prospects, moreover, were by no means unfavourable. There were workings open from which a supply of coal could be obtained sufficient for all immediate purposes, until the more permanent resources of the mines could be opened out, and towards this latter object there was a deep (100 fathoms) shaft, already plauned and commenced by an able mining engineer, which had been suspended under the former Company for want of proper means to carry it out.

4. This shaft had been sunk by Mr. Sinclair, the engineer above-mentioned, to a depth The of 35 fathoms. The work had been suspended at the commencement of 1867. shaft, indeed, was full of water, and its further prosecution would necessarily be a work of some time and expense. The best results were to be expected from its successful prosecu- tion; but it was of course available to the new company either to continue it, or, if they thought better, to commence some fresh work of a similar description.

If the enterprise was to be a successful 5. One thing, however, was quite certain. one, the deep coal, by some undertaking of this nature, must be won.

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6. That the continuation of the work in question was not only an available but an advisable project is shown by the fact that this is the work which has now been resumed, and upon which the hope of the Company's enterprise now depends.

7. Unhappily, this obvious duty was neglected. Valuable time was lost, and worse than lost. When Mr. Gray, the new manager, arrived, in June 1871, he found that not only had no attempt been made to reach the deep coal by any other way, but that scarcely- anything had been done towards the renewal of the important work commenced by Mr. Sinclair, the sinking, namely, of the 100 fathom shaft. Not only was the water in the shaft as it had been left in 1867, but the very preliminary operations necessary for raising it, and for renewing the work of sinking, were not half completed.

• Vide page 27 of Confidential Paper printed January 14, 1873 [86].

↑ In despatch of July 30, 1872, paragraph 21, among the details of property acquired by the Oriental Coal Company appears an item of 4,000 tons of coal in hand. "I gave this figure upon the information l'then receiver', but I have lately ascertained from Mr. Gray that it was not 4,000 tons but 1,065 tons of clean coal in stock that the new Company took over from the old; and, moreover, that this was not included in the original purchase. money, but paid for separately by the incoming manager, Mr. Lumsden, to the outgoing manager, Mr. Morel, at, or nearly at, the rate of 4 dollars per ton. I take the first opportunity that has presented itself of rectifying the

mistake.

Mr. Howard has shown me an inventory that was taken of the property at the end ai 1863, showing the estimated value of the buildings, stock, and other such property on the Company's premises. The estimate

amounted to 31,000/

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PUBLIC RECORD OFFICE

Reference :-

EPLIC.O.882

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PUBLIC RECORD OFFICE. LONDON

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