BOKNEO 
255 
partly the cause of its selection, but the island has not 
fulfilled the expectations formed of it, and in 1889 its 
administration was made over to the British North 
Borneo Company. 
Labuan, as its name implies, is provided with an 
excellent harbour, but has few other advantages. It is 
low, flat, and swampy except at its northern end, and in 
spite of the greater part of the forest which covered it 
having been destroyed, the rainfall is excessive; a large 
portion of the land is unfit for cultivation, and the soil is 
on the whole poor. The low and marshy ground is, 
however, suitable for growing the sago-palm, and rice is 
cultivated. Plantations of the West African oil-palm 
(Elceis guineensis) have been tried with more or less 
success, but the chief trade is in sago. Factories where the 
raw product, as used by the natives, is washed and dried 
into the European commercial article have been estab¬ 
lished for many years. The flour thus obtained is sent to 
Singapore for granulation, and forms the principal item 
in the list of exports. The population in 1891 was 
nearly 6000, and the greater part of the trade is carried 
on by Chinese. The existence of the Company in North 
Borneo materially affected the condition of the island 
during the period of rivalry, but under the new adminis¬ 
tration, and especially since the establishment of 
Mempakol—the station on the mainland—its prospects 
are better. The coal-mines are now being worked by 
the new Central Bornean Company, who have steamers 
running twice a month to Singapore. Their efforts are 
being directed to the reconstruction of the railway from 
the mines to Victoria Harbour, which is now nearly com¬ 
pleted; and under,an improved system of working, the 
output is expected to be a large one. 
