The opium is purchased by the chartered company from the Government of the Straits Settlements for $1.20 a tael (about one-tenth of a pound troy) and, after being adulterated with various substances, is sold to the opium farmers, nearly all of whom are Chinese, for $8.50 a tael, the company thus making a very comfortable margin of profit on the transaction. The opium farmers either keep opium dens themselves or sell the drug to anyone wishing to buy it, just as a tobacconist sells cigars and cigarettes. The sale of the opium privilege in Sandakan alone nets the government, so I was informed, something over $500,000 annually.
Now, iniquitous and deplorable as such a traffic is, the British North Borneo administration is not the only government engaged in the sale of opium. But it is the only government, so far as I am aware, which virtually forces the drug on its people by insisting that it shall be purchasable in localities which might otherwise escape its malign influence. A planter who, actuated either by moral scruples or by a desire to maintain the efficiency of his laborers, opposes the opening of an opium farm on his estate, might as well sell out and leave Borneo, for the company will promptly retaliate for such interference with its revenues by cutting off his supply of labor. It will defend its action by naïvely asserting that, as the coolies would contrive to obtain the drug any way, the planter, in refusing to permit the opening of an opium farm on his property, is guilty of conniving at the illegal use of the drug!
The British North Borneo Company professes to find justification for engaging in the opium traffic by insisting that, as the Chinese will certainly obtain opium clandestinely if they cannot obtain it openly, it is better for everyone concerned that its sale and use should be kept under government control. The fact remains, however, that China, decadent though she may be and desperately in need of increased revenues, has succeeded, in spite of the powerful opposition of the British-owned Opium Ring, in putting an end to the traffic within her borders, while Siam, likewise under Oriental rule, is about to do the same. It is a curious commentary on European civilization that this vice, which the so-called "backward" races are vigorously attempting to stamp out, should be not only permitted but encouraged in a country over which flies the flag of England. Its effects on the population are summed up in this sentence from a letter written me by a former high official of the chartered company: "Fifty per cent of the thefts and robberies committed during the period that I was magistrate in that territory can be directly traced to opium and gambling."