A few cargoes of timber were also exported by Chinese to Hongkong. Great hopes were entertained that the establishment of a European Government and a free port on an island lying alongside so rich a country as Borneo would result in its becoming an emporium and collecting station for the various products of, at any rate, the northern and western portions of this country and perhaps, too, of the Sulu Archipelago. Many causes prevented the realization of these hopes. In the first place, no successful efforts were made to restore good government on the mainland, and without a fairly good government and safety to life and property, trade could not be developed. Then again Labuan was overshaded by the prosperous Colony of Singapore, which is the universal emporium for all these islands, and, with the introduction of steamers, it was soon found that only the trade of the coast immediately opposite to Labuan could be depended upon, that of the rest' including Sarawak and the City of Brunai, going direct to Singapore, for which port Labuan became a subsidiary and unimportant collecting station. The Spanish authorities did what they could to prevent trade with the Sulu Islands, and, on the signing of the Protocol between that country and Great Britain and Germany freeing the trade from restrictions, Sulu produce has been carried by steamers direct to Singapore. Since 1881, the British North Borneo Company having opened ports to the North, the greater portion of the trade of their possessions likewise finds its way direct by steamers to the same port.
Labuan has never shipped cargoes direct to England, and its importance as a collecting station for Singapore is now diminishing, for the reasons above-mentioned.
Most or a large portion of the trade that now falls to its share comes from the southern portion of the British North Borneo Company's territories, from which it is distant, at the nearest point, only about six miles, and the most reasonable solution of the Labuan question would certainly appear to be the proclamation of a British Protectorate over North Borneo, to which, under proper guarantees, might be assigned the task of carrying on the government of Labuan, a task which it could easily and economically undertake, having a sufficiently well organised staff ready to hand.[13] By the Royal Charter it is already provided that the appointment of the Company's Governor in Borneo is subject to the sanction of Her Majesty's Secretary of State, and the two Officers hitherto selected have been Colonial servants, whose service have been lent by the Colonial Office to the Company.
The Census taken in 1881 gives the total population of Labuan as 5,995, but it has probably decreased considerably since that time. The number of Chinese supposed to be settled there is about 300 or 400—traders, shopkeepers, coolies and sago-washers; the preparation of sago flour from the raw sago, or lamuntah, brought in from the mainland by the natives, being the principal industry of the island and employing three or four factories, in which no machinery is used. All the traders are only agents of Singapore firms and are in a small way of business. There is no European firm, or shop, in the island. Coal of good quality for raising steam is plentiful, especially at the North end of the island, and very sanguine expectations of the successful working of these coal measures were for a long time entertained, but have hitherto not been realised. The Eastern Archipelago Company, with an ambitious title but too modest an exchequer, first attempted to open the mines soon after the British occupation, but failed, and has been succeeded by three others, all I believe Scotch, the last one stopping operations in 1878. The cause of failure seems to have been the same in each case—insufficient capital, local mismanagement, difficulty in obtaining labour. In a country with a rainfall of perhaps over 120 inches a year, water was naturally another difficulty in the deep workings, but this might have been very easily overcome had the Companies been in a position to purchase sufficiently powerful pumping engines.
There were three workable seams of coal, one of them, I think, twelve feet in thickness; the quality of the coal, though inferior to Welsh, was superior to Australian, and well reported on by the engineers of many steamers which had tried it; the vessels of the China squadron and the numerous steamers engaged in the Far East offered a ready market for the coal.
In their effort to make a "show," successive managers have pretty nearly exhausted the surface workings and so honeycombed the seams with their different systems of developing their resources, that it would be, perhaps, a difficult and expensive undertaking for even a substantial company to make much of them now.[14]
It is needless to add that the failure to develop this one internal resource of Labuan was a great blow to the Colony, and on the cessation of the last company's operations the revenue immediately declined, a large number of workmen—European, Chinese and Natives—being thrown out of employment, necessitating the closing of the shops in which they spent their wages. It was found that both Chinese and the Natives of Borneo proved capital miners under European supervision. Notwithstanding the ill-luck that has attended it, the little Colony has not been a burden on the British tax-payer since the year 1860, but has managed to collect a revenue—chiefly from opium, tobacco, spirits, pawnbroking and fish "farms" and from land rents and land sales—sufficient to meet its small expenditure, at present about £4,000 a year. There have been no British troops quartered in this island since 1871, and the only armed force is the Native Constabulary, numbering, I think, a dozen rank and file. Very seldom are the inhabitants cheered by the welcome visit of a British gunboat. Still, all the formality of a British Crown Colony is kept up. The administrator is by his subjects styled "His Excellency" and the Members of the Legislative Council, Native and Europeans, are addressed as the "Honourable so and so." An Officer, as may be supposed, has to play many parts. The present Treasurer, for instance, is an ex-Lieutenant of Her Majesty's Navy, and is at the same time Harbour Master, Postmaster, Coroner, Police Magistrate, likewise a Judge of the Supreme Court, Superintendent of Convicts, Surveyor-General, and Clerk to the Legislative Council, and occasionally has, I believe, to write official letters of reprimand or encouragement from himself in one capacity to himself in another.
The best thing about Labuan is, perhaps, the excellence of its fruit, notably of its pumeloes, oranges and mangoes, for which the Colony is indebted to the present Sir Hugh Low, who was one of the first officials under Sir James Brooke, and a man who left no stone unturned in his efforts to promote the prosperity of the island. His name was known far and wide in Northern Borneo and in the Sulu Archipelago. As an instance, I was once proceeding up a river in the island of Basilan, to the North of Sulu, with Captain C. E. Buckle, R.N., in two boats of H. M. S. Frolic, when the natives, whom we could not see, opened fire on us from the banks. I at once jumped up and shouted out that we were Mr. Low's friends from Labuan, and in a very short time we were on friendly terms with the natives, who conducted us to their village. They had thought we might be Spaniards, and did not think it worth while to enquire before tiring. The mention of the Frolic reminds me that on the termination of a somewhat lengthy cruise amongst the Sulu Islands, then nominally undergoing blockade by Spanish cruisers, we were returning to Labuan through the difficult and then only partially surveyed Malawalli Channel, and after dinner we were congratulating one another on having been so safely piloted through so many dangers, when before the words were out of our mouths, we felt a shock and found ourselves fast on an unmarked rock which has since had the honour of bearing the name of our good little vessel.
Besides Mr. Low's fruit garden, the only other European attempt at planting was made by my Cousin, Dr. Treacher, Colonial Surgeon, who purchased an outlying island and opened a coco-nut plantation. I regret to say that in neither case, owing to the decline of the Colony, was the enterprise of the pioneers adequately rewarded.
Labuan[15] at one time boasted a Colonial Chaplain and gave its name to the Bishop's See; but in 1872 or 1873, the Church was "disestablished" and the few European Officials who formed the congregation were unable to support a Clergyman. There exists a pretty little wooden Church, and the same indefatigable officer, whom I have described as filling most of the Government appointments in the Colony, now acts as unpaid Chaplain, having been licensed thereto by the Bishop of Singapore and Sarawak, and reads the service and even preaches a sermon every Sunday to a congregation which rarely numbers half a dozen.