Appendix No. 8. "Fur Seal Fisheries of the Pacific Coast and Alaska." THIS pamphlet, in connection with the Chart inclosed, is designed to explain more particularly to our Eastern Senators and Congressmen the full value of the fur-seal fisheries, in order that when the question of re-leasing the fur-seal islands of St. George and St. Paul arises, they may know exactly what they are doing, so that they may not grant a monopoly to any firm or Company for a trifle, which has been done in the past to the Alaska Commercial Company of San Francisco. These islands are so far away from the eastern part of our country that the great majority of merchants and business men know comparatively nothing about this great industry, and the profits connected with the same. The writer, during the past two or three years, has met a great many eastern visitors to our coast, and whenever the question of the fur-seal fisheries has been brought up he finds that in all cases they have not the slightest idea of the same, and whenever the value is explained, and Charts shown, showing just how broad the claim our Government has taken in its jurisdiction of the Behring's Sea, in protection of the fur-seal, or more particularly protecting the Alaska Commercial Company in their vast monopoly of the fur-seal fisheries, and by this monopoly enabling this Company to control nearly all of the fur trade of Alaska, they are astonished, and still more when it is further explained to them that the 100,000 fur-seals, as taken by the Alaska Commercial Company, bring nearly 2,000,000 dollars each year, and for this privilege the fee to the United States' Government is the small sum of 296,286 dol. 82 c., being the exact average amount paid by the Alaska Commercial Company, and to be paid by them each year, as claimed by the Alaska Commercial Company, during the twenty years of their lease. This is taken from the Alaska Commercial Company's own statement in their reply to Governor Swineford's charges (see p. 12 of that volume)—and these figures cannot be disputed by them-thus enabling the Company to make a clear profit of not less than 1,000,000 to 1,250,000 dollars each year off the seal islands alone. When they come to figure that this has been going on for nearly twenty years, it is easy to explain how they have controlled all the trade of this vast section. Evidently a strong effort is being made by certain parties that the leasing of the fur-seal islands shall be at the discretion of the Secretary of the Treasury to say who is the proper person to lease these islands to, and that a set sum shall be the specified amount for this lease. Below we copy an article cut from one of the daily papers, entitled— The Seal Fisheries. (An interesting Report presented to the House.) Washington, January 29. Representative Dunn, from the Committee on Merchant Marine and Fisheries, to-day presented the results of the investigation by the Committee into the fur-seal fisheries of Alaska, with special reference to whether the Contract giving the Alaska Commercial Company the right to take fur-seals had been violated. Dunn accompanied his Report with a Bill on the subject. It proposes to amend the present Law by providing that one year before the present lease to the Alaska Company expires, or when any future similar lease expires, the Secretary of the Treasury shall lease to the proper persons the right of taking fur-seals on the Islands of St. Paul and St. George for twenty years, at not less than 50,000 dollars per annum, and 3 dol. 50 c. in addition for each sealskin shipped from the islands. Such lease shall not be transferable. You will notice in this Report it is recommended that the Secretary of the Treasury shall lease to the proper persons. Now, the question is, who are the proper persons? Can any one read this Report and fail to see where the interest is? Why not put the leasing of these islands in a business shape like any other Government Contract? Let it be awarded to the highest bidder, give all a chance, and not allow this one man to decide who are the proper persons to whom these islands shall be leased. If it is done in this way it is safe to say that the next lease will realize from 600,000 to 800,000 dollars per annum to our Government, instead of 400,000 dollars, as per recommendation of Mr. Dunn. You will also notice that it is recommended to amend the Laws so that the Secretary of the Treasury shall not only have the power of re-leasing the islands, but that this Law shall apply to any future lease, thereby extending this power to an unlimited extent, in fact as long as these islands are of any value for leasing. Who would not like to be the Secretary of the Treasury and have this power? It would be almost as good as having the islands themselves. Now, we protest against such action. It shows fraud upon its face so plain that a blind man ought to see through it. This Report of the 29th January goes further on, and says: The present Law is declared to apply to all the waters of Behring's Sea in Alaska mentioned in the Treaty with Russia by which Alaska was ceded to the United States, and the President shall take measures to have arrested all persons, and seized all vessels, violating the laws of the United States therein. In addition to the above provision is made for the protection of the salmon fisheries. The Report recommends that the Act to prevent the extermination of our fur-bearing animals in Alaska be continued in force with certain amendments, believing that not only the system it adopts but the methods of carrying it into effect are well adapted for the purpose indicated. In conclusion, the Committee finds the following facts:- That if the Law protecting seal life is enforced, the preservation of the seal rookeries will be assured the revenue continued and increased, and the native inhabitants of the seal islands maintained, without cost to the Government; that the Alaska Commercial Company has fully performed its Contract with the Government, and has contributed liberally to the support, maintenance, comfort, and civilization of the inhabitants of not only the seal islands, but to those of the Aleutian Islands, Kodiac, and the mainland; that the fur-seal industry will have paid into the Treasury over 8,000,000 dollars during the period of the present lease; that the chief object of the purchase of Alaska was the acquisition of the valuable products of Behring's Sea, that at the cession of Alaska to the United States the Russian title to Behring's Sea was perfect and undisputed, and that by virtue of the cession the United States acquired complete title to all that portion of Behring's Sea situated within the limits prescribed by Treaty. In reviewing this part of the Report we are not prepared to say that the Company has not fulfilled all of its obligations to the Government, certainly it should have done so with the profits connected with this monopoly. This part of the Report was, as we understand, the result of an investigation of the charges made by Governor Alfred P. Swineford, of Alaska, against the Alaska Commercial Company. We hereby republish Governor Swineford's reply, as published in various papers previous to this date : Governor Swineford's Report. The annual Report of Governor Swineford, of Alaska, on the territory and the operations of the Alaska Commercial Company was laid before both Houses of Congress on the 19th January. The Governor reaffirms and emphasizes the accusations heretofore made by him against the Company in its dealings with the natives other than those living on the seal islands. Concerning the treatment of these he has no word of complaint. He also says that the Company's Contract with the Government relative to the taking of fur-seal is, in his opinion, faithfully observed. The Company's treatment of the mainland natives he characterizes as unjust and cruel in the extreme. Referring to the denial of the charges against the Company in his last annual Report, he says: I now and here reiterate every one of those charges, though I know full well that an investigation made by a Committee of Congress, holding its sessions in Washington, and calling as witnesses only those who have been recipients of the Company's favours, is not likely to arrive at any just conclusion as to their truth or falsity. I can only say that each and every statement I have made concerning the operations of the Company is susceptible of the clearest and most convincing proof, but the evidence will not be found lying around loose in the cities of Washington and San Francisco. It must be sought for among the people who have suffered from its oppressions rather than in the persons of those who have had free transportation on its ships and been wined and dined at the tables of its officers and agents. A Sub-Committee of Congress going over the route taken by me in the recent cruize of the Thetis,' assuring the people of protection against still greater oppression after its departure, will have no difficulty whatever in finding the evidence to prove the truth of every statement I have made." The Report for 1887 above referred to was published in the "Fur Trade Review" for July 1887. The "Fur Trade Review" can be obtained by addressing the publishers, No. 35, Bond Street, New York City. In referring to the part of this Report where it is claimed that the fur-seal industry will have paid into the Treasury over 8,000,000 dollars during the period of the present lease, we claim this part to be false. The Government has not, and will not, have received it at the end of the lease, and taking the Alaska Commercial Company's reply to Governor Swineford's charge in referring to what they have paid, the Alaska Commercial Company says:- "As this part of the subject bears upon the Company's relation to the Government, we may be excused for here calling attention to the fact that the total annual tax and rental paid by this Company to the United States from the 1st July, 1870, to August 1887, amounts to 5,290,736 dol. 49 c. Calculating that the full number of fur-seals for the next two years be taken, we will have paid the full sum of 5,925,736 dol. 49 c." See pp. 11 and 12 of reply of the Alaska Commercial Company to the charge of Governor Alfred E. Swineford, of Alaska, against the Company, in his annual Report for the year 1887. Now, this is copied directly from the Alaska Commercial Company's reply. Taking their own figures for the same, where they only claim they will have paid into the Treasury at the end of their lease 5,925,736 dol. 49 c., this leaves a difference of 2,074,263 dol. 51 c. between what they will actually have paid, according to their own figures, and what is claimed in the Report of Representative Dunn. Now, we ask, why this false representation by one of our Representatives? Having now fully shown why this Report, as recommended, should have no bearing-showing the falsity of the same-we will now go further, and show the value of the catch of the 100,000 fur-seals, as taken by the Alaska Commercial Company for the year 1888. We will also show nearly the actual cost of the expense to the Company in taking them, sending to market, commissions, &c. While this is a difficult matter to do exactly, we will come near it, and allow long margins in favour of this expense, enough so that it will undoubtedly leave a balance in their favour ... 296,286 82 In the first place, we take their average amount paid to the Government, as per their own estimate and statement This must be correct. ... ... ... We then take the money paid to the natives for killing and skinning the seal. "There are 87 families on St. Paul Island; there are 26 families on St. George Island; making 113 families in all." We will give the benefit of 450 dollars for each family, which is the highest price claimed as being paid to them for their service (see p. 16 in their reply to Governor Swineford's charge). This would give total expense for killing, skinning, curing, and loading into the vessel, as paid to the natives ... ... This allows the very highest estimate paid for this service, according to their own Report. We will now make an allowance of ... ... for expense of the Company on the islands for the year, independent of the sum paid to the natives. This is for white clerk hire, insurance, and for fuel, and an abundant supply of salted salmon, which is given to the natives free of charge, &c., which we think to be a full margin for this expense. The next item of expense is salt, which is the only article used to cure the skins. We will say that it takes 400 tons of salt-200 tons will do this, but on account of the short time in which seals are taken, it does not allow much time to use it over, which can be done two or three times. This salt at present is worth 9 dollars per ton in San Francisco, in small lots of 1 to 10 tons. We will say that it cost that for 400 tons, making expense of salt The next item is cost of transportation from the island to San Francisco. The steamer "St. Paul" is designed for this purpose. She made three trips during the year 1888, clearing from San Francisco for Ounalaska ... 1st trip, cleared March 22, 1888. 2nd trip, cleared May 12, 1888. 3rd trip, cleared September 13, 1888. Each time the manifest called for assorted goods and merchandize of various kinds, and fully one-half of which was consigned to other parts of Alaska, so that probably one-half of the expense of this steamer could be charged to other business, independent of the seal islands. On two of these trips she cleared with thirty men, and once with thirty-one. The steamer is probably employed eight months in the year. The expense of this cannot be accurately estimated, but by estimating the expense of this vessel for the year, would, we think, give long margin, so as to include wear and tear, interest on investment, insurance, &c.; this would give expense a fair estimate until goods are laid in San Francisco. We will allow 1 per cent. insurance to London on, say, 1,250,000 dollars, which would probably be the extent that these skins could be insured for, and which amounts to When the skins arrive in San Francisco they are packed in casks, especially made for this purpose, which contain on an average 40 to 45 skins, calling 40 skins. This would make 2,500 casks. San Francisco market value of same is 2 dol. 25 c. each, making total expense We will give expense of packing in casks, drayage, and storage in San Francisco... The freight at present time between San Francisco and New York, in carload lots, for seal-skins in pickle, is 2 cents per lb. When packed they will average nearly 16 lbs., and taking this as a basis, they would make nearly 1,600,000 lbs., at 2 cents per lb. We will say it cost one-half this amount to lay and deliver them in London viâ steamer from New York, which, we think, is a large estimate This lays them in London ready for sale. The purchaser has a discount of 2 per cent. allowed him, which is deducted from his purchase. This would make on 1,890,094 dol. 29.96 c., amount realized for the skins 50,000 00 18,750 00 5,375 00 5,000 00 This gives total expense of catching, curing, and marketing the 100,000 seals C. M. Lampson and Co.'s charges for commission on the sale of salted fur-seal skins, which include insurance, storage, &c., after the goods are delivered to them, is 4 per cent. 470,992 93 These figures are practically correct, and can be verified. This amounts to within 88,375 dollars which is estimated, but the estimates are made long enough so that any Company obtaining the future lease of these islands can contract in San Francisco for this portion of the expense at these figures, and even less. Having now found the actual cost, or near the same, of the 100,000 seals, we will go further and find what these seals were sold for; we can then determine the profit, or near it, for the year the 100,000 seals. 1888 on The skins, after arriving in London, were sold on the 6th November, 1888, by C. M. Lampson and Co., at public sale at the London Commercial Sale Rooms, Mincing Lane, as per their catalogue, which can be obtained from all exporters of furs, or from all large fur houses in the principal cities of the United States. They were sold in lots, the largest lot of which contained 222 skins, and the prices ranged from 130s. per skin down to 29s. In order to get at the exact amount realized by the sale, we have assorted the lots, and find that they brought as follows: Now, in summing up the different lots, I find that instead of there being only 100,000 skins, as represented at the beginning of Lampson and Co.'s catalogue, consisting of 97,871 Alaska fur-seal skins, salted, and 2,129 Alaska seal skins, dressed natural, there was 100,016 skins, which realized 389,9117. 3s., which, when reduced to United States' money on the basis of 4 dol. 84 c. to the pound sterling, amounts to 1,890,094 dol. 29.69 c., thus bringing on an average 18 dol. 89.79 c. per skin. for the year 1888. Figuring this as general merchants do, it makes nearly a net profit of 238 per cent. on the capital invested. Talk about your sugar trust, gas stock, Water Companies, railroads, &c., this lays them all in the shade in the matter of profits. These figures are not mere guess work, but the facts, and any one by following the directions as specified can find vouchers for all these estimates. Having now shown the value of this privilege in a fair and business manner, we ask, is it right and just to the business men, merchants, capitalists, and persons of the United States who have money to invest, and are more than willing to invest where there is a reasonable chance for returns, that this privilege should be placed at the discretion of one man to decide who is the proper person to have this privilege? Are we not right in this claim that if it is placed like any other Government contract that 600,000 to 800,000 dollars per year will be offered for this privilege, and by parties who will give as good bonds as can be had for the fulfilment of their contract? Among the various methods for handling of the fur-seals, one is that the Government shall take charge of this, and conduct this business so as to derive all the benefit therefrom, which is not a bad one. Some would say the Government could not do this. It seems plain and easy. Let the Government take charge of this Reservation. The articles necessary to conduct the business could be bought the same as it now is, with ordinary supplies, by bids. A competent foreman can be obtained among its officers to superintend the killing and curing of the seal, as it requires no great skill to do this. The Government steamer "Bear" could be used to transport supplies on its trip to the Arctic in the spring and bring back to San Francisco the seal-skins on their return trip in the fall, thereby causing but little expense, as on both trips to and from the Arctic they pass within 50 miles of these islands. The skins could be packed and shipped under the provision of the Government officials to C. M. Lampson and Co. for sale, and returns made direct to the Treasurer of the United States. This seems to be the best and most practical way to dispose of this franchise, thereby deriving all the benefits there may be in it to the Government. The privilege of conducting a general store on the islands could be sold the same as with other Reservations, as 113 families would undoubtedly support one good general merchandize store. Another way, which we think would be much better for the best interest of the people of the Pacific coast, would be as follows. Let the Government take charge of this Reservation, and, instead of killing 100,000, take 50,000 seals; and in doing this, let the selection be more thorough, so that the 50,000 skins shall be strictly choice skins, that would average the highest possible price. Then abandon the present policy of claiming the Behring's Sea as an inland sea, which cannot be made to stand in the end. Restrict the killing of seal within the 3-mile or 6-mile limit, whatever is decided to be the limit of what a nation can hold authority over the high seas, and in this way it would promote the industry of private sealing to a much larger extent than it now is. A person not knowing the value of this industry would ask wherein it would be to the interest of the Pacific coast to promote the sealing industry by private individuals. The answer is, three-fourths of the money derived from the catch of the private sealer is put right into circulation in this manner; in fact, quite a large percentage is put into circulation before the vessel leaves port. In order to make this more plain, we will give the detail of the private-sealer business. In the first place, a vessel has to be secured, either by chartering or purchasing. The vessels employed in this business are mostly small schooners ranging from 40 to 110 tons burden, 70 tons being a fair average for size. We will say an order is given to our ship-yards for a vessel for sealing: For a new vessel of this description of 70 tons a fair price in San Francisco is This is designed to carry six otter- or sealing-boats, and a crew of twenty-one men. As soon as the vessel is received from the ship-yard, she has to be furnished with her anchors, chains, spare ropes, an extra suit of sails, dishes, cooking utensils, and other articles too numerous to mention, of which is a low estimate. ... ... ... ... The next item is the six hunting-boats, with an average of 100 dollars each A complete new outfit of guns, rifles, and ammunition, ranging from 600 to 900 dollars, according to the ideas of the master or owner, which we will call ... ... ... ... ... ... ... ... ... Dol. c. 7,000 00 ... 2,500 00 600 00 ... 750 00 Salt for curing the skins Then comes the item of provisions, coal, &c., for a cruize of eight months for twenty-one men, would average The slop-chest, which consists of clothing, blankets, boots and shoes, tobacco and medicines suitable for a cruize, and which the law forces all masters to take, is estimated The vessel is now ready for sea except the crew. These as a rule go on a lay, but all being poor men, they generally have an advance paid to them, ranging from 20 to 100 dollars, and with a crew of twenty-one men a master may be considered lucky if he gets off with less than advance money for his crew. This is as low an estimate as a vessel carrying six boats can be built and furnished for her first trip, with a reasonably fair outfit suitable to make a success of the business. This is near the actual expense which any one would be at to engage in this business. Of course, this amount would îmmediately go into circulation. At the present time there are about fifteen American vessels on the Pacific coast engaged in this business. Now could this business be brought up to 115 vessels, it would require 100 new vessels and outfits, which would at once put into circulation 1,350,000 dollars at the lowest calculation possible, and would give employment to 2,100 men. We will now estimate the average catch of the private sealer at 10,000 dollars each. This, one season with another, is a fair average catch, and would realize 1,000,000 dollars for the 100 vessels. The crew, at the end of the season, come in to be paid off, and, as a rule, receive one-half of the catch, which amounts to 500,000 dollars. This is put immediately into circulation, leaving the balance in the owner's hands to balance his outlay on the trip whatever net profit there may be in the business. We will say that it is divided between the 100 owners. Now these 100 owners support 100 families, as a rule, and spend much more than though it was made and handled by four or five men in a stock Company. This explains wherein it is to the best advantage for the Pacific coast to have this business open to any one who wished to invest in the same. It is plain to be seen if this extra amount of business could be distributed on the Pacific coast between San Francisco, Portland, Port Townsend, Seattle, and other shipping points, it would promote all trade and business, with perhaps the exception of the hack-driver and undertaker. The Government at the same time would derive a large revenue on the sale of the 50,000 skins, enough to pay a dividend on the purchase of Alaska larger than it ever has done, and have a margin to protect the seals on their breeding grounds, which is conceded by all should be done. We understand the objection made to the private sealers is made by those who do not understand how the hunting of seal is done. The reason for the objection is, that the private sealer will destroy all the seals and break up the seal rookeries. We ask: Has there ever been a seal rookery broken up and destroyed by hunters with fire-arms when used at sea from 10 to 20 miles away from the rookeries, and in most instances 50 miles away from the rookeries? We answer, No; it never has been done, and never can be done. In all cases where rookeries have been broken up it has been done by hunters directly on the beach where the seal land, and by hunting and killing them indiscriminately, so that they could not land and have their young, and care for the same. The killing of seal from 10 to 20 miles away from the rookeries is quite another thing. The seal there is not at the mercy of the hunter, as it has plenty of sea room, and is able to take care of itself, and is no easy game to capture, even by the most skilful hunter. This will be understood when it is considered that 2,500 seals is an exceptionally good catch for a vessel carrying twenty-one men, who are generally out seven or eight months getting this many. This shows that the seal, when away from laad and at sea, is a hard animal to capture, and that they can never be exterminated by hunting at sea as now done, any more than the ducks and geese can be all killed, while on their way to and from breeding grounds in the Arctic. |
