28 ALASKA INDUSTKIES. 



Skins taken during the present season, 1871, up to July SI. 

 On St. Paul : 



May for native food 418 



June 20, 042 



July 24 708 



Cut skins rejected 335 



Total 45,503 



St. George Island, as per report of Special Agent Samuel Falconer up to July 31 . 17, 000 



Total on both islands up to July 31, 1871 62, 503 



Besides the above, 1 per cent should be allowed for loss by heating 

 while driving and otherwise. This will cover all seals killed at the 

 islands. During the interval between July 1, the date of the act author- 

 izing the lease and its promulgation at the islands October 10, there was 

 killed on St. Paul 6,449 and on St. George 4,987 animals for food for 

 the natives. These were mostly 1 -year-old seals, and their skins were 

 not of prime value. Of these, there were reserved, in accordance with 

 the plans stated in my report of July 14, 1870, and salted on Govern- 

 ment account on St. Paul 2,040 and on St. George 1,500 skins. These 

 are the same mentioned in my report of May 19, 1871, the necessary 

 order for the shipment of which miscarried by mail, and 1 only received 

 the certified coi)y at the date of my leaving the island, when no oppor- 

 tunity occurred for shipping them, the steamer being loaded to her 

 fullest capacity with skins belonging to her owners. The remainder of 

 these skins are in the hands of the Alaska Commercial Company, and, not 

 being worth the tax, are left on the islands. Skins damaged by cutting 

 have always sold at half price in market, and the same rates have been 

 paid for them at the salt houses. Since the leasing they, not being con- 

 sidered worth the tax, have been rejected by the company. This has 

 resulted in no loss, as will be seen by reference to the foregoing state- 

 ment. Formerly the average of cut skins equaled 6 per cent of the 

 whole. Since their rejection the average has decreased to three-fourths 

 of 1 per cent. 



About 6,000 gallons of oil have been rendered, at a cost of 25 cents 

 per gallon by allowing the natives cents per gallon for skinning and 

 carrying the blubber to the place of rendering — a compensation 

 scarcely in proportion to the labor, as the saving of the oil doubles the 

 skinning and carrying. The cost of rendering (25 cents) added to the 

 tax (55 cents) makes a total of 80 cents per gallon at the island, while 

 the market value is less than 50 cents. It must be obvious no com- 

 pany can afford to incur the expense necessary for carrying on a busi- 

 ness involving such positive loss. In my opinion, no great revenue can 

 be derived from taxing the oil, and as the natives are the parties most 

 to be benefited by its saving by us, it affording an additional industry 

 to their island, I would suggest that in place of a revenue tax there be 

 established a regulation fixing a stipulated price, say 20 cents per gal- 

 lon, to be paid by the company to the natives for all the oil shipped 

 from the island. This would leave a margin sufficient to pay the cost 

 of rendering and shipping. In this way about 50,000 gallons of oil 

 may be obtained annually above or over what blubber is required by 

 the natives for fuel. The proceeds of this would enable them to pur- 

 chase wood or coal to warm their houses in winter, the blubber being 

 entirely unfitted for that purpose, and is now burned in an outhouse 

 for cooking only, the 60 cords of wood now annually distributed among 

 them being insufficient for baking purposes. 



