CO882-(2-3) — Page 63

Owing to the Com- pany making more

money by using their coal-steamers in other

traffic.

8

it was so far different from the "fresh-cut coal" of the contract that nearly 200 tons were rejected at the Admiralty Depot at Hong Kong.

33. In this case, as Her Majesty's Government had done everything they could for the Company, I asked the captain of the steamer why he had allowed the cargo to remain unshipped at Labuan for more than six months after he knew it was waiting to be taken to Hong Kong, and he frankly explained that the Company made much more money by using their coal-steamers (the "William Miller" and the "Vine") to convey rice from Saigon to Singapore than by taking coal away from Labuan.

34. On the whole, believing that the temporary want of commercial success and the waste of capital of which the Directors complain must be attributed to causes for which they are themselves responsible, I cannot agree with them that it is therefore unreason- able and unjust to have to pay their rent.

35. Furthermore, I am of opinion that the real elements of commercial success have been steadily developed at the colliery, in spite of the mistake of the Directors.

36. I have shown that, at the end of 1970, the extent of coal opened up and the number of working-places had been so increased as to admit of 2,000 tons of coal per month being raised if labour had been obtained. In addition to this, the Company Progress in mode of coaling, and place of

obtained, on most favourable terms, a site for a wharf and coal stores at Victoria Harbour. Before Mr. Lumsden left he was able to see-for the first time-a steamer coaled at a wharf in Labuan. When this work is completed, the largest steamer in the China Sea can be coaled in a few hours in a safe harbour, instead of incurring the risk and delay of being coaled by lighters at the open roadstead at Raffle's Anchorage.

onling.

37. The mode of coaling, as well as the place for coaling, has also improved. The managers of the former coal companies complained that, when a steamer came for coal, it was necessary to take the workmen out of the mines to carry the baskets of coal on board. The Duke of Buckingham authorized me to supply convict labour to the Company for this purpose. In making the contract with Mr. Lumsden on this subject, fixed the price at the lowest rate that had ever been paid for such work in Labuan, that is 25 cents per ton. Mr. Howard assures me that the Company save much money by Hence regularity and this plan. Its real value is, however, in the regularity and rapidity of coaling that it insures, and the important fact that it does not disturb the ordinary work of the colliery. 38. This latter fact brings me to the great change that Mr. Lumsden accomplished: namely, the improvement in the quality and reputation of the coal.

rapidity of coaling.

Great improvement in

the quality and

39. When I arrived in Labuan in 1867, I found the reputation of the coal so bad character of the coal. that, in announcing to the Duke of Buckingham my hope of being able to make the settlement self-supporting, I reported that I could expect no assistance from the coal trade, but that I should obtain a revenue by relying solely on the other resources of the Colony, (Despatch, February 1868.)

in quality was made.

40. On Mr. Lumsden's arrival in 1868, he set to work to improve the character of How the improvement the coal. This he did by hewing the coal in a different manner, by avoiding the temptation of taking the superficial coal, and by instructing the native workmen to handle it properly. No doubt the fact that his coal-hewers were not called away from their work to load ships, was one of the advantages of the convict labour which enabled him to train his regular labourers.

coal.

41. The first change I noticed was in the appearance of the coal. His blocks were larger and were clean cut. A striking difference was observable between a heap of coals obtained by the present Company and a heap of coal obtained by their predecessors. Better reports on the Gradually the reports from engineers of the Royal Navy began to be less unfavourable. Every year, from 1868 to the beginning of 1871, the reports became more favourable. The last report I received was from the engineer of the Peninsula and Oriental steamer "China," the gist of which appears to be that the coal raised by Mr. Lumsden was as report very favourably. good as the best quality of English coal, and far better than some varieties of English coal

consumed in the East.

Peninsular and Oriental Company

Reputation of coal at Saigon.

Demand at Saigon.

Labuan coal-field inexhaustible.

Now pit.

•

42. Recently, I was informed by Admiral Dupré, at Saigon, that the improvement in the quality of Labuan coal was recognized by the officers of the Imperial Navy; and he therefore anticipates a large demand for it in Cochin China. Subsequently, I was able to give to M. Larrien, the owner of some steamers in Saigon, a letter of introduction to the Managing Director of the Coal Company, with the object of opening a trade between the two Colonies, on the basis of taking 8,000 tons of Labuan coal every year.

48. Whilst Mr. Lumsden thus established the good quality of the Labuan coal, he also showed that the coal-field was practically inexhaustible- -containing as it does 200,000,000 of tons of workable coal.

44. As to the new pit to which the Directors refer, it was commenced by the late Company, but abandoned, after being sunk over 30 fathoms, owing I believe to the want of proper engines for clearing it. This important work was recommenced by

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882

8

on the "fresh-cut coal" of the contract that nearly 200 tons were by Depot at Hong Kong.

Her Majesty's Government had done everything they could for the captain of the steamer why he had allowed the cargo to buan for more than six months after he knew it was waiting to be and he frankly explained that the Company made much more >al-steamers (the William Miller" and the "Vine") to convey gapore than by taking coal from Labuan.

away

believing that the temporary want of commercial success and the ch the Directors complain must be attributed to causes for which ponsible, I cannot agree with them that it is therefore unreason- to pay their rent.

I am of opinion that the real elements of commercial success have

at the colliery, in spite of the mistake of the Directors.

that, at the end of 1870, the extent of coal opened up and -places had been so increased as to admit of 2,000 tons of coal if labour had been obtained. In addition to this, the Company rable terms, a site for a wharf and coal stores at Victoria Harbour. aft he was able to see--for the first time-a steamer coaled at a en this work is completed, the largest steamer in the China Sea bours in a safe harbour, instead of incurring the risk and delay of s at the open roadstead at Raffle's Anchorage.

coaling, as well as the place for coaling, has also improved. The

• coal companies complained that, when a steamer came for coal, it the workmen out of the mines to carry the baskets of coal on Buckingham authorized me to supply convict labour to the JC. In making the contract with Mr. Lumsden on this subject, I wwest rate that had ever been paid for such work in Labuan, that Mr. Lioward assures me that the Company save much money by lue is, however, in the regularity and rapidity of coaling that it ant fact that it does not disturb the ordinary work of the colliery. t brings me to the great change that Mr. Lumsden accomplished: ent in the quality and reputation of the coal.

ed in Labuan in 1867, I found the reputation of the coal so bad o the Duke of Buckingham my hope of being able to make the Ling, I reported that I could expect no assistance from the coal d obtain a revenue by relying solely on the other resources of the 'ebruary 1868.)

den's arrival in 1868, he set to work to improve the character of d by hewing the coal in a different manner, by avoiding the the superficial coal, and by instructing the native workmen to o doubt the fact that his coal-hewers were not called away from po, was one of the advantages of the convict labour which enabled r labourers.

ge I noticed was in the appearance of the coal. His blocks were cut. A striking difference was observable between a heap of coals nt Company and a heap of coal obtained by their predecessors. from engineers of the Royal Navy began to be less unfavourable. 3 to the beginning of 1871, the reports became more favourable. ved was from the engineer of the Peninsula and Oriental steamer which appears to be that the coal raised by Mr. Lumsden was as y of English coal, and far better than some varieties of English coal

as informed by Admiral Dupré, at Saigon, that the improvement in coal was recognized by the officers of the Imperial Navy; and he large demand for it in Cochin China. Subsequently, I was able to owner of some steamers in Saigon, a letter of introduction to the the Coal Company, with the object of opening a trade between the

of taking 8,000 tons of Labuan coal every year. mmadem thus established the good quality of the Labuan coal, be conl-field was practically inexhaustible — containing as it does f workable coal.

pit to which the Directors refer, it was commenced by the late med, after being sunk over 30 fathoms, owing I believe to the es for clearing it. This important work was recommenced by

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C

.882

COPYRIGHT

PHOTOGRAPH—NOT TO

BE REPRODUCED PHOTOGRAPHIC- ALLY WITHOUT PERMISSION OF THE

2 PUBLIC RECORD OFFICE, LONDON