British North Borneo Chartered Company

Though the first intervention of the British Government in the Borneo sphere dates from 1847, with the occupation of the Island of Labuan, it was only in 1882 that British North Borneo as it then exists became English under a royal charter—a position which was further strengthened in 1888 by the declaration of Her Majesty's Government that the territory was under British protection, and then it was that the official title of State of North Borneo was assumed. As a rule the public hears a great more of the advantages conferred by a royal charter than of the responsibilities which it imposes; but the latter are very heavy—'heavier, indeed, than the duties attached to any other form of government; for they are of a threefold nature. In the first place, the Chartered Company is answerable to the Empire by whom it is entrusted with the government of the country over which the charter is granted - a duty involving the extension to those regions of the principles of justice and equality for which the British race has become proverbial. This in itself, is a weighty task in a country such as Borneo was in 1882. The savage tribes inhabiting Borneo had to be conciliated or conquered, laws had to be promulgated, courts of justice to be provided , in fact, the whole mechanism of a modern civilized Government had to be created ab ovo .
Till the late 19th century ,they do so stand after as short a time ,shows that the State of North Borneo has fulfilled its trust towards the Empire. Not alone, however, has the trust been punctiliously fulfilled, but the State has not cost the taxpayer of the United Kingdom a single penny ,one of those happy exceptions proving the rule. On the contrary, England is deriving a yearly increasing benefit from the incorporation of British North Borneo amongst her possessions; for the trade of the protectorate is steadily growing.England has every reason to be proud of it's protectorate state, which not only has been its own bread-winner since its earliest infancy, but is already, though perhaps in only a small measure, contributing to the increase of the parent's wealth. In the second place, the Chartered Company is in no less degree responsible to the inhabitants of the country itself. These are represented in Borneo by the natives,Europeans, and Chinese.
The natives have not only acquiesced in English rule, but have proved by their peaceful intercourse with the white population that they appreciate the benefits of English civilization. The Chinese immigration is assuming greater proportions year by year; for in Borneo the China man meets with kindness, heir services are appreciated, and they finds ready and profitable employment, either in the cultivation of their own fields or in the tobacco plantations and other kindred industries, whilst practically the only tax to which they were subject to was that on their pet vice, opium smoking, from which the public Exchequer of the State derives an increasing revenue. As to the white man, they were subject to no taxation: saving the small duties on exports and imports. Indeed ,the first settlers who were mostly engage in the tobacco or the timber business, met with initial reverses. The tide has turned so far as the tobacco industry is concerned; for, .even if they leave out of their calculations the handsome dividend paid by the New London Borneo Tobacco Company, the importance of the tobacco plantations is proved by the rapid growth of the yearly exports. As for the timber business; China,has been the great market for Borneo hard woods; an unshaken confidence to a great revival and an era of prosperity in this particular branch of industry.
 In 1882 a large tract of territory in British North Borneo was vested in the Chartered Company of British.North Borneo. By the efforts of the directors the original area has since been considerably increased. In 1884 they acquired the Putatan and Padas districts, the latter of which was a most important acquisition. The following year was not less fruitful, bringing, as it did, to the Chartered Company the Kawang River and the Mantanani Islands, while in 1898 an arrangement was made with the Sultan of Brunei for the transfer to the company of all his sovereign rights over extensive districts lying north of the Padas river ; altogether then, the Charter covers an area of no less than 30,000 square miles. But to possess land was not the only aim of the Chartered Company; it had to be made productive. The coast has been studded center of population, whilst in the interior also there are trade settlements of growing importance, and in many parts the jungle has given place to the tobacco or sago field. As the development of such territories is impossible without means of communication, many miles of telegraph lines have been laid, numerous roads have been made, and a system of  miles of railway was being constructed.