BORNEO 
249 
Overbeck concluded negotiations with the Sultans of 
Brunei and Sulu, by which certain territories were 
granted to them by the latter in fee simple. A pro¬ 
visional company was formed, and a Boyal Charter 
petitioned for. It was granted, and on the 1st 
November, 1881, the British North Borneo Company, 
with an available capital of about £400,000, commenced 
its existence. Various inland districts and the small 
Mantanani Islands were acquired later; in 1889 the 
British Colony of Labuan was placed under the adminis¬ 
tration of the Company, and finally a British Protectorate, 
established in 1888, has materially strengthened the 
position of the country. Brunei and Sarawak being also 
under British protection, many difficulties with regard to 
external politics are removed, and trade having steadily 
improved, the new colony may be said to have a fair 
chance of ultimately succeeding. 
The territory thus acquired has, including the islands, 
an estimated area of 31,000 square miles. It extends 
from the Sipitong river in Brunei Bay to Sta. Lucia 
Bay on the east coast, and its coast-line measures about 
1000 miles. It is thus slightly larger than Ceylon. It 
possesses a number of excellent harbours, the soil is 
both rich and fertile, and though it is without the 
numerous navigable rivers of Dutch Borneo, there are in 
most districts sufficient waterways into the interior to 
serve for the transport of produce. The central position 
of the country is likewise in its favour, while its 
proximity to China, and the marked preference the 
Chinese have always shown for Borneo, have considerably 
simplified the labour question. 
The Government is administered by a Governor, with 
whom is associated a Colonial Secretary. There are two 
Residents and several Assistant Residents. The mode of 
