evidence: Northeastern Borneo, the territory that is now Sabah, was the last area to be brought under British control. In the early 1700s Brunei transferred its claims over much of the region to the sultan of Sulu, who ruled from the Sulu Archipelago (now part of the Philippines) to the east. Except in the far northeast, actual Sulu power remained limited. Occasional local resistance to Brunei or Sulu influence, as well as extensive coastal raiding and confusion of suzerainty, invited Western interest beginning in the 18th century. Despite short-lived American activity in the 1860s, British power proved most decisive. By 1846 the British had already acquired the offshore island of Labuan from Brunei. They gained a toehold in northeastern Borneo proper in 1872, when British merchant William Cowie founded an east-coast settlement at Sandakan, on lease from Sulu. Having obtained rights to much of the territory by 1881, the British launched the British North Borneo Company, which, based in Sandakan, ruled the British protectorate—as North Borneo—until 1941.