108 ALASKA INDUSTRIES. 



The following table will show the number of skins shipped from the 

 islands belonging to the quota of this year, certificates of which ship- 

 ments have already been transmitted to the Department : 



From St. Paul Island : 



Shipped to Unalaska for transshipment, thence liy schooner to San 

 Francisco — 



Junes 2,738 



July 24 11.320 



■ 14, 058 



Shipped direct for San Francisco — 



August 17 67,942 



From St. George Island : 



Shipped direct for San Francisco 12, 058 



Remaining on St. George Island 5, 942 



Full quota taken by the company in the year 1878 100, 000 



I would state that the skins remaining on St. George Island will be 

 shipped by one of the company's schooners later in the fall. As said 

 skins were officially counted -by Assistant Treasury Agent Moulton 

 before his transfer to St. Paul, I have given to the company permission 

 in writing for their shipment, and have directed Mr. Moulton to certify 

 to the same, as the schooner which takes the skins will touch at St. Paul. 



The Alaska Commercial Company has produced on St. Paul Island 

 during the summer 15,000 gallons of seal oil. Tlie labor of taking the 

 blubber from the carcasses and transporting it to the oil works was 

 performed by white employees of the company, assisted by ITnalaska 

 natives, brought there for the purpose on the company's steamer in the 

 spring. The general agent of the company explains that this was neces- 

 sary, for the reason that there is no available labor on the island for this 

 purpose. 



Kelating to this matter, I found on file in this office a letter from the 

 Secretary of the Treasury, dated March 13, 1874, addressed to Treasury 

 Agent Bryant, then in charge of the seal islands, in which it is ordered 

 that the Alaska Commercial Company " shall pay, as a compensation to 

 the natives of the islands for their time and labor in skinning and 

 delivering the blubber at the place of rendering the oil, 10 cents for 

 each gallon of oil taken," and "that such fee or tax shall be collected 

 under the supervision of the Treasury agent, and be applied by him 

 to the general welfare of the natives of the islands performing such 

 services." 



I beg to state that the nature of this order was unknown to me until 

 I found it among the files in this office, which was subsequent to the 

 commencement of the business of oil making by the com})any, and as I 

 discovered upon investigation that all the men and boys on the island 

 who could be relied upon to properly perform the work of taking the 

 blubber from the seals were actively engaged in the sealing, and having 

 received no instructions from tiie Department relative to the matter, I 

 permitted the business to progress during the season, the Uhalaska 

 men performing the labor. 



The shipment of the 15,000 gallons of oil was allowed with the under- 

 standing that the company shall hereafter pay, for the benefit of the 

 natives of theishuid, a tax of 10 cents per gallon on said oil, providing 

 it shall be decided by the Department that the tax is, under the cir- 

 cumstances, properly collectible. I would respectfully state that I did 

 not feel authorized myself to collect said tax, for the reason that the 

 order of the Department reipiires that it shall be collected and expended 

 for the benefit of such natives of the island as perform the services. 



