CO882-(2-3) — Page 76

Mr. Herbert,

25

No. 26.

Report by the Emigration Commissioners.

October 8, 1872. IN Mr. Meade's letter of the 3rd ultime, the Company are informed that the rent will be suspended to the 24th June, 1874, the Company paying instead a royalty at 6d. a ton on all coal raised from 24th June, 1870, to 24th June, 1874. I presume that by this concession it is intended merely to extend the time from which royalty is to be paid, and on the same terms as prescribed by the Company's lease of 11th March, 1869. By the lease, royalty is payable only on coal (not being slack or screenings) raised and sold, with a drawback on coal supplied for the use of Her Majesty's navy and ships under contract to Government. If Mr. Meade's letter be taken literally, the Company would have now to pay 2551. is. 9d. on 10,203 tons 11 cwts. raised between 1st of January, 1871 (the date up to which royalties have been paid, and when the rent was to have commenced), and 30th June last. But if the agreement is to be followed, they would have to pay only 611. 188. on 2,476 tons sold, exclusive of the quantity supplied to the Government. presume the latter construction is the one intended. The matter is not very material to the Crown, as whatever payment is now made will be on account of suspended rent. The Company, however, would probably object to the immediate payment of the larger sum.

In this view I have prepared, and submit for consideration, the accompanying draft of a letter which, if it meets Lord Kimberley's approval, we may be instructed to send on to the Company.

Gentlemen,

Inclosure in No. 26.

(Signed) S. WALCOTT.

Draft of Letter to the Oriental Coal Company.

Downing Street, October 1872. WITH reference to the arrangement made by the Secretary of State for relieving the Company from the immediate payment of the rent due by you to the Crown_subject to the payment, ad interim, of a royalty of 6d. a ton on the coal raised by you in Labuan, I have to acquaint you that it appears by the official returns received from the Colony that the quantity of coal raised and sold for value, exclusive of supplies to Her Majesty's navy, between the 25th December, 1870, and 24th June last, was as follows:-

་

Half-year, to June 24, 1871

33

December 25, 1871 June 24, 1872

19

Total.

Tonu

978

450

1,048

2,476

The royalty on this quantity at 6d. per ton would be 617. 188., and I have accord- ingly to request that you will cause that amount to be paid over to this Board at your carliest convenience as a payment on account, to be allowed to the Company hereafter on the due liquidation of all arrears of rent in accordance with the arrangement communicated to you by Mr. Meade's letter of the 3rd September, 1872.* This payment will be received by the Commissioners without prejudice to an outstanding question respecting a balance of royalties prior to the 25th of December, 1870, still unsettled.

I have, &c.

No. 27.

Sir,

Mr. Walcott to Mr. Herbert.—(Received October 9.)

Emigration Board, October 8, 1872. I HAVE to acknowledge your letter of 2nd instant, inclosing the copy of a despatch from the Governor of Labuan relative to the construction of a wharf for the Oriental Coal Company.

2. The Governor transmits an agreement, dated 15th June last, made, with his sanction, between the Manager of the Oriental Coal Company and the Surveyor-General,

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PUBLIC RECORD OFFICE

C.O.

Reference :-

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