ORAL ARGUMENT OF HON. EDWARD J. PHELPS. 219 



He cites those figures for a different purpose — a purpose for which I 

 referred to some of them yesterday — as shewing the extreme improba- 

 bility that Eussia would have thrown ojjen to the world that monopoly 

 without being- invited. That is down to 1820. But 47 years more 

 elapsed before the country was purchased by the Government of the 

 United States? From 1821 to 1841 the gross revenue was 01 millions 

 of roubles, of which the net profits were 8,500,000 roubles. From 1842 

 to 1802, five years before the cession, the gross revenue was 75,770,000 

 roubles, and the net profits were 10,210,000 roubles. It thus appears 

 that the profits were not only enormous, the dividends enormous, but 

 that it appreciated all the way through down to a time within five years 

 of the purchase; under the first lease the stockholders made 30 per cent 

 per annum profit, under the second lease 55 per cent per annum; under 

 the third lease 45 per cent per annum. I was incorrect in saying it 

 ajjpreciated all the time. 



The President. — Was that gross profit, or net? 



Mr. Phelps. — iS"et profit. 



The President. — After having paid the Government dues? 



Mr. Phelps, — Yes. That is the business we purchased; and as I 

 said when you contrast it with everything else we have ever done there 

 since, with all the resources and ingenuity and enterprise of American 

 people, there is nothing at all, 



1 have said (and this is all I desire to call attention to; I cannot 

 dwell too long upon this), the way that it came to pass that the Ameri- 

 can Government bought this, was by an enterprise set on foot by certain 

 Americans to have the Government acquire it for the sake of getting 

 an interest in this important business. Perhaps, Sir, as the last words 

 before the adjournment, and as I shall not read much, 1 may read this 

 from the 1st volume of the Appendix to the British case, page 49. 



Shortly afterwards 



speaking of a memorial to the President which was referred to the 

 Secretary of State, by whom it was communicated to M, de Stoeckl, 

 with remarks on the subject: 



Shortly afterwards another iufluence was felt. Mr. Cole, who had been recently 

 elected to the Senate from California, acting in behalf of certain persons in that 

 State, sought to obtain from the Russian Government a license or franchise to gather 

 furs in a portion of its American possessions. 



Mr. Cole evidently was not aware that he had taken aU these furs 

 without any license. 



The Charter of the Russian-American Company was about to expire. This Com- 

 pany had already underlet to the Hudson Bay Company all its franrhise on the 

 mainland between 54° 40' and Mount-St-PUias; and now it was proposed that an 

 American Company, holding direct from the Russian Government, should be substi- 

 tuted for the latter. The mighty Hudson i5ay Company, with its head-quarters iu 

 London, was to give way to an American Company, with its head quarters in Califor- 

 nia. Among the letters on this subject addressed to i\Ir. Cole, and now before me, 

 is one dated at San-Francisco, the 10th April, 1866, in which this scheme is developed 

 as follows. 



There is at the present time a good chance to organize a Fur Trading Company to 

 trade between ihe United States and the Russian possessions in America, and as the 

 Charter formerly granted to the Hudson Bay Company has expired this would bo the 

 opportune moment to start in. 



I should think that by a little management this Charter could be obtained from 

 the Russian Government for ourselves, as I do not think they are very willing to 

 renew the Charter of the Hudson Bay Company, and I think they would give the 

 preference to an American Company, especially if the Company should pay to the 

 Russian Government 5 per cent, on the gross proceeds of their transactions, and also 



