CO882-(2-3) — Page 64

9

Mr. Lumsden in 1870, and the foundations he laid are being judiciously availed of by the present manager. This pit will win-including the existing mines-from No. 1 seam, 250 yards of coal face; from No. 3, 150 yards; from No. 4, 156 yards: making a total of 556 yards. This should give 200 working-places, from which, with 250 trained men, Mr. Lumsden Should turn out calculated in his last report that 60,000 tons of coal can be turned out every year.

80,000 tons a year,

45. I need hardly add that, with half that output, the Oriental Coal Company would Financial prospec be realizing a handsome fortune.

46. This work should be completed in a year and a half after the new engine begins

to clear out the pit; and, in the meantime, the existing workings ought, with common prudence and economy, to pay the current expenses, including the 1,000l. a year rent.

of the company.

47. Though I cannot therefore recommend Lord Kimberley to make any reduction No change in the

may be reconsidered.

in the rent or any modification in the sense of substituting a royalty for an annual raat bother ch payment, I think the Directors are entitled to have the charges for the Police and for convict labour carefully considered.

48. These two charges were frequently brought to my notice by Mr. Lumsden, the Charge for Police. late manager. For the charge in aid of the Police Force, the late Coal Company are responsible-and it was one of their engagements taken over by their successors.

49. The late Coal Company urged my predecessor, Governor Callaghan, to increase the Police Force, offering to pay one moiety of the additional cost. This offer was accepted. When I raised an armed Police Force it was arranged that the Coal Company should only reimburse one half the cost of the Police actually employed at the colliery station.

49a. In transmitting my estimates for the year 1871 (Despatch No. 53, Norem- ber 23, 1870), I ventured to draw Lord Kimberley's attention to this reimbursement, and expressed the opinion that, in course of time, it may be dispensed with. It amounts

at present to a charge on the Company of about 2501. or 3001, a year.

50. Whether the time has come for dispensing with this payment, is, however, a question that I think should be left to Governor Bulwer to decide.

51. I had directed one of the European sergeants to take charge of the colliery station; and I made some minor Police arrangements, which the manager of the Coal Company had asked for,-but the actual effect of these changes can only be seen by those who are now in the Colony.

52. The charge for convict labour is extremely fair. One test of it is to be found in Charge for convict

the fact that some of the Chinese merchants have begged Mr. Howard to give them such labour. labour, at even higher rates than the Coal Company pay:

53. For obvious reasons connected with convict discipline I declined to sanction the hiring out of the convicts except to the Coal Company. They have therefore a monopoly of what is really the cheapest and most regular labour in Labuan.

54. At the same time it may be fairly left to Governor Bulwer to decide how far convict No labour may not be given to the Coal Company at lower rates than the present ones. doubt if he can see his way to allowing the Company to employ convicts in hewing con! for the bare cost of their supervision and maintenance, it will increase the output and considerably diminish the cost price of the coal,

55. This brings me to the last observation of the Directors-that if the present Anto realt of present

Company abandoning any other source the works. Company withdrew, the Government would not get any money rent from for years.

56. In such a contingency I am confident that Mr. Howard would work the mines as a The Labuan Govern part of the Crown property, by the aid of convict labour, in such a way as to double the the mines profitably. revenue of the settlement, and to supply steamers with abundance of good coal at much

less than the price now charged for it in Labuan.

(No. 14.) Sir,

I am, &c. (Signed) J. POPE HENNESSY.

No. 8.

The Earl of Kimberley to Governor Bulwer.

Downing Street, February 9, 1872. WITH reference to Governor Hennessy's despatches of the numbers and dates stated in the margin, I transmit to you copies of correspondencef between the Oriental Coal

No. 15, June 29; No. 16, July 1; No. 22, July 11; No. 29. July 23, 1871,

+ Emigration Commissioners, June 28, No. 1; Colonial Office, July 12, No. 2; to Emigration Commissioners, September 26; Emigration Commissioners, November 18, No. 3; to Emigration Commissioners, November 22, No 4: Emigration Commissioners, December 18, No. 8: to Mr. Hennessy, December 20, 1871, No. 6: Mr. Hennessy, January 25, No. 7; to Emigration Commissioners, February 9, 1872, No. 10.

[86]

D

ment could then work

PUBLIC RECORD OFFICE

Reference :-

LTC.O.882

2

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO