Titles and mutations of titles to land are carefully registered and recorded in the Land Office, under the provisions of the Hongkong Registration of Documents Ordinance, which has been adopted in the State.

The local Government is administered by a Governor, selected by the Court of Directors subject to the approval of the Secretary of State for the Colonies. He is empowered to enact laws, which require confirmation by the Court, and is assisted in his executive functions by a Government Secretary, Residents, Assistant Residents, a Treasurer-General, a Commissioner of Lands, a Superintendent of Public Works, Commandant, Postmaster-General and other Heads of Departments usually to be found in Crown Colonies, and the British Colonial Regulations are adhered to as closely as circumstances admit. The title of Resident is borrowed from the Dutch Colonies, and the duties of the post are analogous to those of the Resident Councillors of Penang or Malacca, under the Governor of Singapore, or of the Government Agents in Ceylon. The Governor can also call to assist him in his deliberations a Council of Advice, composed of some of the Heads of Departments and of natives of position nominated to seats therein.

The laws are in the form of "Proclamations" issued by the Governor under the seal of the Territory. Most of the laws are adaptations, in whole or in part, of Ordinances enacted in Eastern Colonies, such as the Straits Settlements, Hongkong, Labuan and Fiji.

The Indian Penal Code, the Indian Codes of Civil and Criminal Procedure and the Indian Evidence and Contract Acts have been adopted in their entirety, "so far as the same shall be applicable to the circumstances of this Territory."

The Proclamation making these and other Acts the law in North Borneo was the first formal one issued, and bears date the 23rd December, 1881.

The law relating to the protection of estate coolies and labourers has been already referred to.

The question of domestic slavery was one of the first with which the Company had to grapple, the Royal Charter having ordained that "the Company shall to the best of its power discourage and, as far as may be practicable, abolish by degrees, any system of domestic servitude existing among the tribes of the Coast or interior of Borneo; and no foreigners whether European, Chinese or other, shall be allowed to own slaves of any kind in the Company's territories." Slavery and kidnapping were rampant in North Borneo under native regime and were one of the chief obstacles to the unanimous acceptance of the Company's rule by the Chiefs. At first the Residents and other officers confined their efforts to prohibiting the importation of slaves for sale, and in assisting slaves who were ill-treated to purchase their liberty. In 1883, a Proclamation was issued which will have the effect of gradually abolishing the system, as required by the Charter. Its chief provisions are as follows:—No foreigners are allowed to hold slaves, and no slaves can be imported for sale, nor can the natives buy slaves in a foreign country and introduce them into Borneo as slaves, even should there be no intention of selling them as such. Slaves taking refuge in the country from abroad will not be surrendered, but slaves belonging to natives of the country will be given up to their owners unless they can prove ill-treatment, or that they have been brought into the territory subsequently to the 1st November, 1883, and it is optional for any slave to purchase his or her freedom by payment of a sum, the amount of which is to be fixed, from time to time, by the Government.

A woman also becomes free if she can prove that she has cohabited with her master, or with any person other than her husband, with the connivance of her master or mistress; and finally "all children born of slave parents after the first day of November, 1883, and who would by ancient custom be deemed to be slaves, are hereby proclaimed to be free, and any person treating or attempting to treat any such children as slaves shall be guilty of an offence under this Proclamation." The punishment for offences against the provisions of this Proclamation extends to imprisonment for ten years and to a fine up to five thousand dollars.

The late Mr. Witti, one of the first officers of the Association, at my request, drew up, in 1881, an interesting report on the system of Slavery in force in the Tampassuk District, on the West Coast, of which the following is a brief summary. Slaves in this district are divided into two classes—those who are slaves in a strict and rigorous sense, and those whose servitude is of a light description. The latter are known as anak mas, and are the children of a slave mother by a free man other than her master. If a female, she is the slave or anak mas of her mother's master, but cannot be sold by him; if a boy, he is practically free, cannot be sold and, if he does not care to stay with his master, can move about and earn his own living, not sharing his earnings with his master, as is the case in some other districts. In case of actual need, however, his master can call upon him for his services.

If an anak mas girl marries a freeman, she at once becomes a free woman, but a brihan, or marriage gift, of from two to two and a half pikuls of brass gun—valued at $20 to $25 a pikul is payable by the bridegroom to the master.