Inclosure 7 in No. 3.

Extract from the "Daily British Colonist" of April 6, 1886..

ALASKA SEAL CATCHING. The story goes that some poachers were fitting out in San Francisco to kill seals on the Federal preserves in Alaskan waters. To warn all such parties Secretary Manning addressed the following note to Collector Hager:-"Sir,

Treasury Department, March 16, 1886. "I transmit herewith, for your information, a copy of a letter addressed by the Department on the 12th March, 1881, to D. A. D'Ancona, concerning the jurisdiction of the United States in the waters of the Territory of Alaska, and the prevention of the killing of fur-seals and other fur-bearing animals within such areas, as prescribed by Chapter 5, Title 23 of the Revised Statutes. The attention of your predecessor in office was called to this subject on the 4th April, 1881. This communication is addressed to you, inasmuch as it is understood that certain parties at your port contemplate the fitting out of expeditions to kill fur-seals in these waters. You are requested to give due publicity to such letters, in order that such parties may be informed of the construction placed by this Department upon the provision of law referred to.

"Collector of Customs, San Francisco."

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Respectfully yours,

(Signed)

"D. MANNING, Secretary.

Upon reference to back files we find the full explanation of this note in the letter referred to, which is as follows:

"Sir, Treasury Department, March 12, 1881. "Your letter of the 19th ultimo, requesting certain information in regard to the meaning placed by this Department upon the Law regulating the killing of fur-bearing animals in the Territory of Alaska, was duly received.

"The Law prohibits the killing of any fur-bearing animals, except as otherwise therein provided, within the limits of Alaska Territory, or in the waters thereof, and also prohibits the killing of any fur-seals on the Islands of St. Paul and St. George, or in the waters adjacent thereto, except during certain months.

"You inquire in regard to the interpretation of the terms waters there' and 'waters adjacent thereto,' as used in the Law, and how far the jurisdiction of the United States is to be understood as extending.

"Presuming your inquiry to relate more especially to the waters of Western Alaska, you are informed that the Treaty with Russia of the 30th March, 1870, by which the Territory of Alaska was ceded to the United States, defines the boundary of the territory so ceded. This Treaty is found on pp. 671 to 673 of the volume of Treaties of the Revised Statutes. It will be seen, therefore, that the limit of the cession extends from a line starting from the Arctic Ocean, and running through Behring's Strait to the north of St. Lawrence Islands.

"The line runs thence in a south-westerly direction, so as to pass midway between the Island of Attou and Copper Island of the Kormansborski Couplet or Group of the North Pacific Ocean, to meridian of 173° west longitude. All the waters within that boundary to the western end of the Aleutian Archipelago and chain of islands are considered as comprised within the waters of Alaska Territory.

"All the penalties prescribed by law against the killing of fur-bearing animals would therefore attach against any violation of law within the limits before described.

"D. A. D'Ancona,

"Very respectfully,

(Signed) "H. F. FRENCH, Acting Secretary.

717, O'Farrell Street, San Francisco, California."

All parties are warned that the rule laid down by the Secretary of the Treasury of the United States in 1881, and reaffirmed in the note of Secretary Manning to the Collector of this port of date of the 16th March, 1886, will be rigidly enforced against all who attempt to poach upon the Federal preserve by killing seals within its limits, there laid down and defined, in the waters of Alaska. From that preserve the Federal Government derives revenue, and its lessee is entitled to the protection proffered by the note of the Secretary referred to.

* ? 1867.

Dear Sir,

Inclosure 8 in No. 3.

Mr. F. Lubbe to Mr. E. Crow-Baker, M.P.

Victoria, British Colombia, March 30, 1886.

THE inclosed clipping explains itself. The question I wish to ask you is, Can the United States claim the easterly half of Behring's Sea as American waters ?

The British schooners "Mary Ellen," "Favourite," " Onward," "Grace," "Dolphin, "Anna Beck," "Wm. P. Sayward," "Mary Taylor," "Carolina," "Alfred Adams," and "Active" intend to follow the seals into Behring's Sea at the end of the seal-fishing season off the British Columbia coast, say the 20th May next. These schooners would spear and shoot seals upon the high seas, and have no occasion to go within 30 miles of any land. You are aware that the British schooner "Mary Ellen" has already made two successful voyages to the Behring's Sea; the "Favourite" made also a successful voyage during 1885. Both these vessels were spoken by an American Revenue cruizer in Behring's Sea last summer, but not in any way molested.

Would it not be well for you to obtain from the Minister of Marine in Ottawa a written opinion, and, further, would you be good enough to communicate to me the substance of such opinion by wire?

Please act promptly, and oblige yours, &c.

Warning to Seal Hunters.

The Treasury Department, having become informed that certain parties are fitting out expeditions for the purpose of killing fur-seals and other fur-bearing animals in Alaska waters, gives the following information to parties concerned, as to how far the jurisdiction of the United States extends in the matter.

The Treaty with Russia of the 30th March, 1870, by which the Territory of Alaska was ceded to the United States, defines the boundary of the territory so ceded. It will be seen therefrom that the limit of the cession extends from a line starting from the Arctic Ocean and running through Behring's Straits to the north of St. Lawrence Islands. The line runs thence in a south-westerly direction, so as to pass midway between the Island of Attou and Cooper Island, of the Kromanboski couplet or group, in the North Pacific Ocean, to meridian 173° west longitude. All the waters within that boundary to the western end of the Aleutian Archipelago and chain of islands are considered as comprised within the waters of Alaska Territory.

All the penalties prescribed by law against the killing of fur-bearing animals would therefore attach against any violation of law within the limits described.

Mr. A. Crow-Baker to Mr. F. Lubbe.

(Telegraphic.)
Your matter progressing expeditiously as possible.
Minister Justice. Will advise you when decision is reached.

(Telegraphic.)

Mr. E. C. Rowbotham to Mr. F. Lubbe.

April 20.

Referred by Council to

May 30.

Minister Justice gives opinion in your favour and against American contention. He has recommended attention of Imperial Government being called to the subject in order that views of Canadian Government be then sustained and enforced.

Inclosure 9 in No. 3.
Declarations.

I, WILLIAM MUNSIE, of Victoria, grocer, do solemnly and sincerely declare that I am sole owner of the schooner "Carolina," and she has a Canadian register, having been registered at the port of Victoria. The vessel and her outfit at the time she left for

Behring's Sea was 7,000 dollars, and I make this solemn declaration, conscientiously believing the same to be true, by virtue of the Act passed in the 37th year of Her Majesty's reign, intituled "An Act for the Suppression of Voluntary and Extra-judicial Oaths."

(Signed)

Taken and declared before me at Victoria, this 23rd August, 1886.
(Signed) M. W. TYRWHITT DRAKE. J.P.

WM. MUNSIE.

solemnly and sincerely "Carolina," and I was During the whole time

I, Thomas McLaedy, of Victoria, British Columbia, cook, do declare that I was engaged as cook on board the British schooner on board when the United States' steamer "Corwin" seized her. the said schooner was sealing she never sighted land once. After she was seized the "Corwin" took her in tow about 6 oclock in the evening, and about 3 o'clock in the morning the English schooner "Onward," of the tonnage 35-20 tons, was also seized and taken in tow to Ounalaska. Her crew were left on board and not removed to San Francisco; she had seal-skins on board. And I make this solemn declaration, conscientiously believing the same to be true, by virtue of the Act passed in the 37th year of Her Majesty's reign, intituled "An Act for the Suppression of Voluntary and Extra-judicial Oaths."

Taken and declared before me this 23rd August, 1886, at Victoria, British Columbia. (Signed) M. W. TYRWHITT DRAKE, J.P.

I, Edward Shields, of Sooke District, Vancouver Island, a hunter, engaged on board the British schooner "Carolina," of 31.90 registered tonnage, do solemnly and sincerely declare that I left Victoria on board the aforesaid schooner on the 20th May, 1886, bound on a voyage to Behring's Sea for the purpose of sealing. The schooner was fitted out for this purpose. She had eleven hands on board, including the master, by name James Ogilvie. We sailed to Behring's Sea and commenced sealing on the 15th June, and at that time we were about 300 miles from land, and we continued cruizing about for seals, and up to the time the United States' vessel "Corwin" seized us we had 686 seals. During the whole time we were cruizing about we were in the open sea, out of sight of any land. The seals we obtained were chiefly females. At the time the "Corwin" seized us on the 1st August we were out of sight of land and in latitude 55° 50′ north, longitude 168° 53′ west, as I was informed and verily believe. There were other vessels, both American and English, cruizing about in the same neighbourhood. We never killed a seal in the neighbourhood of the Aleutian Islands. I was away in the boats when the "Corwin " seized the vessel, and when I came back I found the "Carolina " in tow of the "Corwin." The captain of the "Corwin," Abbey by name, took away all the fire-arms, consisting of rifles and shot-guns, ten in all, and I was taken to Ounalaska, and from there I was taken to San Francisco by the steamer "St. Paul," and there turned adrift. The "Carolina" was left at Ounalaska with the seals and outfit, and I make this solemn declaration, conscientiously believing the same to be true, by virtue of the Act passed in the 37th year of Her Majesty's reign, intituled "An Act for the Suppression of Voluntary and Extra-judicial Oaths."

(Signed)

EDWARD SHIELDS.

Taken and declared before me at Victoria, this 23rd day of August, 1836, in due form of law.

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1, John Dallas, of Victoria, British Columbia, seaman, do solemnly and sincerely declare that I was engaged about the end of May 1886 as a seaman on board the schooner "Thornton," of 22.30 registered tonnage, registered in the Dominion of Canada as a British vessel. I was engaged sealing on the west coast of Vancouver Island, and when the seals got scarce the Thornton" left [? Clayoquot] Vancouver Island, for Behring's Sea about beginning of June, and three days after passing Unmark Pass we killed our first seal, being then about 250 miles from land. We were engaged sealing in the open sea until the 1st August. We had a little over 400 skins on board, when the United States' steamer "Corwin" seized our vessel and took her to Ounalaska. They were about twenty-eight hours engaged in towing us to Ounalaska. The master of the "Corwin " removed all our guns and ammunition--ten guns in all. There were fourteen hands on board the "Thornton" altogether, including two Indians, nine white men, and a Chinese jook--were sent to San Francisco and there discharged. Two white men and two Indians were left on board the schooner at Ounalaska. We were 5 or 6 miles from the "Carolina" at the time we were seized. I saw no other vessels in sight at the time. We were never in sight of land during the whole time we were sealing. And I make this declaration, conscientiously believing the same to be true, by virtue of the Act passed in the 37th year of Her Majesty's reign, intituled "An Act for the Suppression of Voluntary and Extra-judicial Oaths."

(Signed)

JOHN DALLAS, his x mark.

Taken and declared before me at Victoria, this 23rd day of August, 1886, the same having been first read over to him.

Sir L. West to the Earl of Iddesleigh.-(Received October 4.)

My Lord, Washington, September 21, 1886. THE reported seizure of British vessels by American cruizers in waters over which it appears the United States' Government claim jurisdiction as adjacent to the Territory of Alaska has given rise to much comment in the newspapers touching the interests of a powerful commercial Company which may be affected by the international questions arising therefrom; and in this connection I have the honour to inclose to your Lordship herewith a précis of the history of the origin of this Company, as well as of what has been written on the subject.

Chapter 3 of the Revised Statutes of the United States (p. 342, sections 1954 to 1976 inclusive) contains the "provisions relating to the unorganized Territory of Alaska;" and section 1954 extends "the laws of the United States to and over all the mainland, islands, and waters of the territory " ceded by Russia to the United States by the Treaty

of 1867.

In addition the lease of the Government Seal Islands the Alaska Company holds as well leases of certain islands from the Russian Government, so that in fact it may be said to monopolize the seal fur trade in these waters.

History of the Origin of the Alaska Commercial Company.

THE transfer of the Territory of Alaska to the United States' Government, in compliance with the terms of the Treaty of Purchase between the two Governments, included the transfer of all the Russian Government property, such as public buildings at Sitka, Governor's house, Custom-house, hospital, and wharves, &c. There were, however, certain buildings reserved as the property of the Russian Fur Company, and as General Rousseau, the United States' Commissioner, could not, in his official capacity, take any active or open part in its disposal, Prince Matsukoff, the Russian Governor, concluded a bargain with Mr. Hutchinson, who accompained General Rousseau as his Private Secretary. This bargain included all the property of the Russian Fur Company and

seal-skins stored. It was made on private terms and to the exclusion of the stockholders of the Russian Company and the American officers stationed at Sitka, who claimed that they were entitled to a share of the spoils.

By virtue of this bargain with Prince Matsukoff, who was Governor of the Company, Mr. Hutchinson proposed to take possession of the fur trade of Alaska and the Seal Islands, and left for Victoria (British Columbia) and San Francisco to make the necessary arrangements. At the former place he met with a Mr. Kohl, owner of a British steamer called the "Fidelitor," with whom he entered into partnership, and the firm still exists under the name of Hutchinson, Cole, and Co. The steamer obtained an American register under the plea that she was a Russian vessel at the time of the transfer of the territory to the United States, and was thus enabled to carry on the coasting trade. Preparations were made in 1868 for working the fur trade of the newly-acquired possession, and especially for the occupation of the Pribylov Islands, to which, by virtue of the arrangements with Prince Matsukoff, the new Company considered they had an exclusive right. Upon their arrival there, however, they found them occupied by experienced sealers from New London and Stonington (Connecticut) under one Captain Morgan. A fight for possession seemed imminent, but a division of the season's catch was finally agreed upon. While the two parties were thus amicably at work, M. Pflugel, Russian Vice-Consul at Honolulu, arrived at the head of an expedition, believing that he should find the islands unoccupied, but was eventually forced to retire before the combined forces of Captain Morgan and Mr. Hutchinson. It now became obvious that the Government must take means to preserve these valuable seal rookeries, and in the winter of 1868 an Act of Congress was passed, the conditions for permission to take seals being, however, reserved for future Congressional action. The coalition between Hutchinson and Morgan still continued, and finally led to the organization of the powerful and wealthy Alaska Commercial Company. Since 1870 this Company has controlled the entire fur trade of Alaska, and by virtue of its alliances with the lessees of the Russian Seal Islands, controls the valuable fur-seal trade of the world. With strong political influence in the Congress of 1876, it obtained a lease of the Pribylov Islands for twenty years at a rental of 55,000 dollars a-year, and a royalty of 2 dol. 62 c. per skin, the take to be limited to 100,000 skins a-year. It is calculated that the Company pays annually 315,000 dollars to the United States' Treasury, which, after paying all the expenses of the Territory, yields more than 4 per cent. per annum on the purchase-money paid to Russia for Alaska.

To preserve this revenue through future years the protection of the seals from illegal capture or disturbance on their annual visits to the islands has been deemed an absolute necessity, and hence the prohibition against approaching or landing on the islands and the vigilance of the United States' cruizers in the Behring's Sea. It is not, however, generally understood that the Alaska Company controls the fur trade of all the mainland and islands of Alaska lying west of the 141st meridian of west longitude, and that its operations over this vast extent of territory and coast are entirely distinct from, and have no connection with, its exclusive control of the Seal Islands, which it holds by virtue of its lease from the United States' Government,

Outside of these islands it holds no exclusive rights or franchise from the Government, nor does it pay any rent or royalty to the Government on the territory it occupies or the furs it procures from the natives. It has no rights over any other citizen or company of citizens who may desire to trade in competition with it, and yet it has been aided by the Revenue Marine in suppressing competition from rival traders, for it appears that, under instructions from the Treasury Department, the Revenue cruizers board and examine every trading-vessel sighted in the Behring's Sea or on the north-west coast of Alaska, except the vessels of the Company. If a pretext can be found, an officer is placed on board with instructions to take the vessel to Ounalaska and discharge her cargo. She is then sent to San Francisco, where the United States' Marshal finds that there is no cause for condemnation, and, as the object of breaking up her voyage has been gained, she is released and restored to her owners. The vessels subjected to this treatment come from British Columbia and Japan, and are, it is said, fitted out for contraband trade.

Washington, September 1886.