CO882-(2-3) — Page 61

5

together having a more anxious desire to prosecute the enterprise than the present shareholders of this Company.

The Directors therefore do earnestly trust that the matter will be allowed to stand over at least until the late Governor of Labuan arrives.

Sir,

No. 6.

Mr. Meade to Mr. Hennessy.

Downing Street, December 20, 1871.

I AM directed by the Earl of Kimberley to transmit to you, with reference to his Lordship's conversation with you on the 12th instant, an extract of a letter from the Oriental Coal Company protesting against being required to pay the rent which became due on their lease of the coal mines in Labuan from the 30th of June last.

Lord Kimberley would be glad if you would take this letter into consideration and furnish him with a full statement, in writing, of your views on the subject.

I am, &c. (Signed)

R. H. MEADE.

No. 7.

PUBLIC RECORD OFFICE

Reference :-

TUTTIC.o.

·882

2

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC. COPYRIGHT PHOTOGRAPH-NOT TO

Sir,

Mr. Hennessy to Mr. Meade.-(Registered January 27.)

2, Savile Row, London, January [25], 1872.

I HAVE the honour to acknowledge the receipt of your letter of the 20th of December, 1871,† inclosing for my consideration an extract of a letter, from the Oriental

Coal Company, respecting the rent of the Coal Mines at Labuan.

2. The rent in question is 1,000l. per annum, payable in half-yearly instalments. Rent, 1,0007. The first instalment became due in June 1871, and the second in December 1871;

making 1,000%. now owing by the Coal Company to the Government.

3. This rent is payable under a lease granted by the Crown to the Coal Company Payable under lease of

in 1969, when they purchased the property for 7,500l. The Company have however 1800. been in possession since May 1868. The existing lease differs in some particulars from

those held by former Labuan Coal Companies, but, on the whole, it is more favourable

to the Company than any preceding lease.

4. Though every part of the lease favourable to the lessees, came into operation in First payment

1869, it was provided that the annual rent of 1,000l. should not become payable until postponed till 1871. | the year 1871.

5. It is this rent which the Directors are now unwilling to pay. They think that, Objections to pay it. looking to all the circumstances of the case, the demand is unreasonable and unjust.

They say the payment of this large sum should be postponed until the mines are capable

of producing rent; and they offer in the meantime a royalty of 6d. per ton on the coals Proposes nominal actually produced.

6. They express a wish to receive explanations as to my reports on the mines, and on the charges for Police and convict labour.

royalty instead of rent.

7. They are decidedly of opinion that the published reports of the prosperity of the Mioes not prosperous. mines, are the very reverse of the actual state of matters.

■ month.

8. They observe that though their original capital is expended and their preference Capital expanded. stock is being rapidly exhausted, yet that the mines at the time they write (December, Outpal only 200 or 1871) are not producing more than 200 or 300 tons of coal a month; that the pits have 300 tons of coal been flooded from the heavy rains; that unless new pits are sunk in a better situation it is fooded. is useless to prosecute the mines; that they have begun to sink new pits which require needed to sink new additional capital and a reasonable time before they can be got to yield coal.

More capital and time

pitu

9. They think that, if the present Company came to an end, the Government would No rent to be got from not get any money-rent from any other source for years.

any other souros if present Company fail.

10. In making these remarks, the Directors seem to me to take too gloomy a view This is too gloomy i of the condition and prospects of the colliery. No doubt at the time they write, the view of the situation. mines were not producing more than 200 or 800 tons of coal a month. But this falling-

off from the monthly output of 600 or 800 tons, that I have witnessed, was not due to The mall output noi

due to defect in the any defect in the colliery. It is mainly owing to the fact that, for the preceding alllery. twelve months, the Company had so often failed to pay the workmen, that the Scotch Booth miners idia, miners were for nearly half a year quite idle; and the Chinese coal bewers were native soul-hewaza' not frequently thrown out of employment. During this time also, the Directors recalled an op experienced manager, Mr. Alexander Lumsden, leaving a newly appointed clerk in an experienced charge of the works for a considerable period. When the present manager, Mr. Gray ang rosalbed.

[86]

• Inclosure in No. 5.

+ No 6.

working, beesmDO