I believe I am right in saying that the idea of forming a Company, something after the manner of the East India Company, to take over and govern North Borneo, originated in the following manner. In 1865 Mr.

MOSES, the unpaid Consul for the United Sates in Brunai, to whom reference has been made before, acquired with his friends from the Sultan of Brunai some concessions of territory with the right to govern and collect revenues, their idea being to introduce Chinese and establish a Colony. This they attempted to carry out on a small scale in the Kimanis River, on the West Coast, but not having sufficient capital the scheme collapsed, but the concession was retained. Mr. MOSES subsequently lost his life at sea, and a Colonel TORREY became the chief representative of the American syndicate. He was engaged in business in China, where he met Baron VON OVERBECK, a merchant of Hongkong and Austrian Consul-General, and interested him in the scheme. In 1875 the Baron visited Borneo in company with the Colonel, interviewed the Sultan of Brunai, and made enquiries as to the validity of the concessions, with apparently satisfactory results, Mr. ALFRED DENT[16] was also a China merchant well known in Shanghai, and he in turn was interested in the idea by Baron OVERBECK. Thinking there might be something in the scheme, he provided the required capital, chartered a steamer, the _America_, and authorised Baron OVERBECK to proceed to Brunai to endeavour, with Colonel TORREY'S a.s.sistance, to induce the Sultan and his Ministers to transfer the American cessions to himself and the Baron, or rather to cancel the previous ones and make out new ones in their favour and that of their heirs, a.s.sociates, successors and a.s.signs for so long as they should choose or desire to hold them. Baron VON OVERBECK was accompanied by Colonel TORREY and a staff of three Europeans, and, on settling some arrears due by the American Company, succeeded in accomplishing the objects of his mission, after protracted and tedious negotiations, and obtained a "chop" from the Sultan nominating and appointing him supreme ruler, "with the t.i.tle of Maharaja of Sabah (North Borneo) and Raja of Gaya and Sandakan, with power of life and death over the inhabitants, with all the absolute rights of property vested in the Sultan over the soil of the country, and the right to dispose of the same, as well as of the rights over the productions of the country, whether mineral, vegetable, or animal, with the rights of making laws, coining money, creating an army and navy, levying customs rates on home and foreign trade and shipping, and other dues and taxes on the inhabitants as to him might seem good or expedient, together with all other powers and rights usually exercised by and belonging to sovereign rulers, and which the Sultan thereby delegated to him of his own free will; and the Sultan called upon all foreign nations, with whom he had formed friendly treaties and alliances, to acknowledge the said Maharaja as the Sultan himself in the said territories and to respect his authority therein; and in the case of the death or retirement from the said office of the said Maharaja, then his duly appointed successor in the office of Supreme Ruler and Governor-in-Chief of the Company's territories in Borneo should likewise succeed to the office and t.i.tle of Maharaja of Sabah and Raja of Gaya and Sandakan, and all the powers above enumerated be vested in him." I am quoting from the preamble to the Royal Charter. Some explanation of the term "Sabah" as applied to the territory--a term which appears in the Prayer Book version of the 72nd Psalm, verse 10, "The kings of Arabia and Sabah shall bring gifts"--seems called for, but I regret to say I have not been able to obtain a satisfactory one from the Brunai people, who use it in connection only with a small portion of the West Coast of Borneo, North of the Brunai river. Perhaps the following note, which I take from Mr. W. E. MAXWELL'S "Manual of the Malay Language,"

may have some slight bearing on the point:--"Sawa, Jawa, Saba, Jaba, Zaba, etc., has evidently in all times been the capital local name in Indonesia. The whole archipelago was pressed into an island of that name by the Hindus and Romans. Even in the time of MARCO POLO we have only a Java Major and a Java Minor. The Bugis apply the name of Jawa, _jawaka_ (comp. the Polynesian _Sawaiki_, Ceramese _Sawai_) to the Moluccas. One of the princ.i.p.al divisions of Battaland in Sumatra is called _Tanah_ Jawa. PTOLEMY has both Jaba and Saba."--"Logan, Journ. Ind. Arch., iv, 338." In the Brunai use of the term, there is always some idea of a Northerly direction; for instance, I have heard a Brunai man who was pa.s.sing from the South to the Northern side of his river, say he was going _Saba_. When the Company's Government was first inaugurated, the territory was, in official doc.u.ments, mentioned as Sabah, a name which is still current amongst the natives, to whom the now officially accepted designation of _North Borneo_ is meaningless and difficult of p.r.o.nunciation.

Having settled with the Brunai authorities, Baron VON OVERBECK next proceeded to Sulu, and found the Sultan driven out of his capital, Sugh or Jolo, by the Spaniards, with whom he was still at war, and residing at Maibun, in the princ.i.p.al island of the Sulu Archipelago. After brief negotiations, the Sultan made to Baron VON OVERBECK and Mr. ALFRED DENT a grant of his rights and powers over the territories and lands tributary to him on the mainland of the island of Borneo, from the Panda.s.san River on the North West Coast to the Sibuko River on the East, and further invested the Baron, or his duly appointed successor in the office of supreme ruler of the Company's territories in Borneo, with the high sounding t.i.tles of Datu Bandahara and Raja of Sandakan.

On a company being formed to work the concessions, Baron VON OVERBECK resigned these t.i.tles from the Brunai and Sulu Potentates and they have not since been made use of, and the Baron himself terminated his connection with the country.

The grant from the Sultan of Sulu bears date the 22nd January, 1878, and on the 22nd July of the same year he signed a treaty, or act of re-submission to Spain. The Spanish Government claimed that, by previous treaties with Sulu, the suzerainty of Spain over Sulu and its dependencies in Borneo had been recognised and that consequently the grant to Mr. DENT was void. The British Government did not, however, fall in with this view, and in the early part of 1879, being then Acting Consul-General in Borneo, I was despatched to Sulu and to different points in North Borneo to publish, on behalf of our Government, a protest against the claim of Spain to any portion of the country. In March, 1885, a protocol was signed by which, in return for the recognition by England and Germany of Spanish sovereignty throughout the Archipelago of Sulu, Spain renounced all claims of sovereignty over territories on the Continent of Borneo which had belonged to the Sultan of Sulu, including the islands of Balambangan, Banguey and Malawali, as well as all those comprised within a zone of three maritime leagues from the coast.

Holland also strenuously objected to the cessions and to their recognition, on the ground that the general tenor of the Treaty of London of 1824 shews that a mixed occupation by England and the Netherlands of any island in the Indian Archipelago ought to be avoided.

It is impossible to discover anything in the treaty which bears out this contention. Borneo itself is not mentioned by name in the doc.u.ment, and the following clauses are the only ones regulating the future establishment of new Settlements in the Eastern Seas by either Power:--"Article 6. It is agreed that orders shall be given by the two Governments to their Officers and Agents in the East not to form any new Settlements on any of the islands in the Eastern Seas, without previous authority from their respective Governments in Europe. Art. 12. His Britannic Majesty, however, engages, that no British Establishment shall be made on the Carimon islands or on the islands of Battam, Bintang, Lingin, or on any of the other islands South of the Straits of Singapore, nor any treaty concluded by British authority with the chiefs of those islands." Without doubt, if Holland in 1824 had been desirous of prohibiting any British Settlement in the island of Borneo, such prohibition would have been expressed in this treaty. True, perhaps half of this great island is situated South of the Straits of Singapore, but the island cannot therefore be correctly said to lie to the South of the Straits and, at any rate, such a business-like nation as the Dutch would have noticed a weak point here and have included Borneo in the list with Battam and the other islands enumerated. Such was the view taken by Mr.

GLADSTONE'S Cabinet, and Lord GRANVILLE informed the Dutch Minister in 1882 that the XIIth Article of the Treaty could not be taken to apply to Borneo, and "that as a a matter of international right they would have no ground to object even to the absolute annexation of North Borneo by Great Britain," and, moreover, as pointed out by his Lordship, the British had already a settlement in Borneo, namely the island of Labuan, ceded by the Sultan of Brunai in 1845 and confirmed by him in the Treaty of 1847. The case of Raja BROOKE in Sarawak was also practically that of a British Settlement in Borneo.

Lord GRANVILLE closed the discussion by stating that the grant of the Charter does not in any way imply the a.s.sumption of sovereign rights in North Borneo, _i.e._, on the part of the British Government.

There the matter rested, but now that the Government is proposing[17] to include British North Borneo, Brunai and Sarawak under a formal "British Protectorate," the Netherlands Government is again raising objections, which they must be perfectly aware are groundless. It will be noted that the Dutch do not lay any claim to North Borneo themselves, having always recognized it as pertaining, with the Sulu Archipelago, to the Spanish Crown. It is only to the presence of the British Government in North Borneo that any objection is raised. In a "Resolution" of the Minister of State, Governor-General of Netherlands India, dated 28th February, 1846, occurs the following:--"The parts of Borneo on which the Netherlands does not exercise any influence are:--

_a._ The States of the Sultan of Brunai or Borneo Proper;

_b._ The State of the Sultan of the Sulu Islands, having for boundaries on the West, the River Kimanis, the North and North-East Coasts as far as 3 N.L., where it is bounded by the River Atas, forming the extreme frontier towards the North with the State of Berow dependant on the Netherlands.

_c._ All the islands of the Northern Coasts of Borneo."

Knowing this, Mr. ALFRED DENT put the limit of his cession from Sulu at the Sibuku River, the South bank of which is in N. Lat. 4 5'; but towards the end of 1879, that is, long after the date of the cession, the Dutch hoisted their flag at Batu Tinagat in N. Lat. 4 19', thereby claiming the Sibuko and other rivers ceded by the Sultan of Sulu to the British Company. The dispute is still under consideration by our Foreign Office, but in September, 1883, in order to practically a.s.sert the Company's claims, I, as their Governor, had a very pleasant trip in a very small steam launch and steaming at full speed past two Dutch gun-boats at anchor, landed at the South bank of the Sibuko, temporarily hoisted the North Borneo flag, fired a _feu-de-joie_, blazed a tree, and returning, exchanged visits with the Dutch gun-boats, and entertained the Dutch Controlleur at dinner. Having carefully given the Commander of one of the gun-boats the exact bearings of the blazed tree, he proceeded in hot haste to the spot, and, I believe, exterminated the said tree.

The Dutch Government complained of our having violated Netherlands territory, and matters then resumed their usual course, the Dutch station at Batu Tinagat, or rather at the Tawas River, being maintained unto this day.

As is hereafter explained, the cession of coast line from the Sultan of Brunai was not a continuous one, there being breaks on the West Coast in the case of a few rivers which were not included. The annual tribute to be paid to the Sultan was fixed at $12,000, and to the Pangeran Tumonggong $3,000--extravagantly large sums when it is considered that His Highness' revenue per annum from the larger portion of the territory ceded was _nil_. In March, 1881, through negotiations conducted by Mr.

A. H. EVERETT, these sums were reduced to more reasonable proportions, namely, $5,000 in the case of the Sultan, and $2,500 in that of the Tumonggong.

The intermediate rivers which were not included in the Sultan's cession belonged to Chiefs of the blood royal, and the Sultan was unwilling to order them to be ceded, but in 1883 Resident DAVIES procured the cession from one of these Chiefs of the Pangalat River for an annual payment of $300, and subsequently the Putalan River was acquired for $1,000 per annum, and the Kaw.a.n.g River and the Mantanani Islands for lump sums of $1,300 and $350 respectively. In 1884, after prolonged negotiations, I was also enabled to obtain the cession of an important Province on the West Coast, to the South of the original boundary, to which the name of Dent Province has been given, and which includes the Padas and Kalias Rivers, and in the same deed of cession were also included two rivers which had been excepted in the first grant--the Tawaran and the Bangawan. The annual tribute under this cession is $3,100. The princ.i.p.al rivers within the Company's boundaries still unleased are the Kwala Lama, Membakut, Inanam and Menkabong. For fiscal reasons, and for the better prevention of the smuggling of arms and ammunition for sale to head-hunting tribes, it is very desirable that the Government of these remaining independent rivers should be acquired by the Company.

On the completion of the negotiations with the two Sultans, Baron VON OVERBECK, who was shortly afterwards joined by Mr. DENT, hoisted his flag--the house flag of Mr. DENT'S firm--at Sandakan, on the East Coast, and at Tampa.s.suk and Pappar on the West, leaving at each a European, with a few so-called Police to represent the new Government, agents from the Sultans of Sulu and Brunai accompanying him to notify to the people that the supreme power had been transferred to Europeans. The common people heard the announcement with their usual apathy, but the officer left in charge had a difficult part to play with the headmen who, in the absence of any strong central Government, had practically usurped the functions of Government in many of the rivers. These Chiefs feared, and with reason, that not only would their importance vanish, but that trade with the inland tribes would be thrown open to all, and slave dealing be put a stop to under the new regime. At Sandakan, the Sultan's former Governor refused to recognise the changed position of affairs, but he had a resolute man to deal with in Mr. W. B. PRYER, and before he could do much harm, he lost his life by the capsizing of his prahu while on a trading voyage.

At Tampa.s.suk, Mr. PRETYMAN, the Resident, had a very uncomfortable post, being in the midst of lawless, cattle-lifting and slave-dealing Bajaus and Illanuns. He, with the able a.s.sistance of Mr. F. X. WITTI, an ex-Naval officer of the Austrian Service, who subsequently lost his life while exploring in the interior, and by balancing one tribe against another, managed to retain his position without coming to blows, and, on his relinquishing the service a few months afterwards, the arduous task of representing the Government without the command of any force to back up his authority developed on Mr. WITTI. In the case of the Pappar River, the former Chief, Datu BAHAR, declined to relinquish his position, and a.s.sumed a very defiant att.i.tude. I was at that time in the Labuan service, and I remember proceeding to Pappar in an English man-of-war, in consequence of the disquieting rumours which had reached us, and finding the Resident, Mr. A. H. EVERETT, on one side of the small river with his house strongly blockaded and guns mounted in all available positions, and the Datu on the other side of the stream, immediately opposite to him, similarly armed to the teeth. But not a shot was fired, and Datu BAHAR is now a peaceable subject of the Company.

The most difficult problem, however, which these officers had to solve was that of keeping order, or trying to do so, amongst a lawless people, with whom for years past might had been right, and who considered kidnapping and cattle-lifting the occupations of honourable and high spirited gentlemen. That they effected what they did, that they kept the new flag flying and prepared the way for the Government of the Company, reflects the highest credit upon their pluck and diplomatic ingenuity, for they had neither police nor steam launches, nor the prestige which would have attached to them had they been representatives of the British Government, and under the well known British flag. They commenced their work with none of the _eclat_ which surrounded Sir JAMES BROOKE in Sarawak, where he found the people in successful rebellion against the Sultan of Brunai, and was himself recognised as an agent of the British Government, so powerful that he could get the Queen's ships to attack the head hunting pirates, killing such numbers of them that, as I have said, the Head money claimed and awarded by the British Government reached the sum of 20,000. On the other hand, it is but fair to add that the fame of Sir JAMES' exploits and the action taken by Her Majesty's vessels, on his advice, in North-West Borneo years before, had inspired the natives with a feeling of respect for Englishmen which must have been a powerful factor in favour of the newly appointed officers.

The native tribes, too, inhabiting North Borneo were more sub-divided, less warlike, and less powerful than those of Sarawak.

The promoters of the scheme were fortunate in obtaining the services, for the time being, as their chief representative in the East of Mr. W.

H. READ, C.M.G., an old friend of Sir JAMES BROOKE, and who, as a Member of the Legislative Council of Singapore, and Consul-General for the Netherlands, had acquired an intimate knowledge of the Malay character and of the resources, capabilities and needs of Malayan countries.

On his return to England, Mr. DENT found that, owing to the opposition of the Dutch and Spanish Governments, and to the time required for a full consideration of the subject by Her Majesty's Ministers, there would be a considerable delay before a Royal Charter could be issued, meanwhile, the expenditure of the embryo Government in Borneo was not inconsiderable, and it was determined to form a "Provisional a.s.sociation" to carry on till a Chartered Company could be formed.

Mr. DENT found an able supporter in Sir RUTHERFORD ALc.o.c.k, K.C.B., who energetically advocated the scheme from patriotic motives, recognising the strategic and commercial advantages of the splendid harbours of North Borneo and the probability of the country becoming in the near future a not unimportant outlet for English commerce, now so heavily weighted by prohibitive tariffs in Europe and America.

The British North Borneo Provisional a.s.sociation Limited, was formed in 1881, with a capital of 300,000, the Directors being Sir RUTHERFORD ALc.o.c.k, Mr. A. DENT, Mr. R. B. MARTIN, Admiral MAYNE, and Mr. W. H.

READ. The a.s.sociation acquired from the original lessees the grants and commissions from the Sultans, with the object of disposing of these territories, lands and property to a Company to be incorporated by Royal Charter. This Charter pa.s.sed the Great Seal on the 1st November, 1881, and const.i.tuted and incorporated the gentlemen above-mentioned as "The British North Borneo Company."

The Provisional a.s.sociation was dissolved, and the Chartered Company started on its career in May, 1882. The nominal capital was two million pounds, in 20 shares, but the number of shares issued, including 4,500 fully paid ones representing 90,000 to the vendors, was only 33,030, equal to 660,600, but on 23,449 of these shares only 12 have so far been called up. The actual cash, therefore, which the Company has had to work with and to carry on the development of the country from the point at which the original concessionaires and the Provisional a.s.sociation had left it, is, including some 1,000 received for shares forfeited, about 384,000, and they have a right of call for 187,592 more. The Charter gave official recognition to the concessions from the Native Princes, conferred extensive powers on the Company as a corporate body, provided for the just government of the natives and for the gradual abolition of slavery, and reserved to the Crown the right of disapproving of the person selected by the Company to be their Governor in the East, and of controlling the Company's dealings with any Foreign Power.

The Charter also authorised the Company to use a distinctive flag, indicating the British character of the undertaking, and the one adopted, following the example of the English Colonies, is the British flag, "defaced," as it is termed, with the Company's badge--a lion. I have little doubt that this selection of the British flag, in lieu of the one originally made use of, had a considerable effect in imbuing the natives with an idea of the stability and permanence of the Company's Government.

Mr. DENT'S house flag was unknown to them before and, on the West Coast, many thought that the Company's presence in the country might be only a brief one, like that of its predecessor, the American syndicate, and, consequently, were afraid to tender their allegiance, since, on the Company's withdrawal, they would be left to the tender mercies of their former Chiefs. But the British flag was well-known to those of them who were traders, and they had seen it flying for many a year in the Colony of Labuan and on board the vessels which had punished their piratical acts in former days.

Then, too, I was soon able to organise a Police Force mainly composed of Sikhs, and was provided with a couple of steam-launches. Owing doubtless to that and other causes, the refractory chiefs, soon after the Company's formation, appeared to recognize that the game of opposition to the new order of things was a hopeless one.

Footnotes:

[Footnote 16: Now Sir ALFRED DENT, K.C.M.G.]

[Footnote 17: The Protectorate has since been proclaimed.]

CHAPTER VIII.

The area of the territory ceded by the original grants was estimated at 20,000 square miles, but the additions which have been already mentioned now bring it up to about 31,000 square miles, including adjacent islands, so that it is somewhat larger than Ceylon, which is credited with only 25,365 square miles. In range of lat.i.tude, in temperature and in rainfall, North Borneo presents many points of resemblance to Ceylon, and it was at first thought that it might be possible to attract to the new country some of the surplus capital, energy and apt.i.tude for planting which had been the foundation of Ceylon's prosperity.

Even the expression "The New Ceylon" was employed as an alternative designation for the country, and a description of it under that t.i.tle was published by the well known writer--Mr. JOSEPH HATTON.

These hopes have not so far been realized, but on the other hand North Borneo is rapidly becoming a second Sumatra, Dutchmen, Germans and some English having discovered the suitability of its soil and climate for producing tobacco of a quality fully equal to the famed Deli leaf of that island.

The coast line of the territory is about one thousand miles, and a glance at the map will shew that it is furnished with capital harbours, of which the princ.i.p.al are Gaya Bay on the West, Kudat in Marudu Bay on the North, and Sandakan Harbour on the East. There are several others, but at those enumerated the Company have opened their princ.i.p.al stations.

Of the three mentioned, the more striking is that of Sandakan, which is 15 miles in length, with a width varying from 11 miles, at its entrance, to 5 miles at the broadest part. It is here that the present capital is situated--Sandakan, a town containing a population of not more than 5,000 people, of whom perhaps thirty are Europeans and a thousand Chinese., For its age, Sandakan has suffered serious vicissitudes. It was founded by Mr. PRYER, in 1878, well up the bay, but was soon afterwards burnt to the ground. It was then transferred to its present position, nearer the mouth of the harbour, but in May, 1886, the whole of what was known as the "Old Town" was utterly consumed by fire; in about a couple of hours there being nothing left of the _atap_-built shops and houses but the charred piles and posts on which they had been raised above the ground. When a fire has once laid hold of an atap town, probably no exertions would much avail to check it; certainly our Chinese held this opinion, and it was impossible to get them to move hand or foot in a.s.sisting the Europeans and Police in their efforts to confine its ravages to as limited an area as possible. They entertain the idea that such futile efforts tend only to aggravate the evil spirits and increase their fury. The Hindu shopkeepers were successful in saving their quarter of the town by means of looking gla.s.ses, long prayers and chants. It is now forbidden to any one to erect atap houses in the town, except in one specified area to which such structures are confined. Most of the present houses are of plank, with tile, or corrugated iron roofs, and the majority of the shops are built over the sea, on substantial wooden piles, some of the princ.i.p.al "streets,"

including that to which the ambitious name of "The Praya" has been given, being similarly constructed on piles raised three or four feet above high water mark. The reason is that, owing to the steep hills at the back of the site, there is little available flat land for building on, and, moreover, the pushing Chinese trader always likes to get his shops as near as possible to the sea--the highway of the "prahus" which bring him the products of the neighbouring rivers and islands. In time, no doubt, the Sandakan hills will be used to reclaim more land from the sea, and the town will cease to be an amphibious one. In the East there are, from a sanitary point of view, some points of advantage in having a tide-way pa.s.sing under the houses. I should add that Sandakan is a creation of the Company's and not a native town taken over by them. When Mr. PRYER first hoisted his flag, there was only one solitary Chinaman and no Europeans in the harbour, though at one time, during the Spanish blockade of Sulu, a Singapore firm had established a trading station, known as "Kampong German," using it as their head-quarters from which to run the blockade of Sulu, which they successfully did for some considerable time, to their no small gain and advantage. The success attending the Germans' venture excited the emulation of the Chinese traders of Labuan, who found their valuable Sulu trade cut off and, through the good offices of the Government of the Colony, they were enabled to charter the Sultan of Brunai's smart little yacht the _Sultana_, and engaging the services as Captain of an ex-member of the Labuan Legislative Council, they endeavoured to enact the roll of blockade runner. After a trip or two, however, the _Sultana_ was taken by the Spaniards, snugly at anchor in a Sulu harbour, the Captain and Crew having time to make their escape. As she was not under the British flag, the poor Sultan could obtain no redress, although the blockade was not recognised as effective by the European Powers and English and German vessels, similarly seized, had been restored to their owners. The _Sultana_ proved a convenient despatch boat for the Spanish authorities.

The Sultan of Sulu to prove his friendship to the Labuan traders, had an unfortunate man cut to pieces with krisses, on the charge of having betrayed the vessel's position to the blockading cruisers.

Sandakan is one of the few places in Borneo which has been opened and settled without much fever and sickness ensuing, and this was due chiefly to the soil being poor and sandy and to there being an abundance of good, fresh, spring water. It may be stated, as a general rule, that the richer the soil the more deadly will be the fever the pioneers will have to encounter when the primeval jungle is first felled and the sun's rays admitted to the virgin soil.

Sandakan is the princ.i.p.al trading station in the Company's territory, but with Hongkong only 1,200 miles distant in one direction, Manila 600 miles in another, and Singapore 1,000 miles in a third, North Borneo can never become an emporium for the trade of the surrounding countries and islands, and the Court of Directors must rest content with developing their own local trade and pushing forward, by wise and encouraging regulations, the planting interest, which seems to have already taken firm root in the country and which will prove to be the foundation of its future prosperity. Gold and other minerals, including coal, are known to exist, but the mineralogical exploration of a country covered with forest and dest.i.tute of roads is a work requiring time, and we are not yet in a position to p.r.o.nounce on North Borneo's expectations in regard to its mineral wealth.

The gold on the Segama River, on the East coast, has been several times reported on, and has been proved to exist in sufficient quant.i.ties to, at any rate, well repay the labours of Chinese gold diggers, but the district is difficult of access by water, and the Chinese are deferring operations on a large scale until the Government has constructed a road into the district. A European Company has obtained mineral concessions on the river, but has not yet decided on its mode of operation, and individual European diggers have tried their luck on the fields, hitherto without meeting with much success, owing to heavy rains, sickness and the difficulty of getting up stores. The Company will probably find that Chinese diggers will not only stand the climate better, but will be more easily governed, be satisfied with smaller returns, and contribute as much or more than the Europeans to the Government Treasury, by their consumption of opium, tobacco and other excisable articles, by fees for gold licenses, and so forth.

Another source of natural wealth lies in the virgin forest with which the greater portion of the country is clothed, down to the water's edge.

Many of the trees are valuable as timber, especially the _Billian_, or Borneo iron-wood tree, which is impervious to the attacks of white-ants ash.o.r.e and almost equally so to those of the _teredo navalis_ afloat, and is wonderfully enduring of exposure to the tropical sun and the tropical downpours of rain. I do not remember having ever come across a bit of _billian_ that showed signs of decay during a residence of seventeen years in the East. The wood is very heavy and sinks in water, so that, in order to be shipped, it has to be floated on rafts of soft wood, of which there is an abundance of excellent quality, of which one kind--the red _serayah_--is likely to come into demand by builders in England. Other of the woods, such as _mirabau_, _penagah_ and _rengas_, have good grain and take a fine polish, causing them to be suitable for the manufacture of furniture. The large tree which yields the Camphor _barus_ of commerce also affords good timber. It is a _Dryobalanops_, and is not to be confused with the _Cinnamomum camphora_, from which the ordinary "camphor" is obtained and the wood of which retains the camphor smell and is largely used by the Chinese in the manufacture of boxes, the scented wood keeping off ants and other insects which are a pest in the Far East. The Borneo camphor tree is found only in Borneo and Sumatra. The camphor which is collected for export, princ.i.p.ally to China and India, by the natives, is found in a solid state in the trunk, but only in a small percentage of the trees, which are felled by the collectors. The price of this camphor _barus_ as it is termed, is said to be nearly a hundred times as much as that of the ordinary camphor, and it is used by the Chinese and Indians princ.i.p.ally for embalming purposes. Billian and other woods enumerated are all found near the coast and, generally, in convenient proximity to some stream, and so easily available for export. Sandakan harbour has some thirteen rivers and streams running into it, and, as the native population is very small, the jungle has been scarcely touched, and no better locality could, therefore, be desired by a timber merchant. Two European Timber Companies are now doing a good business there, and the Chinese also take their share of the trade. China affords a ready and large market for Borneo timber, being itself almost forestless, and for many years past it has received iron-wood from Sarawak. Borneo timber has also been exported to the Straits Settlements, Australia and Mauritius, and I hear that an order has been given for England. Iron wood is only found in certain districts, notably in Sandakan Bay and on the East coast, being rarely met with on the West coast. I have seen a private letter from an officer in command of a British man-of-war who had some samples of it on board which came in very usefully when certain bearings of the screw shaft were giving out on a long voyage, and were found to last _three times_ as long as lignum vitae.

In process of time, as the country is opened up by roads and railways, doubtless many other valuable kinds of timber trees will be brought to light in the interior.

A notice of Borneo Forests would be incomplete without a reference to the mangroves, which are such a prominent feature of the country as one approaches it by sea, lining much of the coast and forming, for mile after mile, the actual banks of most of the rivers. Its thick, dark-green, never changing foliage helps to give the new comer that general impression of dull monotony in tropical scenery, which, perhaps, no one, except the professed botanist, whose trained and practical eye never misses the smallest detail, ever quite shakes off.

The wood of the mangrove forms most excellent firewood, and is often used by small steamers as an economical fuel in lieu of coal, and is exported to China in the timber ships. The bark is also a separate article of export, being used as a dye and for tanning, and is said to contain nearly 42% of _tannin_.