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CHAPTER III
"WHERE THERE AIN'T NO TEN COMMANDMENTS"

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Until I went to British North Borneo I had considered the British the best colonial administrators in the world. And, generally speaking, I hold to that opinion. But what I saw and heard in that remote and neglected corner of the Empire disclosed a state of affairs which I had not dreamed could exist in any land over which flies the British flag. It was not the iniquitous character of the administration which surprised me, for I had seen the effects of bad colonial administration in other distant lands—in Mozambique, for example, and in Germany's former African possessions—but rather that such an administration should be carried on by Englishmen, by Anglo-Saxons. Were you to read in your morning paper that an ignorant alien had been arrested for brutally mistreating one of his children you would not be particularly surprised, because that is the sort of thing that might be expected from such a man. But were you to read that a neighbor, a man who went to the same church and belonged to the same clubs, whom you had known and respected all your life, had been arrested for mistreating one of his children, you would be shocked and horrified.

Save on the charge of indifference and neglect, neither the British people nor the British government can be held responsible for the conditions existing in North Borneo, for strictly speaking, the country is not a British colony, but merely a British protectorate, being owned and administered by a private trading corporation, the British North Borneo Company, which operates under a royal charter. But the idea of turning over a great block of territory, with its inhabitants, to a corporation whose sole aim is to earn dividends for its absentee stockholders, is in itself abhorrent to most Americans. What would we say, I ask you, if Porto Rico, which is only one-tenth the size of North Borneo, were to be handed over, lock, stock and barrel, to the Standard Oil Company, with full authorization for that company to make its own laws, establish its own courts, appoint its own officials, maintain its own army, and to wield the power of life and death over the natives? And, conceiving such a condition, what would we say if the Standard Oil Company, in order to swell its revenues, not only permitted but officially encouraged opium smoking and gambling; if, in order to obtain labor for its plantations, it imported large numbers of ignorant blacks from Haiti and permitted the planters to hold those laborers, through indenture and indebtedness, in a form of servitude not far removed from slavery; if it authorized the punishment of recalcitrant laborers by flogging with the cat-o'nine-tails; if it denied to the natives as well as to the imported laborers a system of public education or a public health service or trial by jury; and finally, if, in the event of insurrection, it permitted its soldiery, largely recruited from savage tribes, to decapitate their prisoners and to bring their ghastly trophies into the capital and pile them in a pyramid in the principal plaza? Yet that would be a fairly close parallel to what the chartered company is doing in British North Borneo. As I have already remarked, North Borneo is a British protectorate. And it is in more urgent need of protection from those who are exploiting it than any country I know. But the voices of the natives are very weak and Westminster is far away.

With the exception of Rhodesia, and of certain territories in Portuguese Africa, North Borneo is the sole remaining region in the world which is owned and administered by that political anachronism, a chartered company. It was in the age of Elizabeth that the chartered company, in the modern sense of the term, had its rise. The discovery of the New World and the opening out of fresh trading routes to the Indies gave a tremendous impetus to shipping, commercial and industrial enterprises throughout western Europe and it was in order to encourage these enterprises that the British, Dutch and French governments granted charters to various trading associations. It was the Russia Company, for example, which received its first charter in 1554, which first brought England into intercourse with an empire then unknown. The Turkey Company—later known as the Levant Company—long maintained British prestige in the Ottoman Empire and even paid the expenses of the embassies sent out by the British Government to the Sublime Porte. The Hudson's Bay Company, which still exists as a purely commercial concern, was for nearly two centuries the undisputed ruler of western Canada. The extraordinary and picturesque career of the East India Company is too well known to require comment here. In fact, most of the thirteen British colonies in North America were in their inception chartered companies very much in the modern acceptation of the term. But, though these companies contributed in no small degree to the commercial progress of the states from which they held their charters, though they gave colonies to the mother countries and an impetus to the development of their fleets, they were all too often characterized by misgovernment, incompetence, injustice and cruelty in their dealings with the natives. Moreover, they were monopolies, and therefore, obnoxious, and almost without exception the colonies they founded became prosperous and well-governed only when they had escaped from their yoke. The existence of such companies today is justified—if at all—only by certain political and economic reasons. It may be desirable for a government to occupy a certain territory, but political exigencies at home may not permit it to incur the expense, or international relations may make such an adventure inexpedient at the time. In such circumstances, the formation of a chartered company to take over the desired territory may be the easiest way out of the difficulty. But it has been demonstrated again and again that a chartered company can never be anything but a transition stage of colonization and that sooner or later the home government must take over its powers and privileges.

The story of the rise of the British North Borneo Company provides an illuminating insight into the methods by which that Empire On Which the Sun Never Sets has acquired many of its far-flung possessions. Though the British had established trading posts in northern Borneo as early as 1759, and had obtained the cession of the whole northeastern promontory from the Sultan of Sulu, who was its suzerain, the hostility of the natives, who resented their transfer to alien rule, was so pronounced that the treaty soon became virtually a dead letter and by the end of the century British influence in Borneo was to all intents and purposes at an end. Nor was it resumed until 1838, when an adventurous Englishman, James Brooke, landed at Kuching and eventually made himself the "White Rajah" of Sarawak. In 1848 the island of Labuan, off the northwestern coast of Borneo, was occupied by the British as a crown colony and some years later the Labuan Trading Company established a trading post at Sandakan. In an attempt to open up the country and to start plantations the company imported a considerable number of Chinese laborers, but it did not prosper and its financial affairs steadily went from bad to worse. As long as the company kept its representative in Sandakan supplied with funds he managed to maintain a certain authority among the natives. But one day he received a letter bearing the London postmark from the company's chairman. It read:

Where the Strange Trails Go Down

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