As Sir RUTHERFORD ALCOCK, their able and conscientious Chairman, explained to the shareholders at a recent meeting, "with reference to the important question of expenditure, the position of the Company was that of a man coming into possession of a large estate which had been long neglected, and which was little better than a wilderness. If any rent roll was to be derived from such a property there must be, in the first place, a large outlay in many ways before the land could be made profitable, or indeed tenantable. That was what the Company had had to do and what they had been doing; _and that had been the history of all our Colonies_." I trust that the few observations I have offered will have shewn my readers that, though British North Borneo might be described as a wilderness so far as regards the absence of development when the Company took possession of it, such a description is by no means applicable to it when regard is had to its great and undoubted natural resources. British North Borneo not being a Crown Colony, it has to provide itself for the maintenance of order, both ashore and afloat, without assistance from the Imperial Army or Navy, except such temporary assistance as has been on two occasions accorded by Her Majesty's vessels, under circumstances which have been detailed. There are no Imperial Troops stationed either in Labuan or in any portion of Borneo, and the Company has organized an armed Police Force to act both in a military and in a civil capacity. The numbers of their Force do not much exceed two hundred of all ranks, and are composed principally of Sikhs from the Punjaub and a few Dyaks from Sarawak--an excellent mixture for fighting purposes, the Dyaks being sufficiently courageous and expert in all the arts of jungle warfare, while the pluck and cool steadiness under fire of the Sikhs is too well-known to need comment here. The services of any number of Sikhs can, it appears, be easily obtained for this sort of work, and some years ago a party of them even took service with the native Sultan of Sulu, who, however, proved a very indifferent paymaster and was soon deserted by his mercenaries, who are the most money-grabbing lot of warriors I have ever heard of. Large bodies of Sikhs are employed and drilled as Armed Constables in Hongkong, in the Straits Settlements and in the Protected Native States of the Malay Peninsula, who, after a fixed time of service, return to their country, their places being at once taken by their compatriots, and one cannot help thinking what effect this might have in case of future disturbances in our Indian Empire, should the Sikh natives make common cause with the malcontents. Fault has been found with the Company for not following the example of Sarawak and raising an army and police from among its own people. This certainly would have been the best policy had it only been feasible; but the attempt was made and failed.