CO882-(2-3) — Page 89

PUBLIC RECORD OFFICE

Reference :-

LICO. 8

-882

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ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

50

on the principle that the Company should bear all the expenses attendant upon the special services performed by the police for the Company.

Lord Kimberley is prepared to sanction this arrangement coming into force from the beginning of the year 1873, on learning from the Directors that they acquiesce in Mr. Bulwer's proposals by which the contribution of the Company would be reduced to 871. 10%., with the additional charge alluded to in Mr. Bulwer's postscript, if the Company require nightly a police sentry over the offices instead of a private watchman as

I am, &c.

heretofore.

Sir,

No. 35.

(Signed) H. T. HOLLAND.

Mr. Wood to Mr. Holland. (Received November 15.)

The Oriental Coal Company (Limited),

55, Bernard Street. Leith, November 14, 1872. I AM desired by the Directors of the Oriental Coal Company, Limited, to acknow- ledge receipt of your communication to me, of date 2nd current,* with the accompanying copy of Mr. Bulwer's observations

1

The Directors concur in the proposed reduction of the charge for police from 2301. to 877. 10., with the additional charge alluded to in Mr. Bulwer's postscript if the Company require nightly a police sentry as stated by Mr. Bulwer.

The Directors feel that the former charges for police against this Company were exorbitant and unwarranted, but for the sake of peace they agree to commence the reduced rate as from the end of the current year.

As to the charges for convict labour the Directors agree to the arrangements suggested by Mr. Bulwer that, in future, all works should, as far as possible, be done by contract.

As to the details stated by Mr. Bulwer the Directors have written to their manager at Labuan for certain explanations, and on hearing from him in answer, they will be prepared to state definitely what they think is best to be done.

Mr. Bulwer states "The Company who pay 15 or 23 cents., as the case may be, to the Public Works Department for every ton so put on board Her Majesty's ships thus retain a surplus of 25 or 35 cents. per ton which helps to meet their annual expenditure for lighterage."

The Directors are not satisfied that this is a sufficient charge for lighterage; at all events this is a matter on which the Directors require further information, and accordingly, until they hear again from their manager in Labuan, they cannot definitely agree to what Mr. Bulwer proposes on this head.

In connection with these charges for loading Her Majesty's vessels with coals, and for lighterage, the Directors desire to point out to Lord Kimberley that the lighterage was only to be paid when Her Majesty's ships could not come alongside of any wharf or jetty erected or to be erected at Labuan.

The Government therefore have a direct pecuniary interest in the erection of the wharf or jetty now being erected by the Company at Labuan. In any view the Directors submit that it was not the interest of the Government to impose any unnecessary burdens on the Company in their endeavour to extend their works at Labuan for shipping the coal raised from the mines, and from which the Company were bound to supply coal to Her Majesty's Navy at 11. per ton.

As formerly pointed out in the Company's communication to Lord Kimberley, of date 27th July last,† certain obligations were imposed on the Company, for which certain privileges were conferred on the Company. One of the privileges was that the Company had a right to acquire surface land at a price of 11. per acre, the quantity, however, not to exceed 1,000 acres. The Company had also the privilege to occupy rent- free any land required for the construction of roads, railroads, or tramways necessary for or connected with the working or carrying on of the coal mines and premises or any of them, and to occupy at a rent to be fixed by the Governor any land required for the construction of wharves, quaya, or jetties for the loading or unloading of vessels, or the loading or shipment of coal, the water frontage not to exceed 500 yards. The Company had also the right to purchase, with consent of the Crown, any land abutting on the sea-shore, or on any harbour or creek for all or any of the purposes of the Company at 17. per acre.

• No. 84.

+ No. 14.

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Now, the late Governor Pope Hennessy exacted as rent for the ground for a single jetty the sum of 1001, yearly, and this rent as formerly stated he made payable in advance.

The Directors do not desire to repeat all the circumstances referred to in their former communication, but they submit that the above rent is not warranted by the nature of the bargain betwixt the Government and the Company.

The Directors of the Company also submit that the rent should, for a single jetty, not exceed a nominal sum of 1s. yearly.

If the Company were able to pay a higher rent the Directors would not be so urgent on this or any other point, but as the Company are yet struggling for their very existence they feel that it is absolutely necessary to economize their yearly expediture in every department, more especially where the charges are either inequitable or unjust.

The Directors, therefore, respectfully beg that Lord Kimberley will deal with this matter in the same just and equitable manner in which he has dealt with the matters betwixt the Government and the Company.

I have, &c. (Signed) ALEX. WOOD, Secretary.

(No. 56)

No. 36.

The Earl of Kimberley to Governor Bulwer.

other

Sir,

Downing Street, November 15, 1872. I HAVE the honour to acknowledge the receipt of your despatch No. 65 of the 30th July,* reviewing the general position of the affairs of the Coal Company.

I have read your clear statement with much interest, and have only to express my hope that your anticipations as to the success of the Company, if its operations are carried on with energy and prudence, may be realized and may justify my decision to afford them as much assistance as possible.

(Confidential.) Sir,

I have, &c.

(Signed)

KIMBERLEY.

No. 37.

The Earl of Kimberley to Governor Bulwer.

Downing Street, November 15, 1872.

I HAVE the honour to acknowledge the receipt of your Confidential despatch of the 13th August,† treating of the practicability of the working of the coal mines by Govern-

ment.

I am much obliged to you for your full and careful examination of this question. I concur with you in the opinion that, if a Company can bring the mines into a paying condition, that method of developing the coal trade is, on various grounds, preferable to the Government taking the work in its own hands.

I have, &c. (Signed) KIMBERLEY.

Sir,

No. 38.

The Earl of Kimberley to Governor Pope Hennessy.

Downing Street, November 16, 1872.

I HAVE received your despatch No. 123 of the 5th October,‡ and I have to convey to you my thanks for your full report on the Oriental Coal Company, and its connection with the Government of Labuan.

• No. 31

+ No. 39.

I

am, &c.

(Signed)

KIMBERLEY.

No. 33.

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