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 raised along the Tampasuk, which is also noted for the Kalupis waterfall (1500 ft.), one of the highest in the world, though the volume of water is not great. Here also are the principal Bajau settlements. Throughout the Malayan Archipelago the words Bâjau and pěrômpak (pirate) are still used as synonymous terms. At the northern extremity of the island Marudu Bay receives the waters of the Marudu which rises on the western side of Mount Madalon. On the east coast the principal rivers are the Sugut, which rises in the hills to the east of Kinabalu and forms its delta near Torongohok or Pura-Pura Island; the Labuk, which has its sources 70 m. inland and debouches into Labuk Bay; and the Kinabatangan, the largest and most important river in the territory, which is believed to have its rise eastward of the range of which Trus Madi is the principal feature, and is navigable by steamer for a considerable distance and by native boats for a distance of over 100 m. from its mouth. Some valuable tobacco land, which, however, is somewhat liable to flood, and some remarkable burial-caves are found in the valley of the Kinabatangan. The remaining rivers of the east coast are the Segamah, which rises west of Darvel Bay, the Kumpong, and the Kalabakang, which debouches into Cowie Harbour. Taking it as a whole, the company’s territory is much less generously watered than are other parts of Borneo, which again compares unfavourably in this respect with the Malayan states of the peninsula. Many of the rivers, especially those of the west coast, are obstructed by bars at their mouths that render them difficult of access. Several of the natural harbours of North Borneo, on the other hand, are accessible, safe and commodious. Sandakan Harbour, on the north-east coast (5° 40′ N., 118° 10′ E.), runs inland for some 17 m. with a very irregular outline broken by the mouths of numerous creeks and streams. The mouth, only 2 m. across, is split into two channels by the little, high, bluff-like island of Barhala. The depth in the main entrance varies from 10 to 17 fathoms, and vessels drawing 20 ft. can advance half-way up the bay. The principal town in the territory, and the seat of government (though an attempt has been unsuccessfully made to transfer this to Jesselton on the west coast), is Sandakan, situated just inside the mouth of the Sarwaka inlet. At Silam, on Darvel Bay, there is good anchorage; and Kudat in Marudu Bay, first surveyed by Commander Johnstone of H.M.S. “Nigeria” in 1881, is a small but useful harbour.

Climate and Population.—The climate of North Borneo is tropical, hot, damp and enervating. The rainfall is steady and not usually excessive. The shade temperature at Sandakan ordinarily ranges from 72° to 94° F. The population of the company’s territory is not known with any approach to accuracy, but is estimated, somewhat liberally, to amount to 175,000, including 16,000 Chinese. Of this total about three-fourths are found in the districts of the west coast. The seashore and the country bordering closely on the west coast are inhabited chiefly by Dusuns, by Kadayans, by Bajaus and Ilanuns—both Malayan tribes—and by Brunei Malays. The east coast is very sparsely populated and its inhabitants are mostly Bajaus and settlers from the neighbouring Sulu archipelago. The interior is dotted with infrequent villages inhabited by Dusuns or by Muruts, a village ordinarily consisting of a single long hut divided up into cubicles, one for the use of each family, opening out on to a common verandah along which the skulls captured by the tribe are festooned. It has been customary to speak of these tribes as belonging to the Dyak group, but the Muruts would certainly seem to be the representatives of the aboriginal inhabitants of the island, and there is much reason to think that the Dusuns also must be classed as distinct from the Dyaks. The Dusun language, it is interesting to note, presents very curious grammatical complications and refinements such as are not to be found among the tongues spoken by any of the other peoples of the Malayan Archipelago or the mainland of south-eastern Asia. Dusuns and Muruts alike are in a very low state of civilization, and both indulge inordinately in the use of intoxicating liquors of their own manufacture.

Settlements and Communication.—The company possesses a number of small stations along the coast, of which Sandakan, with a population of 9 500, is the most important. The remainder which call for separate mention are Lahat Datu on Darvel Bay on the east coast; Kudat on Marudu Bay and Jesselton on Gaya Bay on the west coast. A railway of indifferent construction runs along the west coast from Jesselton to Weston on Brunei Bay, with a branch along the banks of the Padas to Tenom above the rapids. It was originally intended that this should eventually be extended across the territory to Cowie Harbour (Sabuko Bay) on the east coast, but the extraordinary engineering difficulties which oppose themselves to such an extension, the sparse population of the territory, and the failure of the existing line to justify the expectations entertained by its designers, combine to render the prosecution of any such project highly improbable. Sandakan is connected by telegraph with Mempakul on the west coast whence a cable runs to Labuan and so gives telegraphic communication with Singapore. The overland line from Mempakul to Sandakan, however, passes through forest-clad and very difficult country, and telegraphic communication is therefore subject to very frequent interruption. Telegraphic communication between Mempakul and Kudat, via Jesselton, has also been established and is more regularly and successfully maintained. The only roads in the territory are bridle-paths in the immediate vicinity of the company’s principal stations. The Sabah Steamship Company, subsidized by the Chartered Company, runs steamers along the coast, calling at all the company’s stations at which native produce is accumulated. A German firm runs vessels at approximately bi-monthly intervals from Singapore to Labuan and thence to Sandakan, calling in on occasion at Jesselton and Kudat en route. There is also fairly frequent communication between Sandakan and Hong-Kong, a journey of four days’ steaming.

Products and Trade.—The capabilities of the company’s territory are only dimly known. Coal has been found in the neighbourhood of Cowie Harbour and elsewhere, but though its quality is believed to be as good as that exported from Dutch Borneo, it is not yet known whether it exists in payable quantities. Gold has been found in alluvial deposits on the banks of some of the rivers of the east coast, but here again the quantity available is still in serious doubt. The territory as a whole has been very imperfectly examined by geologists, and no opinion can at present be hazarded as to the mineral wealth or poverty of the company’s property. Traces of mineral oil, iron ores, copper, zinc and antimony have been found, but the wealth of North Borneo still lies mainly in its jungle produce. It possesses a great profusion of excellent timber, but the difficulty of extraction has so far restricted the lumber industry within somewhat modest limits. Gutta, rubber, rattans, mangrove-bark, edible nuts, guano, edible birds’-nests, &c., are all valuable articles of export. The principal cultivated produce is tobacco, sago, cocoanuts, coffee, pepper, gambier and sugar-canes. Of these the tobacco and the sago are the most important. Between 1886 and 1900 the value of the tobacco crop increased from £471 to £200,000.

As is common throughout Malayan lands, the trade of North Borneo is largely in the hands of Chinese shopkeepers who send their agents inland to attend the Tamus (Malay, těmu, to meet) or fairs, which are the recognized scenes of barter between the natives of the interior and those of the coast. At Sandakan there is a Chinese population of over 2000.

Administration.—For administrative purposes the territory is divided into nine provinces: Alcock and Dewhurst in the north; Keppel on the west; Martin in the centre; Myburgh, Mayne and Elphinstone on the east coast; and Dent and Cunliffe in the south. The boundaries of these provinces, however, are purely arbitrary and not accurately defined. The form of government is modelled roughly upon the system adopted in the Malay States of the peninsula during the early days of their administration by British residents. The government is vested primarily in the court of directors appointed under the company’s charter, which may be compared to the colonial office in its relation to a British colony, though the court of directors interests itself far more closely than does the colonial