68 REPORT OF ALASKA INVESTIGATIONS. 



such action, and there would thus be no further necessity for a tax on this article. But as fertilizer will 

 no doubt be made from the offal of canneries, there might be some question as to the advisability of a 

 small tax on this article. The margin of profit must be small in gathering offal from the canneries, and 

 therefore I would not advocate any tax at present on the commodities manufactured from this material. 

 The new scale of taxes suggested for whale products is proper and just. 



After mature consideration of the question of a tax on cod and halibut, I have come to the conclusion 

 that such a tax is unwise, for the reason that it would handicap American fishermen in competition with 

 Canadian or other foreign vessels. It must be remembered that a large proportion of the cod and halibut 

 taken from the fishery banks off the coast of Alaska are caught on the high seas beyond the 3-mile limit 



COLLECTION AND USE OF TAXES. 



The present system of collecting the tax on mild-cured salmon is very poor, and many tierces reach 

 the States without paying any tax. This is due to evasive tactics upon the part of some of those engaged 

 in the industry. At the present time the troller who mild-cures on his power boat brings several tierces 

 to town and disposes of them to a mild-curing establishment. He may leave soon and neglect to pay the 

 tax. The man who buys them says he did not cure or preserve this particular lot of salmon and therefore 

 is not responsible for payment of the tax. It is easy to remedy this situation by holding the shippers 

 responsible for all tierces they handle, and the customs officers should not permit shipment until all taxes 

 have been paid. In this connection, it is suggested that some distinctive mark be placed on every tierce 

 as soon as the tax is collected. It is fair to assume that almost half of the tierces of salmon heretofore 

 packed in Alaska have come out tax free. 



In order to insure the collection of all taxes on various fisheries products now exported from Alaska, 

 it might be well for the collector of customs to refuse the issuance of clearance manifests until advised by 

 the clerk of the court or other official charged with the collection of such taxes that the prescribed fees 

 have been paid. 



One other thing in connection with the taxes collected from the fishing industry is that it seems unfair 

 and unbusinesslike that no part of this money is utilized for the protection and propagation of salmon 

 or other food fishes. I would earnestly recommend that 30 per cent of all taxes collected in the future 

 on the fishing industry be applied to the protection and extension of the fishing interests of Alaska. 



LICENSE TAX ON GEAR. 



That all fishing gear in Alaska should have a license tax levied on it is just and essential. The following 

 scale is suggested: On traps, $100 per annum; purse seines, $75 per annum; haul seines, $50 per annum; 

 gill nets in Bristol Bay, $3 per annum; in all other localities, $2 per annum. It is further urgently recom- 

 mended that every piece of apparatus on which the license tax has been paid shall be branded, showing 

 the license number. It is further recommended that 30 per cent of the income from this source of taxation 

 shall revert to the propagation of fish and the protection of the fishing industry. 



DISTRICTS FOR PATROL SYSTEM. 



A uniform and well-established system of patrol throughout Alaska is one of the most essential matters 

 pertaining to the maintenance of the fisheries industries and the enforcement of the laws pertaining to 

 salmon and other fish. Adequate protection along similar lines should also be afforded the fur-bearing 

 animals. After much thought and consideration, taking into account the enormous territory that has 

 to be covered in order to patrol approximately 600,000 square miles, I am convinced that the only feasible 

 way of doing this work properly and systematically is to divide Alaska into five districts, as follows: 



District No. i. From Dixon Entrance to Yakutat, with headquarters at Wrangell. This district 

 requires the greatest amount of vigilance throughout the year, and should have a chief warden at a salary 

 of $2,000, an assistant chief warden at $1,500, and eight wardens at $1,000 each. 



District No. 2. West from Yakutat to and including Cook Inlet, and north to 62 north latitude, 

 with headquarters at Cordova. This territory includes the fishing in Prince William Sound, Copper River 

 delta, and the great fishing district of Cook Inlet. There should be a chief warden at $2,000 and four 

 wardens at $1,000 each. 



