and the Hudson's Bay Company will be no exception to the rule. It may continue to exist as a Trading Company, but as a Territorial Power it must make up its mind to fold its (buffalo) robes round it and die with dignity." Prophesying is hazardous work. In November, 1881, two hundred and eleven years after the Hudson's Bay Charter, and twelve years after the date of Mr. Forsyth's article, Queen Victoria granted a Charter of Incorporation to the British North Borneo Company, which, by confirming the grants and concessions acquired from the Sultans of Brunai and Sulu, constitutes the Company the sovereign ruler over a territory of 31,000 square miles, and, as the permission to trade, included in the Charter, has not been taken advantage of, the British North Borneo Company now does actually exist "as a Territorial Power" and not "as a Trading Company."

Not only this, but the example has been followed by Prince Bismarck, and German Companies, on similar lines, have been incorporated by their Government on both coasts of Africa and in the Pacific; and another British Company, to operate on the Niger River Districts, came into existence by Royal Charter in July, 1886.

It used to be by no means an unusual thing to find an educated person ignorant not only of Borneo's position on the map, but almost of the very existence of the island which, regarding Australia as a continent, and yielding to the claims recently set up by New Guinea, is the second largest island in the world, within whose limits could be comfortably packed England, Scotland, Wales and Ireland, with a sea of dense jungle around them, as Wallace has pointed out. Every school-board child now, however, knows better than this.

Though Friar Odoric is said to have visited it about 1322, and Ludovico Berthema, of Bologna, between 1503 and 1507, the existence of this great island, variously estimated to be from 263,000 to 300,000 square miles in extent, did not become generally known to Europeans until, in 1518, the Portuguese Lorenzo de Gomez touched at the city of Brunai. He was followed in 1521 by the Spanish expedition, which under the leadership of the celebrated Portuguese circumnavigator Magellan, had discovered the Philippines, where, on the island of Mactan, their leader was killed in April, 1520. An account of the voyage was written by Pigafetta, an Italian volunteer in the expedition, who accompanied the fleet to Brunai after Magellan's death, and published a glowing account of its wealth and the brilliancy of its Court, with its royally caparisoned elephants, a report which it is very difficult to reconcile with the present squalid condition of the existing "Venice of Hovels," as it has been styled from its palaces and houses being all built in, or rather over, the river to which it owes its name.

The Spaniards found at Brunai Chinese manufactures and Chinese trading junks, and were so impressed with the importance of the place that they gave the name of Borneo—a corruption of the native name Brunai—to the whole island, though the inhabitants themselves know no such general title for their country.

In some works, Pulau Kalamantan, which would signify wild mangoes island, is given as the native name for Borneo, but it is quite unknown, at any rate throughout North Borneo, and the island is by no means distinguished by any profusion of wild mangoes.[1]

In 1573, a Spanish Embassy to Brunai met with no very favourable reception, and three years later an expedition from Manila attacked the place and, deposing a usurping Sultan, re-instated his brother on the throne, who, to shew his gratitude, declared his kingdom tributary to Spain.

The Portuguese Governor of the Moluccas, in 1526, claimed the honour of being the first discoverer of Borneo, and this nation appears to have carried on trade with some parts of the island till they were driven out of their Colonies by the Dutch in 1609. But neither the Portuguese nor the Spaniards seem to have made any decided attempt to gain a footing in Borneo, and it is not until the early part of the 17th century that we find the two great rivals in the eastern seas—the English and the Dutch East India Trading Companies—turning their attention to the island. The first Dutchman to visit Borneo was Oliver van Noort, who anchored at Brunai in December, 1600, but though the Sultan was friendly, the natives made an attempt to seize his ship, and he sailed the following month, having come to the conclusion that the city was a nest of rogues.The first English connection with Borneo was in 1609, when trade was opened with Sukadana, diamonds being said to form the principal portion of it.

The East India Company, in 1702, established a Factory at Banjermassin, on the South Coast, but were expelled by the natives in 1706. Their rivals, the Dutch, also established Trading Stations on the South and South-West Coasts.

In 1761, the East India Company concluded a treaty with the Sultan of Sulu, and in the following year an English Fleet, under Admiral Drake and Sir William Draper captured Manila, the capital of the Spanish Colony of the Philippines. They found in confinement there a Sultan of Sulu who, in gratitude for his release, ceded to the Company, on the 12th September, 1762, the island of Balambangan, and in January of the following year Mr. Dalrymple was deputed to take possession of it and hoist the British flag. Towards the close of 1763, the Sultan of Sulu added to his cession the northern portion of Borneo and the southern half of Palawan, together with all the intermediate islands. Against all these cessions the Spanish entered their protest, as they claimed the suzerainty over the Sulu Archipelago and the Sulu Dependencies in Borneo and the islands. This claim the Spaniards always persisted in, until, on the 7th March, 1885, a Protocol was entered into by England and Germany and Spain, whereby Spanish supremacy over the Sulu Archipelago was recognised on condition of their abandoning all claim to the portions of Northern Borneo which are now included in the British North Borneo Company's concessions.

In November, 1768, the Court of Directors in London, with the approval of Her Majesty's Ministers, who promised to afford protection to the new Colony, issued orders to the authorities at Bombay for the establishment of a settlement at Balambangan with the intention of diverting to it the China trade, of drawing to it the produce of the adjoining countries, and of opening a port for the introduction of spices, etc. by the Bugis, and for the sale of Indian commodities. The actual date of the foundation of the settlement is not known, but Mr. F. C. Danvers states that in 1771 the Court ordered that the Government should be vested in "a chief and two other persons of Council," and that the earliest proceedings extant are dated Sulu, 1773, and relate to a broil in the streets between Mr. Alcock, the second in the Council, and the Surgeon of the Britannia.

This was a somewhat unpropitious commencement, and in 1774 the Court are found writing to Madras, to which Balambangan was subordinate, complaining of the "imprudent management and profuse conduct" of the Chief and Council.

In February, 1775, Sulu pirates surprised the stockade, and drove out the settlers, capturing booty valued at about a million dollars. The Company's officials then proceeded to the island of Labuan, now a British Crown Colony, and established a factory, which was maintained but for a short time, at Brunai itself. In 1803 Balambangan was again occupied, but as no commercial advantage accrued, it was abandoned in the following year, and so ended all attempts on the part of the East India Company to establish a Colony in Borneo.

While at Balambangan, the officers, in 1774, entered into negotiations with the Sultan of Brunai, and on undertaking to protect him against Sulu and Mindanau pirates, acquired the exclusive trade in all the pepper grown in his country.

The settlement of Singapore, the present capital of the Straits Settlements, by Sir Stamford Raffles, under the orders of the East India Company in 1819, again drew attention to Borneo, for that judiciously selected and free port soon attracted to itself the trade of the Celebes, Borneo and the surrounding countries, which was brought to it by numerous fleets of small native boats. These fleets were constantly harassed and attacked and their crews carried off into slavery by the Balinini, Illanun, and Dyak pirates infesting the Borneo and Celebes coasts, and the interference of the British Cruisers was urgently called for and at length granted, and was followed, in the natural course of events, by political intervention, resulting in the brilliant and exciting episode whereby the modern successor of the olden heroes—Sir James Brooke—obtained for his family, in 1840, the kingdom of Sarawak, on the west coast of the island, which he in time purged of its two plague spots—head-hunting on shore, and piracy and slave-dealing afloat—and left to his heir, who has worthily taken up and carried on his work, the unique inheritance of a settled Eastern Kingdom, inhabited by the once dreaded head-hunting Dyaks and piratical Mahomedan Malays, the government of whom now rests absolutely in the hands of its one paternally despotic white ruler, or Raja. Sarawak, although not yet formally proclaimed a British Protectorate,[2] may thus be deemed the first permanent British possession in Borneo. Sir James Brooke was also employed by the British Government to conclude, on 27th May, 1847, a treaty with the Sultan of Brunai, whereby the cession to us of the small island of Labuan, which had been occupied as a British Colony in December, 1846, was confirmed, and the Sultan engaged that no territorial cession of any portion of his country should ever be made to any Foreign Power without the sanction of Great Britain.

These proceedings naturally excited some little feeling of jealousy in our Colonial neighbours—the Dutch—who ineffectually protested against a British subject becoming the ruler of Sarawak, as a breach of the tenor of the treaty of London of 1824, and they took steps to define more accurately the boundaries of their own dependencies in such other parts of Borneo as were still open to them. What we now call British North Borneo, they appear at that time to have regarded as outside the sphere of their influence, recognising the Spanish claim to it through their suzerainty, already alluded to, over the Sulu Sultan.

With this exception, and that of the Brunai Sultanate, already secured by the British Treaty, and Sarawak, now the property of the Brooke family, the Dutch have acquired a nominal suzerainty over the whole of the rest of Borneo, by treaties with the independent rulers—an area comprising about two-thirds of the whole island, probably not a tenth part of which is under their actual direct administrative control.They appear to have been so pre-occupied with the affairs of their important Colony of Java and its dependencies, and the prolonged, exhausting and ruinously expensive war with the Achinese in Sumatra, that beyond posting Government Residents at some of the more important points, they have hitherto done nothing to attract European capital and enterprise to Borneo, but it would now seem that the example set by the British Company in the North is having its effect, and I hear of a Tobacco Planting Company and of a Coal Company being formed to operate on the East Coast of Dutch Borneo.

The Spanish claim to North Borneo was a purely theoretical one, and not only their claim, but that also of the Sulus through whom they claimed, was vigorously disputed by the Sultans of Brunai, who denied that, as asserted by the Sulus, any portion of Borneo had been ceded to them by a former Sultan of Brunai, who had by their help defeated rival claimants and been seated on the throne. The Sulus, on their side, would own no allegiance to the Spaniards, with whom they had been more or less at war for almost three centuries, and their actual hold over any portion of North Borneo was of the slightest. Matters were in this position when Mr. Alfred Dent, now Sir Alfred Dent, K.C.M.G., fitted out an expedition, and in December, 1877, and January, 1878, obtained from the Sultans of Brunai and Sulu, in the manner hereafter detailed, the sovereign control over the North portion of Borneo, from the Kimanis river on the West to the Siboku river on the East, concessions which were confirmed by Her Majesty's Royal Charter in November, 1881.

I have now traced, in brief outline, the political history of Borneo from the time when the country first became generally known to Europeans—in 1518—down to its final division between Great Britain and the Netherlands in 1881.

If we can accept the statements of the earlier writers, Borneo was in its most prosperous stage before it became subjected to European influences, after which, owing to the mistaken and monopolising policy of the Commercial Companies then holding sway in the East, the trade and agriculture of this and other islands of the Malay Archipelago received a blow from which at any rate that of Borneo is only now recovering. By the terms of its Charter, the British North Borneo Company is prohibited from creating trade monopolies, and of its own accord it has decided not to engage itself in trading transactions at all, and as Raja Brooke's Government is similar to that of a British Crown Colony, and the Dutch Government no longer encourage monopolies, there is good ground for believing that the wrong done is being righted, and that a brighter page than ever is now being opened for Borneo and its natives.

Before finishing with this part of the subject, I may mention that the United States Government had entered into a treaty with the Sultan of Brunai, in almost exactly the same words as the English one, including the clause prohibiting cessions of territory without the consent of the other party to the treaty, and, in 1878, Commodore Schufeldt was ordered by his Government to visit Borneo and report on the cessions obtained by Mr. Dent. I was Acting British Consul-General at the time, and before leaving the Commodore informed me emphatically that he could discover no American interests in Borneo, "neither white nor black."

The native population of Borneo is given in books of reference as between 1,750,000 and 2,500,000. The aborigines are of the Malay race, which itself is a variety of the Mongolian and indeed, when inspecting prisoners, I have often been puzzled to distinguish the Chinese from the Malay, they being dressed alike and the distinctive pig-tail having been shaved off the former as part of the prison discipline.

These Mongolian Malays from High Asia, who presumably migrated to the Archipelago vi the Malay Peninsula and Sumatra, must, however, have found Borneo and other of the islands partially occupied by a Caucasic race, as amongst the aborigines are still found individuals of distinctive Caucasic type, as has been pointed out to be the case with the Buludupih tribe of British North Borneo, by Dr. Montano, whom I had the pleasure of meeting in Borneo in 1878-9. To these the name of pre-Malays has been given, but Professor Keane, to whom I beg to acknowledge my indebtedness on these points, prefers the title of Indonesians. The scientific descriptions of a typical Malay is as follows:—"Stature little over five feet, complexion olive yellow, head brachy-cephalous or round, cheek-bones prominent, eyes black and slightly oblique, nose small but not flat, nostrils dilated, hands small and delicate, legs thin and weak, hair black, coarse and lank, beard absent or scant;" but these Indonesians to whom belong most of the indigenous inhabitants of Celebes, are taller and have fairer or light brown complexions and regular features, connecting them with the brown Polynesians of the Eastern Pacific "who may be regarded as their descendants," and Professor Keane accounts for their presence by assuming "a remote migration of the Caucasic race to South-Eastern Asia, of which evidences are not lacking in Camboja and elsewhere, and a further onward movement, first to the Archipelago and then East to the Pacific." It is needless to say that the aborigines themselves have the haziest and most unscientific notion of their own origin, as the following account, gravely related to me by a party of Buludupihs, will exemplify:—

It somewhat militates against the correctness of this history that the Buludupihs are distinguished by the absence of Mongolian features.

The general appellation given to the aborigines by the modern Malays—to whom reference will be made later on—is Dyak, and they are divided into numerous tribes, speaking very different dialects of the Malayo-Polynesian stock, and known by distinctive names, the origin of which is generally obscure, at least in British North Borneo, where these names are not, as a rule, derived from those of the rivers on which they dwell.

The following are the names of some of the principal North Borneo aboriginal tribes:—Kadaians, Dusuns, Ida'ans, Bisaias, Buludupihs, Eraans, Subans, Sun-Dyaks, Muruts, Tagaas. Of these, the Kadaians, Buludupihs, Eraans and one large section of the Bisaias have embraced the religion of Mahomet; the others are Pagans, with no set form of religion, no idols, but believing in spirits and in a future life, which they localise on the top of the great mountain of Kina-balu. These Pagans are a simple and more natural, less self-conscious, people than their Mahomedan brethren, who are ahead of them in point of civilization, but are more reserved, more proud and altogether less "jolly," and appear, with their religion, to have acquired also some of the characteristics of the modern or true Malays. A Pagan can sit, or rather squat, with you and tell you legends, or, perhaps, on an occasion join in a glass of grog, whereas the Mahomedan, especially the true Malay, looks upon the Englishman as little removed from a "Kafir"—an uncircumcised Philistine—who through ignorance constantly offends in minor points of etiquette, who eats pig and drinks strong drink, is ignorant of the dignity of repose, and whose accidental physical and political superiority in the present world will be more than compensated for by the very inferior and uncomfortable position he will attain in the next. The aborigines inhabit the interior parts of North Borneo, and all along the coast is found a fringe of true Malays, talking modern Malay and using the Arabic written character, whereas the aborigines possess not even the rudiments of an alphabet and, consequently, no literature at all.

How is the presence in Borneo of this more highly civilized product of the Malay race, differing so profoundly in language and manners from their kinsmen—the aborigines—to be accounted for? Professor Keane once more comes to our assistance, and solves the question by suggesting that the Mongolian Malays from High Asia who settled in Sumatra, attained there a real national development in comparatively recent times, and after their conversion to Mahomedanism by the Arabs, from whom, as well as from the Bhuddist missionaries who preceded them, they acquired arts and an elementary civilization, spread to Borneo and other parts of Malaysia and quickly asserted their superiority over the less advanced portion of their race already settled there. This theory fits in well with the native account of the distribution of the Malay race, which makes Menangkabau, in Southern Sumatra, the centre whence they spread over the Malayan islands and peninsula.

The Professor further points out, that in prehistoric times the Malay and Indonesian stock spread westwards to Madagascar and eastwards to the Philippines and Formosa, Micronesia and Polynesia. "This astonishing expansion of the Malaysian people throughout the Oceanic area is sufficiently attested by the diffusion of common (Malayo-Polynesian) speech from Madagascar to Easter Island and from Hawaii to New Zealand."