The mode of acquisition of British North Borneo has been referred to in former pages; it was by cession for annual money payments to the Sultans of Brunai and of Sulu, who had conflicting claims to be the paramount power in the northern portion of Borneo. The actual fact was that neither of them exercised any real government or authority over by far the greater portion, the inhabitants of the coast on the various rivers following any Brunai, Illanun, Bajau, or Sulu Chief who had sufficient force of character to bring himself to the front. The pagan tribes of the interior owned allegiance to neither Sultan, and were left to govern themselves, the Muhammadan coast people considering them fair game for plunder and oppression whenever opportunity occurred, and using all their endeavours to prevent Chinese and other foreign traders from reaching them, acting themselves as middlemen, buying (bartering) at very cheap rates from the aborigines and selling for the best price they could obtain to the foreigner.

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 assistance, 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, associates, successors and assigns 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 title 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 title 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 principal 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 passing 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 documents, 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 pronunciation.

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 principal 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 Pandassan 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 titles of Datu Bandahara and Raja of Sandakan.

On a company being formed to work the concessions, Baron von Overbeck resigned these titles 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 document, 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 assumption 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;

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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 assert 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 Kawang 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 principal 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 Tampassuk 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 Tampassuk, 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 assistance 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 assumed a very defiant attitude. 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 Éclat 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 Association" to carry on till a Chartered Company could be formed.

Mr. Dent found an able supporter in Sir Rutherford Alcock, 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 Association Limited, was formed in 1881, with a capital of £300,000, the Directors being Sir Rutherford Alcock, Mr. A. Dent, Mr. R. B. Martin, Admiral Mayne, and Mr. W. H. Read. The Association 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 passed the Great Seal on the 1st November, 1881, and constituted and incorporated the gentlemen above-mentioned as "The British North Borneo Company."

The Provisional Association 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 Association 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.

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