CO882-(2-3) — Page 94

PUBLIC RECORD OFFICE

Reference :-

C.O.882

2 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

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do not know what the Sultan has done. He has made no claim on the Directors of this Company.

There are one or two matters, such as the road made at the Company's expense to the Governor's house, on which Mr. Hennessy has made certain explanations, but they are not satisfactory.

The Directors have only to add, that so long as they can, they will endeavour to do their duty to bring the Labuan Coal Mines into working order. The old companies encountered many difficulties, principally with having had bad managers at Labuan; but the Directors are not aware that they ever had the misfortune to differ from the Governor for the time being in regard to the state of the mines and the character of the individual whose duty it was to work them. At present the Directors believe that they have a good manager, and they also believe that Governor Bulwer is alive to his duty and is disposed to act intelligently. The Directors have again to thank Lord Kimberley for the copies of the communications from Governor Bulwer, and ex-Governor Hennessy, and to state that so far from shrinking from any investigation or discussion as to the whole of this business, they can freely state that they desire the fullest inquiry, and sincerely trust that Governor Bulwer will continue to observe what is being done at the mines, the results of which the Directors will at all times be glad to learn.

Sir,

I have, &c.

(Signed) ALEX WOOD, Secretary.

No. 49.

Mr. Wood to Mr. Herbert.-(Registered December 24.)

The Oriental Coal Company (Limited), 55, Bernard Street, Leith,

December 23, 1872.

I AM desired by the Directors of the Oriental Coal Company (Limited) to acknow- Jedge receipt of your communication of date 2nd instant.*

As to the charges for lighterage, as formerly stated, I have written to the Company's manager at Labuan for further information. Meantime, the Directors would feel obliged by your furnishing them with a copy of any documents in your possession by which the Governor determined what should be the rate of charge for this service.

With regard to the 1001. rent, I am desired to point out that, by the contract betwixt the Company and the Government, the Company were entitled to 500 yards of water frontage for "wharves, quays, or jetties for the loading or unloading of their vessels, or the loading or unloading of coal," and at a rent to be fixed by the Governor. It appears from Governor Hennessy's communication to Lord Kimberley, of date 5th October last, that he was of opinion that no rent should be charged; but you state that the rent was fixed by Lord Granville in 1870. It, however, also appears from what you state that his Lordship fixed the reat not for the water frontage, but for it and two lots of land in the rear.

Now, as the water frontage of the wharf or jetty is stated by you to be only 400 feet, while by the contract the Company were entitled to get 500 yards, or 1,500 feet. the Directors wish the rent for the wharf or jetty to be fixed and kept separate and distinct for the two lots of ground in question.

By the contract, the Company are entitled to occupy, rent-free, ground for roads, railroads, or tramways necessary for or connected with the working or carrying on of the coal mines or premises, or any of them. This, the Directors are satisfied, includes ground for a terminus, embracing sidings, station-houses, and other accommodation necessary for the railway or tramway, and that the two lots of ground in question, unless specially required by the Governor for other purposes, fall under this part of the contract; but, whether they are correct in this or not, they think that it is only right that the rent of the jetty should be stated separately.

Meantime, the Directors desire me to state that they give up the two lots of ground in rear of the wharf or jetty, and have instructed their manager at Labuan, if necessary, to provide the Company with other ground.

The Directors beg to add that, even assuming that the Company had to pay rent for the ground in question they feel the 1001, rent to be greatly in excess of what they should pay under the conditions of their contract with the Government; besides, there can be no doubt the Government derive benefit from the expenditure of the Company in constructing the wharf or jetty, and in having it connected with the proposed railway to bring the coals from the mines instead of by lighters as at present.

I have, &c.

(Signed)

ALEX. WOOD, Secretary.

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Appendix.

LABUAN MINES, &C.

Lease betwixt Her Majesty Queen Victoria and the Oriental Coal Company (Limited).

THIS INDENTURE, made the eleventh day of March, eighteen hundred and sixty-nine, between Her Most Gracious MAJESTY QUEEN VICTORIA of the one part, and the ORIENTAL COAL COMPANY (Limited), registered under the Companies Acts 1862 and 1867 on 1st April, 1868 (hereinafter referred to as the said Company), of the other part;

1864.

WHEREAS by an Indenture made the thirtieth day of April, eighteen hundred and sixty-four, Narrative, between Her said Majesty of the first part, Sir James Dalrymple Hom Elphinstone, Baronet, and, Le of April 30, James Thomson Mackenzie, Esquire, of the second part, and the Labuan Coal Company (limited) of the third part; Her said Majesty did demise and lease unto the said Labuan Coal Company, their successors and assigns, all coal mines, beds, seams, and strata of coal in the Island of Labuan (except as therein is excepted), for the term of twenty-one years, from the 25th day of December, 1863, subject to the stipulation therein contained, and for payment of the royalty therein mentioned; BUT all mines, ores, and minerals other than coal were reserved unto Her Majesty and excepted from the said lease: AND WHEREAS by an Indenture made the 5th day of April, 1866, between the said Labuan Coal Com-

100%

pany (Limited) on the one part, and the China Steam Ship Company (Limited) of the other part, all the Aiguation to China estate, right, title, interest, and privileges of the said Labuan Coal Company, in and under the said Inden- Steam Ship Company. ture of Lease, and in the coal and property thereby demised, were veated in the China Steam Ship and Labuan Coal Company (Limited), subject to the payment of the royalties, and the performance and observance of the covenants, stipulations, and conditions in the said recited Indenture of lease, on the lessee's part to be paid, performed, and observed; AND WHEREAS by an Indenture made the 5th day. Lenas of April 4, of April, 1866, between Her said Majesty and the said China Steam Ship and Labuan Coal Company (Limited), Her Majesty made certain new provisions in regard to the aforesaid lease; and specially Her said Majesty thereby granted unto the said amalgamated Company full right to get, raise, work, appropriate, and dispose of during the continuance of said lease, all ironstone, iron ore, fire clay, and all freestone; and also all petroleum or other mineral oils that might be discovered by them in or upon lands in the said Island of Labuan to which they had right to raise and get coal, subject to the rent, royalties, reservations, and stipulations in the said Indenture contained.

AND WHEREAS all the estate, title, rights, and privileges of the China Steam Ship and Labuan Transfer to Oriental Coal Company (Limited) (which Company has been wound up under the supervision of the High Court Coal Company. of Chancery), became legally vested in the said Oriental Coal Company (Limited), as from the 15th day of May, 1868, subject to the rents, royalties, costs, and stipulations in the said hereinbefore recited Indentures of Lease of the 30th day of April, 1864, and the 5th day of April, 1866, respectively contained.

AND WHEREAS the said Oriental Coal Company (Limited), in order to enable them the better to develop their operations, have made application to Her said Majesty to substitute for the existing lease for twenty-one years, a new lease for forty-two years, containing the terms and conditions bereinafter mentioned.

AND WHEREAS Her said Majesty hath been graciously pleased to accede to such application, and in furtherance thereof, the said hereinbefore recited Indentures of lease of the 30th day of April, 1864, and the 5th day of April, 1866, hath been duly given up and cancelled.

NOW THIS INDENTURE WITNESSETH, that in consideration of the several rents and New Her Majesty lots royalties hereinafter reserved and made payable, and of the covenants, provisoes, conditions, and declate the Oriental Coal rations hereinafter contained, on the part of the said Company, to be paid, observed, and performed, Company (Limited). Her said Majesty, Queen Victoria, DOTH HEREBY, for herself, her hairs, and successors, GRANT, DEMISE, and LEASE unto the said Oriental Coal Company (Limited), their successors,

and assigns, ALL and SINGULAR, the mines and pits of coal, as well already opened as

hereafter, during the term of years hereby created to be opened; and all and singular the Leds, The coal in the Island seams, measures, and strata of coal lying, or which may be sought for, found, dug, won, or of Labuan. gotten, in, under, or out of, all the land or lands, and hereditaments whatsoever, of and in the Island

of Labuan, other, than, and except, nevertheless, such parcels or lots of public land in the said laland Excepting publie as were, previously to the 25th December, 1860, granted and appropriated by Her Majesty to any private inde gramed before individuals; together with full and free liberty, power, and authority to and for the said Company and

1900.

their assigns, TO ENTER into and upon all such and all such part and parts of the lands or land in Power to enter upon the said island of Labuan (not being, and except, nevertheless, lands so granted and appropriated by landa. Her Majesty previous to the said 25th day of December, 1880, as aforesaid, and not being, and except, lands already reserved or appropriated, or which shall, during the term of years hereby created, I Under certain reserved or appropriated out of any of the now unappropriated Crown lands in the said island by Her exceptiona

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• No. 45.

† No. 33.

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