The area of the territory ceded by the original grants was estimated at 20,000 square miles, but the additions which have been already mentioned now bring it up to about 31,000 square miles, including adjacent islands, so that it is somewhat larger than Ceylon, which is credited with only 25,365 square miles. In range of latitude, in temperature and in rainfall, North Borneo presents many points of resemblance to Ceylon, and it was at first thought that it might be possible to attract to the new country some of the surplus capital, energy and aptitude for planting which had been the foundation of Ceylon's prosperity. Even the expression "The New Ceylon" was employed as an alternative designation for the country, and a description of it under that title was published by the well known writer--Mr. JOSEPH HATTON. These hopes have not so far been realized, but on the other hand North Borneo is rapidly becoming a second Sumatra, Dutchmen, Germans and some English having discovered the suitability of its soil and climate for producing tobacco of a quality fully equal to the famed Deli leaf of that island. The coast line of the territory is about one thousand miles, and a glance at the map will shew that it is furnished with capital harbours, of which the principal are Gaya Bay on the West, Kudat in Marudu Bay on the North, and Sandakan Harbour on the East. There are several others, but at those enumerated the Company have opened their principal stations. Of the three mentioned, the more striking is that of Sandakan, which is 15 miles in length, with a width varying from 11 miles, at its entrance, to 5 miles at the broadest part. It is here that the present capital is situated--Sandakan, a town containing a population of not more than 5,000 people, of whom perhaps thirty are Europeans and a thousand Chinese., For its age, Sandakan has suffered serious vicissitudes. It was founded by Mr. PRYER, in 1878, well up the bay, but was soon afterwards burnt to the ground. It was then transferred to its present position, nearer the mouth of the harbour, but in May, 1886, the whole of what was known as the "Old Town" was utterly consumed by fire; in about a couple of hours there being nothing left of the _atap_-built shops and houses but the charred piles and posts on which they had been raised above the ground. When a fire has once laid hold of an atap town, probably no exertions would much avail to check it; certainly our Chinese held this opinion, and it was impossible to get them to move hand or foot in assisting the Europeans and Police in their efforts to confine its ravages to as limited an area as possible. They entertain the idea that such futile efforts tend only to aggravate the evil spirits and increase their fury. The Hindu shopkeepers were successful in saving their quarter of the town by means of looking glasses, long prayers and chants. It is now forbidden to any one to erect atap houses